Updated GRI standards: what are the implications for materiality?

New sustainability reporting standards will require organizations to consider the severity and likelihood of the impact of their business activities.

Last October, the Global Reporting Initiative (GRI) announced the biggest update of its standards since 2016. Beyond legal requirements, the GRI has been identified as one of the most comprehensive and internationally recognized sustainability standards setters for corporate reporting. Scheduled to be applicable by 2023, these changes require companies to increase their level of transparency and to dedicate further resources to non-financial reporting. One of the key updates is the introduction of sector standards, providing additional guidelines for the comparability of companies from the same industries. Another important change in the GRI Universal Standards is the revised approach to how organizations should conduct their materiality assessment. This article focuses on the proposed changes, and what it means for…