iNTRODUCTION
The GRI Standards are a modular system of interconnected standards. They allow organizations to publicly report the impacts of their activities in a structured way that is transparent to stakeholders and other interested parties.
The GRI Standards empower organizations of any size or type, whether public or private, to comprehensively understand and communicate their effects on the economy, environment, and society in a manner that is both comparable and credible. This foster increased transparency regarding their contributions to sustainable development. Beyond just companies, these Standards hold significant relevance for various stakeholders such as investors, policymakers, capital markets, and civil society.
WHO USES GRI STANDARDS
Who uses the GRI Standards, and who uses the reported information?
Any organization, large or small, public or private, from any sector or location, can use the GRI Standards. Reporters, stakeholders, and other information users draw on the Standards.
STRUCTURE OF GRI STANDARDS
The GRI Standards are a modular system comprising three series of Standards: the GRI Universal Standards, the GRI Sector Standards, and the GRI Topic Standards. Each Standard begins with a detailed explanation of how to use it
The Standards contain disclosures, which provide a structured means for an organization to report information about itself and its impacts.
Crafted for ease of use, the Standards constitute a modular framework that presents a holistic view of an organization's material topics, their associated impacts, and the strategies employed for management.
[1] The GRI Universal Standards, which have been updated to encompass reporting on human rights and environmental due diligence as per international expectations, are applicable to all types of organizations.
The GRI Universal Standards apply to all organizations, and consist of the following:
GRI 1: Foundation 2021 (GRI 1) outlines the purpose of the GRI Standards, clarifies critical concepts, and explains how to use the Standards. It lists the requirements that an organization must comply with to report in accordance with the GRI Standards. It also specifies the principles – such as accuracy, balance, and verifiability – fundamental to good-quality reporting.
GRI 2: General Disclosures 2021 (GRI 2) contains disclosures relating to details about an organization’s structure and reporting practices; activities and workers; governance; strategy; policies; practices; and stakeholder engagement. These give insight into the organization’s profile and scale, and help in providing a context for understanding an organization’s impacts.
GRI 3: Material Topics 2021 (GRI 3) explains the steps by which an organization can determine the topics most relevant to its impacts, its material topics, and describes how the Sector Standards are used in this process. It also contains disclosures for reporting its list of material topics; the process by which the organization has determined its material topics; and how it manages each topic.
[2] GRI Sector Standards: The newly introduced Sector Standards facilitate more consistent reporting on impacts specific to various sectors.
GRI Sector Standards The GRI Sector Standards intend to increase the quality, completeness, and consistency of reporting by organizations. Standards will be developed for 40 sectors, starting with those with the highest impact, such as oil and gas, agriculture, aquaculture, and fishing.
[3] GRI Topic Standards, tailored for use alongside the revised Universal Standards, outline disclosures pertinent to specific subjects.
GRI Topic Standards The GRI Topic Standards contain disclosures for providing information on topics. Examples include Standards on waste, occupational health and safety, and tax. Each Standard incorporates an overview of the topic and disclosures specific to the topic and how an organization manages its associated impacts. An organization selects those Topic Standards that correspond to the material topics it has determined and uses them for reporting.
THE REPORTING PROCESS
The Reporting Process The foundation of sustainability reporting is for an organization to identify and prioritize its impacts on the economy, environment, and people - to be transparent about their impacts.
GRI 1 is the starting point for all organizations reporting using the GRI Standards in that it lays out key concepts and principles, and lists the requirements for reporting in accordance with the GRI Standards. Identifying and assessing impacts Identifying its impacts and assessing their significance is part of an organization’s day-to-day activity, which varies according to its specific circumstances.
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