Global Reporting Initiative (GRI) Standards are the world's most widely used framework for sustainability reporting. They provide a set of comprehensive and globally recognized guidelines for organizations to disclose their environmental, social, and governance (ESG) impacts. Reporting with GRI Standards enables organisations to communicate their sustainability performance transparently and consistently, meeting the expectations of stakeholders, including investors, customers, employees, and regulatory bodies.
Why Report with GRI Standards?
Enhanced Transparency: GRI Standards help companies demonstrate their commitment to sustainability by openly reporting on their impacts and management practices.
Stakeholder Trust: Consistent and comparable reporting builds trust among stakeholders, enhancing the company’s reputation and credibility.
Regulatory Compliance: Adhering to GRI Standards can help meet national and international regulatory requirements, including those increasingly mandating ESG disclosures.
Investor Confidence: Transparent ESG reporting attracts investors by showcasing a company's proactive approach to managing risks and opportunities related to sustainability.
Improved Decision Making: Internal stakeholders can use the data gathered from GRI reporting to inform strategic planning and operational improvements.
Reporting Options: In Accordance vs. In Reference
Companies have two primary options for reporting using GRI Standards: "In Accordance" and "In Reference". Each method offers a different level of compliance and comprehensiveness.
Component | In accordance | In reference |
Definition | Comprehensive reporting using GRI standards, covering all applicable disclosures and adhering to all requirements. | Selective reporting using specific GRI standards and disclosures that are relevant to the organisation. |
Use of GRI Standards | Must use all Universal Standards (GRI 1, GRI 2, GRI 3) and report on applicable Topic Standards. | Can selectively use certain GRI Standards and disclosures without full compliance with GRI 1, GRI 2, and GRI 3. |
Scope of Reporting | Full coverage of the organization's most significant impacts, including economic, environmental, and social topics. | Limited to specific areas or topics that the organization finds relevant or important. |
Core vs. Comprehensive Option | Two levels: "Core" (basic set of disclosures) and "Comprehensive" (more extensive disclosures). | No specific levels; organizations select relevant GRI Standards or disclosures without needing to comply with the complete framework. |
Compliance Requirements | - Apply reporting principles | - Publish a GRI content index |
Important Note: Materiality Assessment Differences
It's important to note that the Materiality Assessment under GRI differs from the requirements of the Corporate Sustainability Reporting Directive (CSRD). While GRI focuses on identifying the most significant impacts on the economy, environment, and people, CSRD might require a different scope and approach. This difference can lead to the potential need for conducting separate materiality assessments for both GRI and CSRD compliance, which could result in double work. Organisations should plan accordingly to streamline their reporting processes.
Get Started with KEY ESG
Ready to start your GRI reporting journey? Contact the KEY ESG team for expert guidance and support. Use the in-app chat function or email us directly at support@keyesg.com. We're here to help you navigate GRI Standards and enhance your sustainability reporting.