by Source Intelligence
on January 6, 2022
The GRI (Global Reporting Initiative) was created in 1997 in the wake of the Exxon Valdez disastrous oil spill with the aim of creating mechanisms that could hold companies accountable for their impact on the environment. It has since extended to social and governance as well to encompass ESG issues.
With the first guidelines published in 2000, the GRI Standards formally launched in 2016 and have become an internationally recognized framework reference for ESG reporting.
GRI reporting allows organizations to understand and disclose their negative and positive contributions toward sustainable development. Through a common language framework, companies can increase transparency and meet stakeholders’ expectations and needs.
The standards GRI established ensure that companies are not only held accountable for the impacts of their activities but also own the responsibility of managing these impacts, regardless of size and industry.
As the starting point for using the GRI Standards, the foundation principles define report content and quality.
General disclosures report information about the company, including profile, strategy, ethics and integrity, stakeholder engagement, and reporting process.
This is used to report how a company manages material topics and to provide an explanation on why a topic is material, where the impacts occur, and how impacts are managed.
Economic standards include:
Environmental Standards include:
Social Standards include:
GRI reporting, and ESG reporting in general, is the answer to the growing demand for sustainability from stakeholders. By clearly communicating the impacts an organization has on key issues, companies can better evaluate their performance and inform their decision-making processes. Some of the known and measured benefits also include investors’ interest and increased stakeholder loyalty.
GRI reporting is one of the most comprehensive ESG frameworks and gives the opportunity to understand the impacts by and on an organization. It also provides a more accurate map of existing gaps and allows benchmarking within or across industries.
GRI’s sustainability reporting offers both broad and sector-specific coverage and can be used with other ESG frameworks.
No matter the standards and goals that are most relevant to your business, ESG reporting must obey a few basic rules to be profitable and have a positive impact on growth and sustainability. The key to getting started and avoiding heavy constraints on resources is to understand the value of data and the importance of supplier engagement. Without cooperation from the partners in your value chain, you end up with little to report, inaccurate data, and the risk of losing precious time in building a credible and meaningful report.
Per GRI’s requirement, disclosure should be balanced (not solely focusing on positive impacts), clear, complete, comparable, reliable, and timely.
To help you get the supply chain data you need, Source Intelligence has created a fully automated ESG program that uses AI to verify data, regardless of the framework(s) you choose. From standards mapping to automated reporting, our solution eliminates manual tasks and makes collaboration easy and centralized. Our engagement team offers 24/7 support to communicate with suppliers and engage them to adopt sustainable practices by actively participating in your initiatives.
Are you ready to balance social conscience and financial performance without wasting time and money?
Request a demo of our ground-breaking compliance technology today.