Part 3) ESG Frameworks
ESG strategy and transformation needs data and metrics to enable the measurement of progress. In this chapter of the Handbook, FEST is presented as an extension of the EU's ESRS reporting framework.
The Sustainable Development Goals (SDGs) are a universal call to action, adopted by all United Nations Member States in 2015. They consist of 17 interconnected goals designed to address global challenges such as poverty, inequality, climate change, environmental degradation, peace, and justice.
The ESG framework in general has 3 main parts and each part zooms in on many subparts. Below you will find the main topics that are discussed in each main part.
The main purpose of the European Sustainability Reporting Standards (ESRS) framework is an attempt to standardise sustainability reporting. It enables investors, consumers, cso's and other stakeholders to compare the sustainability performance of companies active in the EU. In its current shape it is not suitable for ESG business transformation.
In chapter 3.3 ESRS, the CSRD compliance framework, shows to what extend ESG reporting can help to get an understanding of the importance of sustainable development in business. ESG transformation however goes beyond compliance and reporting.
The Framework for ESG Strategy & Transformation (FEST) which can be used for business transformation has four levels of measurement of itself. But in practice there are a lot of specialists in the market that focus on a particular level of a particular part of the ESG framework.
