The GRI has proposed a revised reporting standard to establish accountability for the environmental effects of businesses and inform the global response to an increasing biodiversity crisis.
According to the recently released KPMG Survey of Sustainability Reporting (October 2022), only 40% of the world’s 5,800 top companies currently report on biodiversity, despite the widespread use of disclosure using the GRI Standards.
The timing could not be more crucial with the UN Convention on Biodiversity (COP15) convening in Montreal on 7 December and countries negotiating a new biodiversity action plan. In the meantime, biodiversity is declining in every region worldwide, according to the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES).
Judy Kuszewski, Chair of the Global Sustainability Standards Board (GSSB) – which is responsible for setting the GRI Standards – said:
“It is abundantly clear that biodiversity is under siege, with human activity the leading cause. The affects of biodiversity loss are directly undermining the sustainable development agenda and, if it continues unabated, will have disastrous consequences – on the environment, the economy and people.”
This context, therefore, highlights the significant pressure businesses face from various stakeholders to assess, disclose, and mitigate their impacts on biodiversity.
The exposure draft responds to these pressures by expanding on the most recent authoritative insights and significantly revising the 2016 Standard (GRI 304). It suggests modifications that:
- Reflect reporting throughout the supply chain, given many biodiversity impacts are found beyond the scope of a company’s operations;
- Help organizations prioritize attention on their most significant impacts, recognizing the challenge of scale in addressing biodiversity impacts;
- Add new disclosures to connect with the drivers of biodiversity loss, including climate change, pollution, and overexploitation of resources;
- Introduce requirements for biodiversity-related human rights impacts, such as those on indigenous peoples, local communities and workers;
- Emphasize location-specific data to ensure businesses are transparent about the sites where their biodiversity impacts occur.
In order to align the GRI Standard with recent advancements in the field, there was extensive engagement with other biodiversity frameworks and initiatives during the revision process. The technical committee that oversaw the review had representatives from IPBES, CDP, the Align project, Partnership for Biodiversity Accounting Financials, and the Accountability Framework. In addition, the Science Based Target Network (SBTN), the Taskforce on Nature-related Financial Disclosures (TNFD), and WBA Nature Benchmark all provided feedback on the draft simultaneously.
The GSSB appointed a multi-stakeholder Biodiversity Technical Committee, which includes representatives from the following organizations:
- Mediating institutions: CDP, Deloitte, Global Balance, Lancaster University, Rainforest Alliance, UEBT, UNEP-WCMC
- Business: ConocoPhillips, DSM, L’Occitane, Rio Tinto
- Civil society: BirdLife International, IUCN, Marine Watch International, WWF
- Investors: PBAF, World Bank
- Labour: Department of Conservation – Wellington
In June 2021, the GRI announced that it had received funding for developing the updated standard from several companies and organizations, including professional services firm KPMG, environmental services company Ambipar, and philanthropic organization One Earth, as well as a private individual donation. “GRI thanks KPMG, Ambipar, and One Earth for their funding support during the development phase for the update to GRI 304,” the GRI said in a statement.
The updated GRI biodiversity Standard will inform the CDP platform and provide input to the TNFD’s financial disclosure framework for nature-related risks, as was confirmed in December 2021. There has also been collaboration and alignment with EFRAG (under the Corporate Sustainability Reporting Directive) on a new EU biodiversity standard.
The revised GRI Biodiversity Standard is undergoing a public comment period. Feedback is being sought until 28 February 2023 to ensure that the final standard follows the world’s best practices for transparency on biodiversity impacts.
Click here to access the new proposed biodiversity reporting standard and public comment questionnaire.