New equivalence statement marks progress toward global ESG reporting consistency
The IFRS Foundation and the Global Reporting Initiative (GRI) have announced that GRI 102: General Disclosures 2021 is partially equivalent to IFRS S2: Climate-related Disclosures — a significant step toward aligning global sustainability reporting frameworks.
This announcement follows a detailed technical mapping between the two standards and is expected to reduce complexity for organisations that report under both frameworks. It supports dual reporters by clarifying where disclosures required by GRI 102 meet the expectations of IFRS S2.
The partial equivalence covers disclosures related to:
- Governance of climate-related risks and opportunities
- Strategy
- Risk management
The two frameworks, however, differ in their materiality approach:
- IFRS S2 focuses on financial materiality, assessing how climate risks affect enterprise value.
- GRI 102 applies impact materiality, looking at how the organisation affects the environment and society.
This distinction is especially relevant in jurisdictions such as the European Union, where double materiality is required under the European Sustainability Reporting Standards (ESRS).
For multinational companies, the equivalence is expected to:
- Streamline ESG reporting cycles
- Reduce compliance costs
- Improve consistency across jurisdictions
The timing is critical, as countries including Australia, Canada, Japan, and Switzerland are preparing to implement IFRS S2-based climate disclosure requirements. It also aligns with broader efforts, including:
- The G7’s push for global ESG convergence
- IOSCO’s endorsement of IFRS S1 and S2
- Ongoing coordination among sustainability standard setters
Further implementation guidance is expected in the coming months to support organisations navigating overlapping disclosure requirements.
