GRI and EFRAG confirm interoperability of impact reporting standards
September 7th, 2023
The Global Reporting Initiative (GRI) and European Financial Reporting Advisory Group (EFRAG) have announced their respective impact reporting standards can be used collaboratively.
The groups published a joint statement on the interoperability of the GRI standards and the European Sustainability Reporting Standards (ESRS) developed by EFRAG, preventing the need for double reporting by companies.
It follows requirements from the Corporate Sustainability Reporting Directive (CSRD) that any new reporting standards should take existing standards into account and adopt a double materiality approach.
Both ESRS and GRI standards have adopted the same definition for impact materiality, and other definitions, concepts and disclosures are fully or closely aligned.
As a result, existing GRI reporters will be prepared to report under the ESRS due to shared disclosures and a high level of alignment.
Convergence of standards will result in more harmonised reporting and clearer regulations for companies and investors alike.
Eelco van der Enden, chief executive of GRI, said: “The next step [is] the collaboration with EFRAG on the development of an interoperable digital taxonomy and multi-tagging system, including a full mapping of the GRI Standards and the ESRS.
“This further reinforces the relevance of GRI and the critical importance of combining its global approach with the momentum demonstrated at jurisdictional level.”
Carol Adams, chair of the Global Sustainability Standards Board (GSSB), which sets the GRI standards, said it would now develop detailed mapping of the disclosures from both sets of standards to help companies using GRI to prepare for requirements under the EU’s Corporate Sustainability Reporting Directive.
She added: “Over time, I look forward to seeing companies reporting under these requirements increase their reporting using GRI sector standards and additional GRI topic standards.”
The GRI has also collaborated with the International Sustainability Standards Board (ISSB) to align their sustainability disclosure and reporting standards.
Last Updated: 7 September 2023