The International Organization for Standardization (ISO) has launched ISO ESG Implementation Principles, a new standard that aims to enable companies globally to improve their ESG implementation, performance, measurement, and reporting. With ESG regulations increasing rapidly by more than 155% globally in the last decade, including ISSB’s IFRS S1, IFRS S2, CSRD, GRI, and more, the new ISO standard provides a structure to enhance understanding and management of ESG disclosures with actionable guidance that is applicable to all sizes and sectors of organizations. 

Private equity/credit companies, asset managers, and impact investors should carefully consider the ISO ESG Implementation Principles. These guidelines are meant to provide a structured approach for enhanced ESG performance and reporting, which has the potential to facilitate better investment practices. 

Let’s explore the ISO ESG Implementation Principles in detail. 

About the ISO ESG Implementation Principles

The ISO ESG Implementation Principles are a set of rules that offer a framework for organizations to help them embed ESG practices within their business strategy. The principles are designed to: 

• 
  Support ESG performance management. 
• Improve consistency and reliability in ESG measurement and reporting.
• Facilitate interoperability by aligning with existing standards for harmonized ESG compliance.
• Promote global consistency for comparability and clear communication of sustainability efforts.

By providing a standardized reference model, ISO aims to enhance the management of ESG performance and foster a culture of sustainability across various organizations and sectors globally. 

Secretary General of ISO, Sergio Mujica, said, “ISO’s ESG implementation principles will foster a lasting culture of ESG that will bring real value to organizations, governments, investors, and consumers. These guidelines will help accelerate the adoption of sustainable business practices, which benefit diverse communities and the environment. Importantly, these guidelines can be used by all organizations in all sectors and could particularly benefit SMEs and organizations in developing countries. We are proud of this initiative and to be launching it today during COP29.”

Key aspects of the ISO ESG Implementation Principles

• 
  The new guidelines facilitate the integration of ESG principles with a holistic approach by addressing environmental impacts such as waste management and carbon footprints, social considerations such as human rights and diversity, and governance practices like regulatory compliance and transparency. 

• 
  The ISO principles recognize the varying nature of organizations, which is why they are designed to be flexible and adaptable. This allows businesses and sectors of all sizes around the world to use the guidelines according to their unique use cases. 

• 
  The new ISO guidelines were developed by national standards bodies, including the Standards Council of Canada (SCC), the British Standards Institution (BSI), and the Brazilian Association of Technical Standards (ABNT). They incorporate input from more than 1,900 industry experts across 128 countries. 

While you’re here…

Financial institutions, private equity and credit firms, asset managers, and impact investors should consider the new ISO ESG Implementation Principles to align with existing ESG standards globally.

However, keeping up with international guidelines like this and assessing them accurately can be challenging. This is where Auquan comes into play. 

Auquan automates and streamlines deal sourcing, due diligence, monitoring, sustainability, and compliance workflows so finance and ESG teams can move faster and more efficiently. Using advanced AI, Auquan generates material and sustainability insights on any entity worldwide — public or private — fine-tuned for your team's investment and lending requirements.

Let's explore how Auquan can help you and your team eliminate tedious and time-consuming manual data work and focus more on what you do best.