gssbsecretariat@globalreporting.org

Item 01 – GRI Topic Standard Project
for Economic Impact – Proposed
framework for discussion
For GSSB Discussion
Date

31 March 2023

Meeting20 April 2023

Project

GRI Topic Standard Project for Economic Impact

Description

This document presents the background and proposed technical framework for
the GRI Economic disclosures revision. In preparation for the GSSB meeting inApril 2023, we invite the GSSB to review this discussion document and provide
the following:
1)
2)
3)

Observation(s) on the framework proposed.
Recommendation(s) on the priority areas for inclusion.
Recommendation(s) on key stakeholders for engagement.

This document has been prepared by the GRI Standards Division and is made available to observers
at meetings of the Global Sustainability Standards Board (GSSB). It does not represent an official
position of the GSSB. Board positions are set out in the GRI Sustainability Reporting Standards. TheGSSB is the independent standard setting body of GRI. For more information visit
www.globalreporting.org.

© GRI 2023

Contents
1. Background ......................................................................................................................................... 3
2. Input requested from the GSSB .......................................................................................................... 4
3. Technical discussion .......................................................................................................................... 5

Page 2 of 8

11. Background

2The GSSB Work Program 2023-2025 (pending final approval) includes a schedule of priority

3standards for review in 2023. These standards were selected based on stakeholder feedback and4

consideration of national and international developments. The GRI economic disclosures were5

identified for review based primarily on feedback received from public consultation and GSSB

6

member inputs in 2022. The disclosures include but are not limited to GRI 201: Economic

7

Performance, GRI 202: Market Presence, and GRI 203: Indirect Economic Impacts. The feedback

8indicated that disclosures in GRI 201, GRI 202, and GRI 203 are unclear, in certain instances

9outdated, and inconsistently interpreted and would benefit from a thorough content review.

10This revision builds on the project initially proposed in the GSSB Work Program 2017-2019.

11

Furthermore, since the disclosures in GRI 201, GRI 202, and GRI 203 were last updated in 2006 (with12

the publication of the GRI G3 Guidelines), several international developments have been related to13

how organizations should identify, manage, and report on their economic impacts.

14

The UN Guiding Principles on Business and Human Rights1, OECD Guidelines for Multinational

15Enterprises2, and UN Conference on Trade and Development (UNCTAD) 3 set out a clear expectation

16for businesses to take responsibility not only for impacts they cause directly but also those they17

contribute to or are linked to through their business relationships. However, in the context of GRI’s

18

economic disclosures, organizations are expected to report not only on their direct impacts on the19

economy but also on those they are linked to, for example, through their supplier relationships and20local communities.

1 United Nations (UN), ‘Guiding Principles on Business and Human Rights, Implementing the United

Nations “Protect, Respect and Remedy” Framework’, 2011.
2 Organization for Economic Co-operation and Development (OECD), OECD Guidelines forMultinational Enterprises, 2011.
3 United Nations Conference on Trade and Development (UNCTAD), ‘Guidance on Core Indicators for

Sustainability and SDG Impact Reporting’, 2022.

Page 3 of 8

21

2. Input requested from the GSSBIn order to move ahead with the proposed revision of GRI 201: Economic Performance, GRI 202: Market Presence,and GRI 203: Indirect Economic Impacts, there are two distinct areas where the GSSB is requested to provide
inputs:1. The proposed technical framework: The GSSB is requested to submit their observations on the proposed
framework and its content as developed by the GRI Topic Standards Team (see below), including
observations regarding the suitability and relevance of (a) the overarching themes proposed; (b) theindicators and impact channels proposed; (c) gaps in the existing framework and (d) The authoritativeintergovernmental instruments and frameworks referenced.
2. The priority areas for consideration: The GSSB is requested to submit its recommendations on theprioritization of overarching themes, impact channels, and indicators for consideration.
3. Key stakeholders for engagement: The GSSB is requested to submit their recommendations for key
stakeholders for engagement in this project.
4. Expanding the scope of the review: The GSSB is requested to determine whether the scope of thisproject should also consider (in addition to GRI 201, GRI 202, and GRI 203) the related disclosures in GRI
204: Procurement, GRI 205: Anti-Corruption, and GRI 206: Anti-Competitive Behaviour.

Page 4 of 822

3. Technical discussion

23

As noted above, the following inputs are intended to inform further discussion on the proposed24

revision of GRI economic disclosures.

Table 1: Framework for reporting economic impact

ThemeDescription

Goods andEconomic impacts that can be•

Consumer access to goods and services

services

directly attributed to consumption of•

Usage of goods and services

an organization’s goods andImpact channel

services
Distributed

Economic impact of monetary and•

Payments distributed

value

non-monetary flows of value•Payments received

Economic impact of an•

Number of jobs createdorganization's operations on job•

Type of jobs created•Quality of jobs createdinvolving an organization
Job creation

creation

Economic

Impact of an organization's•

Lobbying

governanceactivities and actions on market•

Alignment with local development policy

and economic policy•

Corruption

Economic

Secondary effects of a company's•

Research and development

multiplier

activities that ripple through the•Innovation•

Spending•

Infrastructure investments and services

mechanisms, economic relations,

economysupported

Page 5 of 825

Goods and services

26a. Rationale

27i.

28

Consumption of an organization’s goods and services has a potentially large impact (positiveand negative) on the economy.

29

ii.

The ability of stakeholders to access and use these goods and services, particularly30

disadvantaged groups, to satisfy key needs can have an impact on stakeholder well-being

31

and longer-term productive capacity.

32

b. Impact channels

33i.

Type of goods and services provided.

34

ii.

Pricing of goods and services.

35

iii.

Level of access and usage of goods and services by local market/communities.

36c.

Questions37

i.

Would this theme be better positioned elsewhere? i.e., not specific to economic impact?

38ii.

If retained under the economic impact topic, (a) advise if the proposed impact channels are39

correct and (b) advise if any gaps exist.

40

Distributed value

41

a. Rationale42i.

GRI 201: Economic Performance is one of the most widely reported Topic Standards.

43

ii.

The value generated, received, and distributed can have an impact on the fiscus and44
45
46
47

spending power of stakeholders.
iii.

b. Impact channels
i.

48
49
50

Provides a framework or context to consider other standards (e.g., labor, tax).

The value generated and received (sales revenue, interest income, government subsidies,and transfers)ii.

The value distributed (payments to government and suppliers, worker compensation, greeninvestment, community investment)

Page 6 of 8

51

c.

Questions

52i.

Is the impact on the economy and sustainable development clear enough?

53

ii.

How can the current approach in GRI 201-1 be refined?

54

iii.

Which impact channels should be prioritized?

55

Job creation

56a. Rationale

57i.

58

The creation of inclusive and sustainable jobs can result in direct and indirect impacts on the59

economy.
b. Impact channels

60

i.

Number of jobs created (own operations, along the supply chain).

61

ii.

Location of jobs created.

62

iii.

Nature of jobs created (permanent/temporary roles).

63

iv.

Profile of employees/workers (age, gender, vulnerability status).

64c.

Questions65

i.

Should this be considered part of labor?

66

ii.

What are core indicators or impact channels?

67

iii.

Should we consider workers in addition to employees?

68

iv.

Should benefit plan obligations and other retirement plans still be considered here?

69

Economic governance70

a. Rationale

71

i.

72
73

The creation of inclusive and sustainable jobs can result in direct and indirect impacts on theeconomy.

b. Impact channels

74

i.

Alignment with local development policy.

75

ii.

Lobbying.

Page 7 of 8

76
77
78

iii.

Corruption.

c. Questionsi.

Do existing standards sufficiently cover these impact channels?

79

Economic multiplier80

a. Rationale

81

i.

82
83

An organization can generate indirect and long-term economic impacts through its operations
or activities that affect the broader economy beyond its direct impact.

ii.

This impact is characterized by the ability to generate economic growth and development by

84

spurring investment, creating jobs, and stimulating entrepreneurship and innovation in local

85

communities.

86b. Impact channels

87i.

Size, cost, and duration of each significant infrastructure investment or service supported.

88

ii.

The extent to which different communities or local economies are impacted by theorganization’s infrastructure investments and services supported.

89
90c. Questions

91

i.

Is this better covered as externalities?

92

ii.

How many tiers along the value chain should be considered?

93

iii.

Should indirect job creation be included here?

94

iv.

How should innovation and R&D be reported?

Page 8 of 8