GRI responds to IFRS Foundation’s creation of a new sustainability board and consolidation of CDSB and VRF into the foundation
GRI has applauded the IFRS Foundation’s announcement that, through the setting up of an International Sustainability Standards Board (ISSB), they will address the impacts of sustainability topics on value creation within their standards.
On the 3rd of November, the IFRS Foundation announced their intention to set out the new ISSB development of a ‘global baseline’ for investor-focused sustainability disclosures. In the meanwhile, a prototype climate disclosure has been published. Additionally, news coming out mentions that the Climate Disclosure Standards Board (CDSB) and the Value Reporting Foundation (VRF, comprising of IIRC and SASB) are to merge under the IFRS.
“GRI is pleased that the IFRS Foundation has recognized the merits of incorporating sustainability considerations into financial disclosures, through the creation of a sustainability standards board. We also welcome that the reporting organizations with a core focus on investors needs are to come together under one house.
We advocate for a comprehensive corporate reporting system, with a two-pillar structure in which robust sustainability and financial reporting are on an equal footing. The sustainability pillar, under which GRI sits, addresses a company’s external impacts on society and the environment, while the financial pillar needs to reflect sustainability risks to a company’s value. Today’s announcement marks a significant step towards strengthening that second pillar.
Disclosure on a company’s financially material sustainability topics – while important from the context of helping markets to assess opportunities and risks – is not sufficient to deliver full transparency on sustainability impacts, as envisioned by the GRI Standards and embraced by the EU.
Corporate transparency that meets the needs of all stakeholders requires improved connectivity between sustainability and financial reporting. I therefore reiterate once again that GRI stands ready to engage with the IFRS Foundation in support of this aim. We look forward to hearing more about the remit and scope of their new ventures, as well as inputting to the development of the proposed climate standard.”Eric Hespenheide, Interim CEO of GRI,
The Statement of Cooperation between GRI and the European Financial Reporting Advisory Groupclearly depictsthat the two organizations are presently collaborating in order to co-construct new EU sustainability reporting standards, with the aim of playing a part in further global convergence.
GRI frequently collaborates with a wide range of organizations – such as standard setters, disclosure frameworks, reporting initiatives and other partners – to assist in the alignment and strengthening toenhance corporate accountability.