Implementing measures to combat climate change, as well as meeting the sustainable development goals, is not only the responsibility of governments, but also of companies. And this is how, at least, large corporations have understood it, largely driven by the UN 2030 Agenda and the regulations that have emerged from it.
Thus, for several years, the business world has begun to incorporate environmental, social and governance (ESG) measures. Currently, these are so important that they serve as a reference and differentiator when establishing commercial deals, so it is a priority to adequately disclose these actions through sustainability reports.
Corporate sustainability and the GRI
The standards of the Global Reporting Initiative (GRI), a non-profit organization founded in 1997 in the United States by CERES and the United Nations Environment Program (UNEP), have set the guidelines and dictated the trends related to the sustainability reports. They are a modular system made up of three sets of standards to be used together: Universal Standards, Sectoral Standards and Thematic Standards.
Sensitive to the current context, GRI, a pioneer and world leader in robust and meaningful impact reporting, has adjusted its guidelines in an effort to deepen understanding and accountability for the impacts of sustainability across markets and sectors.
As of January 1, 2023, GRI has given rise to new guidelines in international universal standards that govern reports that can be used by any organization, which include new indicators on risk detection, acquisition, and management. of suppliers in terms of environmental impact, labor practices, human rights and social impact, as well as greater extension in energy indicators and more emphasis on information on sustainability management.
New guidelines and changes in the GRI standards
- A review and update of the Universal Standards was carried out.
- The importance of a greater focus on Human Rights was highlighted.
- Two reporting modalities are proposed: a) in accordance with GRI, which is the most complete approach, b) with reference to GRI, for those who want to report specific information or do not have sufficient information.
- Greater depth on issues of due diligence and governance.
- Alignment with intergovernmental instruments. These include the United Nations Guiding Principles on Business and Human Rights, the OECD Guidelines for Multinational Enterprises and the Due Diligence Guide for Responsible Business Conduct.
Why is it important for companies to make reports?
The urgency for companies to report deeper and more extensively on their impacts, as a precursor to dialogue about those impacts and action to achieve sustainable results, is more crucial now than ever and corporate social responsibility reporting is determinant in the positioning of companies. any company, as it reflects the impact that its activity has on an economic, environmental and social level.
The reports make it possible to analyze the information to find out how far the sustainability policies have been implemented in the strategy of the different companies, allowing the establishment of new challenges or promoting the necessary changes.
It is an exercise in transparency that quantifies the footprint of the company’s activities and allows for a more efficient management of information, provoking credibility, thus opening channels of interaction between the company, its value chain and its stakeholders to identify its areas of opportunity and confirm their social commitment.
The relevance of GRI in the future of reports and its trends
More and more organizations are choosing to use the GRI Standards to communicate their ESG objectives. So far, 72% of the 250 largest companies on the planet, as well as more than 11,000 businesses worldwide, have adopted them as a guideline for their sustainability reports, and this figure is expected to increase steadily.
For its part, GRI will continue in its role to this day, being the compass that sets the course in changing disclosure, collaborating with others to ensure a future in which sustainability reporting is more effective, pervasive and consistent globally.
“Looking forward, through our partnership with the IFRS Foundation, the EU, among others, we seek to ensure that emerging corporate sustainability developments are aligned with our established, trusted and widely adopted standards,” it says. Andrea Padilla, Director of GRI for Latin America.
“We see a strengthened corporate sustainability disclosure system, in which financial and impact reporting are on an equal footing, as a non-negotiable goal. This will act as the mechanism to unlock transparency and accountability for years to come.”
Andrea Padilla, Director of GRI for Latin America.
After 25 years as a catalyst for transparency and accountability, GRI can look back with pride on what they’ve accomplished, but always with a steadfast focus on what’s to come.
Find more information about the new standards here.
Editorial Team The editorial team of EMPRENDEDOR.com, which for more than 27 years has worked to promote entrepreneurship.