The Global Sustainability Standards Board (GSSB) of the Global Reporting Initiative (GRI) and Japan’s Sustainability Standards Board (SSBJ) have formalized their collaboration with a Memorandum of Understanding (MoU). This partnership, established during a meeting in Tokyo, aims to advance sustainability reporting practices and enhance corporate transparency in Japan and globally.
Key Objectives of the MoU:
- Impact Reporting Integration: Explore how disclosures on significant impacts can help companies assess financial risks and opportunities.
- Capacity Building: Develop initiatives for Japanese companies to effectively utilize GRI Standards for corporate disclosures.
- Ongoing Collaboration: Share updates on standard-setting agendas and reporting developments through regular in-person exchanges.
Remarks from Leadership:
- Carol Adams, Chair of the GSSB, emphasized the alignment between the two boards on prioritizing impact reporting. She highlighted the importance of illustrative case studies, with the SSBJ contributing to the development of practical guidance for companies.
- Tomoo Machiba, GSSB Board Member, underscored Japan’s longstanding leadership in sustainability disclosures, noting that most major Japanese companies already use the GRI Standards.
- Yasunobu Kawanishi, Chair of the SSBJ, expressed enthusiasm for the collaboration, reinforcing Japan’s commitment to advancing corporate reporting in line with global trends.
Context and Significance:
The partnership reflects Japan’s strong engagement with sustainability reporting, where 87% of the top 100 companies adopt GRI Standards, according to a 2022 KPMG study. The SSBJ’s upcoming mandatory sustainability disclosure rules and continued voluntary reporting efforts signal a commitment to impactful, globally relevant disclosures.
The GSSB delegation, including Chair Carol Adams and Chief of Standards Bastian Buck, also engaged with key Japanese institutions, such as the Ministry of the Environment and the Securities Analysts Association of Japan, during their Tokyo visit.
Broader Implications:
This collaboration aims to improve the quality of sustainability reporting, reinforce the role of GRI Standards, and address the evolving demands of stakeholders worldwide. The partnership aligns with GRI’s mission to ensure that businesses transparently communicate their impacts and contributions to sustainable development.
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