ESG sustainability reporting is the new norm in the corporate world. Investors, customers, and government agencies are all asking for sustainability reports to decide whether to invest, buy products or approve permits of companies. As new entrepreneurs and managers focus on environmental, social, and governance impacts, one of the big questions has always been, “how do you select the best reporting framework?”
There are multiple ESG reporting frameworks that you can use for sustainability disclosure, but the Global Reporting Initiative (GRI) has stood out from the pack because of its flexibility and efficiency. The new GRI standards are now setting the pace for transparency, due diligence, and human rights.
Keep reading as we take a closer look at the GRI framework to demonstrate how it can help improve your sustainability reporting.
A Brief History of GRI Sustainability Reporting
The Global Reporting Initiative (GRI) framework was developed by the Global Sustainability Standards Board back in 1997 to help address issues on sustainability. Although designed as a response to the Exxon Valdez oil spill to help avoid similar disasters in the future, the Coalition for Environmentally Responsible Economies (CERES) and the United Nations Environment Program (UNEP) build on it to craft a comprehensive guide for responsible actions in organizations. Today, companies like East Coast Ecology work with businesses to calculate important metrics like biodiversity offsetting and environmental monitoring that help large businesses to understand their environmental impacts when building.
By the close of 2021, there were more than 13,000 organizations in about 90 countries using the GRI standards. The primary benefit of using the framework is its flexibility, which means almost every organization out there can use it. Here are other reasons indicating why you should go for the GRI framework for ESG sustainability reporting.
- Improving sustainability performance of your company.
- Enhancing risk management of your company.
- Facilitating better stakeholder communication.
- Improving staff motivation.
- Building credibility of your brand.
- It serves as an essential step in convincing investors to inject more funds into your company.
How GRI Standards Help Improve Focus on Sustainability
New GRI standards were launched in October 2021 for all the companies that use the framework to implement. This adds a layer of credibility for the sustainability reports of firms using GRI standards. According to Dante Pesce, a member of the United Nations Working Group on Business and Human Rights, the new standards are enablers for change in line with the UN Guiding Principles. Here are other ways that the updated GRI framework is helping companies to stand out:
- Brings razor-sharp focus in identifying material topics in line with ESG sustainability reporting principles.
- Introduces the pioneer reporting standards that incorporate due diligence expectations for companies to correctly manage the impacts of their actions, especially on human rights.
- Enables consistent reporting and comparability of the report you create for your company.
- Helping companies to respond to the emerging requirements of new laws, such as the Enterprise Value Reporting Plans by the International Financial Reporting Standards (IFRS) Foundation and Taxonomy legislation.
Improve Your Reporting with Sustainability Management Software
As you can see, GRI has proved to be an excellent framework because it is comprehensive and is updated regularly. It helps to increase the accuracy and reliability of the presented ESG information. Remember that you also need to work with an appropriate ESG sustainability reporting software to gather and analyze data from different parameters accurately.
The app you select allows you to implement the GRI framework correctly without compromising accuracy. You can even follow specific key performance indicators and generate regular reports for your company.
This post has demonstrated that although ESG sustainability reporting can be challenging, working with the GRI standards and an appropriate app can simplify the process without compromising quality. Visit Diginex.com for quality apps that you can trust when using GRI in your firm. They also have the best ESG consultants to assist you to get more from sustainability.