GRI and ISSB Drive Sustainable Finance Through Strengthened Disclosures

NEW YORK, 5 December 2024 – The Global ​Reporting Initiative (GRI) and the International Council on Sustainability Standards (ISSB) are working together to revolutionize ​sustainability reports, laying the foundation for the Fourth United Nations International Conference on Financing for Development (FfD4) in Seville, Spain, in June 2025. This initiative aims to align global financial systems with ​sustainability objectives by improving communication ​mechanisms.

Double materiality: the ​cornerstone of effective reporting

The basis for this collaboration is the adoption of a ​”double materiality” approach to sustainability reporting, ​as described in the Elements document to guide the Df4 negotiations. This requires that organizations disseminate not only financial risks but also the environmental and social effects of their activities. According to the ERM, this dual approach ensures that companies ​provide an overall vision ​of their effects and possibilities, aligning with the ​Sustainable Development Goals (SDGs).

Global partnerships and policy promotion

ERM recently organized a side event with the United ​Nations ​Development Programme (UNDP) in New York to discuss ​the role of corporate reporting in ​sustainable financing. Key stakeholders, including the Global Impact Investment Network (GIIN) and DGSSI, stressed the ​importance of creating a unified global advocacy framework. This ​framework aims to provide clarity for investors and streamline ​business information practices, ultimately redirecting ​capital towards more sustainable results.

On the basis of established rules

The GRI-ISSB partnership reflects a broader trend towards harmonizing international sustainability standards. Sean Gilbert, Director of the GIIN Investment ​Network, highlighted the ​importance of using existing ​frameworks to effectively increase impact investments. “As we continue to focus ​on ​mobilizing capital to meet urgent global ​challenges, our collaboration with organizations like the CGE ensures integrity and effectiveness,” said ​Mr. ​Gilbert.

FfD4: A platform for transformative change

The FfD4 conference will be a key ​forum for promoting ​global sustainable financing mechanisms. Shari Spiegel, Director of Sustainable Development Finance, Department of Economic and Social Affairs, stressed the ​need for clear and interoperable policies. “FfD4 provides a timely opportunity to ​align sustainability mandates with governance, operations and supply chains,” said Spiegel. The conference will also examine reforms of the international financial system ​to better support investments aligned with the SDGs.

Role of public sector accounting

Transparency in the public sector is also essential ​for the 2030 agenda. Dave Warren, Director of the International Public Sector ​Accounting Standards Board (IPSASB), announced ​the development of new sustainability reporting standards ​(IPSASB SRS) tailored to the needs of the public sector. “By complying with ISSB and ​GRI standards, we are seeking to improve public sector disclosures by ​facilitating sustainable financial flows,” Warren ​explained.

Enhanced awareness initiatives through ERM and DGSIS are a key step in ​harmonizing global sustainability practices. With the FfD4 conference on ​the horizon, the alignment of public and private sector information standards promises ​to accelerate progress towards the SDGs, ensuring that no ​interested parties are left behind.