Sustainability reporting has become essential for modern businesses seeking to demonstrate their commitment to environmental, social, and governance (ESG) aspects.
The Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB) are two popular frameworks for sustainability reporting. While both frameworks aim to increase transparency and accountability, they differ significantly in scope, strategy, and focus areas.
In the following table, we’ll look at the fundamental distinctions between the GRI and SASB frameworks, so that companies may make an informed decision about which framework is appropriate for their reporting needs.
| Aspect | GRI | SASB |
| Scope and Focus | Covers economic, environmental, and social aspects with flexibility | Focuses on financially material sustainability issues within specific industries |
| Materiality | Doesn’t prioritize issues based on financial materiality | Prioritizes financially material sustainability issues within specific industries |
| Standardization | Provides general guidelines and principles, allowing flexibility but risking inconsistency | Offers specific metrics tailored to industries for standardized reporting |
| Applicability | Global framework used across various sectors and industries | Industry-specific standards for unique sustainability issues within each industry |
| Approach | Flexible, providing principles without specific metrics | Prescriptive, offering detailed metrics and disclosure requirements by industry |
| Coverage of Sustainability Issues | Covers a wide range of sustainability issues across economic, environmental, and social dimensions | Focuses specifically on sustainability issues that are financially material to investors within each industry |
| Stakeholder Engagement | Emphasizes stakeholder engagement and inclusivity | Focuses on the needs of investors and financial stakeholders |
Page Credits: Rajdeep Pandey
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