As a basis for current sustainability reporting standards, the GRI Standards are the most widely used in the world, with 73% of the top 250 global companies either complying or referring to them.

In light of the ESRS becoming law, companies that currently report using the GRI Standard will need to prepare for the transition to the ESRS; How different are the ESRS requirements from GRI? What kind of preparation for that? as well as for those companies that do not yet conduct reporting disclosure.

This article, the second in a series on CSRD/ESRS, focuses on the consistency and differences between ESRS and GRI (FYR: first article).

※The CSRD/ESRS has been formally adopted by the EC on the 31st of July 2023.
Read more here.

You can get a CSRD/ESRS Guidebook, which has been compiled from the series of articles. Sign up here!

Mapping of ESRS and GRI

GRI has been actively involved in developing the ESRS in cooperation with EFRAG since its early stages. The focus has been ensuring interoperability between the two standards and minimizing reporting burdens and challenges for companies.

Companies already reporting following GRI compared to other standards will be able to transition to the ESRS more reasonably and quickly to ESRS requirements soon. Those not following GRI should be able to follow GRI and start preparing as soon as possible.

GRI provided an “Interoperability Index” between ESRS and GRI on how to meet the ESRS requirements, as of 30th of Nov, 2023.

Consistencies of ESRS and GRI

Companies following GRI will be able to use their existing reporting processes and disclosure practices to integrate the requirements of the ESRS. 

Topics, themes and some indicatorsESRS:
Consists of 12 criteria in four themes: general principles, environment, society, and governance.
GRI:
Consists of General Principles (GRI 1-3) and Environmental, Economic, and Social (200-400) themes.
Importance of materiality analysis AssessmentBoth standards report on the premise of materiality identification and assessment.
Necessary data management and collection processesBoth standards require management and collection processes for data related to the required items to comply with the standards.
Stakeholder engagement processesBoth standards require input or feedback on conclusions regarding significant impacts, risks, and opportunities through dialogue with affected stakeholders.

Differencies of ESRS and GRI

Differences itemsESRSGRI
MaterialityDouble materiality:
Financial Materiality and Impact Materiality are the criteria.
Analysis at all levels (thematic, individual impact, indicators).



(ESRS 1 P7>3.3)(Link: Commission adoption>Annex – C(2023)5303>245pages)
Impact materiality:
the environmental and social impact, is the criteria.

Analysis at the thematic level recommended (e.g., climate change, occupational health and safety).
Failure to disclosure informationDisclosure may be withheld only if it would undermine the business position.

Recommended to provide data or estimates of information if the company cannot collect necessary information from upstream and downstream in the value chain.

(ESRS 1 P12>5.2)(Link: Commission adoption>Annex – C(2023)5303>245pages
Include an explanation as “Not applicable” 
“Legal prohibitions” “Confidentiality constraints” or “Information unavailable.”

In case of the company can not collect necessary information from upstream and downstream in the value chain, are allowed.
Definition of short-, medium- and long-term for reporting purposesAt the end of the reporting period, the following conditions should be met: Short-term (the period adopted as the reporting period in the financial statements), 
Medium-term (up to 5 years from the end of the short-term period), and Long-term (more than 5 years)

(ESRS 1 P13>6.4)(Link: Commission adoption>Annex – C(2023)5303>245pages
Not requirement

Thus, the difference between ESRS and GRI standards lies in the reporting method and approach rather than the detailed indicators. 

In general, the ESRS has more detailed and stricter requirements than the GRI because it is legally binding on companies, and many of the requirements that are optional in the GRI are mandatory in the ESRS.

For companies not using GRI or at reference level – how to take advantage of GRI compliance level

For the main listed SMEs that do not currently undertake sustainability reporting, using the GRI now will help them to assess its usefulness in anticipation of the ESRS.

For larger companies that use the GRI, it can be seamlessly integrated into their existing disclosure processes.

In other words, companies that are not currently using the GRI or are at a reference level are encouraged to start using the GRI 2021 now and aim for a level of compliance where possible.

When implementing the Double Materiality Assessment, following the focus in GRI 3 on “understanding actual and potential negative impacts on the environment and people, and identifying negative impacts according to their scope, scale and irremediable character” will already bring you to about 50% compliance with the ESRS.

When using the ESRS and GRI mapping table above, the interoperability between GRI and ESRS can be used in the following specific points.

  • Use the mapping table to understand the current state of disclosure
  • Recognise the level of GRI compliance based on the understanding that there is interoperability between GRI, which is a voluntary disclosure, and ESRS, which is a legal disclosure
  • Re-read GRI 3: Materiality Topics 2021, especially when conducting a double materiality assessment, to understand the actual and potential negative impacts on the environment and people, and identify negative impacts by their severity in terms of scope, scale and irremediable character.
  • Only materiality items identified are included in the GRI Content Index (i.e. not all the benchmarks in the Topic standard are required). However, non-materiality items may be included in the report content.

In the next article, we outline specific preparation by scope application.

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