Standards | Berghuis Consultancy

Various standards to satisfy various needs

An ESG standard defines specific metrics and methodologies for measuring and disclosing ESG performance, ensuring consistency and comparability across companies.

Over the years, various ESG standards have been developed to meet the needs of various different stakeholders. These standards sometimes overlap and complement each other, and efforts are being made to align them.

Despite their complexity, these standards guide companies towards greater sustainability and facilitate a smooth transition.

Below is additional information on a few frequently used standards.

The European Sustainability Reporting Standards (ESRS)

About: The ESRS are a set of reporting standards developed under the Corporate Sustainability Reporting Directive (CSRD). The ESRS require large companies to report on their environmental, social, and governance (ESG) impacts, risks, and opportunities using a standardized format to improve transparency.

Key concept: The ESRS use a double materiality approach: companies must report both how they affect the world and how the world affects them.

Who must comply: Initially, the ESRS apply to public-interest and large listed companies/groups with over 500 employees, plus either:

over €25 million in assets, or
a net turnover over €50 million (for at least 2 years).

Timeline: Other companies are due to follow by 2026–2027. However, as of February 2025, the EU proposed updates (Omnibus packages) that could delay deadlines and limit which companies must comply. The final rules are still pending.

Pros: Greater transparency, standardized reporting, drives sustainability performance.

Cons: High administrative burden, standard will continue to evolve and change, risk of box ticking.

Voluntary Sustainability Reporting Standard for non-listed SMEs (VSME)

About: The VSME is an easy-to-use ESG reporting standard for small, non-listed businesses. It helps them share sustainability info with larger clients, banks, and investors, and manage issues like pollution and workplace safety — boosting their growth and resilience.

Important difference from ESRS: No materiality analysis required — just report on applicable items.

Who it's for: Any business under 2 of these 3 limits:

€25M in assets,
€50M turnover,
250 employees.

Pros: Flexible, more simple, aligned with other EU rules.

Cons: May be seen as less reliable than ESRS-based reports.

DOWNLOAD WHITE PAPER

The Global Reporting Initiative (GRI)

About: GRI is an international framework that helps organizations transparently report their environmental, social, and governance (ESG) impacts using standardized sustainability metrics.

GRI is about how your company impacts the world.

Who it's for: The GRI Standards are voluntary and can be used by any organization

Pros: Widely adopted and recognized, covers a broad range of ESG topics with sector-specific standards and topic-specific disclosures and is well-aligned with other international frameworks and standards.

Cons: Can be complex, requires significant data collection, limited financial materiality focus.

Sustainability Accounting Standards Board (SASB)

About: SASB provides industry-specific standards that help companies disclose financially material sustainability information to investors in a consistent and comparable way.

Who it's for:

The SASB Standards are applicable to all companies, but are especially designed for:

Publicly listed companies
Large private companies
Organizations seeking to disclose financially material ESG information to investors

Pros: tailored to specific industries, Investor-focused as SASB emphasizes financially material ESG issues, supports integration with financial reporting.

Cons: Limited stakeholder focus, less suitable for SMEs or non-listed companies, limited alignment with EU regulations.