The Global Reporting Initiative (GRI) and Sustainability Accounting Standards Board (SASB) frameworks are two of the most widely used sustainability reporting frameworks in the world. Both frameworks provide guidance to organizations on how to measure, manage, and report on their sustainability performance. While there are some similarities between these two frameworks, they also have some key differences that make them unique. Let’s take a look at both of these frameworks and how they differ from one another.
The Global Reporting Initiative Framework
The GRI framework is a set of guidelines that provides organizations with a comprehensive approach to measuring and reporting on their environmental, social, and governance (ESG) performance. This framework is based on the principles of materiality, stakeholders’ inclusiveness, completeness, comparability, accuracy, transparency, and reliability. GRI was developed by an international network of organizations who work together to advance corporate sustainability disclosure practices worldwide.
The Sustainability Accounting Standards Board Framework
The SASB framework is a set of standards for the disclosure of material financial information related to ESG issues such as climate change risk management strategies or workforce diversity policies. SASB is designed to help companies determine which aspects of ESG performance are financially relevant to their business operations as well as identify specific metrics or indicators that firms should be using when disclosing this information. Unlike GRI which provides general guidance on best practices for sustainability disclosure, SASB focuses specifically on financial disclosure and provides companies with detailed guidance on how to disclose their ESG performance in accordance with accepted accounting standards.
In conclusion, while both the GRI and SASB frameworks provide guidance for companies looking to measure and report on their sustainability performance, they serve different purposes. The GRI framework provides general guidance on best practices for sustainability disclosure while SASB focuses specifically on financial disclosure. By understanding the differences between these two frameworks organizations can better determine which one fits their needs when it comes to measuring and reporting their ESG performance. Ultimately this will allow them to more effectively communicate their commitment to sustainability initiatives going forward.
