The European Financial Reporting Advisory Group (EFRAG) and the Global Reporting Initiative (GRI) have revealed that they have achieved a high level of interoperability between the European Sustainability Reporting Standards (ESRS) and the GRI Standards, eliminating the need for double reporting.

In a September 5 announcement, the groups stated that such a level of interoperability will reduce the sustainability disclosure burden for many companies, avoiding the need for double reporting.

“This is great news for businesses and for GRI reporters,” said GRI CEO Eelco van der Enden. “They can use their current reporting practices to prepare for the new requirements under ESRS. What is more, ESRS reporters… have the possibility to report on additional topics not covered by the ESRS in accordance with GRI Standards.”

The ESRS is a set of rules and requirements for companies to report on sustainability-related impacts, opportunities and risks developed under the EU Corporate Sustainability Reporting Directive (CSRD).

The CSRD, which is set to come into effect from January 2024, will introduce more detailed reporting requirements on company impacts on the environment and human rights. It includes a requirement to adopt a double materiality approach and to take account of existing standards.

“The next step [is to collaborate] with EFRAG on the development of an interoperable digital taxonomy and multi-tagging system, including a full mapping of the GRI Standards and the ESRS,” concluded van der Enden. “This further reinforces the relevance of GRI and the critical importance of combining its global approach with the momentum demonstrated at jurisdictional level.”

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