Transition to GRI Sustainability Reporting Standards · Transition to GRI Sustainability Reporting Standards ... SRS 101: Foundation 48 – ... • Employee/worker project page

Transition to GRI Sustainability

Reporting Standards

Background document for public comment period

Version 2, updated on 3 June 2016

Contents

Section Pages

1. Introduction to the Transition to GRI Standards 3 – 13

2. How can the GRI Standards be used? 14 – 23

3. Overview of main changes 24 – 46

4. More detail on each GRI Standard: 47 – 74

SRS 101: Foundation 48 – 53

SRS 201: General disclosures 54 – 61

SRS 301: Management approach 62 – 66

Topic-specific Standards 67 – 74

Annex. Content clarifications 75 – 89

2

Overarching changes

• Structure of each standard/ naming ( Or in

structure?) – JAN

• Requirements, recommendations, guidance – JAN

• Content clarifications (Chelsea)

• Updated content (E/W and scope 2) – CHELSEA

• Content relocated - LAURA

1. Introduction to the Transition to

GRI Standards

This section includes:

• Summary of the Transition to GRI Standards

• What does transitioning to standards mean?

• What are the main changes or improvements compared to G4?

• What does this mean for reporters?

• What are the benefits?

• What is the timeline?

• How can you get involved?

• Download the draft GRI Standards

• More information Go back to ‘Contents’ page

3

Introduction to the Transition to

GRI Standards

• The G4 Guidelines are currently the most widely-adopted sustainability reporting

guidelines in the world, used by thousands of organizations in more than 90 countries

• Transitioning from the current Guidelines format to a new set of modular GRI

Standards is the next step in the evolution of G4

• The GRI Standards are developed by the Global Sustainability Standards Board (GSSB),

which is GRI’s independent standard-setting body, in line with its Due Process

Protocol

• This move will enable the GRI Standards to stay even more up-to-date with the

latest sustainability developments and to incorporate new sustainability topics in the

future

• This move will also enable the GRI Standards to be even more widely-referenced

by policy initiatives around the world

Summary

4

What does transitioning to standards mean?

• The content from the G4 Guidelines and the G4 Implementation Manual is

being restructured to form a set of modular, interrelated reporting

standards

• Most changes focus on the format and presentation – the main content,

concepts, and disclosures from G4 will carry through to the GRI Standards

G4 Guidelines and

G4 Implementation ManualSet of modular GRI Standards

5

What are the main changes or

improvements compared to G4?

1. The GRI Standards are organized in a modular structure. There are three

‘universal’ Standards applicable to all organizations preparing a report in accordance

with the GRI Standards, and 33 topic-specific Standards (based on the G4 Aspects)

to choose from, depending on the organization’s list of material topics

2. The GRI Standards feature clearer distinctions between requirements (indicated

in the text by the word ‘shall’), recommendations (indicated by ‘should’) and

guidance (indicated by ‘can’)

3. Content from G4 has been edited for greater clarity and simpler language,

making the Standards more user-friendly

4. Some content from G4 has been relocated or merged, to make content easier to

find and navigate

5. The GRI Standards provide clarifications for elements of G4 that were commonly

misunderstood, such as how to define the topic Boundary or how to report on

topics not covered by the GRI Standards

6

What does this mean for reporters?

• For organizations already

reporting in accordance with

G4 (core or comprehensive),

impacts should be relatively

minor

• For those not using the G4

Implementation Manual, there

will be new content to consider

– Most will be recommendations or

guidance only

7

• The Reporting

Principles and the

emphasis on reporting only

material topics remains

• Emphasis on the

management approach

(DMA) has been carried

through, with additional

guidance

• Most disclosures remain

the same (a few have

been relocated/ merged)

What are the benefits?

• further enhance the credibility and uptake of sustainability reporting around the

world

• make the GRI Standards even more suitable for referencing in policy and

regulation, increasing the uptake of credible sustainability reporting

• mean that individual Standards can be updated separately, ensuring they remain

consistent with authoritative intergovernmental instruments and developments in

specific content areas; and will make it easier to accommodate new sustainability

topics in the future

• make the Standards more accessible for new and existing reporters, thanks to

simpler language and a more logical, navigable structure

• enable more consistent and higher-quality sustainability reporting, by distinguishing

clearly between reporting requirements, recommendations, and guidance

Moving from the G4 Guidelines to modular GRI Standards will:

8

• Public exposure on the draft Standards: 19 April – 17 July 2016

– First set of six Standards: available from 19 April – 17 July

– Second set of all remaining 30 topic-specific Standards: available from 3 June – 17 July

• Anticipated approval of the final Standards: 30 August – 1 Sept 2016

• Expected release of the final Standards: October 2016

• Proposed effective date of the Standards: 1 January 2018

• Proposed transition period: the G4 Guidelines will remain valid for

reports published until 31 December 2017

Key dates

(this timeline is subject to change) 9

What is the timeline?

How can you get involved?

• Public comment period: 19 April – 17 July 2016

– Give feedback on the draft Standards through GRI’s online consultation

platform. Access the draft Standards and the consultation platform here

• Join a live webinar: 15 June 2016 (at 9am and 4pm CEST)

– Sign up here

• Workshops in selected markets around the world: June – July 2016

– Events in Brazil, Canada, Germany, Italy, The Netherlands, Spain, United

Kingdom and United States, among others. Find out more and register for

these events here

Stakeholders are encouraged to give feedback on the proposed new

format and structure of the GRI Standards

10

https://www.globalreporting.org/standards/transition-to-standards/Pages/default.aspx

https://www.globalreporting.org/standards/Pages/Public-Consultation-Events.aspx


Download the draft Standards

• The draft Standards can be downloaded

from the GRI website

• Each draft Standard has an ‘Explanatory

memorandum’, which summarizes the

significant proposals within each draft

and the GSSB’s involvement in its

development

• Significant changes are also indicated in

comment boxes throughout the draft

documents

About the draft Standards

11


Download the draft Standards

Significant changes are indicated in comment boxes in the draft documents

12

Example from SRS 101: Foundation, page 24

For more information on the Transition

to GRI Standards and the GSSB

• GRI website

• Global Sustainability Standards Board (GSSB) pages

• Due Process Protocol

• Transition to Standards page

• Employee/worker project page

• GRI Consultation Platform

• Live webinars and in person workshops

• Sign up to GRI’s newsletter to follow the transition!

Relevant links

13

https://www.globalreporting.org/Pages/default.aspx

https://www.globalreporting.org/information/about-gri/governance-bodies/Global-Sustainability-Standard-Board/Pages/default.aspx

https://www.globalreporting.org/resourcelibrary/Due-Process-Protocol-2015.pdf


https://www.globalreporting.org/standards/Pages/Employee-WorkerTerminology.aspx

http://consultation.globalreporting.org/


https://www.globalreporting.org/_layouts/registration/signup.aspx?n=y

2. How can the GRI Standards be used?

This section has information on:

• Options for using and referencing the GRI

Standards:

─ ‘in accordance’ (core and comprehensive)

─ ‘SRS-referenced’

• What has changed for preparing an ‘in

accordance’ sustainability report?

• What is the ‘SRS-referenced’ option, and how

can it be used?

14

Go back to ‘Contents’ page

• The GRI Standards are designed to be used as a set for preparing

a sustainability report. There are two options for preparing a

report in accordance with the GRI Standards:

─ ‘in accordance’: core option

─ ‘in accordance’: comprehensive option

• Organizations can also use individual GRI Standards or their

content to report sustainability information (this is called an ‘SRS-

referenced’ claim)

There are three options for using and referencing the Standards

How can the GRI Standards be used?

15

SRS 101:

Foundation

includes a

consolidated table

with all criteria

for both ‘in

accordance’

options

See SRS 101:

Foundation, Section 3,

Table 2 (line 725-

734)


Preparing an ‘in accordance’ report

* Reasons for omission can apply

16

• The requirements remain largely the same for both the core and

comprehensive options, with minor adjustments due to the new structure

• Some additional requirements have been included and others

removed due to:

– the new structure of the GRI Standards (e.g., relocated content)

– content clarifications (e.g., reporting on topics not covered by the GRI Standards)

– a revision of the terminology for ‘employee’ and ‘worker’

• The use of reasons for omission remains the same, but with greater

clarity on how and when to use them

What has changed for preparing an ‘in accordance’ report?



17

Overarching changes

• Apply the ten Reporting Principles (e.g., Materiality, Balance) (See SRS 101: Foundation,

clause 2.1 (lines 495-508); change related to clarifying what is required)

• In addition to reporting the required disclosures, comply with all the applicable

reporting requirements for each disclosure (such as requirements for how to compile

the information) (See SRS 101: Foundation, clauses 3.1.1 (lines 709-710), 3.2.1 (lines 715-716);

change related to clarifying what is required)*

• For material topics not covered by the GRI Standards, report the management

approach (SRS 301), and, if possible, disclosures on the topic (See SRS 101: Foundation, clause

2.6 (lines 595-608); change related to clarifying reporting on topics not covered by the GRI Standards)*

• Determine the appropriate level of aggregation for presenting information, using the

Principles for defining report quality (See SRS 101: Foundation, clause 2.7 (lines 610-611); change

related to clarifying what is required)

What are the additional requirements for an ‘in accordance’ report?



18

*Reasons for omission can apply

Changes to specific disclosures

• Describe the reporting organization’s activities (See SRS 201: General disclosures, Disclosure 201-2-a;

change related to the revision of employee/worker terminology)

• Identify the organization’s products and services that are relevant for the sustainability topics

covered in the report, including those that are banned in certain markets or are the subject of

stakeholder questions or public debate (See SRS 201: General disclosures, Disclosure 201-2-c; change

related to moving Indicator G4-PR6 into General disclosures)

• Describe the main elements of the supply chain as they relate to the organization’s activities,

primary brands, products, and services (See SRS 201: General disclosures, Disclosure 201-9; change

related to clarifying expectations for reporting on supply chain)

• For each material topic, report the purpose of the management approach, and describe each of

the components used to manage the topic (e.g., policies, specific actions) (See SRS 301:

Management approach, Disclosures 301-2-b and 301-2-c; changes related to clarifying what is required)*

What are the additional requirements for an ‘in accordance’ report?



19

*Reasons for omission can apply

• Reporting the available GRI Sector Disclosures (these are now for guidance

only)

• Most of the requirements in disclosures G4-1 and G4-2 have been made

reporting recommendations

• Reporting the ‘total workforce by employees and supervised workers and by

gender’ (former G4-10-c)

• Reporting the ‘total workforce by region and gender’ (former G4-10-d)

• Using a specified table format for presenting the Content Index (former G4-

32-b) (it is still required to include a Context Index, but organizations can use

the presentation format they wish)

What is no longer required for preparing an ‘in accordance’ report?



20

• This option is for published materials that use individual GRI Standards or

their content for reporting sustainability information, but do not meet the ‘in

accordance’ criteria

• Such materials are to include a claim (statement of use) indicating:

– the GRI Standard or Standards used

– the specific content used, if a Standard has not been used in full

• For each disclosure, organizations are to comply with all the reporting

requirements for that disclosure (e.g., all requirements for how to compile the

information)

‘SRS-referenced’ – How to use this option?

How can the GRI Standards be used?‘SRS-referenced’ – using individual Standards or their content

21

How can the GRI Standards be used?‘SRS-referenced’ – using individual Standards or their content

SRS 101:

Foundation

includes an

overview of

requirements and

recommendations

for making ‘SRS-

referenced’ claims

See SRS 101:

Foundation, Section 3

(lines 735-759)

22

SRS-referenced claims

• The 10 GRI Sector Disclosures will not

be required to prepare a report in

accordance with the GRI Standards

• The Sector Disclosures are

encouraged to be used as guidance

for identifying the material topics, and for

reporting additional topic-specific

disclosures, as needed (see SRS 101:

Foundation, Guidance 2.3, lines 529-531)

23

GRI Sector DisclosuresHow to use them together with the GRI Standards?

Overarching changes


structure?) – JAN





3. Overview of main changes

This section includes:

• Changes in structure

• Clarifications of key concepts

• Merged, relocated or discontinued content

• Simplified terminology

• Updated content:

─ ‘Employee’/ ‘worker’ terminology

─ Scope 2 GHG emissions

24


25

Overview of changes – StructureNew structure based on modular standards

• 3 ‘universal’

Standards applicable

to all

• 33 topic-specific

Standards, based on

the G4 Aspects

• Organizations will

select only the topic-

specific Standards

that are applicable,

based on material

topics Individual standards for each G4 Aspect, organized into 3

series (Economic, Environmental, and Social)

• SRS 101: Foundation – this includes the ten

Reporting Principles, the ‘in accordance’ options,

and the General Reporting Notes from G4

• SRS 201: General Disclosures – this

includes the General Standard Disclosures from

G4

• SRS 301: Management approach – this

includes the Disclosures on Management Approach

(DMA) and grievance mechanisms content from

G4 (to be used with each material topic)

Applicable to all organizations preparing

an ‘in accordance’ report

Overview of changes – Structure3 ‘universal’ Standards

There are currently 33 topic-specific Standards,

with more to be added in the future, organized

in three series:

• Economic topics (400 series) – this includes

the G4 Aspects from the Economic Category, plus

Anti-corruption and Anti-competitive behaviour

• Environmental topics (500 Series) – this

includes most G4 Aspects from the Environmental

Category

• Social (600 Series) – this includes most G4

Aspects from the Social Category. The sub-

categorization for Social (i.e., Labor Practices and

Decent Work, Human Rights, Society, Product

Responsibility) has been removed

For reporting on material topics

Overview of changes – StructureTopic-specific Standards

Overview of changes – Structure New numbering system for disclosures

• The G4 disclosures (including Indicators) will have a new set of unique

numbers to identify them, based on the number of the Standard

For example:

– Disclosure G4-10 becomes 201-8 (now located in SRS 201: General disclosures)

– Indicator G4-EN15 becomes 505-1 (now located in SRS 505: Emissions)

• Having a unique number for each disclosure means that disclosures can be

referenced easily in taxonomies, publications, and products and services

28

GRI will publish a detailed mapping document outlining any changes by Aspect

and disclosure, to help reporters easily transition

Simplified numbering system, based on the number of the Standard

Overview of changes – StructureThe content of each Standard

• The content in the Standards is presented in a different way than in the G4 Guidelines

• This is the result of re-organizing the G4 content into multiple, modular Standards, and

improvements in the consistency and clarity of the text

• Each Standard contains the following sections*:

Section Description

1. Introduction (NEW)Contains all information needed to use the Standard, as well as background

information.

A. Overview of the GRI Sustainability Reporting

Standards (NEW) Shows how the particular Standard fits in the broader set of GRI Standards.

B. Responsibility for this Standard (NEW) Statement on the governance body responsible for setting the Standard.

C. Scope (NEW) Describes the remit of the Standard.

D. Normative references (NEW) Gives a list of documents to be used together with the Standard.

E. Using this Standard (NEW) Gives instructions on how the Standard is to be used.

F. Effective date (NEW) States the date at which the Standard becomes effective.

G. Background context (based on G4 content) Describes the subject matter (only for topic-specific Standards).

2. Standard (based on G4 content) Contains reporting requirements, recommendations, and guidance.

3. References (based on G4 content) Gives a list of references related to the topic and the disclosures.

* SRS 101: Foundation has a unique structure for its Introduction section, and also includes a section of key terms at the back 29

Overview of changes – StructureRequirements, recommendations and guidance

30

• Requirements: denoted using

‘shall’ – these are mandatory

instructions

• Recommendations: denoted

using ‘should’ – not mandatory

but advised

• Guidance: denoted using ‘can’

and by a shaded background.

Not mandatory but it helps

reporters understand and apply

the requirements

3 ‘categories’ of content:

1. Clarifying the ‘in accordance’ options

2. Understanding the use of the term ‘impacts’

3. How to link material topics back to GRI topics

4. Reporting on other material topics (beyond those

covered by the GRI Standards)

5. Clarifying the use of GRI Sector Disclosures

6. Understanding and applying the concept of ‘topic

boundary’

7. How to report on topics if the boundary is outside the

organization

Overview of clarifications

31

Overview of changes – ClarificationsKey concepts have been clarified

These can be

found in SRS 101:

Foundation

These can also be

found in SRS 301:

Management

approach

For more information, see the ‘Annex’

The reporting expectations have been clarified for

the following disclosures:

8. Disclosures G4-1 and G4-2 on strategy and analysis

9. Disclosure G4-12 on supply chain

10. Disclosure G4-18 on defining report content

11. Disclosure G4-32 on Content Index

12. Disclosure G4-33 on external assurance

13. Clarifying topic descriptions (e.g., what the

topic is about and covers)

Overview of clarifications (cont.)

32

Overview of changes – ClarificationsKey concepts have been clarified

These can be found

in SRS 201: General

disclosures

These can be found in

each topic-specific

Standard (series 400,

500, 600)

For more information, see the ‘Annex’

Overview of changes – Merged,

relocated or discontinued content

• The transition to Standards has provided an opportunity to

merge or relocate some Aspects and disclosures, to either

reduce duplication or to ensure a more logical placement of the

content

• In exceptional cases, a few G4 Aspects have been discontinued,

to either reduce duplication or because their content has been

repurposed elsewhere (e.g., as management approach)

Merged, relocated or discontinued content

33

GRI will publish a detailed mapping document outlining any changes by Aspect

and disclosure, to help reporters easily transition

Merged Aspects – to reduce duplication

Overview of changes – Merged Aspects

34

*Indicators G4-PR5 and G4-PR6 have not been transitioned to SRS 617; they will be moved to SRS 201: General disclosures

G4 Aspects Location in GRI Standards

Diversity and Equal Opportunity

Equal Remuneration for Women and MenSRS 605: Diversity and equal opportunity

Investment (Human Rights)

Assessment (Human Rights)SRS 612: Human rights assessment

Supplier Assessment for Labor Practices

Supplier Human Rights Assessment

Supplier Assessment for Impacts on Society

SRS 614: Supplier social assessment

Product and Service Labeling

Marketing CommunicationsSRS 617: Marketing and labeling*

Compliance (Society)

Compliance (Product Responsibility)SRS 619: Socioeconomic compliance

Merged disclosures – to reduce duplication

Overview of changes – Merged disclosures

35

G4 disclosures Location in GRI Standards

G4-4 on primary brands, products, and services

G4-PR6 on the sale of banned or disputed products

SRS 201: General disclosures,

now Disclosure 201-2

G4-DMA-a on why the topic is material

G4-20 on Boundary within the organization

G4-21 on Boundary outside the organization

SRS 301: Management approach,


G4-57 on mechanisms for advice about ethics

G4-58 on mechanisms for concerns about ethics



Relocated Aspects – for a more logical placement

Overview of changes – Relocated Aspects

36


Anti-corruption

(Society sub-Category, Social Category)

SRS 405: Anti-corruption

(Economic series)

Anti-competitive Behavior

(Society sub-Category, Social Category)

SRS 406:Anti-competitive behavior

(Economic series)

G4 disclosures Location in GRI Standards

G4-11 on collective bargaining

(Organizational Profile, General disclosures)

Moved to the Governance section of



G4-EN28 on products sold and their packaging

materials that are reclaimed

(Products and Services Aspect)

Moved to SRS 501: Materials,


Relocated disclosures – for a more logical placement

Overview of changes – Relocated

disclosures

37


Products and Services

(Environmental)

The Products and Services Aspect and its Indicator G4-EN27

have been discontinued, due to duplication and because the

content is not substantial enough to merit an individual

Standard. Indicator G4-EN28 has been relocated to SRS 501:

Materials. The environmental impacts of products and services

are already covered in the following topic-specific Standards:

SRS 501: Materials, SRS 502: Energy, and SRS 505: Emissions.

Transport (Environmental) The Transport Aspect and its Indicator G4-EN30 have been

discontinued, due to duplication and because the content is

not substantial enough to merit an individual Standard. The

environmental impacts of transport are already covered in the

following topic-specific Standards: SRS 502: Energy and SRS

505: Emissions.

Discontinued Aspects

Overview of changes – Discontinued

Aspects

38


Overall (Environmental) The Overall Aspect and its Indicator G4-EN31

have been discontinued and its content has been

re-purposed as management approach guidance

in the following Standards: SRS 301: Management

approach, SRS 505: Emissions, SRS 506: Effluents

and waste, and SRS 507: Environmental compliance.

Grievance mechanisms:

• Environmental Grievance Mechanisms

• Labor Practices Grievance Mechanisms

• Human Rights Grievance Mechanisms

• Grievance Mechanisms for Impacts on Society

These four Aspects and their Indicators have

been discontinued since the content sits more

logically in the management approach. The

content of these four G4 Aspects has been

merged and moved to SRS 301: Management

approach as guidance (see clause 1.8, lines 231-

241).

Discontinued Aspects (cont.)

Overview of changes – Discontinued

Aspects

39

Overview of changes – Simplification of

terminology

These terms from G4 have been simplified or revised, to make the

text of the Standards more readable and consistent:

• ‘Aspect’ topic

• ‘General Standard Disclosures’ general disclosures

• ‘Specific Standard Disclosures’ not used

• ‘Indicator’ disclosure

• ‘DMA’ management approach

• ‘organization’ reporting organization

40

Overview of changes – Updated content‘Employee’/ ‘worker’ terminology

41

• Objective: to align the GRI Standards with international norms or standards

and to improve consistency in how ‘employee’, ‘worker’, and related terms are

used

• Process: an ad-hoc Technical Committee was formed which has reviewed the

terminology and made recommendations to the GSSB (GRI’s independent

standard-setting body). More information on the Technical Committee and an

overview of the suggestions made by the Technical Committee to the GSSB

can be found on the project website

• Integration in GRI Standards: the set of GRI Standards includes the

proposed changes to the terminology, identified with comment boxes

indicating ‘Type of change: employee/worker review’

Separate revision project in parallel to the Transition



42

• ‘Employee’/’worker’ related terminology and

definitions have been clarified in order to:

– ensure alignment of use of terms, and the

context in which they are used, with key

references

– ensure consistent use of terminology

throughout the Standards

– avoid unclear overlaps of terms

• For disclosures that concern ‘workers’, it is

specified in some cases whether a specific

subset of workers is to be used

‘Employee’/ ‘worker’ terminology review


43

Overview of key clarified terminology and definitions

Term used in G4 Term used in the GRI Standards

employeeemployee (slightly clarified definition)see the GRI Standards Glossary (Part 2), lines 117-119

workerworker (clarified definition)see the GRI Standards Glossary (Part 2), lines 492-499

young workeryoung worker (clarified guidance – does not affect

quantitative reporting requirements)see SRS 608: Child labor, lines 152-156

security personnelsecurity personnel (clarified definition)see the GRI Standards Glossary (Part 2), lines 386-390

supervised worker, total workforce,

independent contractor working on-

site, staff, individuals employed

Not used.*

* In the GRI Standards, these terms have been replaced with other appropriate terms or wording. For an

overview of changes and rationales, please see the project website



44

worker

person that performs work

NOTE 1: The term ‘worker’ includes, but is not limited to, employees.

NOTE 2: Further examples of workers include interns, apprentices,

self-employed persons, and persons working for

organizations other than the reporting organization, e.g., for

suppliers.

NOTE 3: In the context of GRI Standards, it is specified in some cases

whether a specific subset of workers is to be used.

Clarified definition for the term ‘worker’

See the GRI Standards

Glossary (Part 2), lines

492-499


45

In some cases, a subset of workers is specified for reporting

The ‘subsets’ of workers below replace former terms, such as ‘workforce’, which were

considered unclear; and clarify which workers should be reported on in different contexts

(e.g., occupational health and safety, wages).

Subsets of workersKey disclosures and definitions where they

are used in the GRI Standards

workers performing work that is

controlled by the reporting

organization or that is being

performed in workplaces that the

organization controls

SRS 603: Occupational health and safety,

Disclosures 603-1, 603-2 and 603-3

workers performing the reporting

organization’s activities

• SRS 201: General disclosures, Disclosure 201-8

• SRS 402: Market presence, Disclosure 402-1

• GRI Standards Glossary (Part 2), definition of

‘significant operational change’

Update of Scope 2 GHG emissions in SRS 505: Emissions

• Disclosure 505-2 has been updated to align with changes to the GHG Protocol

Scope 2 Guidance, published in January 2015 by WRI and WBCSD

• This now requires reporting two distinct Scope 2 values: a location-based

and a market-based value, calculated with different emissions factors

according to how the energy was obtained

See SRS 505: Emissions, clause 2.5 (lines 250-289)

Overview of changes – Updated contentScope 2 GHG emissions

46

Overarching changes


structure?) – JAN





4. More detail on each GRI Standard

This section includes more detail on:

• SRS 101: Foundation

• SRS 201: General disclosures

• SRS 301: Management approach

• Topic-specific Standards

47


48

More detail on what’s new or improved

SRS 101: Foundation


• The Foundation Standard is designed as the

starting point for using the set of GRI

Standards

• It brings together the ‘in accordance’ criteria

and the Reporting Principles for defining

report quality and content from G4

• It gives further information on how to use

the GRI Standards for sustainability reporting

SRS 101: FoundationKey points

SRS 101: FoundationStructure

• Introduction – This is a new section giving background context on sustainability reporting

and explanations of how to use the set of GRI Standards. It also gives required standard-

setting information, such as on the scope of the standard, normative references, and the

effective date

• Section 1: Reporting Principles – this is existing content from G4 which includes the ten

Reporting Principles and their associated guidance. There have been no substantive changes

to this content. However, it has been clarified that organizations preparing an ‘in accordance’

report are expected to include all material topics in the report, even if the topic is not

covered by a topic-specific GRI Standard

• Section 2: Using the GRI Standards for Sustainability Reporting – this is a new

section with selected content incorporated from G4. It sets out the basic process for using

the GRI Standards for sustainability reporting. It is necessary to follow all the requirements

(prompted by the use of ‘shall’) in this section if an organization wants to claim that a report

has been prepared in accordance with the GRI Standards

SRS 101 includes the following sections:

50

SRS 101: FoundationStructure (continued)

• Section 3: Making claims related to the use of the GRI Standards – this is a revised

section based on the G4 content for the ‘in accordance’ options. The ‘in accordance’

options are now set out in terms of the specific claims that organizations can make, based on

how they have applied the GRI Standards:

– For organizations using the GRI Standards to prepare a sustainability report, the ‘in accordance’ core and

comprehensive options have been carried through from G4, although with slight changes to accommodate

the new structure of the Standards. See SRS 101, Section 3, clauses 3.1-3.2 (lines 707-734)

– For organizations that use individual GRI Standards or their content to report specific sustainability

information, but do not meet the ‘in accordance’ criteria, an ‘SRS-referenced’ claim is to be included in any

published material that references the GRI Standards. This is based on the content from G4 concerning

reports that do not meet the ‘in accordance’ criteria, but includes some revisions for greater clarity.

See Section 3, clause 3.3 (lines 736-759)

• Key terms – this is a revised section based on the G4 definitions of key terms. It includes

definitions of terms that are especially relevant for understanding SRS 101, such ‘impact’,

‘material topic’ or ‘topic Boundary’

51

• A number of key concepts from G4 have been clarified in SRS 101. These

include:

– Clarifying the ‘in accordance’ options

– Understanding the use of the term ‘impacts’

– How to link material topics back to GRI topics

– Reporting on other material topics (beyond those covered by the GRI Standards)

– Clarifying the use of GRI Sector Disclosures

– Understanding and applying the concept of ‘topic boundary’

– How to report on topics if the boundary is outside the organization

• These clarifications should make it easier for organizations to report consistently

and comprehensively in line with the GRI Standards

• More detailed explanations on these clarifications can be found in the Annex

Clarifications of key concepts from G4

SRS 101: FoundationWhat’s new or improved?

52

SRS 101: FoundationWhat’s new or improved?

• The options for preparing an ‘in accordance’ report have been clarified in SRS 101:

Foundation

• These options are now positioned in terms of the specific claims that organizations can

make about their use of the GRI Standards:

– Organizations can use the set of GRI Standards to prepare a sustainability report in

accordance with the GRI Standards (core or comprehensive option), or

– They can use individual GRI Standards or their content to report specific

sustainability information. This way of using the GRI Standards results in an ‘SRS-referenced’

claim

• Organizations are now explicitly required to include a claim (statement) in any ‘in

accordance’ report or published material that uses the GRI Standards or their content

• See pages 14-23 for more detail on what has changed compared to G4 in these sections.

See also SRS 101: Foundation, Section 3 (lines 674-766)

‘In accordance’ and ‘SRS-referenced’ options

53

Overarching changes


structure?) – JAN





54


SRS 201: General disclosures


SRS 201: General disclosuresKey points

• The General Standard Disclosures from

G4 have been brought together into a

single standard – SRS 201: General

disclosures

• General disclosures elicit contextual

information about the reporting

organization and its sustainability

reporting practices

55

SRS 201: General disclosuresStructure

In addition to the Introduction and References, there are six main sections:

1. Organizational profile

2. Strategy (formerly ‘Strategy and analysis’ in G4)

3. Ethics and integrity

4. Governance

5. Stakeholder engagement

6. Reporting practice (this combines the sections ‘Report Profile’ and ‘Identified material

Aspects and Boundaries’ from G4)

SRS 201 includes the following sections:

56

SRS 201: General disclosuresWhat’s new or improved?

1. Strategy and Analysis section: the ‘Strategy and Analysis’ section from G4 has

been revised and retitled ‘Strategy,’ to better reflect the content. See SRS 201: General

disclosures, Section 2 (lines 202-268)

– The Strategy Disclosures (201-14 and 201-15, formerly G4-1 and G4-2) have been revised

and the majority of required disclosures have become recommendations only. This makes

the disclosures less prescriptive and more consistent with other disclosures in the GRI

Standards

– The requirement for ‘two concise narrative sections’, and the distinction between each

narrative, has been removed from Disclosure 201-15 (formerly G4-2)

2. Guidance on defining report content: the guidance for Disclosure 201-46

(formerly G4-18) has been revised and shortened. The additional guidance for

defining report content will be incorporated into a forthcoming ‘how-to’ guide, which

will be made available as a non-mandatory resource. See SRS 201: General disclosures,

clause 6.3 (lines 559-586)

Some content and disclosures have been relocated or revised:

57


3. Reporting on the supply chain: the reporting requirements for Disclosure 201-9

(formerly G4-12) have been expanded to be more specific on the reporting

expectations. See SRS 201: General disclosures, clause 1.11 (lines 151-159)

4. Reporting the primary brands, products and services: Disclosure 201-2

(formerly G4-4) now includes two new elements:

Some content and disclosures have been relocated or revised

– Disclosure 201-2-a requires a description of the

organization’s activities

– Disclosure 201-2-c requires the identification of

products and services that are relevant to the

sustainability topics covered in the report, including:

• products and services banned in certain markets,

and why they are banned; and

• products and services that are the subject of

stakeholder questions or public debate, and why.

This has been added to align with revisions to

Disclosure 201-8 (formerly G4-10) from the

review of ‘employee’/‘worker’ terminology

This content was originally part of Indicator G4-

PR6; it has been merged with this disclosure as

this placement is more logical

58

See SRS 201: General disclosures, clause

1.2 (lines 92-94)


5. ‘Employee’/’worker’ terminology: Disclosure 201-8 (formerly G4-10) has been

revised due to input from the ‘Employee’/ ‘worker’ terminology review:

– Minor wording and terminology clarifications have been made to requirements ‘a’ and ‘b’

(related to reporting on employees)

– Requirements ‘c’ and ‘d’ (reporting on the workforce) have been removed

– Requirement ‘e’ has been revised and now requires reporting: ‘Whether a significant portion of

the reporting organization’s activities are performed by workers who are not employees. If

applicable, a description of the nature and scale of work performed by workers who are not

employees’

See SRS 201: General disclosures, clause 1.9 (line 133)

6. Ethics disclosures: former disclosures G4-57 and G4-58 have been merged into one

disclosure (now 201-17) on mechanisms for advice and concerns about ethics. See SRS

201: General disclosures, clause 3.3 (lines 295-314)

59




7. Disclosures separated out for G4-32: the former disclosure G4-32 has

been separated into three disclosures to improve logic and clarity. See SRS 201:

General disclosures, clauses 6.11-6.15 (lines 638-747)

– G4-32-a is now 201-54 and relates to ‘in accordance’ claims

– G4-32-b is now 201-55 and relates to the content index

– G4-32-c has been merged with G4-33 on external assurance, and renumbered 201-56

8. Disclosures on reporting the topic Boundary: Disclosures G4-20 and

G4-21 from the G4 General Standard Disclosures have been moved into SRS

301: Management approach. See SRS 301: Management approach, Disclosure 301-1


60


9. Content Index: the requirements for including a content index in the

report have been revised

– Requirements are now less prescriptive about the format – an example table is

provided (as guidance only) but this table does not need to be used in the report

– It is still required to include a content index for all reports prepared in

accordance with the GRI Standards

See SRS 201: General disclosures, clauses 6.12-6-14 (lines 653-700)

10. Reporting on customer satisfaction: former Indicator G4-PR5 on customer

satisfaction (previously found under the G4 Aspect ‘Product and Service Labelling’)

will be moved, as guidance only, to the Stakeholder engagement section of SRS 201.

(Please note: this change has not yet been implemented in the exposure drafts.)


61

Overarching changes


structure?) – JAN





62


SRS 301: Management approach


• The Disclosures on Management Approach (DMA)

from G4 are now presented in a separate GRI

Standard – SRS 301: Management approach

• The Management approach Standard is designed to

be applied to the reporting of each material

topic, including those topics that are not covered

by the GRI Standards

• The Standard requires organizations to provide a

narrative description of how they manage a

material topic and related impacts. The management

approach complements the topic-specific

disclosures


Key points

63

• The topic Boundary disclosures have been incorporated into this Standard and aligned with the

revised definition of topic Boundary. For each material topic, organizations describe why the topic is

material and the topic boundary (Disclosure 301-1-b-c)

• Content on grievance mechanisms from G4 Aspects has been incorporated into this Standard.

The only requirement is for organizations to describe any grievance mechanisms that are used for

managing a material topic (Disclosure 301-2-c-vi)

• Now more detail is required on how the organization manages each material topic, including:

– the purpose of the management approach (Disclosure 301-2-b)

– a description of certain components (e.g., policies, specific actions), only if used for managing a material topic

(Disclosure 301-2-c)

• SRS 301 contains additional reporting recommendations and guidance on policies and resources,

taken from the Overall and Investment Aspects in G4 (lines 158-159 and 187-191)

Key changes compared to G4


What’s new or improved?

64

SRS 301:

Management

approach

1. Explanation of the material topic and its

Boundaries

Previously G4-DMA-a and G4-20 and G4-21 on topic Boundaries

2. The management approach and its

components Previously G4-DMA-b, but with additional level of detail on the

purpose and components of the management approach,

including the use of grievance mechanisms

3. Evaluation of the management approach Previously G4-DMA-c

4. General requirements• How to combine information for a group of topics

• What to report when there is no management approach


Structure

65

• More logical placing of content (by bringing disclosures on topic Boundary

and grievance mechanisms into the management approach)

• Clearer requirements for reporting the topic Boundary, based on the

revised and clarified description of topic Boundary. A more detailed

explanation of this clarification can be found on page 81

• More detail is now required, encouraging greater transparency on

management approach, but the requirements are flexible and adaptable to

different kinds of management approach

• It includes recommended disclosures for those organizations wanting to

report more extensively on their management approach

Key benefits


What are the benefits for reporters?

66


Topic-specific Standards

67Go back to ‘Contents’ page

Topic-specific StandardsKey points

• Each G4 Aspect is now presented in a separate topic-specific Standard

• Each topic-specific Standard contains reporting requirements,

recommendations, and guidance for reporting on that specific topic

• The topic-specific Standards are categorized into three series, and numbered

accordingly: Economic topics (400 series), Environmental topics (500 series), and

Social topics (600 series)

• Organizations select topic-specific Standards based on their list of material

topics

• The topic-specific Standards are designed to be used together with SRS 301:

Management approach, so that organizations report both the management

approach and topic-specific disclosures for each material topic

68

Topic-specific StandardsMain changes compared to G4

Structural changes

• The G4 Aspects – such as Emissions and Indirect Economic Impacts – have become

individual topic-specific Standards. They are categorized into three series: Economic

(400), Environmental (500) and Social (600)

• The sub-Category distinctions from G4 (Labor Practices and Decent Work, Human

Rights, Society, and Product Responsibility) no longer exist, and these topics are all

included in the Social series (600)

• Some G4 Aspects and disclosures have been merged into single Standards or

disclosures to reduce the duplication of content (see pages 34-35), and others have

been moved to another location (e.g., from Social to Economic) to better reflect their

content (see pages 36-37)

• In exceptional cases, a few Aspects have been discontinued and their content has been

relocated to other relevant Standards (see pages 38-39)

69

New descriptions of the topic within each

Standard

• Each topic-specific Standard now includes a

‘Background context’ section in the

Introduction

• These sections describe the topic and the

issues concerned. They combine some G4

content with new content sourced from

authoritative intergovernmental instruments

Changes in terminology

• The term ‘Aspect’ from G4 is no longer used

and has been replaced by ‘topic’ throughout

the Standards

70

Topic-specific StandardsMain changes compared to G4

Example from SRS 505: Emissions, page 9

Topic-specific StandardsStructure of each Standard and related G4 content

Section Description Relevant G4 Content

Introduction New section that includes background information on the GRI

Standards, as well as normative references, scope of the

Standard, and effective date.

• New text

• Relevance sections from

Aspects and disclosures

Management

approach

disclosures

Each Standard includes a section referencing SRS 301:

Management approach. In some Standards, this section can also

include additional guidance, recommendations, or reporting

requirements for management approach that are specific to that

topic.

• G4 RPSD pp. 45-46

• G4 IM pp. 63-65

• Aspect-specific DMA

guidance for the Aspects

Topic-specific

disclosures

This section presents all disclosures for a particular topic. It

includes reporting requirements, reporting recommendations

(where applicable), and guidance.

• G4 RPSD pp. 47-83

• G4 IM pp. 66-245

References The reference list includes documents that informed the

development of each Standard, which are largely unchanged

from the references cited in G4.

• G4 IM pp. 237-242

• References sections from the

Aspects and disclosures

Each topic-specific Standard has the same format

71

Topic-specific StandardsOverview of all topic-specific Standards

Economic series (400)

401 Economic performance

402 Market presence

403 Indirect economic impacts

404 Procurement practices

405 Anti-corruption

406 Anti-competitive behavior

Environmental series (500)

501 Materials

502 Energy

503 Water

504 Biodiversity

505 Emissions

506 Effluents and waste

507 Environmental compliance

508 Supplier environmental assessment

72

SRS 405 and SRS 406 have been moved from the

Social to the Economic section

SRS 507 was previously named ‘Compliance’,

under the Environmental Category

SRS 501 includes Indicator G4-EN28 previously

found in the ‘Products and Services’ Aspect of G4,

which has been discontinued

SRS 620 combines the two ‘Compliance’ Aspects in the Social

Category of G4

Topic-specific StandardsOverview of all topic-specific Standards

73

Social series (600)

601 Employment

602 Labor/management relations

603 Occupational health and safety

604 Training and education

605 Diversity and equal opportunity

606 Non-discrimination

607 Freedom of association and collective bargaining

608 Child labor

609 Forced or compulsory labor

610 Security practices

611 Indigenous rights

612 Human rights assessment

613 Local communities

614 Supplier social assessment

615 Public policy

616 Customer health and safety

617 Marketing and labeling

618 Customer privacy

619 Socioeconomic compliance

SRS 605 includes the content from the ‘Equal Remuneration for

Women and Men’ Aspect of G4

SRS 612 combines the ‘Investment’ and ‘Assessment’ Aspects from

the Human Rights sub-Category of G4

SRS 614 combines the three supplier-related Aspects in the Social

Category of G4

SRS 617 combines the ‘Product and Service Labeling’ and ‘Marketing

Communications’ Aspects of G4. SRS 617 excludes Indicators G4-

PR5 and G4-PR6, which will be moved to SRS 201: General disclosures

Topic-specific StandardsOther minor revisions

• Guidance headings: the guidance for G4 Indicators is no longer categorized as Relevance,

Compilation, Definitions, Documentation sources, and References

• Definitions: the Definitions are now located in the GRI Standards Glossary

• Documentation sources: the Documentation sources have been discontinued

• References: the references have been consolidated in a separate section at the end of each

Standard. These are then cross-referenced for each disclosure, when relevant

• Linkages: the Linkages to the UN Global Compact Principles and the OECD Guidelines for

MNEs found in the G4 Implementation Manual for the different Aspects will be moved to a

separate ‘how-to’ Guide or linkage document

• Overview tables: the Overview tables for G4 Aspects and G4 Standard Disclosures will be

provided as separate resources on the GRI website

• Introductions to Categories: the content in the introductory sections to the Categories and

sub-Categories in G4 has been re-purposed for the ‘Background context’ sections of topic-specific

Standards

74

Content clarifications

Annex

75

This section includes more detail on the following content clarifications:




4. Reporting on other material topics (beyond those covered by the GRI Standards)


6. Understanding and applying the concept of ‘topic boundary’

7. How to report on topics if the boundary is outside the organization

8. Expectations for reporting on strategy and analysis (former G4-1 and G4-2)

9. Expectations for reporting on supply chain (former G4-12)

10. Expectations for reporting the process for defining report content (former G4-18)

11. Expectations for reporting the Content Index (former G4-32)

12. Expectations for reporting on external assurance (former G4-33)

13. Clarifying topic descriptions (e.g., what the topic is about and covers)


Content clarificationsKey concepts have been clarified


76

• The GRI Standards still have two options (core and comprehensive) for

preparing a report in accordance with the Standards. However, the criteria

have been clarified and the claim (i.e., statement of use) to be included in

published materials is now specified

• Requirements for using individual GRI Standards or their content (called an

‘SRS-referenced’ claim) have also been clarified

• The use of the reasons for omission has been clarified

See SRS 101: Foundation, clause 2.9 (lines 624-653) and Section 3 (lines 674-766)

See also pages 14-23 in this document


• The term ‘impacts’ has been clarified to help users understand that, in the

context of the GRI Standards, the term relates to impacts on the economy, the

environment, or society (i.e., in other words, how an organization contributes to

sustainable development). This is to address the previous confusion which saw

some G4 users interpret the term ‘impacts’ as meaning impacts on the

reporting organization itself (e.g., reduced profits)

• In specific cases, where the meaning is impacts on the organization, the term

‘impacts’ has been replaced with more suitable wording, depending on the

context (e.g., effects on the organization)


77

See SRS 101: Foundation, Guidance 1.3 (lines 255-256) and Guidance 2.3 (lines 526-

528); and the GRI Standards Glossary


• The GRI Standards now clarify that, where possible, reporting organizations

should relate their material topics to the list of topics covered in the GRI

Standards (series 400, 500, and 600). This clarification has been proposed due

to confusion among G4 users about how to report on topics that are similar

to, but not identical with, the topics (Aspects) covered in G4

• Within SRS 101: Foundation, it is now explained that topic descriptions within

the GRI Standards (the ‘Background context’ sections) are intentionally broad

and are designed to encompass numerous other related or more specific

subjects


78

See SRS 101: Foundation, Guidance 2.3 (lines 534-548)


• The GRI Standards now clarify that the report needs to include all material topics listed

under Disclosure 201-47 (formerly G4-19, the list of material topics), even if they are

not covered by a topic-specific GRI Standard. This clarification addresses questions from

G4 users who were unsure how to report about material topics that were not covered

by a corresponding Aspect (topic) within the G4 Guidelines

• SRS 101: Foundation now explains that if a material topic is not covered by a topic-

specific Standard (and cannot reasonably be linked to an existing Standard), the

organization is expected to use SRS 301: Management approach to report its

management approach, and can also use other disclosures

4. Reporting on other material topics (beyond those

covered by the GRI Standards)

79



• To clarify how sector-related GRI content is to be used, a new section

of guidance has been included in SRS 101: Foundation. This section

explains that GRI sector guidance can be consulted, where available, to

help organizations identify their material topics

• Using the sector guidance is no longer required for preparing a report

in accordance (core or comprehensive) with the GRI Standards


80



• The explanation of topic Boundary has been revised and clarified, and is now

included in SRS 101: Foundation, SRS 301: Management approach, and the GRI

Standards Glossary

• This revised explanation aims to clarify how organizations are to define the

boundary for each topic, and gives more detail for cases where a topic

Boundary is defined as being outside the organization

6. Clarifying the concept of ‘topic boundary’

81

See SRS 101: Foundation, clause 2.4 (lines 549-576); and SRS 301: Management

approach, Guidance 1.1 (lines 108-130); and GRI Standards Glossary (lines 190-195)


• The GRI Standards now clarify the expectations for how organizations should report

on a topic if the Boundary falls outside their own organization – for example, if the

impacts occur in the supply chain and it is therefore not possible to get the necessary

information for reporting

• If the Boundary for a topic is defined as outside the organization, the reporting

organization is still expected to report on this material topic if preparing a report in

accordance with the GRI Standards. The organization is required to report on its

management approach using SRS 301: Management approach. If the topic-specific

disclosures cannot be reported due to insufficient information, the organization can use

reasons for omission

7. How to report on topics if the boundary is

outside the organization

82



• The structure of the two ‘Strategy and Analysis’ disclosures (formerly G4-1

and G4-2, now 201-14 and 201-15) has been revised to be more consistent

with other disclosures in the GRI Standards. Some items within G4-1 and G4-2

are no longer required and are now included as recommendations only

• The request for ‘two concise narrative sections’ has been removed from G4-2

(now 201-15)

• The section has been retitled as ‘Strategy’ rather than ‘Strategy and analysis’

8. Expectations for reporting on strategy and

analysis (formerly G4-1 and G4-2)

83

See SRS 201: General disclosures, Section 2 (lines 202-268)


• The reporting requirements for Disclosure 201-9 (formerly G4-12) have been

expanded to be more specific on the reporting expectations. This clarification

was due to inconsistent reporting and questions from G4 users about how to

report this disclosure

9. Expectations for reporting on the supply chain

(formerly G4-12)

84

See SRS 201: General disclosures, clause 1.11 (lines 151-159)


• Additional guidance text has been included in SRS 101: Foundation (Section 2)

and SRS 201: General disclosures to clarify the expectations for organizations

reporting Disclosure 201-46 (formerly G4-18)

• An additional ‘how to’ guide is planned to be developed based on the G4-18

guidance text from the G4 Implementation Manual (pages 31-40). This will be

made available to reporters as a non-mandatory resource

10. Expectations for reporting the process for

defining report content (formerly G4-18)

85

See SRS 101: Foundation, Guidance 2.3 (lines 520-533); and SRS 201: General

disclosures, clause 6.3 (lines 559-586)


• Disclosure G4-32 has been separated into three disclosures to improve logic and

clarity:

– G4-32-a is now 201-54 and relates to ‘in accordance’ claims

– G4-32-b is now 201-55 and relates to the content index

– G4-32-c has been merged with G4-33 on external assurance, and renumbered as 201-56

• The Content Index Disclosure (201-55) has been revised to be less prescriptive about

the presentation format

• In addition, following the interpretation issued by the GSSB in August 2015, it is no

longer required to include a column on external assurance in the Content Index

11. Expectations for reporting the Content Index

(formerly G4-32)

86

https://www.globalreporting.org/standards/g4/Pages/Interpretations.aspx


• It is no longer required to use a specified table format for presenting the

Context Index. Organizations can use the presentation format they wish, as

long as the Context Index includes as a minimum the following information:

– the GRI Standards used and disclosures made

– the page number or URL where the information can be found

– if applicable, and where permitted, reasons for omission

• The GRI Standards provide reporting recommendations and guidance for

presenting the Content Index, including an example table

11. Expectations for reporting the Content Index

(formerly G4-32) cont.

87

See SRS 201: General disclosures, clauses 6.12-6.14 (lines 653-700)


• The terminology used in Disclosure 201-56 (formerly G4-33) on external

assurance has been simplified (e.g., the terms ‘scope’, ‘basis’, and ‘External

Assurance Report’ have been revised)

• Disclosure 201-56 now combines former disclosures G4-33 with G4-32-c, the

latter asks organizations to provide a reference to the external assurance

report, statements, or opinions

12. Expectations for reporting on external

assurance (formerly G4-33)

88

See SRS 201: General disclosures (lines 701-747)


• Each topic-specific Standard includes a new ‘Background context’ section in the

Introduction. This section includes a description of the topic, based on the text

from the ‘Relevance’ sections in G4. Where appropriate, this content has been

updated to align it with authoritative intergovernmental instruments.

• This should make it easier for reporting organizations to understand the

nature of each topic, and which related topics might also be considered under

the same Standard for the purposes of reporting.

13. Clarifying topic descriptions

89

See the ‘Background context’ sections, found in the Introduction to each topic-specific

Standard (series 400, 500, and 600)

Thank you

www.globalreporting.org

GRI

Barbara Strozzilaan 336

1083 HN Amsterdam

The Netherlands

Amsterdam | New York | Beijing | Manila | New Delhi | Johannesburg | Bogotá | São Paulo

[email protected]

Documents

Transition to GRI Sustainability Reporting Standards · Transition to GRI Sustainability Reporting Standards ... SRS 101: Foundation 48 – ... • Employee/worker project page