The CSRD, SASB and GRI serve distinct purposes and cater to different entities and audiences, complementing each other in the realm of sustainability reporting. While there is some common ground between GRI and CSRD, there are notable differences.
GRI standards are designed to assist businesses and organizations in conveying their ESG impact to a diverse stakeholder base. They are applicable to all organizations, irrespective of ownership structure, size, or location. In contrast, SASB standards focus on informing capital providers about the potential influence of sustainability issues on business performance.
The CSRD's objective is to enhance the EU's existing initiatives, allowing the investment community, consumers, and stakeholders to assess the sustainability performance of companies. While the CSRD will incorporate key elements of globally accepted standards, it is anticipated to go beyond, aligning with the EU's ambitious sustainability goals, and adhering to its legal framework. Importantly, the EU's CSRD will be mandatory for large companies and most publicly listed SMEs in the EU, including subsidiaries of global firms. SMEs will have the option to report based on simpler standards and benefit from a more extended phase-in period.