New GRI Climate and Energy Standards enhance sustainability regulation and promote better climate risk disclosure through integrated, science-based corporate transparency. ESG BROADCAST shares key takeaways.
The Global Reporting Initiative (GRI) introduced two pivotal standards—GRI 102: Climate Change and GRI 103: Energy—to sharpen the clarity, consistency, and comparability of corporate sustainability disclosures. Developed over a two-year multistakeholder process by the Global Sustainability Standards Board (GSSB), the new frameworks are set to transform how businesses disclose their environmental impacts and energy footprints, and help accelerate meaningful climate action.
GRI 102: Climate Change focuses on greenhouse gas (GHG) emission reductions through science-based targets aligned with global climate goals. It incorporates “just transition” indicators, addressing social dimensions such as the effects of climate action on workers, local communities, and Indigenous Peoples. GRI 103: Energy, meanwhile, maps how organizations manage and reduce energy use—both renewable and non-renewable—and links decarbonization to operational performance.
“The GRI 102 and 103 standards allow companies to demonstrate accountability for climate-related impacts, while aligning with international protocols,” said Robin Hodess, CEO of GRI. “This will drive transparency, trust, and strategic action across stakeholder groups.”
A major innovation in these standards is their full alignment with the Greenhouse Gas Protocol, the world’s leading emissions accounting framework. This interoperability allows organizations to use equivalent disclosures from the IFRS S2 standard—issued by the International Sustainability Standards Board (ISSB)—to fulfill GRI 102 reporting requirements for Scope 1, 2, and 3 GHG emissions. This facilitates harmonized reporting for dual-standard users and reduces redundancy in compliance efforts.
GRI also confirmed that its new climate standards are closely aligned with the European Sustainability Reporting Standards (ESRS), particularly ESRS E1 on Climate Change, and the Corporate Net Zero Standard issued by the Science Based Targets initiative (SBTi). Together, these harmonisations offer companies a coherent structure to meet investor expectations, regulatory obligations, and sustainability commitments.
“Climate change is as much a human issue as it is an environmental one,” noted Carol Adams, Chair of the GSSB. “These standards support a more inclusive, adaptive, and measurable approach to sustainability reporting.”
To support implementation, GRI is offering a new online training course, detailed FAQs, and pilot programs under its GRI Community Early Adopter initiative. These resources aim to help businesses extract decision-useful data and apply it effectively in regulatory filings, ESG assessments, and transition planning.
Strategic significance lies in enabling global companies to consolidate reporting, meet evolving disclosure requirements, and communicate climate strategies more credibly to regulators, investors, and civil society. The standards are expected to become instrumental for ESG professionals navigating a rapidly expanding regulatory environment.
ESG BROADCAST will continue monitoring the updates related to this topic. Stay tuned to be updated on the related policy and pivotal regulatory shift.
