In this article we describe GRI, its background and purpose, as well as its processes and methods.
Getting started
GRI stands for Global Reporting Initiative. As an organization, they have helped set the standard for sustainability reporting.
GRI started back in 1997, with headquarters in Boston, Massachusetts. In 2002, the headquarters moved to Amsterdam, the Netherlands, where they are still located. Originally, the organization was created by CERES (an American non-profit organization) and the United Nations Environment Programme (UNEP). From the start, its purpose has been to help companies and organizations report on sustainability. GRI was among the first to develop reporting standards for financial, social and climate responsibility, and governance issues. They were one of the first to introduce sustainability reporting and thus the start of ESG. Their guidelines have helped to strengthen transparency in companies and organizations and ensure that sustainability is in focus.
Source: https://www.globalreporting.org/about-gri/mission-history/
GRI Standards
The GRI framework consists of a number of standards covering different aspects of sustainability:
- GRI 101: Foundation - This is the starting point for all reports and provides guidance on how to apply the standards.
- GRI 102: General Disclosures - Here you can find information about the organization's profile, strategy, ethics and integrity, and governance structure.
- GRI 103: Management Approach - Describes how an organization manages its material impacts.
- Topic-specific standards - These include GRI 200 (economic topics), GRI 300 (environmental topics) and GRI 400 (social topics).
Companies that want to report in accordance with GRI follow these standards by identifying relevant topics, collecting data, analyzing performance and publishing reports.
For years, GRI has set the international framework for how sustainability reporting should be. The reason they exist is to give companies the tools to address the impact they have on both society and the environment. In an ever-changing world, it's important that their guidelines are updated with the different needs of different industries and how they report on it. This emphasizes that climate strategy work is a continuous process and never a finished piece of work.
Opportunities and benefits
Although GRI is a useful tool for many companies and organizations, using their guidelines can also come with a number of challenges. These include gathering information, implementing initiatives across the organization, the cost of implementation, and maintaining continuity in reporting.
Following the GRI standards offers several benefits for your business. These include, among others:
- Increased transparency: It gives stakeholders a clear picture of the company's sustainability performance.
- Improved risk management: Businesses can better identify and manage risks associated with environmental and social impacts.
- Enhanced credibility: A transparent reporting process can strengthen a company's reputation and credibility among customers, investors and other stakeholders.
- Comparability: GRI standards enable comparison across companies and sectors, which is beneficial for investors and analysts.
By reporting in accordance with the GRI standard, companies increase transparency around their performance and practices. This builds trust and increases credibility with stakeholders, stakeholders and society in general. It shows that you are actively doing something for sustainability and future generations.
The GRI standard provides a structured approach to reporting, enabling stakeholders to compare company performance across sectors and regions. This is essential for benchmarking and identifying best practices, and the various guidelines help companies integrate sustainability into their business strategy and management practices. By identifying and understanding their impact, companies can better manage the risks and opportunities associated with sustainability.
There is a need for a common language around sustainability, otherwise we risk disagreeing on what sound reporting looks like, which will ultimately have consequences for both society and the climate. With the help of GRI's standards and guidelines, we get just that common language. That's why it's important to follow GRI and know what it means when working with sustainability reporting.
Learn more about the Global Reporting Initiative (GRI) and how to get started here.
.jpg)
