ESG Public Disclosure

What is ESG Public Disclosure?

ESG Public Disclosure is the process where organizations report sustainability information to investors, customers, and the public regarding environmental performance, social impacts, and governance practices. The companies typically disclose: 

• • Greenhouse gas (GH) emissions, including Scope 1, 2, 3
  • Energy and water use
  • Waste and resource management metrics · Workplace safety, diversity, and labor practices
  • Community engagement and supply-chain responsibility
  • Governance structure, ethics, and risk management practices
  • Company polices (e.g. Environmental, Labor Ethics, Sustainable Procurement, etc.)

ESG disclosure has historically been voluntary in the United States, but mandatory requirements are growing, including:

1. 1. California Climate Disclosure Laws
      1. SB-253 requires Scope 1, 2, and 3 GHG emissions reporting for large companies operating in California
      2. SB-261 requires climate-related financial risk reporting
   2. Forthcoming U.S. Securities and Exchange Commission (SEC) Climate Disclosure Rules
      1. New regulations designed to standardize climate-related risks, governance, and emissions reporting for publicly traded companies

Who Must Report ESG Data?

ESG disclosure requirements apply to a growing range of companies:

• • Public companies subject to SEC reporting requirements
  • Large private companies operating in California (SB-253 and SB-261 thresholds: >$1B annual revenue for SB-253; >$500M for SB-261)
  • Organizations with global operations subject to EU/UK disclosure rules
  • Companies responding to investors, customers, lenders, or insurance expectations
  • Firms voluntarily publish ESG or sustainability reports to remain competitive

Even companies not currently required to report are beginning to disclose their ESG data publicly to prepare for future mandates and reinforce their sustainability image.

ESG Reporting Standards and Frameworks

ESG Reporting Standards rely on established frameworks to ensure consistency, comparability, and credibility of ESG data. Key standards include:

• • Global Reporting Initiative (GRI) – Comprehensive global sustainability reporting standards.
  • SASB Standards – Industry specific ESG metrics widely used by investors.
  • ISSB Standards (IFRS S1 & S2) – The new global baseline for climate and sustainability disclosure.
  • Principles for Responsible Investment (PRI) – Investor aligned reporting guidance.
  • US GAAP/IFRS – Utilized when integrating financial sustainability disclosures.

Submission Frameworks of Popular Disclosure Reporting Platforms

In addition to formal ESG reporting standards (such as GRI, SASB, and ISSB), many organizations are increasingly required to disclose sustainability data through customer-driven reporting platforms. These platforms are commonly used by large corporations, investors, and procurement teams to evaluate supplier ESG performance, benchmark risk, and support responsible sourcing decisions. EcoVadis and CDP are two of the most widely used sustainability disclosure platforms for supplier and corporate reporting.

EcoVadis

EcoVadis is one of the most widely used sustainability assessment platforms for supplier ESG evaluation. It is heavily relied upon by procurement and supply chain teams to assess sustainability risks, compare suppliers using consistent scoring, and support responsible sourcing programs.

Companies invited to EcoVadis complete a customized sustainability questionnaire tailored to their industry, company size, and geographic location. Submitted documentation is reviewed and scored annually.

• • Focus: Full ESG spectrum, covering environment, labor & human rights, ethics, and sustainable procurement
  • Methodology: Customized questionnaire tailored to industry, size, location, spanning across the four sustainability themes
  • Reporting: Primarily private reports shared with businesses with public reporting as optional
  • Scoring: Scale of 1 to 100 with the top 50% performing companies receiving sustainability awards of bronze, silver, gold, or platinum medals

CDP (formerly Carbon Disclosure Project)

CDP is a globally recognized environmental disclosure platform used to assess and benchmark environmental performance and climate-related risks. Companies typically participate after receiving invitations from customers, investors, or financial institutions.

Participants submit responses during CDP’s annual reporting cycle, focusing on environmental metrics that customers and investors consider decision-critical.

• • Focus: Climate, water, deforestation, and other environmental factors
  • Methodology: Uses standardized questionnaire focused on environmental metrics
  • Reporting: Offers both public and private annual reports
  • Scoring: Graded A-F based on environmental performance

Why ESG Disclosure Matters

ESG Public Disclosure provides significant business value, including:

• • Regulatory compliance and readiness for evolving U.S./global requirements
  • Enhanced investor and stakeholder confidence
  • Stronger brand reputation in regard to environmental sustainability
  • Improved risk identification, including climate risk and supply-chain vulnerabilities
  • Operational efficiency through better resource and emissions tracking
  • Maintaining a Social License to Operate
  • Competitive advantage as customers and partners prioritize sustainability

How SEC Can Support You

Organizations often face challenges such as uncertainty in collecting reliable, auditable ESG data, difficulty presenting information in a clear and investor-ready format, or confusion surrounding evolving regulatory requirements. Stevens EHS Consulting provides comprehensive ESG disclosure support to address these challenges through:

• • Framework Selection & Alignment: Guidance on GRI, PRI, or SEC-aligned reporting approaches
  • ESG Report Development: End-to-end drafting, data integration, and polished, stakeholder-ready formatting
  • GHG Emissions Inventory: Accurate quantification and documentation of Scope 1, Scope 2, and Scope 3 emissions
  • ESG Data Collection Systems: Development of templates, data protocols, and internal control processes
  • Regulatory Interpretation: SEC climate disclosure rules, ISSB adoption, and etc.
  • Governance & Policy Development: Establishing ESG oversight structures, roles, and supporting procedures
  • Climate Transition Planning: Low-carbon strategies, risk assessments, and key performance indicator development
  • Integration with Existing Environmental Programs: Alignment with Title V programs, GHG reporting, air emissions inventories, and broader sustainability initiatives
  • Public Disclosure Questionnaire Completion: Questionnaire completion and submission through public disclosure platforms such as CDP and EcoVadis.