By Rachel Bukowitz
GRI Updates
The Global Reporting Initiative (GRI) has released updates to its sustainability reporting, introducing three new standards that will shape corporate disclosure in the coming years:
- GRI 101: Biodiversity 2024 (effective January 1, 2026)
- GRI 102: Climate Change 2025 (effective January 1, 2027)
- GRI 103: Energy 2025 (effective January 1, 2027)
Biodiversity 2024 marks an expansion of reporting requirements as compared to GRI’s 2016 biodiversity standard. Biodiversity 2024 requires organizations to disclose [1] their policies and actions to halt and reverse biodiversity loss, report on the management of biodiversity impacts, and provide detailed information on locations, drivers, and changes to the state of biodiversity across their operations and supply chains. The standard aligns with leading biodiversity frameworks, including the Task Force on Nature-Related Financial Disclosures.
Climate Change 2025 provides a framework spanning 10 disclosure topics for reporting on climate-related impacts, transition and adaptation plans, just transition metrics, and greenhouse gas (GHG) emissions across scopes 1, 2, and 3. It requires organizations to disclose (or provide a reason for omission) short-, medium-, and long-term GHG reduction targets [2], report on progress, and detail the use of carbon credits and removals (if applicable). GRI recognizes IFRS S2 reporting as equivalent for reporting scope 1, 2, and 3 emissions.
Energy 2025 focuses on energy policies, consumption, efficiency, and reduction measures. It includes reporting on energy use within the organization and across the value chain, including energy intensity ratios, reductions achieved, and the methodologies used. The standard also highlights the linkages between energy use and broader environmental and social impacts, including impacts on biodiversity, human rights, and health and safety.
Together, these standards reflect an expansion in climate- and nature-related reporting, building a more holistic approach for integrating climate, human rights, and biodiversity dimensions into disclosures.
Impacts on Reporters
For companies issuing sustainability reports using the GRI standards, these new standards represent an opportunity for increased transparency and interoperability across reporting standards. When biodiversity, energy, and/or climate change are material topics, the following considerations should be applied for reporting:
- Expanded Scope and Depth: GRI reporting on these topics is now more detailed, location-specific, and value chain-wide. This includes reporting on biodiversity impacts at specific sites, energy use across the supply chain, and GHG emissions from all relevant sources.
- Just Transition and Human Rights: The Climate Change 2025 standard exemplifies a holistic approach to sustainability reporting in which there is a concerted effort towards integrating social dimensions into reporting on traditionally ‘environmental’ topics. The climate change standard demonstrates this by incorporating disclosures on the transition to a low-carbon economy, including impacts on employees, reskilling, and fair treatment of affected groups.
- Alignment Across Reporting: The standards are designed to be seamlessly used in conjunction with the European Sustainability Reporting Standard’s (ESRS) topical standards [3] and IFRS S2 Climate-Related Standard [4]. For Biodiversity 2024, cooperation and exchange with TNFD ensures alignment with the TNFD disclosure recommendations [5].
These changes encourage organizations to deepen their data collection, analysis, and reporting processes, and to adopt a more holistic, integrated approach to sustainability management and reporting. By aligning with other standards and frameworks, these updated standards also support the consolidation and streamlining of reporting efforts.
How 3R Can Help
At 3R Sustainability, we understand that navigating these new standards can be complex. Our team is ready to support organizations at every step of the journey:
- Material Topic Identification and Reporting: 3R guides organizations in determining their material topics using GRI 3: Material Topics 2021 and a double materiality approach. Once identified, our team can map material topics to the GRI standards to clarify which disclosures should be included in sustainability reporting. Click here to learn more about double materiality.
- Stakeholder Engagement: We facilitate meaningful engagement with internal and external stakeholders, supporting compliance with GRI’s and AA1000’s requirements for transparency and inclusivity.
- Data Collection and Analysis: Our experts help you design and implement systems for collecting the necessary data across your operations and value chain, ensuring accuracy, completeness, and audit-readiness. Moreover, we help our clients gain valuable insights by analyzing the data to uncover meaningful insights for their business.
- Integrated Reporting and Communication: We help you craft clear, compelling sustainability reports that communicate your impacts, risks, opportunities, actions, and progress to investors, customers, and other stakeholders. We work with your teams to use the sustainability report as a key communication tool that can serve as a springboard for continued engagement and education with stakeholder groups. Click here to learn more about our reporting services.
As the sustainability landscape evolves, 3R Sustainability is your partner to help you not only report using the new GRI standards but also drive real impact for your business.
Ready to get started? Contact us to learn how we can help you prepare for the future of sustainability reporting.
Footnotes:
[1] Consistent with GRI’s long-standing reporting requirements, to report in accordance with the GRI standards, reporting entities are required to report on their material topics by either disclosing the required information or providing reasons for omission if they cannot comply with a disclosure.
[2] Organizations are permitted to self-define short-, medium-, and long-term periods.
[3] GRI – EFRAG and GRI to co-construct biodiversity standard
[5] https://www.globalreporting.org/media/2bocmv0b/240729-accompanying-guide.pdf