UN Paper Recommends GRI and ISSB Standards for Sustainable Finance Framework at FfD4

Preparations are underway for the United Nations Fourth International Conference on Financing for Development (FfD4), set to take place in June 2025 in Seville, Spain. A recently published Elements Paper will guide these negotiations, emphasizing the critical role of sustainability reporting in aligning finance with the Sustainable Development Goals (SDGs).

The paper recommends that nations adopt sustainability disclosure legislation based on the principle of double materiality. This approach incorporates both the financial and societal impacts of corporate actions, leveraging the globally recognized standards of the Global Reporting Initiative (GRI) and the International Sustainability Standards Board (ISSB) to enhance transparency and accountability.

GRI has been actively engaging in these discussions, co-hosting an official side event with the United Nations Development Program (UNDP) in New York. This event explored policy measures to better align financial systems with sustainability and featured key partnerships with the ISSB and the Global Impact Investing Network (GIIN). Sessions emphasized creating a global, comprehensive corporate disclosure system to address materiality, investor expectations, and value chain resilience.

Stakeholder Insights

• Peter Paul van de Wijs, Chief Policy Officer, GRI:
  “Comprehensive corporate reporting lays the foundation for sustainable financing mechanisms, redirecting capital toward sustainable outcomes and supporting the 2030 Agenda.”
• Shari Spiegel, Director, Financing for Sustainable Development, UN-DESA:
  “FfD4 provides a timely platform to advance the interoperability of sustainable finance legislation, ensuring that SDG impact is central to global finance measures while avoiding undue burdens on any nation.”
• Marcos Mancini, Global Head of Sustainable Finance Policy:
  “Stronger coordination is essential to align global financial systems with sustainability, maximizing opportunities for impact.”
• Sean Gilbert, Chief Investor Network Officer, GIIN:
  “Mobilizing capital with integrity through scalable impact investing is vital to addressing the world’s most urgent challenges.”

The FfD4 conference is poised to advance global efforts to integrate sustainability into financial systems, creating a robust framework that drives progress toward the SDGs. The recommendations from these discussions aim to promote policy alignment, enhance governance, and facilitate sustainable development financing globally.