Understanding Sustainability Reporting Frameworks: A Look at the Global Reporting Initiative (GRI)
There are huge benefits for companies committed to environmental, social, and governance (ESG) to publish accurate annual reports: strengthened credibility amongst stakeholders, enhanced brand reputation, increased employee wellbeing, improved customer loyalty…not to mention positive progress toward supporting people and protecting the planet. What’s not so clear, however, is understanding the sustainability reporting landscape and determining the framework(s) best for your business.
In this article, we’ll explore the most commonly used reporting framework: the Global Reporting Initiative (GRI). As an independent, international organization, GRI enables any company (large or small, private or public) to understand and report on their impacts on the economy, environment, and people in a structured, comparable, and credible way.
Which companies should align to GRI?
Currently used by over 10,000 companies in over 100 countries, GRI is a widely accepted and leading international standard to guide companies reporting on their ESG efforts.
73% of the largest 250 companies in the world reporting on sustainability use GRI
67% of the largest 100 companies (across 52 countries) reporting on sustainability use GRI
The framework can be used by any business or organization, regardless of size, ownership, industry, location, or reporting history–including large multinational corporations, small and medium sized business, nonprofit organizations, government entities, and international organizations.
Details on GRI Standards and the reporting process
The process for reporting using GRI begins with identifying which reporting topics reflect significant economic, environmental, and social impacts (or the ‘material’ topics). By identifying these material topics, organizations are able to create reports that focus on the impacts of their activities and operations and meet the demands of stakeholders.
Here’s some more detail: By utilizing the GRI Standards–a modular system comprising three series: the GRI Universal Standards, the GRI Sector Standards, and the GRI Topic Standards–organizations can fully bring their ESG commitments and progress to life.
Applying to all organizations, GRI Universal Standards consist of:
GRI 1: Requirements that an organization must comply with to report in accordance with GRI standards–plus principles fundamental to quality reporting (e.g., accuracy, balance, and verifiability).
GRI 2: Insights into an organization’s profile and scale (e.g., activities and workers, governance, and stakeholder engagement).
GRI 3: Disclosures on the organization’s material topics (i.e. topics that represent an organization’s most significant impacts on the economy, environment, people, and human rights).
The GRI Sector Standards increase the quality, completeness, and consistency of an organization’s report. These Standards, when available and applicable to the reporting company, support determination of material topics and what to report on each topic. Standards have been developed for 40 sectors, beginning with those with the highest impact, like oil and gas, agriculture, and fishing.
Lastly, the GRI Topic Standards contain disclosures for providing information on topics (e.g., waste, occupational health and safety). Each of these Standards incorporates an overview of the topic as well as how an organization manages its associated impacts. Organizations select Topic Standards according to its list of determined material topics.
Once this detail has been determined, organizations can begin gathering all of the relevant data and crafting the report. By using GRI Standards, organizations can report in a way that covers either all of its most significant impacts or focus only on specific topics, such as climate change. Though GRI recommends reporting on all material topics and how they’re managed in accordance with GRI Standards, if an organization decides to only include specific information for particular topics, it can report with reference to GRI Standards.
Reports using GRI Standards can be published in various formats (e.g., electronic, paper-based) and shared across one or more locations (e.g., standalone sustainability report, webpages, annual report). The content must include a GRI index, which makes reported information traceable and increases the report’s credibility and transparency.
Benefits of GRI
For companies looking to report on their ESG work, GRI has a lot to offer. In addition to a flexible structure that’s designed for any organization, a few benefits of the framework include:
Compatible with other reporting frameworks: GRI collaborates with other organizations for unified global reporting. Companies can utilize the Standards in combination with various other frameworks, such as the International Integrated Reporting Framework and the SASB industry standards.
Aligned with best practices for impact reporting: GRI is in line with global guidelines for ethical business practices such as the UN Guiding Principles on Business and Human Rights. Organizations can also use the Standards to report on their impacts and progress on the UN Sustainable Development Goals.
Updated to reflect latest developments: GRI is regularly reviewed to update existing topics and include new issues, helping organizations respond to emerging stakeholder and regulator demands for sustainability information.
Now what?
At Uplift, we know that reporting is about more than telling a good story. Credibility is key: companies must be confident that their report will stand up to scrutiny and minimize the risk of greenwashing, while reflecting the hard work put into ESG efforts.
But knowing where to start and choosing the right framework can be challenging. That’s where we come in. As a trusted partner in ESG advisory services, our team of sustainability, social impact, and communications experts can help you navigate the reporting landscape and determine what’s best for your business. Reach out to learn more.
The Uplift Agency
Uplift builds strategies, programs, and communication campaigns that advance ESG in workplaces, supply chains and communities.
We know how to navigate the road ahead because we’ve already been down it – 90 percent of our team has led environmental or social programs in corporations or nonprofits. Because ESG is all we do, our services are more comprehensive and integrated than most firms.
