GRI Standards in the ESRS Era

The rise of mandatory sustainability reporting standards, such as the ESRS, marks a significant milestone in corporate transparency. However, this development raises an important question: what role remains for existing voluntary standards like the GRI, TCFD, and SASB?

The Continued Relevance of GRI

Despite the prominence of the European Sustainability Reporting Standards (ESRS), Global Reporting Initiative (GRI) and other voluntary standards continue to play a key role in the sustainability reporting landscape. Many companies, particularly those outside the European Union, still rely on these frameworks for their reporting needs. For example, the GRI framework remains the reporting standard of choice for 99% of registered companies in Singapore and is widely used in Brazil, India, and South Africa¹. However, this figure may change when the ISSB standards will be adopted by over half of the global economy², and as ESRS becomes mandatory across the EU. The first group of companies in scope for CSRD (large listed companies) will publish reports in 2025, large non-listed companies publish in 2026 and listed SMEs in 2027.

GRI’s Current Initiatives

GRI is currently developing 40-45 sector-specific standards, with four published this year and the remainder expected by 2026. These standards are designed to offer customised guidelines for various sectors. Although these GRI sector standards are voluntary, they can serve as valuable guidance or preparation before mandatory sector standards from ESRS or ISSB become available.

Additionally, GRI is actively collaborating with other standard setters such as EFRAG and ISSB. Recognising that these organisations are developing mandatory standards, GRI aims to ensure their work builds upon the GRI standards. This collaboration includes mapping GRI standards against ESRS³ and ISSB (S1 and S2)⁴, helping current GRI reporters understand the overlapping data points between these standards. Furthermore, the GRI Academy now provides an ESRS course to assist GRI reporters in reporting in line with ESRS, highlighting GRI's role in preparing and educating reporters for upcoming mandatory reporting requirements.

Moreover, GRI is focusing on expanding its efforts towards capacity building and enhancing knowledge of sustainability reporting. Initiatives such as the Sustainability Innovation Lab in Asia showcase GRI's commitment to fostering sustainability education and building expertise in sustainability reporting across the region.

Other Voluntary Reporting Standards

Recently there has been a movement towards consolidating voluntary reporting standards into more unified frameworks. For example, the TCFD organisation has been disbanded because it has fulfilled its purpose to develop and promote effective climate-related financial disclosures, and the framework has been absorbed by the ISSB, where ISSB S2 climate disclosure is largely based on TCFD. Most TCFD principles have also been integrated into ESRS climate disclosure requirements (E1). As a result, the TCFD framework is becoming less relevant over time because it has been incorporated into ISSB S2 and partially into ESRS. Meanwhile, the IFRS has taken over SASB, using its standards to shape the ISSB standards. However, it seems that the Sustainability Accounting Standards Board (SASB) standards will remain relevant longer as the ISSB encourages reporters to use the SASB standards to address topics beyond climate and identify sustainability-related risks and opportunities.

Conclusion

GRI is transitioning from being solely a global reporting standard setter to a knowledge and capacity-building hub for sustainability reporting. With this shift, the use of GRI may decrease in the future as mandatory standards like ESRS and ISSB take priority. However, GRI's contributions to education and capacity building will continue to support the sustainability reporting ecosystem.