3.1 Global Reporting Initiative (GRI) Standards

The Global Reporting Initiative (GRI) Standards are the gold standard for sustainability reporting. They help organizations spill the beans on their economic, environmental, and social impacts. These standards make it easier to compare and improve the quality of sustainability info across the board.

GRI Standards are like a sustainability reporting toolkit. They include universal standards that apply to everyone, plus topic-specific ones for different issues. Companies can pick and choose which standards fit their needs, making reporting more flexible and relevant to their business.

Purpose and Structure of GRI Standards

Overview and Objectives

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• The GRI Standards are the first global standards for sustainability reporting, developed by the Global Sustainability Standards Board (GSSB) to help organizations understand and disclose their impacts on the economy, environment, and society
• The GRI Standards are designed to enhance the global comparability and quality of sustainability information, enabling greater transparency and accountability of organizations

Structural Components

• The GRI Standards are structured as a set of interrelated standards, comprised of three universal standards and three series of topic-specific standards
  • The universal standards include GRI 101: Foundation, GRI 102: General Disclosures, and GRI 103: Management Approach, which apply to all organizations preparing sustainability reports
  • The topic-specific standards are organized into three series: 200 (Economic topics), 300 (Environmental topics), and 400 (Social topics), covering a wide range of sustainability issues (climate change, human rights, diversity and inclusion)
• Organizations can use the GRI Standards to prepare a sustainability report in accordance with the Standards, using either the "Core" or "Comprehensive" option based on the extent of their disclosures
• The GRI Standards follow a modular structure, allowing organizations to select and use only the relevant topic-specific standards that are material to their business and stakeholders (GRI 305: Emissions for companies with significant greenhouse gas emissions)

Applying GRI Standards for Reporting

Materiality Assessment and Topic Selection

• The first step in applying the GRI Standards is to determine the material topics that reflect the organization's significant economic, environmental, and social impacts, or that substantively influence the assessments and decisions of stakeholders
• Organizations should use the GRI Standards to identify and report on their material topics, considering the impacts within and outside the organization, as well as the expectations and interests of stakeholders (investors, employees, local communities)

Reporting Process and Content

• The universal standards (GRI 101, 102, and 103) provide the foundation for preparing a sustainability report, including the reporting principles, disclosures on the organization's profile and approach to sustainability, and the management approach for each material topic
• Organizations should select and report on the appropriate topic-specific standards (series 200, 300, and 400) based on their identified material topics, providing disclosures on the management approach and topic-specific indicators (GRI 405: Diversity and Equal Opportunity for companies prioritizing diversity and inclusion)
• The GRI Standards require organizations to report contextual information about their sustainability performance, such as their strategy, governance, and stakeholder engagement practices, to provide a comprehensive understanding of their impacts and progress
• Organizations should ensure that their sustainability report is balanced, accurate, and reliable, following the reporting principles of accuracy, balance, clarity, comparability, reliability, and timeliness

Evaluating Sustainability Reports with GRI Standards

Comprehensive and Balanced Reporting

• An effective sustainability report based on the GRI Standards should provide a comprehensive and balanced picture of an organization's sustainability performance, enabling stakeholders to assess its impacts and progress
• The report should cover all material topics identified through the organization's materiality assessment, providing sufficient information on the management approach and performance indicators for each topic (GRI 302: Energy for companies with significant energy consumption)

Adherence to Reporting Principles and Quality

• The report should adhere to the reporting principles of the GRI Standards, ensuring that the information is accurate, balanced, clear, comparable, reliable, and timely
• The report should include contextual information about the organization's strategy, governance, and stakeholder engagement practices, demonstrating how sustainability is integrated into its overall operations and decision-making processes
• The report should provide a clear and concise presentation of the organization's sustainability performance, using appropriate visuals, graphics, and metrics to facilitate understanding and comparability (charts showing carbon emissions reduction over time)

Assurance and Continuous Improvement

• The report should be externally assured by an independent third party to enhance its credibility and reliability, providing stakeholders with confidence in the reported information
• The report should demonstrate continuous improvement in the organization's sustainability performance over time, setting ambitious targets and reporting on progress towards achieving them (science-based targets for greenhouse gas emissions reduction)

GRI Standards vs Other Frameworks

Comprehensive and Integrated Approach

• The GRI Standards are the most widely used and comprehensive sustainability reporting framework globally, covering a broad range of economic, environmental, and social topics applicable to all industries and sectors
• Unlike other reporting frameworks that focus on specific sustainability issues or industries, the GRI Standards provide a holistic and integrated approach to sustainability reporting, enabling organizations to report on their material impacts across all dimensions of sustainability (CDP for climate change, GRI for overall sustainability performance)

Multi-Stakeholder Development and Governance

• The GRI Standards follow a multi-stakeholder approach in their development and governance, ensuring that the standards reflect the diverse perspectives and expectations of stakeholders, including businesses, investors, civil society, labor, and policymakers
• The GRI Standards are designed to be used in conjunction with other reporting frameworks and standards, such as the United Nations Global Compact, the Sustainability Accounting Standards Board (SASB), and the Task Force on Climate-related Financial Disclosures (TCFD), providing a comprehensive and complementary approach to sustainability reporting

Emphasis on Management Approach and Stakeholder Engagement

• The GRI Standards require organizations to report on their management approach for each material topic, providing insights into how sustainability is governed and managed within the organization, which is not always required by other reporting frameworks
• The GRI Standards emphasize the importance of stakeholder engagement and materiality assessment in determining the content and boundaries of sustainability reports, ensuring that the reported information is relevant and responsive to stakeholder needs and expectations (employee surveys, community consultations)
• The GRI Standards are regularly updated and expanded to reflect emerging sustainability issues and stakeholder expectations, ensuring that the standards remain relevant and applicable over time (GRI 207: Tax introduced in 2019 to address tax transparency)