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Universal Standards: What is changing and why?

qué es lo nuevo en estándares universales

In June, an important update was announced to the core of the Global Reporting Initiative (GRI) report that will affect every organization using the GRI Standard. This update will help them report more efficiently their most significant impacts on the economy, environment, and social areas.

Reports that ensure greater transparency

The GRI report will be even more transparent. As explained by Bastian Buck (GRI Chief of Standards), “companies that report need to make a clear commitment to their stakeholders regarding where they are standing.”

Likewise, he noted that “with this development, we seek to ensure high levels of transparency in reports for a wide range of general information requirements and through material issues.”

Attention to human rights

Another point that was modified in the GRI report is focused on human rights, because when you look at the impact a company has on people, “this issue tends to be the most serious”, says Buck.

In this respect, although the impact on people must automatically assume the inclusion of human rights, organizations often overlook them.

This is why the review addresses this concern, always ensuring compliance with the GRI Standards and intergovernmental instruments such as the “United Nations Guiding Principles on Business and Human Rights”.

Materiality reorientation

It is also worth mentioning that the practice that leads companies to select sustainability topics in a “materials matrix” is more related to the importance of business matters compared to the stakeholders.

According to Bastian Buck, this is important because “the report mirrors the impacts and actions of the companies throughout their activities.”

This is why the plan to identify materials issues will now be focused on the most significant impacts of organizations in the areas of economy, environment, and people, including the impacts on human resources.

Governance information

The reports on this topic will be increased. As Bastian also says, many stakeholders are requesting it, including “a clear interest and demand trend from investors towards a more structured governance disclosure.”

The sector´s perspective

Besides the already mentioned topics, we will begin by including the oil and gas sector. On this matter, Bastian clarifies that the Standard per sector will complete and “complement” other GRI Standards, helping companies understand which issues they should consider in their materiality assessment.

It is important to clarify that this is a draft standard and not the final version. The new Universal Standard will be released in 2021.

For more information, check the following official content..

 

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