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Tag: GRI

  • UN SDGs and Corporate Sustainability: Aligning Business Goals with Global Impact

    UN SDGs and Corporate Sustainability: Aligning Business Goals with Global Impact

    In today’s evolving business landscape, sustainability is no longer an option but a necessity. Companies worldwide are increasingly aligning their corporate sustainability strategies with the United Nations Sustainable Development Goals (UN SDGs) — a blueprint for peace, prosperity, and the protection of the planet. But what does aligning business goals with the SDGs really mean, and why is it crucial for businesses in 2025 and beyond?

    What Are the UN SDGs?

    The United Nations Sustainable Development Goals (SDGs) are 17 interconnected goals adopted in 2015 by all UN member states as part of the 2030 Agenda for Sustainable Development. These goals address global challenges such as poverty, inequality, climate change, environmental degradation, peace, and justice.

    The 17 goals include:

    1. No Poverty
    2. Zero Hunger
    3. Good Health and Well-being
    4. Quality Education
    5. Gender Equality
    6. Clean Water and Sanitation
    7. Affordable and Clean Energy
    8. Decent Work and Economic Growth
    9. Industry, Innovation, and Infrastructure
    10. Reduced Inequalities
    11. Sustainable Cities and Communities
    12. Responsible Consumption and Production
    13. Climate Action
    14. Life Below Water
    15. Life on Land
    16. Peace, Justice, and Strong Institutions
    17. Partnerships for the Goals

    Why Should Businesses Align with the SDGs?

    1. Enhanced Brand Reputation: Consumers and investors increasingly favor companies that demonstrate social responsibility.
    2. Investor Confidence: Sustainable business practices are attractive to investors focused on Environmental, Social, and Governance (ESG) criteria.
    3. Regulatory Preparedness: Alignment with the SDGs can prepare businesses for evolving global regulations and reporting frameworks like CSRD and IFRS.
    4. Competitive Advantage: Businesses that integrate SDG goals into core strategy position themselves for long-term resilience and success.

    How Can Companies Align Business Goals with the SDGs?

    1. Conduct a Materiality Assessment

    Identify which SDGs are most relevant to your industry, operations, and stakeholders. Tools like SALI’s AI-driven sustainability assessment platform can help pinpoint focus areas and guide reporting.

    2. Integrate SDGs into Business Strategy

    Ensure that sustainability goals are embedded into your company’s mission, vision, and objectives. For example:

    • Goal 12 (Responsible Consumption and Production) can guide waste reduction initiatives.
    • Goal 7 (Affordable and Clean Energy) can inspire investments in renewable energy.

    3. Set Measurable Targets

    Establish key performance indicators (KPIs) for each chosen SDG. Transparent and quantifiable goals build trust with stakeholders.

    4. Report Progress Transparently

    Use recognized reporting frameworks like GRI, ESRS, or IFRS Sustainability Standards to disclose how your business contributes to the SDGs.

    5. Partner for Impact

    Collaborate with governments, NGOs, industry peers, and local communities to maximize impact and scale solutions.

    Examples of Corporate SDG Alignment

    • Microsoft has pledged to become carbon negative by 2030 (Goal 13: Climate Action).
    • Unilever integrates Goals 5 (Gender Equality) and 12 (Responsible Consumption) in its supply chain and product development.
    • IKEA invests in renewable energy and sustainable sourcing, supporting Goals 7 (Clean Energy) and 12.

    The Role of Technology in SDG Integration

    Digital platforms like SALI (Sustainability Assessment, Reporting, and Learning Intelligence) enable companies to:

    • Track performance against SDG-aligned KPIs.
    • Automate data collection.
    • Map sustainability initiatives to international frameworks.
    • Generate customizable reports for stakeholders and regulators.

    Conclusion

    Incorporating the UN SDGs into business strategy is more than a CSR initiative — it is a roadmap to resilience, innovation, and global impact. Companies that proactively align their goals with the SDGs not only future-proof their business but also contribute meaningfully to solving global challenges.

    Need help aligning your business goals with the UN SDGs? SALI’s AI-powered tools and expert consulting services can guide your sustainability journey. Contact us today to get started.

  • ESRS vs. GRI vs. IFRS: Which Sustainability Reporting Standard Should You Follow?

    ESRS vs. GRI vs. IFRS: Which Sustainability Reporting Standard Should You Follow?

    As sustainability becomes central to business strategy and investor decisions, companies face a critical question: Which sustainability reporting standard should we follow? Among the most prominent frameworks are the European Sustainability Reporting Standards (ESRS), the Global Reporting Initiative (GRI), and the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards. Each serves unique purposes and audiences, making it crucial for businesses to understand their differences and choose the best fit.

    What is ESRS?

    The European Sustainability Reporting Standards (ESRS) are developed by the European Financial Reporting Advisory Group (EFRAG) under the EU’s Corporate Sustainability Reporting Directive (CSRD). The ESRS provides a mandatory and comprehensive framework for reporting environmental, social, and governance (ESG) metrics. Key features of ESRS include:

    • Double materiality: Reporting both the company’s impact on the environment/society and how sustainability issues affect the company.
    • Mandatory assurance: Reports must be audited.
    • Alignment with EU regulations: Tailored for businesses operating in or trading with the European Union.

    What is GRI?

    The Global Reporting Initiative (GRI) is the most widely used voluntary sustainability reporting standard globally. Established in 1997, GRI focuses on impact materiality — the company’s impact on the environment and society — and is popular among multinational corporations. Key highlights of GRI include:

    • Impact-driven disclosure: Emphasizes environmental, social, and economic impacts.
    • Sector-specific standards: Customizable reporting guidelines for different industries.
    • Voluntary but globally recognized: Used by companies aiming to communicate transparency to a broad audience.

    What is IFRS Sustainability Disclosure Standards?

    The IFRS Sustainability Disclosure Standards, developed by the International Sustainability Standards Board (ISSB), focus on providing sustainability-related financial disclosures to investors. IFRS standards are investor-centric and designed for global comparability. Key elements include:

    • Financial materiality: Focus on how sustainability risks and opportunities affect enterprise value.
    • Consistency and integration with financial reporting: Ideal for investors and financial market participants.
    • Global alignment: Designed to work alongside other frameworks and recognized worldwide.

    ESRS vs. GRI vs. IFRS: Key Differences

    CriteriaESRSGRIIFRS Sustainability Standards
    ApplicabilityMandatory for EU large companies under CSRDVoluntary, used globallyVoluntary, investor-focused, gaining momentum
    Materiality ApproachDouble materialityImpact materialityFinancial materiality
    FocusEU regulatory compliance, comprehensive ESGTransparency on environmental and social impactInvestor-focused, financial relevance
    Audit RequirementMandatory assuranceNot mandatoryStrong emphasis on reliability and integration
    AudienceRegulators, investors, stakeholders in the EUGlobal stakeholders, public accountabilityInvestors, financial market participants

    How to Choose the Right Sustainability Standard

    1. Location and Regulatory Requirements: If you operate in the EU or plan to do business there, ESRS compliance is non-negotiable.
    2. Audience and Objectives:
      • Want to communicate impact transparently? GRI is ideal.
      • Need to focus on financial implications of ESG risks and opportunities? IFRS Sustainability Standards are a better fit.
      • Require broad, comprehensive ESG reporting with regulatory assurance? Go with ESRS.
    3. Industry Practice: Some industries have established norms, with certain sectors leaning heavily on GRI or aligning with IFRS frameworks.
    4. Company Size and Structure: Large, publicly traded firms with EU ties should prioritize ESRS. Smaller companies or those focusing on corporate social responsibility might find GRI more practical.
    5. Integration with Financial Reporting: Companies looking to integrate ESG disclosures directly into financial reporting for investor use may lean toward IFRS.

    The Role of Technology in Multi-Framework Reporting

    For companies navigating multiple frameworks, digital solutions and AI platforms like SALI (Sustainability Assessment, Reporting, and Learning Intelligence) are game-changers. SALI helps organizations:

    • Map and align disclosures across ESRS, GRI, and IFRS.
    • Automate data collection and reporting processes.
    • Conduct materiality assessments.
    • Generate customizable reports for different audiences.

    Conclusion

    In the evolving world of sustainability reporting, there’s no one-size-fits-all answer. Choosing between ESRS, GRI, and IFRS standards depends on your company’s regulatory obligations, goals, audience, and strategic direction. Often, companies will use a combination of these standards to meet the expectations of regulators, investors, and the public.

    Not sure which standard to adopt? SALI’s AI-powered tools and expert guidance can help your business comply with global sustainability frameworks and stay ahead. Contact us today to learn more.