Navigating Multi-Framework Sustainability Requirements

Learn how to prepare for CSRD, ISSB, GRI, and evolving stakeholder requirements

Sustainability reporting has existed for more than two decades. However, new sustainability frameworks and stakeholder requirements are being established, transforming from voluntary and nice-to-have reporting to mandatory and needed compliance. Stakeholders, notably investors, shareholders, banks, and customers require companies to give sustainability updates, performance, and improvements more frequently.

It is the era that companies should move from “publish a sustainability report without clear commitment and agenda” to “run the business with decision-grade sustainability insights.”

In this article, I want to share a practical guide to get readiness to multi-framework compliance efficient, transparent, acknowledged.

Why readiness to multi-frameworks and requirements matters

The Global Reporting Initiative (GRI) is designed for impact and stakeholder materiality, it is a world dominant framework since more than two decades. It covers reporting of 70–90% of large companies globally. It is in principle, the common language for non-financial and impact information. It goes deep on supply chain, human rights, tax (GRI 207), and biodiversity. It was the foundation for the European Corporate Sustainability Reporting Directive (CSRD) to establish its standards that various stakeholders ask for. Many companies will keep their reporting in compliance with GRI even if they keep adding investor sustainability related reports.

In Europe, the CSRD starts putting requirements to large corporations in the financial year 2024, and gradually evolve to apply to medium and smaller companies in the coming years. Although there are pressures to simplify and narrow the CSRD coverage, it is important to keep a close observation. CSRD scope can be used not only for regulatory compliance, but investors can use a part of CSRD coverage to request their investment portfolios to respond to their interest and for them making good business investment decisions.

Also at the global level, by mid- 2025, the International Sustainability Standard Board (ISSB) and its criteria (IFRS S1 & S2) were put into law and planned to be adopted by 36 countries. Together the ISSB compliance accounts for 60% of global GDP, 40% of global market capitals, and 60% of global GHG emissions. Its rising reflects expectations of investors, markets, regulators aiming to have a global reporting baseline (to avoid multiple climate reports). ISSB is basically established based on criteria defined in the Taskforce on Climate-Related Financial Disclosures (TCFD) together with industry metrics (SASB) and other consistent sustainability definitions. Many stakeholders are in favour of ISBB because it’s market-material, not everything-material.

In the US, the SEC adopted climate-risk disclosure rules in March 2024, then stayed implementation and in March 2025 voted to stop defending the rule amid litigation. Companies should, however, consider the US requirements as fluid, and keep monitoring state and investor demands.

Update 2025

CSRD

Among the 2025 Wave-1 reporters to CSRD, about 12,000 companies fell under the compliance. EFRAG’s July 2025 review finds regulatory compliance of mainly to manufacturing (38%), financial institutions (17%), with the rest spread across other non-financial sectors. Three themes dominate the 2025 CSRD reports:

1. What is material: E1 Climate (98%), S1 Own Workforce (99%), and G1 Business Conduct (93%) are material for nearly all reporters, while Biodiversity (E4) and Water (E3) lag. Sector differences are high, for example water is reported far less in tech and telecoms compared to health or energy sectors.
2. Climate & transition plans: About 70% of the companies set 1.5°C-aligned targets for Scope 1–2; and 50% extend the targets to Scope 3. Validation by SBTi is common but not universal.
3. Double materiality & assurance: Early reporters are formalising governance, data controls and audit trails to move from limited assurance toward reasonable assurance over time.

Certain Alignments And Diversions

There are some commonalities between the dominant frameworks that are mostly used by companies around the world. All frameworks cover Governance, Strategy, Risk Management, Metrics & Targets (originated from TCFD). These frameworks have some diversions though, that are summarised below.

1. Materiality:
2. CSRD: requires the double materiality (impact and financial).
3. ISSB/SEC: require disclosure on financial materiality (investor-focused).
4. GRI: requires disclosure impact materiality (stakeholder impacts).

 Topic Coverage

The CSRD standards ESRS spans E/S/G topics in depth. The ISSB S2 focuses on climate. The GRI adds impact detail often referenced by CSRD. The SEC focuses on climate risk disclosures (currently paused). There are some alignments on the topics defined in these frameworks.

• CSRD/ESRS and ISSB (IFRS S1/S2): The IFRS Foundation and EFRAG published interoperability guidance showing a very high degree of alignment on climate topics start with CSRD and you can meet the climate requirements of ISBB.
• ISSB and GRI: The IFRS Foundation and GRI issued joint resources mapping GHG disclosures to reduce duplication; collaboration toward full interoperability continues.

Reporting Tools and Consultancies

There are 200+ software currently available on the market declaring to assist reporting and sustainability management. The ESG reporting software market (a limited scope of sustainability) was recorded at >$1.3B (2023), projecting >$5.6B by 2029.

At global level, there are also thousands consultancies from big advisory firms to engineering and EHS specialist centres, and boutiques that state to help companies define sustainability strategies and reporting structure.

KPMG’s recent survey found 75% of companies aren’t ready for ESG assessments. Many companies still feel underprepared and stuck in data inconsistencies and templated reports that are used for all sizes and cover every sector. Sustainability strategies and reporting structure, if not established from thorough investigation of a specific business model, operations, and value chains, then can’t quantify actual business impact.

Investment in sustainability consulting should shift from slide-ware to implementation measures linked with digital support. Ultimately, companies expect to pay for operational outcomes, not just plans.

Readiness for CSRD

Among the identified frameworks, CSRD is mandatory, thus it is important to focus on its relevant scopes for your sectors, and keep monitor the Omnibus closely. The proposal to shrink CSRD coverage isn’t final. If your company meets CSRD size and listing criteria or is in major EU supply chains, keep building reporting tasks to be prepared for any additional requirements or changes.

Although the anticipated requirements are massive, there are key points that need some priorities and attention.

• Climate, people, and business conduct. Focus on these most fundamental tasks and gradually close gaps on biodiversity & water where material for your sector and regions.
• Data governance. Early reporters that invested in data controls (including Scope 3 estimation frameworks) are moving faster into assured, decision-grade reporting. These companies also avoid data inconsistence that might fire them back with criticism and let be labelled with green-washing.

Readiness Roadmap

Beyond CSRD, there are other frameworks and dozens of requirements from corporate stakeholders and interested parties. After assessing the reporting market since years, I have some key recommendations for companies preparing and ready for disclosures. 

1. Confirm scope & implement double materiality. If you are in CSRD directly, via listing, or via EU supply chains, let’s start implementing a documented and adjustable double-materiality assessment to reveal the materiality of climate, people, and business conduct.
2. Standardise data & controls. Set ownership, workflows, audit track, and evidence links for climate (including Scope 3 if material), workforce, and business conduct. Design for assurance from day one.
3. Map once, report many. Build disclosures in reusable blocks and map them to CSRD,  ISSB, GRI (and be prepared for SEC compliance in the near future). Add only the framework-specific items.
4. Automate what you can. Integrate with ERP/HR/energy/supplier sources to cut spreadsheets and shorten reporting cycles.
5. Monitor regulatory changes. Track CSRD simplification, sector topics (water/biodiversity), and US developments; adjust the library, not the whole process.

Investment and Capability Building

Sustainability should be seen as a profitable business and benefit engine. With additional mandatory and voluntary compliance, rising stakeholder expectations, investment and capability building should bear fruits for companies and their stakeholders. Below are my recommendations to ensure multiple and trusted compliance as well as value gains from sustainability reporting.

Sustainability Perspectives to Support Business, Demonstrate Compliance, and Satisfy Stakeholders’ Requests

1. Data automation & ERP integration. Corporate connectors (SAP, Oracle, Dynamics, Snowflake, utilities/APIs) should target a high data capture (ideally 80+%) to support reporting, minimise spreadsheets and supplier surveys.
2. Assurance-by-design reporting hub. Establish central audit routines, evidence links, versioned factors, and ready-made mappings (CSRD/ISSB/GRI/SEC) so you can export sustainability data to multiple request and requirements.
3. Product and Scope 3 level analytics. Companies should select reporting tools and platforms more cautiously. Tool providers should be able to help companies disclose insights to SKU/BOM or supplier level, so teams can observe both footprint and margin impact and take concrete actions accordingly.
4. Value chain connection and collaboration. Establish a platform-built and “share once, reuse many” portals for suppliers to reduce recurring data collection.
5. Sustainability for Business. Pair the sustainability platform you select with change management, procurement, operations, sales, marketing, and training so your business owns and benefits sustainability outcomes.

Cappi’s team is happy to share knowledge and insights with you. Let’s connect and collaborate for genuine sustainability impacts and supportive business growth.