GRI and IFRS Foundation Reaffirm Commitment to Complementary Sustainability Disclosure Standards

The Global Reporting Initiative and the IFRS Foundation have issued a joint statement reaffirming their commitment to enabling efficient, complementary sustainability reporting using both GRI Standards and ISSB Standards, following a meeting between ISSB Chair Emmanuel Faber and GSSB Chair Susanne Stormer. The statement, titled Facilitating Efficient Reporting When Using the GRI and ISSB Standards, describes common disclosures that the Global Sustainability Standards Board and International Sustainability Standards Board have been working together to align, and sets out how information provided under both frameworks can be complementary while serving distinct purposes. The publication builds on collaboration that began between the two organisations in 2022 and is intended for entities choosing or being mandated to apply these standards to meet the needs of investors and other stakeholders.

 

The Distinct Purposes of Each Framework

 

The GRI Standards are designed to support impact materiality disclosure, enabling organisations to report on their effects on the economy, environment and society for a broad range of stakeholders. The ISSB Standards, comprising IFRS S1 and IFRS S2, are built around financial materiality and investor-focused disclosure of sustainability risks and opportunities that affect enterprise value. These different materiality perspectives have historically been framed as competing approaches, but the joint statement clarifies that they serve distinct yet complementary purposes and can be used together within an integrated reporting system.

The distinction matters practically for organisations facing multi-jurisdictional reporting requirements, where different regulatory frameworks may mandate one or both sets of standards. The European Sustainability Reporting Standards under the Corporate Sustainability Reporting Directive apply double materiality, covering both impact and financial dimensions, while ISSB-aligned frameworks adopted in markets including the United Kingdom, Australia and Canada focus primarily on financial materiality. Organisations operating across these jurisdictions need clarity on how GRI and ISSB outputs interact to avoid duplication and inconsistency across their reporting obligations.

 

Read more: UK Bets on Private Capital to Fill £5.6 Billion Climate Aid Gap After 15% Cut to Development Finance

 

Progress on Common Disclosures and Alignment

 

A central element of the joint statement is the description of common disclosures that both standard-setting bodies have worked to align, reducing the reporting burden for entities that apply both frameworks simultaneously. Where disclosure requirements overlap between GRI and ISSB Standards, aligned common disclosures allow organisations to prepare information once and use it across both reporting contexts rather than maintaining separate parallel processes. This efficiency gain is particularly significant for large multinational organisations that are simultaneously subject to multiple mandatory disclosure requirements across different jurisdictions.

The collaboration between the GSSB and ISSB represents an important step in the broader effort to reduce fragmentation in the global sustainability disclosure landscape, which has been a persistent concern for preparers and users of sustainability information alike. Stormer said she sees the role of standard-setters as enabling organisations to determine what to disclose, for which purpose and audience, so they can report data that is meaningful, consistent and comparable. Faber said the ongoing work will deliver tangible benefits for entities using both sets of standards, reflecting a shared commitment to practical outcomes rather than purely conceptual alignment.

 

Explore OneStop ESG Marketplace: ESG reporting

 

Outlook for Global Sustainability Reporting Harmonisation

 

The GRI and IFRS Foundation joint statement represents a meaningful contribution to the broader project of achieving a coherent global sustainability disclosure architecture, at a time when the proliferation of frameworks and standards has created significant complexity for multinational preparers. Whether the two organisations can deliver further alignment on common disclosures, shared definitions and harmonised metrics will determine the practical value of this collaboration for reporting entities over the coming years. The next phase of work between the GSSB and ISSB is expected to produce additional tangible outputs that reduce duplication and improve comparability across the two frameworks.

Sustained progress would reinforce the case that voluntary and investor-focused sustainability disclosure standards can coexist and complement each other within a coherent global system, rather than requiring preparers to choose between them or maintain entirely separate reporting streams. As mandatory adoption of ISSB-aligned standards expands across more jurisdictions and GRI Standards remain embedded in corporate sustainability reporting globally, the practical relevance of this alignment work will continue to grow. The joint statement signals that the two most widely used international sustainability disclosure frameworks are committed to working together to deliver a reporting system that is efficient, meaningful and globally comparable.

 

Source: GRI