Allen White, co-founder of GRI, follows up March’s debate

Mallen Baker [“GRI: sinking or swimming”, March 2008] credits GRI for “spreading a more robust approach to reporting.” But at the same time he sees GRI as failing to provide “…a robust enough quality process to create a standard…I just don’t see…that the next evolution of reporting is either dependent on it or waiting for it.” In short, too complex and too costly for the value it delivers.

Andy Savitz counters with a reality check, citing the thousand-plus organisations that use the guidelines, the rapid maturity of GRI relative to financial reporting, and the failure of many companies to take advantage of the flexibility embedded in the GRI framework. “…the world needs one standard, not several or even two. GRI gives us that ability…the answer is to make it better, not to move to something else.”

In many respects, the arguments in the Baker-Savitz exchange have been heard since GRI’s conception. A decade later, an unresolved question persists: Is it possible to create a non-financial reporting framework that simultaneously meets the information needs of multiple and diverse constituencies as compared to the single constituency – investors – served by financial reporting?

For GRI’s founders, the answer from the beginning was “yes,” and it remains “yes”. But it is a realistic yes. Achieving a globally generally-accepted reporting framework would take time, resilience and a blend of an excellent process plus excellent technical inputs. A decade ago, GRI faced essentially a blank slate on how to structure a process content that would achieve its goals. The reason it has become the de facto global standard is that the organisation never stops experimenting, listening and learning in its approach to both process and content.

To a level unprecedented in the standards world, GRI set an extraordinarily high (some would say too high) bar for stakeholder governance in its organisational and technical aspects. It has been complicated, contentious and costly, but in the end, its unwavering commitment to stakeholder governance has been a pillar of its legitimacy. At the same time, GRI has selectively borrowed from financial reporting while aggressively inventing new language and concepts. Reporting principles. Categories-aspects-indicators. Sector Supplements. Technical protocols. These and other aspects of the reporting framework are increasingly becoming the lingua franca of sustainability reporting worldwide.

In terms of adopters, Savitz indicates 1300 companies worldwide using the guidelines; Baker indicates 719. Why the discrepancy? Because the first approximates the number of total reports that have used GRI; the second represents the number of individual companies. The first measures the depth of market penetration; the second measures the breadth of penetration. It is not a question of right or wrong – just different perspectives on tracking GRI’s progress. Of course, neither metric captures the untold number, probably in the thousands, of companies that informally use the guidelines but do not formally register their reports with GRI.

GRI remains a work in progress, and the culture of continuous learning is integral to its leadership. Expectations of the initiative have been high since conception, in part owing to the GRI’s own boldness and in part because of external pressures from friends and critics alike. Baker’s view “…that reporting needs to go beyond where GRI can lead” is a challenge that GRI must confront. In my view, it will do so successfully, just as it has met the many voices of scepticism since its launch.

Reading the top tier GRI reports illustrates the power of world class sustainability reporting. They provide a penetrating insight into the mind of the company, its quality of management and its prospects for the future. They develop trust and credibility with stakeholders, as Savitz observes, the most important assets of any company, regardless of scale, sector or location. The challenge for GRI, and all those who believe in the power of disclosure to create positive change, is to take actions now that will ensure a future of thousands of such world class reports within in the next decade.

Allen L White
Co-founder and former CEO
GRI

If you would like to take part in the debate surrounding the GRI, or just want to learn more about sustainability reporting, you might be interested in a conference we're doing on CR reporting and communications on 25-26 November 08 in London. GRI chief executive Ernst Ligteringen will be speaking at it. The conference is mainly about how to create the perfect CR report and engage all your key stakeholders in the process.

It's called the CR Reporting & Communications Summit. For more info on the event, you can click here: www.ethicalcorp.com/reporting/