Overview of Key ESG Reporting Standards
Transparency in corporate activities is increasingly associated with ESG reporting. In previous publications, we looked at the basic concepts of ESG, recommendations for companies planning to implement ESG, and the specifics of ESG regulation in the Ukrainian legal field and the EU. This publication offers an overview of the most widely recognised and relevant standards for disclosing ESG factors in a company’s activities, namely the ESRS, GRI, SASB and IFRS S1/S2 standards.
Key ESG reporting standards: a brief overview
1. ESRS (European Sustainability Reporting Standards) are adopted by the Delegated Regulation of the European Commission and mandatory for companies which are in the framework of the Corporate Sustainability Reporting Directive (CSRD).
These standards define the sustainability-related information that companies shall disclose in their reports, covering environmental, social, and governance (ESG) issues. They specify the required disclosures regarding companies’ material impacts, risks, and opportunities in these areas.
The ESRS contains two cross-cutting standards (General Requirements and General Disclosures) that apply to all sustainability issues, and ten topical standards in the following areas:
E: Climate Change, Pollution, Water and Marine Resources, Biodiversity and Ecosystems,
S: Resource Use and Circular Economy, Own Workforce, Workers in the Value Chain, Affected Communities, Consumers and End Users, and
G: Business Conduct.
The topical standards are common to companies in all sectors.
The ESRS requires detailed disclosures based on the principle of double materiality — addressing both the company’s impact on ESG matters and the impact of ESG factors on the company.
Currently, the CSRD provides for the development of sector-specific standards; however, these may be abolished as part of the EU’s efforts to simplify corporate sustainability reporting requirements (the simplification initiative package – the Omnibus). As part of this process, a simplified version of the ESRS is expected in November 2025.
Astarta-Kyiv announces that its ESG report for 2024 complies with the requirements of EU legislation.
2. GRI (Global Reporting Initiative) Standards are voluntary international standards. The GRI is an independent non-profit organisation that develops and promotes comprehensive and practical sustainability reporting standards, helping companies understand the full scope of their impacts and take appropriate action.
GRI Standards are a modular system of the following interrelated standards:
Universal Standards:
GRI 1: Foundation – defines the purpose and key principles of reporting;
GRI 2: General Disclosures – covers information on the reporting company (its structure, activities, employees, management, etc.);
GRI 3: Material Topics – outlines the process for identifying issues of greatest significance to the company, including the application of relevant sector standards;
Sector Standards are designed to improve the quality, completeness and consistency of reporting by identifying material topics and necessary disclosures for specific industries. They should be applied if developed for the relevant sector. Standards are expected to be developed for 40 industries, starting with the oil and gas sector, for agriculture, aquaculture, fishing, and mining;
and Topic Standards: contain disclosures on specific topics (e.g., waste, occupational health and safety, taxation) and are used by companies to report on topics they have identified as material.
GRI encourages complete reporting under its Standards for comprehensive disclosure of material impacts but permits partial use where full compliance is not feasible or for specific purposes. For more detailed information on the application of GRI Standards, please follow the link.
A mandatory step in the reporting process is to notify GRI on the use of their Standards.
In 2024, 83% of respondents to the World Business Council for Sustainable Development (WBCSD) said they reported by GRI Standards. In Ukraine, Elementum Energy, Metinvest, Nova Poshta, and Vodafone Ukraine report according to the GRI standards.
3. SASB (Sustainability Accounting Standards Board) Standards are designed to identify sustainability factors that are most likely to affect the financial condition or operating results of companies in a particular industry. They are voluntary.
SASB Standards identify the most important sustainability issues for investor decision-making in 77 industries.
Key components of the SASB Standards:
Disclosure topics – identify industry risks and opportunities in the field of sustainable development; each industry standard covers approximately six topics;
Metrics – provide standardised quantitative and qualitative indicators for assessing a company’s performance on each topic; on average, 13 metrics per industry;
Technical protocols – contain detailed guidelines on terminology, scope, implementation and presentation of each metric to ensure comparability between companies;
Activity metrics – measure the scale of specific activities and operations of the company and facilitate comparison between companies.
Since 2022, the International Sustainability Standards Board (ISSB) of the IFRS Foundation has been responsible for maintaining, reviewing and developing SASB Standards. The ISSB encourages reporting companies and investors to continue using SASB Standards, as they perform an important function of disclosing industry-specific information in addition to disclosures under IFRS S1 General Requirements for Sustainability-related Financial Disclosures and IFRS S2 Climate-related Disclosures. For more information on the interoperability between the standards, please follow the link. The SASB Standards can also be used independently.
A list of companies and jurisdictions that apply the SASB Standards is available at the link.
4. ISSB (International Sustainability Standards Board) Standards, namely IFRS S1 and S2, are voluntary and designed to provide a global framework for sustainability disclosure for capital markets. Focusing exclusively on capital markets means that ISSB Standards require only information that is material, proportionate and useful for investor decision-making. IFRS S1 requires companies to disclose information on the sustainability risks and opportunities they face in the short, medium and long term. IFRS S2 sets out specific requirements for climate-related disclosures and is intended to be used in conjunction with IFRS S1. Starting with climate, companies can gradually implement sustainability disclosures.
Under Ukrainian law, certain companies prepare financial statements following international standards (IFRS). For these companies, it may be appropriate to apply IFRS S1 and S2 for sustainability disclosures, as the ISSB Standards are designed to be presented alongside financial statements as part of a single reporting package.
The jurisdictions that use these Standards are listed at the link.
IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information – aims to ensure disclosure of information on sustainable development risks and opportunities that is useful to users of financial reports when making decisions on providing resources to the company. The company hall disclose all material sustainability-related risks and opportunities that are likely to affect their cash flows, access to finance or the cost of capital in the short, medium or long term.
Key disclosure requirements:
governance: processes and procedures the company uses to monitor, manage and oversee sustainability-related risks and opportunities;
strategy: company’s approach for managing sustainability-related risks and opportunities;
assessment: processes and criteria the company uses to identify, assess, prioritise and monitor sustainability-related risks and opportunities; and
performance: company’s results in relation to sustainability-related risks and opportunities, including progress towards any targets the entity has set or is required to meet by law.
IFRS S2 Climate-related Disclosures
IFRS S2 has the same purpose and disclosure requirements as IFRS S1, but relates to a company’s climate-related risks and opportunities. Thus, IFRS S2 applies to:
climate-related risks to which the company is exposed, which are:
climate-related physical risks; and
climate-related transition risks (risks arising from the transition to a low-carbon economy); and
climate-related opportunities available to the company.
External audit of ESG reporting
To enhance confidence in ESG reporting, companies engage independent auditors to verify the information disclosed. This external assurance helps confirm that the report aligns with established standards and increases its credibility, thereby strengthening the trust of key stakeholders — including investors, partners, and other interested parties.
According to 2024 data from the World Business Council for Sustainable Development, 90% of ESG reports undergo some form of external assurance on key sustainability indicators or the reporting process itself. Of these, provided assurance at a reasonable level, and 80% at a limited level.
How Ukraine is implementing sustainable development standards
As part of the implementation of Ukraine’s Strategy for the introduction of sustainable development reporting by enterprises, two key strategic objectives have been identified:
Introduction of the preparation, submission, and publication of sustainability reports by enterprises in accordance with EU standards (ESRS); and
Implementation of audit procedures for such reports, along with the establishment of an effective quality control mechanism for audit services.
To achieve these objectives, the Ministry of Finance of Ukraine has developed two draft laws on the introduction of sustainability reporting and its audit. One of these draft laws has already been registered in Parliament. These initiatives are aimed at aligning Ukrainian legislation with European requirements.
Conclusions
ESG reporting is a tool for building trust and supporting stakeholder decision-making regarding a company’s operations and partnerships. To achieve an optimal balance between the resources invested in reporting and the value it delivers, companies should adopt a reporting approach that reflects regulatory requirements, the needs and expectations of key users of ESG reports, and industry-specific factors.
GRI Standards are designed for a broad range of stakeholders and are well-suited for companies aiming to build long-term stakeholder trust.
IFRS S1/S2 and SASB Standards primarily target investors, capital markets, and financially relevant ESG information. These frameworks are particularly relevant for companies entering international capital markets or seeking financing from international financial institutions.
ESRS are mandatory for companies subject to the CSRD and require detailed, structured disclosures. Ukrainian companies operating in EU markets or participating in the supply chains of large European firms are actively preparing to adopt ESRS reporting.
If you would like to discuss the issues raised in this paper in more detail, please contact the SK team.
Information contained in this legal alert is for general informational purposes only, does not constitute legal or other professional advice and should not be relied upon as a substitute for specific professional advice adapted to the specific circumstances.