Organizacije ISSB i GRI have published a new progress report in which, for the first time, they present concrete solutions for aligning and integrating their global standards.
The International Sustainability Standards Board (ISSB) and the Global Reporting Initiative (GRI) have announced a joint decision to align their systems.
The aim of this historic step is to create a unified, global and simplified ESG reporting system that will drastically reduce duplication of work for companies.
Although both systems serve sustainability reporting, they have so far had different areas of focus:
- ISSB (IFRS S1 and S2): Focused on investors and financial risks related to climate change.
- GRI Standards: The world's most widely used standards for measuring companies' impacts on the economy, the environment and people.
Key practical benefits:
- No more duplication of work: Companies that measure greenhouse gas emissions (Scopes 1, 2 and 3) under the GHG Protocol for one standard will automatically meet the requirements of the other standard.
- Reduced administration: Data are collected once and used for both frameworks, directly reducing costs and workloads for finance and ESG teams.
Why is this important for domestic and regional companies, and where does ESRS fit in?
Why is this important for domestic and regional companies, and where does ESRS fit in? Many financial experts and managers rightly consider the current ESG environment burdensome because of overlapping rules (GRI, SASB, TCFD, ISSB). This synergy provides much-needed relief for exporters and companies seeking international financing.
Most importantly, the European Standards (ESRS) under the CSRD Directive were built precisely on the foundations of double materiality - combining the financial aspect (covered by ISSB) with impact on society and the planet (covered by GRI).
Alignment of these global frameworks means that companies in our region will be able to meet the European Union's stringent legal requirements with significantly less administration.
ESG reporting stopped being merely part of PR strategy or philanthropy long ago. Today, banks, investors and global partners view these data as a key indicator of stability and long-term business competitiveness. Companies without transparent data risk more expensive sources of financing and losing their market position.