In e na ional Jou nal o Cu en Science Resea ch and Re iew
ISSN: 2581-8341
Volume 08 Issue 10 Oc obe 2025
DOI: 10.47191/ijcs /V8-i10-23, Impac Fac o : 8.048
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Compa a i e Analysis be ween Companies ha Adop GRI S anda ds and
Those ha Follow only IFRS (ISSB) - Sus ainabili y Repo
Sé gio Jesus Teixei a
Facul y o Social Sciences, Uni e si y o Madei a, Funchal, Po ugal
ABSTRACT: This a icle compa es companies ha epo hei sus ainabili y in o ma ion in acco dance wi h he GRI S anda ds
(Global Repo ing Ini ia i e) wi h hose ha exclusi ely ollow he IFRS Sus ainabili y Disclosu e S anda ds (ISSB – IFRS S1 and
S2). The s udy aims o unde s and he concep ual, me hodological, and p ac ical di e ences be ween hese wo epo ing
amewo ks, wi h a ocus on hei impac on co po a e anspa ency, go e nance, accoun abili y, and decision-making. I is based
on a e iew o li e a u e, documen analysis, and ins i u ional sou ces o c ea e an analy ical amewo k ha helps companies,
audi o s, egula o s, and esea che s unde s and and apply bo h sys ems. The analysis e eals ha he GRI s anda ds employ a dual
ma e iali y app oach, conside ing bo h he company’s impac s on socie y and he en i onmen , as well as how hese ac o s in luence
inancial pe o mance. In con as , he ISSB/IFRS, oo ed in capi al ma ke p inciples, ocuses mainly on inancial ma e iali y,
a ge ing in es o s and capi al p o ide s. This di e ence is e iden in hei con en equi emen s, go e nance s uc u es, and he
le el o de ail p o ided. The a icle also discusses he in e ope abili y be ween GRI and ISSB, highligh ing e o s o align and
complemen he s anda ds, as well as add essing challenges o p e en epo o e lap and duplica ion. Addi ionally, he s udy
examines issues ela ed o assu ance, compa abili y, and c edibili y o sus ainabili y epo s, sugges ing ha in eg a ing bo h
app oaches can imp o e he consis ency o co po a e disclosu es. I concludes ha , despi e hei di e en objec i es and a ge
audiences, he con e gence o GRI and ISSB ma ks a signi ican s ep owa d mo e in eg a ed, anspa en , and esponsible
sus ainabili y epo ing ha guides decision-making.
KEYWORDS: Co po a e sus ainabili y, GRI, ISSB, IFRS S1, IFRS S2, In eg a ed epo ing, Ma e iali y.
INTRODUCTION
The egula o y and olun a y sus ainabili y epo ing ecosys em has unde gone apid ans o ma ion o e he pas decade.
His o ic ini ia i es, such as he Global Repo ing Ini ia i e (GRI) guidelines, con inue o be widely used by companies seeking o
disclose hei economic, en i onmen al, and social impac s in a comp ehensi e and s anda dized manne (Global Repo ing
Ini ia i e, 2021). Howe e , newe , in es o -o ien ed s anda ds a e eme ging, pa icula ly hose issued by he In e na ional
Sus ainabili y S anda ds Boa d (ISSB)— he body c ea ed by he IFRS Founda ion in 2021 o de elop a global sus ainabili y
disclosu e amewo k o inancial ma ke s (IFRS Founda ion, 2023a). In 2023, he ISSB published IFRS S1 – Gene al
Requi emen s o Disclosu e o Sus ainabili y- ela ed Financial In o ma ion and IFRS S2 – Clima e- ela ed Disclosu es, which
es ablished equi emen s o he disclosu e o sus ainabili y in o ma ion in eg a ed in o adi ional inancial epo ing (IFRS
Founda ion, 2023b). These s anda ds ep esen a pa adigm shi in co po a e epo ing, as hey aim o in eg a e sus ainabili y issues
in o he co e o inancial epo ing, he eby es ablishing a "global baseline" o sus ainabili y disclosu es (Deloi e, 2023). Acco ding
o he ISSB, he objec i e is o p o ide use ul in o ma ion "on sus ainabili y- ela ed isks and oppo uni ies ha a ec he en i y's
p ospec s," imp o ing he compa abili y and consis ency o in o ma ion o in es o s (IFRS Founda ion, 2023b). The coexis ence
o amewo ks such as he GRI and IFRS S1/S2, howe e , aises heo e ical and p ac ical challenges. While he GRI adop s a dual
ma e iali y app oach, conside ing bo h he impac o companies on he en i onmen and socie y, as well as he inancial impac o
hese ac o s on he company i sel , he ISSB s anda ds ocus exclusi ely on inancial ma e iali y (Ha a d Law School Fo um on
Co po a e Go e nance, 2023). This di e ence in app oach means ha epo s p oduced unde each amewo k may a y in
anspa ency and use ulness, depending on he a ge audience. Fo example, an o ganiza ion may disclose ma e ial social impac s
unde GRI bu omi hem unde IFRS S1/S2 i hese impac s do no ha e measu able inancial e ec s.
Recen esea ch has highligh ed ha he adop ion o IFRS S1 and S2 s anda ds ends o inc ease he c edibili y and
compa abili y o co po a e epo s, while also educing he isk o "g eenwashing" by equi ing g ea e alignmen be ween inancial
In e na ional Jou nal o Cu en Science Resea ch and Re iew
ISSN: 2581-8341
Volume 08 Issue 10 Oc obe 2025
DOI: 10.47191/ijcs /V8-i10-23, Impac Fac o : 8.048
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and sus ainabili y epo ing (Wahyuni, 2025). Howe e , he au ho s also wa n o challenges in in e p e a ion and me hodological
ha moniza ion ac oss ju isdic ions, which may limi he immedia e e ec i eness o he s anda ds (Loki a & Megawa i, 2024).
Acco ding o Wagenho e (2024), he ansi ion o an in eg a ed epo ing model ep esen s a "na u al e olu ion" o inancial
accoun ing, in which sus ainable pe o mance is measu ed wi h he same igo as adi ional inancial me ics. Some schola s ha e
desc ibed his mo emen as an "IFRS+1" in e p e a ion, which in ol es in eg a ing inancial epo ing (IFRS) and sus ainabili y
epo ing as a necessa y " i s addi ion" o ully e lec co po a e alue c ea ion (Loki a & Megawa i, 2024). The e o e,
unde s anding how he adop ion o di e en se s o s anda ds—GRI e sus IFRS S1/S2— a ec s he anspa ency, compa abili y,
and use ulness o disclosed in o ma ion is essen ial no only o in es o s and egula o s bu also o ad ancing co po a e go e nance
and sus ainabili y accoun ing on a global scale. The objec i e o his s udy is o compa e companies ha adop he Global Repo ing
Ini ia i e (GRI) s anda ds wi h hose ha ollow only he IFRS/ISSB s anda ds (IFRS S1 and IFRS S2), examining he s uc u al
and concep ual di e ences be ween hese wo sus ainabili y epo ing amewo ks. Acco ding o he Global Repo ing Ini ia i e
(2021), he GRI s anda ds we e c ea ed o enable o ganiza ions o communica e hei economic, en i onmen al, and social impac s
anspa en ly o a b oad ange o s akeholde s, including in es o s, local communi ies, egula o s, and ci il socie y. Meanwhile, he
IFRS S1 and S2 s anda ds, published by he In e na ional Sus ainabili y S anda ds Boa d (ISSB), explici ly ocus on in es o s and
capi al p o ide s, equi ing disclosu e o in o ma ion on sus ainabili y isks and oppo uni ies ha may a ec he en i y's inancial
p ospec s (IFRS Founda ion, 2023a). S udies indica e ha he dis inc ion be ween a ge audience and pu pose has a p o ound impac
on he con en and use ulness o he in o ma ion. While he GRI seeks o p omo e public accoun abili y and social and en i onmen al
anspa ency, he ISSB s anda ds aim o inc ease he compa abili y and inancial ele ance o disclosed in o ma ion (Ha a d Law
School Fo um on Co po a e Go e nance, 2023; Wagenho e , 2024). Rega ding he concep o ma e iali y and epo ing scope, he
GRI adop s a dual ma e iali y app oach, encompassing bo h he company's impac on he en i onmen and socie y, as well as he
isks and oppo uni ies ha a ec i s inancial pe o mance (GRI, 2021). In con as , IFRS S1 and S2 adop a single ma e iali y o
a inancial na u e, ocusing on in o ma ion ha may in luence in es men decisions (IFRS Founda ion, 2023b). This di e ence leads
o subs an ial a ia ions in he g anula i y, dep h, and na u e o disclosu es, including he ea men o me ics, a ge s, and alue
chain in o ma ion (Deloi e, 2023). Fu he mo e, in o ma ion quali y assu ance and assu ance p ac ices also di e . GRI-based
epo s o en ely on ex e nal assu ance o s eng hen c edibili y wi h di e se s akeholde s. A he same ime, IFRS/ISSB s anda ds
seek o in eg a e he assu ance p ocess a he same le el as audi ed inancial epo s (Wahyuni, 2025). This e lec s a g adual
con e gence be ween adi ional accoun ing and sus ainabili y accoun ing, bu also poses me hodological and egula o y challenges
(Loki a & Megawa i, 2024). Rega ding he implica ions o go e nance, communica ion, and s akeholde decision-making, ecen
li e a u e indica es ha companies ha apply he GRI end o engage mo e b oadly wi h s akeholde s and epo quali a i e and
con ex ual impac s, while hose ha adop IFRS S1/S2 emphasize quan i a i e indica o s and ma e ial business isks (Wagenho e ,
2024; Deloi e, 2023). This dis inc ion can a ec he pe cep ion o o ganiza ional legi imacy and anspa ency, depending on he
expec a ions o each s akeholde .
THEORETICAL BACKGROUND
GRI (GLOBAL REPORTING INITIATIVE)
The GRI S anda ds we e his o ically concei ed as a se o s anda ds aimed a anspa ency ega ding an o ganiza ion's economic,
en i onmen al, and social impac s, wi h a ocus on accoun abili y o a b oad ange o s akeholde s—including local communi ies,
wo ke s, NGOs, go e nmen s, and in es o s (Global Repo ing Ini ia i e, 2021). Acco ding o he GRI, he co e mission o he
s anda ds is o "p o ide a common language o o ganiza ions o epo hei impac s, p omo ing compa abili y and accoun abili y"
(GRI, 2021). The GRI model is dis inguished by i s explici adop ion o he concep o dual ma e iali y— ha is, i conside s bo h
how en i onmen al, social, and go e nance issues a ec he company ( inancial ma e iali y) and how he company's ac i i ies
impac socie y and he en i onmen (impac ma e iali y) (GRI, 2021; Wagenho e , 2024).
This b oade app oach e lec s a mul i-s akeholde pe spec i e, in which he pu pose o epo ing ex ends beyond use ulness o
in es o s also o in o m he eal-wo ld e ec s o co po a e ope a ions on sus ainable de elopmen (Wahyuni, 2025). The GRI
S anda ds a e widely used globally—wi h mo e han 10,000 o ganiza ions epo ing unde hei guidelines—and a e s uc u ed in o
uni e sal, sec o al, and hema ic s anda ds, which con ain opic-speci ic indica o s (such as emissions, human igh s, and di e si y)
o measu e and communica e impac s (GRI, 2021; IFRS Founda ion & GRI, 2023). This g anula i y makes he GRI he mos
es ablished s anda d o sus ainabili y epo ing on impac , especially in egula o y and co po a e social esponsibili y con ex s.
In e na ional Jou nal o Cu en Science Resea ch and Re iew
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Volume 08 Issue 10 Oc obe 2025
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IFRS/ISSB (IFRS S1 AND IFRS S2)
The IFRS Sus ainabili y Disclosu e S anda ds—IFRS S1 (Gene al Requi emen s o Disclosu e o Sus ainabili y- ela ed Financial
In o ma ion) and IFRS S2 (Clima e- ela ed Disclosu es)—we e issued in 2023 by he In e na ional Sus ainabili y S anda ds Boa d
(ISSB), a body o he IFRS Founda ion, wi h he p ima y objec i e o p oducing disclosu es applicable o in es o s in hei capi al
alloca ion decisions (IFRS Founda ion, 2023a). These s anda ds ma k he beginning o a new e a in in eg a ed co po a e epo ing,
aiming o es ablish a "global baseline" o sus ainabili y in o ma ion ailo ed o inancial decision-making (Deloi e, 2023). The ISSB
adop s a inancial ma e iali y app oach, also called in es o -use ulness, ocusing on sus ainabili y- ela ed isks and oppo uni ies
ha may impac a company's alue, cash low, o cos o capi al (Ha a d Law School Fo um on Co po a e Go e nance, 2023; IFRS
Founda ion, 2023b). IFRS S1 es ablishes he gene al equi emen s o disclosing sus ainabili y in o ma ion ela ed o inancial
pe o mance. A he same ime, IFRS S2 speci ically add esses clima e disclosu es, inco po a ing and expanding he
ecommenda ions o he Task Fo ce on Clima e- ela ed Financial Disclosu es (TCFD) (IFRS Founda ion, 2023b). Acco ding o he
IFRS Founda ion (2023a), he s anda ds a e designed o be used in conjunc ion wi h inancial s a emen s o ensu e o e all
consis ency and compa abili y. Fu he mo e, hey a e compa ible wi h o he in e na ional amewo ks, such as he GRI and he
Eu opean Sus ainabili y Repo ing S anda ds (ESRS), ein o cing he e o owa d in e ope abili y be ween epo ing egimes
(IFRS Founda ion & GRI, 2023). The adop ion o IFRS S1 and S2, he e o e, ep esen s a s ep owa d in eg a ing sus ainabili y and
inance, posi ioning sus ainabili y epo ing no only as a p ac ice o social anspa ency bu also as a ool o inancial analysis and
co po a e isk managemen (Wagenho e , 2024; Wahyuni, 2025).
KEY CONCEPTUAL DIFFERENCES
MATERIALITY: DUAL VS. SINGLE
The concep o ma e iali y is one o he main poin s o dis inc ion be ween he GRI and he ISSB (IFRS S1/S2). GRI adop s a dual
ma e iali y app oach, conside ing bo h how en i onmen al, social, and go e nance issues a ec he company ( inancial ma e iali y)
and how he company's ac i i ies impac socie y and he en i onmen (impac ma e iali y) (Global Repo ing Ini ia i e, 2021;
Wagenho e , 2024). This app oach ocuses on esponsibili y and accoun abili y o mul iple s akeholde s, expanding he scope o
epo ed opics o include human igh s, local impac s, and supply chains, e en when he e is no di ec inancial impac (Global
Repo ing Ini ia i e, 2021). • IFRS S1/S2 (ISSB): Adop s an in es o -o ien ed ma e iali y app oach, limi ing i sel o in o ma ion
ele an o he economic decisions o p ima y use s, such as in es o s and c edi o s (IFRS Founda ion, 2023a). The ocus is on
in o ma ion ha a ec s a company's abili y o c ea e alue in he sho , medium, and long e m, emphasizing inancial u ili y and
compa abili y ac oss en i ies (Ha a d Law School Fo um on Co po a e Go e nance, 2023). Implica ion: Companies ha epo
acco ding o he GRI end o co e a b oade ange o social and en i onmen al impac opics, while hose ha ollow only IFRS
S1/S2 s anda ds p io i ize disclosu es di ec ly linked o inancial pe o mance and isks and oppo uni ies ele an o in es o s
(Wahyuni, 2025; Deloi e, 2023).
TARGET AUDIENCE AND PURPOSE
The s anda ds also di e in e ms o he a ge audience and he p ima y pu pose o he disclosu es. GRI is aimed a mul iple
s akeholde s, p omo ing public accoun abili y and anspa ency on he eal impac s o business ac i i ies (Global Repo ing
Ini ia i e, 2021). The goal is o enable communi ies, go e nmen s, wo ke s, NGOs, and in es o s o unde s and he social and
en i onmen al e ec s o an o ganiza ion, con ibu ing o i s legi imacy and social esponsibili y. IFRS/ISSB: is aimed p ima ily a
in es o s and capi al ma ke s, ocusing on he compa abili y and use ulness o in o ma ion o assessing isk and e u n (IFRS
Founda ion, 2023a; Ha a d Law School Fo um on Co po a e Go e nance, 2023). The pu pose is o suppo in o med inancial
decisions, enabling an assessmen o how sus ainabili y ac o s can impac a company's alue and economic pe o mance (Deloi e,
2023). Summa y: While he GRI emphasizes public accoun abili y, he ISSB emphasizes in o ma ional e iciency o he capi al
ma ke , ein o cing a ision o inancial sus ainabili y in eg a ed in o adi ional co po a e epo ing (Wagenho e , 2024).
CONTENT AND GRANULARITY APPROACH
The di e ences a e also e lec ed in he le el o de ail (g anula i y) and con en s uc u e equi ed by each s anda d. GRI: p esen s
de ailed and s anda dized hema ic indica o s by opic and sec o , acili a ing compa abili y and impac measu emen . Fo example,
GRI 305 add esses g eenhouse gas emissions, and GRI 207 add esses ax anspa ency (Global Repo ing Ini ia i e, 2021). This
In e na ional Jou nal o Cu en Science Resea ch and Re iew
ISSN: 2581-8341
Volume 08 Issue 10 Oc obe 2025
DOI: 10.47191/ijcs /V8-i10-23, Impac Fac o : 8.048
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app oach o ien s epo ing owa d conc e e impac s and speci ic social and en i onmen al pe o mance me ics, wi h a ocus on
consis ency and accoun abili y (Wahyuni, 2025). IFRS S1/S2 equi es a di ec connec ion be ween sus ainabili y and inancial
s a emen s, emphasizing bo h quali a i e and quan i a i e in o ma ion on go e nance, s a egy, isk managemen , and me ics/ a ge s
ha impac company alue (IFRS Founda ion, 2023b). Speci ically, he IFRS S2 s anda d inco po a es he ecommenda ions o he
TCFD (Task Fo ce on Clima e- ela ed Financial Disclosu es), equi ing disclosu es on clima e isks, emissions, and ene gy
ansi ion plans (IFRS Founda ion, 2023b; Deloi e, 2023). In summa y, he GRI p io i izes hema ic dep h and measu emen o
social/en i onmen al impac , while he ISSB (IFRS S1/S2) p io i izes inancial in eg a ion and compa abili y, ocusing on p ac ical
in o ma ion o in es o s and c edi o s (Wagenho e , 2024; Loki a & Megawa i, 2024).
INTEROPERABILITY AND CONVERGENCE EFFORTS
Since 2023, in e na ional e o s o p omo e in e ope abili y be ween he Global Repo ing Ini ia i e (GRI) and he In e na ional
Sus ainabili y S anda ds Boa d (ISSB) ha e in ensi ied. In 2024–2025, hese ini ia i es e ol ed in o o mal coope a ion ag eemen s,
esul ing in he publica ion o mapping and equi alence guides be ween he wo se s o s anda ds. This aimed o educe o e lap and
acili a e he combined use o he amewo ks (IFRS Founda ion & Global Repo ing Ini ia i e, 2023; Global Repo ing Ini ia i e,
2024).
These ac ions e lec he ecogni ion by bo h ins i u ions ha many companies epo simul aneously agains mul iple
s anda ds—a phenomenon o en e e ed o as double epo ing—which inc eases cos s and ope a ional complexi y (Wahyuni, 2025;
Deloi e, 2023). Thus, he collabo a ion be ween he GRI and he ISSB aims o alle ia e his bu den by allowing ce ain disclosu es
made unde one s anda d o mee he equi emen s o he o he pa ially.
Fo example, he in e ope abili y guides eleased in 2024 indica e a eas o equi alence be ween GRI 302/305 (ene gy and
emissions) and IFRS S2 (clima e), allowing epo s p epa ed unde GRI o be eused o mee ISSB equi emen s ela ed o
g eenhouse gas emissions and clima e isk managemen , p o ided hey ollow compa ible measu emen p inciples (IFRS Founda ion
& Global Repo ing Ini ia i e, 2023).
The echnical collabo a ion also aims o ha monize e minology, go e nance concep s, and ma e iali y amewo ks,
p omo ing g ea e consis ency be ween s akeholde -o ien ed epo ing (GRI) and in es o -o ien ed epo ing (ISSB) (IFRS
Founda ion, 2023a; Global Repo ing Ini ia i e, 2024). This con e gence mo emen aims o os e he de elopmen o a cohe en
global sus ainabili y disclosu e ecosys em, whe e epo s om a ious sou ces can in e ac and be in e p e ed in an in eg a ed
manne (Wagenho e , 2024).
In p ac ice, companies ha combine bo h s anda ds can mee he demands o mul iple audiences (s akeholde s and
in es o s) wi h less edundan e o , s eng hening he c edibili y and compa abili y o in o ma ion (Deloi e, 2023). Howe e , his
in eg a ion equi es ope a ional and in e nal go e nance adjus men s, including modi ica ions o da a collec ion p ocesses,
in o ma ion sys ems, in e nal con ols, and ex e nal assu ance (Loki a & Megawa i, 2024).
Fu he mo e, he li e a u e sugges s ha he success o in e ope abili y will depend on o ganiza ions' abili y o ansla e
egula o y equi emen s in o s anda dized co po a e p ac ices, as well as on he ad ancemen o ins i u ional coope a ion be ween
he IFRS Founda ion, GRI, and o he bodies, such as he Eu opean Financial Repo ing Ad iso y G oup (EFRAG), esponsible o
he Eu opean Sus ainabili y Repo ing S anda ds (ESRS) (Ha a d Law School Fo um on Co po a e Go e nance, 2023).
In summa y, he con e gence be ween GRI and ISSB ep esen s a signi ican s ep owa ds he global in eg a ion o
sus ainabili y and inancial epo ing, con ibu ing o cos educ ion, imp o ed in o ma ion quali y, and s eng hening co po a e
anspa ency on an in e na ional scale.
ASSURANCE AND INFORMATION QUALITY
Ex e nal assu ance—also called independen audi ing o sus ainabili y epo s—has become a cen al elemen in he discussion on
he c edibili y and quali y o co po a e in o ma ion (IFAC, 2024).
HISTORICAL PRACTICE AND EVOLUTION OF THE GRI
His o ically, epo s p epa ed in acco dance wi h he GRI S anda ds ha e sough ex e nal assu ance olun a ily, aiming o s eng hen
anspa ency and s akeholde us (Global Repo ing Ini ia i e, 2021). Howe e , he adop ion o his p ac ice a ies widely ac oss
egions and sec o s, being mo e common in Eu opean and publicly aded companies (Deloi e, 2023).
In e na ional Jou nal o Cu en Science Resea ch and Re iew
ISSN: 2581-8341
Volume 08 Issue 10 Oc obe 2025
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Assu ance co e age is also no uni o m, as i is o en limi ed o selec ed indica o s, such as g eenhouse gas emissions (scopes 1 and
2) o speci ic social indica o s (Wagenho e , 2024). Fu he mo e, assu ance le els can a y— o example, "limi ed assu ance" o
" easonable assu ance"—and he me hodologies applied di e be ween audi i ms and specialized consul ing i ms (IFAC, 2024).
Despi e hese limi a ions, he e is e idence o a g adual inc ease in demand o GRI epo ing assu ance, d i en by p essu e om
in es o s and egula o s seeking g ea e con idence in ESG disclosu es (Wahyuni, 2025).
ASSURANCE IN THE CONTEXT OF IFRS S1 AND S2
The IFRS Sus ainabili y Disclosu e S anda ds (S1 and S2), de eloped by he In e na ional Sus ainabili y S anda ds Boa d (ISSB),
we e designed o di ec in eg a ion wi h inancial s a emen s. This cha ac e is ic ends o b ing sus ainabili y disclosu es close o
he scope o adi ional inancial audi ing, pa ing he way o he adop ion o mo e sys ema ic and manda o y assu ance p ac ices
in he u u e (IFRS Founda ion, 2023a; Ha a d Law School Fo um on Co po a e Go e nance, 2023).
Al hough IFRS S1 and S2 do no ye impose manda o y assu ance, hei s uc u e e e s o he consis ency and e i iabili y equi ed
by in e na ional inancial s anda ds. This has led o discussions among egula o s, audi o s, and s anda d-se ing bodies abou
minimum quali y and eliabili y c i e ia o sus ainabili y in o ma ion (IAASB, 2023; IFAC, 2024). In 2023, he In e na ional
Audi ing and Assu ance S anda ds Boa d (IAASB) published a p oposed in e na ional s anda d, ISSA 5000 (In e na ional S anda d
on Sus ainabili y Assu ance), which aims o es ablish uni o m equi emen s o he assu ance o sus ainabili y epo s, applicable o
bo h GRI-based and IFRS S1/S2-based epo s (IAASB, 2023).
TECHNICAL CHALLENGES AND OUTLOOK
Despi e ad ances, signi ican echnical challenges emain ela ed o da a eliabili y, especially conce ning complex alue chain
me ics and Scope 3 emissions, which depend on in o ma ion p o ided by supplie s and ex e nal pa ne s (Deloi e, 2023;
Wagenho e , 2024). The he e ogenei y o measu emen sys ems, he lack o uni o m da a collec ion s anda ds, and insu icien
in eg a ion be ween accoun ing and inancial and ESG a eas s ill comp omise he compa abili y and e i iabili y o disclosu es
(Wahyuni, 2025). Howe e , he e is a g owing consensus ha independen assu ance will be an essen ial pilla o ensu e he
c edibili y o sus ainabili y epo s unde any egula o y amewo k (IFAC, 2024). The con e gence be ween GRI, ISSB, and
IAASB assu ance s anda ds ends o s eng hen he in eg a ion be ween sus ainabili y epo ing and inancial audi ing, p omo ing
g ea e con idence in he global disclosu e ecosys em (IFRS Founda ion, 2023b; Wagenho e , 2024).
PRACTICAL COMPARISON: IMPACTS ON DISCLOSURE AND CORPORATE GOVERNANCE
The concep ual di e ences be ween GRI and IFRS/ISSB a e e lec ed in obse able p ac ices wi hin companies, in luencing epo
con en , da a sys ems, in e nal con ol mechanisms, and co po a e communica ions (Global Repo ing Ini ia i e, 2021; IFRS
Founda ion, 2023a).
REPORT CONTENT
Companies ha adop he GRI gene ally include de ailed chap e s on en i onmen al impac s, human igh s, labo condi ions, local
economic impac s, and s akeholde dialogue, e lec ing he p inciple o double ma e iali y (Global Repo ing Ini ia i e, 2021). IFRS-
only companies (ISSB): Thei epo s, o en in eg a ed in o he annual epo o inancial s a emen s, end o ocus on en i onmen al
and clima e- ela ed isks and oppo uni ies ha a ec inancial pe o mance, such as ansi ion scena ios, inancial sensi i i y, and
alue-linked me ics (IFRS Founda ion, 2023b; Wagenho e , 2024).
DATA SYSTEMS AND INTERNAL CONTROLS
GRI-adop e companies equi e comp ehensi e da a collec ion sys ems ha cap u e impac s ac oss he alue chain, o en wi h
ex ensi e quali a i e da a. IFRS-only companies, on he o he hand, equi e obus con ols and accoun ing in eg a ions ha connec
sus ainabili y disclosu es o inancial es ima es, isks, and cash lows, s eng hening consis ency wi h audi ed inancial s a emen s
(IFRS Founda ion, 2023b; Deloi e, 2023). This di e ence implies ha he GRI s anda d p io i izes comp ehensi e da a and social
engagemen , whe eas he IFRS s anda d p io i izes inancial in eg a ion and accoun ing aceabili y (Loki a & Megawa i, 2024).
In e na ional Jou nal o Cu en Science Resea ch and Re iew
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EXTERNAL COMMUNICATION AND REPUTATION
GRI-based epo s hold high epu a ional alue among communi ies, NGOs, and consume s, as hey demons a e an o ganiza ion's
e hical commi men and co po a e social esponsibili y (Global Repo ing Ini ia i e, 2024). IFRS/ISSB-o ien ed epo s end o
inc ease he us o ins i u ional in es o s and inancial analys s, ein o cing anspa ency and ma ke compa abili y (Ha a d Law
School Fo um on Co po a e Go e nance, 2023). In p ac ice, many la ge co po a ions adop hyb id s a egies, u ilizing GRI o
impac epo ing and ISSB o inancial in eg a ion, o maximize c edibili y wi h di e se audiences (Consul ancy.eu, 2024).
EMPIRICAL EVIDENCE AND RECENT STUDIES
Empi ical li e a u e demons a es ha he GRI emains he mos widely adop ed s anda d globally, bo h in e ms o he numbe o
epo s and sec o al di e si y (Ma oun, 2024; ScienceDi ec , 2025). Recen sys ema ic e iews highligh he ole o he GRI in
gene al co po a e s anda diza ion and anspa ency. Quali a i e compa a i e s udies iden i y ensions be ween in es o -o ien ed
accoun ing (ISSB/IFRS) and social and impac accoun ing (GRI), bu poin o ha moniza ion and in e ope abili y as he mos
p omising pa h (Wagenho e , 2024; Loki a & Megawa i, 2024). Me hodologically, i is obse ed ha many s udies s ill use egional
samples and he e ogeneous measu emen c i e ia, such as epo quali y indices, he numbe o indica o s disclosed, and he
exis ence o assu ance. This me hodological di e si y limi s compa abili y ac oss s udies and ein o ces he need o empi ical
s anda diza ion (Wahyuni, 2025).
PROPOSED METHODOLOGY FOR COMPARATIVE STUDIES
To empi ically assess he di e ences be ween companies ha adop GRI and hose ha ollow only IFRS/ISSB, a eplicable esea ch
design is p oposed:
1. Sample: companies lis ed on s ock exchanges in he Eu opean Union, US/UK, and La in Ame ica, co e ing na u al esou ce-
in ensi e and non-in ensi e sec o s (n ≈ 300).
2. Pe iod: 2022–2024, o cap u e he ini ial ansi ion phase o he ISSB.
3. Dependen Va iables:
• Repo ing quali y (composi e index: ex en , a ge s, assu ance, and g anula i y);
• Emissions anspa ency (scopes 1, 2, and 3);
• Cos o capi al (p oxy o in es o u ili y);
• Media-adjus ed co po a e epu a ion.
4. Independen a iables: GRI adop ion (bina y), IFRS S1/S2 adop ion (bina y), con ols (size, p o i abili y, sec o , coun y).
5. Me hods: Mul i a ia e eg essions, di e ence-in-di e ences ( o companies mig a ing om IFRS-only o GRI+ISSB), and
quali a i e con en analysis.
6. Da a sou ces: Co po a e epo s, ESG da abases, egula o y publica ions (GRI, IFRS), and inancial da abases (Compus a , O bis).
(IFRS Founda ion, 2023b; Wahyuni, 2025).
DISCUSSION — ADVANTAGES AND LIMITATIONS COMPARED
ADVANTAGES OF GRI ADOPTION
• B oad co e age o social, en i onmen al, and economic impac s;
• S anda dized indica o s ha acili a e sec o al benchma king;
• High legi imacy and accep ance by non- inancial s akeholde s (Global Repo ing Ini ia i e, 2021).
ADVANTAGES OF IFRS S1/S2 ADOPTION
• Di ec in eg a ion wi h inancial epo ing and in es o decisions;
• Mo e obus in e na ional compa abili y;
• G ea e suppo o isk and e u n analysis (IFRS Founda ion, 2023a; Deloi e, 2023).
LIMITATIONS
• GRI-only: may be seen as insu icien o in es o s due o a lack o connec ion wi h inancial me ics.
In e na ional Jou nal o Cu en Science Resea ch and Re iew
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• IFRS-only: may omi non- inancial social and en i onmen al impac s, educing accoun abili y and public legi imacy. •
Bo h amewo ks s ill ace echnical challenges in da a assu ance and eliabili y, especially o Scope 3 emissions (Global
Repo ing Ini ia i e, 2024; Wagenho e , 2024).
PRACTICAL RECOMMENDATIONS FOR COMPANIES
1. Adop a hyb id app oach — use GRI o impac s and ISSB (IFRS S1/S2) o in es o - acing in o ma ion, le e aging
in e ope abili y guides (Global Repo ing Ini ia i e, 2024).
2. S eng hen da a go e nance, in eg a ing accoun ing and sus ainabili y sys ems.
3. In es in independen assu ance, p io i izing c i ical me ics (emissions, human igh s, supply chain).
4. Engage wi h s akeholde s o align dual and inancial ma e iali y.
FOR REGULATORS AND STANDARD SETTERS
1. P omo e p ac ical in e ope abili y h ough echnical guides and hema ic empla es (IFRS Founda ion & Global Repo ing
Ini ia i e, 2023).
2. Suppo p o essional de elopmen and he de elopmen o global assu ance s anda ds.
FOR RESEARCHERS
1. De elop compa able epo ing quali y me ics and longi udinal models.
2. Analyze he e ec s o mixed adop ion (GRI + ISSB) on cos o capi al, epu a ion, and go e nance (Wahyuni, 2025; Loki a &
Megawa i, 2024).
CONCLUSIONS
A compa ison be ween companies ha adop he Global Repo ing Ini ia i e (GRI) and hose ha ollow only he In e na ional
Financial Repo ing S anda ds Founda ion (IFRS/ISSB) e eals dis inc bu complemen a y app oaches o sus ainabili y disclosu e.
The GRI emphasizes a dual ma e iali y pe spec i e, conside ing bo h he company's ex e nal impac s on he en i onmen and
socie y, as well as he impac s o hese ac o s on he company i sel . This app oach e lec s a logic o co po a e esponsibili y and
accoun abili y o a b oad ange o s akeholde s, including communi ies, wo ke s, cus ome s, and go e nmen s (Global Repo ing
Ini ia i e, 2021, 2024; Ma oun, 2024).
In con as , he ISSB/IFRS adop s a single inancial ma e iali y app oach, cen e ed on he ele ance o in o ma ion o he economic
decisions o in es o s and c edi o s. The ocus is on c ea ing and p ese ing alue in he sho , medium, and long e m, wi h an
emphasis on he isks and oppo uni ies ha a ec inancial pe o mance (IFRS Founda ion, 2023a, 2023b; Wagenho e , 2024).
Fa om ep esen ing compe ing models, he GRI and IFRS S1/S2 s anda ds can be seen as complemen a y. While he GRI p o ides
a holis ic iew o social, en i onmen al, and go e nance impac s, he ISSB/IFRS b ings echnical obus ness and compa abili y o
inancial analyses (Loki a & Megawa i, 2024; Deloi e, 2023). This ins i u ional complemen a i y has been ecognized by bo h
o ganiza ions, which, since 2023, ha e de eloped in e ope abili y guidelines o enable he c oss-use o indica o s and educe
edundancies be ween epo s (Global Repo ing Ini ia i e, 2024; IFRS Founda ion, 2023b).
The global end, he e o e, is owa d g ea e egula o y con e gence and coope a ion o s eng hen he anspa ency, c edibili y,
and use ulness o co po a e in o ma ion. Combined adop ion (GRI + IFRS S1/S2) is cu en ly he eme ging bes p ac ice, as i
simul aneously se es in es o s and ci il socie y, balancing economic ele ance and social esponsibili y (Ha a d Law School
Fo um, 2023; Wahyuni, 2025).
In his con ex , i is ecommended ha companies es ablish in eg a ed da a go e nance sys ems capable o collec ing, e i ying, and
ensu ing he sus ainabili y o in o ma ion in a consis en and audi able manne . S eng hening independen assu ance—whe he
conduc ed by inancial audi o s o sus ainabili y expe s—is c ucial o enhancing use con idence and mi iga ing in o ma ional
g eenwashing (Deloi e, 2023; Wagenho e , 2024).
In summa y, he analysis e eals ha in eg a ing GRI and IFRS/ISSB no only enhances anspa ency bu also enhances decision-
making among a ious s akeholde s, p omo ing esponsible go e nance, global compa abili y, and ma ke us . This wo k was
based on a documen a y e iew and heo e ical-ins i u ional syn hesis, ga he ing in o ma ion om he p ima y egula o y sou ces
In e na ional Jou nal o Cu en Science Resea ch and Re iew
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(GRI, IFRS, ISSB) and ecen academic li e a u e. Al hough he me hod enables he iden i ica ion o concep ual and no ma i e
con e gences, i lacks la ge-scale empi ical e idence, which cons i u es a signi ican limi a ion (Wagenho e , 2024; Ma oun, 2024).
To s eng hen he alidi y o he indings, u u e esea ch should apply he compa a i e me hodological design p oposed in he
p e ious sec ion, using s a is ical samples ep esen a i e o companies and sec o s, in o de o quan i a i ely measu e:
• he impac o GRI o IFRS S1/S2 adop ion on he cos o capi al and he pe cep ion o isk and e u n;
• he e ec on he quali y and assu ance o sus ainabili y epo s;
• and he ela ionship be ween mixed adop ion (GRI + ISSB) and co po a e epu a ion (Wahyuni, 2025; Loki a & Megawa i, 2024).
Fu he mo e, he e is oom o explo e he ole o audi s and assu ance p o ide s in he p ocess o con e gence be ween GRI and
ISSB, a opic ha is likely o gain p ominence wi h he e olu ion o Eu opean Union egula o y equi emen s (CSRD) and global
capi al ma ke s (IFRS Founda ion, 2023b).
Finally, i is ecommended ha u u e esea ch combine quan i a i e and quali a i e me hods—such as con en analysis, panel
eg essions, and in e iews wi h sus ainabili y manage s— o unde s and how companies in e nalize dual ma e iali y and ansla e
hese p inciples in o e ec i e go e nance p ac ices (Ma oun, 2024; Wagenho e , 2024).
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DOI: 10.47191/ijcs /V8-i10-23, Impac Fac o : 8.048
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