Version 03
Guidance for communicating sustainability

Contents
About CSE...............................................................................1
About GRI...............................................................................1   
1 Foreword...................................................................2   CEO of CSE...................................................................2   CEO of GRI...................................................................3   
2 Introduction.............................................................4   
3 A strong business case...........................................6    CSE Introduces Green Bonds........................................9   
4 An evolving landscape.........................................10

5 Link to Sustainable Development Goals..........14      
6 Purpose of the Guide...........................................18   
7 Principles of best practice on sustainability...21    A. Leadership & Oversight..........................................22    B. Consider Stakeholder Interests................................23    C. Identifying Material Issues......................................23    D. Adopt Relevant Performance Indicators..................25   E. Integrity and Transparency......................................25   F. Proper Communication...........................................25

8 An Introduction to the GRI Standards.............26       Structure of the Standards...........................................26

About
CSE

About
GRI

The Colombo Stock Exchange (CSE) is a catalyst for capitalformation in Sri Lanka and is a market institution licensed under
the Securities and Exchange Commission of Sri Lanka Act No.
19 of 2021 as a Capital Market Infrastructure Provider. CSE
has created a vibrant marketplace for investors and issuers,
supporting value creation for these key market participants.
The exchange has evolved to be a regionally competitive stock
exchange, equipped with cutting edge technology, a growing
investor base and an expanding base of listed companies. As
the licensed stock exchange, the CSE mobilisescapital flows,
including foreign capital flows, contributing extensively to thecreation of a resilient stock market for its stakeholders.

GRI (Global Reporting Initiative) is the independent, internationalorganisation that helps businesses and other organisations takeresponsibility for their impacts, by providing them with theglobal common language to communicate those impacts.
The GRI Secretariat is headquartered in Amsterdam, theNetherlands, and we have a network of seven regional offices
to ensure we support organisations and stakeholders worldwide.
As a catalyst for a sustainable world, we work with businesses,
investors, policymakers, civil society, labour organisations andother experts to develop the GRI Standards and promote theiruse by organisations around the world.
Used by more than 10,000 organisations in over 100 countries, theStandards are advancing the practice of sustainability reporting,and enabling organisations and their stakeholders to take actionthat creates economic, environmental and social benefits foreveryone. As confirmed by 2022 research from KPMG, the GRI
Standards remain the most widely used sustainability reporting
standards globally. https://www.globalreporting.org/news/newscenter/four-in-five-largest-global-companies-report-with-gri/Foreword
Message fromCEO of CSE

Sustainable investing continues to gather momentum as ESG criteria have become mainstream among
financial market participants. The rapid evolution of reporting standards was matched by increasing focus
on the topic by capital market regulators, many of which have mandated sustainability reporting in varying
degrees.
The third version of our guidance document to listed companies on communicating sustainability integrates
perspectives and standards of the Global Reporting Initiative. It provides a high level view of the sustainability
reporting landscape and principles of sustainability reporting. It also seeks to encourage more companies
to commence their sustainability reporting journeys and others to refine their current reporting practices.
As a member of the United Nations Sustainable Stock Exchanges (SSE) initiative, the CSE continues topromote improved ESG disclosure and performance among listed companies. It is encouraging to notethe progress made by Sri Lankan listed companies in preparing sustainability reports on a voluntary basis
over the years. However, more companies need to step up to prepare sustainability reports as an increasing
number of investors, regulators and other stakeholders including customers, increasingly seek to transact
with companies that are responsible and transparent about their business practices. The launch of Green
Bonds by the CSE this year is an example of the opportunities that are open to companies that have asustainability agenda. CSE hopes to expand this to Sustainable Bonds in the future, further expanding theopportunities for these companies.
Global Reporting Initiative has partnered the CSE in promoting sustainability reporting in the country forover a decade, increasing awareness of the need and guiding corporates along their ESG journeys. We areappreciative of their continued support in the preparation of this guidance document which is a timely
initiative.

Rajeeva Bandaranaike
Chief Executive Officer
Colombo Stock Exchange

2    CSE Sustainability Reporting Guide

Message fromCEO of GRI

GRI is pleased to partner with the Colombo Stock Exchange in a timely revision of this guidance
document, Communicating Sustainability, Six Principles for Listed Companies. Focus on sustainability
reporting by corporates has gathered momentum as stakeholder expectations continue to rise as theyseek to comply with increasing regulations and their own sustainability aspirations.
The GRI Standards, first published as a guideline over 25 years ago, have played a critical role inproviding a sound framework for reporting. This is evidenced by the use of the GRI Standards by over
10,000 companies to become the most widely used sustainability reporting standard in the world.
The structure of the GRI Standards support its evolution, supporting expansion of sector requirements
guidance and the continued addition of relevant topics. As a multi-stakeholder standard, developed
following a multi-stakeholder process, the GRI Standards enhance the credibility of sustainability
reports, challenging organisations to report in a way that reflects the full range of their impacts. Thisis vital for stakeholders including investors to understand how a company safeguards human rights or
mitigates climate change.
GRI continues to work with key standard setters to enhance the interoperability of the standards andwill issue guidance to support companies. These developments are complementary and highlight theurgency to move towards a strengthened two-pillar structure for corporate reporting – both financial
and sustainability – with each on an equal footing.

Eelco van der Enden
Chief Executive
GRI

CSE Sustainability Reporting Guide

3

Introduction
Sustainability factors have become a fundamental part of investment decision making with increasingawareness of the impacts of continued industrialisation on our environment and society. Unsustainable
use of energy, land-use change, lifestyles and consumption and production patterns contribute to global
greenhouse gas emissions and global warming. The Intergovernmental Panel on Climate Change1 statesthat human-caused climate change is already affecting many weather and climate extremes in every
region across the globe, leading to widespread adverse impacts, related losses and damages to natureand people. Additionally, consumption and production patterns also continue to exert pressure on theearth’s resources, particularly those which are non-renewable.
While headlines are increasingly dominated by the consequences of climate change, it is important
to note that there are many opportunities to provide solutions to these existential threats, supportinga transition to a more sustainable economy. Governments, corporates and civil society and otheractors all have a key role to play in making the transition a reality. Formulation and implementationof conducive policies, including regulation and taxation coupled with investments in technology andinfrastructure and capacity building is vital and policymakers are stepping up to the challenge acrossthe world. Corporates are key to a sustainable future as they commit to reduce their impacts throughinnovation, responsible production and consumption, investments in people and technology. The
commercialisation of renewable energy is an example of opportunities that are now reaping rewards
for investors. We have also seen quantum leaps in energy, water and resource efficient technologies
that have supported profitability of entities across a wide range of sectors, enhancing the sustainabilityof investor returns and thereby, contributing to the resilience of capital markets.

1

4

IPCC, 2023: Summary for Policymakers. In: Climate Change 2023: Synthesis Report. Contributionof Working Groups I, II and III to the Sixth Assessment Report of the Intergovernmental Panel on
Climate Change [Core Writing Team, H. Lee and J. Romero (eds.)]. IPCC, Geneva, Switzerland,
pp. 1-34, doi: 10.59327/IPCC/AR6-9789291691647.001    CSE Sustainability Reporting Guide

CSE Sustainability Reporting Guide5

A strongbusiness caseA strong focus on sustainability supports
resilience of the business and efficient
allocation of finite resources.

A strong business case
Identifying key ESG risks in the short, medium and long term is critical to investors who use thisinformation to determine how their capital is allocated among alternative investments. With many
investors choosing to look beyond financial returns to incorporate Environment, Social and Governance(ESG) criteria, asset managers are creating portfolios that cater to their needs. Asset managers are also
becoming more active in requiring their investee companies to disclose more ESG information in theirreports to monitor progress on key ESG metrics. Capital markets regulators have also increased theirscrutiny to develop more robust capital markets and have supported sustainability reporting using a
range of tools including mandatory ESG reporting in some markets.

84%

17%

60%

US$

Market capitalisation of companies
disclosing sustainability-related
information as at 31 December 20212

2,700 Companies obtained independent
third-party assurance of 2021
sustainability-related information

2

87,926 companies reporting sustainability-related
information out of 42,019 companies globally
accounted for the 84% market capitalisation

18 Bn

Sustainable funds attracted US$ 18 Bn in new
inflows in 2Q 2023 while conventional funds
experienced an outflow of US$ 19 Bn

OECD (2023), OECD Corporate Governance Factbook 2023, OECD Publishing, Paris, 		https://www.oecd-ilibrary.org/finance-and-investment/oecd-corporate-governance-factbook2023_6d912314-en    CSE Sustainability Reporting Guide

CSE Introduces Green Bonds
The Colombo Stock Exchange (CSE) introduced the listing and trading of Green Bonds in April
2023, facilitating Sri Lankan corporates to raise capital for use exclusively in green projects thatgenerate climate or other environmental benefits. These include investments in renewable energy,
energy efficiency, sustainable waste management, sustainable land use (forestry and agriculture),
biodiversity, clean transportation, and clean water. It also fosters greater transparency andaccountability in the use of proceeds from the Green Bond, while also supporting the country’s
transition to a low-carbon economy.
The use of proceeds from the Green Bond should be aligned with the Green Bond Principles,
which are accepted by the CSE. The accepted Green Bond Principles of the CSE are the Green
Bond Principles by the International Capital Markets Association (ICMA), the European Green
Bond Standards (EUGBS), and the Climate Bonds Initiative Standards (CBI Standards).
Issuers of can access a broader pool of capital, including access to a foreign investor base who
has an interest in investing in green projects. It also can play a positive role, in raising awarenessand building expertise among investors on issues relating to the environment, thus, fostering
greater transparency in the use of proceeds from the Bond. It also presents a new opportunity
for environmentally conscious investors and support management of their financed emissions if
the green bond pertains to investments that reduce the carbon footprint. Green Bonds can also
facilitate the establishment of public-private partnerships that might accelerate the pace of green
investment and lead to the adoption of new technologies and also contribute to a sustainableeconomy. Based on the demand for bonds like Green Bonds, the CSE proposes to introduce Blue
Bonds and Social and Sustainability Bonds in the future.

All these developments are rooted in credible sustainability reporting which is a pre-requisite toestablish the credibility of the issuers and the stock exchange.

CSE Sustainability Reporting Guide9

An evolving
landscapeEvolution of sustainability reporting
standards accelerated over the recent
years in response to investor andother stakeholder concerns.

An evolving landscapeSustainability/ESG Reporting has evolved significantly over the years as the need for credible, timely
and comparable information became more apparent and urgent. A number of reporting standards haveemerged and the most prominent are given below. These typically focus on environmental, social andgovernance pillars, strengthening the resilience of businesses while also supporting socially conscious
investing and impact management.
SectionCoverage & Structure

GRI Standards

Comprises

Additional Information

GRI is the most widely used standard with
78% of the world’s 250 largest companies and• 3 Universal Standards
68% of the top 100 companies in 58 countries• 3 Sector Standards(a total of 5,800 companies) using the GRI• 32 Topic Standards
Standards as affirmed by the KPMG Survey
3
The GRI Standards enable organisations of Sustainability Reporting . These standards
developed through a transparent and multito publicly disclose their moststakeholder process have evolved over 25 years
significant impacts on the economy,
to its current form.
environment, and people, including
impacts on their human rights, and how
The standards can be downloaded using thisthey manage these impacts.
link: GRI Sustainability Reporting Standards
GRI has announced its intention to issue
40 Sector Standards of which 3 havealready been issued for oil and gas, coal,and agriculture, aquaculture and fishing.

IFRS Sustainability Two standards were issued in June 2023 These standards are issued by the International
Disclosure
with an effective date of 1st January 2024: Sustainability Standards Board which is partof the IFRS Foundation. The standards ask
Standards• IFRS S1: General Requirements forfor disclosure of material information about
Disclosure of Sustainability-related
sustainability-related risks and opportunities toFinancial Information
meet investor information needs.
• IFRS S2: Climate-related Disclosures
They apply the TCFD structure andinclude sources of guidance such as the
SASB Standards, the CDSB Framework
Application Guidance, the GRI
Standards and the ESRS which are set
out below.

The Institute of Chartered Accountants of Sri
Lanka has proposed that the IFRS Sustainability
Disclosure Standards are mandated for the top
100 public listed companies in Sri Lanka witheffect from 1st January 2024 with a roll out
thereafter to other companies.
The standards can be downloaded using thislink: IFRS Sustainability Disclosure Standards

12    CSE Sustainability Reporting Guide

Section

Coverage & Structure

Additional Information

European
Sustainability
Reporting Standards(ESRS)The European Sustainability ReportingStandards were adopted by the European
Commission in July 2023 with an effective
date of 1st January 2024. It comprises:

The standards are also relevant to companies
outside the EU if earnings from the EU
exceed Euros 150 Mn. It is also anticipatedthat compliance by customers in the EU will
necessitate additional reporting by Sri Lankan
exporters to the EU stemming from thesestandards.

• 2 cross-cutting standards• 10 topical standards:• 5 environmental standards• 4 social standards• 1 governance standard
Taskforce on
Climate-Related
Financial
Disclosures

Comprises recommendations on
Governance, Strategy, Risk Management
and Metrics focused on climate-relatedrisks, opportunities and financial impacts.

Integrated Reporting Integrated Reporting focuses on
Frameworkcommunicating concisely the ability of anorganisation to create value in the short,medium and long term for investors. Itemphasises the importance of integrated
thinking within the organisation throughan understanding of the capitals and theirinterdependencies within the context of its
strategy and operating environment to drive
efficient allocation of resources.
SASB Standards

There are 77 Industry Standards which
identify the subset for ESG issues most
relevant to their financial performance.

Carbon DisclosureStandards Board

The CDSB Framework provided guidance
for reporting environmental and social
information including climate change inannual reports.

3

The standards can be downloaded using this link:
European Sustainability Reporting Standards
This was an initiative of the Financial Stability
Board which has now asked the IFRS Foundation
to take over the monitoring of the progress oncompanies’ climate-related disclosures as the
IFRS Sustainability Disclosure Standards fully
incorporate the recommendations of the TCFD.
These three standard setting bodies wereconsolidated when the International Sustainability
Standards Board was formed. These standards
have informed the IFRS Sustainability DisclosureStandards and the SASB Standards and CDSB
Framework Application Guidance (for water andbiodiversity) are included as sources of guidance.
Preparers are also encouraged to continue to use
the Integrated Reporting Framework in preparing
their reports by the Chairs of the ISSB and theInternational Accounting Standards Board (IASB).

Big shifts, small steps (https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2023/04/big-shifts-smallsteps.pdf)

CSE Sustainability Reporting Guide

13

Link to Sustainable
Development Goals
GRI standards are clearly mapped to the
Sustainable Development Goals to support
monitoring of progress towards the goals.

Link to Sustainable
Development Goals
The world leaders committed to the achievement of the 17 Sustainable Development Goals (SDGs) by
2030 in 2015. Halfway through the timeline set, the Global Sustainable Development Report 20234 hasa clear call for more effort, investment, and systemic change to get the goals back on track. The KPMG
Survey of Sustainability Reporting 20225 also draws attention to the need to improve the reportingon SDGs by corporates as there is evidence of embedding ESG across the countries surveyed. It also
highlighted the need for reporting both positive and negative impacts as the majority of the companies
were reporting only the positive impacts.

“The SDGs have fundamentally changed thegame. They are the closest thing the world has
to a strategy”.

Dr Jake Reynolds, Cambridge Institute for
Sustainability Leadership

The Global Reporting Initiative (GRI) has published a resource to assist corporates navigate thereporting of SDGs with clear linkages to the GRI Standards in its publication Linking the SDGs and the
GRI Standards6. The guide assists corporates to disclose their impact and contributions to the SDGs
through the GRI Standards.
Aligning corporate strategy with SDGs facilitates building resilience businesses as it measures the
economic, environmental and social impacts of the organisation, addressing several concerns of
key stakeholders. It also supports improved risk management and efficient allocation of resources tothe most pressing issues along the value chain through the valuable insights provided by a broader
range of metrics. Many corporates have improved profitability from reduced wastage, improved
productivity and reduced emissions through SDG aligned strategies. Corporates have also identified
new opportunities for growth through alignment with SDGs, driving innovation in products, processes
and services, catering to increasingly environmentally conscious consumer profile.
4

https://sdgs.un.org/sites/default/files/2023-09/FINAL%20GSDR%202023-Digital%20-110923_1.pdf

5

https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2023/04/big-shifts-small-steps.pdf

6

Business Reporting on the SDGs - An Analysis of the Goals and targets: 2022

16    CSE Sustainability Reporting Guide

The SDGs are becoming increasingly important also for investors, as they are ‘an articulation of theworld’s most pressing environmental, social and economic issues and, as such, act as a definitive listof the material ESG (environmental, social and governance) perspectives that should be taken into
account as part of an investor’s fiduciary duty.
Corporates who align their strategy cultivate deeper insights into the trends that shape their businessenvironment and differentiate themselves in the market place with relevant solutions, products andservices that are sustainable.
7

See The SDG Investment Case, download (https://www.unpri.org/download?ac=5909)

CSE Sustainability Reporting Guide

17

Purpose of the
Guide
The guide seeks to support corporates in
preparing their sustainability reports.

Purpose of the Guide
This guide seeks to assist companies listed in the Colombo Stock Exchange prepare concise, complete,credible and comparable sustainability reports that meet the needs of investors and other legitimate
stakeholders. It sets out six principles of best practice to support the ESG journey of corporates andprovides a concise guide to sustainability reporting using the GRI Standards. As the GRI Standards area connecting point to other standards with high levels of interoperability, it is an appropriate anchor
throughout a corporate’s sustainability reporting journey.
Preparers are advised to plan their Sustainability Reporting journey at the beginning of the year or
as early as possible. This allows time for preparers to address gaps in policy frameworks and put inplace sustainability information gathering processes and sustainability reporting processes. These are
pre-requisites for the preparation of a credible sustainability report. Preparers are also encouraged
to obtain external assurance on their sustainability reports to enhance the credibility of their reports.
Preparers are expected to move to target setting for relevant metrics once a baseline is established todetermine progress in managing impacts.
It is important to note that the objective of this guide is not to provide a mandatory listing requirement,
but specific guidance on the information that companies should consider and disclose under ESG issues.

20    CSE Sustainability Reporting Guide

Principles of best practiceon sustainability
The principles set out below encapsulate the essence of the GRI Standards and other sustainability
reporting standards. References are provided to the GRI Universal Standards for those who wish togain further insights.

Leadership & OversightA

The role of the Board isvital to achievement ofsustainability goals.

Consider stakeholder interests
ESG information disclosed inreport must be relevant anduseful to stakeholders.

B
Identifying material issues

C

Adopt a process to identify andprioritise material issues to be
included in the report.

Performance indicators
Adopt relevant performanceindicators that are widely
accepted and relevant to thestakeholders

D
E

Accessibility of report
Make a big impact withprofessional slides, charts,
infographics and more.

CSE Sustainability Reporting Guide

Integrity and transparency
Provide a balanced narrativeand information regarding
the standards, definitions andassumptions usedF

21

Principles of best practice on sustainability

A. Leadership & Oversight
The Board of directors plays a leading role in integrating the management of the organisation’s impacts
on the economy, environment, and people, into the organisation’s governance mechanisms, strategy,
risk management and operations.
1. Governance structure and composition – A committee of theBoard should be appointed with responsibility for decision
making on and overseeing the management of the organisation’s
impacts on the economy, environment, and people. GRI 2-9
2. Skills and competencies – Ensure availability of necessary skills
and competencies within the Board to oversee sustainability
strategies relating to sustainability related risks and opportunities.
Relevant criteria must be included in the nomination andselection of directors and can also be addressed through skill
development initiatives.
GRI 2-9 GRI 2-10, GRI 2-17
3. Define the role of the Board in managing impacts – Formulate
and formally adopt Terms of Reference, mandates, roledescriptions and policies relating to development of strategies,
risk management, setting goals and monitoring the same. The
policies must also address how the Board/Board Committee
will engage with stakeholders and considers their concerns inmanaging and reporting the impacts of the organisation.

CSE Rules on Corporate
Governance
The recently revised listing
rules of the CSE also requires
the Board to formulate andpublish on the website thepolicy on Environmental,
Social, Governance
Sustainability. Sustainability
standards require thefollowing disclosures insustainability reports which
also serve to highlight therole that the Board needs
to play in integrating
sustainability within theentities they govern.

GRI 2-12, GRI 2-23
4. Delegate responsibility – The Board should delegate responsibility
for sustainability reporting and managing impacts to a senior
executive or committee and set in place processes for reportingback to the Board/Board Committee with a defined frequency. A
cross functional team is necessary to ensure that sustainability
matters are addressed in a holistic manner including the
preparation of the report which requires the cooperation ofmany operational departments.
GRI 2-13

22    CSE Sustainability Reporting Guide

5. Review and approve sustainability report – The Board/Board Committee should review thesustainability report including the material topics. GRI 2-14

B. Consider Stakeholder Interests
ESG reporting caters for the needs of many stakeholders withdiffering requirements and expectations in terms of topics, as wellas the format and granularity of data. While all stakeholders canbenefit from ESG information, different stakeholders can havedistinct information needs due to increased regulatory requirements
and their own ESG goals and targets. ESG information also plays
an increasingly important role in access to overseas markets andoperational licenses and these should be considered in formulating
strategies and determining metrics for reporting. It is noteworthy
that investors are increasingly turning to ESG-based investment
instruments which also require specific information disclosures,
enabling them to price and manage the risk of their investments.
Stakeholder information requirements can be identified through aholistic stakeholder engagement approach which is undertaken as
part of the entity’s ongoing activities.

Stakeholders who
ESG informationwant• Investors• Institutional investors• Other investors• Banks, insurers and otherfinancial institutions• Customers• Government including

regulators• Communities• Non-governmentalorganisations

GRI 2-29

C. Identifying Material Issues
An organisation is faced with a wide range of ESG topics on which it can report and therefore it isimportant to identify which topics are sufficiently important for inclusion in the sustainability report.
Additionally, not all material topics are of equal importance, and the emphasis within a report is
expected to reflect their relative priority. The degree to which each indicator is relevant will vary
greatly among companies, and the materiality of each topic should be determined by the board andmanagement of the company itself, considering the needs of their key stakeholders.

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23

Principles of best practice on sustainability

Two Complementary Approaches to Materiality
The International Accounting Standards Board (IASB) defines information as material if “omitting, misstating, or
obscuring that information could reasonably be expected to influence decisions that primary users of general
purpose financial reports make on the basis of those reports, which include financial statements and sustainabilityrelated financial disclosures and which provide information about a specific reporting entity.” 8 For example,
for climate, this means reporting material information about climate-related risks and opportunities that could
reasonably be expected to affect the entity’s prospects. This perspective is typically of most interest to investors.
GRI defines material topics as those that represent the organisation’s most significant impacts on the economy,
environment, and people, including impacts on their human rights. For example, a growing number of stakeholders
such as investors, governments, and customers also need to know about the climate impacts of companies inorder to better understand and measure the sustainability and climate impacts of their investment portfolios,
country and supply chain respectively.

A process to determine material topics is set out below:

Identify and assess impacts on an ongoing basis
Engage with relevant
stakeholders and experts

8

24

GRI 3: Material Topics
Determine material topics for reporting
Test the material topics
with experts andinformation users

1

2

3

4

Understand theorganisation’scontext

Identify actualand potential
impacts

Assess thesignifcance of
the impacts

Prioritise themost signifcant
impacts forreporting

Use the Sector
Standards tounderstand thesectors’ context

Consider the
topics and impacts
described in the
Sector Standards

Material topics

Test the material
topics against the
topics in the Sector
Standards

IFRS S1: General Requirements for Disclosure of Sustainability-related Financial Information    CSE Sustainability Reporting Guide

D. Adopt Relevant Performance Indicators
Once a company has established which ESG topics to report on, it can begin to disclose specificperformance indicators to measure and assess progress. These indicators may be generic, industryspecific or company-specific. It is also recommended that companies use widely accepted indicatorsdeveloped via a credible national or international process. GRI has 3 Universal Standards and 32 Topic
Standards for corporate sustainability reporting with detailed guidance on their application. GRI has
also developed 3 Sector Standards to guide Oil & Gas, Coal, and Agriculture, Aquaculture and Fishingsectors and has a programme to issue up to 40 Sector Standards. The GRI Standards can be downloaded
for free from the website https://www.globalreporting.org/standards/download-the-standards/

E. Integrity and Transparency
The absence of a generally accepted accounting standards for measuring and presenting environmental,social and governance metrics creates challenges for investors in interpreting performance. Companies
should describe to investors any standards that they have applied in the preparation of key ESG
metrics. This should be supplemented with details of key definitions and assumptions used in thecalculation of metrics where an external standard does not exist or has not been applied. To facilitateease of use by investors, it is preferable that a brief ‘basis of preparation’ explanation or document ismade available either within the company’s report itself or on its website.
It is also important to provide a balanced view of the organisation’s impacts. The KPMG Survey in 2022
observed that few companies report on the negative impacts on the SDGs and it is an oft-expressedcomment of users that companies that both positive and negative impacts should be reported for areport to be considered credible.

F. Proper Communication
Companies use various communication channels including integrated reports, standalone sustainability
reports, websites or any other publications to disclose relevant, comparable and timely information on
ESG matters. The right disclosure channels ensure investors receive relevant, easily accessible, comparable
and timely information. It is advantageous for companies to be familiar with the preferred ESG information
sources of its key stakeholders, and to update these with timely and accurate news about their performance.
Advances in technology make it possible to deploy Artificial Intelligence (AI) tools to seek and aggregate
sustainability information to create a global baseline for key metrics, particularly vital information suchas Scope 1, 2 and 3 emissions. Moving forward, organisations are likely to be requested to tag theinformation to facilitate aggregation using AI tools.

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25

An Introduction to the
GRI Standards
The GRI Standards can be used by businesses of all sizes to report on their impacts in a credible manner
which is comparable over time and in relation to other organisations. Its multi-stakeholder approach,focus on impact reporting and interoperability with other standards makes it a logical basis for supporting
sustainability agendas of corporates. As it is a well-developed and comprehensive suite of standards, it
provides a sound blueprint for companies starting on their sustainability reporting journeys and remains
relevant throughout their journey supported by the interoperability with other standards. The use of the
GRI Standards by over 10,000 companies in 100+ countries for more than 25 years is a testimony to
its relevance to management, investors and other stakeholders. The GRI Standards continue to evolve,
addressing the urgent economic, environmental, and social issues of our times.

Structure of the GRI Standards
The GRI Standards are a modular system comprising three series of Standards as set out below.
Figure 1. GRI Standards: Universal, Sector and Topic Standards

GRI Standards

Universal Standards

Sector Standards

Topic Standards

Requirements andprinciples for using
the GRI Standards
GRI 1

GRI 11

GRI 12

GRI 13

GRI 201

GRI 403

GRI 305

GRI 14

GRI 15

GRI 16

GRI 415

GRI 303

GRI 202

GRI 17

GRI 18

GRI 304

GRI 205

Disclosures about
the reportingorganisation
GRI 2

GRI 3

Disclosures andguidance about
the organisation’smaterial topics

Apply all three
Universal Standards toyour reporting26

Use the Sector Standards
that apply to yoursectors

Select Topic Standards toreport specific information
on your material topics    CSE Sustainability Reporting Guide

There are 3 Universal Standards, 3 Sector Standards and 32 Topic Standards in issue as at end
September 2023. GRI has a work programme to issue 40 Sector Standards providing guidance topreparers on the topics that are most likely to be material to their sectors. Sector Standards have been
issued for Oil & Gas, Coal, and Agriculture, Aquaculture and Fishing while projects have commenced
for Mining, Financial Services and Textiles and Apparel. Users are encouraged to 			visit https://www.globalreporting.org/standards/sector-program/ to check the current status of Sector
Standards as this is an evolving area.
The Topic Standards issued as at 30th September 2023 are listed below:
Economic Topics• GRI 201: Economic
Performance 2016

Environmental Topics• GRI 301: Materials 2016

• GRI 302: Energy 2016
• GRI 202: Market Presence
2016• GRI 303: Water and• GRI 203: Indirect
Economic Impacts 2016
• GRI 204: Procurement
Practices 2016
• GRI 205: Anti-corruption
2016• GRI 206: Anti-competitive
Behavior 2016
• GRI 207: Tax 2019

Effluents 2018

Social Topics• GRI 401: Employment
2016• GRI 411: Rights ofIndigenous Peoples 2016

• GRI 402: Labour/
Management Relations
2016• GRI 413: Local
Communities 2016

• GRI 304: Biodiversity
2016• GRI 403: Occupational
Health and Safety 2018

• GRI 305: Emissions 2016

• GRI 404: Training and
Education 2016

• GRI 306: Effluents andWaste 2016
• GRI 306: Waste 2020
• GRI 308: Supplier
Environmental
Assessment 2016

• GRI 405: Diversity andEqual Opportunity 2016
• GRI 406: Nondiscrimination 2016
• GRI 407: Freedomof Association andCollective Bargaining
2016• GRI 414: Supplier Social
Assessment 2016
• GRI 415: Public Policy
2016• GRI 416: Customer
Health and Safety 2016
• GRI 417: Marketing andLabelling 2016
• GRI 418: Customer
Privacy 2016

• GRI 408: Child Labour
2016• GRI 409: Forced orCompulsory Labour 2016
• GRI 410: Security
Practices 2016

The GRI Standards can be downloaded from the GRI website GRI - Download the Standards
https://www.globalreporting.org/standards/download-the-standards/

CSE Sustainability Reporting Guide

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An Introduction to the GRI Standards

Each GRI Standard begins with a description of how it should be used and contains the following.
• Disclosures - provide a structure for reporting information about the organisation and its impacts.
• Requirements - list the information an organisation must report or instructions it must comply withto report in accordance with the GRI Standards.
• Recommendations – indicate that certain information, or a particular course of action, is encouraged
but not required.
• Guidance provides background information, explanations and examples to help better understandthe requirements.
Recognise the multi-stakeholder approach
Impact reporting is important
GRI Standards are the starting point to address these two points. Connect GRI to the IFRS Sustainability
Standards.

28    CSE Sustainability Reporting Guide

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