What is the difference between ESG and sustainability reporting?
May 25, 2022
|By Eka Marketing
While ESG and sustainability are terms often used interchangeably, there are some noteworthy differences. Let us look at some key differences
| Sustainability | ESG |
| Focuses on the relationship between an enterprise and the environment | Focuses on corporate identity, stakeholders, leadership, and the employees |
| Set by standard groups such as GHG Protocol and are more scientific-oriented and standardized | Based on standards that are set up by reporting and investment organizations such as PRI, and MSCI |
| A framework to make internal capital investments such as energy-efficient measures, switching to a cleaner energy source, and more | An investment framework that allows external investors to evaluate a company’s performance and risk management procedure |
| Focuses on environmental impact | Focuses on risk and materiality profile |