New GRI chair urges Australia to pick EU standards over ISSB
The newly appointed chair of the GRI Standards governance body, Carol Adams (above), is urging Australia to adopt its climate reporting regime, and ditch the International Sustainability Standards Board model.
The GRI is closely aligned to the European Sustainability Reporting Standards (ESRS) framework, even though GRI signed an agreement with the ISSB last year to work closely together.
"We strongly urge that climate reporting requirements in Australia should not be limited to the global baseline envisaged by the ISSB for three reasons," Adams wrote.
The first reason was that new data suggest that asset owners do not agree that sustainability reporting should only include financially material sustainability standards.
Secondly, Adams stressed sustainability disclosures have a bigger impact than just on asset owners, but on entire societies.
Thirdly, the increasing popularity of impact investing means that information has grown increasingly relevant for financial institutions.
"We suggest the use of the ESRS, which is to be used by the European Financial Reporting Advisory Group, but is currently in draft form," Adams wrote.
"Although not perfect, due to its alignment with the GRI Standards the ESRS come close to adopting a concept of materiality based on accountability to financial and non-financial capitals that affect and are affected by organisations," she concluded.