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  • Studio Paci

🌐🤝EFRAG and GRI together for innovation in Sustainability Reporting

🔍 Historical Context and Importance of the Agreement

The agreement between EFRAG (European Financial Reporting Advisory Group) and GRI (Global Reporting Initiative) represents a significant breakthrough in the field of sustainability reporting.

After three years of collaboration, these organizations have renewed their commitment through a Memorandum of Understanding.

This agreement not only emphasizes the progress already achieved in aligning the European Sustainability Reporting Standards (ESRS) and GRI Standards but also underscores the intention to provide ongoing support to companies in this field.

🌐 Interoperability and Cooperation: A New Frontier

The focal point of this agreement is the GRI-ESRS interoperability index, a tool that demonstrates the integration between disclosure requirements and data from both standards.

Greater simplicity in reporting practices for companies is promoted by this synergy, which eliminates the need for duplication of reports and reduces the overall complexity of the process.

🚀 Key Areas of Collaboration and Development

The Memorandum covers a range of potential areas of cooperation, including

  • Joint Standard Development: Involving the creation of new industry standards and guidelines, along with proportional reporting for SMEs and non-EU companies.

  • Training and education: A strategy to recognize GRI as a training provider for ESRS, utilizing its educational and certification initiatives.

  • XBRL Taxonomy Interoperability: Aims to simplify the reporting system through the use of digital XBRL taxonomies.

🌟 Fundamental Principles for Effective Collaboration

Three fundamental principles emerge from this new phase of cooperation:

  1. Enhancing Data Quality: Companies benefit from collecting high-quality data regarding their positive and negative impacts.

  2. Transparency and Credibility: Standardized and comparable information is beneficial for all stakeholders, including investors.

  3. Interoperability Efficiency: A commitment to optimizing interoperability between global and European standards to minimize the reporting burden.

🔎 Additional Considerations

According to recent studies and analyses in the sustainability sector, the alignment of reporting standards is crucial to ensure transparency and consistency in sustainability information provided by companies.

This agreement between EFRAG and GRI represents a significant step towards achieving a more integrated and cohesive reporting framework, which can help companies navigate the sustainability reporting landscape better and communicate their environmental and social impacts more effectively.

In conclusion, this new Memorandum not only strengthens the existing collaboration between EFRAG and GRI but also lays the foundation for future innovations in the field of sustainability reporting.

With a focus on data quality, information standardization, and interoperability efficiency, this agreement marks a significant milestone in the journey towards a more sustainable and transparent future in the business world.


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