Corporate ESG Disclosure Becomes Easier as Two Frameworks Align

Thousands of companies will find it easier to make first-time disclosures about their impact on people and the planet after two leading reporting initiatives agreed to align requirements.

The European Financial Reporting Advisory Group (EFRAG), which develops the reporting standards for the European Union, and the Global Reporting Initiative said they would ensure that reporting under one framework can be used to meet requirements under the other.

Thursday’s agreement will mean “minimal additional compliance burden” for the more than 14,000 publicly traded and non-listed companies that now voluntarily report their impact on the environment and society, said Eelco Van der ...