Comparability conceptualization by existing sustainability reporting standard setters
| GRI standards (2021) | ||
| Comparability-related statements | Focus | Facets |
| The organization shall select, compile and report information consistently to enable an analysis of changes in the organization’s impacts over time and an analysis of these impacts relative to those of other organizations | Consistency in selection Consistency in the measurement method Comparison over time Inter-firm comparison | Facet 1 Facet 3 Facet 2 Facet 2 |
| Information reported in a comparable way enables the organizations and other users to assess the organization’s current impacts against its past impacts and its goals and targets | Comparison over time, against goals and targets | Facet 2 |
| It also enables external parties to assess and benchmark the organization’s impacts against impacts of other organizations as part of rating activities, investment decision and advocacy programs | Inter-firm comparison | Facet 2 |
| To apply the comparability principle, the organization should: –Present information for the current reporting period and at least two previous periods, as well as any goals and targets that have been set | Comparison over time, against goals and targets | Facet 2 |
| –Use accepted international metrics (e.g. kilograms and litres) and standard conversion factors and protocols, where applicable for compiling and reporting information –Maintain consistency in the methods used to measure and calculate data and in explaining the methods and assumptions used –Maintain consistency in the manner of representing the information –Report total numbers or absolute data (e.g. metrics, tons of CO2 equivalent) as well as ratios or normalized data (e.g. CO2 emissions per unit produced) to enable comparisons, and provide explanatory notes when using ratios –Provide contextual information (e.g. the organization’s size, geographical location) to help information users understand the factors that contribute to differences between the organization’s impacts and the impacts of other organizations –Present the current disclosures alongside restatements of historical data to enable comparisons if there have been changes in the information reported previously. This can include changes in the length of the reporting period, in the measurement methodologies, in the definitions used or in other elements of reporting. The organization is required to report restatements of information under Disclosure 2–4 in GRI 2: General Disclosures 2021 –If restatements of historical data are not provided, explain the changes to provide contextual information for interpreting the current disclosures | Measurement method | Facet 3 |
| Consistency in measurement methods | Facet 3 | |
| Consistency in representation | Facet 3 | |
| Measurement method | Facet 3 | |
| Provide details on context to ease inter-firm comparison | Facet 3 | |
| Provide details on restatements to ease comparison over time | Facet 3 | |
| Provide details on context to ease comparison over time | Facet 3 | |
| ESRS 1 General Disclosure principles (Exposure draft) | ||
| Requirement | Focus | Facets |
| 33. Sustainability information is comparable when it is consistent over time, and to the greatest extent possible, presented in a way that enables comparisons between undertakings (across sectors and within a specific sector) | Comparison over time Inter-firm comparison | Facet 2 Facet 2 |
| 33. (continued) A point of reference for comparison can be a target, a baseline, an industry benchmark, comparable information from either other entities or from an internationally recognized organization, etc | Comparison over time, against goals and targets Benchmarking | Facet 2 Facet 2 |
| 34. Consistency refers to the use of the same approaches or methods for the same sustainability matter, from period to period by the undertaking (as well as by other undertakings to the maximum extent possible) | Consistency in measurement methods Comparison over time Inter-firm comparison | Facet 3 Facet 2 Facet 2 |
| SASB standards | ||
| Requirement | Focus | Facets |
| Comparable: Metrics will yield primarily (a) quantitative data that allow for peer-to-peer benchmarking within the industry and year-on-year benchmarking for an issuer, but also (b) qualitative information that facilitates comparison of disclosure | Focus immediately on item level, not a selection issue Comparison over time Comparison to other organizations | Facet 1 Facet 2 Facet 2 |
| The standard includes activity metrics to measure the scale of the issuer’s business, providing operational context and facilitating normalization of SASB accounting metrics, which is important for the analysis of related disclosures | Normalization Relative comparison to other organizations | Facet 3 Facet 3 |
| Activity metrics may include high-level business data such as total number of employees, quantity of products produced or services provided, number of facilities or number of customers. They may also include industry-specific data such as plant capacity utilization (e.g. for specialty chemical companies), number of transactions (e.g. for internet media and services companies), hospital bed days (e.g. for health care delivery companies) or proven and probable reserves (e.g. for oil and gas exploration and production companies). An issuer’s disclosure of these activity metrics should: –Convey contextual information that would not otherwise be apparent from SASB accounting metrics –Be deemed generally useful for investors relying on SASB accounting metrics in performing their own calculation and creating their own ratios –Be explained and consistently disclosed from period to period to the extent they continue to be relevant | Provide details on context to ease relative comparison to other organizations | Facet 3 |
| Exposure draft 1 IFRS S1 General requirements for disclosure of sustainability-related financial information | ||
| Requirement | Focus | Facets |
| C17. The decisions made by the primary users of general-purpose financial reporting involve choosing between alternatives; for example, selling or holding an investment, or investing in one reporting entity or another | Inter-firm comparison | Facet 2 |
| Comparability is the characteristics that enables users to identify and understand similarities in, and differences among, items. Unlike the other qualitative characteristics, comparability does not relate to a single item. A comparison requires at least two items. Information is more to investors and creditors if it is also comparable, that is, if it can be compare with: (a) Information provided by the entity in previous periods; and (b) Information provided by other entities, in particular those with similar activities or operating within the same industry | Immediately on item level, no selection issue Comparison over time Inter-firm (with similar activities) | Facet 1 Facet 2 Facet 2 |
| C19. Consistency is related to, but is not the same as, comparability. Consistency refers to the use of the same approach or methods for disclosures about the same sustainability-related risks and opportunities, from period to period, both by a reporting entity and other entities. Comparability is the goal; consistency helps to achieve that goal | Consistency in measurement methods Consistency in representation | Facet 3 Facet 3 |
| GRI standards (2021) | ||
| The organization shall select, compile and report information consistently to enable an analysis of changes in the organization’s impacts over time and an analysis of these impacts relative to those of other organizations | Consistency in selection | Facet 1 |
| Information reported in a comparable way enables the organizations and other users to assess the organization’s current impacts against its past impacts and its goals and targets | Comparison over time, against goals and targets | Facet 2 |
| It also enables external parties to assess and benchmark the organization’s impacts against impacts of other organizations as part of rating activities, investment decision and advocacy programs | Inter-firm comparison | Facet 2 |
| To apply the comparability principle, the organization should: | Comparison over time, against goals and targets | Facet 2 |
| –Use accepted international metrics (e.g. kilograms and litres) and standard conversion factors and protocols, where applicable for compiling and reporting information | Measurement method | Facet 3 |
| Consistency in measurement methods | Facet 3 | |
| Consistency in representation | Facet 3 | |
| Measurement method | Facet 3 | |
| Provide details on context to ease inter-firm comparison | Facet 3 | |
| Provide details on restatements to ease comparison over time | Facet 3 | |
| Provide details on context to ease comparison over time | Facet 3 | |
| ESRS 1 General Disclosure principles (Exposure draft) | ||
| 33. Sustainability information is comparable when it is consistent over time, and to the greatest extent possible, presented in a way that enables comparisons between undertakings (across sectors and within a specific sector) | Comparison over time | Facet 2 |
| 33. (continued) A point of reference for comparison can be a target, a baseline, an industry benchmark, comparable information from either other entities or from an internationally recognized organization, etc | Comparison over time, against goals and targets | Facet 2 |
| 34. Consistency refers to the use of the same approaches or methods for the same sustainability matter, from period to period by the undertaking (as well as by other undertakings to the maximum extent possible) | Consistency in measurement methods | Facet 3 |
| SASB standards | ||
| Comparable: Metrics will yield primarily (a) quantitative data that allow for peer-to-peer benchmarking within the industry and year-on-year benchmarking for an issuer, but also (b) qualitative information that facilitates comparison of disclosure | Focus immediately on item level, not a selection issue | Facet 1 |
| The standard includes activity metrics to measure the scale of the issuer’s business, providing operational context and facilitating normalization of SASB accounting metrics, which is important for the analysis of related disclosures | Normalization | Facet 3 |
| Activity metrics may include high-level business data such as total number of employees, quantity of products produced or services provided, number of facilities or number of customers. They may also include industry-specific data such as plant capacity utilization (e.g. for specialty chemical companies), number of transactions (e.g. for internet media and services companies), hospital bed days (e.g. for health care delivery companies) or proven and probable reserves (e.g. for oil and gas exploration and production companies). | Provide details on context to ease relative comparison to other organizations | Facet 3 |
| Exposure draft 1 IFRS S1 General requirements for disclosure of sustainability-related financial information | ||
| C17. The decisions made by the primary users of general-purpose financial reporting involve choosing between alternatives; for example, selling or holding an investment, or investing in one reporting entity or another | Inter-firm comparison | Facet 2 |
| Comparability is the characteristics that enables users to identify and understand similarities in, and differences among, items. Unlike the other qualitative characteristics, comparability does not relate to a single item. A comparison requires at least two items. Information is more to investors and creditors if it is also comparable, that is, if it can be compare with: | Immediately on item level, no selection issue | Facet 1 |
| C19. Consistency is related to, but is not the same as, comparability. Consistency refers to the use of the same approach or methods for disclosures about the same sustainability-related risks and opportunities, from period to period, both by a reporting entity and other entities. Comparability is the goal; consistency helps to achieve that goal | Consistency in measurement methods | Facet 3 |
Sharing content requires targeting cookies to be enabled. Please update your cookie preferences to use this feature.