When businesses begin researching ESG reporting, the first name that almost always comes to mind is GRI. Many international clients, when submitting requests, explicitly state that they expect a report prepared according to GRI standards. However, many businesses still understand GRI simply as a form to fill out. In reality, GRI is a standardized system with its own principles, structure, and disclosure requirements. This article explains what a GRI-based sustainability report actually is and how Vietnamese businesses should approach it.
What is a GRI-based sustainability report?
A GRI sustainability report is prepared using the GRI Standards issued by the Global Reporting Initiative. It discloses an organization’s significant impacts on the economy, environment, and people. It also explains how the organization manages those impacts.
The key concept here is “impact.” GRI focuses on how an organization’s activities affect the economy, environment, and people. It also requires the organization to explain how these impacts are managed.
This approach focuses on the organization’s impacts on the outside world. It differs from investor-focused reporting frameworks that consider sustainability-related risks and opportunities affecting the organization.
Therefore, a GRI sustainability report should present both positive and negative impacts. It should not simply highlight the organization’s achievements during the reporting period.
What problem was GRI created to solve?
Before the advent of GRI, each company independently published sustainability information. Companies often selected indicators that benefited them while ignoring those that were unfavorable.
As a result, readers could not easily compare companies within the same industry. Reports also gradually lost their value as a reference.
GRI was created to establish a common language for sustainability reporting. Companies could use consistent approaches to understand and calculate the same indicators. Similar information could also be disclosed with a comparable level of detail.
This allows international clients to compare reports from Vietnamese suppliers with those from other countries. It makes sustainability information easier to evaluate across different businesses and markets.
This is also why GRI has become a widely used sustainability reporting framework. It is a familiar starting point for businesses beginning their sustainability reporting journey.
Structure of the GRI Standards
The GRI Standards are organized into three layers.
The first layer is Universal Standards, applicable to all businesses. This layer comprises GRI 1, GRI 2, and GRI 3. GRI 1 sets out fundamental principles. GRI 2 requires the disclosure of general information about organization and governance. GRI 3 guides the identification and management of critical topics.
The second layer is Sector Standards, specific to each industry with a clear impact. Standards have been issued for oil and gas, coal, agriculture and fisheries, and mining. The mining industry standard applies to reporting periods beginning in early 2026.
The third layer is Topic Standards, a collection of standards based on specific topics. These topics include energy, water, emissions, waste, employment, occupational safety, and anti-corruption. Businesses do not use all Topic Standards. Instead, they select the topics they have identified as critical to them.
GRI’s principles of report quality
GRI sets out several principles that businesses must follow when preparing reports. These principles help distinguish serious reports from promotional materials.
The principle of accuracy requires information to be detailed enough for readers to assess the impact. The principle of balance requires presenting both positive and negative aspects. Information should not be selected or presented in a biased way.
The principle of clarity requires information to be easily understood by the target audience. The principle of comparability requires consistent data across reporting periods. This allows readers to identify and track trends over time.
The principle of completeness requires the report to cover activities with significant impacts. The principle of timeliness is linked to consistent and periodic publication.
Finally, the principle of verifiability requires information to be supported by appropriate records. These records allow third parties to review and verify the information when needed.
Two ways of publishing according to GRI
GRI allows businesses to choose between two ways of using the standards.
The first is reporting in accordance with GRI Standards, meaning full compliance. Businesses must meet all mandatory requirements. They must disclose the required content under GRI 2. They also need to identify material topics according to GRI 3. Relevant disclosures for material topics must then be reported. Businesses must also provide explanations for any permitted omissions.
The second is reporting with reference to GRI Standards. In this case, businesses use selected GRI disclosures that are appropriate to their existing data capabilities. They must also clearly state this approach in the report.
For Vietnamese businesses reporting for the first time, the reference approach may be a practical starting point. Businesses can gradually improve their data systems and expand the scope of reporting over time.
How does a GRI report differ from a self-prepared ESG report?
Many businesses have a document called an ESG report. However, it may actually be a report compiled freely by the business.
The biggest difference lies in the reporting process. A self-prepared report allows businesses to choose what they want to disclose. In contrast, a GRI report requires businesses to identify their material topics. They must then disclose relevant information based on the results. This may include unfavorable information.
A second difference is the ability to compare data. GRI reports include a content index that allows readers to locate relevant disclosures. Self-prepared reports often lack this type of tool.
A third difference is market acceptance. International clients or banks may request sustainability information from businesses. A report prepared according to an accepted framework can make the information easier to review. It can also reduce the need for additional explanations.
How are Vietnamese businesses applying GRI?
In Vietnam, GRI is commonly used by listed companies and export-oriented businesses. This includes businesses exporting to Europe, Japan, and South Korea.
For public companies, annual reports may include environmental and social information under securities disclosure regulations. Businesses can use the GRI framework to organize and present this information. This approach can support domestic reporting while also providing useful information for international partners.
For unlisted manufacturing companies, GRI is often used as a framework for organizing sustainability data. This data can also help businesses respond to information requests from buyers.
In practice, the main challenge is often not understanding the standards. Instead, businesses need sufficient and continuous data on a monthly and annual basis. A GRI sustainability report requires consistent information that can be traced back to its original sources.
When should GRI be chosen as the reporting benchmark?
GRI is suitable when a business needs to report to multiple stakeholder groups. These may include customers, banks, employees, and local communities. GRI is designed to address the information needs of a broad range of stakeholders.
If the primary readers are investors, businesses may also consider the ISSB Standards. IFRS S1 focuses on sustainability-related financial disclosures. IFRS S2 focuses specifically on climate-related disclosures, including information related to greenhouse gas emissions.
If a business is part of a European company’s supply chain, additional requirements may apply. Companies subject to CSRD may request sustainability data from suppliers for reporting under ESRS.
These reporting frameworks can use much of the same underlying data. Therefore, businesses starting with GRI can later expand to other reporting frameworks. They do not necessarily need to rebuild their entire data collection system from scratch.
If clients require GRI reporting, businesses should first review their existing sustainability data. The next step is to compare this data with relevant GRI disclosures for their activities and industry.
CCV supports businesses in materiality assessment and the development of a GRI content index. We also assist businesses in preparing sustainability reports according to the GRI Standards.