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GRI

Many organisations have adopted the GRI standards for ESG reporting, but knowing the framework is one thing. Applying it consistently across teams, entities and reporting cycles is another.

That is where most organisations run into problems. GRI accounting requires clear definitions, documented methodologies and structured processes. Without them, data comes from different sources, interpreted differently by different people, and your GRI report becomes a reconciliation exercise instead of a reflection of reality.

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WHAT DOES GRI STAND FOR?

GRI stands for Global Reporting Initiative, which provides a framework of global best practice for reporting on economic, environmental and social impacts. The GRI Standards are widely used by companies and organisations around the world. The GRI Standards are developed through a multi-stakeholder process that includes input from business, civil society, labour organisations and other groups. The standards are designed to be flexible and adaptable to different sectors and organizations. GRI’s standard setting activities are governed by the Global Sustainability Standards Board.

GRI OBJECTIVES

GRI exists to help organisations be transparent and take responsibility for their impacts in order to create a sustainable future. GRI aims to provide a global common language for organisations to report on their impacts. The three main components of the GRI Standards are the reporting principles, the reporting standards and the implementation guidance.

GRI REPORTING PRINCIPLES

The GRI Standards are based on a set of reporting principles that underpin the framework. These principles include:

        • Sustainability Context: Companies should report on their sustainability performance in the context of their environmental, social and economic impacts.
        • Materiality: Companies should report on issues that are material to their stakeholders and have a significant impact on their sustainability performance.
        • Stakeholder Inclusiveness: Companies should engage with their stakeholders and report on their sustainability performance in a transparent and inclusive manner.
        • Sustainability Reporting Guidelines: Companies should follow the GRI Sustainability Reporting Guidelines to ensure the accuracy and completeness of their reporting.

GRI REPORTING STANDARDS

The GRI Standards is a modular system of interconnected standards. Three series of Standards support the reporting process:

      • the GRI Universal Standards: These apply to all organisations, for example GRI 2 General Disclosures and GRI 3 Material Topics;
      • the GRI Sector Standards. These are applicable to specific sectors, for example GRI 11 Oil and Gas Sector and GRI 13 Agriculture, Aquaculture and Fishing Sectors; and
      • the GRI Topic Standards. These list disclosures relevant to a particular topic, for example GRI 302 Water and Effluents, GRI 306 Waste and GRI 401 Employment.

Using these Standards to determine what topics are material (relevant) helps organisations achieve sustainable development.

Furthermore, the standards are organised into three main categories: Economic, Environmental and Social. Each category includes a set of specific standards that companies can use to report on their sustainability performance.

      • Economic Standards: The economic standards cover issues such as governance, ethics and supply chain management.
      • Environmental Standards: The environmental standards cover issues such as climate change, biodiversity and pollution.
      • Social Standards: The social standards cover issues such as labour practices, human rights and community engagement.

Each standard includes a set of disclosures that companies can use to report on their sustainability performance, as well as guidance on how to report on these issues.

GRI IMPLEMENTATION GUIDANCE

The GRI Standards also provide implementation guidance to help companies report on their sustainability performance. This guidance includes:

      • Reporting Process: The GRI Standards provide guidance on the reporting process, including data collection, analysis and verification.
      • Report Quality: The GRI Standards provide guidance on how to ensure the quality of sustainability reporting, including accuracy, completeness and transparency.
      • Communication: The GRI Standards provide guidance on how to communicate sustainability performance to stakeholders, including reporting formats, channels and engagement strategies.

WHAT MAKES GRI REPORTING COMPLEX IN PRACTICE?

The GRI Standards provide a solid foundation for sustainability reporting. But implementing them across an organisation consistently requires more than a policy document.

Common challenges include:

  • No shared definitions for GRI metrics across departments
  • Unclear ownership of ESG data collection
  • Methodologies that are undocumented or stored in spreadsheets
  • Difficulty explaining figures during external assurance reviews
  • High dependency on one or two individuals who “know how it works”

If any of these sound familiar, the issue is not your understanding of GRI — it is the absence of a structured knowledge environment to support it.

COMPLIANCE WITH THE GRI FRAMEWORK

To ensure compliance with the GRI framework, companies can take several steps, including:

  • Establish governance and accountability: A company should establish a clear governance structure and accountability framework for ESG reporting. This should include defining roles and responsibilities, setting performance targets, and establishing processes for data collection, analysis and reporting.
  • Define materiality: Companies need to define their reporting boundaries, which include the scope of their sustainability reporting, the data sources used and the methods used to collect and report data. This can be done by using the GRI reporting principles, such as stakeholder inclusiveness, materiality and completeness.
  • Set up an accounting & reporting manual: A manual provides guidance and instructions for the data collection, verification and reporting of GRI data and ensures that the reporting process is consistent, transparent and auditable. All employees are informed of requirements and can be held accountable.
  • Periodic training and awareness sessions: Companies can conduct training and awareness sessions for their employees, particularly those involved in sustainability reporting. This can help to ensure that employees are aware of the GRI framework and its requirements and are equipped with the skills and knowledge necessary to report on sustainability performance.
  • Conduct internal audits: Companies can conduct internal audits of their sustainability reporting to ensure that they are complying with the GRI framework. These audits can be conducted using the GRI Standards or a customised reporting manual developed by the company.
  • Conduct independent verification: A company should engage an independent third party to verify its GRI data and reporting. This could involve obtaining an assurance opinion from an external auditor.
  • Engage with stakeholders: A company should engage with its stakeholders, including investors, customers, employees and community members, to understand their information needs and to ensure that the reporting is relevant and useful to them.

GRI and the Fidugius solution for financial and esg reporting

GRI SOLUTION BUILT FOR ESG AND FINANCE TEAMS

The Fidugius ESG Reporting Manual is a centralised knowledge platform that helps organisations apply the GRI standards consistently.

It brings together everything your teams need in one structured, searchable environment:

  • ESG reporting policies: aligned with GRI standards and your organisation’s materiality assessment
  • ESG accounting treatments: practical guidance on how to collect, calculate and record GRI data
  • KPI definitions and methodologies: documented per metric, with clear ownership
  • Chart of accounts and cost centres: structured to support consistent ESG data allocation

The result is one single source of truth for GRI reporting across your entire organisation.

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