Interoperability
In its standard setting activities EFRAG endeavours to avoid double reporting for those ESRS companies that also wish to apply IFRS Sustainability Standards (IFRS SS) and GRI standards. For this purpose, continuous bilateral dialogue is in place with the ISSB and GRI.
At the request of the EC as well as in appropriate international circles, EFRAG may contribute to technical discussions with other jurisdictions regarding the interoperability of sustainability reporting requirements. EFRAG is also monitoring other relevant reporting initiatives that are likely to play a role in fostering a global unified approach to a specific topic, such as the TNFD Framework for Nature. If required, EFRAG may address interoperability issues as part of its practical implementation guidance.
ISSB
EFRAG and the ISSB is also continuing its work on interoperability between the SASB standards that form part of IFRS S1 and S2 and the EFRAG sector-specific standards. This is also true of the ISSB new topical standard-setting projects and ESRS set 1.
2 May 2024
The IFRS Foundation and EFRAG have published guidance material to illustrate the high level of alignment achieved between the International Sustainability Standards Board's IFRS Sustainability Disclosure Standards and the European Sustainability Reporting Standards (ESRS) and how a company can apply both sets of standards, including detailed analysis of the alignment in climate-related disclosures. Having first worked during the development of the ISSB Standards and ESRS to deliver a high degree of alignment, today's publication now provides practical support that explains how companies can efficiently comply with both sets of standards.
Download the guidance material.
Download the press release.
23 August 2023
EFRAG published for its SRB meeting of 23 August 2023, its assessment of the interoperability between ESRS 2 General Disclosures and ESRS E1 Climate and IFRS S1 & S2 Climate-related Disclosures and to provide a supporting mapping table. The document is available here.
GRI
Following a successful partnership between EFRAG and GRI over the past three years, a new Memorandum of Understanding has been signed, which substantiates the benefits of the alignment achieved between the ESRS and the GRI Standards and commits the organisations to continue working together to deliver technical support for reporting companies.
As a first tangible outcome of this second cooperation agreement, a GRI-ESRS Interoperability Index has been made publicly available on 30 November 2023 as it is submitted for approval to the December meetings of EFRAG standard-setting bodies. The tool sets out how the disclosure requirements and datapoints in each set of standards relate to each other, emphasising the high degree of commonality already achieved and laying down solid foundations to build a reciprocal digital taxonomy. Entities reporting under ESRS will be deemed reporting 'with reference' to the GRI standards and existing GRI reporters will be able to leverage their current reporting efforts to prepare their ESRS "Sustainability statement"
TNFD
The Taskforce on Nature-related Financial Disclosures (TNFD) and EFRAG have collaborated closely for more than two years to maximise the consistency of the ESRS environmental standards and the TNFD recommendations developed in parallel. In December 2023, EFRAG and TNFD signed a Memorandum of Understanding (MoU), to continue this collaboration as both organisations look to respond to the assessment and reporting guidance needs of market participants subject to the CSRD reporting requirements.
The two organisations have jointly published a mapping of the correspondence between the European Sustainability Reporting Standards (ESRS) and the TNFD's recommended disclosures and metrics, illustrating the high level of commonality achieved. This assessment highlights that all 14 TNFD recommended disclosures are reflected in the ESRS.
