How to use GRI standards for ESG Reporting
The Global Reporting Initiative (GRI) Standards provide a framework for organisations to report on their environmental, social, and governance (ESG) impacts. This guide outlines the steps to effectively utilise the GRI Standards for ESG reporting.
1. Understand the structure of the GRI Standards
The GRI Standards are organized into a modular system comprising three series:
Universal Standards
Applicable to all organizations, these include:
- GRI 1: Foundation 2021
Provides the purpose, system, and reporting principles of the GRI Standards.
- GRI 2: General Disclosures 2021
Covers information about the organization’s structure, governance, and practices.
- GRI 3: Material Topics 2021
Guides organizations in identifying and reporting on material topics.
Sector Standards
Tailored for specific industries, these standards highlight sector-specific impacts and guide relevant disclosures.
Topic Standards
Focused on specific ESG topics, these standards provide detailed disclosures for each identified material topic.
2. Determine Material Topics
Material topics reflect significant impacts on the economy, environment, and people, including human rights:
Engage Stakeholders
Consult with internal and external stakeholders to understand their concerns and expectations.
Assess Impacts
Evaluate the organization’s activities to identify significant economic, environmental, and social impacts.
Prioritize Topics
Focus on topics that are most significant to stakeholders and the organization’s sustainability context.
3. Use the Applicable Standards
Once material topics are identified:
Universal Standards
Apply GRI 1, GRI 2, and GRI 3 to provide a foundation and general disclosures.
Sector Standards
If available for your industry, use the relevant Sector Standard to address sector-specific impacts.
Topic Standards
For each material topic, use the corresponding Topic Standard to guide specific disclosures.
4. Prepare the ESG Report
Compile the information following the GRI Standards’ structure:
- Introduction
Outline the organization’s commitment to sustainability and the purpose of the report.
- General Disclosures
Provide information on the organization’s profile, governance, and stakeholder engagement as guided by GRI 2.
- Material Topics
For each material topic, disclose management approaches and specific metrics as outlined in the relevant Topic Standards.
Ensure the report adheres to GRI’s reporting principles, including accuracy, balance, clarity, comparability, reliability, and timeliness.
5. Declare the reporting approach
Organizations can declare their ESG report as:
‘In accordance’ with the GRI Standards
This indicates full compliance with the GRI Standards requirements.
‘With reference’ to the GRI Standards
This indicates partial use of the GRI Standards, focusing on specific topics.
6. Review and improve
After publishing the ESG report:
Seek Feedback
Gather input from stakeholders to identify areas for improvement.
Continuous Improvement
Use the feedback to enhance future reporting processes and sustainability performance.
