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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Sustainability Audit, ESG Rating and Emerging Mandates from Government and Regulators

Sundaram Textiles Ltd, a listed Indian company, wants its sustainability report to disclose how climate-related risks affect its enterprise value, with disclosures organised around governance, strategy, risk management, and metrics and targets. Which global standard setter's framework follows this four-pillar structure for investor-focused reporting?

The ISSB standards, IFRS S1 and IFRS S2, use the four pillars of governance, strategy, risk management, and metrics and targets, inherited from TCFD. They target investor-relevant information on enterprise value, unlike GRI, which centres on a company's impacts on the economy, environment and people.

  1. AISSB, through IFRS S1 and IFRS S2Correct
  2. BGRI Universal Standards on impact materiality only
  3. CThe OECD Guidelines for Multinational Enterprises
  4. DThe ILO Tripartite Declaration

Explanation

The ISSB standards IFRS S1 and IFRS S2 are built on the four pillars of governance, strategy, risk management, and metrics and targets, which were carried over from the TCFD recommendations. They focus on information useful to investors about enterprise value. GRI is impact-focused and has a different structure.

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