Which reporting standard is widely used for sustainability disclosures?

The Global Reporting Initiative (GRI) is widely recognized as a leading framework for sustainability disclosures. It provides guidelines that help organizations report on their economic, environmental, and social impacts in a consistent and transparent manner. The GRI standards encourage businesses to disclose a wide range of sustainability metrics that contribute to a better understanding of their sustainability performance and impact. This framework is designed to meet the needs of a variety of stakeholders, including investors, customers, and the public, thus promoting accountability and encouraging sustainable business practices.

In contrast, while International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP) are established frameworks for financial reporting, they do not focus on sustainability disclosures specifically. Standardized Accounting Principles (SAP) is not a recognized framework comparable to the GRI, and thus does not hold the same significance in the realm of sustainability reporting. The GRI's emphasis on broad sustainability metrics and stakeholder engagement sets it apart, making it the preferred choice for organizations focused on transparent sustainability practices.