GRI and EFRAG partner for interoperability index
December 6th, 2023
The Global Reporting Initiative (GRI) and the European Financial Reporting Advisory Group (EFRAG) have partnered to launch the GRI-ESRS Interoperability Index, which gives guidance on how to align both group’s standards.
The index sets out how the GRI’s reporting requirements and the European Sustainability Reporting Standards (ESRS) relate to each other, emphasising the high degree of commonality.
Interoperability reduces the reporting burden on companies and results in a user-friendly reporting system.
Entities reporting under ESRS will be deemed reporting ‘with reference’ to the GRI standards and existing GRI reporters will be able to leverage their current reporting efforts to prepare their ESRS sustainability statement.
The organisations announced their respective impact reporting standards could be used collaboratively in September and have signed a new Memorandum of Understanding (MoU), “which substantiates the benefits of the alignment achieved between the standards”.
The MoU also sets out further areas for collaboration, including further development of guidance on existing and new sector standards, proportionate reporting for SMEs in the EU – standards for non-EU companies for which the CSRD will apply.
The organisations have decided to implement three common principles in line with their joint interoperability statement.
The first principle states that companies benefit from reporting publicly on their management efforts in relation to their positive and negative impacts.
The second states that all stakeholders, including investors, will benefit from standardised, credible, and comparable information on impacts.
The third principle states optimal interoperability between global and European sustainability reporting standards is in the interests of companies and other organisations to minimise the reporting burden.
Hans Buysse, president of EFRAG administrative board, said: “As a multistakeholder organisation, tasked with the elaboration of sustainability reporting standards as technical advice to the European Commission, EFRAG welcomes the fruitful dialogue with other standard setting organisations or initiatives.”
Eelco van der Enden, chief executive of GRI, said: “Encompassing practical resources and training alongside deeper engagement on standards, this new MoU reassures companies and all stakeholders of our joint commitment to an aligned, efficient, and feasible EU and global ecosystem for impact reporting.”
Last Updated: 6 December 2023