Strengthened disclosure can unlock sustainable finance agenda
Published date: 05 December 2024
UN paper guiding the ‘Financing for Development’ negotiations recommends sustainability reporting based on GRI and ISSB
Negotiations have begun in preparation for the United Nations’ Fourth International Conference on Financing for Development (FfD4), with GRI taking an active role to engage in the debate on how comprehensive sustainability reporting can play a greater role in aligning finance with sustainable development.
The Elements Paper for FfD4 outlines proposals for sustainable development financing, reflecting priorities voiced by UN Member States, international organizations, civil society and others. It will serve as the foundation for the FfD4, to be held late June in Spain in 2025, which will seek to achieve an inter-governmentally negotiated outcome.
The base paper includes the recommendation that organizations ‘adopt sustainability disclosure legislation based on double materiality to enhance transparency on the SDGs, by transposing standards of the International Sustainability Standards Board (ISSB) and Global Reporting Initiative (GRI) in parallel.’
Following an invitation from the Expert Meeting on Sustainable Business & Finance in preparation for FfD4, GRI joined the UN Development Program (UNPD) in co-hosting an official side event in New York this week. Focussed on how to advance policy measures to align finance with sustainability, it explored the role of corporate reporting in addressing materiality, investor expectations and global value chain resilience.
During the event, GRI partnered with the ISSB and the Global Impact Investing Network (GIIN) to deliver a session on how to create a global comprehensive corporate disclosure system – one that ensures companies consider both perspectives of materiality, to reflect the full picture of their impacts, risks and opportunities.
We warmly welcome this opportunity to lead the conversation on comprehensive corporate reporting, which is an outcome of the preparatory expert group meeting hosted by the UN, and will pave the road for FfD4. Laying the foundations for more sustainable financing mechanisms is a key step toward fulfilling the 2030 Agenda. Understanding corporate impacts, risk and opportunities will help redirect capital towards more sustainable outcomes, with the combination of GRI and ISSB Standards ensuring more comprehensive and effective reporting.”
Peter Paul van de Wijs, Chief Policy Officer at GRII am encouraged to see this discussion on sustainable business and finance happening during the 2nd Preparatory Committee for the FfD4. To be held in Seville in June 2025, FfD4 provides a timely global platform to advance the interoperability of sustainable finance legislation, offering much-needed clarity on the sustainability mandates of businesses and investors. As the financing agenda for the SDGs, FfD4 is the ideal forum to call for SDG impact to be placed at the core of sustainable finance measures. As outlined in the elements paper, this includes advocating for a double materiality lens in sustainability disclosure and promoting policies that embed sustainability in the governance, operations and supply chains of organizations. As a UN process, FfD4 must ensure no country is left behind or overburdened by sustainable finance legislation.”
Shari Spiegel, Director, Financing for Sustainable Development, UN-DESAThe governance of sustainable finance is at a crossroads. We have the tools and principles to align global financial systems with sustainability, but without stronger coordination, we risk inefficiencies and missed opportunities. Now is the time to act collectively for greater alignment and impact."
Marcos Mancini, Global Head Sustainable Finance PolicyAs we move forward in the evolution of sustainable finance and investing, it is important to build on the tools and resources that have been developed over many years and demonstrated their relevance. We're proud to work with partners like GRI as we continue to focus on scaling impact investing with integrity in order to effectively and efficiently mobilize capital towards solutions to the world's most urgent challenges."
Sean Gilbert, Chief Investor Network Officer with GIINThe public sector plays a unique and vital role in driving sustainable development, from setting policies and regulations to mobilizing resources. The IPSASB is committed to developing Sustainability Reporting Standards (IPSASB SRS) that address the distinctive challenges and opportunities of the public sector. Aligning IPSASB SRS Standards with the ISSB and GRI Standards will strengthen the public sector's disclosure practices and help direct the sustainable finance necessary to drive progress toward the 2030 Agenda for Sustainable Development."
Dave Warren, Director of the International Public Sector Accounting Standards Board (IPSASB)The FfD4 in 2025, organized by the UN Department of Economic and Social Affairs (UN-DESA), will focus on evaluating progress on past financing for development commitments, addressing emerging challenges, and accelerating efforts toward achieving the 2030 Agenda for Sustainable Development. It will also explore reforms to the international financial architecture to better align with the SDGs.