International Sustainability Disclosure Standards: Fundamentals and Latest Trends of the GRI Standards

What are the GRI Standards?

Background and Objectives of GRI

The Global Reporting Initiative (GRI) is an international non-profit organization founded in Boston, USA in 1997. Its predecessors were the NPOs CERES and Telus Institute, and the United Nations Environment Programme (UNEP) was also involved in its founding. Its original purpose was to create an accountability mechanism to ensure that companies adhere to principles of responsible environmental behaviour. Its scope of activity has since expanded to include social, economic and governance Issue, and it provides a comprehensive reporting framework for companies to contribute to sustainable development. * 1

Relationship with international trends in non-financial information disclosure (ISSB/ESRS/ TCFD, etc.)

The GRI Standards play an important role in the international trend regarding the disclosure of non-financial information by companies. In recent years, there has been an expansion of "responsible investment," in which investors incorporate a company's efforts to address ESG (environmental, social, and governance) Issue into their investment decisions, and the need for Company other than financial information is growing. Against this backdrop, there is an increasing need for disclosure of information regarding climate change countermeasures and responses to environmental Issue, and various disclosure standards other than the GRI have been proposed.

The relationship between major international disclosure standards and the GRI Standards is as follows:

• ISSB(International Sustainability Standards Board): A standard-setting organization established by the IFRS Foundation that develops sustainability disclosure standards for investors (IFRS S1/S2). GRI and ISSB have signed an MOU, building a mutually complementary relationship between GRI standards and ISSB standards. While ISSB focuses on "financial relevance (single materiality)," GRI places emphasis on the perspective of "impact (social and environmental impact, double materiality)."

• ESRS (European Sustainability Reporting Standard): A disclosure standard required for European companies under the EU's Corporate Sustainability Reporting Directive (CSRD). GRI provided technical assistance in the development of ESRS, and it has been confirmed that there is a high degree of alignment between GRI standards and ESRS. Companies that report in accordance with ESRS are often considered to be reporting with reference to GRI standards.

• TCFD(Task Force on Climate-related Financial Disclosures): A framework that recommends information disclosure regarding financial risks and opportunities related to climate change. It completed its mission in 2023 and was disbanded, and has now been integrated into the ISSB's standards. However, the expression "disclosure in line with TCFD" is still widely used in national systems and corporate practices, and the GRI Standards also play a role in supporting the disclosure of climate-related information in line with TCFD recommendations.

The GRI Standards are an important benchmark for companies that wish to utilize these diverse global disclosure frameworks in an integrated manner, and serve as the foundation for international information disclosure.

Comparison table of major sustainability disclosure standards (GRI, ISSB, ESRS, TCFD)

GRI Standards Structure

The GRI Standards provide a framework for reporting organizations to report on their economic, environmental, and social impacts and explain their contributions to sustainable development. Published in 2016 to replace the GRI Guidelines, the revised common standards will be released in October 2021.*2was announced. The GRI Standards are modular and regularly updated to address current sustainability Issue and regulatory requirements.

The GRI Standards consist of 3 components:

Universal Standard

These are basic standards that all reporting organizations must meet. They consist of 3 sections: GRI 1: Fundamentals, GRI 2: General Disclosures, and GRI 3 : Material Topics.

• GRI 1: Fundamentals (2021)
  It provides guidance on how to use the GRI Standards and how to apply the reporting principles.

• GRI 2: General Disclosure (2021)
  It sets out disclosure requirements for the reporting organization's background information, covering a wide range of topics such as organizational details, activity, governance structure, strategy, policies, practices and stakeholder engagement.

• GRI 3: Material Topics (2021)
  It provides guidance for organizations to identify material issues and report on their management practices. It also includes disclosures on materiality assessment processes and policy statements for responsible business conduct, including human rights due diligence.

Topic Criteria

These are standards that organizations can select to report on their material economic, environmental, and social impacts. These standards are organized into the "200 series (Economic)," "300 series (Environmental)," and "400 series (Social)" series.

• Economics (200s)
  These include disclosures on economic performance, taxes, procurement practices, anti-corruption, and more.

• Environment (300s)
  It covers a wide range of environmental topics, including Energy, water and wastewater, biodiversity, air emissions and waste.

• Social Studies (400s)
  This includes disclosures on social aspects such as employment, occupational health and safety, training and Education, diversity and equal opportunity, human rights, and local Community.

Sector criteria (overview/details to be linked in a separate article)

These standards enable reporting on impacts specific to a particular sector (Industry). Sector standards have been developed to help companies identify topics that are considered important for their sector and assist them in their materiality assessment.

example:

• GRI 11: Oil and Gas (2021)

• GRI 12: Coal (2022)

• GRI 13: Agriculture, Aquaculture and Fisheries (2022)

The sector standards are being expanded gradually, and new sectors will be added in the future. This will enable more specific and comprehensive sustainability reporting tailored to the characteristics of each Industry. The specific Contents of the sector standards will be explained in detail in a separate article.

Latest revisions and trends (as of 2025)

The GRI Standards are continually revised and expanded to keep up with the evolution of sustainability reporting. Major revisions and trends as of 2025 are listed below.(As of October 2025)

Climate Change and Energy Standards (draft)

GRI plans to launch new climate change-related standards, "GRI 102 Climate Change 2025" and "GRI 103 Energy 2025," in preparation for 2025. These new standards will provide a framework for comprehensively visualizing the status and impact of decarbonization management. Drafts of these standards were made public in early July 2025, with public comments solicited until the end of 9. The finalization process is currently underway, taking into account the comments received, and the standards are scheduled to replace existing standards once officially issued.

GRI 102 Climate Change 2025

• We require accounting for Scope 1 to 3 emission amount in accordance with the GHG Protocol.
• We demand disclosure of a scientifically based "transition plan" and "just transition."
• It serves as a tool to help reduce greenhouse gas (GHG) emissions in line with global climate goals.

GRI 103 Energy 2025

• We require disclosure of organizations' efforts to decarbonize and save energy, and their use of fossil fuels and renewable Energy.
• Encourage disclosure of responsible Energy use.

These standards are compatible with the ESRS, which is highly consistent with the GRI, and the sustainability disclosure standards of IFRS and SSBJ, making them important for companies that want to utilize a variety of global disclosure frameworks in an integrated manner.

Diversity, Equity, and Inclusion (DEI) Standards

GRI is currently undergoing a phased revision of its labor-related topic standards, and as part of the 3 phase, has published 2 draft standards related to "Worker Rights and Protections."

The following 2 drafts were published in May 2025:

• GRI Non-discrimination Standard (Exposure Draft)
• GRI Diversity and Inclusion Standard (Exposure Draft)
  

These standards revamp the existing "GRI 405: Diversity and Equal Opportunity (2016)" and strengthen disclosure Contents related to non-discrimination, fair treatment, and creating an inclusive work environment. Public comments on both draft standards were accepted until September 15, 2025.

The final version will be published after approval by the Global Sustainability Standards Board (GSSB).

The revision comes as companies are increasingly placing importance on diversity, equity, and inclusion (DEI). In addition to diversity indicators (gender, age, ethnicity, disability, minority attributes, etc.), companies are now required to disclose practical initiatives such as promotion, compensation, anti-discrimination measures, and fostering an inclusive culture.

Expanded sector standards (textiles and apparel, finance)

The sector standards are being expanded to allow disclosure tailored to the characteristics of each Industry. In particular, the textile and apparel Industry and the financial sector have significant environmental and social impacts, so standards specific to each sector are becoming increasingly important.

• Financial sector:The financial sector is one of the most closely watched sectors due to the wide-ranging impact it has on the environment, society, and the economy through its investment and lending activity. Financial Institution are being asked to disclose information specific to them, such as the environmental and social impact of their investments and lending activities (financed emissions), human rights due diligence, and responsible investment initiatives.
  In 2024, the following 3 sector standards were issued in succession:

  • GRI 11: Sector Standard for Banking (Exposure Draft) 
  • GRI 12: Sector Standard for Insurance (Exposure Draft)
  • GRI 13: Sector Standard for Capital Markets (Exposure Draft)

• Textile and apparel Industry:The textile and apparel Industry is attracting international attention as a sector that faces environmental and human rights risks in a wide range of processes, from raw material procurement to Manufacturing and sales.In July 2025, a draft Industry and Apparel Sector Standard was released and open for public comment until September 29.The new Contents will strengthen disclosure of Issue such as environmental impact throughout the supply chain (chemical substances, water resources, waste, etc.), working conditions, fair wages, and human rights due diligence.

  • Sector Standards for the Textile and Apparel Industry(Textiles and Apparel Sector Standard: Exposure Draft/English)

Significance for Japanese companies

Expectations from investors and regulators

The GRI Standards have been adopted by many companies around the world, and their use is also spreading among Japanese companies. According to a KPMG survey, 73% of Nikkei 225 companies used the GRI Standards in 2020. This is due to the expansion of ESG investment, which has led to strong expectations from domestic and international investors for companies to disclose sustainability information. Furthermore, in Japan, there is a growing trend toward regulations requiring the disclosure of non-financial information, such as the Financial Services Agency's revision of the Cabinet Office Ordinance on Disclosure of Corporate Contents, etc., and Japanese companies must respond appropriately to these expectations and regulations. Reporting in accordance with the GRI Standards is an important means of demonstrating the transparency and credibility of a company's sustainability efforts to investors and regulators.

Relationship with the Integrated Report and Sustainability Report

Many Japanese companies disclose non-financial information through integrated reports and sustainability reports, and the GRI Standards are one of the main frameworks used in Create these reports.

• Integrated Reporting: The GRI Standards support comprehensive disclosure of non-financial information in integrated reports. Information on important Issue identified through materiality assessments is particularly useful in linking them to a company's value creation story.

• Sustainability Reporting: The GRI Standards provide the basis for disclosure of information that is the foundation of sustainability reporting. By reporting on the economic , environmental, and social impacts in detail in accordance with the common standards (GRI 1 ) and topical standards (200-400), you can provide highly transparent information to stakeholders.

Many Japanese companies Create their reports by "referencing" the GRI Standards, but it is expected that in the future, more companies will report in "compliance" with the standards.

Important points to keep in mind when dealing with practical matters

When applying the GRI Standards in practice, Japanese companies should keep the following points in mind:

• Deepening materiality assessment:The GRI Standards require organizations to identify their most significant impacts on the economy, the environment, and people, including human rights, as material items. It is important to adopt a "dual materiality" perspective that identifies and prioritizes potential and actual impacts across the entire value chain, rather than simply listing issues of concern.

• Compliance with the latest GRI Standards:GRI comparison tables published after January 2023 must comply with the new common standards (GRI 1, 2, and 3). In particular, companies are required to understand the revisions to the materiality identification methodology outlined in GRI 3 and incorporate them into their reporting processes.

• Use of sector standards:If standards for your sector have been published, you can refer to them to disclose comprehensive and high-quality information about important Issue specific to your industry. Even if they have not been published, you should refer to other industry-specific disclosure standards, such as SASB, to identify materiality that takes into account the characteristics of Industry.

• Alignment with other disclosure frameworks:In the current situation where multiple disclosure frameworks coexist, such as ISSB, ESRS, and TCFD, it is important to understand the characteristics of each and utilize them strategically in combination with GRI standards. For example, it is necessary to use ISSB and TCFD for financial information aimed at investors, and GRI for impact information aimed at a wider range of stakeholders, and to use them appropriately according to purpose and to have an integrated disclosure strategy.

• Enhanced disclosure of DEI information:As societal demands for diversity, fairness, and inclusion grow, companies are expected to strengthen their disclosure of specific data on DEI in line with GRI 405 (e.g., the ratio of women in management positions, the gender wage gap, etc.) and clearly communicate their efforts.
  
  

Frequently Asked Questions (FAQ)

Are the GRI Standards mandatory?

The GRI Standards are voluntary guidelines for international sustainability reporting and do not impose legal reporting obligations. However, they are referenced by many companies around the world, and are widely recognized as the de facto "international standard," particularly for listed and global companies, in meeting the expectations of investors and other stakeholders. In addition, there are moves to legislate reporting standards that are highly consistent with the GRI Standards, such as the European Sustainability Reporting Standards (ESRS), and situations in which reporting is indirectly required are on the rise.

How does it differ from ESRS and IFRS?

ESRS, IFRS (ISSB standards), and GRI Standards are all frameworks for sustainability information disclosure, but they differ in their purpose and focus.

• GRI Standards: Comprehensive disclosure standards for multiple stakeholders that focus on the "impact" of companies on society and the environment. They emphasize not only financial impact but also the external impact of corporate activity(dual materiality).

• ESRS: A disclosure standard based on the EU's Corporate Sustainability Reporting Directive (CSRD), which is mandatory for large companies within the EU. Like the GRI Standards, it incorporates the perspective of "dual materiality," and is highly consistent with GRI.

• IFRS (ISSB Standards): These are sustainability disclosure standards for investors that focus on the impact of sustainability-related risks and opportunities on a company's financial affairs (single materiality). Based on the recommendations of the TCFD, they emphasize the relevance of financial information.

Although these standards have different perspectives, they are working together to increase interoperability, and it is becoming common for companies to combine multiple frameworks.

Do public comments matter to businesses?

In the process of revising and formulating the GRI Standards and other international disclosure standards, public comments (seeks opinions on exposure drafts) are conducted, which is an important process for reflecting the opinions of a wide range of stakeholders, including companies, investors, and NGOs, when finalizing the standards.

Companies' involvement in public comment is relevant in the following ways:

• Understand future disclosure requirements: The exposure draft provides early insight into future disclosure Contents and direction.

• Impact assessment for business activity: Evaluate how the new standards will affect your business activity and disclosure regime.

• Influence on standard development: By expressing your company's opinion, you may be able to influence the Contents of the standards, leading to standards that are more practical or advantageous to your company.

In particular, companies interested in the latest revision trends would benefit from taking advantage of the public comment opportunities and actively submitting their opinions.

Summary: Understanding the GRI Standards and applying them to practice

The GRI Standards are international standards for the comprehensive and transparent disclosure of corporate sustainability information. Their history, comprehensive structure, and ongoing revisions make them an essential tool for understanding a company's impact on society and the environment and for practicing responsible management.

In particular, it is important to understand and apply the following points in your work:

• The GRI Standards are not simply a reporting obligation, but a strategic tool for companies to create long-term value and build social trust.

• Understand the three-tiered structure of universal standards, topic standards, and sector standards, and select and disclose appropriate items according to your company's materiality.

• Keep up to date with the latest revision trends, especially climate change and Energy standards, DEI responses, and the expansion of sector standards.

• Develop an integrated disclosure strategy that takes into account relationships with other international disclosure frameworks, such as ISSB and ESRS.

By gaining a deep understanding of the GRI Standards and putting their principles and requirements into practice, Japanese companies will be able to meet the expectations of domestic and international stakeholders and contribute to the realization of a sustainable society.

source:

* 1: GRI "Vision, Mission, and History"

https://www.globalreporting.org/about-gri/vision-mission-and-history/

* 2: GRI "Regarding the Revision of the GRI Standards"

https://www.globalreporting.org/standards/standards-development/universal-standards/