This article introduces the interoperability between ISSB standards, ESRS, and GRI standards. As important standards for sustainable information disclosure of global enterprises, ISSB standards, ESRS, and GRI standards share similarities but also have differences.
Interoperability between ISSB Standards and ESRS
The ISSB standard is published by the International Sustainability Standards Board, while the ESRS is published by the European Financial Reporting Advisory Group (EFRAG). In May 2024, the IFRS Foundation and the European Financial Reporting Advisory Group released the ESRS-ISSB Standards Interoperability Guidance, which clarifies the consistency between the two and demonstrates how businesses can apply these two sustainable information disclosure standards. The ESRS-ISSB Standards Interoperability Guidance provide information that enterprises need to know when complying with one standard, and list additional disclosure information required when complying with the other standard.
When a company complies with ISSB standards and wishes to comply with ESRS, additional disclosure is required:
- Scenario analysis.
- Greenhouse gas emissions.
- Carbon credits.
- Quantitative information on anticipated financial effects.
- Climate-related physical risks and transition risks.
- GHG emissions reduction targets.
- Organizational boundary for GHG emissions.
When a company complies with ESRS and wishes to comply with ISSB standards, additional disclosure is required:
- Scenario analysis.
- Greenhouse gas emissions.
- Carbon credits.
- Transition plan assumptions
- Industry-based metrics.
- Climate-related opportunities.
- Capital deployment.
- Financed emissions.
Interoperability between ISSB Standards and GRI Standards
The GRI standards is proposed by the Global Reporting Initiative and focuses on disclosing a company’s impact on the environment and society. ISSB standards and GRI standards can be used together to disclose sustainable impacts, risks, and opportunities. In order to improve the interoperability between ISSB standards and GRI standards, the IFRS Foundation has launched a series of collaborations with the Global Reporting Initiative:
- In November 2023, the IFRS Foundation and the Global Reporting Initiative established a Sustainable Innovation Laboratory to enhance companies’ ability to use two standards for information disclosure.
- In January 2024, the IFRS Foundation and the Global Reporting Initiative released a greenhouse gas disclosure interoperability document aimed at providing interoperability considerations for companies when measuring and disclosing greenhouse gases. GRI 305 and IFRS S2 are both based on the GHG Protocol, which facilitates companies to disclose information based on both standards.
- In May 2024, the IFRS Foundation signed a cooperation agreement with the Global Reporting Initiative to provide stakeholders with a comprehensive sustainable reporting system that meets the information needs of the market.
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