GRI and IFRS Foundation: A New Era of Sustainability Reporting

In a groundbreaking move towards streamlined sustainability reporting, the Global Reporting Initiative (GRI) and the International Sustainability Standards Board (ISSB) of the IFRS Foundation have announced a deepened collaboration. This partnership aims to deliver full interoperability between GRI and ISSB standards, enhancing the ability of companies to meet both investor and broader stakeholder information needs.

Building on a Memorandum of Understanding signed in 2022, this enhanced cooperation will optimize the use of GRI and ISSB standards together, facilitating comprehensive reporting on an organization’s impacts, risks, and opportunities. A key focus will be the joint identification and alignment of common disclosures, addressing the distinct scopes and purposes of each set of standards.

An initial pilot project will focus on biodiversity, leveraging the recently published GRI 101 Biodiversity Standard and the ISSB’s upcoming biodiversity project. This collaboration will ensure that the standards can be seamlessly used together, reducing duplication and complexity in sustainability reporting.

Key Figures on the Collaboration:

• Erkki Liikanen, Chair of the IFRS Foundation Trustees, emphasized the importance of this agreement in reducing fragmentation in the sustainability disclosure landscape.
• Eelco van der Enden, CEO of GRI, highlighted the commitment to increasing transparency and the desire to ensure that GRI and ISSB standards can be used seamlessly together.
• Carol Adams, Chair of the GSSB, noted the significance of this step in enhancing disclosures on organizations’ most significant impacts.
• Emmanuel Faber, ISSB Chair, expressed confidence that this collaboration would strengthen the ISSB’s work in meeting the information needs of capital markets.

As both the ISSB and GSSB continue to maintain their separate decision-making processes, the collaboration underscores a shared commitment to enhancing global sustainability reporting. This development is expected to benefit report preparers and users worldwide, fostering closer integration while maintaining distinct reporting frameworks.

For a detailed comparison of the GRI and ISSB standards, readers can refer to the related article: Harmonizing GHG Emissions Reporting: Aligning GRI and ISSB Standards.

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