What is the Global Reporting Initiative?

The GRI is a global standard for sustainability reporting designed by organizations and investors to measure
business performance. The GRI has been adopted as a requirement by leading institutional investors,
government regulators and development organizations around the world. It sets out a universal framework
for sustainability reporting based on the shared understanding that such information can provide new
insights into how companies operate and their contribution to sustainable development.

The Global Reporting Initiative < https://www.globalreporting.org/> (GRI) was established in 1997 when it
became clear that there was an increasing need for an internationally accepted set of standards which
would allow stakeholders – governments, NGOs, investors, consumers etc.,- to compare consistent
information relating to environmental issues from one company or country with another in order to assess
progress towards sustainability goals and objectives. Since its inception, the GRI has developed more than
200 Sustainability Reporting Guidelines, which are available free of charge.

What does the GRI do?

Why was the GRI created?
What are the GRI standards?
 6 most important benefits of reporting
What are the Sustainability Reporting Guidelines?
How does the GRI Standards work?
What are GRI reports?
What is the function of the Global Reporting Initiative?
What are the three stages of GRI?
What are the GRI series standards?
How are the GRI standards used?
What is the purpose of GRI reports?
Who uses the Global reporting Initiative?
Why is the Global Reporting Initiative important?
What is the difference between sustainability and CSR?
What is the purpose of sustainability reporting?
What are the three ways you can read a report?
Is sustainability reporting mandatory?
How can GRI sustainability reporting help organizations?
In conclusion on global reporting initiative GRI
Terms and Definitions
Caveats, disclaimers and define GRI
Author Bio

What does the GRI do?

The GRI works with its stakeholders to create awareness about how reporting can support sustainable
development. It also provides practical guidance and reporting tools to help organizations measure and
report on their economic, environmental and social performance < https://www.esgthereport.com/the-
environmental-performance-index-how-it-works/> . These include sectorial supplement guidelines as
well as sectorial and thematic thematic supplements which provide guidance on specific topics such as
human rights, conflict minerals and farm labor. New guidelines are developed every year in the areas of
people, planet and governance.

Why was the GRI created?

To create GRI, an international committee of representatives from UN organizations, investor agencies,
corporations, practitioners and civil society groups came together to develop a set of rules or “principles” for
sustainability reporting. The process was designed using the following guiding principles: inclusion;
transparency; comparability; alignment; credibility; relevance; and insightfulness. These principles are
expected to ensure that sustainability reports show not just what is happening but how well businesses are
performing in relation to sustainable development goals.

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What are the GRI standards?

The Global Reporting Initiative has three interwoven Standards which apply universally to every entity,
company or organization who are creating reports (16 Reasons Why You Should Make One <
https://www.esgthereport.com/15-good-reasons-why-every-entrepreneur-needs-to-create-an-esg-
report/> ) on their sustainability practices.
6 most important benefits of reporting
1. Transparent and Open: A company can share its assessment with others without disclosing commercially
sensitive information.
2. Standardized Approach: The GRI Indicators, Guidelines and reporting requirements provide a framework
within which public and private organizations can report on their sustainability performance.
3. Co-created: The GRI is a co-developed initiative, not owned by any organization. It represents the
consensus of investors and other stakeholders about what information matters most for understanding
an organization’s impact on society and the environment; who should report this information; and how it
should be reported.
4. Gap Analysis: The GRI provides a basis for organizations to assess their own performance and risks relative
to other companies, and to identify opportunities for improvement.
5. Engagement: An organization can engage with its stakeholders using the same information and reporting
framework as it uses to communicate its sustainability performance internally and externally, avoiding the
need for multiple frameworks and reports.
6. Donor Appeals: A charity can demonstrate its commitment to sustainability through the use of the GRI as
a means of disclosing information about an organization’s performance on social, environmental and
economic impacts. This provides reassurance that their donations are being used effectively and
efficiently toward these ends.

What are the Sustainability Reporting Guidelines?

The GRI Standards are divided into three components:

the Sustainability Reporting Guidelines, which provide guidance for how organizations are to report on
economic, environmental and social performance < https://www.esgthereport.com/what-is-social-
and-environmental-reporting/> ;
 the Supplement guidelines which provide guidance to supplement the reporting process in specific areas
such as human rights or climate change;
and the GRI Guidelines for Report Users, which provide information on how to read and interpret the
contents of a corporate sustainability report.

The Sustainability Reporting Guidelines are development of more than 200 guidelines that set out
requirements for reporting on economic, environmental and social performance from an organization’s
perspective. The GRI ensures these standards remain up-to-date by reviewing them at least every four
years. The Sustainability Reporting Guidelines are Approved by GRI’s General Assembly on what to put in
your sustainability report < https://www.esgthereport.com/what-is-esg/the-g-in-esg/what-to-include-
in-a-sustainability-report/> .

Organizations adopting the Standards are encouraged to follow the framework of the GRI when reporting,
but it is their responsibility to determine what information or data is appropriate for inclusion in the report.
The use of specific indicators within the framework is not a requirement.

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How does the GRI Standards work?

The Sustainability Reporting Guidelines are made up of seven categories: people, planet, and governance;
strategy and performance management; portfolio management and operations; stakeholder engagement ;
risk, opportunity & impacts ; carbon & energy ; financials [notes]. These categories are further divided into
guidelines which are organized according to economic, environmental and social performance.

The GRI Standards focus on material aspects of sustainability, or those that have a significant impact on the
organization’s activities.

As organizations continue their journey towards sustainable development, they use the GRI Standards as an
opportunity to improve their reporting practices in order to provide more in-depth information about their
contribution to sustainable development.
What are GRI reports?
The Sustainability Reporting Guidelines, which is made up of three components: the guidelines themselves,
the Supplement guidelines and the Guidelines for Report Users. The Standards are intended to be used by
organizations in building transparency through reporting on their economic, environmental and social
effects.

In order to achieve this, GRI is committed to working with its stakeholders in delivering a multi-stakeholder
platform for the development of universal Guidelines through a transparent process which provides
opportunities for input from all interested parties in a timely manner, thus creating a foundation for
improved decision-making.

Reporting organizations are responsible for determining what information or data is appropriate for inclusion
in their reports.

What is the function of the Global Reporting Initiative?

The GRI serves two distinct roles:

1) As an independent standard-setter for sustainability reporting; and

2) As a platform for global collaboration between companies, civil society and investors.
The first role is defined by the standard-setting task, which involves a number of boards and an Advisory
Council made up of representatives from civil society organisations, investors, companies and others.

The second role is activated through dialogue activities that place a strong emphasis on sharing knowledge
to accelerate progress towards sustainability goals. In this way, the GRI has become a platform for global
collaboration between companies, civil society organizations and investors.

What are the three stages of GRI?

1. Issue Identification: A company identifies issues that are relevant to its business and which affect
stakeholders, setting out what will be included in the report.

2. Assessment/Analysis: An assessment is carried out (either by the organization itself or by an independent

assessor) in order to establish how the issues identified affect the organization and its impacts on those
affected by it.

3. Reporting: The company provides information to stakeholders about how this analysis has been carried
out, as well as the results of the assessment and any other relevant issues that have come to light
throughout this process.
What are the GRI series standards?
The 200 series is comprised of Economic topics
The 300 series is comprised of Environmental topics
The 400 series is comprised of Social topics
How are the GRI standards used?
The standards set out requirements that organizations can apply to their own unique context to report on
economic, environmental, and social performance. The standards are designed for use globally by any
organization regardless of size or sector.

The GRI Standards are used by companies large and small < https://www.esgthereport.com/insight-esg-
is-more-than-just-a-new-burden-for-compliance/> . They are also adopted as requirements in many
countries around the world, most notably the United States, France, Brazil, Canada (Canadian Index of
Wellbeing < https://www.esgthereport.com/the-canadian-index-of-wellbeing/> ), China, Denmark,
Finland, Germany and Korea. This “requirement” is referred to as a mandatory requirement because these
governments have either passed legislation or issued regulations requiring publicly listed companies to
report on economic, environmental and social impacts.

What is the purpose of GRI reports?

The primary purposes of a GRI Report are:

1. To allow for comparisons over time;

2. To provide stakeholders with insights into an organization’s performance as it relates to sustainability; and
3. To enhance transparency and accountability.

The GRI enables comparisons over time by providing a common framework for organizations to report on
their long-term performance in a way that is independent, credible and transparent. The quality of data
contained within a GRI Report makes it possible for stakeholders to gain insight into an organization’s current
performance relative to its targets and previous performance. This insight, coupled with the credibility of a
GRI Reports’ independent certification, can enhance accountability and transparency by enabling
stakeholders to engage organizations proactively on issues of key importance to them.

Who uses the Global reporting Initiative?

The Global Reporting Initiative a universal standard for sustainability reporting designed by organizations
and investors to measure business performance. The GRI has been adopted as a requirement by leading
institutional investors, government regulators, and development organizations around the world. The GRI
sets out a universal framework for sustainability reporting based on the shared understanding that such
information can provide new insights into how companies operate and their contribution to sustainable
development.

Why is the Global Reporting Initiative important?

The GRI is important because it can provide investors with information that is credible, transparent and
independent. It sets out universal standards for sustainability reporting based on the belief that such
information can provide new insights into how companies operate and their contribution to sustainable
development.
What is the difference between sustainability and CSR?
Sustainability is the ability to be sustained. This means that sustainable actions take into account all aspects
of society and will not harm the future generations. It is about maintaining the natural resources in order to
allow for future generations to thrive. CSR, or corporate social responsibility, is different in that it does not
always take into account the future generations. It only focuses on the existing stakeholders in the company
and what they need/want at this point in time.

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What is the purpose of sustainability reporting?

Sustainability reporting is a way for a company to measure their success in sustainability and provide
information about what is being done. CSR focuses more on benefiting the existing group, whereas
sustainability is all about maintaining resources for future generations by including them from the start. The
two practices also have contrasting goals: one is often focused on marketing, while the other’s goal can be
better management of natural resources.
What are the three ways you can read a report?
1. Company provides self-assessment: In this case, a company assesses its own performance in the G4
categories and completes a report to each of the nine GRI Indicators that it considers relevant.

2. Company or Investor makes a request: In this case, a request is made for a report from an organization,
either by an investor asking about their holdings, or by an interested party about an organization they are
evaluating.

3. Company is requested to provide a basic report: this is agreed by the board of directors or senior
management, but does not constitute a self-assessment. Instead, it contains only information that the
company has chosen to include. This can be useful if there are concerns about whether a GRI indicator is
relevant or not.

Is sustainability reporting mandatory?

Sustainability reporting is not mandatory, but takes a company’s performance and makes it transparent. In
turn, this can help companies be better-equipped to make profitable decisions to improve their long-term
success. To draw out the most value from sustainability reporting, it is important for organizations of all sizes
and sectors to produce useful information in a format that stakeholders understand.
How can GRI sustainability reporting help organizations?
Sustainability reports provide a clear picture of how an organization operates so investors can track
progress. They also offer a way for stakeholders to engage with organizations proactively to ensure
accountability and transparency.

More interesting things…

How to Write a Sustainability Report < https://www.esgthereport.com/what-is-esg/the-g-in-

esg/how-to-write-a-sustainability-report/>

In conclusion on global reporting initiative GRI

In conclusion, the Global Reporting Initiative (GRI) is a global standard for sustainability reporting designed
by organizations and investors to measure business performance. The GRI has been adopted as a
requirement by leading institutional investors, government regulators and development organizations
around the world. Sustainability reporting helps companies be more efficient and profitable through better
management of natural resources. It also enables them to better engage with stakeholders and hold
themselves accountable for their actions.
Terms and Definitions
A comprehensive sustainability reporting framework is a set of principles and guidelines for systematically
reporting an organization’s economic, social, and environmental performance.
The Global Reporting Initiative (GRI) is a reporting framework that provides guidance to organizations on
how to report their sustainability performance.
Intergovernmental expectations are the expectations of national and international organizations
regarding an organization’s sustainability performance.
A reporting framework is a set of guidelines for systematically reporting an organization’s economic,
social, and environmental performance.
Corporate social responsibility refers to the responsibilities that a company has to society as a whole. This
includes things like environmentalism, philanthropy, and human rights.
Sustainability performance is the way in which a company manages its environmental and social impact.
Global standards are the set of guidelines that companies use to measure their sustainability
performance.
Stakeholder groups are the people and organizations who have a vested interest in a company’s success
or failure.
Gri guidelines are the set of global standards that companies use to measure their sustainability
performance.
Governance bodies are the organizations responsible for setting and enforcing global standards.
Social sustainability – The ability of a social system to endure over time by managing and regenerating its
social, environmental, and economic resources.
Modular Structure – A modular structure is one that is divided into smaller, interchangeable parts.
Reporting – The act of providing information or making something known.
Core Option – The most important or essential part of something.
Environment Ideation – The process of coming up with new ideas about how the environment can be
improved.
Caveats, disclaimers and define GRI
We have covered many topics in this article and want to be clear that any reference to, or mention of revised
universal standards, reporting companies, united nations environment programme, international
organization, multinational enterprises, gri designation, human rights, universal standards, other
organizations, national association, reporting standards, supply chain, promotes economic or helps
businesses with standards for sustainability reporting. We have also talked about gri esg responsible
investing, gri meaning, gri gri meaning and sustainability reporting standards <
https://www.esgthereport.com/sustainability-reports-how-to-reduce-environmental-impact-and-
increase-corporate-transparency/> . Other subjects have included, but not limited in accordance with the
gri outlines to enable principles and services for businesses, widely, governance, country, resources,
transparency, biodiversity, business, accordance, association, revised, world, emissions, network, reports,
management, standards, practices, identified, advancing, advice, realtors or health in the context of this
article and are purely for informational purposes and not to be misconstrued with investment advice or
personal opinion. Thank you for reading, we hope that you found this article useful in your quest to
understand ESG.
 Author Bio
Research & Curation

Dean Emerick is a curator on sustainability issues with ESG The Report, an online resource
for professionals focusing on ESG principles. Their primary goal is to provide resources to
help middle market companies, SMEs and SMBs transition to a more sustainable future.

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