A Memorandum of Understanding signed in 2022 between the IFRS Foundation and the Global Reporting Initiative (GRI) aims to ensure the compatibility and interconnectedness between investor-focussed sustainability information for the capital markets, contained in IFRS® Sustainability Disclosure Standards, and sustainability information intended to serve the needs of a broader range of stakeholders (these are contained in GRI Standards).
We have already seen co-operation between these two bodies in the area of emissions reporting, with a joint publication released in January 2024, Interoperability considerations for GHG emissions when applying GRI Standards and ISSB Standards. This publication shows areas of interoperability between GRI standard 305 Emissions and IFRS S2 Climate-related Disclosures and is a useful resource for companies measuring and disclosing Scope 1, Scope 2 and Scope 3 greenhouse gas (GHG) emissions in accordance with both standards.
Most recently, in May 2024, the International Sustainability Standards Board (ISSB) and the Global Sustainability Standards Board (GSSB) committed to jointly identify and align common disclosures when setting thematic and sector-based standards. This will enable entities to seamlessly apply both the GRI standards and the IFRS Sustainability Disclosure Standards and will reduce duplication, fragmentation and complexity in the sustainability disclosure landscape. The first outcome of this collaboration will involve building a methodology pilot on the recently published GRI 101 Biodiversity Standard and the ISSB’s upcoming project on Biodiversity, Ecosystems and Ecosystem Services.
How BDO can help
Navigating the complexity of the sustainability reporting landscape can be challenging. With numerous sustainability reporting frameworks, and mandatory reporting requirements varying from one country to another, you may be grappling with which standards will apply to your organisation, and when. Our sustainability reporting experts can help you understand what this might mean for your organisation.
Contact us today.