Why is the GRI framework so popular?

4 minutes01/08/2024

Preparing an Environment, Social, and Governance (ESG) report is not a simple undertaking. The data gathering alone is complex and time consuming, but knowing where to start can often be the biggest hurdle for many corporations. 

When it comes to sustainability reporting, there are a number of different frameworks and standards to choose from. The topics they cover vary but there is significant overlap, with each striving to provide a transparent picture of your organization’ impacts. 

A common starting point for many businesses is the Global Reporting Initiative (GRI  guidelines. For those launching a new ESG program, they provide a framework to support environmental, economic and social reporting. 

But why is the GRI framework so well-recognized? Let’s unpack a little more about this popular framework and find out what you need to know if you choose to comply. 

What is the Global Reporting Initiative (GRI) framework?

GRI is probably the most well-recognized sustainability reporting standard. In fact, over 14,000 companies publish a GRI report, with as many as 73% of the world’s 250 largest companies completing their annual sustainability reports in accordance with GRI. 

One of the reasons for this popularity is the standard’s longevity, with the GRI reporting framework and supporting materials having been continuously revised and updated for over 20 years. 

Designed to support the United Nations Sustainable Development Goals (SDGs) around transparency in business, the GRI provides a useful framework for businesses to report on their economic, environmental, and social impacts. 

Ultimately however, the GRI’s popularity stems in no small part from the fact that their standards are free and publicly available, making them accessible for corporations of any size. 

What are the GRI standards?

The GRI Sustainability Reporting standards are grouped into three categories. The most recent version is the 2023 standard, which includes the following categories: 

• Universal: These standards apply to all reporting companies. They include general disclosures on organizational details, the entities included in reporting, the reporting period, frequency and contact point, and external assurances. Universal standards also include material disclosures about your operation. 
• Sector Specific: There are four sectors for which GRI has developed standards to support material disclosures. These include basic materials and needs; industrial; transportation, infrastructure & tourism; and other services and light standards. 
• Topic Specific: The topic-specific standards dive deeper into economic, environmental and social impacts. You will be asked to make disclosures on anti-corruption and marketing presence, materials and energy, human rights and diversity, among others. The level of detail for each topic will depend on your company’s operations. 

Where can you find the GRI reporting framework?

The GRI Standards, including sector- and topic-specific standards, are free and available for download from the Global Reporting Initiative website.

How can you use the GRI framework?

The GRI reporting framework is flexible and customizable, with the topic- and sector-specific standards designed to facilitate reporting based on your company’s operations. If you wish to complete a report that complies with all of the standards, you can register your report with the GRI in order to meet the UN’s Sustainable Development Goals for transparency in business. 

If you have not fully implemented an ESG program, there is also the option to prepare a partial report. For example, an organization looking to report its environmental impacts can use the universal and environmental topic-specific standards, while leaving out the economic and social standards. This would help them better understand how to quantify carbon emission and waste generation. 

Unsure of your disclosure requirements? Quentic can help.

Whether your business needs to meet a disclosure requirement now, or in the future, Quentic can help make the process easier. We can help you automate and manage your entire ESG and sustainability reporting program no matter where in the world you are located. For carbon accounting, water disclosures, corporate social responsibility and more, we can help you collect, manage, and report the data you need to disclose.