IFRS, GRI agree to align reporting standards

March 25, 2022

The IFRS Foundation and the Global Reporting Initiative (GRI) have signed an agreement to align their sustainability disclosure and reporting standards.

In statements published this week, the two organisations said their respective sustainability board - the International Sustainability Standards Board (ISSB) and the Global Sustainability Standards Board (GSSB) - should "seek to coordinate their work programmes and standard-setting activities".

Erkki Liikanen, chair of the IFRS Foundation Trustees, said the agreement would "help ensure capital market standards are developed in a way that minimises the reporting burden" for corporates.

"The [memorandum of understanding] between GRI and the IFRS Foundation is a strong signal to capital markets and society that a comprehensive reporting system, which combines financial and impact materiality for sustainability reporting, is possible on a global scale," added Eelco van der Enden, chief executive officer of GRI.

"Aligning GRI’s established and widely adopted standards for sustainability impacts with the investor-focused standards being developed by the ISSB will benefit both companies and investors, as well as a wide range of stakeholders around the world."

The agreement continues the global alignment and convergence of sustainability reporting standards. The launch of the ISSB at last year's COP26 conference in Glasgow coincided with the consolidation of the Climate Disclosure Standards Board and the Value Reporting Foundation into the IFRS Foundation.

Convergence of standards means more harmonised reporting and clearer regulations for companies and investors alike.

Emmanuel Faber, chair of the ISSB, said the standards set by the two boards working together would "offer a complete and compatible suite of sustainability disclosures".

Judy Kuszewski, Chair of the GRI GSSB, added that the collaboration was "crucial" to ensuring consistency of reporting, which in turn improves accountability and responsible business practices.

Meanwhile, the ISSB said it was set to publish its proposals for "Climate and General Sustainability-related Disclosure requirements" next week. These are designed to create a "global baseline" for climate-related reporting, and have been supported by the G20 and the International Organization of Securities Commissions.