GRI Standards and Capital Markets:
The growing move towards mandatory ESG reporting
The Role of GRI in Capital Markets
As global financial markets increasingly prioritize Environmental, Social, and Governance (ESG) transparency, the Global Reporting Initiative (GRI) Standards have become the most widely adopted framework for sustainability reporting. Recognized by stock exchanges, regulatory bodies, and policymakers worldwide, GRI Standards help ensure that companies disclose consistent, comparable, and transparent ESG data, enabling investors and stakeholders to make informed decisions.
Stock exchanges play a critical role in shaping sustainability disclosure requirements, and many have either mandated or recommended GRI Standards as the preferred ESG reporting framework for listed companies.
Stock exchanges that recommend or mandate GRI standards
Many leading stock exchanges and financial regulators have integrated GRI into their disclosure guidelines, listing requirements, or voluntary recommendations. Below are some key examples:
1. Stock exchanges with ESG reporting requirements aligned with GRI
Johannesburg Stock Exchange (JSE)
Among the first to require sustainability disclosures, incorporating GRI-based ESG guidelines into listing requirements.
London Stock Exchange (LSE)
Supports guidance referencing GRI and Task Force on Climate-Related Financial Disclosures (TCFD) frameworks.
Singapore Exchange (SGX)
Mandates that all listed companies disclose ESG risks and opportunities, using GRI as a recommended framework.
Johannesburg Stock Exchange (JSE)
Among the first to require sustainability disclosures, incorporating GRI-based ESG guidelines into listing requirements.
London Stock Exchange (LSE)
Supports guidance referencing GRI and Task Force on Climate-Related Financial Disclosures (TCFD) frameworks.
Singapore Exchange (SGX)
Mandates that all listed companies disclose ESG risks and opportunities, using GRI as a recommended framework.
2. Market Regulators and Policymakers Supporting GRI
European Union (EU)
Under the Corporate Sustainability Reporting Directive (CSRD), large companies must comply with ESG disclosure mandates aligned with GRI, ESRS, and TCFD.
China Securities Regulatory Commission (CSRC)
Encourages GRI-aligned ESG disclosures for companies listed in Shanghai and Shenzhen.
U.S. Securities and Exchange Commission (SEC)
Proposes climate disclosure rules that align with global sustainability frameworks, including GRI.
Why stock exchanges endorse GRI reporting
- Increased transparency and market confidence
- Regulatory compliance and standardization
- Attracting global investment
- Strengthening corporate reputation and risk management
Sustainable Stock Exchanges (SSE) initiative and GRI
The Sustainable Stock Exchanges (SSE) initiative, backed by the United Nations, encourages stock exchanges worldwide to develop sustainability reporting guidance for listed companies. As of today, most SSE members reference GRI as part of their ESG disclosure frameworks.
Stock exchanges participating in the SSE initiative, such as Euronext, Bursa Malaysia, and Nasdaq Nordic, actively promote GRI-based reporting standards to drive consistent and comparable ESG disclosures across global markets.
The future of ESG reporting in Capital Markets
With the growing push towards mandatory ESG disclosure regulations, companies worldwide are expected to align with globally recognized reporting frameworks like GRI. Many jurisdictions are integrating GRI into their financial reporting standards, making it a key tool for corporate sustainability transparency.