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Over the past year, since the introduction of the International Sustainability Standards Board (ISSB) in June 2023, I have been frequently asked this question: Is GRI no longer relevant? Is GRI going to be phased out?
To answer the question, I usually reply with another question: Will your company be abandoning reporting using the UN Sustainable Development Goals (UN SDGs)? Most of the companies I speak to say that they are dropping reporting using the UN SDGs. If this is their response, what is the point of asking whether GRI is still relevant or will be phased out?
I must admit that I am surprised at these questions and reasonably worried about the state of sustainability disclosures and reporting. To me, the question exposes the lack of understanding of why corporations are required to undertake sustainability reporting in the first place. To take a leaf from the 1987 Brundtland Commission, sustainability is introduced to help make a positive impact on the environment and to ensure that future generations also have a chance to thrive on this beautiful planet that we call home (paraphrased).
As such, the answer to the question is pretty straightforward: the ISSB, GRI, and the UN SDGs are all important for sustainability reporting. Some might argue that the Securities Commission Malaysia’s (SC) National Sustainability Reporting Framework (NSRF) mandates using only the ISSB. This is true. But what they don’t mention is that the NSRF requires the usage of the ISSB as a baseline sustainability reporting standard.
The word “baseline” is often omitted by those who push the ISSB, an investor-focused sustainability standard. Now, I am not critical of the ISSB nor opposed to it. But we must understand why we are encouraged to embark on sustainability reporting in the first place.
This beautiful planet is really in a bad shape, and studies show that it can only get worse unless we all take action to reduce waste, carbon emissions, protect the environment and biodiversity. For this reason, we need to take a broader stakeholder approach and include everyone. The ISSB looks only after the interests of the investors. But the investors’ interest alone will not save the planet. Besides, the ISSB is based on single materiality approach. Using both the ISSB and GRI will help organisations to transition towards a wholesome double materiality approach of sustainability reporting.
Yes, GRI is a voluntary standard. But that doesn’t mean we can ignore it altogether as it has been in use since 1997 and most corporations around the globe use it for sustainability impact reporting. GRI is a non-profit organisation and allows the use of its standard for free to anyone.
Sustainability reporting is no longer optional. Understanding the differences — and how they complement each other — is essential for effective sustainability strategy.
GRI is the world’s most widely used sustainability reporting framework. It promotes a focus double materiality, meaning organizations disclose both how sustainability issues affect financial performance and how business activities impact society, the environment, and human rights. This broader lens supports transparency, accountability, and stakeholder trust.
The SDGs, while not a reporting standard, provide a powerful strategic framework. Companies increasingly align their sustainability initiatives with the 17 SDGs to demonstrate contribution to global priorities such as climate action, decent work, clean energy, and social inclusion. Together, GRI and the SDGs help organisations communicate purpose, impact, and long-term value creation.
This approach resonates strongly with stakeholders beyond investors — including employees, customers, regulators, communities, and civil society — who increasingly expect businesses to act responsibly and ethically.
The ISSB standards (IFRS S1 and IFRS S2) establishes a mandatory global baseline for sustainability-related financial disclosures. Their focus is financial materiality: what sustainability risks and opportunities could reasonably affect enterprise value.
ISSB reporting is designed primarily for investors and capital markets, improving consistency, comparability, and reliability. By embedding sustainability risks into mainstream financial reporting, ISSB strengthens governance, risk management, and strategic decision-making.
This regulatory-driven approach also addresses concerns about fragmented disclosures, greenwashing, and inconsistent sustainability claims, helping to enhance market confidence.
In my humble opinion, organisations that rely solely on ISSB risk adopting a narrow, compliance-driven mindset. Meanwhile, those focused only on voluntary frameworks may fall short of emerging regulatory and investor expectations. The future of this planet and sustainability reporting disclosures lies in strategic integration, where financial materiality and impact reporting reinforce one another.
In today’s complex business environment, transparency, accountability, and resilience are not competing goals — they are mutually reinforcing. The organisations that understand this will be best positioned for sustainable growth.
To me, the big question is now whether it is ISSB or GRI (or UN SDGs). Rather than mistakenly thinking that it is a battle sustainability popularity contest between GRI, SDGs, or ISSB, I would propose that organisations adopt an integrated reporting strategy. By this, I propose the following:
• GRI + SDGs → Broader impact, stakeholder trust, sustainability leadership
• ISSB → Regulatory compliance, investor confidence, financial discipline
By combining both, companies can meet regulatory requirements while also demonstrating genuine sustainability and long-term purpose.
As sustainability reporting continues to evolve, building the right knowledge and capabilities is no longer optional — it is essential. For professionals and organisations seeking clarity and practical competence in navigating GRI, ISSB, and integrated sustainability reporting, ESGright’s certified training programmes provide a strong foundation. Led by experienced, GRI-certified sustainability professionals, our courses are designed to translate complex standards into actionable insights that can be applied immediately within organisations. Investing in structured, credible sustainability education today is a critical step towards stronger governance, meaningful impact, and long-term value creation.
