On April 19, 2016,
the first set of drafts of the new Global Reporting Initiative (GRI)
Sustainability Reporting Standards (SRS) were presented to the public. In order
to become future proof, some quite drastic changes have been made to the
structure compared to the previous G4 guidelines. The new standards are aimed at
improving quality and flexibility and have a larger focus on material issues.
It is expected that a final version will be presented to public at the end of
2016.
Time is
short!
If GRI sticks to its current planning, companies will have until December 31, 2017 to publish a (sustainability) report according to the 'old' GRI guidelines. As of January 1, 2018, all companies that wish to be GRI compliant must report according to the GRI SRS. This means that your organisation's AR2017 is the final report that will be acceptable within the 'old' GRI G4 guidelines.
What is
coming your way?
·
From principle to rule-based
One
of the main transition points is a larger focus on DMA’s and the reporting
principles. The new sustainability reporting standards are stricter and ask for
the purpose of a management approach as well as a description of policy
components and actions.
·
A modular structure
There
are big changes in the numbering system (e.g. G4-10 becomes 201-8) and changes
to the format. Companies that wish to report in accordance with are required to use all three universal
standards of SRS 101(foundation), 201(general disclosures) and 301(management
approach) and select the relevant topics of SRS 400(economic),
500(environmental), and 600(social) based on their materiality.
· Criteria: Shall, should or can? The new standards
differentiate criteria into requirements, recommendations and guidance.
Requirements are mandatory and are denoted by the word shall. Recommendations are not mandatory but are encouraged and this
is denoted in the criteria by the use of should.
Lastly, the Guidance aspects are also not mandatory and can be used. The new standards also provide background context and
examples to better understand the disclosure, and describes possible,
achievable, or allowed scenarios for reporting information.
If you want
to know more about these and other changes, more information on the upcoming
GRI Standards can be found here.
How can I
prepare myself?
To prepare
your organisation, you can (should or shall) start by comparing the old and the
new standards by taking a helicopter view. After reflecting these changes in
your organisation’s reporting, a gap-analysis can provide knowledge on what is
missing. As some organisations might have only just gotten their heads around
G4, it might seem like a big effort to make the transition to GRI SRS.
Fortunately several fundamental concepts in the GRI G4 guidelines have been
carried over into the new standards. However, as the time to make the
transition is short (only two reports away), we advise starting as soon as
possible.
Nick de Ruiter is a partner at Sustainalize. He is a
specialist in CSR strategy setting and performance monitoring.
Alissa Daurer-Stolker & Mart van Kuijk are consultants at Sustainalize. They specialize
in CSR reporting and international benchmarks.
