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IFRS Foundation and GRI to Align Standards

By Nancy Fass
May 1, 2022

The International Financial Reporting Standards (IFRS) Foundation and the Global Reporting Initiative (GRI) announced that their respective standard-setting boards, the International Sustainability Standards Board (ISSB) and the Global Sustainability Standards Board (GSSB), will seek to coordinate their work programs and standard-setting activities.

 

The two organizations will also join each other’s consultative bodies related to sustainability reporting activities.

 

The agreement, in the form of a memorandum of understanding, represents the latest development in efforts to consolidate or align multiple international initiatives covering sustainability reporting into a more cohesive approach for the benefit of companies, investors, and society at large.

 

By working together, the IFRS Foundation and GRI will provide two pillars of international sustainability reporting. The first pillar represents investor-focused capital market standards of IFRS Sustainability Disclosure Standards developed by the ISSB, and the second pillar consists of GRI sustainability reporting requirements set by the GSSB, compatible with the ISSB standards, designed to meet multistakeholder needs.

 

“The collaboration between the GSSB and the ISSB demonstrates our shared commitment to the global alignment of disclosure requirements,” said Judy Kuszewski, chair of the GSSB. “This is crucial if we are to enable consistent reporting by companies, which increases accountability and drives responsible business practices. We look forward to aligning work programs and to making the two-pillar corporate reporting system a reality, with financial and sustainability reporting on an equal footing.”

 

Nancy Fass is a senior editor for IMA® (Institute of Management Accountants). She can be reached at nfass@imanet.org.
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