.png)
Is GRI, the Global Reporting Initiative, still relevant? Do we need to keep talking about it?
We’re taking a break from the endless directives to focus on one of the first organizations that shaped sustainable reporting practices before they became mandatory: the Global Reporting Initiative (GRI).
What is the Global Reporting Initiative (GRI)?
The Global Reporting Initiative (GRI) is an international organization that provides one of the first standard frameworks for ESG reporting. Its focus is on transparency in environmental, social, and governance factors. It was launched in 1997 and established the first global standards for sustainability reporting.
Today, GRI still helps organizations disclose their climate-related risks and impacts on the environment, society, and economies. Their motivation was ahead of its time, helping companies first build a more sustainable and ethical business landscape, and then communicate results with stakeholders and investors. This gave early GRI adopters a head start in the game, prepping organizations for success before ESG reporting became mandatory.
What are the GRI Standards and how do they work?
While at its inception, no one could estimate the huge impact GRI would have on sustainability globally, the introduction of the GRI standards marked the start of a long-lasting era for sustainability frameworks.
Organizations finally had a standardized method for providing consistent ESG data across industries, changing the way many of them viewed corporate accountability.
Over one decade, the Global Reporting Initiative continuously adapted its standards to any new market changes and regulations as demand for ESG transparency finally soared.
The GRI Standards are modular systems of interconnected guidelines that allow organizations to report their ESG impacts in a transparent and structured way. The framework consists of three series:
- Universal Standards applying to all organizations
- Sector Standards specific to different industries
- Topic Standards for specific sustainability topics
Today, the GRI standards can be used for a variety of disclosures like the Corporate Sustainability Reporting Directive (CSRD) and the International Financial Reporting Standards (IFRS), regardless of region or industry.
In particular, alignment with CSRD requirements has strengthened GRI’s position as a globally applicable standard. This evolution has enabled GRI to stay relevant and widely adopted despite the rise of other frameworks and standards.
Although its longevity in the space could make newer organizations hesitate when it comes to using this standard, GRI is set to remain widely recognized in the future.
Dr. Jörg Klein, a leading voice in sustainability reporting, suggests that, while GRI remains useful for transition to European Sustainability Reporting Standards (ESRS), impending Corporate Sustainability Reporting Directive (CSRD) requirements in the EU may reduce GRI’s adoption among European companies just starting.
This trend reflects the EU’s increasingly rigorous reporting standards, which align closely with CSRD and ESRS and are mandatory for large and listed companies operating in the European Union.
Mike Bascombe, ESG and Sustainability Practice Lead at VantagePoint, also emphasizes that GRI’s influence is diminishing, with few organizations or markets relying on it as the primary framework:
Bascombe does add that GRI remains relevant as a foundational framework, providing companies with a starting point for sustainability and ESG reporting:
“Its simplicity may still appeal to smaller companies or those just beginning their reporting journey, but its significance in the broader reporting ecosystem is waning.”
For companies outside the EU, however, GRI can stand strong as it offers a globally recognized, adaptable framework to meet the expectations of international investors. Currently, over 10,000 companies worldwide use the Global Reporting Initiative standards in their reporting. This adoption rate is particularly strong in North America and Asia. Although European adoption is declining due to CSRD, the ESRS becoming mandatory will change that.
What is the difference between the GRI and the TCFD?
Initially established to focus on climate-related risks and opportunities, the TCFD (Task Force on Climate-related Financial Disclosures) framework encourages companies to disclose the financial impacts of climate change on their operations.
The TCFD's principles have been incorporated into the work of the International Sustainability Standards Board (ISSB), under the IFRS Foundation, to standardize global sustainability reporting. We’re expecting the framework will become more financially oriented, potentially narrowing its use among companies that want broader ESG reporting.
Dr. Klein notes, “With TCFD’s transition to IFRS, I don’t anticipate many organizations choosing to report according to TCFD in 2025.” He acknowledges TCFD’s conciseness but suggests that both GRI and CSRD offer more comprehensive disclosures, albeit sometimes at the cost of simplicity: “While I appreciated TCFD's concise approach, I feel that both CSRD and GRI make it challenging to focus on essentials, despite their attempts to allow focus through double materiality.”
What is the difference between the GRI and the CDP?
The Global Reporting Initiative and the Carbon Disclosure Project (CDP) serve distinct purposes and address different areas of corporate impact.
The CSRD remains the primary directive for disclosing sustainability information. So GRI and CDP, while valuable, will only be used alongside the CSRD.
Benefits of applying the GRI standards
The GRI Standards give organizations a pathway to transparent communication with regards to their ESG influence. In other words, they act as a framework for businesses to show they're staying committed and accountable for climate-related goals. On the one hand, this helps build trust—both with consumers and stakeholders.
But ESG-related expectations will likely always be on the rise. That's why the GRI Standards are so appealing: They adapt to new directives and global sustainability goals so organizations can always be one step ahead.
Dr. Jörg Klein observes the GRI is one step ahead of the TCFD: “GRI’s comprehensive nature makes it well-suited for companies looking to align with ESRS and manage a broad spectrum of disclosures”. He further points out that organizations that rely on GRI for their reporting will have an easier time meeting ESRS requirements.
How to report in accordance with the GRI Standards
Before reporting, you'll need to collect and select your ESG data as per the GRI Standards. At this stage, you can pick certain GRI indicators based on the material topics that are most relevant to your industry and consumer needs.
You'll find all the free resources and tools needed on the GRI website. The first step is for you to download the Standards for your sector. You'll use these to create custom ESG reports that meet both general and industry-specific disclosure needs.
When your sustainability reports are ready, you'll need to submit them with GRI. Once notified, the Global Reporting Initiative will add your report to its Sustainability Disclosure Database. Shareholders can access your reports there and you can also use the data for benchmarking with other organizations.
Ready to start collecting, validating, and managing your ESG data? A demo with ESG Flo is the best place to start, book your slot today!
