What Are the ESG Metrics to Measure and Report?

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If you go through the full GRI or TFCD reporting metrics, you will likely be overwhelmed by the number of data that needs to be collected.

To be pragmatic, there is a list of core EST metrics you should have in all reporting.

Environmental

Greenhouse Gas Emissions (“GHG”) – Metric tons of carbon dioxide equivalent (tCO2e) of relevant GHG emissions. Report the Total, Scope 1 and Scope 2 GHG emissions and, if appropriate, Scope 3 GHG emissions. GHG emissions should be calculated in line with internationally recognised methodologies (e.g. GHG Protocol).
Energy Consumption – Total energy consumption, in megawatt hours or gigajoules (MWhs or GJ), within the organisation.
Water Consumption – Total water consumption, in megalitres or cubic metres (ML or m³), across all operations.
Waste Generation – Total weight of waste generated, in metric tons(t), within organisation and where possible, to include relevant information of waste composition (e.g. hazardous vs non-hazardous, recycled vs non-recycled).

Social

Gender Diversity – Percentage of existing employees by gender ; Percentage of new employees hires and employee turnover during the reporting period by gender.
Age-Based Diversity – Percentage of existing employees by age group; Percentage of new employees hires and employee turnover during the reporting period by age group. GRI’s employee age group categories include: (a) under 30 years old, (b) 30-50 years old, and (c) over 50 years old.
Employment – Total number and rate of employee turnover during the reporting period. Total number of employees as at end of reporting period.
Development & Training – Average training hours per employee during the reporting period (total number of hours of training provided to employees over total number of employees).
Occupational Health & Safety – Fatalities, high consequence injuries, recordable injuries, recordable work-related ill health cases

Governance

Board Composition – The number of independent board directors and female board directors as a percentage of all directors.
Management Diversity – The number of female senior management as a percentage of senior management.
Each organisation defines which employees are part of its senior management team.
Ethical Behaviour – Disclosures based on GRI’s anti-corruption standards; Number and percentage of employees that received anti-corruption training during reporting period
Certifications – List all sustainability or ESG-related certification (e.g. ISO 45000 family, BCA Green Building, LEED, ENERGY STAR). Each organisation defines which certifications are relevant to be reported.
Alignment with Frameworks – The issuer needs to give priority to using globally-recognised frameworks and disclosure practices to guide its sustainability reporting. Where the issuer is applying a portion of a particular framework, the issuer should provide a general description
of the extent of the issuer’s application of the framework.
Assurance – Disclose whether sustainability report has undertaken: (a) external independent assurance, (b) internal assurance or (c) no assurance. Provide scope of assurance if organisation has undertaken external or internal assurance.

Source: SGX

Does it mean you have to report all metrics?

The short answer is No.

For the first year of sustainability reporting, the issuer should have at least the assessment of material ESG factors, policies and/or practices to address the factors; but if their reporting is lacking in qualitative or quantitative descriptions, they need only state progressive targets for reaching maturity of reporting and do their best to meet them in subsequent years. Compliance with the reporting framework recommendations may also take place progressively.

Following is an illustration of a phased approach:

Year 1: Addressed most critical ESG material factors. GHG inventory, scope 1 and 2 are certainly reported. You can choose to do qualitative reporting during year 1, but this should move into quantitative reporting with plans to measure these factors in year 2.
Year 2: Reviewed factor assessment and added factors which have become material and removed existing factors which are no longer material. You can increase the metrics used for assessment or quantify.
Year 3: Reviewed factor assessment and added factors which have become material and removed existing factors which are no longer material. This will further look at quantitative reporting and disclosure.