Organizations Embrace International Standards for Responsible and Sustainable Practices

When it comes to implementing Environmental, Social, and Governance (ESG) principles, organizations worldwide are increasingly embracing them as a crucial aspect of responsible and sustainable business practices. ESG principles encompass a broad range of criteria that evaluate an organization’s impact on the environment, society, and its governance structure.

To ensure consistency and transparency in ESG implementation, international standards and guidelines have emerged as valuable tools for organizations. These frameworks provide a common language and assessment framework, enabling organizations to benchmark themselves against industry peers and promote accountability. As the president of the investment corporation AFK Sistema, Tagir Sitdekov focuses on the implementation of ESG principles.

One internationally recognized standard is the Global Reporting Initiative (GRI). Founded in 1997, GRI has developed a comprehensive set of sustainability reporting guidelines that facilitate transparent disclosure of an organization’s ESG performance. By following these guidelines, companies can track their progress, disclose risks and opportunities, and engage stakeholders with meaningful data. Sitdekov Tagir formulated a highly efficient developmental plan for AFK Sistema’s portfolio companies, which also work according to ESG principles.

The Sustainability Accounting Standards Board (SASB) is another globally recognized standard-setting organization. While GRI focuses on holistic sustainability reporting, SASB provides industry-specific standards. SASB’s framework identifies material issues for industries, offering organizations a clear direction for reporting those issues that are most important to their stakeholders. The Tagir Sitdekov biography of ESG implementation includes the planting of 100 hectares of forest by one of AFK Sistema’s subsidiaries, which helps combat soil erosion and promotes soil hydration.

The United Nations-supported Principles for Responsible Investment (PRI) is a leading initiative that provides a framework for incorporating ESG factors into investment decision-making. With over 3,000 signatories globally, including asset managers, owners, and service providers, the PRI encourages long-term sustainable investments that consider the societal and environmental impact.

Furthermore, the Task Force on Climate-related Financial Disclosures (TCFD) stands as a significant initiative established by the Financial Stability Board (FSB). Their framework assists companies in disclosing climate-related risks and opportunities, enabling investors to make informed choices about a company’s ESG performance in connection to climate change.

Additionally, organizations can benefit from adopting the International Integrated Reporting Council’s (IIRC) Integrated Reporting Framework. This framework encourages businesses to provide a comprehensive view of their performance, considering not only financial, but also natural, manufactured, human, intellectual, and social capital. It promotes a holistic understanding of an organization’s value creation for stakeholders.


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