Sustainability Measures and the Global Reporting Initiative (GRI) | AIChE

Sustainability Measures and the Global Reporting Initiative (GRI)

Authors 

Henderson, R. - Presenter, ABS Consulting


Sustainability requires an organization to pursue a strategy that encompasses social, environmental and business performance. Superior organizations also report their sustainability performance. Key components of a sustainability report are the measures used to determine progress towards becoming a sustainable organization.

A sustainability report should provide a balanced and accurate representation of the sustainability performance of the reporting organization, including both positive and negative contributions.

The Global Reporting Initiative (GRI) was established to promote sustainability performance reporting using a standardized format that promotes adequacy, consistency and comparability across reports. GRI's vision is that reporting on sustainability by all organizations become as routine and comparable as financial reporting. The GRI is considered the ?Gold Standard? for sustainability reporting.

The GRI network accomplished this vision by developing, continuously improving, and building capacity around the use of a Sustainability Reporting Framework, the core of which are the Sustainability Reporting Guidelines. Other components in the Reporting Framework are Sector Supplements and Protocols. This reporting guidance - in the form of principles and indicators - is provided as a free public good.

To ensure the highest degree of technical quality, credibility, and relevance, the GRI Reporting Framework was developed and continuously improved through intensive multi-stakeholder engagement that involved reporting organizations, sector experts, and information seekers, who together develop review, and test content for the Reporting Framework.

Sustainability Measures as defined by the GRI G3 Guidelines:

The GRI G3 reporting framework structures its indicators by category, aspect, and the importance of the indicator across and within sectors.

Categories

The GRI categories are the triple bottom line categories: economic, environmental, and social. The social grouping is sub-categorized into Labor Practices, Human Rights, Society, and Product Responsibility. A given category may have several Aspects, which in turn may have multiple indicators.

Aspects

These are the general types of information that are related to a specific Indicator category (e.g., energy use, child labor, customers).

Indicators

These are qualitative or quantitative information about results or outcomes associated with the organization that is comparable and demonstrates change over time. Examples of GRI measures include:

1) Economic:

a. EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.

b. EC2 Financial implications and other risks and opportunities for the organization's activities due to climate change.

2) Environmental:

a. EN1 Materials used by weight or volume.

b. EN2 Percentage of materials used that are recycled input materials.

c. EN4 Indirect energy consumption by primary source.

d. EN16 Total direct and indirect greenhouse gas emissions by weight.

3) Social:

a. LA1 Total workforce by employment type, employment contract, and region.

b. LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work related fatalities by region.

c. HR2 Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken.

d. SO2 Percentage and total number of business units analyzed for risks related to corruption.

e. PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures.

Core and Additional Indicators

Core Indicators are considered to be basic, required measurements applicable to all organizations. Additional indicators are optional and may represent leading practice.

Indicator Protocol

The GRI indicator protocol is essentially a recipe for assembling the data and support materials for an indicator. Each indicator has a unique and detailed protocol, which has been developed based on practical reporting experience across and within sectors.

This paper/presentation will take audience through the process of selecting and using well established, and globally accepted, sustainability measures.