The World Economic Forum's (WEF) ESG initiative ‘Measuring Stakeholder Capitalism’ was launched in August 2019 and allows companies to measure and communicate their ESG-related risks and opportunities to stakeholders.
Scope & Adoption
The WEF revolves around four themes: People, Planet, Prosperity and Principles of Governance. It has 21 core metrics and 34 expanded metrics which were published in September of 2020. The core metrics are considered as critically important metrics and disclosures; they are primarily quantitative and many companies will find they are already reporting such metrics. The expanded metrics tend to be less well established and are considered to be more advanced in communicating sustainable value creation.
Why it Matters
The WEF framework aims to bring greater comparability and consistency to the reporting of ESG metrics and disclosures. It assists organisations to address ESG challenges like climate change, social equity, and corporate governance. Entities can enhance their transparency and informed decision-making through using WEF guidelines due to its widespread adoption, comprehensive scope, and compatibility with other ESG frameworks and standards. Additionally, the IFRS Sustainability Standards built off of WEF as WEF was part of the Technical Readiness Working Group (TRWG).
Scoring & Reporting
The WEF framework doesn't employ a direct scoring system but encourages companies to integrate ESG considerations into their financial reports. This approach provides investors with essential insights into the financial impacts of ESG factors. Companies can incorporate the WEF's guidelines into their existing reporting mechanisms, ensuring alignment with the framework's principles.
Alignment with Other Frameworks
The WEF ESG framework aligns with other ESG reporting standards, such as the Task Force on Climate-related Financial Disclosures (TCFD) and the Global Reporting Initiative (GRI). WEF’s ESG framework was built upon TCFD and GRI and therefore helps to streamline ESG reporting and enhance stakeholders' understanding of a company's ESG performance.
WEF in Nossa Data
Nossa Data clients have access to WEF disclosure templates and can produce and download a WEF Index to be used in their Annual Report or published on their website. In addition, clients have in-platform access to simplified guidance on responding to the WEF guidelines.
Start your WEF Journey with Nossa Data