AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
October 9, 2024 /3BL/ - There is a direct correlation between the proper utilization of the GRI Standards and a stronger corporate social performance. This is what emerges from How to strengthen corporate accountability: The case for unlocking sustainable corporate performance through mandatory corporate reporting, jointly published by Global Reporting Initiative (GRI) and World Benchmarking Alliance (WBA).
At the halfway point to achieving the SDGs, many targets remain off track. According to the new report, governments must lead business engagement and ensure corporate efforts have a real impact on sustainable development, a process for which clear benchmarking is pivotal.
The publication explores the link between the use of the GRI Standards and companies' social performance, as measured by WBA's Core Social Indicators (CSIs). These indicators are part of a benchmarking system (WBA's Social Benchmark) ranking 2,000 of the most influential companies based on their contributions to social sustainability, with a focus on human rights, decent work, and ethical practices.
The research indicates that strong adherence to globally recognized reporting standards can be linked to improved social sustainability outcomes. The findings include:
- There is clear evidence that companies that publish a sustainability report with a GRI Content Index achieve significantly better results in CSIs, scoring at least 47% higher than other companies in WBA’s Social Benchmark;
- Organizations that report in accordance with the GRI Standards consistently outperform those that only with reference to the Standards;
- Companies with the highest CSI scores correlate with those that follow the GRI Standards for reporting.
Peter Paul van de Wijs, GRI Chief Policy Officer, said:
"Governments are responsible for accelerating progress toward the SDGs, yet they need deeper business cooperation to succeed. The core issue is the lack of enforcement mechanisms to hold companies accountable for their role in collective sustainability goals. Mandatory sustainability reporting, coupled with clear evidence of its genuine impact, would not only ensure corporate transparency, but also attract greater institutional attention and investment in sustainable outcomes."
Richard Gardiner, Head of EU Policy at World Benchmarking Alliance, added:
"This report clearly shows that corporate reporting on sustainability not only enhances transparency, but more importantly appears to drive better corporate decision-making, leading to improved corporate sustainable performance. This positive impact of transparency on performance should guide governments to further examine measures such as mandatory reporting rules to drive accountability and help align corporate actions with global sustainability goals."
The publication was officially launched during the event How to make the SDGs consequential for business, part of GRI's engagement during Climate Week NYC 2024.
