The Global Reporting Initiative (GRI) is a non-profit organization that promotes sustainability reporting and provides a framework for companies to report on their economic, environmental, and social performance. The GRI was established in 1997 with the aim of increasing transparency and accountability in corporate sustainability reporting.
The GRI Standards are the most widely used sustainability reporting standards globally. They are used by companies of all sizes and sectors to report on their sustainability performance. The GRI Standards provide a common language and a framework for companies to report on their sustainability impacts and opportunities, as well as their management approach to sustainability issues.
The GRI Standards cover a wide range of topics, including governance, human rights, labor practices, environmental impacts, and community engagement. The standards are updated regularly to reflect emerging issues and stakeholder expectations. The GRI also provides guidance and support to companies on how to implement the standards and improve their sustainability reporting.
History of GRI
Established in 1997, the GRI was founded by two non-profit organizations, Ceres and the Tellus Institute, with the backing of the United Nations Environment Program (UNEP) to promote sustainability reporting by companies worldwide.
Some key dates for the establishment and growth of the GRI Standard include:
- 1997: Founded following the Exxon Valdez oil spill
- 2000: Released first full draft of the Sustainability Reporting Guidelines
- 2008: GRI establishes their Certified Training Partner Program
- 2016: The GRI Standards launched
- 2019-2021: GRI launches the Sector Program, Tax Standard, Waste Standard, GRI Sector Standard, and the Revised Universal Standards
The objective of the GRI is to provide a systematic and rigorous approach for companies and third parties to evaluate environmental impact, which is widely recognized by others.
The GRI Standards, the initial universally accepted standard for sustainability reporting, are established by the Global Sustainability Standards Board (GSSB), a self-regulating entity that consists of 15 members.
The first GRI Sustainability Reporting Guidelines were released in 2000, and since then, the GRI has become a widely recognized standard for sustainability reporting.
The GRI has released various versions of its guidelines since 2000, with the latest being the GRI Standards released in 2016. The GRI Standards are designed to help organizations report on their sustainability impacts using a standardized approach, ensuring consistency and comparability of sustainability reporting across different organizations and sectors.
The GRI Standards cover a range of topics, including governance, ethics, human rights, labor practices, the environment, and social impacts. They provide a framework for organizations to disclose their sustainability impacts and performance in a comprehensive and standardized manner, allowing stakeholders to make informed decisions based on reliable information.
Today, the GRI Standards are widely used by companies, governments, and other organizations to report on their sustainability performance, and the GRI is recognized as one of the leading sustainability reporting standards globally.
Evolution of GRI today
The GRI Standards are still widely recognized and used as a framework for sustainability reporting by organizations across different sectors and industries. These standards are designed to provide a comprehensive approach to sustainability reporting, including economic, environmental, and social aspects.
The GRI Standards are also aligned with other reporting frameworks and initiatives, such as the United Nations Sustainable Development Goals (SDGs) and the Task Force on Climate-related Financial Disclosures (TCFD), to ensure consistency and comparability in sustainability reporting.
In response to demands for clarity in sustainability reporting In September of 2020, the GRI joined with the SASB, CDP, CDSB, and IIRC to develop a single set of comprehensive and global reporting standards.
Moreover, the GRI Standards have been updated over time to reflect changes in global sustainability challenges and stakeholder demands. The most recent version, GRI Standards Version 2021, was released in October 2021 and includes new and revised disclosures on topics such as human rights, diversity and inclusion, and climate change.
In 2020, the GRI and SASB initiated a collaborative effort aimed at providing guidance to stakeholders on how to effectively integrate GRI Standards and SASB Standards in sustainability reporting. As part of this initiative, they recently released a Practical Guide to Sustainability Reporting that offers practical insights on using both frameworks together, which was published in April 2021.
Overall, the GRI Standards remain an important tool for organizations to communicate their sustainability performance and impact to their stakeholders, including investors, customers, employees, and civil society organizations.
How widely used is GRI?
The GRI Standards continue to dominate the sustainability reporting landscape as the most commonly used framework.
According to the 2020 KPMG Survey of Sustainability Reporting, which analyzed the sustainability reporting practices of the world’s largest 250 companies (the G250), the GRI Standards are the only reporting framework that is widely adopted globally. The survey also revealed that 73% of the G250 and 67% of the N100 companies use the GRI Standards as of 2020.
Despite its continued popularity, there is a growing trend towards collaboration and harmonization between leading sustainability reporting frameworks, suggesting that standards will be used together in a complementary manner rather than in competition in the future.
Limitations of GRI
Compared to other reporting frameworks such as the SASB, the GRI has a topic-based reporting structure, which limits its specificity despite being modular.
While the GRI Standards are modular, their guidance is still more general in nature than other frameworks like the SASB. The SASB provides detailed instructions on disclosure topics and activity metrics at a granular level, whereas the GRI has a wider but less in-depth scope.
GRI does not offer a report registration system
It is worth noting that the GRI does offer a Report Registration System. It’s function is limited to verifying whether the report contains the appropriate claim language and ensuring that the information provided through the system aligns with the registered report. However, the system does not assess the actual content of the report.
