The GRI has unveiled new draft standards aiming to enhance corporate transparency in disclosing climate change transition plans and energy transition initiatives.
According to ESG Today, these standards are a response to the growing demand for detailed information on how companies are managing their greenhouse gas (GHG) emissions and energy consumption, aligning with the Paris Agreement’s goal of limiting global temperature rise to 1.5°C.
These proposed standards are significant as they expand the GRI’s already widely recognized Sustainability Reporting Standards. The standards cover a broad spectrum of ESG-related topics and have been synchronized with both the European Sustainability Reporting Standards (ESRS) and the International Financial Reporting Standards (IFRS) Foundation’s sustainability reporting criteria.
The climate change standard focuses on detailed disclosures such as transition plans for climate change mitigation, adaptation strategies, emission reduction targets, and progress reports. It also highlights GHG removal within value chains and the use of carbon credits. Importantly, it introduces metrics related to the social impact of climate change, emphasizing accountability for effects on workers, communities, and vulnerable groups.
The energy standard addresses ways organizations are reducing energy consumption, promoting energy efficiency, and adopting renewable energy sources. It includes detailed disclosures on energy consumption in both upstream and downstream value chains and the role of energy policy in transitioning to a decarbonized economy.
Carol Adams, Chair of the Global Sustainability Standards Board (GSSB), underscored the urgency and importance of these standards by stating, “The scientific evidence and international consensus is unequivocal: climate change threatens humanity’s well-being and the planet’s health. That is why there are growing demands for organizations to provide in-depth information about how they are reducing GHG emissions, taking concrete steps to mitigate and adapt to climate change – and how their actions impact on people and the environment.”
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