Sustainability Reporting: Comparative Analysis between Companies that Adopt GRI Standards and Those that Follow Only IFRS
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.