The latest biodiversity reporting normal: What you need to know

The International Reporting Initiative (GRI), one of many main sustainability reporting normal setters, has printed a revised model of its biodiversity normal : “GRI 101.” It would assist firms reporting via GRI perceive and disclose their biodiversity impacts. 

With the brand new normal, GRI has responded to the rising company curiosity in nature conservation, which has quickly superior following the adoption of the International Biodiversity Framework (GBF) in 2022. 

GRI made “fairly important adjustments and revisions” to its prior biodiversity normal GRI 304, stated Elodie Chêne, senior requirements supervisor on the group. The brand new normal presents worldwide finest practices for halting and reversing biodiversity loss. For instance, it asks firms to report on the direct drivers of biodiversity loss, equivalent to air and water air pollution and the unfold of invasive species. 

A extra stringent method

The brand new necessities will have an effect on firms throughout a spread of sectors, together with meals and agriculture, mining and oil and different industries with massive land and water footprints.

GRI’s requirements outline eight classes that firms with important biodiversity footprints should report on, together with biodiversity insurance policies, commitments and affect administration approaches. Different nature frameworks let firms choose the problems they wish to disclose.

For instance, the Taskforce on Nature-related Monetary Disclosures (TNFD) developed a set of 14 disclosure classes, equivalent to the full space of land disturbed, that firms are really useful however not required to report on. GRI’s extra stringent method may deliver elevated transparency and accountability to the biodiversity house — if firms resolve to report in accordance with it. 

Controversial matters: provide chains and offsets 

GRI 101 incorporates new finest practices for measuring and managing biodiversity loss and requires firms to report immediately on their major drivers. It additionally asks for location-specific impacts and the way they have an effect on communities. 

In accordance with Chêne, three matters stood out as probably the most controversial points within the public session course of throughout which companies, civil society and technical specialists submitted 122 feedback on the usual’s draft:

• Provide chain disclosures: Probably the most important biodiversity impacts are likely to happen in firms’ provide chains, however getting information from suppliers past the primary tier is difficult and site-specific info may be commercially delicate. GRI 101 permits firms to report provide chain impacts at a rustic stage whereas encouraging the disclosure of extra granular location information.  
• Biodiversity offsets: GRI asks firms to report on their offsetting practices to foster a greater understanding of how totally different industries are utilizing them and what finest practices could also be. Firms want to supply info on their offsets’ targets, geographic location, rules and third-party certifications or verifications. 
• Prioritizing key impacts: Reporting on all biodiversity impacts is sort of unimaginable. GRI 101 focuses on probably the most important ones and suggests methods to prioritize. However this doesn’t imply firms can select to not report on some materials matters altogether, as is the case with different frameworks. 

GRI within the broader nature framework panorama

For the previous few years, normal setters and governments have labored to duplicate the reporting infrastructure developed for the local weather disaster to the biodiversity disaster. This work goals to progress quickly to satisfy the GBF’s formidable 2030 targets, equivalent to restoring 30 p.c of the world’s degraded land. The velocity at which new frameworks, insurance policies and instruments are creating has overwhelmed firms.  

GRI didn’t attempt to compete with or duplicate the efforts of different outstanding frameworks, equivalent to TNFD or the Science Based mostly Targets Community (SBTN). As a substitute, GRI collaborated carefully with their groups and tapped into a number of the similar technical specialists to make sure that the frameworks have been aligned and bolstered their distinct roles and targets: “If you might want to set targets, go for SBTN. If you might want to measure your affect, go to TNFD. And if you wish to disclose, go to GRI,” Chêne stated.

To supply additional readability, the UN Atmosphere Programme has printed an evaluation that compares the scope, materiality definition and provide chain protection of probably the most outstanding nature-related evaluation and disclosure frameworks and requirements. 

GRI 101 will formally go into impact Jan. 1, 2026. The transition interval will permit firms to stand up to hurry with the brand new normal, however they’ll undertake it earlier if prepared.