Advancing Sustainability Reporting: Insights From GRI's Networking Session in North America

GRI North America organized an exclusive virtual networking session this week for GRI Community members in the region. The session provided an excellent opportunity for sustainability professionals from corporations and service providers, to engage in casual conversations, exchange insights and experiences from the current reporting season, as well as receive updates directly from GRI.

During the group discussion, several key points were highlighted:

1. Assorted stakeholders - including investors – are driving increased corporate disclosure, with a majority of our members experiencing different stakeholder groups demanding information.
2. Elevated reporting expectations are leading sustainability reporting to be moved under more traditional corporate functions, such as finance, and more internal controls and auditability is being prioritized.
3. The assurance of data in reports is becoming more commonplace, with over 60% of attendees indicating that they, or the majority of their clients, had data assured in their latest reports.

The increase in assurance aligns with the findings of the latest IFAC study, The State of Play in Sustainability Assurance. The study reviewed a total of 1,350 companies across twenty-one jurisdictions in 2021. Notably, 95% of large companies reported on ESG, and 64% of companies now obtain assurance/verification over some of the information provided (increasing from 91% and 51%, respectively, in 2019). Additionally, information disclosed following GRI Standards received higher assurance rates than any other reporting framework or standard, reaching 39% in 2021.

One of GRI’s previous installments of the GRI Perspective Series was Auditing to Save the Planet. The two-pager highlighted that inaccurate and incomplete data undermines the credibility of sustainability information. Effective reporting and controls go hand in hand, and at GRI, we believe that both are essential. Comparable data is crucial for companies and their stakeholders to assess whether their risks are mitigated and what impact the organization has on the environment, the economy and society, and how those impacts are managed. In line with this, we are pleased to note that the IAASB is developing a sustainability reporting assurance standard, which is a positive step towards increased transparency and accountability. If business, investors, and other stakeholders cannot trust published sustainability information, from both the financial and impact perspectives, it will be hard to demonstrate how they are contributing to a better world for everyone.

GRI North America’s Head of Engagements and Public Affairs, Matthew Rusk is pleased to be leading the panel discussion The Evolving Double Materiality, Two-Pillar Corporate Reporting System, and Roles for Accountants at the American Accounting Association’s annual meeting in Denver next month. The conversation will highlight the significance of internal auditing and controls in advancing the professionalization of ESG and Sustainability Reporting practices, while emphasizing the need for external assurance in ESG and Sustainability Reporting.