Avoiding Greenwashing and Elevating Credibility Through Standardized Sustainability Reporting

GRI actively participated in the FT’s Moral Money Summit Americas 2023 at the end of October. Matthew Rusk, Head of GRI North America, served as a panelist in a session titled "Defending Your ESG Credibility - Protecting Your Business From Greenwashing Claims." GRI’s focus on standardized reporting, improved efficiency and precision in data collection, as well as disclosure auditability helps prevent corporate greenwashing.

Without a globally consistent and comprehensible communication on any topic, there is a risk of intentional or unintentional misrepresentations and misunderstandings. The GRI Standards provide a global common language for organizations to communicate their impacts on the environment, society, and people - including the management of those impacts. The standards are applicable to organizations of all sizes, types, and locations and have already been adopted by over 11,000 organizations globally. Standardized sustainability disclosures not only enable organizations to communicate impacts, but also help stakeholders understand the sustainability performance of the organization.

Accuracy of data is unquestionably paramount if it is to be used in the decision-making to improve business performance. A responsible and valuable disclosure process requires cross-functional teams with subject matter expertise and data ownership. It is for this reason that GRI actively collaborates with over 66 certified software and tools partners that support the increased involvement of essential departments, disciplines, and data systems into the sustainability reporting function. New and improved tools that embed the GRI Standards into products are helping to seamlessly integrate the sustainability reporting process across the organizations, making reporting more efficient and precise. 

Standards are needed for the assurance and verification of sustainability and ESG disclosures. Assurance instills trust in the disclosed data and ultimately contributes to better decision-making. Auditability of data is increasingly becoming a requirement of sustainability and ESG reporting due to elevated stakeholder demands and jurisdictional requirements. In fact, 64% of S&P 500 companies disclosed receiving some form of assurance or verification over certain of their ESG metrics in 2021. Furthermore, information disclosed in accordance with GRI Standards is assured more often than any other reporting framework or standard.

GRI's commitment to preventing greenwashing and promoting standardized, accurate disclosure is vital. Standardized reporting not only facilitates effective communication but also aids stakeholders in comprehending an organization's sustainability performance, enabling informed decision-making that results in better performance.