ISSB and GRI are two of the most widely used frameworks for sustainability reporting.
While both aim to improve transparency, they focus on different aspects of ESG disclosure. Understanding how they differ is key to choosing the right approach for your organization.
ISSB is designed to align sustainability reporting with financial performance and investor needs. GRI, on the other hand, provides a broader view of how organizations impact the environment and society.
In this guide, we’ll walk through the key differences between ISSB and GRI, how each framework is structured, and when to use one or both.
Key Takeaways
- What ISSB focuses on: ISSB is designed to provide investor-focused sustainability disclosures, helping assess financial risks and opportunities tied to ESG factors.
- What GRI focuses on: GRI enables organizations to report on their broader environmental, social, and governance impacts for a wide range of stakeholders.
- The core difference in materiality: ISSB applies financial materiality, while GRI uses impact (double) materiality to capture both financial and societal effects.
- How the frameworks are structured: ISSB aligns with IFRS standards for consistency in financial reporting, while GRI uses a modular system of Universal, Sector, and Topic Standards.
- How disclosures are defined: GRI distinguishes between required disclosures and recommended practices, offering flexibility in how organizations report their impacts.
- Why many companies use both: Organizations often combine ISSB and GRI to cover both investor expectations and broader transparency requirements.
What Is the International Sustainability Standards Board (ISSB)?
The International Sustainability Standards Board (ISSB) is an independent private body that operates under the surveillance of the International Financial Reporting Standards Foundation. It is involved in developing and approving the IFRS sustainability disclosure standards.
The board will be made up of:
- three members from the Asia-Oceania region,
- three members from Europe,
- three members from the Americas,
- one from Africa, and
- four members appointed from any area, making a total of fourteen members.
The ISSB is responsible for all sustainability-related technical matters of the IFRS Foundation which include preparing and issuing sustainability disclosure standards and exposure drafts following the due process described in the constitution and full control in developing and pursuing its technical agenda, subject to certain consultation requirements with the Trustees and the public.
What is the Global Reporting Initiative?
The Global Reporting Initiative is an international, independent standards organization that helps businesses, governments, and other organizations communicate their impacts on issues such as climate change, human rights, and corruption. It aims to enable third parties to assess the environmental impact of the activities of the company and its supply chain.
What are GRI Standards & What are their series?
The GRI Standards are a modular system comprising three series of Standards:
- The GRI Universal Standards,
- The GRI Sector Standards, and
- The GRI Topic Standards.
Each Standard begins with a detailed explanation of how to use it.
The Standards contain disclosures, which provide organized means for organizations to report information about themselves and their impacts.
The disclosures can have requirements and can also include recommendations. Requirements list the information an organization must report or instructions it must comply with and report by the GRI Standards. Recommendations indicate that certain information, or a specific course of action, is encouraged but is not mandatory.
The Key Differences Between ISSB Reporting and GRI Standards
While ISSB and GRI both support sustainability reporting, they differ in focus, audience, and approach.
The table below highlights the key distinctions to help you quickly understand how each framework is used in practice.
| Aspect |
ISSB |
GRI |
| Focus |
Financially material ESG risks and opportunities |
Environmental and social impact |
| Audience |
Investors and financial stakeholders |
Broad stakeholders |
| Materiality |
Financial materiality |
Double (impact) materiality |
| Purpose |
Support investment decision-making |
Provide impact transparency |
| Structure |
IFRS-aligned standards |
Modular system (Universal, Sector, Topic) |
| Reporting approach |
Standardized, investor-focused disclosures |
Mix of required and recommended disclosures |
| Best use |
Financial reporting and investor communication |
ESG reporting and stakeholder transparency |
These differences show that ISSB and GRI serve complementary roles rather than competing ones.
Choosing the right framework or combining both depends on whether your priority is investor-focused reporting, broader ESG transparency, or both.
GRI Universal Standards
The GRI Universal Standards apply to all organizations, and consist of the following:
• GRI 1: delineates the objectives of the GRI Standards, clarifies critical concepts, and explains how to use the Standards. It lists the requirements that an organization must comply with to report by the GRI Standards.
• GRI 2: contains disclosures relating to details about an organization’s structure and reporting practices; activities and workers; governance; strategy; policies; practices; and stakeholder engagement. These give insight into the organization’s profile and scale and help in providing a context for understanding an organization’s impacts.
• GRI 3: clarifies the steps by which an organization can specify the topics most related to its impacts, its material topics, and interprets how the Sector Standards are used in this process.
GRI Sector Standards
The GRI Sector Standards intend to boost the quality, integrity, and consistency of reporting by organizations. The Standards list issues that are likely to be essential for most organizations in a given sector and suggest related disclosures to report on these topics.
GRI Topic Standards
The GRI Topic Standards contain disclosures for providing information on topics. Examples include Standards on waste, occupational health and safety, and tax. Each Standard incorporates an overview of the topic and disclosures specific to the topic and how an organization manages its associated impacts.
TL;DR — ISSB vs GRI at a Glance
| Topic |
Key Point |
| What it is |
Two leading sustainability reporting frameworks that help organizations disclose ESG information in a structured way |
| Who it helps |
ISSB supports investors and financial stakeholders; GRI supports a broader group, including regulators, customers, and the public |
| Core difference |
ISSB focuses on financial materiality and investor decision-making; GRI focuses on environmental and social impact transparency |
| Reporting focus |
ISSB aligns sustainability with financial performance; GRI emphasizes organizational impact on society and the environment |
| Structure |
ISSB is aligned with IFRS standards; GRI uses a modular system of Universal, Sector, and Topic Standards |
| Best practice |
Many organizations use both frameworks to balance investor expectations with full ESG transparency |
| Bottom line |
ISSB helps investors understand financial risk, while GRI helps stakeholders understand real-world impact; together, they provide complete sustainability reporting |
Final Thoughts
ISSB and GRI address different aspects of sustainability reporting, but together they provide a more complete picture.
While ISSB focuses on financial relevance for investors, GRI ensures transparency of broader ESG impacts.
Using both allows organizations to strengthen reporting quality and meet diverse stakeholder expectations.
About the Author
Matthew Morookian
Senior Director of Product Marketing, apexanalytix
Matthew Morookian is Senior Director of Product Marketing at apexanalytix, with over 7 years of experience helping finance and procurement teams understand how to protect and recover company revenue. His work spans product positioning, content strategy, and go-to-market programs focused on audit, risk, and supplier management solutions.
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