Revolutionizing Climate Reporting: How GRI is Transforming Emissions Accountability

The Global Reporting Initiative (GRI) has introduced new standards, GRI 102: Climate Change and GRI 103: Energy. These updates urge companies to go beyond just reporting emissions. They emphasize climate justice, energy transition, and real-world impacts.

“Climate change is a deeply human issue, as much as it is an environmental one,” said GRI CEO Robin Hodess. “These new standards uniquely blend these dimensions together.”

Key areas of focus include:

• Disclosure of transition plans based on scientific evidence.
• Transparency on fossil fuel phase-out timelines.
• Assessing impacts on workers and communities during energy transitions.
• Scrutiny of carbon credits and greenhouse gas removals.

GRI 103 highlights energy reporting that includes:

• Using renewable sources.
• Improving energy efficiency and reduction.
• Examining broader energy transition impacts on society and the environment.

“GRI 102 and 103 will enable stakeholders to make informed decisions driven by transparency in climate and energy impact,” stated Hodess.

To help organizations adopt these standards smoothly, GRI is ensuring interoperability with major frameworks, including:

• IFRS S2 for emissions.
• EFRAG’s ESRS for compatibility with the EU’s CSRD.
• Setting climate targets aligned with the Science-Based Targets initiative (SBTi).

“We are working with GRI to improve the efficiency of reporting through our standards,” noted Sue Lloyd, ISSB Vice Chair.

Additionally, the GHG Protocol’s Scope 2 Technical Working Group is rethinking how companies report their electricity-related emissions. Current rules allow companies to claim renewable energy usage based on certificates, even if the energy wasn’t actually used for their operations. This creates a significant disconnect.

The proposed updates will introduce:

1. Matching the reporting of electricity emissions to when and where power is consumed.
2. A new impact-based metric illustrating how much fossil fuel generation is offset by clean energy.

Considerations for these changes include allowing existing renewable contracts and using estimated data with standard hourly profiles. Small electricity users may qualify for exemptions.

“The Marginal Emissions Impact metric allows companies to showcase their climate benefits, even if some conditions aren’t fully met,” said an expert involved with the guidelines.

Looking ahead, some important dates are set for the implementation of these changes:

• 2025: GRI 102 and 103 become effective.
• Late 2025: Public consultation for Scope 2 begins.
• Post-2027: Final revisions for Scope 2 are published.

“By enabling organizations to disclose their climate impacts clearly, GRI 102 and 103 are pivotal for advancing a cohesive global climate reporting framework,” explained Carol Adams, GSSB Chair.

In summary, the latest GRI standards and upcoming Scope 2 modifications signify a shift towards genuine climate accountability. Companies are now expected to disclose transparent information about how they operate and the broader effects on society.

As climate expectations evolve, the call for transparency grows louder. Businesses that align with these new standards won’t just mitigate the risk of being labeled as greenwashers; they will actively contribute to shaping a more honest and inclusive path toward a net-zero future.

For more insights on climate reporting, check out the GRI’s official overview here.

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business,energy,Environment,Sustainability