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The Global Reporting Initiative Standards widely known as the GRI standards are the widest used standards in reporting on Sustainability, according to the Global Survey by KPMG. Sustainability reporting is quickly becoming a requirement for most companies because investors require more transparency to make decisions. Companies are now expected to report on the impacts they have on the Environment, Social and Governance (ESG) areas that their activities influence.
Although most countries have not made it mandatory for Companies to report on sustainability, the national and international regulatory bodies in the world have come out to give guidelines on how the sustainability reports should be done. In Kenya, the Nairobi Securities Exchange issued Guidelines on sustainability reporting and the International Financial Reporting Standards (IFRS) through its International Sustainability Standards Board (ISSB) monitors sustainability reporting internationally.
The Nairobi Securities exchange has given the guidelines that will enable Companies to report on ESG and the Standards of reporting that they recommend is the GRI standards.
The GRI Standards are issued by the Global Reporting Initiative, a non-governmental organization that was started in 1997. The organization has been championing for sustainable business practices that will ensure sustainability. The organization was the first to issue guidelines on sustainability reporting and with time they started issuing standards that have been reviewed over the years, with the most recent review being in 2021.
The GRI standards were the very first reporting standards to be issued and thereafter have been used by many multimillion organizations. This coupled by the fact that the standards are updated frequently has ensured that the standards are relevant to the dynamic corporate needs and constantly improving to motivate socially responsive organizations.
Why should you report with the GRI Standards?
Using the GRI Standards for sustainability reporting can offer several benefits for organizations. These include:
- Increased transparency: The GRI Standards require organizations to report on their sustainability performance in a transparent and accessible way, which can help to build trust and credibility with stakeholders.
- Enhanced stakeholder engagement: GRI standards requires organizations to engage with its stakeholders. This builds relationships that makes it easy to address concerns that arises. For effective execution of the initiative, a Company requires a Concerted effort from among its employees and the general public to appraise them on their objectives and how to engage.
- Improved decision making: By using the GRI Standards to report on their sustainability performance, organizations can gain insights into their environmental, social, and economic impacts, which can inform better decision making and resource allocation.
- Better risk management: The GRI Standards require organizations to identify and report on sustainability risks, which can help to mitigate potential negative impacts on the environment, society, and business operations.
- Competitive advantage: Organizations that use the GRI Standards to report on their sustainability performance can differentiate themselves from their peers and demonstrate their commitment to sustainability, which can help to attract customers, investors, and employees. For example, Equity Bank has grown its brand image to the fourth largest Banking Brand on Earth in part because of its sustainability agenda in Africa particularly in Kenya.
- Continuous improvement: Utilization of the GRI Standards to report on sustainability performance can help organizations track their progress over time and set targets for continuous improvement, which can help to drive positive change and innovation.
The GRI standards are grouped into three:
Universal Standards- These standards apply to all organizations in all sectors;
Sector Standards- These standards are specific to each sector therefore you will need to select the standards that apply to your sector of operation; and
Topic Standards- These topic standards apply to the material topics within your organization.
Organizations are encouraged to report on sustainability and to get started it is important to have the capacity to do the sustainability reports. Traction School of Governance is now a Training partner in the process of Certification. Our first GRI standards training cohort will be in 2024[BM1] .
Register with us today for the Global Reporting Initiative Professional Certification Program and start your journey of sustainability reporting. Contact us on 0700524589 or info@sgb.ac.ke.