AMSTERDAM: The Global Reporting Initiative (GRI) believes environmental, social and governance (ESG) reporting should converge with financial reporting by 2020.
This was one of two goals set by GRI chief executive Ernst Ligteringen on the first day of the Amsterdam Global Conference on Sustainability and Transparency.
The GRI goals over the next decade are:
- Environmental, social and governance (ESG) reporting should become a general practice to help markets and society take informed and responsible decisions;
- ESG reporting and financial reporting need to converge over the coming decade. GRI recommended that a standard for integrated reporting should be defined, tested and adopted by 2020.
Ligteringen said that by 2015 all large and medium-sized companies in Organisation for Economic Co-operation and Development (OECD) countries and some emerging economies should be required to report publicly on their ESG performance and be held to account if they decline.
Integrated reporting committee
The GRI also announced it is working with leading global organisations in financial markets, accounting, corporate responsibility, ESG reporting and civil society to establish an International Integrated Reporting Committee.
The committee’s purpose will be to promote integrated reporting and to facilitate an effort to create integrated reporting standards.