The Global Reporting Initiative (GRI) has long been a cornerstone of sustainability reporting. With the 2021 update, it moved from a more monolithic structure to a flexible, modular system. This change was designed to make reporting more relevant, consistent, and comparable across different industries.

The system now consists of three interconnected series of standards: Universal, Sector, and Topic. Think of the Universal Standards as the foundation for all reporting. The Sector Standards provide a specific lens for certain industries, helping them pinpoint their most likely impacts. The Topic Standards then offer detailed guidance for disclosing information on specific issues like waste, water, or labour practices.

At the heart of the new system are the three Universal Standards, which are mandatory for any organisation reporting in accordance with GRI. They establish the ground rules for the entire process.

GRI 1: Foundation 2021 is the starting point. It introduces the key concepts, principles, and requirements that all organisations must follow. This standard explains how to use the whole system and defines what it means to report in accordance with GRI. Crucially, GRI 1 updates the definition of 'impact' to align with authoritative intergovernmental instruments, such as the UN Guiding Principles on Business and Human Rights. An 'impact' is the effect an organisation has on the economy, environment, and people—including on human rights—which can be actual or potential, negative or positive.

GRI 2: General Disclosures 2021 covers the contextual information about the organisation. This includes details on its structure, governance, strategy, policies, and stakeholder engagement practices. These disclosures provide a transparent look at the organisation itself, setting the scene for its specific impacts.

GRI 3: Material Topics 2021 guides organisations through the process of determining which topics are material—that is, which represent their most significant impacts. This standard requires organisations to follow a clear process: identify impacts, assess their significance, and then prioritise them for reporting. This process is deeply connected to the concept of due diligence, which is a major focus of the 2021 update.

Perhaps the biggest change in the 2021 update is the removal of the old 'Core' and 'Comprehensive' reporting options. Now, there is only one way to claim full alignment: reporting 'in accordance' with the GRI Standards. This move eliminates confusion and strengthens the credibility of GRI-based reports.

To report 'in accordance', an organisation must meet nine specific requirements laid out in GRI 1. These include applying the reporting principles, reporting all required disclosures from GRI 2, and following the process in GRI 3 to determine its material topics. For each material topic identified, the organisation must then report the relevant disclosures from the corresponding GRI Topic Standards.

What if a company isn't ready for a full 'in accordance' report? It can still use the standards. An organisation that uses some GRI Standards to report on specific topics—for example, to create a climate-only report using GRI 305: Emissions—can make a claim of 'reporting with reference to' the GRI Standards. This provides flexibility while maintaining transparency about the extent of the report's alignment with the full framework.

This updated, modular system provides a clearer, more rigorous, and globally aligned path for sustainability reporting. By focusing on an organisation's most significant impacts and integrating principles from key international instruments, the GRI Standards help ensure that reports are decision-useful for stakeholders and drive meaningful action.