• IFRS Foundation and GRI reaffirmed plans to align common disclosures across ISSB and GRI sustainability standards.
• The work targets duplication, fragmentation and reporting complexity for companies using both investor-focused and impact-focused frameworks.
• Priority areas include climate, nature, sector standards, human capital and labor-related disclosures.

Standard Setters Move To Reduce Reporting Complexity

London and Amsterdam are moving closer on sustainability reporting, as the IFRS Foundation and the Global Reporting Initiative expand their collaboration to align key disclosures across their global standards.

The two organizations issued a new joint statement reaffirming their commitment to a more seamless sustainability reporting system. The work focuses on the standards set by GRI’s Global Sustainability Standards Board and the IFRS Foundation’s International Sustainability Standards Board.

For companies, the announcement speaks to a core frustration in ESG reporting. Many large groups must meet investor demands for financially material sustainability data. At the same time, they face pressure from regulators, civil society, employees and customers to disclose broader impacts on people, the economy and the environment.

The joint statement aims to make that process more efficient. It identifies common disclosures where the same information can meet the distinct purposes of both GRI and ISSB standards.

Common Climate Disclosures Offer A Practical Starting Point

The alignment work builds on a collaboration that began in 2022. In 2024, the organizations expanded that work with a focus on reducing duplication, fragmentation and complexity for both companies and reporting users.

Climate reporting is already one of the clearest areas of overlap.

The statement notes that companies reporting under IFRS S2 can measure Scope 1, Scope 2 and Scope 3 greenhouse gas emissions using the GHG Protocol standard. That approach can also help meet corresponding requirements under GRI’s climate change standard, GRI 102.

That matters for reporting teams, boards and audit committees. Emissions data now sits at the center of investor analysis, transition planning and regulatory disclosure. However, the same data can also inform wider assessments of corporate impact, supply chain exposure and climate accountability.

The two frameworks still serve different mandates. ISSB standards focus on sustainability-related risks and opportunities that could affect enterprise value. GRI standards focus on an organization’s most significant impacts on the economy, environment and people.

That distinction remains important. The new statement does not merge the frameworks. Instead, it sets out how they can work together with less duplication.

Complementary Standards For Different Users

The ISSB was launched in November 2021 to develop IFRS Sustainability Disclosure Standards. Its first standards, IFRS S1 and IFRS S2, were released in June 2023. They focus on general sustainability disclosure and climate-related disclosure for investors.

GRI standards are among the most widely used global sustainability reporting standards. They support disclosure on corporate impacts and contributions to sustainable development.

The organizations said the standards can provide complementary information. For example, GRI 102 includes disclosures on the impacts of transition plans and climate adaptation. Those disclosures can add context to IFRS S2’s focus on risks and opportunities.

This is especially relevant for investors with mandates that go beyond financial return alone. It also matters for companies operating across markets where regulators, lenders and stakeholders use different reporting expectations.

For executives, the message is clear. Reporting architecture is becoming more connected, but companies still need governance systems that can serve multiple users of sustainability data.

Nature, Sectors And Human Capital Come Next

The collaboration will now extend across several fast-moving areas of corporate disclosure.

The organizations pointed to the ISSB’s work on nature-related disclosures and the ongoing interoperability work between GRI and the Taskforce on Nature-related Financial Disclosures. They also highlighted GRI sector standards and the ISSB’s work to enhance sector-focused SASB Standards.

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Human capital is another priority. The ISSB is researching human capital disclosures, while GRI is revising its labor-related standards and disclosures.

These areas carry growing financial and ESG risk. Nature loss, workforce practices and sector-specific transition exposure are moving higher on board agendas. They are also becoming more material to investors assessing long-term resilience.

The statement followed a meeting between ISSB Chair Emmanuel Faber and GSSB Chair Susanne Stormer last week.

Stormer said: “I see the role of standard-setters as enabling organizations anywhere to determine what to disclose, for which purpose and audience, so they can report data that is meaningful, consistent and comparable. The commitment by GRI and the IFRS Foundation to facilitate efficient sustainability disclosures can support that aim, and I look forward to expanding our collaboration with the ISSB.”

Faber said: “It was a pleasure to have a first substantial meeting with Susanne to discuss and advance our shared commitment to facilitate more efficient reporting. Our ongoing work will deliver tangible benefits for entities that use both GRI and ISSB Standards.”

What Executives Should Take From The Statement

The development gives companies a clearer path to using both standards without building separate reporting systems from scratch.

For boards, the priority is governance. Sustainability data must be decision-useful, consistent and tied to internal controls. For finance teams, the issue is efficiency. Reporting duplication adds cost and risk. For investors, the alignment improves comparability while preserving access to broader impact information.

The larger significance is global. As sustainability reporting rules spread across markets, interoperability will shape how companies manage disclosure burdens. IFRS and GRI are not erasing the difference between financial materiality and impact reporting. They are making it easier for companies to report both with greater discipline.

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