THE LINK BETWEEN SUSTAINABILITY REPORTING AND GREEN BONDS: FOLLOWING THE EXAMPLE OF EU COMPANIES

Abstract

Frequencies are assumed to be the same or identical in ESG and sustainability reporting. But when we compare them with each other, we find that the ESG report is a precise, clear and structured document that examines the impact of risk and financial results. And focused on specific impacts as economic, social and environmental. And the sustainability report is a document that is usually based on a broader perception. It explains the economic, environmental, social and sustainability management impacts of the company. Therefore, practice shows that these two reports are like synonyms, but their meaning varies in the activity depending on the context. The purpose of the sustainability report is to ensure transparency and inform how a company can contribute to sustainable execution in the future. And the ESG report is focused on specific impacts as economic, social, and environmental. The first part compares the fundamental differences between ESG and sustainability reporting based on the criteria provided, such as content context, reporting system, target audience and attention criterion. The second part then distinguishes the three main standards for sustainability reporting, such as the Global Reporting Initiative standards (GRI), European Sustainability Reporting Standards (ESRS) and  Sustainability disclosure standards (IFRS). We compare standards according to established criteria such as purpose, structure, significance and legal nature. The third part deals with the cases of companies.