Advancing Collaboration: Progress in the GRI and EFRAG Partnership

The Global Reporting Initiative (GRI) and the European Financial Reporting Advisory Group (EFRAG) have introduced the GRI-ESRS Interoperability Index to help organisations align their sustainability reporting practices. This tool is designed to bridge the GRI Standards with the European Sustainability Reporting Standards (ESRS), offering a clear pathway for compliance while reducing reporting redundancies.

Explore the document to streamline your sustainability reporting processes:

The official GRI-ESRS Interoperability Index, November 2024

Purpose and Benefits of the Interoperability Index

The Interoperability Index serves as a practical resource for entities preparing sustainability reports. It outlines the relationships between GRI Standards’ disclosures and ESRS requirements. This ensures entities can efficiently address overlapping areas, minimising the need for duplicate disclosures.

The Index offers several key advantages:

  1. Simplifies reporting processes by identifying overlaps between the two standards;
  2. Supports organisations in ensuring compliance with EU regulations.
  3. Reduces complexity for entities transitioning to ESRS while maintaining alignment with GRI Standards.

Structure and Usage of the Index

The Index is structured to facilitate its application by organisations:

  • It maps GRI Standards’ required datapoints to corresponding ESRS disclosure requirements;
  • It highlights differences between the two frameworks, categorised into granularity, scope, and definition;
  • Instances where GRI disclosures are not covered by ESRS are specifically noted, enabling organisations to address any gaps.

Addressing Differences and Ensuring Compliance

While the Index highlights differences at the datapoint level, it assures that these variations do not hinder entities from claiming to report “with reference” to GRI Standards. Partial coverage of GRI disclosures is clearly identified, allowing preparers to integrate additional information where necessary. For organisations reporting “in accordance” with GRI Standards, the Index identifies any additional requirements beyond the ESRS framework that must be included in their sustainability statements.

Digital Taxonomy Alignment

To further streamline reporting, EFRAG and GRI are collaborating on a digital correspondence table. This initiative aligns digital taxonomies for ESRS and GRI Standards, offering:

  • Cross-referenced disclosures for more efficient digital reporting.
  • Greater consistency in sustainability data presentation.
  • Simplified transitions to digital platforms for reporting entities.

Implications for Sustainability Reporting

The introduction of the Interoperability Index underscores the significant progress in aligning global and regional sustainability standards. By reducing redundancies and clarifying compliance requirements, this tool empowers organisations to meet the demands of the Corporate Sustainability Reporting Directive (CSRD) while maintaining adherence to GRI Standards.

From January 2024, the ESRS framework will apply to more than 42,000 organisations, making tools like the Interoperability Index essential for managing complex reporting requirements effectively.