As ESG reporting matures, two frameworks dominate global conversations: GRI Standards and the new IFRS S1 & S2 sustainability standards. Understanding their differences — and how they relate — is increasingly important for Indian companies.
GRI Standards: Multi-Stakeholder Focus
The Global Reporting Initiative (GRI) has been the dominant sustainability reporting framework for over two decades. Key characteristics:
- Audience: Multiple stakeholders — employees, communities, NGOs, governments, investors
- Focus: Impact materiality — how the company impacts the world
- Coverage: Comprehensive — environment, social, governance, supply chain, human rights
- Mandatory in India? No, but forms the basis for many voluntary disclosures and the spirit of BRSR
IFRS S1 & S2: Investor-Focused
The International Sustainability Standards Board (ISSB) released IFRS S1 and S2 in 2023. Key characteristics:
- Audience: Primarily investors and capital markets
- Focus: Financial materiality — how sustainability issues affect the company's financial performance
- S1: General sustainability-related financial disclosures
- S2: Climate-specific disclosures (aligned with TCFD)
- Mandatory in India? Not yet, but increasingly expected by foreign investors
Key Differences
| | GRI | IFRS S1 & S2 |
|---|---|---|
| Materiality | Impact materiality | Financial materiality |
| Primary audience | All stakeholders | Investors |
| Climate focus | Part of environmental disclosures | S2 is dedicated to climate |
| Scope | Broad ESG | Financial risks and opportunities |
Which Should You Use?
For most Indian companies, GRI provides the foundation and helps satisfy BRSR requirements. As you grow globally, IFRS S1 & S2 readiness becomes important for investor relations.
The good news: they are increasingly interoperable, and producing disclosures under both is achievable with a single data collection process.
Questions about which framework is right for your organization? [Talk to us](/contact).
[Founder Name]
Founder, Vedant EHS Advisors