GRI’s Updated Sustainability Standards on Climate Change and Energy

The ever-increasing carbon emissions signal for immediate actions to reduce the levels. While decarbonization efforts have been highlighted globally, especially since the Paris Agreement, there needs to be standards to guide its implementation and impacts. The Global Reporting Initiative (GRI) has published the Climate Change and Energy sustainability standards to encourage organizations on their climate actions.

Increasing Carbon Emissions

Global carbon emissions continue to rise. In 2024, the global CO2 emissions reached 37.8 gigatonnes (Gt), a 0.8% increase from the previous year. Rising energy demand associated with economic and population growth is a major reason for this increase.

A significant portion of global carbon emissions comes from businesses. Research by the Carbon Majors examining global CO2 emissions between 1854 and 2022 shows that over 70% of carbon emitted can be attributed to 78 corporate and state producing entities. Other than carbon emissions, extractive business activities are also linked to cases of biodiversity loss and workers exploitation. This underscores the vital role of businesses in taking accountability of their operations and shifting to more responsible business practices in respect to human rights and the environment.

GRI’s Updated Sustainability Standards

One of the ways for businesses and organizations to demonstrate their commitments to responsible environmental and social conducts is by adopting sustainability standards. Throughout the years, various sustainability standards have emerged to answer needs across sectors, some examples include the GRI 101: Biodiversity 2024 standard, the IFRS S1 and IFRS S2 standards by the International Sustainability Standard Board (ISSB), and the European Sustainability Reporting Standards.

In June 2025, the GRI published updated Climate Change and Energy sustainability standards to encourage accountability and accelerate climate actions from organizations. The GRI 102: Climate Change standards establish science-based emission reduction targets that align with global climate goals. One of the major highlights in this standard is the incorporation of just transition principles, which include metrics to assess their impacts on workers, local communities, and Indigenous Peoples.

Meanwhile, the GRI 103: Energy centers responsible energy use in a company’s climate change mitigation approach. Some notable updates from the 2016 version include the incorporation of disclosure on energy policies and commitment; energy consumption and generation in the organization and its value chain; energy intensity; and reduction of energy consumption.

GRI also highlights the standards’ interoperability with other existing standards, including the IFRS S2 and GHG Protocol. “By using a common foundation for emissions data, companies can meet global reporting needs efficiently and consistently. This interoperability helps reduce duplication, increase transparency, and accelerate meaningful climate action,” said Pankaj Bhatia, Co–Director at GHG Protocol (WRI).

Strengthening Corporate Accountability

Both standards will come into effect on January 1, 2027. Adopting these standards should enable businesses to participate in reducing emissions, as well as strengthen their corporate accountability from investor and consumer perspectives. This participation, along with support and collaboration from governments and civil society, is hoped to create meaningful progress towards the end goal of halting the climate crisis.

Editor: Nazalea Kusuma

Kresentia Madina

Reporter at Green Network Asia | Website |  + postsBio

Madina is the Assistant Manager of Stakeholder Engagement at Green Network Asia. She holds a bachelor’s degree in English Studies from Universitas Indonesia. As part of the GNA In-House Team, she supports the organization's multi-stakeholder engagement across international organizations, governments, businesses, civil society, and grassroots communities through digital publications, events, capacity building, and research.

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