ESG Reporting
ESG reporting is the disclosure of an organization's performance across environmental (E), social (S), and governance (G) dimensions. It encompasses GHG emissions, water and waste management, labor practices, diversity, board structure, ethics, and risk management — providing stakeholders with a holistic view of sustainability performance.
ESG reporting has evolved from voluntary, narrative-based sustainability reports to standardized, data-driven disclosures required by regulation. Major frameworks include GRI (Global Reporting Initiative, impact-focused), SASB (industry-specific financial materiality), ISSB (global baseline for investors), and CSRD/ESRS (EU mandatory reporting with double materiality).
The environmental pillar covers GHG emissions (Scope 1, 2, 3), energy consumption, water use, waste management, biodiversity, and circular economy practices. This is where carbon accounting platforms are essential.
The social pillar covers workforce health and safety, diversity and inclusion, human rights, supply chain labor practices, community engagement, and data privacy.
The governance pillar covers board composition and oversight, executive compensation tied to ESG, ethics and anti-corruption, risk management, and shareholder rights.
For most companies, the environmental pillar — particularly climate-related disclosures — requires the most data infrastructure investment. Automating carbon accounting with a platform like Gravity frees sustainability teams to address the qualitative and strategic aspects of ESG reporting: stakeholder engagement, materiality assessment, transition planning, and governance.
Frequently asked questions
What is ESG reporting? +
What frameworks govern ESG reporting? +
Related terms
CSRD (Corporate Sustainability Reporting Directive)
The Corporate Sustainability Reporting Directive (CSRD) is the European Union's mandatory sustainability reporting law. It requires companies operating in the EU above certain thresholds to disclose environmental, social, and governance (ESG) information according to the European Sustainability Reporting Standards (ESRS), with third-party assurance.
CDP (formerly Carbon Disclosure Project)
CDP is a global non-profit organization that operates the world's largest environmental disclosure system. It collects self-reported climate, water, and forest data from thousands of companies, cities, and subnational governments on behalf of investors and purchasers, scoring disclosures from A (leadership) to D– (minimal).
Carbon Accounting
Carbon accounting is the systematic process of measuring, recording, and reporting the greenhouse gas (GHG) emissions produced by an organization, product, or activity. It follows standardized methodologies — most commonly the GHG Protocol — to quantify emissions across Scope 1 (direct), Scope 2 (purchased energy), and Scope 3 (value chain) categories, producing an auditable inventory that underpins disclosure, reduction planning, and regulatory compliance.
Materiality Assessment
A materiality assessment is a structured process for identifying and prioritizing the sustainability topics most relevant to an organization and its stakeholders. Under CSRD, it specifically refers to the double materiality assessment (DMA) that determines which ESRS topics require full disclosure.
SBTi (Science Based Targets initiative)
The Science Based Targets initiative (SBTi) is a partnership between CDP, WRI, the UN Global Compact, and WWF that defines and validates corporate greenhouse gas reduction targets consistent with the Paris Agreement goal of limiting warming to 1.5°C above pre-industrial levels.