During the 2024 UN Climate Change Conference (COP 29) in Baku, Azerbaijan, the International Organization for Standardization (ISO) officially released the IWA 48 Framework for Implementing ESG Principles on November 14. This groundbreaking framework aims to provide a universal structure to embed Environmental, Social, and Governance (ESG) principles into organizational culture, ensuring consistent and reliable global ESG practices.
What is IWA 48?
IWA 48 is a comprehensive guide designed to help organizations integrate ESG principles into their operations. It provides:
- High-level structures and principles for ESG integration.
- Tools to manage and evaluate ESG performance.
- A roadmap for consistent, comparable, and reliable ESG reporting worldwide.
This framework supports both voluntary and regulatory reporting systems, bridging gaps between global ESG frameworks such as the International Sustainability Standards Board (ISSB) and the European Sustainability Reporting Standards (ESRS).
The Importance of Standardized ESG Principles
IWA 48 acts as a universal ESG language, fostering global interoperability and accountability. It ensures organizations:
- Improve ESG performance across all levels.
- Build resilient and responsible ecosystems.
- Drive the global adoption of sustainable business practices.
This standardized approach is vital for accelerating ESG cultural shifts in organizations of all sizes and sectors, particularly in emerging markets.
Designed with SMEs and Developing Nations in Mind
A major highlight of IWA 48 is its focus on supporting:
- Small and medium-sized enterprises (SMEs), which often lack resources for complex ESG integration.
- Organizations in developing countries, enabling equitable participation in global sustainability efforts.
By adopting IWA 48, SMEs can enhance their competitive edge and gain recognition in international markets, contributing significantly to the global sustainability agenda.
Comprehensive Coverage of ESG Elements
IWA 48 addresses:
- Environmental Action: Including climate resilience and emissions management.
- Social Inclusion: Focusing on diversity, equity, and community development.
- Governance Excellence: Establishing transparency and ethical standards.
The framework also outlines measurable key performance indicators (KPIs) to assess organizational maturity in ESG adoption.
A Collaborative Global Effort
The development of IWA 48 was led by ISO members from the UK (BSI), Brazil (ABNT), and Canada (SCC), with contributions from over 1,300 experts representing 128 countries. This international collaboration underscores the widespread commitment to creating a unified ESG framework.
Aligning with Existing Frameworks
IWA 48 complements existing ESG standards, offering compatibility with:
- The ISSB’s S1 and S2 disclosure standards.
- The EU’s ESRS framework.
While it is not a standalone reporting framework, IWA 48 serves as a guide for implementing and verifying ESG reporting, harmonizing global principles for long-term sustainability.
ISO’s launch of IWA 48 marks a significant milestone in establishing global ESG benchmarks, paving the way for sustainable practices that are accessible, measurable, and impactful across industries and regions.