Global awareness of ESG issues continues to rise. Sustainability reporting is becoming an increasingly crucial aspect for businesses and investors alike. The GRI standards provide a framework for companies to report on their ESG performance and impacts. They are widely recognized as the most comprehensive and widely used sustainability reporting framework in the world.
In this article, we will explore the key aspects of GRI reporting. In addtion to how companies can effectively use the GRI standards to strengthen their ESG strategy. We will also guide how to use Cority’s ESG software to streamline the GRI reporting process.
What are GRI standards?
The Global Reporting Initiative (GRI) Standards are one of the most widely used sustainability reporting frameworks in the world. They provide a common language and framework for organizations to report on their ESG performance. The GRI Standards are developed through a globally recognized and independent process, involving hundreds of stakeholders from around the world. The Standards cover a range of sustainability issues, including climate change, human rights, corruption, and labor practices. They are designed to be flexible so that organizations can use them to report on their specific sustainability impacts and strategies. The GRI Standards also provide guidance on how to ensure the quality and credibility of sustainability reports. This also includes the use of external assurance.
Why should companies use GRI?
The use of GRI standards allows for greater transparency and comparability of sustainability reporting across various industries worldwide. Companies using GRI standards can better demonstrate their commitment to sustainability. They can also provide stakeholders with important information about their ESG performance. This can help to enhance the reputation and credibility of the company. It can also assist in identifying potential risks and opportunities related to ESG issues. In addition, the use of GRI standards can help companies to align their sustainability reporting with industry best practices. They can also help companies improve the quality and relevance of their sustainability reporting.
GRI Reporting with Cority: Where to start
Cority’s software has been certified by GRI’s Certified Software and Tools Program. This guarantees that software and digital tools are using GRI content accurately. Thus enabling robust and transparent reporting. In addition to making sustainability reports better, more accessible, and easier to produce.
As a Certified Software Partner and GRI Community member, Cority enables its clients to report using the GRI Standards through its award-winning software and services. Cority provides easy-to-use, secure software with automated, accurate, and auditable reporting. Along with supporting services from a team of industry experts. Cority’s software is designed to meet the requirements of GRI’s sustainability reporting framework and enable companies to easily produce a GRI report.
Our software was one of the first software tools to achieve certification under GRI’s Certified Software and Tools Program.
Using Cority’s software, companies can:
- Define bespoke question sets from a range of reporting frameworks, including GRI, CDP, SDGs, UNGC, and many leading financial exchange reporting schemes, based on the relevance and materiality to their organization.
- Create custom questions to cover any additional company-specific KPIs and metrics which can be integrated into questionnaires alongside content from reporting frameworks.
- Collect data and supporting information across a diverse organization.
- Consolidate data into internal and external reporting templates.
- Analyse quantitative data on dashboards to assess performance and track progress over time.
Universal, Sector, or Topic standards
The GRI has several different standards that organizations can use, including the Universal Standard, Sector Standard, and Topic Standard.
The GRI Universal Standard is the most comprehensive of the GRI standards. It provides a general framework for sustainability reporting that can be used by any organization, regardless of its industry or sector. The Universal Standard covers a broad range of sustainability topics, including ESG issues.
The GRI Sector Standard is a more specialized version of the Universal Standard. It provides a framework for sustainability reporting that is tailored to a specific industry or sector. The Sector Standard includes a set of core indicators that are relevant to that particular industry or sector. As well as additional indicators that organizations can choose to report on if they wish.
The GRI Topic Standard is the most focused of the GRI standards. It provides a framework for reporting on a specific sustainability topic, such as water, energy, or climate change. The Topic Standard includes a set of core indicators that organizations can use to report on that topic, as well as additional indicators that they can choose to report on if they wish.
Get a Sustainable Development Context
Organizations need to recognize the central role they play in driving economic growth and development. Businesses and organizations have the power to create jobs, generate wealth, and provide goods and services that improve people’s lives. However, they also have the potential to cause environmental degradation and social inequality. If they are not managed responsibly and sustainably.
Sustainable development for businesses involves balancing economic, social, and environmental considerations in order to create a more sustainable future. This can involve implementing sustainable business practices. This includes reducing waste and emissions. It also includes engaging with stakeholders to ensure that the organization’s actions align with their needs and expectations. Businesses and organizations should look at sustainable development as a way of maximizing their positive contributions while minimizing their negative impacts.
Prepare a High-Quality Environmental Report
To prepare a high-quality environmental report, it is important to follow a systematic and comprehensive approach. This may involve conducting a thorough analysis of an organization’s environmental performance. This includes its impact on air, water, and soil quality, as well as its greenhouse gas emissions and waste generation. The report should also include an evaluation of the organization’s compliance with relevant environmental laws and regulations.
In addition, the report should include information on the organization’s efforts to reduce its environmental impact and improve its sustainability performance. This might include details of any initiatives or projects the organization has implemented to reduce its environmental footprint, as well as any targets or goals it has set for future sustainability improvements. A high-quality environmental report should provide a clear and concise overview of an organization’s environmental performance, highlighting both its strengths and areas for improvement.
Involve the Stakeholders
To effectively address sustainability issues, it is important to involve stakeholders in the process. By engaging with these stakeholders, organizations can gain valuable insights into their concerns and priorities. They can use this information to inform their sustainability strategy and decision-making. Involving stakeholders can also help to build trust and improve communication, as well as provide opportunities for collaboration and co-creation of solutions to sustainability challenges. Involving stakeholders in sustainability efforts can help to ensure that the organization’s actions align with the needs and expectations of those who are impacted by its activities.
How to Use the GRI Standards to Strengthen Your ESG Strategy
To effectively address sustainability issues and enhance your ESG strategy, it is important to use a comprehensive and standardized framework for reporting on ESG performance. By using the GRI standards in conjunction with Cority’s ESG software solutions, organizations can streamline their sustainability reporting processes and gain valuable insights into their ESG performance. The major steps of using GRI standards include determining the relevant modules to use. This includes applying the reporting principles, assessing materiality, and collecting ESG data. It also includes filling the GRI content index, publishing disclosures, and registering the GRI report. By following these steps, organizations can use the GRI standards and Cority’s ESG software solutions to fortify their ESG strategy and improve their sustainability performance.
Determine the Standards to Use
To effectively use the GRI standards to strengthen your ESG strategy, it is important to determine the relevant modules to use. This will help to ensure that your sustainability reporting is comprehensive and covers all of the key ESG issues that are relevant to your organization.
One of the first steps in determining the relevant GRI standards is to set an ESG goal for your organization. This could be a specific target or objective related to your organization’s ESG performance. Setting an ESG goal will help to focus your reporting efforts. It can also provide a clear framework for assessing your organization’s performance. Once you have set an ESG goal, you should assess how much data you have available for reporting, and how much additional data you need to collect in order to prepare your sustainability report. This will help you to determine the scope and scale of your reporting efforts and to identify any gaps in your data that need to be addressed. You should also consider your organization’s resources and capabilities in terms of undertaking a sustainability report.
Cority’s ESG software solutions can help organizations overcome these challenges and effectively use the GRI standards to strengthen their ESG strategy. Our software modules are designed to support a range of different ESG reporting needs. Our software includes modules such as Environment, Frameworks, Health & Safety, that can help you to collect and manage your ESG data, prepare your sustainability report, and disclose your report publicly, under the GRI standards. By using Cority’s software solutions, you can streamline your sustainability reporting processes and gain valuable insights into your ESG performance.
Apply the Reporting Principles
The reporting principles that are outlined in the GRI standards are designed to guide organizations in their sustainability reporting efforts. They also provide a framework for ensuring the quality and transparency of their reports.
The six reporting principles of the GRI standards for defining the report quality are:
- Comparability: This principle emphasizes the importance of using consistent metrics and indicators to compare an organization’s performance on ESG issues over time and across different organizations.
- Accuracy: This principle emphasizes the importance of ensuring that the data and information included in a sustainability report are accurate and complete.
- Timeliness: This principle emphasizes the importance of reporting on ESG issues in a timely manner, in order to provide stakeholders with current and relevant information.
- Clarity: This principle emphasizes the importance of presenting information in a clear and concise manner, using language and visualizations that are easy to understand.
- Reliability: This principle emphasizes the importance of ensuring that the data and information included in a sustainability report is reliable and can be trusted.
- Conclusion: This principle emphasizes the importance of providing a conclusion or summary that clearly communicates the key findings and implications of the sustainability report.
By basing your data collection and reporting approach on these principles, you can ensure that your sustainability report is of high quality and provides valuable information to stakeholders. Cority’s ESG software solution can help you to apply these principles in your reporting efforts. Our software provides a comprehensive and standardized solution for collecting, managing, and reporting on ESG data, and can help you ensure that your sustainability report is transparent, accurate, and reliable.
Assess Materiality
To assess materiality, you should consider the views and expectations of your stakeholders, as well as the potential impacts of your organization’s operations on the environment and society. For example, if your organization is a retail company, you might consider the impact of your operations on climate change, as well as the working conditions in your supply chain. By assessing materiality, you can ensure that the topics reported on in your sustainability report are relevant and applicable to your organization. In addition to being based on the real and potential impact of your operations.
Cority’s ESG software solution can help you assess materiality and identify the most relevant topics for your sustainability report. We are proud to provide bespoke and widely customizable software that enables users to upload a variety of KPIs and metrics to help them assess their sustainability performance. By using Cority’s software, you can gain valuable insights into your organization’s ESG performance and identify the most material topics for your sustainability report.
Collect ESG Data
Collecting ESG data includes determining the specific disclosures that are required by the GRI standards that you have chosen to use. Make sure you have identified the relevant GRI indicators that your organization is required to report on. You can collect the ESG data using a variety of methods. This includes surveys, interviews, and on-site measurements. Ensure that the data is collected consistently and accurately and that it is properly organized and stored for future reference. You should also consider the quality and reliability of the data, and take steps to verify and validate the information to ensure its accuracy and completeness.
By collecting and disclosing ESG data based on the specific disclosures required by the GRI standards, you can create a high-quality sustainability report that provides valuable information to stakeholders. Cority’s ESG software solution can help you collect and manage your ESG data and align your sustainability report per the GRI standards.
Fill in the GRI Content Index
Once you have collected and organized your ESG data, you can use the GRI standards to guide the preparation of your sustainability report. One of the key steps in this process is to fill the GRI content index. This is a standardized table that provides an overview of the disclosures included in your sustainability report. The content index is organized according to the GRI standards. It also includes information on the specific indicators and disclosures that are included in your report.
Once you have prepared the content index, you can use it to guide the organization and presentation of your sustainability report. The content index can help you to ensure that your report is structured and easy to navigate. Additionally, it provides a clear and concise overview of your organization’s ESG performance.
Cority’s ESG software solution can make this process simple. By using Cority’s software, you can quickly and easily prepare the content index for your sustainability report, and ensure that it meets the requirements specified in the GRI standards.
Publish Disclosures and Register the GRI Report
Finally, after you prepare your sustainability report using the GRI standards, you can publish your report to be released to the public. In addition to publishing your sustainability report, you should also register your report with the GRI. This involves notifying GRI that you have used their standards to develop your sustainability report. In addition to providing them with the necessary information to verify your report. This can help to build trust and credibility with stakeholders and demonstrate your organization’s commitment to the GRI standards.
Our software includes a range of features and tools that can help you prepare your content and ensure your sustainability report aligns with the GRI standards so you can receive a verified status from GRI.
Sources:
https://www.globalreporting.org/media/wmxlklns/about-gri-brochure-2022.pdf
gri-policymakers-guide.pdf (globalreporting.org)
a-short-introduction-to-the-gri-standards.pdf (globalreporting.org)
GRI – Home (globalreporting.org)
https://www.globalreporting.org/standards/media/1036/gri-101-foundation-2016.pdf
