GRI launches new corporate standard on sustainability disclosure

Non-profit organisation Global Reporting Initiative (GRI) has launched the first global sustainability reporting standard that uses a “common language” for companies to disclose non-financial information.

The new reporting standard – based on existing GRI G4 guidelines – enables companies to disclose information on their efforts to contribute to the UN SDGs as well as their economic, environmental and societal impact.

The new improved standard will replace the G4 guidelines which will stop by 1 July 2018.

GRI interim Chief Executive, Eric Hespenheide, said: "The GRI standards make it much easier for companies to report non-financial information, using a well-understood shared language... The standards are more straightforward, making them accessible to potentially millions of businesses worldwide. Sustainability reporting, using the GRI standards, is the best way for a company to disclose its economic, environmental and social impacts, thus providing insights into its contributions - positive or negative - toward sustainable development."

GRI’s new standard is composed of 36 modules about greenhouse gas emissions, energy and water use as well as labour practices.

Free launch events will be held next month around the world to promote the new standard and encourage companies to use it.

This week, the International Organisation for Standardisation also announced that the ISO 14001 environmental management standard had reached 320,000 accredited organisations - an increase of 8 per cent from 2015.

The most went to Chinese firms with 114,303 ISO 14001 certifications accredited, while Japan received 26,000, Italy 22,000 and the UK 17,824.

Investors and policy makers have increasingly asked for companies to report on sustainability.

Martin Baxter, Chief Policy Adviser at sustainability professionals body IEMA and the UK's appointed expert to the ISO's environmental management systems committee, said: “[The growing popularity of the standard] shows that environmental management systems remain a key business performance tool for improving performance.”

He also said: "This is particularly important as companies transition to the new standard, which raises the bar on the expectations it sets for how organisations manage their environmental performance, and will lead to a positive outcome for businesses around the world."