GRI 202: Market Presence 2016

EFFECTIVE DATE: 1 JULY 2018

TOPIC STANDARD 202

GRI 202: Market Presence 2016
Topic Standard
Effective Date
This Standard is effective for reports or other materials published on or after 1 July 2018

Responsibility
This Standard is issued by the Global Sustainability Standards Board (GSSB). Any feedback on the GRI Standards
can be submitted to [email protected] for the consideration of the GSSB.

Due Process
This Standard was developed in the public interest and in accordance with the requirements of the GSSB Due
Process Protocol. It has been developed using multi-stakeholder expertise, and with regard to authoritative
intergovernmental instruments and widely held expectations of organizations relating to social, environmental, and
economic responsibilities.

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This document, designed to promote sustainability reporting, has been developed by the Global Sustainability
Standards Board (GSSB) through a unique multi-stakeholder consultative process involving representatives from
organizations and report information users from around the world. While the GRI Board of Directors and GSSB
encourage the use of the GRI Sustainability Reporting Standards (GRI Standards) and related Interpretations by all
organizations, the preparation and publication of reports based fully or partially on the GRI Standards and related
Interpretations are the full responsibility of those producing them. Neither the GRI Board of Directors, GSSB, nor
Stichting Global Reporting Initiative (GRI) can assume responsibility for any consequences or damages resulting
directly or indirectly from the use of the GRI Standards and related Interpretations in the preparation of reports, or the
use of reports based on the GRI Standards and related Interpretations.

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© 2022 GRI. All rights reserved.

ISBN 978-90-8866-099-3
3 GRI 202: Market Presence 2016

Content

Introduction 4
1. Topic management disclosures 7
2. Topic disclosures 8
Disclosure 202-1 Ratios of standard entry level wage by gender compared to local
8
minimum wage
Disclosure 202-2 Proportion of senior management hired from the local community 10
Glossary 11
Bibliography 14
4 GRI 202: Market Presence 2016

Introduction
GRI 202: Market Presence 2016 contains disclosures for organizations to report information about their market
presence-related impacts and how they manage these impacts.

The Standard is structured as follows:

• Section 1 contains a requirement, which provides information about how the organization manages its market
presence-related impacts.
• Section 2 contains two disclosures, which provide information about the organization’s market presence-related
impacts.
• The Glossary contains defined terms with a specific meaning when used in the GRI Standards. The terms are
underlined in the text of the GRI Standards and linked to the definitions.
• The Bibliography lists authoritative intergovernmental instruments used in developing this Standard.

The rest of the Introduction section provides a background on the topic, an overview of the system of GRI Standards
and further information on using this Standard.

Background on the topic

This Standard addresses the topic of an organization’s market presence, covering its contribution to economic
development in the local areas or communities where it operates. For example, this can include the organization’s
approaches to remuneration or local hiring.

System of GRI Standards

This Standard is part of the GRI Sustainability Reporting Standards (GRI Standards). The GRI Standards enable an
organization to report information about its most significant impacts on the economy, environment, and people,
including impacts on their human rights, and how it manages these impacts.

The GRI Standards are structured as a system of interrelated standards that are organized into three series: GRI
Universal Standards, GRI Sector Standards, and GRI Topic Standards (see Figure 1 in this Standard).

Universal Standards: GRI 1, GRI 2 and GRI 3

GRI 1: Foundation 2021 specifies the requirements that the organization must comply with to report in accordance
with the GRI Standards. The organization begins using the GRI Standards by consulting GRI 1.

GRI 2: General Disclosures 2021 contains disclosures that the organization uses to provide information about its
reporting practices and other organizational details, such as its activities, governance, and policies.

GRI 3: Material Topics 2021 provides guidance on how to determine material topics. It also contains disclosures that
the organization uses to report information about its process of determining material topics, its list of material topics,
and how it manages each topic.

Sector Standards
The Sector Standards provide information for organizations about their likely material topics. The organization uses
the Sector Standards that apply to its sectors when determining its material topics and when determining what to
report for each material topic.

Topic Standards
The Topic Standards contain disclosures that the organization uses to report information about its impacts in relation
to particular topics. The organization uses the Topic Standards according to the list of material topics it has
determined using GRI 3.
5 GRI 202: Market Presence 2016

Figure 1. GRI Standards: Universal, Sector and Topic Standards

GRI Standards

Universal Standards Sector Standards Topic Standards

Requirements and
principles for using the
GRI Standards

Disclosures about the

reporting organization

Disclosures and
guidance about the
organization's material
topics

Apply all three Universal Use the Sector Standards that Select Topic Standards to report
Standards to your reporting apply to your sectors specific information on your
material topics

Using this Standard

This Standard can be used by any organization – regardless of size, type, sector, geographic location, or reporting
experience – to report information about its market presence-related impacts.

An organization reporting in accordance with the GRI Standards is required to report the following disclosures if it has
determined market presence to be a material topic:
• Disclosure 3-3 in GRI 3: Material Topics 2021 (see clause 1.1 in this Standard);
• Any disclosures from this Topic Standard that are relevant to the organization’s market presence-related impacts
(Disclosure 202-1 through Disclosure 202-2).

See Requirements 4 and 5 in GRI 1: Foundation 2021.

Reasons for omission are permitted for these disclosures.

If the organization cannot comply with a disclosure or with a requirement in a disclosure (e.g., because the required
information is confidential or subject to legal prohibitions), the organization is required to specify the disclosure or the
requirement it cannot comply with, and provide a reason for omission together with an explanation in the GRI content
index. See Requirement 6 in GRI 1: Foundation 2021 for more information on reasons for omission.

If the organization cannot report the required information about an item specified in a disclosure because the item
(e.g., committee, policy, practice, process) does not exist, it can comply with the requirement by reporting this to be the
case. The organization can explain the reasons for not having this item, or describe any plans to develop it. The
disclosure does not require the organization to implement the item (e.g., developing a policy), but to report that the
item does not exist.

If the organization intends to publish a standalone sustainability report, it does not need to repeat information that it
has already reported publicly elsewhere, such as on web pages or in its annual report. In such a case, the
organization can report a required disclosure by providing a reference in the GRI content index as to where this
information can be found (e.g., by providing a link to the web page or citing the page in the annual report where the
information has been published).
6 GRI 202: Market Presence 2016

Requirements, guidance and defined terms

The following apply throughout this Standard:

Requirements are presented in bold font and indicated by the word 'shall'. An organization must comply with
requirements to report in accordance with the GRI Standards.

Requirements may be accompanied by guidance.

Guidance includes background information, explanations, and examples to help the organization better understand
the requirements. The organization is not required to comply with guidance.

The Standards may also include recommendations. These are cases where a particular course of action is
encouraged but not required.

The word ‘should’ indicates a recommendation, and the word ‘can’ indicates a possibility or option.

Defined terms are underlined in the text of the GRI Standards and linked to their definitions in the Glossary. The
organization is required to apply the definitions in the Glossary.
7 GRI 202: Market Presence 2016

1. Topic management disclosures

An organization reporting in accordance with the GRI Standards is required to report how it manages each of its
material topics.

An organization that has determined market presence to be a material topic is required to report how it manages the
topic using Disclosure 3-3 in GRI 3: Material Topics 2021 (see clause 1.1 in this section).

This section is therefore designed to supplement – and not replace – Disclosure 3-3 in GRI 3.

REQUIREMENTS 1.1 The reporting organization shall report how it manages market presence using
Disclosure 3-3 in GRI 3: Material Topics 2021.
8 GRI 202: Market Presence 2016

2. Topic disclosures
An organization is expected to compile information for economic disclosures using figures from its audited financial
statements or from its internally-audited management accounts, whenever possible. Data can be compiled using, for
example:
• the relevant International Financial Reporting Standards (IFRS), published by the International Accounting
Standards Board (IASB), and the Interpretations developed by the IFRS Interpretations Committee (specific IFRS
are referenced for some of the disclosures);
• the International Public Sector Accounting Standards (IPSAS) issued by the International Federation of
Accountants (IFAC);
• national or regional standards recognized internationally for the purpose of financial reporting.

Disclosure 202-1 Ratios of standard entry level wage

by gender compared to local minimum wage

REQUIREMENTS
The reporting organization shall report the following information:

a. When a significant proportion of employees are compensated based on wages subject

to minimum wage rules, report the relevant ratio of the entry level wage by gender at
significant locations of operation to the minimum wage.

b. When a significant proportion of other workers (excluding employees) performing the

organization’s activities are compensated based on wages subject to minimum wage
rules, describe the actions taken to determine whether these workers are paid above
the minimum wage.

c. Whether a local minimum wage is absent or variable at significant locations of

operation, by gender. In circumstances in which different minimums can be used as a
reference, report which minimum wage is being used.

d. The definition used for ‘significant locations of operation’.

RECOMMENDATIONS
2.1 When compiling the information specified in Disclosure 202-1-b, the reporting
organization should:

2.1.1 use the data from Disclosure 2-8 in GRI 2: General Disclosures 2021 to identify
the total number of workers who are not employees and whose work is controlled
by the organization;
2.1.2 if applicable, convert the entry level wage to the same units used in the minimum
wage (e.g., hourly or monthly basis);
2.1.3 when a significant proportion of other workers (excluding employees) performing
the organization’s activities are compensated based on wages subject to
minimum wage rules, report the relevant ratio of the entry level wage by gender at
significant locations of operation to the minimum wage.

GUIDANCE
Background
This disclosure applies to those organizations in which a substantial portion of their employees,
and workers (excluding employees) performing the organization’s activities, are compensated in
a manner or scale that is closely linked to laws or regulations on minimum wage.

Providing wages above the minimum wage can help contribute to the economic well-being of
workers performing the organization’s activities. The impacts of wage levels are immediate, and
they directly affect individuals, organizations, countries and economies. The distribution of
wages is crucial for eliminating inequalities, such as wage gap differences between women
and men, or nationals and migrants.

Also, entry level wages paid compared to local minimum wages show the competitiveness of an
organization’s wages and provide information relevant for assessing the effect of wages on the
local labor market. Comparing this information by gender can also be a measure of an
organization’s approach to equal opportunity in the workplace.
9 GRI 202: Market Presence 2016
10 GRI 202: Market Presence 2016

Disclosure 202-2 Proportion of senior management

hired from the local community

REQUIREMENTS
The reporting organization shall report the following information:

a. Percentage of senior management at significant locations of operation that are hired

from the local community.

b. The definition used for ‘senior management’.

c. The organization’s geographical definition of ‘local’.

d. The definition used for ‘significant locations of operation’.

Compilation requirements

2.2 When compiling the information specified in Disclosure 202-2, the reporting
organization shall calculate this percentage using data on full-time employees.

GUIDANCE
Senior management hired from the local community includes those individuals either born or
who have the legal right to reside indefinitely (such as naturalized citizens or permanent visa
holders) in the same geographic market as the operation. The geographical definition of ‘local’
can include the community surrounding operations, a region within a country, or a country.

Background
Including members from the local community in an organization’s senior management
demonstrates the organization’s positive market presence. Including local community members
in the management team can enhance human capital. It can also increase the economic benefit
to the local community, and improve an organization’s ability to understand local needs.
11 GRI 202: Market Presence 2016

Glossary
This glossary provides definitions for terms used in this Standard. The organization is required to apply these
definitions when using the GRI Standards.

The definitions included in this glossary may contain terms that are further defined in the complete GRI Standards
Glossary. All defined terms are underlined. If a term is not defined in this glossary or in the complete GRI Standards
Glossary, definitions that are commonly used and understood apply.

business partner
entity with which the organization has some form of direct and formal engagement for the
purpose of meeting its business objectives

Source: Shift and Mazars LLP, UN Guiding Principles Reporting Framework, 2015; modified

Examples: affiliates, business-to-business customers, clients, first-tier suppliers, franchisees,

joint venture partners, investee companies in which the organization has a
shareholding position

Note: Business partners do not include subsidiaries and affiliates that the organization
controls.

business relationships
relationships that the organization has with business partners, with entities in its value chain
including those beyond the first tier, and with any other entities directly linked to its operations,
products, or services

Source: United Nations (UN), Guiding Principles on Business and Human Rights:
Implementing the United Nations “Protect, Respect and Remedy” Framework, 2011;
modified

Note: Examples of other entities directly linked to the organization’s operations, products,
or services are a non-governmental organization with which the organization
delivers support to a local community or state security forces that protect the
organization’s facilities.

employee
individual who is in an employment relationship with the organization according to national law
or practice

entry level wage

full-time wage in the lowest employment category

Note: Intern or apprentice wages are not considered entry level wages.

full-time employee
employee whose working hours per week, month, or year are defined according to national law
or practice regarding working time

human rights
rights inherent to all human beings, which include, at a minimum, the rights set out in the United
Nations (UN) International Bill of Human Rights and the principles concerning fundamental
rights set out in the International Labour Organization (ILO) Declaration on Fundamental
Principles and Rights at Work

Source: United Nations (UN), Guiding Principles on Business and Human Rights:
Implementing the United Nations “Protect, Respect and Remedy” Framework, 2011;
modified

Note: See Guidance to 2-23-b-i in GRI 2: General Disclosures 2021 for more information
on ‘human rights’.

impact
effect the organization has or could have on the economy, environment, and people, including on
12 GRI 202: Market Presence 2016

their human rights, which in turn can indicate its contribution (negative or positive) to sustainable
development

Note 1: Impacts can be actual or potential, negative or positive, short-term or long-term,

intended or unintended, and reversible or irreversible.

Note 2: See section 2.1 in GRI 1: Foundation 2021 for more information on ‘impact’.

local minimum wage

minimum compensation for employment per hour, or other unit of time, allowed under law

Note: Some countries have numerous minimum wages, such as by state or province or
by employment category.

material topics
topics that represent the organization’s most significant impacts on the economy, environment,
and people, including impacts on their human rights

Note: See section 2.2 in GRI 1: Foundation 2021 and section 1 in GRI 3: Material Topics
2021 for more information on ‘material topics’.

supplier
entity upstream from the organization (i.e., in the organization’s supply chain), which provides a
product or service that is used in the development of the organization’s own products or services

Examples brokers, consultants, contractors, distributors, franchisees, home workers,

independent contractors, licensees, manufacturers, primary producers, sub-
contractors, wholesalers

Note: A supplier can have a direct business relationship with the organization (often
referred to as a first-tier supplier) or an indirect business relationship.

supply chain
range of activities carried out by entities upstream from the organization, which provide products
or services that are used in the development of the organization’s own products or services

sustainable development / sustainability

development that meets the needs of the present without compromising the ability of future
generations to meet their own needs

Source: World Commission on Environment and Development, Our Common Future, 1987

Note: The terms ‘sustainability’ and ‘sustainable development’ are used interchangeably
in the GRI Standards.

value chain
range of activities carried out by the organization, and by entities upstream and downstream
from the organization, to bring the organization’s products or services from their conception to
their end use

Note 1: Entities upstream from the organization (e.g., suppliers) provide products or
services that are used in the development of the organization’s own products or
services. Entities downstream from the organization (e.g., distributors, customers)
receive products or services from the organization.

Note 2: The value chain includes the supply chain.

worker
person that performs work for the organization

Examples: employees, agency workers, apprentices, contractors, home workers, interns, self-
employed persons, sub-contractors, volunteers, and persons working for
organizations other than the reporting organization, such as for suppliers

Note: In the GRI Standards, in some cases, it is specified whether a particular subset of
workers is required to be used.
13 GRI 202: Market Presence 2016

Bibliography
14 GRI 202: Market Presence 2016

Bibliography
This section lists authoritative intergovernmental instruments used in developing this Standard.

Authoritative instruments:
1. United Nations (UN) Convention, ‘Convention on the Elimination of all Forms of Discrimination against Women
(CEDAW)’, 1979.
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