Global Compact Network Singapore

Sustainability reporting and GRI

Sustainability reporting and GRI

A sustainability report gives an overview of an organisation’s non-financial performance in the economic, environmental, social and governance aspects. It presents an organisation’s values and governance model, and shows the link between its business strategy and its commitment to a sustainable global economy.

Global Reporting Initiative (GRI)

GRI is today’s most prevalent sustainability reporting framework worldwide. More than 5,800 organisations in over 60 countries use the GRI guidelines to produce their reports, and over 64 percent of the 100 largest companies in the 34 developed and developing countries report their sustainability performance. Of these, 69 percent use the GRI Guidelines.

GRI issued the first set of sustainability reporting guidelines in 2000. The latest generation of guidelines, G4, were issued in May 2014 and it was developed by over 120 experts from seven working groups, and incorporates feedback gathered from 1,900 respondents around the world.

State of sustainability reporting in Singapore

In Singapore, companies that are using the GRI reporting framework are using the G3.1 guidelines which were issued in 2011. Companies that are using the G3.1 guidelines for its reports must migrate to the G4 framework by 2016.

A study by Singapore Compact in 2010 on the state of sustainability reporting in Singapore showed that 79 companies out of 562 companies listed on the mainboard of the Singapore Exchange (around 14%) had some form of non-financial reporting, and about 14 of these used the GRI framework for their reports. A second research study, released in July 2014, revealed that 160 companies communicated sustainability information - nearly twofold increase, and 19 of these use the GRI framework.

Find out what are the five things to watch out for in a sustainability report.

Integrated Reporting: the next wave of reporting?

A movement to encourage corporations to integrate reporting of its financial performance and ‘value relevant’ information has emerged in recent years. Known as integrated reporting (IR), it aims to support businesses to communicate their business strategies and for investors to understand how these strategies create value in the long term. The International Integrated Reporting Council (IIRC) is one of the organisations recognised globally for leading the movement. IIRC released its first-ever IR framework in December 2013.

The CEO of IIRC, Mr Paul Druckman, a well-known figure in the business and accounting profession, graced a dialogue session organised by Singapore Compact for Corporate Social Responsibility in November 2014. Read about the event and Mr Druckman's thoughts on the development of corporate reporting here.

Singapore Compact