Climate standards within the GRI have been modified to match the guidelines set by the ISSB more closely.
The Global Reporting Initiative (GRI) has announced significant updates to its climate change and energy standards, with the new standards, known as GRI 102, set to come into effect in January 2027.
GRI 102 includes a comprehensive section on incorporating a just transition and a transition plan for climate change mitigation. This section aims to provide companies with a framework for managing the social and environmental impacts of their transition to a low-carbon economy.
The updates also align with the Greenhouse Gas Protocol and the European sustainability reporting standards, providing companies with a streamlined approach to meeting their reporting needs. According to Sue Lloyd, vice-chair of the International Sustainability Standards Board (ISSB), this alignment will be beneficial for providing information to investors and a broader range of stakeholders.
The alignment allows companies to disclose key information about climate-related risk using just one set of greenhouse gas emissions disclosures for both GRI and ISSB. This streamlined approach is expected to save companies time and resources while ensuring transparency and consistency in their reporting.
A new section has been included on carbon credits to increase transparency around their use. The standards provide information about any cancelled carbon credits and where such credits were purchased. This transparency is intended to help stakeholders understand a company's carbon offsetting strategy and its impact on the environment.
GRI 102 also includes reporting on the impact of local communities, workers, Indigenous people, and nature. This section aims to ensure that companies consider the social and environmental impacts of their operations beyond their immediate footprint.
In addition to GRI 102, a separate update, GRI 103, includes disclosures on energy efficiency and transitioning to renewables. This update is intended to help companies disclose their progress in improving energy efficiency and transitioning to renewable energy sources.
The new GRI standards will be piloted before the end of 2025, with around 14,000 companies worldwide expected to use the standards, with 65% currently using its climate and energy standards. Companies can report their emissions reductions for all aspects of the supply chain (scope 1, 2, and 3) separately or combined.
The interoperability between standards will enable companies to provide information about their climate-related impacts, risks, and opportunities in an efficient manner. This interoperability is expected to reduce the burden on companies while ensuring that stakeholders have access to the information they need to make informed decisions.
This page was last updated on June 27, 2025.
