Sustainability Reporting: Comparative Analysis between Companies that Adopt GRI Standards and Those that Follow Only IFRS
Sérgio Teixeira, PhD
Abstract
This study seeks to compare the transparency, consistency, and comprehensiveness of various sustainability reports prepared by international organizations that have adopted the Global Reporting Initiative (GRI) standards with those that disclose their financial statements using International Financial Reporting Standards (IFRS). The quantitative analysis is based on disclosure indicators, materiality, and the combination of economic and non-financial information. The sample is based on 60 companies listed on the New York, London, and Frankfurt stock exchanges, distributed between GRI adopters and non-adopters. The results show that companies that follow the GRI guidelines demonstrate greater coverage and standardization in the disclosure of environmental, social, and governance (ESG) information and in financial and non-financial performance in line with GRI guidelines. Conversely, disclosure solely using IFRS is associated with stronger financial consistency but relatively less correlation with sustainability variables for companies. The review indicates that the application of GRI standards serves as a means of improving the integrity and comparability of socio-environmental reports. It reinforces the importance of convergence between financial and non-financial statements worldwide, particularly in the context of the international business environment and its emphasis on sustainable companies.
Keywords
Corporate Sustainability; GRI; IFRS; Integrated Reporting; Disclosure.
References
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Accounting, Auditing & Accountability Journal, 30(4), 906–931.
Adams, C. A. (2020). Sustainability reporting and integrated reporting. Routledge.
Cho, C. H., Michelon, G., & Patten, D. M. (2012). Impression management in sustainability
reports: An empirical investigation of the use of graphs. Accounting and the Public
Interest, 12(1), 16–37.
Clarkson, P. M., Overell, M. B., & Chapple, L. (2019). Environmental reporting and its relation
to corporate environmental performance. Abacus, 55(1), 18–54.
Creswell, J. W. (2014). Research design: Qualitative, quantitative, and mixed methods
approaches (4th ed.). SAGE Publications.
Eccles, R. G., Krzus, M. P., & Ribot, S. (2015). The integrated reporting movement: Meaning,
momentum, motives, and materiality. Wiley.
Eccles, R. G., & Krzus, M. P. (2018). The Nordic model: An analysis of leading practices in
sustainability reporting. Harvard Business School.
Elkington, J. (1999). Cannibals with forks: The triple bottom line of 21st century business.
Capstone Publishing.
Global Reporting Initiative – GRI. (2021). GRI Standards 2021: Universal Standards.
Amsterdam: GRI.
Gray, R. (2010). Is accounting for sustainability actually accounting for sustainability… and
how would we know? Accounting, Organizations and Society, 35(1), 47–62.
Hahn, R., & Kühnen, M. (2013). Determinants of sustainability reporting: A review of results,
trends, theory, and opportunities in an expanding field of research. Journal of Cleaner
Production, 59, 5–21.
International Accounting Standards Board – IASB. (2022). Conceptual Framework for
Financial Reporting. London: IFRS Foundation.
International Sustainability Standards Board – ISSB. (2023). IFRS S1: General Requirements
for Disclosure of Sustainability-related Financial Information and IFRS S2: Climate-
related Disclosures. London: IFRS Foundation.
International Integrated Reporting Council – IIRC. (2021). The International <IR> Framework
(Revised 2021). London: Value Reporting Foundation.
KPMG. (2023). The KPMG Survey of Sustainability Reporting 2023. Amstelveen: KPMG
International.
Krippendorff, K. (2018). Content analysis: An introduction to its methodology (4th ed.). SAGE
Publications.
Manes-Rossi, F., Nicolo, G., Tiron-Tudor, A., & Zanellato, G. (2018). Ensuring more
sustainable reporting through the integrated report. Sustainability, 10(1), 1–17.
Michelon, G., Pilonato, S., & Ricceri, F. (2015). CSR reporting practices and the quality of
disclosure: An empirical analysis. Critical Perspectives on Accounting, 33, 59–78.
Adams, C. A. (2020). Sustainability reporting and value creation. Routledge.
Alexander, D., & Nobes, C. (2013). Financial accounting: An international introduction.
Pearson.
Bebbington, J., & Unerman, J. (2018). Achieving the United Nations Sustainable Development
Goals: An enabling role for accounting research. Accounting, Auditing &
Accountability Journal, 31(1), 2–24.
Brown, H. S., de Jong, M., & Levy, D. L. (2009). Building institutions based on information
disclosure: Lessons from GRI’s sustainability reporting. Journal of Cleaner Production,
17(6), 571–580.
Cho, C. H., Michelon, G., & Patten, D. M. (2012). Impression management in sustainability
reports: An empirical investigation of the use of graphs. Accounting and the Public
Interest, 12(1), 16–37.
Clarkson, P. M., Li, Y., Richardson, G. D., & Vasvari, F. P. (2019). Does it really pay to be
green? Determinants and consequences of proactive environmental strategies. Journal
of Accounting and Public Policy, 38(5), 405–427.
De Villiers, C., Hsiao, P. C. K., & Maroun, W. (2017). Developing a conceptual model of
influences around integrated reporting, new insights and directions for future research.
Meditari Accountancy Research, 25(4), 450–460.
Dyllick, T., & Hockerts, K. (2002). Beyond the business case for corporate sustainability.
Business Strategy and the Environment, 11(2), 130–141.
Eccles, R. G., & Krzus, M. P. (2018). The Nordic model: An analysis of leading practices in
ESG disclosure. Nordic Journal of Business, 67(2), 4–25.
Eccles, R. G., Krzus, M. P., & Ribot, S. (2015). The integrated reporting movement: Meaning,
momentum, motives, and materiality. John Wiley & Sons.
European Commission. (2023). Corporate Sustainability Reporting Directive (CSRD).
https://finance.ec.europa.eu
Freeman, R. E. (1984). Strategic management: A stakeholder approach. Pitman.
Garcia, A. S., Mendes-Da-Silva, W., & Orsato, R. J. (2017). Sensitive industries produce better
ESG performance: Evidence from emerging markets. Journal of Cleaner Production,
150, 135–147.
Global
Reporting
Initiative.
(2021).
GRI
Standards
2021
update.
https://www.globalreporting.org/
Gray, R. (2010). Is accounting for sustainability actually accounting for sustainability… and
how would we know? Accounting, Organizations and Society, 35(1), 47–62.
Hahn, R., & Kühnen, M. (2013). Determinants of sustainability reporting: A review of results,
trends, theory, and opportunities in an expanding field of research. Journal of Cleaner
Production, 59, 5–21.
Hahn, R., & Lülfs, R. (2014). Legitimizing negative aspects in GRI-oriented sustainability
reporting: A qualitative analysis of corporate disclosure strategies. Journal of Business
Ethics, 123(3), 401–420.
IFRS Foundation. (2022). International Financial Reporting Standards (IFRS): Standards and
interpretations. https://www.ifrs.org/
IFRS Foundation. (2023). IFRS Sustainability Disclosure Standards—IFRS S1 and IFRS S2.
https://www.ifrs.org/
Ioannou, I., & Serafeim, G. (2019). Corporate sustainability: A strategy? Harvard Business
School Working Paper, 19-065.
KPMG. (2023). The time has come: The KPMG survey of sustainability reporting 2023.
https://home.kpmg/
