New Resource Enhances Emissions Reporting Through GRI and ISSB Standards Alignment

In a significant step towards streamlined sustainability reporting, the Global Reporting Initiative (GRI) and the IFRS Foundationhave unveiled a collaborative effort that marks a milestone in corporate environmental accountability. The newly published "Interoperability considerations for GHG emissions when applying GRI Standards and ISSB Standards" offers a comprehensive guide for companies aiming to measure and disclose their greenhouse gas (GHG) emissions across all three scopes in alignment with both GRI 305: Emissions and IFRS S2 Climate-related Disclosures standards.

This initiative represents a pivotal moment in sustainability reporting, highlighting the close alignment between the requirements of GRI 305 and IFRS S2. By leveraging the GHG Protocol, both standards provide a unified framework that facilitates the reporting of Scope 1 (direct emissions), Scope 2 (indirect emissions from electricity, heat, or steam purchases), and Scope 3 (all other indirect emissions in a company’s value chain) GHG emissions. This alignment not only streamlines the reporting process but also ensures that companies already disclosing their GHG emissions under the GRI Standards are well-equipped to extend their disclosures in accordance with the IFRS S2 requirements. The publication further suggests that additional GHG emissions disclosures can be seamlessly integrated, depending on the choices made by companies in applying the two standards.

The launch of this resource is the culmination of ongoing collaboration between the IFRS Foundation and GRI, aiming to promote efficiency in sustainability reporting for companies utilizing both sets of standards. This collaborative effort underscores the commitment of both organizations to harmonize global sustainability reporting standards, facilitating a more coherent and comprehensive disclosure of environmental impacts.

In November 2023, the GRI further solidified its commitment to advancing sustainability reporting by inaugurating the Sustainability Innovation Lab (SIL) in Singapore, in coordination with the IFRS Foundation. The SIL aims to foster innovation in sustainability reporting practices by bringing together global and local partners to enhance the capabilities of companies reporting under GRI and ISSB Standards.

The partnership between GRI and the IFRS Foundation dates back to March 2022, under a collaboration agreement focused on coordinating their sustainability-related work programs and standard-setting activities. This partnership has been instrumental in driving forward the integration of sustainability into corporate reporting frameworks, ensuring that companies have the tools and guidance necessary to accurately report their environmental impacts.

As the demand for transparency in corporate sustainability efforts continues to grow, the work of the GRI and the IFRS Foundation in aligning their standards is more critical than ever. This new resource not only facilitates more efficient reporting but also supports the global transition towards sustainable business practices, reinforcing the role of corporate reporting in achieving environmental sustainability goals.