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. 

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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: 

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Johannesburg Stock Exchange (JSE)

Among the first to require sustainability disclosures, incorporating GRI-based ESG guidelines into listing requirements.

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Hong Kong Stock Exchange (HKEX)

Requires ESG reporting from listed companies, with GRI Standards as a reference framework.

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London Stock Exchange (LSE)

Supports guidance referencing GRI and Task Force on Climate-Related Financial Disclosures (TCFD) frameworks. 

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São Paulo Stock Exchange (B3, Brazil)

Encourages companies to disclose ESG performance using GRI, especially for climate-related disclosures.

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Singapore Exchange (SGX)

Mandates that all listed companies disclose ESG risks and opportunities, using GRI as a recommended framework. 

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Stock Exchange of Thailand (SET)

Promotes sustainability reporting, recommending GRI Standards for listed companies. 


2. Market Regulators and Policymakers Supporting GRI  

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European Union (EU)

Under the Corporate Sustainability Reporting Directive (CSRD), large companies must comply with ESG disclosure mandates aligned with GRI, ESRS, and TCFD.  

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U.S. Securities and Exchange Commission (SEC)

roposes climate disclosure rules that align with global sustainability frameworks, including GRI.  

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China Securities Regulatory Commission (CSRC)

Encourages GRI-aligned ESG disclosures for companies listed in Shanghai and Shenzhen. 

Why Stock Exchanges Endorse GRI Reporting 

  1. Increased Transparency and Market Confidence 
  2. Regulatory Compliance and Standardization 
  3. Attracting Global Investment 
  4. Strengthening Corporate Reputation and Risk Management 
Why Stock Exchanges Endorse GRI Reporting

Why Stock Exchanges Endorse GRI Reporting 

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. 

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