4
A Short Introduction to the GRI Standards
The Reporting Process
The foundation of sustainability
reporting is for an organization to
identify and prioritize its impacts on the
economy, environment, and people - to
be transparent about their impacts.
GRI 1 is the starting point for all organizations reporting
using the GRI Standards in that it lays out key concepts
and principles, and lists the requirements for reporting in
accordance with the GRI Standards.
Identifying and assessing impacts
Identifying its impacts and assessing their significance is
part of an organization’s day-to-day activity, which varies
according to its specific circumstances.
The Sector Standards are of help at this point in that
they describe the characteristics of a sector that underlie
its impacts. The topics and impacts listed in the Sector
Standards provide a valuable means of identifying an
organization’s impacts. An organization needs to consider
the impacts described, and decide whether these impacts
apply to it.
Understanding an organization’s context is a crucial factor
in identifying and assessing the significance of its impacts.
GRI 2 aids in this process by specifying disclosures in
detail for different aspects of an organization’s activities
(reporting practices, governance). GRI 3 explains step-by-
step how to identify and assess impacts together with their
significance.
Determining material topics
Once an organization has assessed the significance
of its impacts, it needs to decide on which to report. To
do this, it needs to prioritize the impacts. Grouping the
impacts into topics (such as ‘water and effluents’ or ‘child
labor’) facilitates this, as it indicates what topics are most
relevant to the organization’s activities - its material topics.
GRI 3 also contains a step-by-step explanation of how to
organize this grouping. To report in accordance with the
GRI Standards, an organization needs to document the
process by which it determined its material topics, and the
disclosures contained in GRI 3 facilitate this.
Again, the Sector Standards are part of the process of
determining material topics. An organization should test
its selection of material topics against the topics in the
applicable Sector Standard. This helps the organization
ensure that it has not overlooked any topics that are
likely to be material for the sector. If an applicable Sector
Standard is available, then an organization is obliged
to use it when reporting in accordance with the GRI
Standards. Using the Sector Standards is not a substitute
for determining material topics, but an aid. However,
the organization still needs to consider its specific
circumstances when selecting its material topics.
Reporting disclosures
An organization that has determined its material topics
needs to gather relevant data to report specific information
on each topic. The topics in a Sector Standard list
specific disclosures from the Topic Standards identified
for reporting on the topic by an organization in the sector.
Where relevant, additional disclosures specific to the
sector are included.
The disclosures in the Topic Standards specify the
information that needs to be collected to report according
to the GRI Standards. Together with the disclosures
from GRI 2 and GRI 3, they provide a structured way of
reporting this information. If an organization cannot comply
with the particular reporting requirements, it is in certain
instances permitted to omit the information, provided that
a valid reason is given for the omission. In addition to the
requirements listed under these disclosures, there are
also recommendations and guidance that would add to the
quality and transparency of a report.
expectations of a wide range of stakeholders regarding the
management of impacts in the sector.
GRI Topic Standards
The GRI Topic Standards contain disclosures for providing
information on topics. Examples include Standards on
waste, occupational health and safety, and tax. Each
Standard incorporates an overview of the topic and
disclosures specific to the topic and how an organization
manages its associated impacts. An organization selects
those Topic Standards that correspond to the material
topics it has determined and uses them for reporting.