The GRI framework aims to enable third parties to assess the environmental impact of a company’s activities and its supply chain. Standardized environmental reporting guidelines are included in the GRI set of protocols. Performance indicators (PIs) include criteria for energy, biodiversity and emissions. There are 30 environmental indicators from EN1 (materials used by weight) to EN30 (total environmental expenditure by type of investment).
ESG Reporting aims to standardize and quantify the environmental, social and administrative costs and benefits adequately derived from the activities of the reporting companies. Examples of reporting measures to be applied include quantified CO2 emissions results, working and payment conditions, financial transparency and the like.
To assess the social impact created by the reporting organization, GRI standards have been developed according to international working practices and environmental impact by conducting an independent audit. ISO 14010, ISO 14011, ISO 14012 and ISO 26000 set the standard for environmental impact assessment, while OHSAS 18001 sets out a health and safety risk management system. For example, the eight core ILO conventions outline specific groups or populations that require special attention: women, children, migrant workers and their families, persons belonging to national or ethnic, linguistic and religious minorities, indigenous peoples and people with disabilities. In order to circumvent greenwashing or falsified reporting, a financial institution may conduct an independent audit of the investee or enter into a dialogue with the company’s top management.