GRI 1, GRI 2 and GRI 3 Explained
What Each Standard Covers?
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Introduction
Open the GRI Standards for the first time and you meet three “Universal” documents that all seem to apply to everything. New reporters often cannot tell where the rules end, where the organisational profile begins and where materiality starts.
The confusion has a cost now. The Universal Standards 2021 have applied to reporting since 1 January 2023, so templates built on G4 or the 2016 Standards no longer match what GRI expects.
This guide explains GRI 1, GRI 2 and GRI 3 in plain terms: what each covers, and how together they connect impacts, material topics, disclosures and the final report.
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What the GRI Universal Standards 2021 Are?
The GRI Standards are a modular set of sustainability reporting standards. They ask an organisation to report its impacts, meaning the effects it has, or could have, on the economy, the environment and people, including effects on human rights.
The system has three layers. Universal Standards apply to every organisation. Sector Standards list the likely material topics for specific industries. Topic Standards hold the detailed disclosures for individual subjects such as water or anti-corruption.
Four terms run through all three Universal Standards. An impact is an effect on the economy, environment or people. A material topic is a topic that represents the organisation’s most significant impacts. Due diligence is the process an organisation uses to identify, prevent, mitigate and account for its negative impacts. A stakeholder is an individual or group whose interests are, or could be, affected by the organisation’s activities.
GRI 1, GRI 2 and GRI 3 are the Universal Standards. Think of GRI 1 as the rulebook, GRI 2 as the organisational profile page, and GRI 3 as the meeting that sets the agenda.
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GRI 1, GRI 2 and GRI 3 Explained in Detail
GRI 1: Foundation, the Rules
GRI 1 Foundation explains the purpose and system of the Standards and defines the key concepts. It contains no disclosures. Instead, it sets nine requirements for reporting in accordance with the GRI Standards, such as applying the reporting principles, reporting all GRI 2 and GRI 3 disclosures, and publishing a GRI content index with a statement of use. It also separates two claims. Reporting in accordance with the GRI Standards means meeting all nine requirements. Reporting with reference to the Standards has fewer requirements and suits organisations that are starting out.
GRI 2: General Disclosures, the Context
GRI 2 General Disclosures contains 30 disclosures in five groups: the organisation and its reporting practices; activities and workers; governance; strategy, policies and practices; and stakeholder engagement. Every reporter must report all of them. A reason for omission is permitted for all of them except 2-1 to 2-5. Disclosure 2-2, the list of entities included in reporting, sets the scope for the rest of GRI 2.
GRI 3: Material Topics and the Materiality Process
GRI 3 Material Topics gives a four-step process: understand the organisation’s context, identify actual and potential impacts, assess how significant they are, and prioritise the most significant for reporting. The steps are guidance, not separate requirements. GRI 3 materiality is impact-based. A topic is material because of the significance of its impacts on the economy, environment and people, rather than its financial effect alone. Three disclosures follow: 3-1 the process used, 3-2 the list of material topics, and 3-3 how each topic is managed. A reason for omission is permitted only for 3-3.
How the Three Fit Together?
Start with impacts. GRI 3 turns them into material topics, and where a Sector Standard applies, it must be used in that step. Material topics then decide which Topic Standard disclosures go into the report. GRI 2 supplies the organisational context around them, and GRI 1 governs the whole report, including the content index and the statement of use.
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How to Apply GRI 1, GRI 2 and GRI 3 in Practice?
Check the GRI 1 requirements first
Treat the nine requirements as a checklist before drafting. Then choose the claim, in accordance or with reference, that the report can actually support.
Keep context and materiality apart
GRI 2 is required from every reporter, while GRI 3 is specific to the organisation. Do not use GRI 2 entries to justify material topics.
Document the materiality process
Record how impacts were identified and assessed, and how the topics were tested with experts and information users. Assurance providers and readers can then trace each topic back to evidence.
Set the scope early
Settle the entity list in Disclosure 2-2 first, because the other GRI 2 disclosures and the materiality work depend on it.
Retire legacy templates
Do not carry over G4 or 2016 structures. Name the version used in the content index, for example GRI 1: Foundation 2021.
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Conclusion
GRI 1, GRI 2 and GRI 3 divide the work cleanly into rules, context and priorities. Once that division is clear, impacts lead to material topics, material topics lead to disclosures, and the report can be traced back to its rules.
Before the next reporting cycle, map any existing report against the three standards and label each section as a rule, context or priority. Gaps show up quickly, and so does content that fits none of the three.
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Frequently Asked Questions
What is GRI 1?
GRI 1: Foundation 2021 is the Universal Standard that sets the purpose, key concepts, requirements and reporting principles for reporting in accordance with the GRI Standards.
What is GRI 2 used for?
GRI 2: General Disclosures 2021 is used to report 30 disclosures on an organisation’s reporting practices, activities and workers, governance, strategy and policies, and stakeholder engagement.
What is GRI 3?
GRI 3: Material Topics 2021 gives a four-step process to determine material topics and requires disclosure of the process, the list of topics and how each topic is managed.
How do GRI 1, 2 and 3 work together?
GRI 1 sets the rules, GRI 2 gives organisational context, and GRI 3 identifies the material topics that decide which Topic Standard disclosures enter the report.
Can an organisation omit a GRI 2 disclosure?
Yes, but only for disclosures where reasons for omission are permitted, which excludes 2-1 to 2-5, and the reason must be stated in the GRI content index.
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