Global Reporting Initiative calls for CSRD ambition to be upheld

The Global Reporting Initiative (GRI) has called on EU institutions and member states to uphold the ambition of the Corporate Sustainability Reporting Directive (CSRD). GRI said it understands the desire of the European Commission to simplify disclosure rules for companies and reduce reporting burden, but said this needs to be balanced with the need for improved corporate data on the environmental and social priorities of the EU and member states. “Significant changes to the CSRD contents and scope would undermine these aims, failing to deliver the level playing field needed to achieve sustainable growth and drive innovation… The benchmark for success should be a discernible improvement in corporate reporting and information for all stakeholders, including providers of capital.” GRI said the European Commission’s legislative ‘Omnibus’ raises questions for companies on what their EU disclosure requirements will be, given significant expected changes to the CSRD. It said the changes to CSRD mean some companies can now expect reduced mandatory EU sustainability disclosure in the future, while other companies getting ready for CSRD compliance are no longer in scope. “However, irrespective of the legislative changes, it is worth remembering there is already a high level of voluntary sustainability reporting by companies in Europe. Indeed, in announcing the Omnibus, the Commission emphasised that companies can still file a sustainability statement on a voluntary basis,” said GRI. In response to the changes to CSRD, GRI has published an updated Q&A on the CSRD, highlighting how GRI will engage with EFRAG as the European Sustainability Reporting Standards (ESRS) are revised, ensuring continued close alignment, as well as the benefits of companies using GRI’s comprehensive set of sustainability standards, to fully address impact reporting as part of a ‘double materiality’ approach. The Q&A also covers the differences and synergies between reporting using the GRI Standards, the ESRS and the IFRS Sustainability Disclosure Standards, supporting moves towards a global corporate reporting system. On the issue of double materiality reporting, GRI noted that the European Commission has stressed that the principle of double materiality has been retained as a key feature of the CSRD, recognising the strategic importance of transparency about the impacts of a company on the environment and society. Mario Abela, director, GRI Standards, said: “It is understandable that the changes to the CSRD are creating some uncertainty for companies operating in the EU in terms of how they approach sustainability reporting. However, companies can be reassured that using the GRI Standards as part of a global reporting strategy helps streamline the disclosure process.” He added: “We will continue to collaborate with EFRAG as the ESRS is revised, to seek closer alignment with the GRI Standards. For those companies that are already required to report under the CSRD, GRI has a wide range of services and support available, which we will keep up to date once the final outcome of the Omnibus process is known.”

Global Reporting Initiative calls for CSRD ambition to be upheld

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Read Next

BIBA wants time limit on key disclosure requirements

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