Consultation Draft Toward Common Metrics and Consistent Reporting of Sustainable Value Creation

The document outlines a framework for reporting sustainable value creation organized into four pillars: Principles of Governance, Planet, People, and Prosperity. It introduces 22 core quantitative metrics and a set of expanded metrics designed to reduce reporting fragmentation and catalyze the development of a generally accepted international accounting standard for ESG. The framework emphasizes the materiality of non-financial information to long-term business resilience and suggests a 'comply or explain' approach for implementation in annual reports and proxy statements.

• The proposed framework is structured around four pillars aligned with the UN Sustainable Development Goals: Principles of Governance, Planet, People, and Prosperity.
• The report distinguishes between 'Core metrics', consisting of 22 well-established quantitative requirements focusing on an organization's own boundaries, and 'Expanded metrics', which cover wider value chain scopes or more sophisticated impacts, such as monetary terms.
• Under the 'Planet' pillar, core metrics prioritize greenhouse gas (GHG) emissions (Scopes 1, 2, and material Scope 3), TCFD-aligned reporting, land use/ecological sensitivity, and fresh water consumption in water-stressed areas.
• The 'People' pillar focuses on dignity, equality, health, and future skills, with core metrics including gender pay equality ratios, diversity percentages, entry-level wage ratios compared to local minimums, and risks of child or forced labour.
• The 'Prosperity' pillar measures economic contribution through net job creation, net economic contribution (EVG&D minus government assistance), net investment, R&D spend ratios, and country-by-country tax reporting.
• The 'Principles of Governance' pillar emphasizes the need for a stated purpose linked to societal benefit, board composition diversity, stakeholder engagement, anti-corruption training, and the integration of ESG risks into capital allocation.
• The document advocates for a 'comply or explain' approach to reporting, allowing companies to omit specific metrics if they are not material to the firm's long-term value creation.
• The framework suggests that reporting on 'valued societal impact' in monetary terms for expanded metrics is an effective way to compare different impact areas and align them with financial figures.

APA

World Economic Forum (2020). Consultation Draft Toward Common Metrics and Consistent Reporting of Sustainable Value Creation. http://www3.weforum.org/docs/WEF_IBC_ESG_Metrics_Discussion_Paper.pdf

Chicago

World Economic Forum. Consultation Draft Toward Common Metrics and Consistent Reporting of Sustainable Value Creation. 2020. http://www3.weforum.org/docs/WEF_IBC_ESG_Metrics_Discussion_Paper.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Consultation Draft Toward Common Metrics and Consistent Reporting of Sustainable Value Creation |date=January 2020 |url=http://www3.weforum.org/docs/WEF_IBC_ESG_Metrics_Discussion_Paper.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2020consultation, author = {{World Economic Forum}}, title = {{Consultation Draft Toward Common Metrics and Consistent Reporting of Sustainable Value Creation}}, institution = {World Economic Forum}, year = {2020}, month = jan, url = {http://www3.weforum.org/docs/WEF_IBC_ESG_Metrics_Discussion_Paper.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }