Non-profits CDP and Global Reporting Initiative (GRI) are teaming up to align areas of their reporting frameworks that could make it easier for companies across the globe to produce their sustainability reports.
The two outfits have signed a memorandum of understanding (MoU) to work together and promote the harmonization and clarification of corporate sustainability reporting guidelines, standards and frameworks.
CDP and GRI will improve the consistency and comparability of environmental data, making corporate reporting more efficient and effective and easing the reporting burden for companies, both firms said in a statement.
This is an important step toward global standardization of how firms disclose their environmental impact to capital markets. By enabling more efficient valuation of natural resources in this way, both organizations said they hope to accelerate progress to a resource-efficient economy.
CDP is a global platform for organisations to disclose and manage their environmental impacts. GRI are providers of the most widely used comprehensive Sustainability Reporting Guidelines in the world.
GRI chief executive Ernst Ligteringen said: “The partnership between GRI and CDP will help bring greater clarification and alignment to reporting and enhance its value for a range of information users, including investors.”
The newly-introduced G4 Guidelines have seen full alignment with CDP on GHG emission indicators. The collaboration will make an important contribution to rebuilding the architecture of corporate market information related to sustainability, he added.
CDP’s CEO Paul Simpson said: “We share the common goal of driving investment decisions and corporate actions to value and protect the Earth’s natural capital. This alignment will enable companies to elicit the maximum benefit from their reporting efforts and encourage more sustainable decisions.”
The MoU details commitment across all levels by both CDP and GRI and includes practical areas for collaboration, such as communications, information exchange and the creation of a joint work plan.
The MoU was signed by both parties on 24 May at the 2013 GRI Global Conference on Sustainability and Reporting that was held in Amsterdam, The Netherlands.