• GRI welcomed the EU’s decision to preserve double materiality in the revised European Sustainability Reporting Standards.
• The organization called for stronger alignment with global standards to reduce duplication and improve decision-useful reporting.
• GRI warned that exemptions and limits on value chain data could weaken transparency for investors, asset managers, and companies.

GRI Pushes for Stronger Global Alignment

Brussels is moving to simplify Europe’s sustainability reporting regime, but the Global Reporting Initiative says the revised standards must not lose their strategic value for companies, investors, and policymakers.

GRI has submitted its response to two European Commission consultations. One focuses on the redrafted European Sustainability Reporting Standards. The other covers a new voluntary reporting standard for thousands of companies that are now outside mandatory reporting scope.

The organization welcomed the Commission’s decision to keep impact and financial materiality on equal footing. That principle sits at the center of the EU’s double materiality approach. It requires companies to assess both how sustainability issues affect enterprise value and how their activities affect people, the economy, and the environment.

For global companies, that balance matters. It shapes how boards assess risk, how investors compare performance, and how regulators judge corporate accountability. GRI said the revised standards must now deliver simplification without weakening the quality of information available to markets.

“Europe has sent an important signal by maintaining impact and financial materiality on an equal footing – because both are necessary for companies to assess risks, strengthen strategy and remain competitive. At a time when sustainability reporting is evolving rapidly in markets across the world, this helps create the conditions for a more coherent global system. While it is crucial that the revised ESRS delivers on simplification, it is also important that companies provide the information that stakeholders and society need.” Robin Hodess, CEO of GRI

Four Priorities for the Revised Standards

GRI’s response sets out several changes it says are needed to improve alignment, resilience, and usability.

First, it called for stronger interoperability with international standards. Many companies already use the GRI Standards in established reporting processes. Better alignment with ESRS would help them avoid duplication and reduce cost.

That issue is now a boardroom concern. Sustainability teams are under pressure to produce more reliable data, while finance leaders want clearer reporting systems. If standards diverge too far, companies face higher administrative burden and weaker comparability.

Second, GRI urged the Commission to remove the proposed exemption for assets under management. The organization said asset managers should remain subject to transparency requirements that reflect global best practice.

The point carries financial weight. Capital allocation depends on credible sustainability data. If asset managers face weaker disclosure expectations, investors may lose insight into how capital is exposed to sustainability risks and opportunities.

Third, GRI warned against tighter restrictions on how companies exchange sustainability data across their value chains. The proposed value chain cap is intended to reduce burden. Yet GRI said it could limit access to information that companies need to identify impacts and risks across business relationships.

That risk is particularly relevant for multinationals. Supply chains often carry the highest exposure to labor, climate, biodiversity, and governance risks. Reduced access to supplier data could weaken due diligence and complicate compliance with broader EU sustainability rules.

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Voluntary Reporting Comes Into Focus

GRI also responded to the proposed voluntary standard for companies no longer covered by mandatory ESRS requirements.

The organization said the voluntary framework should be strengthened for mid-sized companies. Its recommendations include adding double materiality assessment and relevant disclosures. That would help sustainability information support strategy and meet stakeholder needs.

The proposal comes as Europe tries to ease pressure on smaller firms while preserving transparency in the wider economy. Many mid-sized companies remain part of larger corporate value chains. Their data is often needed by banks, buyers, insurers, and investors.

For executives, the issue is practical. Voluntary standards that are too thin may fail to meet market expectations. Standards that are too complex may deter participation. GRI’s position is that a stronger, proportionate framework can support both competitiveness and reporting quality.

“Effective standards enable clarity, trust and consistency. It is encouraging to see continued interoperability between the ESRS and GRI Standards, which alongside our engagement with the ISSB, can contribute to sustainability reporting on a global scale that is streamlined yet comprehensive, effectively addressing an organization’s impacts, risks and opportunities.” Susanne Stormer, Chair of the Global Sustainability Standards Board (GSSB)

A Test for Europe’s Reporting Agenda

GRI’s submission follows years of involvement in the development of the ESRS. The organization co-created the initial standards with EFRAG and provided further input during the EU’s Omnibus simplification process.

The stakes now extend beyond compliance. Europe’s reporting framework is being watched by regulators, companies, and investors across global markets. Its design will affect how sustainability data is collected, assured, and used in capital decisions.

The revised ESRS must therefore strike a difficult balance. It must reduce burden for companies. It must also keep reporting useful for investors, stakeholders, and society.

For C-suite leaders, the message is clear. Simplification can improve reporting only if it preserves the information needed to manage risk and allocate capital. Europe’s next step will help determine whether sustainability disclosure becomes more coherent globally, or more fragmented.

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