GRI (2024 Update) questions and answers

The Universal Standards are effective for reports published on or after 1 January 2023 4 Key Concepts - impact - material topics - due diligence - stakeholder Impact Effect the organization has or could have on the economy, environment, and people, including human rights, which in turn can indicate its contribution (positive or negative) to sustainable development Users of GRI - any organization - stakeholders - information users - investors System of GRI Standards - 3 Universal Standards (Foundation, General Disclosures, Material Topics) - Sector Standards - Topic Standards Impacts are grouped into _______________ topics 9 requirements for reporting in accordance with the GRI Standards (found in GRI 1) 1. Apply the reporting principles 2. Report the disclosures in GRI 2 3. Determine material topics 4. Report the disclosures in GRI 3 5. Report disclosures from the GRI topic standards for each material topic 6. Provide reasons for omissions for disclosures and requirements the organization can't comply with 7. Publish a GRI content index 8. Provide statement of use 9. Notify GRI Reporting Principles - Accuracy - Balance - Clarity - Comparability - Completeness - Sustainability context - Timeliness - Verifiability Reasons for omission - Not Applicable - Legal prohibitions - Confidentiality constraints - Information unavailable or incomplete Reasons for omission are NOT permitted for... - 2-1: Organizational details - 2-2: Entities included in the organization's sustainability reporting - 2-3: Reporting period, frequency, and contact point - 2-4: Restatements of information - 2-5: External assurance - 3-1: Process to determine material topics - 3-2: List of material topics Ways to enhance credibility of sustainability reporting (not required) - internal controls - external assurance - stakeholder or expert panels due diligence Process of identifying, preventing, and mitigating negative impacts Severity of a negative impact is determined by - scale (how bad) - scope (how widespread) - irremediability Risk severity + likelihood Significance of a positive impact is determined by - scale (how good) - scope (how widespread) - likelihood 4 steps for determining material topics 1. Understand the organization's context 2. Identify actual and potential impacts 3. Assess the significance of the impacts 4. Prioritize the most significant impacts for reporting An organization causes a negative impact when its activities on their own result in the impacts An organization contributes to a negative impact when its activities lead, facilitate, or incentivize another entity to cause the impact An organization is directly linked to an impact when impacts occur within the supply chain Significance of negative impact is determined by severity and likelihood What is the sole criterion for determining if a topic is material for reporting? Significance Suggested reporting process 1) Identify and assess impacts and determine material topics - understand organization's context - identify actual and potential impacts - assess the significance of the impacts - prioritize the most significant impacts for reporting (material topics) 2) Report information with relevant disclosures from - Universal Standards - Sector Standards - Topic Standards