An ESG indicator measures a defined aspect of environmental, social or governance performance. A disclosure communicates information for a particular reporting purpose. It may include an indicator, an explanation, a policy or governance information. A useful reporting process starts by identifying what applies, not by selecting every available KPI.
Consider a hypothetical company tracking energy use. The indicator needs a unit, reporting period, organizational boundary and source. A governance disclosure can require different records or explanations. One does not replace the other.
Before preparing the report, list each item, its purpose, responsible person and supporting evidence. Record whether it is relevant to the company and period. Use current official sources for regulatory requirements and distinguish mandatory obligations from voluntary reporting choices.
QuantaESG is an ESG and carbon-accounting venture with Reflexion Group as a major partner. Contact us to discuss your reporting-preparation enquiry. This educational example is not a determination of your company’s obligations.