The Global Reporting Initiative (GRI) and the World Benchmarking Alliance (WBA) have released a new analysis highlighting the crucial role of corporate reporting in achieving social sustainability outcomes. The report, titled ‘How to Strengthen Corporate Accountability: The Case for Unlocking Sustainable Corporate Performance Through Mandatory Corporate Reporting’, reveals a direct correlation between the effective use of GRI Standards and enhanced corporate social performance.
With the Sustainable Development Goals (SDGs) nearing their halfway mark, many targets remain unfulfilled. The report emphasises the need for governments to spearhead business engagement to ensure that corporate initiatives make a tangible impact on sustainable development, with clear benchmarking being essential to this process.
The publication examines the connection between GRI Standards and companies’ social performance, assessed through WBA’s Core Social Indicators (CSIs). These indicators are part of WBA’s Social Benchmark, which evaluates 2,000 of the world’s most influential companies based on their contributions to social sustainability, focusing on human rights, decent work, and ethical practices.
The report found that the companies that publish sustainability reports featuring a GRI Content Index achieve significantly better results in CSIs, scoring at least 47% higher than those not using the index. Also, organisations adhering to GRI Standards consistently outperform those that report using only select guidelines. The report also revealed that companies with the highest CSI scores are typically those that utilise GRI Standards for their reporting.
“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,” said Peter Paul van de Wijs, GRI’s Chief Policy Officer.
Richard Gardiner, Head of EU Policy at World Benchmarking Alliance said, “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 2024.
