The CSRD is expected to have a larger scope than the current Non-Financial Reporting Directive, applying to all large or listed companies operating in the EU and seeking to bring sustainability reporting on a par with financial reporting.

Since its inception over 20 years ago GRI has supported the transition to mandatory sustainability reporting requirements, while freely providing sustainability standards that are widely and increasingly used by organisations voluntarily.

Key components of the CSRD:

• New EU sustainability reporting standards will be developed through a multi-stakeholder and transparent process, taking into consideration the GRI Standards and other reporting frameworks
• ‘Double materiality’ will be adopted, requiring public reporting on both sustainability factors affecting the company (financial materiality) and how the company impacts society and the environment (outward materiality)
• Reporting will be compulsory, with sustainability and financial information given ‘comparable status’, and a requirement that reported information should be audited and assured

Peter Paul van de Wijs, GRI Chief External Affairs Officer, said: “We are greatly encouraged that the European Commission is pressing ahead, at pace, with plans to significantly strengthen sustainability reporting in the EU. This legislation would introduce mandatory requirements for some 50,000 companies to disclose the full range of their impacts on people and planet, which is essential if the EU is to ensure meaningful progress in achieving the Green Deal.

The CSRD – which embraces multi-stakeholder, impact-focused reporting, positioning sustainability and financial reporting on an equal footing – closely aligns with the approach and scope of the GRI Standards, which are already voluntarily used by most large companies in Europe.

We look forward to working closely with EFRAG to co-design a sustainability reporting system that reflects the Commission’s ambitions for consistent and comparable reporting on corporate impacts, contributing to the next steps in the continued evolution of corporate reporting.”

78% of the world’s 250 largest companies report in accordance with the GRI Standards

References:

This article is based on published information by GRI. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the publication’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://www.globalreporting.org/about-gri/news-center/gri-backs-mandatory-eu-reporting-on-sustainability-impacts/

The post GRI backs mandatory EU reporting on sustainability impacts appeared first on SustainCase - Sustainability Magazine.

GRI, provider of the world’s leading standards for sustainability reporting, has expressed full support for the European Commission’s plans to revise the Non-Financial Reporting Directive (NFRD), for which a public consultation closed on 11 June.

This process sought views from all stakeholders on how to improve public reporting of sustainability information by companies to underpin the sustainable economy objectives of the EU Green Deal.

The European Commission has wisely committed to a green recovery plan for building back stronger from the COVID-19 pandemic. Corporate transparency on impacts and contributions to these sustainability goals is a cornerstone of this policy and will be implemented by the revisions to the NFRD.

The main points from GRI’s consultation response include:

• The European standards must leverage existing effective frameworks to minimize the burden on reporting companies. The GRI Standards are used by the majority of reporting companies in Europe.  GRI stands ready to apply its global expertise in sustainability reporting and standard setting to the EU process – and is willing to work closely with the Commission and other stakeholders (including other relevant standard setters) to ensure the outcome fits with global best practice for sustainability reporting.
• ‘Double materiality’ must be the foundational concept behind the EU non-financial reporting requirements. This means that companies identify, manage and report on both the sustainability issues that affect their own finances and those that impact society. The GRI Standards is the only sustainability disclosure standard that embodies this concept and provides a solid foundation on which to build the Commission’s objective.
• GRI recognizes the shortcomings in the implementation of the current NFRD. Under the revised directive, GRI calls for more reliable, complete and comparable disclosures. Only with an improved NFRD can all stakeholders in the EU rely on this information and use it toward the goal of advancing a sustainable economy.

Tim Mohin, GRI chief executive, said:

“Aligning capital to sustainable business practices is at the heart of the EU’s Green Deal. The European Commission has recognized that comprehensive and reliable sustainability reporting by companies is the foundation for a sustainable economy.

The process ahead of us, leading to the timely adoption of a much-improved EU disclosure system, will be intense and requires collaboration with established standard setters. GRI looks forward to cooperating with all stakeholders to reach a European solution with a global reach.”

Eric Hespenheide, chair of the GRI board, said:

“For more than 20 years GRI has provided leadership to help organizations understand and take accountability for their impacts – not just inwardly on the corporate bottom line, but also outwardly on the environment and society. Over that period, we have continued to evolve and grow, working with all stakeholders to achieve this aim. We are excited to continue the journey with partners in the EU.”

Judy Kuszewski, chair of the Global Sustainability Standards Board, the independent body within GRI’s governance responsible for setting the GRI Standards, added:

“The multi-stakeholder development process of the GRI Standards ensures that our standard setting is independent, robust and founded in the public interest. I believe these foundations strongly align with the European Commission’s aspiration for non-financial reporting.

I am confident that by working with the Commission and other stakeholders we can enable the effective reporting needed to unlock the benefits of corporate transparency – in Europe and further afield.”

In April, GRI also welcomed the latest commitments by the Commission and EU to achieving the European Green Deal, which is inclusive of a €1 trillion sustainable investment plan. The Commission’s adjusted Work Programme for 2020, published 27 May, detailed further actions on achieving a ‘sustainable, inclusive and fair’ recovery to the pandemic.

Download the response from GRI to the European Commission’s consultation on the revision of the NFRD

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

FBRH GRI Standards Certified & ISEP recognised Sustainability Course | Venue: London LSE

By registering for the next 2-day FBRH GRI Standards Certified & ISEP recognised course you will be taking the first step in gaining the many benefits of sustainability reporting.

Most importantly, you will gain the knowledge to use the GRI Standards, project manage your own first-class sustainability report and:

• Identify your most important impacts on the Environment, Economy and Society
• Begin taking solid, focused, all-round sustainability action ASAP

References:

This article is based on published information by GRI. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the publication’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://www.globalreporting.org/information/news-and-press-center/Pages/Strong-backing-for-EU-ambition-to-drive-transparency.aspx

The post Strong backing from GRI for EU ambition to drive transparency appeared first on SustainCase - Sustainability Magazine.

Global Reporting Initiative welcomes the European Green Deal as a global game changer that other economies should follow. With ambitious legislative changes backed by €1 trillion investment over the next decade, the EU is signalling leadership in efforts to advance sustainable development and tackle climate change.

European Commission Executive Vice-President Valdis Dombrovskis recently provided details on the implementation of the Green Deal Investment Plan – including strengthening sustainability reporting by companies. He set out that:

• The EU’s Non-Financial Reporting Directive is to be reviewed, with new requirements for companies to increase disclosures on sustainability risks and opportunities      
• The EU will establish “clear reporting standards” based on the “best and most widely accepted elements of what exists”
• The Green Deal has to be part of wider global efforts and funding commitments in order to “scale up sustainable finance at the level that the world needs”

GRI chief executive Tim Mohin said:

“Sustainable development is a singular and indisputable global priority. One important catalyst to a sustainable future is transparency: the ability for all stakeholders to evaluate the impacts and benefits of corporate activities. Sustainability disclosure was pioneered by GRI over twenty years ago and now is a fixture in nearly every multinational enterprise.

But more must be done. We are just ten years from the deadlines to achieve the Sustainable Development Goals and need to accelerate progress under the Paris Climate Agreement. I applaud the leadership shown by the European Commission, which is now moving with urgency by committing €1 trillion to fund the transition.

While the EU Non-Financial Reporting Directive has been successful, we believe reporting must improve. We stand ready to work with the EU to cooperate on these improvements, but we must not reinvent nor move backwards.

With these actions, the EU is providing leadership for the world. We need to support the global common language for reporting, backed by strong policy and oversight. This will unlock trade and investment that is aligned with sustainable development.”

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

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See upcoming training dates.

References:

This article is based on published information by GRI. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the publication’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://www.globalreporting.org/information/news-and-press-center/Pages/Sustainability-reporting-at-center-of-EUs-Green-Deal.aspx

The post Sustainability reporting at centre of EU’s 1 trillion euro Green Deal appeared first on SustainCase - Sustainability Magazine.