What is GRI? A Guide to Creating Sustainability Reports According to the GRI Standards for ESG Disclosure

The Global Reporting Initiative (GRI) is an independent international organization established in 1997, with the aim of developing comprehensive, transparent, and comparable sustainability reporting standards. These standards are designed to help organizations disclose information related to economic, social, and environmental impacts, while also supporting the achievement of the United Nations Sustainable Development Goals (SDGs) through a clear standards framework and practical guidelines that effectively address the needs of stakeholders.

What is GRI and what are its objectives?

The Global Reporting Initiative (GRI) is an independent international organization established in 1997 by the United Nations Environment Programme (UNEP) and the CERES network. GRI is headquartered in Amsterdam, the Netherlands.

The primary mission of GRI is to assist businesses, governments, and other organizations in understanding and communicating their sustainability performance, including their impacts on critical issues such as climate change, human rights, and anti-corruption. Its key objective is to create a comprehensive, transparent, and comparable standard for sustainability reporting across organizations and industries.

GRI plays a significant role in both business and society in several key areas:

1. Enhancing transparency and credibility: GRI standards enable organizations to disclose information about their social and environmental impacts in a transparent way, helping build trust with stakeholders.
2. Promoting sustainable development: GRI encourages organizations to take a proactive role in developing human capital, innovation, and environmentally friendly technologies, such as shifting from fossil fuels to renewable energy.
3. Aligning with Sustainable Development Goals (SDGs): GRI helps organizations report on their performance in a way that aligns with the United Nations’ Sustainable Development Goals.
4. Supporting strategic decision-making: Reporting under GRI standards enables organizations to identify gaps between their business practices and stakeholder expectations, leading to improved development and added value.
5. Fostering sustainable investment: GRI-based reports serve as a critical resource for investors to assess risks and opportunities in sustainable investments.

GRI operates as a network with more than 30,000 stakeholders and around 600 member organizations worldwide, including private sector companies, government agencies, civil society organizations, academic institutions, and trade associations. This collaborative approach helps develop frameworks and guidelines for sustainability reporting that address the needs of all sectors and advance global sustainable development.

Why report sustainability using GRI?

Reporting sustainability in accordance with the GRI Standards has become increasingly essential, as it enables organizations to communicate their economic, social, and environmental impacts in a comprehensive and transparent manner. This necessity stems from growing stakeholder demand for information on an organization's sustainability performance.

Organizations that adopt the GRI Standards benefit in several key ways:

1. Enhanced credibility and transparency: Reporting under internationally recognized standards fosters trust among stakeholders.
2. Identification of risks and business opportunities: The reporting process helps organizations understand their own impacts and manage risks more effectively.
3. Improved strategy and operations: Insights gained from sustainability reporting can inform business strategies and drive innovation.
4. Attracting investors: Sustainability reports serve as crucial sources of information for investors seeking sustainable investment opportunities.
5. Increased competitiveness: Organizations that report using the GRI Standards often enjoy a stronger public image and are better positioned to attract investment.

When compared with other standards, GRI stands out in the following ways:

• Broader scope: GRI covers a wide range of sustainability topics, whereas SASB focuses primarily on financially material issues.
• Wider environmental coverage: While TCFD emphasizes climate-related financial disclosures, GRI addresses environmental issues more broadly.
• Stakeholder inclusivity: GRI is designed for reporting to a wide range of stakeholders, while SASB and TCFD primarily target investors.
• Complementary with Integrated Reporting: Integrated Reporting focuses on linking financial and non-financial data and can be used alongside GRI to provide a more complete reporting framework.

The choice of standard depends on an organization’s objectives, resources, and specific needs. GRI is particularly well-suited for organizations aiming to provide comprehensive disclosures and meet the diverse expectations of their stakeholders.

Structure of the GRI Standards

The structure of the GRI Standards consists of three main sets of standards used in combination: Universal Standards, Sector Standards, and Topic Standards.

1. Universal Standards: These are the foundational standards that all organizations must use when reporting on sustainability. They include:

• GRI 1: Foundation 2021 – Sets out the principles for determining report content and quality.
• GRI 2: General Disclosures 2021 – Covers general information about the organization, such as governance structure, strategy, and stakeholder engagement.
• GRI 3: Material Topics 2021 – Provides guidance on identifying and managing the organization’s material topics.

2. Sector Standards: These are industry-specific standards that help organizations identify key issues and relevant indicators within their sector. Currently, GRI has developed Sector Standards for various industries (GRI 11–14), such as oil and gas, coal, agriculture and fishing, and mining.

3. Topic Standards: These standards provide guidance on reporting specific subject areas, divided into three main categories:

• Economic Standards (GRI 200 series) – Related to economic topics
• Environmental Standards (GRI 300 series) – Related to environmental topics
• Social Standards (GRI 400 series) – Related to social topics

Each Topic Standard includes requirements and recommendations for reporting on that specific issue, such as greenhouse gas emissions, energy use, or human rights.

This structure allows organizations to choose standards that align with their context and needs. Reporting begins with the Universal Standards as a base, followed by Sector Standards to identify key issues, and then Topic Standards to report on specific subjects in detail. Using this structure ensures that sustainability reports are comprehensive, comparable, and effectively respond to stakeholder needs.

Steps to prepare a report according to GRI

Preparing a report based on the GRI Standards involves five main steps as follows:

1. PREPARE - Internal Preparation

• Adjust internal processes to be report-ready
• Identify key economic, social, and environmental issues
• Consult with external experts as necessary

2. CONNECT - Engage with Stakeholders

• Identify key internal and external stakeholder groups
• Develop engagement plans tailored to each stakeholder group
• Employ diverse methods to gather feedback, such as surveys, interviews, and focus groups
• Analyze and summarize key issues raised from stakeholder input

3. DEFINE - Define Objectives and Report Content

• Review the input received from stakeholders
• Adjust internal processes to facilitate report development
• Set the reporting boundaries
• Conduct a materiality assessment to identify significant topics

4. MONITOR - Track and Collect Data

• Determine appropriate indicators for each material topic
• Use electronic data management systems and standardized forms to collect quantitative data
• Utilize in-depth interviews and focus groups for qualitative data
• Verify the quality and reliability of the data collected

5. REPORT - Prepare the Report

• Select appropriate report formats and channels suited to each stakeholder group
• Draft the report following the GRI Standards structure
• Ensure completeness of disclosures as required by the GRI
• Consider third-party assurance to enhance credibility

Following these steps enables an organization to produce a high-quality, transparent sustainability report that meets stakeholder expectations. Moreover, the reporting process helps the organization understand its impacts and supports the development of sustainable practices in the long term.

GRI and the Sustainable Development Goals (SDGs)

GRI Standards and the Sustainable Development Goals (SDGs) are mutually reinforcing. GRI has developed tools and guidelines to help organizations effectively integrate sustainability reporting with the SDGs.

Linking SDGs to Sustainability Reporting

1. Identify relevant SDGs: Organizations should assess which SDGs are impacted by or supported through their operations.
2. Define aligned indicators: Select indicators from the GRI Standards that can demonstrate performance related to the relevant SDGs.
3. Collect data: Gather data according to the selected indicators, taking into account their connection to the SDG targets.
4. Analyze and report results: Present information in the sustainability report that highlights the organization’s contributions to the SDGs.

Examples of Corresponding Indicators Between GRI Standards and the SDGs

• SDG 5 (Gender Equality) – GRI 405: Diversity and Equal Opportunity
• SDG 8 (Decent Work and Economic Growth) – GRI 401: Employment
• SDG 12 (Responsible Consumption and Production) – GRI 301: Materials and GRI 306: Waste
• SDG 13 (Climate Action) – GRI 305: Emissions

GRI and the UN Global Compact have jointly developed the “Business Reporting on the SDGs” framework to help organizations more effectively integrate the SDGs into their sustainability reporting processes.

Examples of SDG Reporting Using the GRI Framework

1. Identify the relevant SDGs at the beginning of the report
2. Show the connection between material topics and the related SDGs
3. Use GRI indicators to report performance supporting the SDGs
4. Present case studies or projects that concretely demonstrate support for the SDGs
5. Highlight future goals and action plans aligned with the SDGs

Using GRI Standards to report on SDG outcomes not only enables organizations to effectively communicate their commitment to sustainable development but also allows stakeholders to compare and evaluate organizational performance in the context of global sustainability goals.

Examples of GRI implementation in organizations

The application of GRI Standards within organizations can take various forms, depending on the nature of the business and organizational context. Examples of how leading Thai companies have adopted GRI include:

• Betagro Public Company Limited uses GRI Standards to disclose sustainability information through its annual sustainability report, covering economic, social, and environmental issues.
• IRPC Public Company Limited applies GRI Standards in reporting its sustainability progress, particularly in the area of research and development of environmentally friendly products.
• CP All Public Company Limited adopts GRI Standards to report on key sustainability issues, encompassing economic, social, and environmental dimensions.
• Sri Trang Agro-Industry Public Company Limited uses GRI Standards to prepare its annual sustainability report, emphasizing the disclosure of environmentally responsible operations, in line with its vision: “Sri Trang… the Green Rubber Company.”

In implementing GRI Standards, these organizations follow several key practices:

• Conducting materiality assessments to identify topics that are significant to the organization and its stakeholders.
• Linking their reporting to the United Nations Sustainable Development Goals (SDGs).
• Utilizing industry-specific indicators, such as focusing on greenhouse gas emissions and renewable energy use in the energy sector.
• Presenting both quantitative and qualitative data, along with explanations of how key issues are managed.
• Considering external assurance to enhance the credibility of their reports.

Effective application of GRI Standards not only enables organizations to transparently communicate their sustainability performance but also drives internal process improvements and fosters long-term value creation with stakeholders.

GRI training and certification

The GRI Certified Standards Training Course is an accredited program developed by the Global Reporting Initiative (GRI) to enhance knowledge and skills in preparing sustainability reports in accordance with the GRI Standards. This course covers both theoretical and practical components to ensure that participants can effectively apply what they learn.

In Thailand, the following organizations are accredited to offer the GRI Certified Standards Training Course:

1. Thaipat Institute – Offers the GRI Standards Certified Training Course
2. Thailand Productivity Institute – Provides the GRI Certified Standards Training
3. British Standards Institution (BSI) – Offers the GRI Certified Training Course on Sustainability Reporting, with participants receiving a certificate upon completion

In addition, there are various online resources providing information on sustainability reporting, such as the GRI website (www.globalreporting.org), which features manuals, guidelines, and case studies.

Developing human resources in sustainability reporting is essential for organizations aiming to enhance the quality of their disclosures. The following approaches are recommended:

1. Enroll staff in GRI-certified training programs
2. Establish dedicated sustainability teams within the organization
3. Foster cross-departmental collaboration to integrate sustainability
4. Promote learning through on-the-job training
5. Encourage knowledge and experience sharing with other organizations

Investing in the development of personnel in sustainability reporting not only improves the quality of reports but also helps embed sustainability principles into organizational processes and business decision-making.

Future trends of GRI and sustainability reporting

The Global Reporting Initiative (GRI) is expected to continue developing its standards to be more comprehensive and responsive to stakeholder needs. The focus will be on integration with other frameworks such as the Sustainability Accounting Standards Board (SASB) and the Task Force on Climate-related Financial Disclosures (TCFD), with the aim of creating a disclosure system that encompasses both financial and sustainability reporting.

Stakeholder dynamics are becoming increasingly complex, prompting organizations to prioritize ongoing stakeholder engagement. This is essential for improving reporting processes in line with evolving contexts. Moreover, stakeholders are placing greater expectations on organizations regarding transparency and accountability.

Globally, ESG (Environmental, Social, and Governance) reporting is rapidly evolving. There is a growing emphasis on linking ESG data with financial performance. Additionally, the use of digital technologies for collecting and analyzing ESG information is on the rise, enhancing the accuracy and timeliness of reporting.

There is also a growing trend toward aligning ESG reporting with the United Nations Sustainable Development Goals (SDGs). Organizations are expected to demonstrate their contributions to achieving these goals. Furthermore, ESG disclosures are expanding to include a more comprehensive view of both the positive and negative impacts that organizations have on society and the environment.

Looking ahead, the development of more globally harmonized ESG reporting standards is anticipated. These standards would facilitate easier comparisons across organizations and industries, enabling investors and stakeholders to more effectively evaluate corporate sustainability performance.

Summary and recommendations

The GRI Standards serve as a globally recognized framework for sustainability reporting, enabling organizations to communicate their economic, social, and environmental impacts comprehensively and transparently. The GRI structure consists of Universal Standards, Sector Standards, and Topic Standards, covering a wide range of sustainability issues.

For organizations interested in adopting the GRI framework, the following actions are recommended:

1. Thoroughly study and understand the structure and principles of the GRI Standards.
2. Conduct a materiality assessment to identify topics that are significant to the organization and its stakeholders.
3. Develop an efficient data collection system to support reporting in line with the various indicators.
4. Engage stakeholders consistently to gather input and understand their expectations.
5. Consider enrolling in the GRI Certified Standards Training program to enhance the knowledge and skills of personnel.

Additional Insights

• Reporting under the GRI framework is not merely about disclosure—it is an opportunity to improve internal processes and create shared value with stakeholders.
• Organizations should consider integrating ESG data into their business strategy to promote long-term sustainability.
• Leveraging digital technology for data collection and analysis can significantly improve reporting efficiency.

Additional Resources:

• GRI official website: www.globalreporting.org
• SET Sustainability Development Center, The Stock Exchange of Thailand: www.setsustainability.com
• Thaipat Institute: www.thaipat.org

Effectively implementing the GRI Standards can elevate an organization’s sustainability performance, build stakeholder trust, and contribute to sustainable development both nationally and globally.

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