• Register
Return to: Home > News > Corporate Finance > Using the GRI sustainability reporting framework enhances ESG disclosures quality, research has found

Using the GRI sustainability reporting framework enhances ESG disclosures quality, research has found

Using the GRI sustainability reporting framework enhances the disclosures quality of Environmental, Social and Corporate Governance (ESG) according to a joint research conducted by Governance & Accountability Institute (G&A) and the CSR-Sustainability Monitor (CSR-S Monitor) research team at the Weissman Centre for International Business, Baruch College/CUNY.

G&A and CSR-S Monitor scored the CSR / sustainability reports published by the world’s largest companies to determine if there is a difference between companies following the GRI guidelines and those not doing so.

Of the 572 companies that have been looked at, 481 (84%) used the GRI framework while 91 (16%) did not use it.

G&A and CSR-S Monitor looked at 11 specific contextual elements of the reports published by companies: chair’s / executive message, environment, philanthropy & community involvement, external stakeholder engagement, supply chain, labour relations, governance, anti-corruption, human rights, codes of conduct, and integrity assurance.

Companies using GRI framework consistently scored higher than those not using it for their reporting. The score rating was from 0–100, with 100 being the best.

The overall score for GRI reporter was 45.7% compared to 29.6% of non-GRI. GRI reporters for environmental element scored 64.9% versus 51% for non GRI while for labour relations, the GRI reporter scored 55.8% versus 36.7% for non GRI. For supply chain, anti-corruption and integrity assurance, the score for GRI reporter was 46.6%, 26.4% and 31% respectively versus non GRI reporter which scored 28.2%, 10.4% and 13.3% correspondingly. The largest differential was revealed for human right element where the score for GRI was 45% versus 15% for non-GRI reporter.

Weissman Centre director of research Mert Demir said: “While sustainability reporting has become more mainstream over time, these reports still show limited standardization and considerable variation in content and quality, preventing effective comparisons of their information across time as well as among peers. Though stakeholders often find these reports core to their evaluation of a company, these issues make using them effectively challenging.”

More on the research can be found here.

Top Content

    Accountancy Europe: the winner takes it all

    Jonathan Minter spoke to Olivier Boutellis-Taft, chief executive officer at Accountancy Europe, about how technology could change the industry, and how training needs to keep up to enable the profession to develop

    read more

    Embracing global technology trends

    Accountancy Europe’s Digital Day 2018 found the European accounting profession looking to tackle the challenges presented by new technologies head on. Jonathan Minter reports from the day

    read more

    IMA Conference: automation of the audit

    At the annual conference of the Institute of Management Accountants (IMA) in Indianapolis, Deloitte partner Alex Smith gave a presentation on digital transformation in the profession. Joe Pickard spoke to Smith following the presentation to find out more about his views on the future of audit

    read more

    IMA Conference: technology and the human effect

    The annual conference of the Institute of Management Accountants (IMA) took place in Indianapolis this year. Members of the profession gathered to hear the latest from the institute and other market players, covering some of the challenges and opportunities the profession faces.

    read more

    The Caribbean: a digital paradise

    The ICAC hosted its 36th annual conference in June this year – very much looking to the future following a tough 2017 for the Caribbean. Jonathan Minter spoke with chief executive officer Misha Lobban Clarke

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.