modefinance takes another significant step forward in the landscape of ESG assessments, obtaining approval for its proprietary ESG Advanced model as compliant with the standards of the Global Reporting Initiative (GRI).
But what is GRI and why is it so relevant for the SMEs world?
GRI is an authoritative international nonprofit institution whose mission is to provide standards for sustainable performance reporting for companies and organizations worldwide. Born with the goal of defining norms for sustainable accounting, GRI offers clear and universally accepted guidance through its GRI Standards, providing an essential framework for sustainable performance reporting, regardless of the size, sector, or location of the organization.
Although other standards exist, GRI stands out for its long history, being active since 1997, and for its widespread use and acceptance by companies globally. Therefore, GRI represents not only a convention in the realm of sustainable reporting but also a guarantee of reliability and universality.
The approval process
As already mentioned, modefinance’s proprietary model for assessing company sustainability, ESG Advanced, has recently achieved compliance with the GRI Standards. As the copyright licensee of the GRI Standards, GRI has conducted a thorough review and validation of the faithful representation of the GRI Standards within the ESG Advanced model on the Tigran platform. This process has focused on preserving the integrity, authenticity, and accuracy of the content.
The outcome of this elaborate process is a close alignment between the topics addressed in modefinance’s model and the GRI reporting standards, particularly evident in the correspondence between the questions posed in our assessment and the specific GRI frameworks. Compiling a report in line with the GRI Standards provides a comprehensive overview of critical issues for a company, ranging from economic, environmental, and social risks that could undermine reputation and the ability to generate value in the short, medium, and long term, to the analysis of their impact and related management strategies. Below is an example of how the correspondence between the questions of the ESG Advanced model and the GRI standards appears within the patented Tigran platform.
It is important to emphasize that, despite the association with GRI standards, the role of modefinance remains evaluation rather than reporting. Therefore, the goal is always to ensure accurate and reliable analysis that maintains the integrity and authenticity of the evaluated data.
modefinance’s ESG Advanced model
With this integration, users requesting the ESG Advanced will have access to a comprehensive ESG evaluation, providing them with a solid foundation for building their sustainability report, a document that is increasingly valuable in the financial world and highlights a company’s commitments and actions regarding ESG factors.
The ESG Advanced model is characterized by its sector-agnostic nature, meaning that the questionnaire is uniform across all sectors, although the weighting of responses – calculated within algorithmic constructs – may vary depending on the company’s industry and other metrics.
A practical approach to sustainability management and compliance with EU regulations
For small and medium-sized enterprises in general, but especially for those that have not yet started the process of drafting a sustainability report, it is crucial to begin this journey. When faced with the increasingly urgent need to adapt to European Union regulations, it is essential to narrate one’s corporate identity, activities, and future objectives.
However, instead of immediately starting the compilation of the report, it could be beneficial to begin with a preliminary assessment, a path particularly useful for entrepreneurs who are not yet fully familiar with the concepts of environmental, social, and governance sustainability. Through the evaluation carried out using the ESG Advanced model, it is possible to obtain an overview of one’s current situation. Furthermore, the evaluation provides clear guidance on which aspects need to be assessed and implemented in the company’s strategy, which can then be included in the sustainability report.
modefinance offers a product that integrates the technology and know-how of a Fintech company with the financial sector expertise of a rating agency, providing not only a company’s activities sustainability assessment, but also support for compiling the sustainability report.
To learn more and/or request a demo