5.3 International Standards and their Interoperability with the ESRS

Although the ESRS are the most comprehensive sustainability reporting standards, they are by no means the first to address the standardization and comparability of sustainability information. The first and still most widely used standard is the GRI Standard. The ESRS are most aligned with this standard. This is the result of close collaboration between the two organizations during the standard-setting process. In line with the ESRS requirements for applying a double materiality approach and considering existing standards, the definitions, policies, and disclosures in the ESRS and GRI are either fully aligned in terms of impact reporting or, where full alignment was not possible due to the CSRD mandate, closely coordinated. This high level of interoperability regarding impact reporting was officially recognized in a joint statement by GRI and EFRAG.

Another, more recent standard for climate reporting is the IFRS S1 and S2, developed by the International Sustainability Standards Board (ISSB). The ISSB Standards are based on the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) and incorporate existing frameworks such as the Carbon Disclosure Project (CDP) and the Sustainability Accounting Standards Board (SASB). There is a high degree of alignment between the climate-related disclosures in the ESRS and the ISSB Standards, with almost all ISSB climate-related disclosures being included in the ESRS. However, a fundamental difference lies in the concept of materiality. While the ESRS are based on the principle of double materiality, the ISSB only covers financial materiality.

According to an announcement in May, GRI and ISSB are working toward full interoperability. Other reporting standards and initiatives also promote interoperability. The Taskforce on Nature-related Financial Disclosures (TNFD), which focuses on reporting nature-related dependencies, impacts, risks, and opportunities, has published interoperability documents in recent months between its standard and the ESRS, ISSB, and GRI. Another example is the CDP, whose new comprehensive corporate questionnaire is already largely aligned with the ESRS.