Global Reporting Initiative Guidelines Research Articles

Analisis Sustainability Report pada Perusahaan PT. XYZ di Karawang

In Companies today must be able to actively participate in sustainable development. The effort to publish a sustainability report is one of the strategies to implement sustainable development in a transparent and measurable manner. The purpose of this study is to analyse the disclosure of sustainability reports in the company. This research was conducted qualitatively. The type of data used is documentary data and the data source is secondary data. The data source can be a sustainability report from a manufacturing company at company XYZ. The data collection method used in this research is the interview method. The object of this research is PT XYZ in Karawang. The researcher conducted an analysis using the content analysis method based on the disclosure/reporting rules that should be implemented in accordance with the Sustainability Reporting Guideline and the Global Reporting Initiative (GRI) Guidelines. The GRI provides a standardised corporate reporting framework on how to disclose economic, environmental, social and corporate governance issues in preparing financial statements.

Strategic tone management in ESG reports and ESG risk

In this study, we investigate whether strategic tone management in environmental, social, and governance (ESG) reports can serve as an indicator of future ESG risk. Our baseline results reveal a positive association between abnormal positive tone in ESG reports and future ESG risk. The findings suggest that firms employ impression management strategy in their ESG reports to provide misleading information. Analyst coverage and media attention can mitigate this positive association. Heterogeneity analysis reveals that the positive correlation is stronger for firms mandated to disclose ESG reports and those adhering to the Global Reporting Initiative guidelines. Additional tests indicate that abnormal positive tone is positively associated only with future environmental risk, not with future social and governance risk. We observe this positive association exclusively in government-reported ESG risk, not in media-reported ESG risk. Our results offer valuable implications for mitigating the adverse impact of strategic tone management on corporate sustainability practices.

GRI guidelines in developing countries: uncovering the antecedents and consequences

Purpose Framed under the upper echelons theory, the purpose of this paper is to examine the effect of board characteristics on the adoption of the global reporting initiative (GRI) guidelines for corporate disclosure and, consequently, their effect on the company’s market value. Design/methodology/approach To achieve the research objective, the authors investigated the impact of certain important board characteristics, such as board independence, size, gender diversity and director skills. The authors examined the adoption of GRI guidelines by 371 companies based in Latin America. Using logistic regression and panel data analysis, the authors tested five hypotheses. Findings The findings can confirm the upper echelons theory, showing that directors have an important role in determining environmental policies and strategies in their companies. The authors confirm that three characteristics affect GRI adoption in Latin America: independence, gender diversity and skills of board directors. The authors also found that companies that adhere to the GRI tend to perform better in terms of market capitalization. Practical implications Managers who want their organization to perform better in terms of GRI disclosure must understand that characteristics such as board independence, gender diversity and directors’ skills play a significant role in the company adopting the GRI for corporate disclosure. Furthermore, managers must be aware that by adopting the GRI, the company increases its market value through market capitalization. Originality/value The literature is still unaware of how the adoption of GRI can bring financial returns to organizations that adopt this type of standard to disclose their corporate reports. To the best of the authors’ knowledge, this is the first empirical paper to investigate the antecedents and consequences of GRI adoption in Latin America.

Sustainable practices in last-mile logistics of small Brazilian e-retailers: an analysis using an MCDM approach

ObjetivosEl objetivo es contribuir al desarrollo de estrategias mediante la identificación de prácticas sostenibles. Por lo tanto, la investigación tiene un doble objetivo: revelar las prácticas de sostenibilidad integradas en las actividades logísticas de última milla de minoristas de comercio electrónico, analizar las interrelaciones entre estas prácticas y categorizarlas según su importancia para los pequeños minoristas de comercio electrónico en Brasil.MetodologíaSe llevó a cabo un mapeo de la literatura para identificar prácticas de sostenibilidad en las actividades de última milla adoptadas por minoristas en línea, lo que llevó a la propuesta de un metamodelo. Un total de 67 artículos forman parte de la muestra final. Posteriormente, el estudio aplicó la técnica de toma de decisiones multicriterio Decision-Making Trial and Evaluation Laboratory (DEMATEL) para estructurar el problema de investigación mediante análisis de causa y efecto entre las prácticas, con el objetivo de priorizar las prácticas críticas.ResultadosEl resultado indica una fuerte dependencia de prácticas económicas para implementar la sostenibilidad en la logística de última milla. En la dimensión económica de la sostenibilidad, los costes operacionales y la calidad de los servicios son variables de efecto y presentan una fuerte correlación.OriginalidadLa originalidad de esta investigación radica en identificar prácticas de sostenibilidad económica, social y ambiental adoptadas por minoristas en línea en los procesos logísticos de última milla. Además, el estudio se centra en el segmento minorista de comercio electrónico a pequeña escala, un área poco explorada en el contexto brasileño. Por último, el metamodelo propuesto contribuye a abordar prácticas desde la perspectiva de la Teoría de los Stakeholders y el enfoque de Sostenibilidad.Limitaciones/implicaciones para la investigaciónEl artículo proporciona contribuciones teóricas al abordar dos áreas complementarias de conocimiento: la Teoría de los Stakeholders y la Sostenibilidad, alineándose también con las directrices de la Iniciativa de Reporte Global (GRI). En términos prácticos, destaca al ofrecer ideas valiosas sobre la implementación de estrategias sostenibles al identificar prácticas económicas, ambientales y sociales en la logística de última milla, particularmente en el contexto de las pequeñas empresas en el segmento minorista en línea.Implicación prácticaLos resultados ayudan a los minoristas electrónicos a reevaluar los procesos logísticos de última milla desde una perspectiva de sostenibilidad. Este estudio pretende contribuir el avance del conocimiento de la literatura actual sobre la adopción de prácticas sostenibles en pequeñas empresas de comercio electrónico.Implicación socialTeniendo en cuenta que uno de los pilares de la sostenibilidad es el compromiso con el desarrollo social, este estudio contribuye a comprender la visión de los pequeños minoristas electrónicos sobre los trabajadores independientes encargados de la entrega de mercancías.

Environmental disclosures and financial performance amid banking crisis and COVID-19: evidence from Ghana

Purpose The purpose of this study is to examine the impact of environmental disclosures (END) on the corporate financial performance (CFP) of listed companies in Ghana before and during the Banking crisis (BKC) and the COVID-19 pandemic (COV). Design/methodology/approach This study used data from 16 companies listed on the Ghana Stock Exchange between 2012 and 2021. The END Index was used, which uses percentile ranking and is guided by Global Reporting Initiative guidelines. A diverse set of empirical tests were used to examine whether ENDs affect CFP during crises. Findings The study offered support for the stakeholder and signaling theories generally applied to the study of END. The results confirmed that ENDs have a significant positive effect on CFP measures, return on equity and earnings per share, before and during the crises. The BKC and COV had no impact on the CFP. Practical implications As Ghana is still recovering from the 2017 to 2020 BKC and COV, the findings of this study highlight the need for managers to embrace END reporting and engagement strategies to improve CFP and firm reputation. Originality/value To the best of the authors’ knowledge, this study is the first to examine the effect of END on CFP in the context of before and considering the Ghanaian BKC and COV. In addition, it is one of the few studies that investigates how ENDs affect the CFP of Ghanaian-listed firms.

The impact of board capital on total value reporting: evidence from the Australian health care sector

PurposeThis study investigates the association between board gender diversity and multiple directorships, two board characteristics representing human, social and relational capital and the extent to which corporate reporting (using the double materiality principle) explains value creation for the organization, environment, society and the economy, which we define as total value reporting.Design/methodology/approachThis study uses a disclosure index developed based on the Integrated Reporting Framework and the Global Reporting Initiative (G4) guidelines to analyze disclosures made using the double materiality principle and reflect the value created by companies. The sample includes corporate reports of 102 Australian Securities Exchange (ASX) companies in the Health Care sector. Ordinary least squares regression analyses test the relationship between board gender diversity and multiple directorships and the quality of total value reporting (and its subcomponents) with appropriate control variables.FindingsFindings reveal that human, social and relational capital formed through multiple directorships and gender-diverse boards is positively related to the quality of total value reporting. Results hold for alternative measures and sensitivity tests of gender diversity and multiple directorships.Practical implicationsOur study reveals that (1) the <IR> Framework, when combined with the GRI Framework, effectively measures connected information quality under a double materiality perspective for total value reporting; (2) enhancing board effectiveness for total value reporting is achievable by increasing female directors and those with multiple directorships; (3) limitations in accessing experienced directors, particularly women, do not disadvantage countries like Australia and (4) directors holding multiple board positions are pivotal in disseminating best practices in corporate governance and reporting across various companies and industries.Social implicationsOur research reveals that gender diversity on corporate boards transcends mere representation, significantly enhancing how firms articulate their value to stakeholders. This finding underscores the urgency for public policies to advocate for increased female board representation. Additionally, our findings indicate that board diversity, encompassing gender, experience, industry background and cultural perspectives, can elevate transparency in reporting, crucial for attracting global investors, particularly in emerging markets.Originality/valueOur study is an early attempt to examine total value reporting – underpinned by double materiality – which reports on how companies create value for themselves, the environment and society. It is one of the first to identify drivers of reporting based on double materiality.

Corporate Sustainability Reporting and Stakeholders’ Interests: Evidence from China

This paper examines whether the adoption of the Global Reporting Initiative (GRI) by listed firms could enhance the alignment between corporate sustainability reporting and stakeholders’ interests in China. Drawing on content analysis of the environmental, social, and governance (ESG) reports of 48 selected listed firms and a questionnaire survey of 409 respondents, this study shows that most of the sampled firms with GRI adoption have more sustainability activities identified in the content analysis than their peers that do not follow the GRI guidelines in the same industries; both groups of firms have a similar pattern of disclosure frequency in light of the six dimensions developed in this study; and there is a disconnect between the stakeholders’ needs and the sustainability reporting practice of the sampled listed firms. The findings reflect that the current corporate social responsibility reporting practice could be interpreted as a strategic response to the government’s policy priorities, rather than a direct attempt to address stakeholders’ concerns.

DOES THE INSTITUTIONAL ENVIRONMENT AFFECT SUSTAINABILITY REPORTING? WORLDWIDE EVIDENCE

This study aims to examine the association between the institutional environment and the adoption of Global Reporting Initiative (GRI) guidelines. The research sample covers the largest 500 companies in the world, based on Fortune magazine’s 2020 ranking. A logistic regression is conducted to examine the relationship between the institutional environment and GRI adoption. The findings reveal that companies from countries with high environmental development and social progress and strong governance are more likely to release GRI-based sustainability reports. This study implies the significant role of country-level institutional factors in corporate reporting.

The Impact of Adherence to Sustainable Development, as Defined by the Global Reporting Initiative (GRI-G4), on the Financial Performance Indicators of Banks: A Comparative Study of the UAE and Iraq

Based on stakeholder theory, disclosing sustainable development information is fundamental to achieving a competitive advantage and improving a company’s financial performance. There has been a notable absence of studies examining the degree of adherence to sustainability based on the latest indicators from the Global Reporting Initiative (GRI-G4) Guidelines and its impact on financial performance, specifically within the banking sector in emerging Arab economies. Consequently, this study explores the correlation between the degree of adherence to sustainability and its dimensions (economic, social, and environmental) as defined by GRI-G4 and financial performance within a sample of banks in Arab nations (the United Arab Emirates “UAE” and Iraq) from 2019 to 2021. The research hypotheses were examined using a multiple linear regression model. The empirical findings reveal that, on average, UAE banks exhibit a sustainability adherence level of 57% according to GRI-G4, while their Iraqi counterparts demonstrate a significantly lower adherence of 17%. Notably, the degree of sustainability adherence substantially impacts the financial performance of banks in both countries. Furthermore, the results also indicated that the economic dimension of sustainability has a positive impact, while the environmental dimension has a negative impact, and in contrast, the social dimension does not significantly affect the financial performance of banks in both countries. This study provides insights for banks and policymakers to enhance their sustainability practices and elevate the level of disclosure, especially within Arab nations. This, in turn, can lead to greater compliance with sustainability standards, improved transparency, and reduced information asymmetry.

First Movers on Sustainable Banking" Global Basis Sustainable Finance Concept: Sharia Finance Period 2018-2020 Sector Performance Reporting Initiative (GRI)

The idea of sustainable finance is becoming more and more important in today's fast-paced global world, pushing financial institutions to take the effects on the environment, society, and economy into account when conducting business. The primary resource for reporting sustainable performance is the Global Reporting Initiative (GRI). Nevertheless, there are still few comprehensive studies on the application of BRI Syariah and Bank Muamalat's sustainable finance concept in the context of the sharia financial sector, particularly when it comes to evaluating the sector's performance from 2018 to 2020. The research question is: What impact does the sharia financial sector's performance have from the application of the concept of sustainable finance, as defined by "first movers on sustainable banking" and based on the Global Reporting Initiative (GRI)? and what and what is the impact of implementing the sustainable finance concept "first movers on sustainable banking" based on the Global Reporting Initiative (GRI) on the performance of the sharia financial sector ? . This kind of research is classified as qualitative, and it is specifically descriptive in nature. A secondary source is the data source that was used. Time triangulation, literature analysis, and documentation are some of the methods used in data collection. After that, the data was examined through data reduction, data visualization, and conclusion-making. Based on GRI guidelines, BRI Syariah has successfully implemented sustainable financial concepts with satisfactory economic performance, including market adaptation and moderate growth. Actions taken in the field of green banking, like funding TJSL, CSR, and sustainable agriculture as well as renewable energy, benefit society. In the areas of the economy, environment, and society, Bank Muamalat Indonesia has also been successful in putting the GRI sustainable finance concept into practice. Liquidity, fund raising, and efficient asset management all demonstrate its financial sustainability.

Evaluating Corporate labor practices and decent work disclosure aligned with Global Reporting Initiative (GRI) G4 Standards

This paper explores corporate labor practices and decent work disclosure by adopting a framework of Global Reporting Initiative (GRI) standards among listed manufacturing firms in Pakistan. For this purpose, the data collected from PSX-listed manufacturing companies over a five-year span started from the fiscal year 2017 through 2021. For this purpose, this study utilized 15 sub-dimensions of social sustainability based on the Global Reporting Initiative as benchmarks for corporate labor and decent work disclosure. The findings demonstrate that the TAI score of labor and decent work disclosure increased year over year by 18.40 in 2017 and reached 22.30 in 2021. Companies' annual or CSR repost encompasses labor practices and formally reports them. The checklist item "Employment" in this study's focused point and commonly disclosed element. Companies disclose less information regarding "labor-management relations" and "diversity and equal opportunity" issues. Only six companies, Fauji Fertilizer, Fatima Fertilizer, Atlas Honda, Crescent Steel, ICI Pakistan, and Akzo Nobel, have fully GRI-based disclosure practices, according to the brief document analysis. In contrast, other companies are on the way to following the GRI guidelines, SDGs, and labor laws. The findings imply that stakeholder theory and legitimacy are relevant in explaining labor disclosure (LAD) information.

The Impact of Sustainability Reporting Practices on Financial Performance from Power and Energy Sector Organisations in Sri Lanka

Sustainability reporting integrates the organisation's economic, environmental and social performance towards achieving better financial performance and has become a contemporary issue due to the absence of a precise model or a rigid regulatory framework in this arena. The main objective of this study is to examine the impact of sustainability reporting practices on the financial performance of power and energy sector organisations in Sri Lanka. Another objective of this study was to determine the level of sustainability reporting practices in power and energy sector organisations. Sustainability disclosures were measured using social, economic, and environmental sustainability initiatives, and the company performance was measured through Return on Assets (ROA) and Sales Growth (SG). This study was based on ten power and energy companies listed in CSE in Sri Lanka and Government corporations in the power and utility sectors. The sustainability disclosures in the annual reports of the selected companies for the past nine years (2012-2020) were analysed. Accordingly, the author derived a disclosure index from the Global Reporting Initiative (GRI) guidelines, which consist of 91 parameters to evaluate the content of the reports of organisations in the power and energy sector. The analysis of the study's data has been done by employing the panel data analysis research technique. Descriptive statistics have been used to assess the level of sustainability reporting, and correlation matrix and panel data analyses were used to determine the impact of sustainability reporting on financial performance in power and energy sector organisations in Sri Lanka. Based on the research findings of the study, it was concluded that there is a negative association between the level of sustainability reporting and Return on Assets (ROA) as well as Sales Growth (SG). Finally, sustainability reporting disclosure does not affect a firm’s financial performance (ROA and Sales Growth) in power and energy sector organisations in Sri Lanka. It is recommended that future research can be further improved by using mixed research methods.

True transparency or mere decoupling? The study of selective disclosure in sustainability reporting

Over the last two decades, sustainability disclosure has become a well-established practice among large and medium-sized companies. Despite the increasing number of sustainability reports published annually, concerns have arisen regarding their credibility. Skeptics view sustainability reporting as a form of decoupling – a symbolic practice disconnected from the actual practices. The purpose of this study is to investigate the phenomenon of decoupling in corporate sustainability, exemplified by selective disclosure. Drawing on the counter-accounting approach and institutional theory, we identify forms of selective disclosure and their drivers. We test our hypotheses on a sample of 333 negative events derived from MSCI’s controversies database. The analysis reveals that 69 % of negative events were reported selectively indicating a prevalence of decoupling in sustainability reporting. Selective disclosure manifests in three forms: vague disclosure, avoidance, and hypocrisy. Our findings indicate a higher likelihood of selective disclosure in the areas of labor rights/supply chain and human rights/community. Additionally, companies that publish integrated reports are less likely to engage in selective disclosure. Strikingly, neither Global Reporting Initiative (GRI) guidelines nor assurance measures can effectively deter companies from engaging in selective disclosure. Our findings underscore the urgency of transitioning from a sustainability reporting practice primarily driven by business-case considerations to a more dialogic accounting approach.

The use of corporate external environmental reporting in the evaluation of the state environmental policy

The condition for carrying out an evaluation of the environmental policy is the availability of relevant information. One source of this information could be corporate external environmental reporting. The aim of the article is to determine to what extent the applicable UE legal regulations, Global Reporting Initiative (GRI) and Task Force on Climate-related Financial Disclosures (TCFD) guidelines for corporate environmental reporting enable the use of the disclosed information by enterprises in the assessment of the state environmental policy. The content analysis of legal acts and guidelines was used in the research. The applicable EU legal regulations, GRI and TCFD guidelines enable the use of corporate environmental reporting in evaluating environmental policy mainly in terms of environmental efficiency and, to a small extent, in terms of cost-effectiveness and implementation feasibility.

Sustainability reporting and impact assessment at higher education institute in India

Learning outcomes An instructor engaged students in managing and reporting sustainability initiatives at an organisation. After completion of the case study discussion, the students will be able to critique the sustainability initiatives that can be undertaken at an organisation; understand sustainability reporting; analyse how result-based management aids in sustainability report preparation; recommend critical considerations for conducting a sustainability impact assessment by an educational institute. The case contributed to the growing knowledge base about reporting sustainability initiatives at an organisation and managing them to aid in decision-making. The case called for better integration between sustainability activities and reporting under organisations’ Sustainable Development Goals (SDGs) or environmental, social and governance (ESG) reporting. Case overview/synopsis Ajay served as the head of the management department and a leading member of the sustainability initiatives at University Alpha, Delhi NCR, India. He was assigned the task of publishing the university’s annual report. The management had requested him to consider preparing a standalone sustainability report for the university. He began the task by examining the benefits of standalone sustainability reporting. He proceeded to analyse the specifics of SDG reporting, SDG Accord reporting and ESG reporting using the Global Reporting Initiative guidelines. During discussions with a consultant, the necessary steps for creating an SDG-only report and an integrated SDG and ESG sustainability report were clarified. Guidance from an expert led to an intention to use a result matrix in preparing the sustainability report and ongoing impact assessment of SDG initiatives for reporting. The dilemma involved deciding between continuing with the sustainability initiative listing in the annual reports or opting for a standalone sustainability report. Critical considerations concerning the sustainability impact assessment of SDG-related activities at an educational organisation were also explored. Complexity academic level This case is intended for discussion in the graduate-level program in strategy, general management, sustainability management, environmental management and environmental economics. The case may also be used for participants in executive program. Supplementary material Teaching notes are available for educators only. Subject code CSS 4: Environmental Management.

Corporate Social Responsibility (CSR) Disclosure, Internationalization and Tax Avoidance: Evidence from Indonesia

This research aims to explore the association between corporate social responsibility (CSR) disclosure, internationalization and tax avoidance of manufacturing companies in Indonesia during (2013-2015). The three-year-period was chosen to represent the last three years before the Global Reporting Initiative (GRI) guidelines, which are used to measure the CSR disclosure, transitioned to GRI Standards, which are more structured, flexible and dynamic. Under the GRI guidelines regime, we expected to document the associations among the three main variables before significant impacts of several events on reporting, such as the transition to new standards, the launch of Sustainable Development Goals (SDGs) and the implementation of tax amnesty in Indonesia in 2016. Empirical analyses were conducted on a sample comprising 153 firm-year observations. Relationships between CSR disclosure and tax avoidance, internationalization and tax avoidance and the moderating role of internationalization were examined using multiple regression analyses, whereas t-test analysis was used to find any significant differences in each association. The results indicated that CSR disclosure positively affects tax avoidance. Meanwhile, internationalization has no effect on tax avoidance and has no moderating role in the positive relationship between CSR disclosure and tax avoidance. This study is among the early research studies which provide evidence from Indonesia, as one of the G20 countries, investigating the associations among CSR disclosure, internationalization and tax avoidance, as well as the moderating role of internationalization, which has not been given much attention in the literature.

CSR reporting, assurance, and firm value and risk: The moderating effects of CSR committees and executive compensation

This study focuses on the value-generating and risk-reducing function of corporate social responsibility (CSR) reporting, assurance, and Global Reporting Initiative (GRI) adoption by considering the moderating effects of CSR committees and executive CSR compensation. We retrieved an international dataset of 58,105 firm-year observations from the Thomson Reuters Eikon database over a long period of 16 years between 2004 and 2019. We find that while CSR reporting and external assurance are positively associated with firm value and industry-adjusted firm value, they are negatively associated with firm value volatility (i.e., risk). However, even though following GRI guidelines is not associated with firm value or industry-adjusted firm value, it is negatively associated with firm risk. Moderation analysis reveals that while CSR committees help strengthen the relationship between CSR reporting and external assurance and firm value, they fail to moderate the relation between GRI framework adoption and firm value. Furthermore, there are no significant results on the moderating effect of executive CSR compensation on firm value in any of the model configurations. However, further tests show that executive CSR compensation has a positive moderating effect between CSR reporting and assurance and accounting performance. Robustness tests confirm that the findings are largely robust to alternative sampling, methodology, and additional control variables.

Soft law regulation and labour rights reporting: a deficit in moral legitimacy?

ABSTRACT This paper compares and contrasts British and German transnational corporations’ (TNCs) reporting on the labour rights of workers in their global value chains (GVCs) for the years 2012 and 2018, using the Global Reporting Initiative (GRI) guidelines – an initiative that comes under the category of soft law regulation. Between these dates, regulatory changes took place in Britain and in the EU which had relevance to the reporting of labour rights issues more generally. Simultaneously the GRI reporting guidelines shifted to more flexible requirements in the transition from G3.1 to G4. This paper examines the consequences of these changes and finds that, in combination, these changes did not lead TNCs to improving the labour rights reporting. The paper suggests that even though reporting to international guidelines tends to be context-based, there was some convergence in this broadly negative outcome. This all suggests that there was an element of regulatory capture in the shifts to softer regulatory regimes. Conceptually, this points to a reduction in substantive disclosures and leads to a deficit in moral legitimacy and its displacement by more pragmatic legitimacy.

The impact of the COVID-19 pandemic on social and environmental reporting and financial performance of airlines operating in the UK

Purpose The COVID-19 pandemic has had an unprecedented impact on almost all sectors, but the airline industry has been globally most affected. Although recent years have witnessed an increase in attention to corporate social responsibility (CSR) reporting, the disclosure within the airline sector has been historically limited. This paper aims to explore the impact of the COVID-19 pandemic on social and environmental reporting and financial performance of airlines operating in the UK. Design/methodology/approach The paper applies content, textual and financial analysis to 16 company-year observations covering two fiscal years, 2018 and 2020, of eight airlines operating in the UK. A coding structure is based on the Global Reporting Initiative guidelines. NVivo is used for textual comparative analysis. Findings The research reveals that social disclosures exceeded environmental disclosures in the period before and during COVID-19. However, the pandemic has shown a significant increase in environmental rather than social disclosures. The study evidences the dominating themes of social and environmental disclosure, showing changes between 2018 and 2020. The study finds the extent of negative impact of COVID-19 on airlines’ financial performance. A period of crisis prompts companies to release more information, with a positive correlation between higher debt levels and increased disclosure. Originality/value The findings complement the emerging empirical evidence on the impact of COVID-19 on CSR reporting and demonstrate how challenges posed by the COVID-19 crisis affect the disclosure practices in the airline industry.

GRI and materiality: discussions and challenges

PurposeThis paper aims to offer an overview of key aspects of the journey to develop the Global Reporting Initiative (GRI) Framework and Guidelines, focusing on the Materiality construct. It provides a practitioner’s perspective of several issues related to this construct.Design/methodology/approachThis commentary is mainly based on publicly available technical documents, the analysis of papers related to the Materiality construct and a contextual review of the evolution of the main features of the GRI Guidelines and Standards.FindingsThis paper discusses the conundrum currently surrounding the Materiality construct and offers some reflections and suggestions about the challenges facing GRI.Practical implicationsClarification of the Materiality construct could reduce confusion and eventually allow for clear identification and differentiation of the financial and sustainability accounting fields at their interface.Social implicationsLanguage creates reality; an opportunity has arisen to bring appropriate and distinctive terminology to the sustainability reporting field, bridging the gap between competing logics.Originality/valueThis viewpoint is timely. It contributes a practitioner’s perspective to the current debate on the development of the Materiality construct.