Streamlining Sustainable Business Disclosures Using the Global Reporting Initiative (GRI) Framework

What is the Global Reporting Initiative?

The Global Reporting Initiative (GRI) is a reporting standard that works with international entities to enable them to report on various sustainability issues. It’s a not-for-profit organization based on a network. The GRI standards can be utilized by businesses of any size, policymakers, investors, financial institutions, and more. It includes reporting on the organization’s impact on people, the environment, and the economy worldwide. 

There are 14,000+ reporting entities in over 100 countries that use GRI standards for their preferred sustainability reporting system. The GRI standards are set by the Global Sustainability Standards Board (GSSB). It’s the most widely used reporting system internationally. GRI was created with the idea that anyone should be able to report on their sustainability. 

This blog post will capture the history of how the GRI was formed, why companies should be using a sustainability reporting framework, and some facts to know about the GRI reporting standards.

The background of the GRI

The GRI was created in the late 1990s, emerging from the growing need for a standardized framework to guide organizations. Here's a brief summary of its history:

In 1997 the GRI was founded with the support of the Coalition for Environmentally Responsible Economies (CERES) and Tellus, in partnership with the United Nations Environment Programme (UNEP) to enhance international comparability and quality of sustainability reporting. This came after the Exxon Valdez oil spill in 1989 that dumped 11 million gallons of crude oil into the Alaskan Gulf. A team of socially responsible investors, environmentalists, and non-profit organizations decided to form the coalition to keep organizations accountable for their actions and prevent a disaster like that from happening again.

In 1999, the GRI released its first sustainability reporting guidelines, marking a notable step forward in providing a framework for voluntary reporting on environmental, social, and governance (ESG) performance.

Between 2000-2006, the GRI grew from a project within CERES into an independent institution, establishing its Secretariat in Amsterdam. During this time, the GRI developed and updated its guidelines, with the G2 Guidelines released in 2002 and the G3 Guidelines in 2006, each one expanding and getting better than the last one.

The G3 Guidelines introduced application levels, which empowered organizations to approach full compliance at a suitable speed, improving flexibility and fostering wider adoption. The G3.1 Guidelines of 2011 provided additional guidance and clarified reporting on gender, communities, human rights, and other important areas.

Acknowledging the need for a more intensive framework in 2013, the GRI began transitioning from guidelines to standards.

In 2016, the GRI Standards were released, replacing the G4 Guidelines. These standards are modular and interrelated, with the purpose of being used by organizations of any size, sector, or location. They marked a pivotal moment for global best practices for sustainability reporting.

Since 2016 the GRI has continued to modify and enrich the Standards in response to changing  sustainability challenges worldwide and growing stakeholder expectations. This includes sector-specific standards and updates to address continuous issues such as climate change, human rights, and waste management.

Ultimately, the GRI in its current state reflects broader trends in corporate sustainability, including a heightened demand for transparency, the integration of sustainability into core business strategies, and the growing recognition of the significance of sustainability issues to long-term business success and societal well-being.

Why should organizations report to the GRI?

Reporting to the GRI is beneficial for organizations because it’s a voluntary way to promote sustainability and transparency. Here are some key reasons why an organization should consider reporting to the GRI:

Competitive advantage - Organizations that report to the GRI enhance their reputation by demonstrating ongoing corporate social responsibility. This leads to a competitive advantage by differentiating the organization in the marketplace as one with a sustainable reputation. 

Supporting the UN Sustainable Development Goals (SDGs) - GRI reporting enables organizations to align their sustainability efforts with the SDGs, contributing to global priorities and spotlighting their commitments to broader goals.

Brand value creation - Focusing on sustainability issues and reporting to the GRI drives innovation and efficiency, reduces company costs, and creates value recognition for the organization over the long term.

Transparency - GRI reporting highlights the organizations’ impacts on critical sustainability issues such as climate change, human rights, and corruption. This openness builds trust amongst stakeholders, employees, and the community.

Stakeholder engagement - It begins a dialogue with stakeholders by providing a standardized set of indicators against which entities can measure and report their economic, environmental, and social performance. Involving stakeholders in this manner can help identify and address concerns and expectations, fostering deeper relationships.

Target setting and progress tracking - The GRI framework enables organizations to measure their sustainability performance over time, helping them identify areas they can improve in and track progress on those topics. It also empowers companies to benchmark against industry peers.

Risk management - By identifying risks and opportunities, GRI reporting helps organizations address potential issues before they escalate.

Access to capital - Investors and financial institutions are leaning into ESG investing, using ESG reporting data to make informed decisions. Reporting to the GRI improves an organization's access to capital by demonstrating a long-term and profitable commitment to sustainability. 

The GRI reporting process

It’s important to collect accurate data from as many sources as possible. This means qualitative and quantitative data because the GRI covers a wide range of material standards. Taking a materiality assessment to prepare for the report will assist with the process to see where the organization stands amongst its peers and how it can set targets in different areas to improve performance. 

Starting with reporting data through ESG software minimizes risks of non-compliance and builds trust among stakeholders stemming from its government-grade reporting capabilities. It also makes it easier to calculate the metrics that were impossible in the past without hiring expensive reporting agencies. 

Discloser features an advanced AI component that aids in drafting reports, providing intelligent suggestions and automating analysis, making GRI reports compliant in their verbiage, saving businesses hours of work, enhancing the efficiency of the report generation process.

After reporting on general, sector-specific, and topical issues, third-party assurance and review is required. This is when organizations can submit their report. 

What are the GRI standards?

GRI standards include three categories: universal, sector, and topics.  

• Universal standards apply to every organization and include requirements, principles, disclosure rules, and guidance about material topics. 
• Sector-specific standards are based on the industry of the reporting entity and their impacts on society and the environment. 
• Topical standards are based on relevance to a certain topic and may pertain to any organization that it’s suitable for.

All three categories cover extensive detail, mostly based on the 40 sectors and can be downloaded from the GRI website. They include issues such as human rights, the protection of the environment, reporting on GHG emissions, responsible waste management, and more sets of topics within the sustainable scope. 

Data reporting for the GRI

Data collection for the GRI can be done using internal and external sources depending on the sector and topic. All information reported must be reviewed before submission. 

For example, Discloser seamlessly integrates with its parent platform, Net0 carbon emissions management software. This ensures that GHG data flowing into Discloser for ESG reports is up-to-date and accurate. The integration enables your business to maintain a holistic view of its sustainability initiatives, effectively combining carbon emissions data with broader ESG information.

Discloser is powered by Generative Artificial Intelligence, automating the process of gathering and analysing ESG data from suppliers, saving them up to 90% of time spent on report submissions while simultaneously increasing the accuracy of the information provided.

Discloser's automated follow-up feature ensures that suppliers consistently provide the required ESG data in a timely manner. By reducing the manual effort involved in tracking and requesting data from suppliers, Discloser frees up valuable time for ESG teams to focus on strategic initiatives and analysis.

GRI/CDP/SASB/TCFD submission crawling: Discloser's advanced AI capabilities empower the platform to automatically crawl and extract relevant ESG data from suppliers' existing GRI, CDP, SASB, and TCFD submissions. This feature minimises duplication of efforts and further streamlines the data collection process for both the organisation and its suppliers.

In conclusion

The GRI is a full-scale ESG reporting framework that offers internal and external resources to submit an accurate sustainability report. Discloser can help streamline the reporting process. Sign up for a free trial and explore the simplicity it brings to a complex process.