Table of Contents
ESG Frameworks
It was one of those late evenings in Mumbai when the monsoon taps loudly on the windows—like the sky itself reminding you that nature doesn’t wait for board approvals.
Inside the polished glass walls of Suryanet Global, an Indian multinational with operations in IT, pharma, and metals, the atmosphere was impossibly tense.
Three business heads sat in front of the CEO, looking both tired and overwhelmed.
Shalini, head of sustainability, broke the silence:
“Everyone is asking us to report something different. Investors want SASB. Regulators want BRSR. Clients ask for GRI. Europe insists on CSRD. Climate funds demand TCFD. We’re drowning.”
The CFO added nervously:
“Our teams are burning out. We keep producing reports, but I’m not sure we understand what actually matters to our business.”
And then the CEO—Vikram Sharma—asked the question that changed everything:
“Forget the noise.
Which frameworks truly matter for us—and why?”
This is the story of how one company found clarity in the storm.
A story of courage, discernment, and choosing meaning over compliance.
This is the story that every Indian company—every board, CEO, and CHRO—needs to hear.
1. The Night the CFO Found SASB—and Found His Focus
Two months earlier, Vikram had returned from an investor roadshow where a US fund manager bluntly told him:
“I don’t care about your 120-page sustainability report.
Show me the 5 things that actually impact your margins, growth, and risks.”
Vikram didn’t have an answer.
So that night, he stayed back in his office and opened the SASB website.
Within minutes, he felt something shift inside him.
Here, finally, was a framework that cut the clutter.
**SASB wasn’t asking companies to report everything.
SASB asked companies to report only what truly matters financially.**
It wasn’t philosophical.
It wasn’t moralistic.
It was surgical.
And for the first time, Vikram saw a path through the chaos.
2. SASB: The Framework That Speaks the Language of Business
Shalini explained it to the board beautifully:
“SASB speaks the language investors understand—risk, returns, margins, growth.”
SASB doesn’t dump generic ESG topics onto companies.
It carefully identifies the 3–7 ESG issues that matter most for financial performance in each industry.
The brilliance?
It’s empirical—not ideological.
It studies patterns across thousands of companies to find which ESG issues move:
✔ revenue
✔ cost of capital
✔ operational efficiency
✔ legal liabilities
✔ supply chain resilience
This meant clarity.
Precision.
Focus.
Let’s revisit the framework through Suryanet’s three sectors.
💻 For IT Services (like Suryanet’s Digital Division): SASB focuses on 5 issues
1. Data security & customer privacy
Because one breach can erase decades of trust.
2. Talent recruitment & retention
Because people are the business.
3. Competitive behavior & IP protection
Because innovation is fragile.
4. Systemic tech disruptions
Because outages can cost millions per hour.
5. Energy use in data centers
Because clients now choose vendors based on carbon footprint.
Vikram whispered to Shalini:
“This is exactly what our investors ask us about.”
💊 For Pharmaceutical Companies (like Suryanet Pharma): SASB sharpens focus
1. Product quality & safety
If drugs fail, nothing else matters.
2. Clinical trial management
Because ethics is existential.
3. Access to medicines & pricing
Because reputations are fragile.
4. Employee safety
Because labs & plants carry real hazards.
5. Legal & regulatory risks
Because non-compliance destroys credibility.
The pharma CEO sighed:
“We’ve been reporting everything except the five things that could actually shut us down.”
🛠 For Steel Companies (like Suryanet Metals): SASB brings hard truths
1. Greenhouse gas emissions
Because decarbonization is not optional anymore.
2. Air quality & compliance
Because regulatory penalties can cripple operations.
3. Water & wastewater management
Because steel depends on water availability.
4. Waste & hazardous materials
Because circularity is competitive advantage.
5. Workforce health & safety
Because safety failures are reputation killers.
The head of Metals spoke quietly:
“This is finally something we can act on.”
3. The Indian Reality: When SEBI’s BRSR Becomes a Mirror
Just when the board began celebrating SASB clarity, Shalini reminded them gently:
“SASB gives us financial relevance.
But SEBI’s BRSR gives us Indian relevance.”
And that sentence hit home.
Because India is not the US or Europe.
We are a country where:
- Communities matter.
- Local employment matters.
- Human rights matter.
- Environmental compliance involves daily realities.
- Supply chains are complex and deeply informal.
BRSR captures the soul of Indian business.
And no global framework does that.
BRSR Requires Something Rare:
Annual stakeholder engagement.
Board involvement.
Clear strategic alignment.
This wasn’t reporting.
This was corporate introspection.
**BRSR asks:
What does India expect from you?
How does your company impact the real world?**
It forces companies to reflect on:
✔ local hiring
✔ community health
✔ water usage in drought-prone regions
✔ labour practices in supply chains
✔ biodiversity around industrial areas
✔ CSR impacts
✔ employee well-being
For the first time, the board saw:
SASB shows what matters financially.
BRSR shows what matters socially.
And both were essential.
4. GRI: The Framework That Looks Into the Soul of a Company
A week later, Suryanet hosted a townhall with 2,800 employees across India.
A young engineer from Pune asked:
“We talk so much about our business goals.
When will we talk about our societal goals?”
And that day, the leadership understood what GRI truly is.
GRI is not about the company’s finances.
GRI is about its footprint on people, planet, and society.
It asks:
- How do your decisions affect communities?
- How do your operations affect biodiversity?
- How do your policies affect workers, women, suppliers?
- How do you impact the economy?
- How do you protect vulnerable groups?
GRI forces companies to think deeply, morally, humanly.
**The result?
A 360-degree view of materiality.
A mirror that reflects all impacts.**
But yes—GRI can become overwhelming.
Lists can stretch endlessly unless leaders have discipline.
And that was the turning point.
5. The Moment the CEO Realized: “We Don’t Have to Choose One.”
Vikram called another meeting and said:
“Why are we treating frameworks like competitors?
They are not rivals.
They are tools.”
And then he laid out the idea that transformed Suryanet forever.
6. The Integrated Approach: The Map That Changed Everything
The leadership aligned on a simple but brilliant strategy:
⭐ Use the strengths of each framework instead of choosing one.
1. Use SASB for financial relevance
→ Focus on what drives profit, risk, and competitive advantage.
2. Use GRI for societal relevance
→ Understand how the company impacts people and the planet.
3. Use BRSR for Indian relevance
→ Meet SEBI rules and address local expectations.
4. Use TCFD for climate relevance
→ Integrate climate risk into strategy and capital planning.
5. Use TNFD for nature relevance
→ Understand dependencies on biodiversity, water, ecosystems.
Together, these frameworks created something powerful:
A complete, holistic, authentic understanding of what matters.
Not reporting for the sake of reporting.
Reporting that drives strategy.
Reporting that drives resilience.
Reporting that builds trust.
7. TCFD: The Day Climate Risks Became Hard Numbers
A climate consultant presented two scenarios:
- A 2°C world
- A 4°C world
The CFO watched in disbelief as the models revealed:
- Raw material volatility under extreme heat
- Rising insurance premiums
- Disruption of chemical supply chains
- Water scarcity risks
- Client requirements for decarbonization
For the first time, climate change was not abstract.
It had rupee values.
TCFD became the bridge between climate science and financial planning.
TNFD: When the Steel Plant Manager Broke Down
During a site visit in Jharkhand, a steel plant manager pulled Vikram aside.
In a trembling voice, he said:
“Sir, the local river we depend on is shrinking every year.
We never included nature risk in our planning.
If this river fades, our plant will die.”
That day, TNFD stopped being a “future framework.”
It became a survival framework.
It asked:
- What ecosystems do we depend on?
- How vulnerable are they?
- What risks emerge from biodiversity loss?
- What opportunities arise from restoring nature?
TNFD became the heart of the company’s long-term resilience planning.
8. ISSB: How It Evolved — The Full Story
The International Sustainability Standards Board (ISSB) did not appear overnight.
It is the result of a 10-year global convergence journey—bringing together many fragmented ESG frameworks into one global baseline for sustainability disclosures.
Below is the simplest and most accurate evolution timeline.
✅ Step 1: The Origins — Three Major Frameworks Start the Movement
1. SASB (2011) — Industry-specific metrics
- Established in the U.S.
- Focused on financially material ESG issues by industry.
- Created 77 industry standards.
- Used widely by investors (especially in U.S. capital markets).
2. TCFD (2015) — Climate risk reporting
- Created by the Financial Stability Board (FSB).
- Focused on:
- Climate risks & opportunities
- Scenario analysis
- Governance
- Strategy
- Metrics & targets
- Became the global benchmark for climate disclosures.
3. Integrated Reporting Framework (IR) (2013)
- From the International Integrated Reporting Council (IIRC).
- Emphasized connected reporting: how strategy, governance, and performance create long-term value.
These three set the foundation.
✅ Step 2: The Big Consolidation (2020–2022)
By 2020, companies complained that sustainability reporting was confusing and fragmented.
So the major players started merging:
A. SASB + IIRC → VRF (Value Reporting Foundation)
(2021)
The Value Reporting Foundation brought:
- SASB Standards
- Integrated Reporting Framework
into one organization.
B. CDSB joins (2022)
CDSB = Climate Disclosure Standards Board
They provided strong environmental & climate disclosure expertise.
✅ Step 3: ISSB Is Born (Nov 2021)
At COP26 (Glasgow), the IFRS Foundation announced:
→ Creation of the ISSB under IFRS Foundation
To develop a global, reliable, investor-focused sustainability reporting standard.
→ It also announced the consolidation of:
- VRF (SASB + Integrated Reporting)
- CDSB
All their content, IP, and technical work was transferred to ISSB.
This created the single strongest sustainability reporting body the world has seen.
✅ Step 4: TCFD Is Fully Absorbed Into ISSB (2023)
In 2023:
→ TCFD officially ended and was replaced by ISSB.
ISSB S2 Climate Standard was built 90% on TCFD principles:
- Governance
- Strategy
- Risk management
- Metrics & targets
- Scenario analysis
Countries mandating TCFD (UK, Japan, Singapore, Canada) now shift to mandating ISSB.
✅ Step 5: ISSB Issues the First Global Standards (June 2023)
✔ IFRS S1 — General Sustainability Disclosures
(Aligned with SASB, CDSB, Integrated Reporting)
✔ IFRS S2 — Climate Disclosures
(Built on TCFD, uses SASB for industry metrics)
This is the global baseline supported by:
- IOSCO (global securities regulators)
- Big 4 auditors
- Major investors (BlackRock, State Street, Norges)
- Many countries preparing for mandatory adoption
🧩 Summary Chart — How ISSB Evolved
SASB ───┐
│
IIRC ────┼──→ VRF ────┐
│
CDSB ─────────────────┼──→ ISSB (under IFRS Foundation)
│
TCFD ─────────────────┘ (absorbed into IFRS S2)
🟦 Final Answer in One Sentence
ISSB evolved from the consolidation of SASB, IIRC, CDSB, and the adoption of TCFD principles, forming a single, global sustainability reporting baseline under the IFRS Foundation.
9. The Final Breakthrough: A Framework Isn’t a Report—It’s a Lens
By the end of the year, Suryanet didn’t just “comply” with frameworks.
They used them to:
- rewrite their business strategy,
- redesign their risk processes,
- reorganize their leadership structure,
- rethink their community partnerships,
- redefine their purpose.
Frameworks finally became what they were always meant to be:
Not burdens. Not obligations.
But lenses that help leaders see clearly.
Global Frameworks (Standards & Voluntary Bodies)
| Framework | Focus | Materiality | Mandatory in 2025? | Relevance in 2025 | Key Strength | Key Limitation |
|---|---|---|---|---|---|---|
| SASB | Industry-specific financially material ESG issues | Financial | Partially mandatory (via ISSB when adopted by regulators) | Very High — backbone of ISSB sector metrics | Investor relevance, comparability | Not impact-focused |
| GRI | Broad sustainability impacts | Impact | Indirectly mandatory in EU (via CSRD alignment) | Very High — global CSR benchmark | Most comprehensive | Can become overly detailed |
| TCFD | Climate risk disclosure | Financial | Fully mandatory in: UK, Japan, Singapore, NZ, Canada; replaced by ISSB globally | Extremely High — foundational for ISSB S2 | Universal climate structure | Climate-only |
| TNFD | Nature & biodiversity | Double (optional) | Not mandatory yet (expected 2026–2027 in some regions) | High & rising — major for agri, mining, FMCG, infra | Strong nature risk framework | Complex, still maturing |
| ISSB (IFRS S1 & S2) | Global baseline for sustainability & climate | Financial | Mandatory or being adopted by 25+ countries incl. UK, Australia, Singapore, Canada (phased) | Extremely High — de facto global standard | Globally consistent, investor grade | Limited social topics |
| BRSR (India – SEBI) | Indian ESG disclosure rule | Financial + Impact | Mandatory for top 1,000 Indian listed companies | Extremely High – India’s core reporting rule | Context-specific, stakeholder focused | Quality varies, evolving |
🚩Quick “Red-Flag / Must-Know” Summary for 2025 Boards
| Framework | Mandatory in 2025? | Why It Matters for Boards |
|---|---|---|
| SASB | Indirectly (through ISSB adoption worldwide) | Industry KPIs investors demand |
| GRI | Indirectly mandatory in EU | Needed for stakeholder impact reporting |
| TCFD | Mandatory in many markets & absorbed into ISSB | Still the backbone of climate disclosure |
| TNFD | Not mandatory yet, but expected soon | Nature impact is becoming the “next climate” |
| ISSB | Mandatory in 25+ countries by 2025–26 | Emerging global baseline. Key for future compliance |
| BRSR (India) | Mandatory NOW | Core requirement for Indian listed companies |
| EU CSRD | Mandatory | Toughest overhaul of sustainability reporting |
| US SEC | Mandatory climate reporting | Applies to all US-listed Indian multinationals |
| UK SDR / Australia / Singapore / Japan | Mandatory | ISSB becoming global reporting language |
2025 Relevance Ranking (Most to Least Impactful)
- 1. ISSB (global baseline — investor required)
- 2. CSRD/ESRS (most comprehensive & mandatory)
- 3. TCFD (still required + core of ISSB)
- 4. SASB (industry metrics used everywhere)
- 5. BRSR (India-specific, mandatory)
- 6. GRI (stakeholder expectations, EU alignment)
- 7. TNFD (emerging, will grow fast post-2026)
10. The CEO’s Note That Every Leader Should Read
Vikram’s message to the entire company became iconic.
It was printed at the entrance of the corporate office.
“SASB taught us what drives our business.
GRI taught us what drives our impact.
BRSR taught us what drives our India story.
TCFD taught us what drives our resilience.
TNFD taught us what drives our survival.
ISSB integrates ESG with IFRS -Financials
Together, these frameworks taught us who we truly are.”
11. And Finally: The Question Every Company Must Answer
After a year of learning, unlearning, and integrating, the leadership asked itself one powerful question:
“What is truly material for us?”
Not because regulators demanded it.
Not because investors pressured it.
Not because clients expected it.
But because they wanted their company to operate with:
- clarity
- purpose
- responsibility
- resilience
- pride
And the answer became their North Star.
✨ Final Takeaway: Don’t Fear the Frameworks—Use Them to Find Yourself
SASB shows you what affects your financial performance.
GRI shows you how you affect the world.
BRSR shows you what India expects from you.
TCFD shows you how climate change reshapes your future.
TNFD shows you why nature is your greatest asset.
ISSB applies IFRS-style standards to ESG issues so companies report sustainability with the same confidence as financials.
You don’t have to choose one.
You only have to choose clarity.
Frameworks are not complexity.
Frameworks are wisdom, dressed as compliance.
And once you understand how to use them—
your business stops surviving and starts transforming.
Read blogs on sustainability here.
Reference
IFRS Foundation – ISSB Standards (Official Source)
https://www.ifrs.org/issb/