A collaboration between The IFRS foundation and Global Reporting Initiative (GRI) was announced on 24 March 2022. They signed a memorandum of understanding, that will see their standard-setting bodies - The International Sustainability Standards Board (ISSB) and The Global Sustainability Standards Board (GSSB) coordinate their standard-setting activities. Similarly, matters relating to sustainability disclosure or reporting will be addressed jointly.
Prior to this collaboration, ISSB was mainly concerned with investor-focused capital market standards while GSSB was concerned with formulating sustainability reporting requirements tailored to meet multi-stakeholder needs. Through this interconnected approach to sustainability reporting and disclosures, ISSB and GSSB will work together to formulate standards with two pillars; the first pillar focusing on investor-focused standards and the second pillar concentrating on standards that help meet multi-stakeholder needs.
This MoU was signed because both bodies understood there is a need to consolidate standards such that investor-focused sustainability information are combined with information intended to serve the needs of a broader range of stakeholders for a greater impact. Combining both classes of information ensures the information provided will be comprehensive and compatible.
At Mazars, we believe this is a significant development in ESG and Sustainability Reporting. It is a major step towards convergence of the reporting landscape, that is, ISSB and GSSB. The aligned standards will help deliver an all-round transparent sustainability report that is comprehensive, reliable, and relevant to our clients and other stakeholders around the world. Globally unified standards that help with reporting and disclosures of all matters relating to sustainability are shaping the future of the corporate sustainability reporting landscape.