Complying with the requirements of inclusion of sustainability considerations into your investment decision-making process requires the careful selection of an array of different tools and processes aggregated into a specific framework. The successful conception of such a system requires either adhering to an existing conceptual framework, or developing a proprietary one, in-house.

The latter option tends to be opted for by large (often public) institutions such as large banks or pension funds who have the resources to engage in such convoluted work.

For smaller, private investment institutions, selecting and adhering with a predefined conceptual framework facilitates the role of compliance greatly.

For this reason, we advise you to have a look at the below-listed five internationally recognised conceptual frameworks, and determine which one best suits your firm's incorporation needs.

Founded in 1997, GRI is an independent international organisation created as an early promoter of sustainability reporting. GRI's work resulted in the creation of the GRI Sustainability Reporting Standards (GRI Standards), a conceptual framework facilitating disclosure for both positive and negative impacts on ESG matters. The standards are designed to be universally applicable to different types of institutions in terms of size, geolocation and sectors. They have evolved to become the most widely used sustainability reporting framework globally.

The GRI standards consist of a set of modules. The three core modules, also known as GRI's 100 series, form the Universal Standards which apply for all types of businesses. These are the GRI Standards 101: Foundation, GRI Standards 102: General Disclosures, and GRI Standards 103: Management Approach.

The Universal Standards are further supplemented by the Topic Standards, enabling specific disclosures for each of the three material topics of sustainability. These are the GRI 200: Economic Topics, GRI 300: Environmental Topics, and GRI 400: Social Topics. Sector Standards have also been conceived, for you to apply in accordance with your sector.

A non-profit organisation supported by the United Nations, the PRI is the leading promoter of responsible investment. Its work consist in understanding the implications of ESG matters on investment to support the international community of investor signatories in effectively incorporating such ESG concerns into their investment decision-making.

The PRI offers six Principles for Responsible Investment as a menu of actions you can take to incorporate ESG matter into investment practices which you can begin implementing by becoming a signatory. Find out more about how to become a signatory here.

SASB was founded in 2011 with the specific aim of developing sustainability reporting standards for investors. SASB is one of the most widely used frameworks for sustainability reporting, along with GRI. SASB Standards consist of a complete set of 77 Industry Standards, available for individual sector download here. SASB further published its Conceptual Framework designed to be cost-effective for companies to implement. Finally, SASB provides an Engagement Guide to help investors in their active ownership endeavours by providing them with a set of questions to consider discussing with companies concerning their risks.

In 2020, SASB and GRI declared a collaboration, so as to enhance coherence, harmonisation and legitimacy within the sustainability reporting environment. Though similar, the two approaches differ as SASB is more focused on identifying the financial subset of sustainability-related risks and opportunities, while GRI considers a wider approach for considering the economic, environmental and social impacts of a company. In their collaboration, they will be producing guidance on how to use the two standards concurrently.

UN Global Compact is a voluntary initiative for companies wanting to be proactive in adopting the UN Global Compact and begin implementing the Ten Principles ensuing from such adoption.

These Principles provide a common framework for incorporating sustainability matters into businesses' strategies and operations. After becoming a signatory, you are provided with various tools and resources to effectively incorporate sustainability through the Ten Principles into their business operations and producing the annual Communication on Progress (COP) report. Find more information about these resources and the steps to take to become part of the initiative here.

Founded in 1947, ISO is an independent, non-governmental international organisation setting standards, having produced over 23043 standards and other tools since its conception. Their ISO 14000 family provide models for setting up and operating an environmental management system for companies.

ISO 14001 is part of that family, and specifies criteria for effective environmental management system (EMS), by providing a framework for establishing requirements for environmental performance. 14001:2015 is the latest ISO 14001 standard and therefore the only one to be used currently, meaning older versions can no longer be used for certification. The standards are universally applicable, irrespective of geolocation, company size and sector.