Key Updates & Opportunities in the Creation of a Global Comprehensive Reporting System
The global corporate reporting system continues to evolve and there is promise that the result will be a global cohesive corporate reporting system that consists of two distinct perspectives and purposes on materiality.
The European Commission has adopted the 1st set of European Sustainability Reporting Standards (ESRS), that cover “double materiality” and will be the disclosure standards associated with the European Corporate Sustainability Reporting Directive (CSRD). The CSRD will require more than 50,000 European companies to report on double materiality using these standards, as well as at least 10,000 companies outside the EU, including approximately 3,000 US companies and 1,300 Canadian companies. The EU Commission has confirmed that they will ensure a 'very high degree of interoperability' between EU standards and global standards set by GRI, after GRI served as co-constructor of the impact-related standards.
The recent launch of the International Sustainability Standards Board (ISSB)'s inaugural set of International Financial Reporting Standards (IFRS) S1 General and S2 Climate-Related Disclosures also represents a significant step in the pursuit of a global cohesive corporate reporting that consists of financial and impact materiality to serve all stakeholders. Under the Memorandum of Understanding between GRI and IFRS Foundation, both organizations have agreed to collaborate and work towards the interoperability of their standards.
To continue their work, ISSB is currently soliciting input on its priorities for the next two-year work plan. To gather feedback, they have released the Request for Information Consultation on Agenda Priorities, which will remain open until September 1st. The consultation aims to collect opinions on potential projects, which include exploring sustainability-related risks and opportunities concerning:
- Biodiversity, ecosystems, and ecosystem services;
- Human capital; and
- Human rights.
We are pleased to see ISSB’s interest in these topic areas that are also impacts represented in GRI Standards. These topics remain areas of critical work of GRI and the Global Sustainability Standards Board, as can be seen with the recent work to revise GRI 304—Biodiversity, the launch of the GRI Topic Standard Project on Labor, and Human Rights disclosures embedded in the GRI Universal Standards.
We strongly encourage all stakeholders to participate in ISSB’s request for Information Consultation on Agenda Priorities. Your input is critical in ensuring representation of all interested parties and contributing towards the convergence of a global corporate two-pillar reporting system.
Note that the content disseminated via this newsroom pertains to information concerning the North America perspective. For global updates regarding our organization, please visit GRI’s global newsroom.
