GRI Standards – Endurisk Advisory – Risk, Ethics and Sustainability Consultants

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GRI 103: Energy 2025 — Impact on Strategy

ESG, GRI Standards, Sustainability, Sustainability Reporting / Tauwfiq Wahidi

GRI 103: Energy 2025 — Impact on Strategy As the pressure mounts on businesses to show measurable progress on energy and climate commitments, the Global Reporting Initiative (GRI) has responded with a significantly more structured and outcome-oriented standard: GRI 103: Energy 2025. This updated standard offers a clear framework for companies to report how they manage their energy consumption, the associated environmental and social impacts, and their transition to more sustainable energy systems. For companies that have identified energy as a material topic, this standard is not just another reporting template — it is a roadmap to strengthen internal energy governance, assess risk and opportunity across the value chain, and disclose performance with credibility. What Is GRI 103: Energy 2025? GRI 103: Energy 2025 is a revised topic-specific standard under the GRI Standards framework, designed to guide companies in disclosing how they manage their energy-related impacts. Unlike previous iterations, which leaned heavily on activity-based data, this update puts more emphasis on governance, policies, performance metrics, and the systemic effects of energy consumption across the value chain. The standard supplements GRI 3: Material Topics, particularly Disclosure 3-3, which requires companies to explain how they manage any topic deemed material to their sustainability performance. If energy is considered material, GRI 103: Energy becomes applicable. Importantly, this new version will take effect for all reporting periods starting on or after 1 January 2027. Organizations are encouraged to begin early adoption to strengthen their readiness and reduce future compliance gaps. What Does the Standard Require? The standard includes two major areas: 1. Topic Management Disclosure (103-1): This focuses on energy-related governance, commitments, stakeholder engagement, and investment strategies. 2. Topic-Specific Disclosures (103-2 to 103-5): These cover quantitative and qualitative disclosures on consumption, energy intensity, and reductions across the business and its value chain. Let’s look at these areas in more detail. Topic Management (Disclosure 103-1) Organizations must disclose their policies and commitments on energy, especially how they relate to: The disclosure also requires companies to discuss how they engage with internal and external stakeholders — such as employees, suppliers, and local communities — to shape and inform their energy approach. Firms must also report on: Topic-Specific Disclosures (103-2 to 103-5) These focus on data-driven disclosures: How GRI 103 Can Help Transform Energy Management Within Organizations At first glance, GRI 103: Energy 2025 may appear to be a compliance or reporting tool. But for forward-looking organizations, it is much more — it provides a framework for internal transformation. With an eye on the future, organisations can use the learnings and experience from GRI 103 to set a strategy for energy transition. Here are a few pointers: 1. Establishing Strategic Governance on Energy By requiring companies to describe energy policies, commitments, and decision-making structures, the standard pushes leadership teams to treat energy as a strategic priority rather than an operational issue. It encourages the establishment of cross-functional ownership — involving finance, operations, procurement, and sustainability — in shaping the organization’s energy roadmap. 2. Bringing Visibility to Energy Use Across Operations Most companies understand their utility bills; fewer understand how energy is consumed across different activities or products. GRI 103 forces a granular mapping of energy use — by function, facility, and process — and creates the basis for identifying inefficiencies, unnecessary loads, or underutilized assets. This visibility supports better resource allocation and targeted investments in energy performance upgrades. 3. Embedding Energy Efficiency and Circularity into Core Processes The requirement to disclose energy intensity metrics and reductions — alongside the initiatives responsible for those gains — encourages continuous improvement. This drives companies to embed efficiency principles into equipment procurement, process design, and product development. It also aligns with broader circular economy thinking: reducing waste and improving energy performance across the product lifecycle. 4. Engaging Suppliers and Customers for Energy Impact GRI 103 includes value chain disclosures (upstream and downstream), nudging companies to collaborate with suppliers, service providers, and customers to optimize energy use beyond their own boundaries. This is critical, especially in high-emissions sectors like manufacturing, logistics, food, or consumer goods. Organizations can use the standard as a conversation starter for supplier performance programs, renewable energy sourcing, or redesigning high-energy products. 5. Building Credible Foundations for Net-Zero Commitments As more companies commit to net-zero targets, GRI 103 provides a way to link ambition with evidence. The standard requires companies to be transparent about: This rigor not only supports investor trust but also helps businesses avoid reputational risks linked to greenwashing. What Should Companies Do Now? Though the standard becomes mandatory from 2027, proactive steps today will enable a smoother transition and stronger strategic positioning. Confirm whether energy remains a material topic for your organization. If it is, begin aligning your existing management approach and disclosures with GRI 103. Map your current energy reporting — both internal and public — against the new disclosure requirements. Identify where data, systems, or policies fall short. GRI 103 requires inputs from multiple teams. Set up a working group that includes sustainability, finance, operations, and procurement functions. Begin dialogues with suppliers and distributors to understand their energy footprints. Collect data where possible and develop shared performance expectations. Consider smart metering, IoT devices, and energy analytics platforms that can enhance real-time monitoring and build a more detailed energy inventory. Use the framework to define short-, medium-, and long-term energy reduction or renewable energy goals. Link these to investment planning and operational KPIs. GRI 103: Energy 2025 represents a maturing of sustainability disclosure — moving beyond static metrics to strategic transparency and systemic change. For business leaders, it offers not just a reporting lens, but a transformation pathway. Organizations that embrace the standard early can leverage it to drive internal alignment, supply chain collaboration, and operational efficiency — all while building credibility with stakeholders in a climate-conscious world. How Endurisk Can Support Your Transition Endurisk Advisory works with organizations to embed sustainability and energy governance into core decision-making. We support clients in aligning with GRI 103: Energy 2025 by conducting materiality assessments, mapping energy

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Preparing for GRI 102: Climate Change

Preparing for GRI 102: Climate Change The global climate challenge is reaching an inflection point—and so are expectations from businesses. As financial regulators, investors, and consumers converge around demands for greater transparency and action on climate issues, companies must move beyond general pledges to deliver credible, structured, and measurable plans. The Global Reporting Initiative’s (GRI) newly released GRI 102: Climate Change 2025 is a pivotal response to this global need. The standard was released on 26 June 2025 This standard, which applies to sustainability reports published on or after January 1, 2027, provides a dedicated framework for organizations to disclose their climate change-related impacts and the actions they are taking to manage them. Critically, GRI 102 goes beyond emissions tracking; it brings a strategic lens to transition planning, adaptation readiness, and the principle of a just and inclusive transition. For companies that wish to lead—or even keep pace—this standard demands attention, preparation, and action now. What is GRI 102: Climate Change 2025? GRI 102 is the dedicated Global Reporting Initiative (GRI) standard focused on climate change. It builds upon the foundation of GRI’s modular reporting framework and serves as a deep dive into an organization’s climate change mitigation and adaptation actions. The central aim of the standard is to enhance transparency around an organization’s impact on the climate and how it manages those impacts. It places strong emphasis on climate transition planning, adaptation, and just transition principles. Importantly, it also expects organizations to be aligned with global scientific efforts to limit warming to 1.5°C, consistent with the Paris Agreement. What Does the Standard Require? The disclosures under GRI 102 are structured into two major sections: Topic Management Disclosures and Topic Disclosures. 1. Topic Management Disclosures These focus on how an organization manages climate-related risks and opportunities: Both disclosures require information on: 2. Topic Disclosures These require specific, quantifiable data points: Scope-Wise GHG Emissions Reporting: A Deeper Dive A significant portion of GRI 102’s rigor lies in its detailed GHG emissions disclosures, separated by Scope 1, 2, and 3. This granularity allows stakeholders to understand where emissions originate, how they are measured, and how they are being reduced. Disclosure 102-5: Scope 1 GHG Emissions Scope 1 covers direct emissions from owned or controlled sources. Organizations are required to: This level of disclosure ensures consistency, transparency, and comparability over time. Disclosure 102-6: Scope 2 GHG Emissions Scope 2 includes indirect emissions from the use of purchased energy (electricity, heating, cooling, steam). Key requirements: This helps investors assess not only the emissions footprint, but also the energy procurement strategy of the company. Disclosure 102-7: Scope 3 GHG Emissions Scope 3 encompasses all other indirect emissions across the value chain—often the largest share of a company’s footprint. GRI 102 requires: By standardizing Scope 3 disclosures, GRI is pushing companies toward value chain accountability—a critical shift as more businesses assess supplier and customer-side emissions. Why This Standard Matters GRI 102 signals a shift in expectations. Organizations are being asked to demonstrate that they are not only measuring their emissions, but also planning, investing, and transitioning their operations in line with a net-zero future. It recognizes that climate action is not just technical—it is strategic. Companies need to rethink supply chains, redesign products, repurpose capital, and retrain their workforce. And they must do this transparently, accounting for both their environmental footprint and their social responsibility to workers and communities. What Companies Should Start Doing Now With the 2027 reporting deadline on the horizon, companies have a narrow but critical window to prepare. Below are five practical and strategic steps organizations should take now: 1. Understand Your Baseline Before setting targets or designing a transition plan, organizations must understand their current emissions profile across Scope 1 (direct), Scope 2 (indirect from energy), and Scope 3 (value chain) emissions. For many, Scope 3 will be the most complex and material. A comprehensive GHG inventory is the foundation for everything else. 2. Develop a Transition Plan A transition plan should not be an appendix—it must be central to business strategy. Start by identifying your most material emissions sources and the biggest levers for reduction. Then define clear milestones: Where do you want to be in 2030? In 2040? How will you phase out fossil fuels? What technologies or operating model shifts will be required? Importantly, GRI expects this plan to be costed. That means assigning capital and operational expenditure, which in turn requires leadership buy-in and financial integration. 3. Build Governance and Accountability Assign clear roles for climate transition oversight. This may involve setting up a sustainability steering committee or embedding responsibilities within the board and executive team. GRI 102 also asks how remuneration, incentives, and performance metrics are linked to climate action. This is an opportunity to hardwire climate ambition into decision-making. 4. Prepare for Social Impacts The emphasis on just transition means that companies must look beyond carbon and assess how the transition will affect jobs, communities, and livelihoods. Are roles being displaced by automation or renewable technologies? Are employees being trained in new skills? Are local communities being consulted? Organizations will need robust stakeholder engagement processes and risk management systems to manage these impacts. 5. Align Reporting with Broader Standards GRI 102 is aligned with ISSB S2 and can be used together. GRI 102 is consistent with the Corporate Sustainability Reporting Directive (CSRD), the Task Force on Climate-related Financial Disclosures (TCFD), and Science Based Targets initiative (SBTi). Companies reporting under CSRD will find strong alignment between GRI 102’s transition plan requirements and those in the European Sustainability Reporting Standards (ESRS E1). Rather than treating these as separate exercises, companies should integrate their sustainability data collection, governance, and reporting systems now to avoid duplication and improve consistency. GRI 102 sets a high bar, but it reflects a growing consensus: meaningful climate action cannot wait. For businesses, this is a moment of strategic reflection. Do we have a credible plan to navigate a low-carbon future? Are we prepared for regulatory scrutiny and stakeholder expectations? Are we aligning