© GRI 2024

CONTENTS
1. What do the European Sustainability Reporting Standards (ESRS) under the
Corporate Sustainability Reporting Directive (CSRD) mean for the relevance of
the GRI Standards? ............................................................................................... p3

2. How has alignment between the ESRS and the GRI Standards been achieved? p3
3. What resources are available to help organizations utilize current GRI reporting
to meet the new ESRS requirements? .................................................................. p4

4. What additional support is under development and can be expected soon?..... p4
5. How will continued alignment between the GRI Standards and the ESRS be
secured? ................................................................................................................ p5

6. How does alignment between the GRI Standards and the ESRS contributetowards a well-functioning global reporting system? ......................................... p5

7. How are perceptions over double reporting and excessive reporting burden
being addressed? .................................................................................................. p5

8. What are the main differences between the GRI Standards and the ESRS? ...... p6
9. How does the ESRS relate to GRI engagement with the IFRS Foundation’sInternational Sustainability Standards Board (ISSB)? ......................................... p6

10. How do the different approaches to materiality used in the ESRS, GRI Standards
and ISSB standards fit together? .......................................................................... p7

11. My organization is not based in the EU. Does the CSRD affect me, and if so, howwill reporting with the GRI Standards help? ........................................................ p7

12. What does the CSRD mean for the assurance of sustainability reporting data? p8
13. When will the CSRD and use of the ESRS apply to my organization? ................ p8

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1. What do the European Sustainability Reporting Standards (ESRS)
under the Corporate Sustainability Reporting Directive (CSRD) mean
for the relevance of the GRI Standards?
Strong alignment has already been achieved between the GRI Standards andthe ESRS. This means GRI reporting is highly relevant for companies seeking
to comply with the impact reporting requirements of the ESRS – both now
and in the future.
As has been acknowledged by both GRI and EFRAG – the body mandated tocreate the ESRS – high interoperability has been achieved between the ESRS
and the GRI Standards, in relation to impact reporting. This follows significant
collaboration on standard-setting activities between the two organizations. Fifty
thousand companies comprehensively disclosing their impacts through GRIaligned reporting that is aligned with the GRI Standards will be a huge
milestone for GRI in Europe.
For companies in the EU market, the CSRD increases the relevance of GRI
reporting. Most large companies, in the EU and elsewhere, already report with
GRI, thus making it easy for those companies to also report using the ESRS. And
given GRI and EFRAG’s continued collaboration, GRI reporters can be assured
they will be best prepared to meet future reporting rules, as further EU
standards are developed. Where the ESRS does not cover a topic or sector,
companies can use the appropriate GRI Standard to meet ESRS reporting
requirements.

2. How has alignment between the ESRS and the GRI Standards beenachieved?
EFRAG and GRI have worked together to share technical expertise and coconstruct the first set of ESRS. Definitions, concepts and disclosures in the
ESRS are aligned as much as possible with those already used in the GRI
Standards.
EFRAG has adopted the same definition for impact materiality as GRI andleveraged GRI’s expertise in creating the ESRS. At the outset, the European
Commission required EFRAG to build the European standards to the “greatest
extent possible” on existing reporting standards. In response GRI and EFRAG
signed a first Memorandum of Understanding in 2021, under which both parties
collaborated on developing the ESRS, which included joining each other’s
technical expert groups and aligning standard-setting activities.
GRI reporters benefit from the interoperability with the ESRS. Other reporters
disclosing under the ESRS and producing a GRI content index will be considered
as reporting ‘with reference’ to the GRI Standards, increasing the global
relevance and usage of their report.

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3. What resources are available to help organizations utilize current
GRI reporting to meet the new ESRS requirements?
Interoperability and mapping tools have been published to assist GRI
reporters in preparing for a first ESRS report. A GRI Academy course isalready available to explain the CSRD and associated disclosure
requirements, while a new linkage reporting service has been launched.
Joint interoperability Index and data point mapping have been published,which show how the two sets of standards relate. This confirms the high degreeof harmonization achieved in relation to impact reporting.
Training on the ESRS is available through the GRI Academy which includes
the courses Introduction to the CSRD and Reporting with the ESRS and
Unlocking the ESRS for GRI Reporters.
A new GRI-ESRS Linkage Service launched in June, to provide advice andfeedback to companies on how to align sustainability reports based on the GRI
Standards with the ESRS requirements.
Launched in May by GRI, CSRD Rapporteur and MEP Pascal Durand, and the
Lefebvre – Sarrut Group, the CSRD Essentials briefing series covers key topics
on implementation of the new EU directive.

4. What additional support can be expected soon?
GRI and EFRAG are continuing to collaborate, with a key focus on delivering
education and training for report preparers and other users. This will include
further courses as well as XBRL digital reporting taxonomies.
The second GRI-EFRAG MoU has a key focus on training and capacity
building. Adding to existing training on the GRI Academy, a new series ofcourses – which together will form an ESRS Professional Certification Program –are being made available throughout the second half of 2024.
GRI and EFRAG are also collaborating in the development of XBRL digitaltaxonomies for their respective standards. GRI is committed to providing a digitalcorrespondence table that will link data points between both standards, tosupport companies to file their reports and leverage the data collection already inplace for their GRI based report.

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5. How will continued alignment between the GRI Standards and the
ESRS be secured?
GRI and EFRAG are deepening engagement on standards development,
including standards on sectors and for companies outside the EU. New
workstreams will deliver practical resources for companies and information
users.
The MoU substantiates the benefits of the alignment already achieved
between the ESRS and the GRI Standards and commits both organizations tocontinue working together to support reporting companies.
The EU endeavors to develop at least eight sectoral standards by June 2026 –which will build on GRI’s Sector Standards. GRI and EFRAG will alsocollaborate on standards for non-EU companies in the scope of CSRD. The
delivery of sector-specific standards depends on support of the EU Member
States and the newly-elected MEPs.

6. How does alignment between the GRI Standards and the ESRS
contribute towards a well-functioning global reporting system?
The EFRAG collaboration is an important part of GRI’s wider engagementwith standard setters and regulators around the world, to drive global
momentum behind impact reporting that is underpinned by the GRI
Standards.
The close cooperation between GRI and EFRAG on sustainability reporting in the
EU is an important example of how GRI actively engages with standard settersaround the world, to ensure reporting on impacts that meets multistakeholder
needs.
At national, regional and international levels, GRI has a growing and evolving
role as a trusted partner for regulators and capital markets, with GRI
reporting underpinning other disclosure requirements. Over 260 policies in 85
countries or regions reference or require the use of the GRI Standards, whilesome 14,000 organizations around the world are GRI reporters.

7. How are perceptions over double reporting and excessive reporting
burden being addressed?
Interoperability between GRI and the ESRS prevents the need for double
reporting and supports a user-friendly reporting system. Companies canleverage their existing GRI reporting processes and practices to meet andcomplement requirements under the CSRD.
The widely used GRI Standards form a bridge to reporting requirements injurisdictions around the world. Thanks to alignment with GRI, for many
regionally set standards – such as the ESRS – companies only have to collect

Page 5 of 9data once based on the GRI Standards and use it for multiple disclosure
needs.
The CSRD mandate is to avoid a disproportionate reporting burden and takeaccount of existing global sustainability reporting standards. The alignment of the
ESRS with the GRI Standards is the direct result of that mandate. The work tocreate aligned digital taxonomies will further streamline GRI and ESRS reporting
effort.

8. What are the main differences between the GRI Standards andthe ESRS?
GRI has 40 Standards – Universal, Topic and Sector – on the fullsustainability spectrum, whereas the ESRS so far has two general and 10
topic standards. While the GRI Standards and ESRS both focus on theimpacts of a company’s activities on the world, the ESRS also encompasses
how sustainability topics relate to the financial health of a company.
As confirmed in EFRAG’s implementation guidance, a materiality assessment
using the GRI Universal Standards is an excellent basis for assessing of
impacts under the ESRS. The new work on sector standards will further
reinforce alignment between GRI and ESRS reporting.
The ESRS requires companies to report on all their material impacts, risks andopportunities. In cases where topics or impacts aren’t covered in full by the ESRS
(for example, tax or sector-specific standards), companies can use theappropriate GRI Standard to fill any gaps and comply with EU requirements.

9. How does the ESRS relate to GRI engagement with the International
Sustainability Standards Board (ISSB)?
Alongside GRI’s work with EFRAG on EU standards, we continue to engage
with the ISSB on the new IFRS Sustainability Disclosure Standards. This
collaboration reflects a shared recognition of the benefits to all stakeholders
of a core set of common disclosures and terminology, to equally address
impacts as well as financial risks and opportunities.
Since 2022, GRI and the IFRS Foundation have been working together under theshared understanding of the equal importance of reporting on the impacts of acompany on the world (GRI Standards) and impact of the world on thecompany (ISSB Standards). A deepening of the collaboration, announced in
May 2024, seeks to ensure a seamless, global and comprehensive
sustainability reporting system, in response to the needs of both investors andother stakeholders.
An important consideration is for this system to be complemented, as needed, by
jurisdictional reporting requirements – reflecting the regional and local context,
legal frameworks and ambitions. The ESRS are a good example of how this canbe effectively achieved.

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10. How do the different approaches to materiality used in the ESRS,GRI Standards and ISSB standards fit together?
The CSRD has embraced a double materiality perspective, requiring
companies to report not only on risks and opportunities for the business but
also on their impacts on the wider world. The GRI Standards address impact
materiality on all sustainability issues to meet the needs of all stakeholders,
while the IFRS Sustainability Disclosure Standards focus on financiallymaterial information for investors.
The CSRD explicitly allows for the recognition of equivalent reporting
standards set by other jurisdictions. Therefore, the European Commission
could acknowledge compliance to the EU rules through the use of equivalent
standards – such as those set by GRI and the ISSB. If such standards aremandated at a local level, companies would be able to use a combination of GRI
and ISSB based reports to meet the CSRD requirements. This could prove
beneficial for numerous companies and groups affected by the CSRD's
extraterritorial reach.

11. My organization is not based in the EU. Does the CSRD affect me,
and if so, how will reporting with the GRI Standards help?
The CSRD will be extended from 2028 to include large companies outside
the EU with EU operations or subsidiaries. Companies already reporting with
the GRI Standards will be best positioned to comply with ESRS
requirements.
The CSRD disclosure requirements apply to an estimated 42,500 companies
in the EU, which are defined as exceeding two of the following criteria: €50
million in net turnover; €25 million on the balance sheet; and 250 or more
employees. All companies listed on European stock exchanges, with exception of
micro-firms, are also in scope.
From 2028, the CSRD will also apply to non-EU companies with a turnover above€150 million in the EU and an EU branch office with a turnover of at least €40
million, or a large or listed EU subsidiary. These companies will only have tosupply impact-related information, for which a special standard will be developed.
GRI is advocating for the acceptance of equivalences between the EU
reporting regime and that of jurisdictions that have mandated GRI
standards.
Given EFRAG’s commitment to align the ESRS as closely as possible with the GRI
Standards, companies around the world that already reports with GRI will be
best positioned to be ready for future CSRD compliance.

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12. What does the CSRD mean for the assurance of sustainability
reporting data?
The CSRD introduces mandatory limited assurance with increased
requirements to come later. GRI is a strong advocate for assurance, as thisbuilds trust in sustainability reporting, addresses perceptions ofgreenwashing and enhances usability of the data.
Under the CSRD, the European Commission has introduced a mandatory
requirement for ‘limited assurance’ of sustainability reporting, which is now
in effect. They also intend to move to ‘reasonable assurance’ requirements from2028.
GRI reporting is subject to external assurance more often than that of any
other sustainability reporting framework (according to a recent study by theIFAC). This offers further confirmation that reporting data using the GRI
Standards will support companies in meeting their ESRS disclosure needs.

13. When will the CSRD and use of the ESRS apply to my organization?
••••

2024: Large listed public-interest entities with more than 500 employees
included under the previous Non-Financial Reporting Directive (NFRD) rules
2025: Other large EU companies now covered under the CSRD
2026: Listed SMEs (two year ‘opt-out’ period until 2028)
2028: Non-EU companies with branches or subsidiaries in the EU and a net
turnover of more than €150 million on the EU market

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Disclaimer: The information in this publication was compiled and published by GRI in July 2024. It
is intended as guidance only and does not constitute financial or legal advice.

globalreporting.org

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