The European Financial Reporting Advisory Group (EFRAG) and the Global Reporting Initiative (GRI) have taken a significant step towards the standardization of impact reporting. In a joint announcement, they declared the interoperability of their respective reporting standards. The move will streamline the reporting procedure for companies accountable to both reporting structures, allowing them to sidestep the necessity to report separately under each scheme.
This cooperative venture between the two entities represents a meaningful progress towards the harmonization of global impact reporting practices. The newfound interoperability between their standards will not only reduce the administrative load for multinational corporations, but also ensure that global reporting remains consistent and comparable.
The declaration follows an extensive period of collaborative examination of the two reporting frameworks by EFRAG and GRI. Their joint report underscored the importance of having robust, comparable, and interoperable reporting mechanisms to provide responsible and transparent accounting of a corporations’ social and environmental impacts.
This is undeniably a significant step forward in effective corporate reporting and further reinforces the role of these frameworks in guiding companies to a more sustainable future. The interoperability will ease the complexity associated with maintaining compliance across multiple reporting frameworks
For legal professionals, this development has several implications. The legal framework surrounding corporate sustainability reporting is becoming increasingly complex, and it’s vital to stay informed about changes to the landscape. Navigate to the original report for a comprehensive overview of the joint statement and the possible effects of the new interoperable standards on corporates across the globe.