Global Reporting Initiative (GRI) VS Environmental, Social, and Governance (ESG)
Global Reporting Initiative (GRI) VS Environmental, Social, and Governance (ESG)
Global Reporting Initiative (GRI) is a sustainability reporting framework, while Environmental, Social, and Governance (ESG) is a broader term referring to the factors that investors and stakeholders consider when evaluating a company’s performance and risk profile. GRI provides specific standards for reporting on these factors, while ESG is a framework that integrates these factors into investment decisions and business strategies.
| Category | GRI | ESG |
|---|---|---|
| What it Does | GRI provides clear rules for businesses to share their sustainability actions. | ESG checks how businesses perform in areas like the environment, social practices, and governance. |
| Purpose | GRI helps businesses report their sustainability work clearly and consistently. | ESG helps measure a company’s overall sustainability and guide decisions. |
| Focus | GRI focuses on sharing specific actions and results in sustainability. | ESG looks at the big picture of how a company handles its responsibilities. |
| Who Uses It | Businesses, governments, and organisations use GRI to create sustainability reports. | ESG is used by investors, business leaders, and regulators to evaluate companies. |
| Outcome | GRI helps businesses create clear and comparable sustainability reports. | ESG helps businesses improve their practices and attract investors. |
