Introducing the new GRI standard
The most common GRI reporting standard (Global Reporting Initiative) will be reformed. The 2016 GRI guidelines will be replaced by the new guidelines that will be enforced for reports published after the start of 2023.
The demand for improving corporate responsibility and reporting on responsibility grows each year. A few years ago, the Accounting Act imposed an obligation for large listed companies to include non-financial information in their Board of Directors’ report. Last year, the EU Taxonomy Regulation entered into force with the aim of making financial markets favour environmentally sustainable business activities. Now that companies have been able to assess whether their business activities are taxonomy-eligible, the most common GRI reporting standard (Global Reporting Initiative) will be reformed. The 2016 GRI guidelines will be replaced by the new guidelines that will be enforced for reports published after the start of 2023. Other reporting systems, such as TCFD and SASB, have also become more common, which keeps responsibility reporters busy.
The transition to the 2021 GRI standard brings with it many changes that should be prepared for in good time. The most significant reform is the implementation of sections for different sectors. There are as many as 40 different sectors, and the sectors that place the greatest burden on the environment have been prioritised in the development order of standards. Guidelines have been released for the oil, gas and coal industries and guidelines are currently being prepared for agriculture and fishing. As such, it will take time before all the different sectors are covered.
Another significant change concerns limiting options. Previously, someone preparing a report could choose between core and comprehensive levels but now the comprehensive level has become obligatory for everyone. On the other hand, the new standard redirects focus more on substantive issues that impact humankind and the environment. In addition, the bar for reporting on human rights has been raised.
Everyone should prepare well in advance before the new standard enters into force so that necessary information can be collected already this year. A comparison with existing information and what information is missing should be done already during this summer or in early autumn. This will facilitate transitioning to the new reporting system that is in accordance with the new standard. If you need assistance on preparations, the responsibility team at Bravura is at your service.