An ESG report (also known as a sustainability report) is a document a business publishes periodically on its impacts, policies and performance in the environmental, social and governance areas. The most widely used standards in the world are those of the GRI (Global Reporting Initiative).
Key takeaways
- The GRI Standards comprise the Universal Standards (GRI 1, 2, 3), Sector Standards and Topic Standards (GRI 200, 300, 400).
- A good report is based on a materiality assessment, includes multi-year data and evidence, and covers negative information too.
- Public companies in Vietnam must already disclose environmental and social information under Circular 96/2020/TT-BTC guiding information disclosure on the securities market.
The structure of the GRI Standards
| Group | Content |
|---|---|
| GRI 1: Foundation | Principles and requirements for reporting in accordance with GRI |
| GRI 2: General Disclosures | Organisational details, governance, strategy, policies, stakeholder engagement |
| GRI 3: Material Topics | The process for determining and managing material topics |
| Sector Standards | Topics that are likely to be material for each sector |
| Topic Standards | Economic (200), environmental (300), social (400) |
Eight steps to preparing an ESG report
- Define the scope, reporting period and applicable standards.
- Engage stakeholders.
- Carry out a materiality assessment.
- Define metrics for each material topic.
- Collect data and evidence from departments.
- Write the content: policies, actions, results, targets.
- Internal review and Board approval.
- Publish and consider independent assessment or assurance.
The mistakes that undermine a report
- Lots of images, few figures; no prior-year data for comparison.
- Only highlighting the positives, with nothing on incidents and challenges.
- Metrics without definitions and data sources that cannot be traced.
- Vague claims such as "environmentally friendly" — a sign of greenwashing.
An ESG report is not a marketing document, but an account backed by data.
Frequently asked questions
How does an ESG report differ from an annual report?
An annual report focuses on business and financial results; an ESG report presents impacts and the management of environmental, social and governance issues. Many businesses combine the two in an integrated report.
Do unlisted companies need an ESG report?
It is not required by law, but it is increasingly necessary when dealing with banks, investors and international customers.
How long does it take to prepare a first ESG report?
Usually a few months, depending on how much data is available; the most time-consuming part is collecting and standardising data and evidence.
VietESG — Independent ESG rating organisation. Ratings based on disclosed data, supporting evidence and a public methodology aligned with GRI and the SDGs.
