Simon Pitsillides, SustainCase Editor, discusses with Tim Mohin, CEO of the Global Reporting Initiative (GRI), the ways in which the vast majority of companies which are the backbone of the world economy, can be mobilized to take real action. How they can be encouraged to #takePositiveAction and #bePositiveChange to effectively address this and many other important sustainability issues our world is facing today. By specifically identifying their most important impacts (materiality) and then proceeding to measuring, managing and changing, companies can become, with their positive contribution, part of a positive chain reaction that is changing our world.

Simon Pitsillides: The SustainCase Clean Air campaign in the UK is aimed at the companies who are responsible for approximately 90% of global economic activity (small and medium-sized enterprises). Our main target is that they use GRI 305: Emissions to drive pollution out of business supply chains, either through compulsory reporting (we have started a petition to the UK Government and Parliament) or through self-regulation. In essence, our goal is that the majority of companies take ownership and not only reduce their emissions, but also put pressure on their supply chains in a positive way, by choosing suppliers who produce little or no emissions. What are your thoughts regarding this target and the Clean Air campaign?

Tim Mohin: I am always happy when I see these types of grass roots efforts to encourage businesses to be more accountable for the impacts they are having on the economy, the environment and society. Clean air is such an important issue. It affects everyone. We know from experience that when we create transparency around impacts, businesses start making improvements. And you are right to note how important it is that companies work with their suppliers, since impacts are not limited to the four walls of the business.

GRI Standard 305 Emissions is an excellent tool for businesses of all sizes to measure, manage and communicate their Scope 1, Scope 2 and Scope 3 emissions of greenhouse gases, ozone-depleting substances, nitrogen oxides, sulfur oxides and other significant air emissions. The GRI Sustainability Reporting Standards give organizations the flexibility to report just on their emissions (or any of the other topics) without producing an entire sustainability report.

Pitsillides: On a global scale, a key target of the SustainCase Clean Air campaign is to begin a conversation to make the measuring & public reporting of emissions by small and medium-sized enterprises compulsory, worldwide. This conversation, could help “accelerate change” (I am borrowing a phrase from the interview you kindly gave us in 2017). What are your thoughts on this?

Mohin: In principle I would like to see all businesses taking responsibility for their sustainability impacts, but I also know that many SMEs don’t have the resources to do sustainability reporting in the same way that Fortune 500 companies report. Again, this is why, under the GRI Standards, we created the option for a company to report on specific information without creating an entire report. At GRI, we know that getting more SMEs to begin disclosing information on their sustainability performance is the next big step we need to take in the transparency movement. We are also currently conducting research to assess what kind of policy and regulatory environment would be best, in terms of stimulating more reporting by SMEs.

Pitsillides: Does GRI provide additional support for companies who want to report their emissions using GRI 305: Emissions?

Mohin: Yes we do. With generous support from the Swiss State Secretariat for Economic Affairs SECO, we are currently working in select developing countries (Colombia, Ghana, Indonesia, Peru, South Africa and Vietnam) to stimulate more reporting by small and medium-sized enterprises (SMEs). Through the “Competitive Business Program,” we are helping SMEs begin reaping the many benefits of sustainability reporting, which will allow them to improve their business prospects and make positive contributions to their local society and economy. This effort includes GRI 305 disclosures as well as other key sustainability information.

Because many SMEs do not have the resources to put a sustainability management team in place, we have developed the GRI Digital Reporting Platform, a tool that makes reporting easier for SMEs. Using the Digital Reporting Platform, suppliers can digitally share the specific sustainability information that their customers want. The digital report that’s produced is in a format that allows companies in an SME’s value chain can aggregate and use for their own reporting. After we have completed the pilot phase in these six countries, we plan to make the GRI Digital Reporting platform available worldwide.      

Pitsillides: Which is, in your view, the business case for reporting emissions? How will a small and medium-sized enterprise benefit from reporting this information and not see it as just a compliance requirement?

Mohin: I strongly believe that most business owners want to make positive contributions to their local communities and environment. Still, most SMEs do not report on their sustainability impacts because they either lack knowledge of the benefits they can gain from the practice or they believe that the process of reporting is too costly. So a large part of the work we do here at GRI is demonstrating to SMEs that they can benefit from sustainability reporting. When we look at companies reducing emissions, the business case is actually quite clear. Most of the emissions within a business’ control are associated with costs such as heating or cooling office buildings or fuel for vehicles or electricity used for running equipment. As such, a reduction in emissions is usually coupled with a reduction in those costs. That’s a tangible benefit to a company’s bottom-line.

Pitsillides: Do you believe that emissions should be considered a de facto material issue for all companies, given the urgency of the problem with air pollution as stated by the UN? Should, for example, financial institutions re-examine the boundary of this important material issue? In simple terms, should financial institutions not just report the emissions they are responsible for, but also carry out environmental assessments of clients and clients projects? In addition, should they find ways to support companies that are taking responsible action with clean energy and possibly reduce support for companies that are not doing so?

Mohin: I believe that looking at longer term risk, like climate change, is part of the fiduciary duty of financial institutions. That is why the information disclosed in GRI-reports is important for investors. Savvy investors, including financial institutions, should understand how the companies in which they are invested are performing in terms of environmental, social and governance (ESG) issues. I would like to see all investors using ESG data to inform decision making, so that we can move financial capital towards companies and projects that are making positive contributions to the world. This is particularly important if we want to achieve the Sustainable Development Goals (SDGs).

Trillions of dollars in investment capital are necessary in order to make the achievement of the SDGs a reality, but currently there is a disconnect, between the sustainability data that companies publish and the information that investors need for decision making. To help close this gap, GRI is working together with the UN Global Compact and the Principles for Responsible Investment on “Investor-relevant Business reporting on the Sustainable Development Goals.” This document will provide a brief overview of why investors are increasingly demanding SDG-related performance data, help corporate practitioners better understand who the relevant actors are within the investor community and include recommendations on how to present SDG-related information so that it resonates with an investor audience.

Pitsillides: Are there other issues that could be considered as material for a majority of companies, so as to meet global sustainability goals much sooner and accelerate change?

Mohin: Materiality assessments are very much determined by the context within which a specific business operates. This context is definitely informed by the particular industry or sector of the economy within which a company operates, but each business is unique. That said, the SDGs are the global framework for understanding how the world needs to change in order to create the conditions for sustainable development. All companies and their stakeholders should use the SDGs as a framework to guide their activities.

Pitsillides: Are small and medium-sized enterprises taking advantage of the flexibility the GRI Standards offer to disclose the most relevant information (materiality)? Are they taking action on what matters, where it matters for their business? Have they begun to report?

Mohin: We know that SMEs account for a significant portion of global economic activity and also create a large amount of sustainability impacts. But when we look into the GRI Sustainability Disclosure Database, a repository of over 46,000 sustainability reports, we see that a mere ten percent of them are from SMEs. With the GRI Standards, we are providing SMEs (and other businesses) the option to report on specific sustainability information by using as little as one GRI Standard, or a part thereof, without producing an entire sustainability report. So we hope to see the number of SMEs that disclose information on their sustainability impacts increase in the years to come.

Pitsillides: Thank you very much Mr Mohin.

The post Interview with Mr Tim Mohin, GRI Chief Executive – SustainCase Clean Air Campaign appeared first on SustainCase - Sustainability Magazine.

This research by GRI explores how a sample of 206 GRI reporters (companies reporting on their sustainability performance using the GRI Standards) communicate their support and actions regarding the UN Sustainable Development Goals (SDGs). The study is based on published sustainability reports and information from the reporters’ websites.

The research team rated companies against five criteria: Commitments, Plans, Actions, Progress and Suppliers. For each category, a traffic light system was applied and each company was awarded either a green, amber or a red colour rating for their support of the SDGs. A green rating in any given category equalled to one star, so five stars meant that a company achieved a green rating (the best possible) in all five categories.

• Commitments
• A total of 83 companies (40.3%) were awarded a star for explicitly linking measurable commitments to the SDGs. 74 companies (35.9%) indicating measurable commitments to tackle social and environmental issues that indirectly supported the SDGs were given amber ratings, while 49 businesses (23.8%) were given red ratings for not outlining any specific and measurable commitments to the Global Goals.

• Plans
• 143 companies (69.4%) were awarded a star for their statement of support for the SDGs, and for mentioning which SDGs they prioritised. 27 companies (13.1%) were given an amber rating for showing general support of the SDGs but not clarifying which Goals were most relevant to their business. 36 businesses (17.5%) were awarded a red rating for not expressing any support, through statements, for the SDGs. A star for plans towards the SDGs was awarded to businesses across at least 16 different industries.

• Actions
• A total of 61.2% of the companies researched (126 companies) achieved a star for showing how their positive actions supported the SDGs and addressed social and environmental issues, aligning those actions with a specific SDG. 62 companies (30.1%) were awarded an amber rating for taking actions to tackle social and environmental issues but not aligning them with a particular Goal, while 18 companies, or 8.7%, were given red ratings for not taking any actions in support of the SDGs.

• Progress
• 42 companies (20.4%) were awarded a star for their progress in support of the SDGs, evidencing measurable data of their actions and explicitly aligning them to a particular SDG. 70 businesses (34.0%) achieved an amber rating for progress made towards achieving the Goals, but without an explicit link to any specific SDG. 94 companies (45.6%) were given a red rating for their reporting efforts and progress made. 100% of companies within Aviation, Equipment, Railroad, Retailers and Water Utilities received a star for reporting progress on their contribution to the SDGs.

• Suppliers
• Only one of the companies researched achieved a star for encouraging their suppliers to explicitly support the SDGs. 157 companies (76.2%) were awarded an amber rating for working with their suppliers to tackle environmental and social issues, while 48 companies (23.3% ) were given red ratings for not showing or mentioning how and if their suppliers supported the Global Goals.

Key research findings include:

• Of the 206 companies researched 0.5% achieved five stars, 34.9% were awarded four stars, 14.1% were given three stars, 13.6% were awarded two stars, 7.3% achieved one star and 29.6% were awarded zero stars.
• 83% of companies stated their support for the SDGs.
• The most common Goals supported by businesses were SDGs 8 (Decent Work And Economic Growth), 12 (Responsible Consumption And Production), and 13 (Climate Action).
• 69% of businesses stated which Global Goals were most relevant to their business.
• 40% of the companies researched made measurable commitments towards the SDGs.
• Businesses in Asia Pacific showed the highest level of reporting against the Global Goals.
• Only 13 businesses (6.3%) reported that their current operations may have a negative impact on one or more of the SDGs.
• The largest companies appeared to have more developed reporting against the SDGs.

The study concludes that today, more than ever before, strong international cooperation is necessary to ensure that humanity recovers from the COVID-19 pandemic and achieves the SDGs. Both the global community and businesses play a key role in this recovery, and in creating a more equitable and sustainable post-Covid world.

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.

This article is based on published information by GRI. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the publication’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://www.globalreporting.org/media/ab5lun0h/stg-gri-report-final.pdf

The post State of Progress: Business contributions to the SDGs appeared first on SustainCase - Sustainability Magazine.

The Global Reporting Initiative (GRI) promotes the use of sustainability reporting in order for companies and organizations to become more sustainable and be a vital part of a sustainable global economy. GRI has a mission: to make sustainability reporting standard practice. Thus, GRI produces free Sustainability Reporting Standards for all companies and organizations to report their economic, environmental, social and governance performance and positive or negative impacts.

Sustainability reporting will help your company identify key issues to focus on and, accordingly, improve productivity and reduce costs. Additionally, through gaining access to new markets and clients your company’s competitiveness will improve. And these are just some of the benefits.

Let us take a closer look at the main benefits of sustainability reporting, based on the experiences and testimonies of companies that GRI has engaged with in a number of projects:

• Attracting, motivating and keeping employees. Sustainability reporting shows beyond doubt that your company takes sustainability issues seriously and is prepared to publicly discuss, measure and, most importantly, act on them. This will enhance your company’s reputation empowering, motivating and attracting employees committed to your company’s strategic objectives.
  …more

• Spotting strengths and weaknesses. The reporting process will help you identify and evaluate problem areas before they become unwelcome surprises and, also, discover unexpected opportunities ahead of your competitors. During the reporting process you may also realize that certain matters were not dealt with as well as you thought or had not been considered at all.
  …more

• Developing your sustainability vision and strategy. The reporting process will encourage and motivate your company to determine its vision and strategy for operating more sustainably and for providing more sustainable products and services.
  …more

• Improving management systems and setting goals. Sustainability reporting allows your company to track and appraise its performance, highlighting and making changes in areas that need improvement, such as productivity or business costs. Once your company starts reporting there will be increased expectations regarding its performance goals.
  …more
  

• Attracting funding. Lending institutions and investors increasingly take account of a company’s vision and performance in key sustainability issues when making funding decisions. A GRI reporting process will help your company manage sustainability issues more efficiently and be prepared to discuss openly its performance.
  …more

• Transparency and stakeholder engagement. Sustainability reporting will enhance your transparency and will be instrumental in building a solid relationship, based on mutual trust, with the company’s stakeholders whether these be clients, suppliers or shareholders, employees, local communities, NGOs or local government.
  …more

• Gaining competitive advantage. As sustainability reporting is still not common practice across all business sectors, your company can become a “leader in sustainability”.
  …more

• Improving your reputation, building trust and respect. Your company’s reputation, the trust and respect you have gained are of the utmost importance for your stakeholders. Accurate, honest, complete corporate reporting (reporting both on what goes well and on where there is room for improvement) builds trust and respect for your company.
  …more

Related SustainCase section:

“Why Sustainability is important – Articles-Research”. The latest research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

FBRH GRI Standards Certified & ISEP recognised Sustainability Course | Venue: London LSE

By registering for the next 2-day FBRH GRI Standards Certified & ISEP recognised course you will be taking the first step in gaining the many benefits of sustainability reporting.

The post The value of sustainability reporting appeared first on SustainCase - Sustainability Magazine.

The learning you gain

This course introduces participants to sustainability reporting practice and to key concepts of the GRI sustainability reporting Standards such as the reporting principles, impact, stakeholder engagement, material topics. Course attendees will become familiar with sustainability challenges, understand what sustainable development is and the benefits of reporting.

After attending the course participants will be able to:

• List the key elements of a sustainability report and the value and benefits of reporting
• Explain the structure, features and key concepts of the GRI Standards
• Define sustainability through a holistic, structured, multi-dimensional approach
• Describe sustainability challenges and demonstrate how reporting contributes to sustainable development

Questions to ask yourself when choosing a preparation programme – GRI Academy or a CTP-Certified Training Partner:

• Does the CTP have experience? What other clients have they worked with?
• Are there testimonials or reviews available?
• Is there an instructor for you to ask questions?
• After the course, are you equipped with resources you can implement right away?

The FBRH Difference

• Pre-Course Preparation: Our pre-course preparation questionnaire helps us understand your specific needs
• Post-Course Info Pack: After the course you will receive a valuable post-course information pack
• Exclusive templates, exclusive case studies that you can adopt and adapt to your organisation’s needs
• You will be able, immediately, to prepare your sustainability action plan

Why FBRH

• After successfully completing the course you will receive GRI, CPD and ISEP completion certificates
• FBRH Consultants has 24 years of experience
• Attendees’ reviews provide key insights regarding the course’s high quality
• FBRH’s clients include some of the world’s biggest companies

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.

The post Learn how to Create a 1st-Class GRI Sustainability Report appeared first on SustainCase - Sustainability Magazine.

Sustainability has been a hot topic over the past decade, not least due to the urgent need to strengthen climate resilience. When it comes to sustainability reporting, disclosures, organisations, and metrics, there are a lot of acronyms, from ESG to GRI to COP. They may provide frameworks and guidelines, help set goals, and assess how businesses may be affected by things like climate change or impact the environment and society.

For companies that are just beginning to engage in sustainability reporting, it can be discouraging. Hence, here’s a list of commonly used acronyms and terminologies, what they stand for and mean.

1. ESG: Environmental, Social, Governance
These are criteria or categories for people to evaluate an organisation’s performance, impacts and how far advanced they are with sustainable development. Environmental factors may include greenhouse gas emissions, waste management and energy efficiency, social factors may refer to underpaid labour, workplace health and safety and the protection of human rights, while governance factors might relate to stakeholder engagement, transparency and anti-corruption.

2. SDGs: Sustainable Development Goals
The Sustainable Development Goals (SDGs) were adopted by the United Nations in 2015 as a universal call to action to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity. The 17 SDGs are integrated, recognising that action in one area will affect outcomes in others. Some of the 17 goals include gender equality, quality education, climate action, zero hunger, affordable and clean energy.

This article explains the what and why.
Practical implementation is a separate step.

3. GRI: Global Reporting Initiative
GRI is an independent, international non-profit organisation that helps businesses and organisations worldwide account for their impacts by providing them with the tools to communicate those impacts. The GRI Standards are the world’s most widely used sustainability reporting standards, adopted by 73% of the largest 250 global companies and by 68% of a wider sample of 5,800 businesses around the globe.

4. ISSB: International Sustainability Standards Board
On 3 November 2021, the IFRS (International Financial Reporting Standards) Foundation Trustees announced the creation of a new standard-setting board, the International Sustainability Standards Board (ISSB). The ISSB’s aim is to deliver a comprehensive global baseline of sustainability-related disclosure standards that provide international investors and other capital market participants with quality, reliable information about companies’ sustainability-related risks and opportunities (climate and other ESG matters), to help them make informed decisions.

Feeling overwhelmed? That’s normal.

Most professionals reading this are not trying to become sustainability experts.
They simply want to:

• avoid mistakes
• meet expectations
• build something they won’t have to redo next year

That’s exactly how SustainCase is designed.

If any of these sound like you, start here:

 I’m new and don’t know where to begin
 I need to report, but only proportionately
 I’m under time pressure
 I want to do this once and do it properly

How to Begin Sustainability Reporting — Safely

A short, practical orientation used by professionals before they commit time or budget.

5. COP: Conference of the Parties
For almost three decades, the UN has been bringing together almost every country on the planet for global climate summits, so as to find ways to reduce greenhouse gas emissions globally in an equitable way and fight climate change. This annual meeting is also called the COP. The latest COP summit, referred to as COP27 as it was the 27th UN climate change conference, took place in November 2022, in Egypt.

6. ESRS: European Sustainability Reporting Standards
The European Sustainability Reporting Standards (ESRS) are widely regarded as a key step towards holding all large EU companies accountable for their sustainability impacts. Under the EU’s Corporate Sustainability Reporting Directive (CSRD), the ESRS will apply to almost 8,000 EU & non EU businesses from 2024.

7. Circular Economy
A circular economy is an alternative to a traditional linear economy that involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible, thus reducing pressure on the environment. This helps to drive greater resource productivity, creating a more competitive economy and addressing resource scarcity.

What happens next (if you want this to work):

1. Get oriented
2. Decide scope
3. Build once, not twice
4. Grow capability over time

SustainCase exists to support that journey — proportionately.

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.

This article is based on published information by Insider, IFRS and Aventis Learning Group. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the publication’s meaning. If you would like to quote these written sources from the original please revert to the following links:

https://www.businessinsider.com/companies-need-to-understand-confusing-acronyms-of-esg-and-sustainability-2022-7

https://www.ifrs.org/groups/international-sustainability-standards-board/

https://aventislearning.com/top-8-most-used-sustainability-acronyms/

The post ESG, SDG, GRI, and more: What do the sustainability acronyms all mean? appeared first on SustainCase - Sustainability Magazine.

GRI provides revised guidance to help companies link the Sustainable Development Goals with the GRI Standards  Tweet This!

The latest resource from GRI helps companies increase their focus on how they are contributing to achieving the UN Sustainable Development Goals (SDGs), by using the GRI Standards – the world’s most widely used sustainability reporting standards.

An updated version of Linking the SDGs and the GRI Standards is now available for organizations of all sizes and sectors. As a free resource, it maps the disclosures in the Standards against the targets under each of the 17 SDGs, making it easier to measure, track, and communicate progress on the SDGs. The latest release includes the GRI Universal Standards 2021 as well as GRI 11: Oil and Gas Sector 2021.

This article is based on published information by GRI. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the publication’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://www.globalreporting.org/about-gri/news-center/an-enabler-for-more-integrated-reporting-on-the-sdgs/?utm_source=google&utm_medium=social&utm_campaign=sdglinkagenewsmay2022

The post Enabling more integrated reporting on the SDGs appeared first on SustainCase - Sustainability Magazine.

The IFRS (International Financial Reporting Standards) Foundation and Global Reporting Initiative (GRI) have just announced a collaboration agreement under which their respective standard setting boards – the International Sustainability Standards Board (ISSB) and the Global Sustainability Standards Board (GSSB) – will seek to coordinate their work programmes and standard-setting activities.

The IFRS Foundation, which announced at COP26 the establishment of the ISSB to develop a comprehensive global baseline of investor-focused sustainability disclosures for the capital markets, and GRI, the leading global standard-setter for multi-stakeholder focused sustainability reporting, also announced that they will join each other’s consultative bodies related to sustainability reporting activities.

The agreement reflects the importance of ensuring compatibility and interconnectedness of investor-focused baseline sustainability information that meets the needs of the capital markets, with information that serves the needs of a broader range of stakeholders. The IFRS Foundation and GRI recognise the considerable public interest in aligning, where possible, their respective work programmes, terminology and guidance, thus helping to reduce the reporting burden for companies and to further harmonise the sustainability reporting landscape at a global level.

By working together, the IFRS Foundation and GRI provide two ‘pillars’ of international sustainability reporting  Tweet This!: a first pillar representing investor-focused capital market standards of IFRS Sustainability Disclosure Standards developed by the ISSB, and a second pillar of GRI sustainability reporting requirements set by the GSSB, compatible with the first, designed to meet multi-stakeholder needs.

Commenting on the agreement, Erkki Liikanen, Chair of the IFRS Foundation Trustees, said:

“At COP26 we heard strong support for consolidation in the sustainability reporting landscape.  The work of the ISSB and its global baseline concept will help deliver this objective for the capital markets, whilst this agreement with GRI will help ensure capital market standards are developed in a way that minimises reporting burden for those companies also using GRI Standards.”

Eelco van der Enden, Chief Executive Officer of GRI, said:

“The MoU between GRI and the IFRS Foundation is a strong signal to capital markets and society that a comprehensive reporting system, which combines financial and impact materiality for sustainability reporting, is possible on a global scale. Aligning GRI’s established and widely adopted standards for sustainability impacts with the investor-focused standards being developed by the ISSB will benefit both companies and investors, as well as a wide range of stakeholders around the world.”

Emmanuel Faber, Chair of the ISSB, said:

“For those interested in considering impact when assessing enterprise value, using the standards set by the ISSB and GSSB together will offer a complete and compatible suite of sustainability disclosures.  This agreement will see the two standard-setting boards cooperate in pursuit of that objective.”

Judy Kuszewski, Chair of the GRI GSSB, said:

“The collaboration between the GSSB and the ISSB demonstrates our shared commitment to the global alignment of disclosure requirements. This is crucial if we are to enable consistent reporting by companies, which increases accountability and drives responsible business practices. We look forward to aligning work programs and to making the two-pillar corporate reporting system a reality, with financial and sustainability reporting on an equal footing.”

The agreement, in the form of a Memorandum of Understanding (MoU), is the latest development in efforts to consolidate or align multiple international initiatives covering sustainability reporting into a more cohesive approach for the benefit of companies, investors and society at large.

The IFRS Foundation previously announced consolidation with the Climate Disclosure Standards Board and the Value Reporting Foundation (which houses Integrated Reporting and SASB Standards). The ISSB intends to publish, next week, proposed Climate and General Sustainability-related Disclosure requirements that, once finalised, will form the global baseline for climate-related disclosures. The global baseline concept has been welcomed by the G20 Leaders, the International Organization of Securities Commissions (IOSCO) and others.

As the leading global standard-setter for sustainability reporting that addresses an organization’s impact on the economy, environment, and people for a multi-stakeholder audience, the GRI Standards are adopted extensively by companies worldwide. Many jurisdictions look to the GRI Standards when developing their own multi-stakeholder sustainability reporting requirements. The GRI Standards are, also, continually reviewed, with current developments including new Sector Standards and an updated Biodiversity Standard.

This article is based on published information by GRI. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the publication’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://www.globalreporting.org/about-gri/news-center/ifrs-foundation-and-gri-to-align-capital-market-and-multi-stakeholder-standards/

The post IFRS Foundation and GRI create an interconnected approach for sustainability disclosures appeared first on SustainCase - Sustainability Magazine.

GRI has just published a new Sector Standard: GRI 12: Coal Sector Standard 2022.  Tweet This! This is the second of 40 planned GRI Sector Standards which will set reporting expectations on the sustainability issues that matter most.

Coal has been prioritised based on the sector’s widely documented impacts on sustainable development, including those related to climate change, biodiversity, economic development and human rights.

Amid global efforts to phase out coal mining and the pressing need to achieve a just transition to a low-carbon economy, this Standard seeks to hold the sector to the highest levels of scrutiny and accountability. Covering 22 topics considered likely material for reporting by companies in the coal sector, GRI 12 aims to enable transparency on the multitude of impacts that need to be better managed and communicated, with key features that include:

• Forward looking climate disclosures, focusing on the sustainability of business models and a just low-carbon transition.
• Holistic approach to managing impacts on communities and vulnerable groups, ensuring respect for human rights.
• Robust reporting on health and safety, drawing on best practice for tailings management.
• Spotlight on ethical business practices, with strengthened scrutiny over ownership structures and payments.

The GRI Coal Standard, which comes into effect for reporting as of January 2024, was developed by a multi-stakeholder working group, ensuring global legitimacy.

This article is based on published information by GRI. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the publication’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://www.globalreporting.org/about-gri/news-center/accountability-on-coal-managing-the-impacts-of-a-sector-in-transition/

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More ambition in scope and reach is needed to achieve greater impact.

Following the publication of the European Commission’s proposal for the Sustainable Corporate Governance Directive, GRI – which provides the world’s most widely used sustainability reporting standards –  called for human rights and environmental due diligence to be more strongly embedded in the legal framework.

Responding to growing public demand for more effective tools to hold companies accountable for their business practices, last October a significant update to the GRI Universal Standards was launched, which included strengthened due diligence reporting. The Universal Standards 2021 apply to all reporting organisations using the GRI Standards. The revision introduced new disclosures on policy commitments for responsible business conduct, including respect for human rights. Most importantly, the Universal Standards are the first and only reporting standards to fully reflect due diligence expectations for sustainability impacts  Tweet This!, as set in intergovernmental instruments by the UN and OECD.

Peter Paul van de Wijs, Chief External Affair Officer at GRI, said:

 “We are pleased that companies subject to the EU’s Sustainable Corporate Governance Directive will have to integrate human rights, the environment and climate into their decisions, to ensure their business model and strategy are compatible with the transition to a sustainable economy. This includes that companies must identify the extent to which climate change is a risk to their operations.

 However, we are concerned by the removal of corporate governance requirements and watered down obligations on potential adverse environmental impacts. Furthermore, the lack of clarity on supplier contracts and third party verification will not achieve the required transparency on the supply chain.  Moreover, a loophole introduced means companies could be safeguarded from civil liability claims, in situations where suppliers who have not fulfilled their obligations are able to provide verifications based only on generic contractual clauses.”

 Tabitha Bailey, GRI Policy Coordinator, added:

 “The limited scope of the Directive – to apply to around 1% of European companies (14,000 businesses) and 3,000 firms outside of Europe – is a missed opportunity. Findings from the Business & Human Rights Resource Centre indicate they have approached 600 European companies since 2020 about alleged human rights abuses, of which the vast majority occur outside the EU.

 There are already over 10,000 companies voluntarily using the GRI Standards for reporting and managing their impacts. We are at a critical time in protecting human rights and the environment, across the whole supply and value chains. For this Directive to be truly effective, it must be more ambitious in reach and scope.”

This article is based on published information by GRI. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the publication’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://www.globalreporting.org/about-gri/news-center/gri-underwhelmed-by-eu-sustainable-corporate-governance-directive/

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With changes under way in the sustainability reporting landscape, clarity on what the scope of the various initiatives are, as determined by their approach to materiality, is key for organisations to understand their reporting obligations.

The latest issue of The GRI Perspective – The materiality madness: why definitions matter – demystifies the recent explosion in terminology and explains the approaches of the GRI Standards (impact materiality), the IFRS’ International Sustainability Standards Board (ISSB) (financial materiality), and the incoming European Sustainability Reporting Standards (double materiality) – and how they interconnect.

The paper sets out that, to meet the expectations of stakeholders, companies have to disclose sustainability information that relates to both financial value creation and their impacts on the environment and society. Taken together, these two approaches form the basis for double materiality.

Eelco van der Enden, CEO of GRI, said:

“It stands to reason that investor-focused sustainability reporting through the financial materiality lens alone will not allow for companies to be held accountable for their impacts on the environment and people. To suggest otherwise sows confusion and underlines why we need to be clear about the differences and synergies between the various initiatives; in particular, the approaches to materiality and the audiences they serve.

At GRI, we view the ISSB’s sustainability-related disclosure plans and Europe’s incoming Corporate Sustainability Reporting Directive as complementary rather than competing. Alongside GRI’s widely-adopted standards for sustainability impacts, there are strong opportunities for alignment between all three.

We believe it is in the interests of all stakeholders to move to a two-pillar corporate reporting structure, with financial and sustainability reporting on an equal footing. The basis of this overarching system has to be double materiality. That is the only way to achieve the comparable and effective reporting needed to drive corporate accountability.”

The GRI Perspective is a regular series, launched in January 2022, which dives under the surface of topical themes in the world of sustainability reporting.

This article is based on published information by GRI. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the publication’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://www.globalreporting.org/about-gri/news-center/understanding-materiality-can-unlock-accountability/

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