The shift from PDF-based ESG disclosures to verified digital data is imperative. Verified digital data ensures data integrity and authenticity, reducing the risk of manipulation or inaccuracies. This transition enhances the credibility of ESG reporting and promotes standardized data formats, enabling better comparability across industries and regions. Moreover, it facilitates automation, analysis, and integration of data into investment strategies, allowing for more effective decision-making and risk assessment. In summary, securing proprietary data in ESG disclosure preserves competitive advantage and investor trust, while enhancing credibility, comparability, and automation for a sustainable and transparent future.

We believe scope 2 reporting will involve a more temporal & local approach. When and where energy is used influences emissions, due to the intermittency of renewables. If we are to add increased levels of transparency in reporting, these factors should and will become the norm. Trading non-traceable, annually administrated renewable certificates should be revoked as a way of making green claims. I also believe carbon off-setting will face further scrutiny if credibility issues regarding the CO2 effects aren't tackled.

The evolution from PDFs to more dynamic and interactive platforms promotes data standardization, facilitating comparison and enhancing the credibility of sustainability reports. While the benefits of adopting dynamic and interactive online reporting are evident, it is imperative to consider the specific needs of stakeholders. Some ESG investors and evaluators prefer PDFs due to the ease of locating information and the effectiveness of algorithms in data analysis. The transition to more dynamic platforms must be balanced with a profound understanding of stakeholders' digital preferences, aiming to meet expectations while driving transparency and traceability in GRI reports.

GRI reporting is moving from static PDFs to dynamic online platforms. Digital tools like dashboards, infographics, and videos make data more engaging and accessible. This shift allows real-time updates, customization, and enhanced credibility through transparency and feedback mechanisms.

I agree with the benefits of interactive, dynamic web reporting, but I've heard directly from investors and ESG raters/rankers that PDFs tend to be easier to find information and may be more conducive to machines scrubbing information. As a practitioner in the field, I'm always benchmarking my company against others, and I go straight to the PDF version of the report to find what I'm looking for.

Two emerging reporting frameworks to be aware of are: 1) European Sustainability Reporting Standards (ESRS), the resulting framework from the EU's Corporate Sustainability Reporting Directive (CSRD); and 2) International Sustainability Standards Board (ISSB), expected later this year. ESRS appears to have a lot of similarities to GRI. ISSB has an MOU with GRI so ideally, there are similarities here as well and we can move towards an universal ESG reporting framework/standard.

SASB can also complement GRI when considering material topics for a specific industry. Given SASB’s breadth (industry and sector coverage) looking to it helps stakeholders determine key areas of materiality.

The alignment and integration of reporting frameworks in GRI reporting are crucial to simplifying the complex sustainability landscape. By working with initiatives like the TCFD, UN Global Compact, and the SDGs, GRI helps organizations meet diverse stakeholder expectations without duplicating efforts. This collaboration streamlines reporting, making it easier for businesses to provide consistent, comprehensive data that aligns with global standards. As a result, organizations can meet regulatory and investor demands more efficiently while contributing to broader sustainability goals, like climate action and responsible governance.

Emerging trends in GRI reporting regarding alignment and integration include: -Cross-Standard Harmonization: Aligning GRI standards with other frameworks (e.g., SASB, TCFD) for cohesive reporting. -Integrated Reporting: Merging financial & non-financial data for a holistic view of organizational performance -ESG Integration: Incorporating ESG factors more deeply into business strategies & reporting. -SDG Alignment: Mapping GRI indicators to Sustainable Development Goals for greater global impact relevance. -Materiality Focus: Sharpening materiality assessments for more targeted, relevant reporting. -Engaging a broader range of stakeholders for more comprehensive reporting perspectives. -Leveraging digital tools for seamless data integration

A key trend in GRI reporting is integrating various reporting frameworks to meet diverse stakeholder demands. GRI collaborates with initiatives like TCFD, UN Global Compact, and SDGs to streamline reporting, harmonizing standards and providing tools for a cohesive sustainability reporting process.

La doble materialidad es la clave y la apuesta de los nuevos estándares. Ésta se basa en la materialidad de impacto (efectos en el entorno, medioambiente, personas..) y la financiera (impacto en el valor económico de la compañía), pero sobre todo en la interconexión de ambas, de ahí que sea habitual el uso de una matriz para representa.

The concept of materiality is evolving, with a greater emphasis on dynamic materiality assessment processes that consider changing global trends and stakeholder expectations. Organizations are engaging stakeholders more deeply to identify material issues, using innovative tools and platforms for consultation and feedback. This engagement helps ensure that GRI reports focus on the issues most relevant to both the organization and its stakeholders, enhancing the report's relevance and utility.

Double materiality is the latest "buzzword." This is a focus of the ESRS and asks that organizations take into consideration not only what external stakeholders think is a priority for your business, but also the issues your external stakeholders may face as a result of your company's actions.

Emerging trends in GRI reporting for materiality &stakeholder engagement include: -Dynamic Materiality: Continuously updating materiality assessments to reflect changing stakeholder concerns & global trends -Engaging a broader &more diverse range of stakeholders for comprehensive insights. -Utilizing digital platforms for stakeholder surveys, consultations, & feedback collection -Leveraging big data & analytics to identify & prioritize material issues more accurately -Shifting from output-based to impact-based reporting to better understand the effects on stakeholders -Transparency about how material issues are identified & prioritized -Aligning materiality assessments more closely with ESG strategy & performance indicators.

Traditional materiality assessments involve a static analysis of key sustainability topics. However, GRI is moving towards a more dynamic approach – Materiality Assessment 2.0. This emphasizes continuous stakeholder engagement, real-time data analysis, and scenario planning. Imagine using online platforms to gather insights from a wider range of stakeholders on emerging issues like data privacy or supply chain ethics.

Innovation provides the solution to a problem, either by improving a service or by adaptive system. While impact provides the metrics needed to understand level of societal/regional reach and how it will be affected positively.

Establishing a robust reporting foundation within an organization plays a pivotal role in shaping strategic decisions and pinpointing critical areas in products and operations. By leveraging this foundation, decision-makers gain insights into key hotspots within their processes, aiding them in identifying significant levers of innovation. This, in turn, facilitates informed choices when adopting new technologies(innovation) to minimize the overall lifecycle impact of operations, particularly in the manufacturing of products. Such strategic integration of reporting not only fosters sustainability but also ensures that organizations contribute to positive change by effectively managing their environmental, social, and economic impacts.

Emerging trends and innovations in GRI reporting regarding innovation & impact include: -Impact Measurement: Emphasizing the quantification & reporting of actual impacts, beyond activities and outputs. -Leveraging AI, IoT & blockchain for enhanced data collection, analysis, and reporting. -Using digital & interactive formats for more engaging and accessible reports. -Including predictive analytics and scenario planning to forecast future sustainability impacts. -Combining data with storytelling to illustrate impact & innovation in a more relatable way. -Offering customizable digital reports to cater to specific stakeholder interests. -Moving towards real-time sustainability performance updates for immediate insights & action

A fourth GRI trend emphasizes innovation and impact. Innovation involves using new methods to tackle sustainability challenges, while impact focuses on the outcomes on environment, society, and economy. GRI reporting encourages showcasing both through indicators and examples, highlighting your contributions and strategic goals.

Innovation and Impact: The use of new technologies, methods, or approaches to address sustainability challenges and opportunities, such as big data and analytics, and the integration of ESG training for employees to improve reporting quality. Commitment to Learning and Improvement: The ongoing monitoring, evaluation, and review of sustainability performance and progress, using insights and feedback to identify and implement improvements, and adapting sustainability strategies and operations accordingly

Companies are increasingly prioritizing stakeholder inclusivity in their GRI reporting, moving beyond just shareholders to engage a broader range of stakeholders, including local communities, employees, NGOs, and governments. This shift ensures that sustainability initiatives reflect the diverse needs and concerns of all relevant parties. Additionally, human rights due diligence is gaining prominence, particularly in sectors with complex supply chains. Businesses are now reporting more on how they assess and mitigate human rights risks, such as labour conditions and diversity and inclusion practices, to address global supply chain challenges.

Diversity can range from educational background too. Hence the experiences of a non-institution-educated person can also be part of the overall positive contribution to society and organizations as it is in the organic world. Taking in consideration the legal framework that provides the path under the umbrella of jurisprudence for such purposes “acknowledging skills and knowledge empirical or by traditional standards”.

A fifth GRI trend highlights inclusivity and diversity. Inclusivity values stakeholder perspectives, while diversity celebrates varied cultures and identities. Both are crucial for a sustainable, equitable culture. GRI reporting supports this by offering principles and indicators for reporting on inclusivity and diversity policies and practices.

A sixth GRI trend is a commitment to learning and improvement. Organizations should monitor and review their sustainability performance, using insights to enhance their practices. GRI reporting aids this by offering standards and resources for benchmarking and sharing experiences, ensuring reporting drives continuous improvement and innovation.

This trend is a high priority in the constant changing world, and constant improvement of technology. The organizations require to take this very seriously in order to advance into a the new modern processes.

Emerging trends and innovations in GRI reporting for learning & improvement include: -Emphasizing ongoing learning from data & stakeholder feedback to enhance reporting practices. -Collaborating within industries to share insights & best practices in sustainability reporting. -Utilizing big data & analytics to derive deeper insights and inform continuous improvements. -Implementing robust stakeholder feedback systems to refine reporting & performance. -Investing in ESG training for employees to improve understanding & reporting quality. -Regularly updating reporting formats & content to reflect the latest standards & stakeholder expectations. -Using report findings to adapt and improve sustainability strategies &operations.

External assurance is a recommendation but not a GRI requirement, today. Understand that assurance can help stakeholders be more confident in the reliability of the content, so it is a good consideration.

External assurance can also act as mitigation to future litigation risk on greenwashing and be a brand differentiator among competitive peers to demonstrate the company commitment to ESG.

GRI’s closer alignment with EFRAG and ESRS increases the standardisation of reporting capability, which is great, however presents a challenge regarding the greater depth of data required to report upon via CSRD (the reporting directive overlaying the ESRS). Aspects such as biodiversity and your own workforce actions will require more understanding, analysis and data to provide credible reporting. This is all a positive step for sustainability, however you will need to get your plans and resources aligned and engaged to deliver meaningful outcomes.

Blockchain technology offers a way to ensure immutable records in supply chains. This can significantly enhance transparency in GRI reporting, particularly for complex issues like conflict minerals or sustainable sourcing. Imagine using blockchain to track the journey of your raw materials from their origin to your factory, providing verifiable proof of ethical practices.

Digitalization and Interactivity: The shift from static PDF reports to dynamic and interactive online platforms, enabling organizations to present data in more engaging and accessible ways, such as dashboards and infographics. Alignment and Integration: The emphasis on integrating sustainability reporting with financial reporting and aligning it with the organization's long-term goals, ensuring transparency and accountability through stakeholder feedback. Materiality and Stakeholder Engagement: The focus on materiality, where organizations consider the issues that are relevant to their stakeholders and the global community, and engage with them to enhance reporting practices