In today’s rapidly evolving corporate world, transparency and sustainability are more than just buzzwords; they’re essential pillars for any forward-thinking organization. Businesses across the globe are increasingly seeking ways to not only minimize their environmental footprint but also to showcase their commitments to sustainable practices. In this context, a significant movement has been gaining momentum, guiding companies on the path to more ethical, environmental, and social governance. This initiative is reshaping the landscape of corporate responsibility, prompting a widespread reevaluation of how business success is measured and reported. Join us as we explore the depths of this movement and uncover its impact on the global corporate narrative.

Based on the findings from the KPMG Survey of Sustainability Reporting [1], an extensive exploration of the disclosure practices was conducted on the most profitable 250 businesses globally (G250). Additionally, the survey broadened its scope to include 100 top companies from 58 different countries (N100). The data was published on the 26th of October 2022, providing a comprehensive analysis of the leading business entities across varied regions:

• Currently, 78% of the G250 have embraced the GRI Standards for their reporting needs, a significant increase from 73% in 2020.
• GRI is utilized by 68% of the 5,800 N100 firms, an increase from the previous 67% back in 2020 when the N100 sample size was smaller.
• In summary, the percentage of G250 companies reporting on sustainability or ESG remains stable at 96%, while for the N100 companies, this figure has seen a slight increase from 77% in 2020 to 79%.
• While a substantial majority of G250 (80%) and N100 (71%) companies openly share their carbon reduction efforts, less than half of the same groups, (46% of G250, 40% of N100), disclose their initiatives on biodiversity.
• The survey reveals that nearly three-fourths of the respondents (74% from G250, 71% from N100) share reports concerning the SDGs.
• GRI provides the exclusive reporting standards adopted by the majority of businesses surveyed globally (75% in the Americas, 68% in Asia-Pacific and Europe, 62% in the Middle East & Africa).

What Is GRI? 

について グローバル・リポーティング・イニシアティブ（GRI） [2] stands at the forefront of promoting sustainable business practices through its widespread adoption of sustainability reporting standards. Founded in the late 1990s, GRI provides a framework that organizations around the world can use to report their economic, environmental, and social impact. This comprehensive reporting framework is designed to be universally applicable, regardless of an organization’s size, sector, or location, making it a global benchmark for transparency and sustainability.

GRI’s core aim is to encourage businesses to measure, understand, and communicate their efforts towards sustainability, thereby fostering greater corporate responsibility. By standardizing the way companies report on their sustainability efforts, GRI helps stakeholders, including investors, customers, and governments, to make informed decisions based on reliable and comparable data. Through its guidelines, GRI empowers companies to not only report on their achievements but also to identify areas for improvement, driving the global agenda towards a more sustainable and equitable future.

Understanding The GRI Standards 

について GRI Standards [3] provide a means for organizations of all sizes and types to comprehend and relay their economic, environmental, and societal impacts in a verifiable and comparable manner, thereby enhancing their transparency in relation to sustainable development contributions. Furthermore, these standards are not just pertinent to companies, but they are crucial to a wide array of stakeholders such as investors, policy makers, capital markets, and the general public.

The GRI Standards are categorized into three interconnected sections, designed to provide a flexible yet comprehensive structure for sustainability reporting. These modules are:

• Universal Standards: These foundational standards are applicable to every organization that adopts the GRI reporting framework, regardless of their industry or geographic location. The Universal Standards focus on general disclosures such as organizational profile, reporting practice, and governance, setting the groundwork for transparent, consistent reporting. 
• Sector Standards: Recognizing the unique impacts and issues faced by different sectors, the GRI has developed specific standards for certain industries. These Sector Standards provide tailored guidance that enables organizations within a specific sector to identify and report on their most significant impacts, both positive and negative, on the economy, environment, and society. 
• Topic-Specific Standards: These standards allow organizations to report in-depth on specific topics that are relevant to their operations and stakeholders. The topics span across economic, environmental, and social categories, including but not limited to, emissions, water and effluents, labor practices, human rights, and product responsibility. Topic-specific standards ensure that organizations can provide a detailed account of their sustainability performance and impacts in areas that matter the most.

Key Characteristics Of The GRI 

Wide Range Of Topics One of the defining features of the GRI framework is its comprehensive approach to sustainability reporting, covering a wide range of topics crucial for understanding an organization’s impact on the world. This holistic perspective ensures that companies consider not only environmental aspects but also social, economic, and governance issues. Topics like energy consumption, waste management, gender equality, and anti-corruption practices are all integral parts of the GRI Standards, reflecting the diverse nature of sustainability challenges and opportunities facing businesses today.

Flexible Structure The GRI Standards guide businesses in developing a comprehensive sustainability report that encompasses all areas where their impacts are major. On the other hand, they offer the flexibility to choose and report on discrete subjects to address distinct stakeholder requirements or adhere to regulatory mandates.

Can Be Used By Any Organizations The versatility of the GRI Standards is a testament to their universal applicability. Any organization, regardless of its size, sector, or geographical location, can adopt these standards to communicate their sustainability efforts. This inclusivity is a fundamental principle of the GRI, aiming to make sustainability reporting a norm rather than an exception. By fostering a culture of transparency, organizations can not only enhance their corporate reputation but also build trust with stakeholders, including investors, customers, and the communities in which they operate.

Compatible With Other Frameworks GRI is consistently collaborating with various organizations to promote the idea of unified global reporting standards. These Standards can be utilized by companies alongside a diverse array of frameworks such as the International Integrated Reporting Framework, CDP climate change and water questionnaires, and SASB industry standards, etc.

Regularly Updated As sustainability challenges evolve, the GRI Standards are continually updated to reflect the most significant and relevant issues facing businesses. This ensures that organizations can report on their impacts in a timely and accurate manner, keeping up with the changing needs of stakeholders.

How To Utilize The GRI Standards? 

To effectively implement the GRI Standards for sustainability reporting, organizations must commence by conducting a thorough assessment of their sustainability impacts, risks, and opportunities. This initial step involves identifying the economic, environmental, and social areas where the organization has the most significant impact. It is crucial for businesses to engage with their stakeholders during this phase to understand their concerns and expectations regarding sustainability. Stakeholder engagement not only aids in prioritizing the topics for the report but also ensures that the reporting process remains aligned with the needs and interests of those most affected by the organization’s activities.

Following the identification and prioritization of key sustainability topics, organizations should then gather data related to these areas, ensuring accuracy and relevance. The data collection process is foundational to the GRI reporting framework, enabling organizations to measure and monitor their performance over time. With precise data in hand, companies are better equipped to set meaningful goals, develop strategies for improvement, and communicate their sustainability achievements and challenges transparently. This process fosters accountability and provides stakeholders with a clear view of the organization’s sustainability efforts.

Key Steps For The GRI Reporting Process: 

1. Commitment and Kick-off Secure commitment from top management and establish a cross-functional team to oversee the reporting process.
2. ステークホルダー・エンゲージメント Identify key stakeholders and engage with them to determine their sustainability concerns and expectations. 
3. マテリアリティ評価 Conduct a materiality assessment to identify and prioritize the sustainability topics that are most relevant and significant for both the organization and its stakeholders. 
4. データ収集と管理 Gather accurate and reliable data for each of the material topics identified. This step often involves setting up systems for ongoing data management. 
5. Performance Analysis Analyze the collected data to assess the organization’s sustainability performance, identifying trends, challenges, and areas for improvement. 
6. 報告 Compile the information into a structured report following the GRI Standards, articulating the organization’s sustainability strategy, actions, and progress. 
7. Communication and Dissemination Share the report with stakeholders through various channels, ensuring it is accessible and responsive to the needs of different audiences. 
8. Feedback and Continuous Improvement Gather feedback on the report from stakeholders and use this to inform future reporting cycles, closing the loop on the reporting process and driving continuous improvement in sustainability performance.

What Are The Benefits Of The GRI? 

The adoption of the GRI Standards for sustainability reporting brings numerous benefits to organizations, including but not limited to: 

• 透明性の向上: Utilizing the GRI Standards helps companies to communicate their sustainability performance in a transparent and standardized manner, making it easier for stakeholders to understand and assess the organization’s impact on society and the environment. 
• Improved Stakeholder Trust: By openly reporting sustainability challenges and achievements, organizations can build and maintain trust with their customers, investors, and the wider community, which is essential for long-term success. 
• Increased Competitive Advantage: Companies that report their sustainability efforts often gain a competitive edge by demonstrating their commitment to responsible business practices, attracting ethically-minded consumers and investors. 
• Better Risk Management: The process of GRI reporting encourages organizations to identify, assess, and manage sustainability-related risks more effectively, enhancing their resilience against environmental and social shocks. 
• 情報に基づいた意思決定: Detailed sustainability reporting provides valuable insights that can inform strategic decisions, helping businesses to allocate resources more efficiently and pursue opportunities for sustainable growth. 
• 規制遵守: With an increasing number of countries and regions mandating sustainability reporting, adhering to the GRI Standards can help organizations comply with legal requirements and avoid potential fines or penalties. 
• Facilitation of Benchmarking and Performance Improvement: The standardized nature of GRI reporting makes it easier for organizations to benchmark their performance against peers and industry best practices, driving continuous improvement in sustainability efforts. 
• Positive Corporate Image and Reputation: Companies that are seen as leaders in sustainability often enjoy a more positive image and stronger brand reputation, which can translate into higher sales, customer loyalty, and attracting top talent. 

What Are The Limitations Of The GRI? 

While the Global Reporting Initiative (GRI) framework provides a comprehensive method for sustainability reporting, it is also associated with several limitations, including: 

• Complexity and Resource Intensiveness: Implementing the GRI Standards can be complex and resource-intensive, requiring significant time, expertise, and financial resources. Smaller organizations, in particular, may find it challenging to meet the demands of comprehensive GRI reporting. 
• Generic Nature: The GRI Standards are designed to be applicable to a wide range of organizations worldwide. However, this generic approach may not fully capture the unique sustainability challenges and opportunities faced by specific industries or sectors. 
• Lack of Enforcement: The GRI framework operates on a voluntary basis and lacks a formal enforcement mechanism. This can lead to inconsistencies in the quality and depth of reports, potentially undermining the credibility and comparability of sustainability information. 
• Focus on Positive Performance: There is a tendency for organizations to highlight their sustainability successes over their failures or challenges in GRI reports. This selective reporting can skew stakeholders’ perceptions and limit the framework’s effectiveness in driving genuine improvements in sustainability performance. 

GRI And Other Standards

The GRI Standards, while widely used, represent just one approach to sustainability reporting among several global frameworks. In comparison to others like the Sustainability Accounting Standards Board (SASB) guidelines and the Task Force on Climate-related Financial Disclosures (TCFD) recommendations, the GRI stands out for its emphasis on broader stakeholder engagement and its applicability across diverse industries and regions.

The SASB, on the other hand, focuses more on industry-specific financial materiality, which appeals to investors seeking insight into how sustainability issues impact financial performance.

TCFD recommendations concentrate on climate-related financial risk and opportunities, offering a more targeted perspective than the GRI’s comprehensive sustainability scope.

This variety in focus and approach underscores the importance of organizations selecting a reporting standard that best aligns with their sustainability priorities, stakeholder needs, and strategic objectives.

まとめ 

In conclusion, while the GRI Standards serve as a pivotal framework for sustainability reporting, spearheading the dissemination of crucial environmental, social, and governance (ESG) information, organizations must tread carefully to ensure that their reporting is not only compliant but also meaningful. The ultimate goal should be to foster a culture of transparency and continuous improvement that genuinely contributes to sustainable development goals (SDGs). Businesses are encouraged to view GRI reporting not as an end but as a means to an end—a step towards the greater good of environmental stewardship, social responsibility, and economic viability for all stakeholders involved.

参考文献

[1] https://kpmg.com/xx/en/home/insights/2022/09/survey-of-sustainability-reporting-2022.html

[2] https://www.globalreporting.org/about-gri/GRI About GRI (globalreporting.org)

[3] https://www.globalreporting.org/standards/GRI Standards (globalreporting.org)