Sustainability reporting is no longer optional — it’s essential. But with a growing ecosystem of frameworks, many organizations ask: “How do GRI and IFRS standards fit together?”

The short answer? They’re complementary — not competing.

Let’s unpack how the Global Reporting Initiative (GRI) and the International Financial Reporting Standards (IFRS) Foundation are aligning, and what it means for businesses worldwide.

Different Origins, Shared Vision

GRI and IFRS come from different starting points:

• GRI Standards focus on an organization’s impact on the environment, society, and economy. It’s built on the idea of impact materiality — how companies affect the world around them.
• IFRS Sustainability Disclosure Standards (especially IFRS S1 and S2) target investor needs. They prioritize financial materiality — how sustainability risks and opportunities impact a company’s ability to create enterprise value.

Despite these different focuses, both are working toward a shared goal: to provide clearer, more consistent, and globally relevant sustainability disclosures.

Common Ground: Where GRI and IFRS Intersect

Here’s where the two frameworks are aligning:

1.   Complementary Purposes

Companies can use GRI to report on broader societal and environmental impacts, and IFRS to report on financially material sustainability issues — serving both investors and wider stakeholders.

2.   Double Materiality

Both recognize that sustainability reporting needs to address two dimensions:

• Outside-in: How environmental and social issues affect the company financially (IFRS focus)
• Inside-out: How the company’s activities impact people and the planet (GRI focus)

3.   Commitment to Interoperability

In 2022, GRI and IFRS signed a Memorandum of Understanding to collaborate and align their work, reducing duplication and making reporting simpler for companies.

4.   Climate Reporting Synergies

When IFRS S2 (Climate-related Disclosures) was launched, it showed strong alignment with GRI 302 (Energy) and GRI 305 (Emissions), making it easier for companies to report climate data across both standards.

Why This Matters for Companies

Integrated reporting is the future.

Companies that align with both GRI and IFRS frameworks will be better equipped to:

• Meet growing regulatory requirements (like the EU’s CSRD)
• Respond to investor and stakeholder expectations
• Build transparency, trust, and resilience
• Manage sustainability risks and opportunities strategically

Using both frameworks together means companies can tell a fuller, more credible story — showing not only how sustainability affects their business, but also how their business affects the world.

The Bottom Line

GRI and IFRS may have different histories, but today, they’re working together toward a more coherent reporting system.

Impact and financial materiality aren’t separate conversations anymore — they’re two sides of the same coin.

Sustainability isn’t just about reporting numbers; it’s about reshaping how we create value.

The organizations that understand this — and report accordingly — will lead in the economy of the future.