Climate Clarity: GRI Drops 102 and 103
The Global Reporting Initiative (GRI) has launched GRI 102: Climate Change and GRI 103: Energy, turning up the heat on companies to disclose beyond emissions metrics and toward climate justice, energy transition, and real-world impacts.
“Climate change is a deeply human issue, as much as it is an environmental one,” said GRI CEO Robin Hodess, “and these new GRI Standards are unique in bringing these dimensions together.”
- Transition plan disclosures tied to scientific evidence
- Transparency on fossil fuel phaseout timelines
- Reporting on just transition impacts on workers, communities, and vulnerable groups
- Greater scrutiny of carbon credits and GHG removals
GRI 103 shifts energy reporting to focus on:
- Renewable sourcing
- Energy efficiency and reduction
- Broader energy transition impacts on people, the economy, and the environment
“GRI 102 and 103 will enable transparency and action on climate and energy impacts that drives decision-making by companies, regulators, investors and other stakeholders.” — Robin Hodess
Reporting Harmony: Interoperability by Design
To ease adoption and improve reporting consistency, GRI’s new standards align with major frameworks:
- IFRS S2: Recognised for equivalence on Scope 1, 2, and 3 emissions
- EFRAG’s ESRS: Cross-compatibility with the EU’s CSRD
- SBTi: Climate targets aligned with Corporate Net Zero Standard
“We are working together with the GRI to enhance the interoperability and efficiency of reporting using our respective standards.” — Sue Lloyd, ISSB Vice Chair
“This will enable companies to prepare just one set of GHG emissions disclosures in accordance with IFRS S2, to meet the requirements in both standards.” — Lloyd
Scope 2 Gets a Hard Reset
Meanwhile, the GHG Protocol’s Scope 2 Technical Working Group is redrawing the rules on how companies report electricity-related emissions, addressing outdated loopholes in clean energy claims.
The problem? Under current guidance, a company can claim 100% renewable energy use by buying certificates even if the power:
- Was generated in a different region
- At a different time
- And never powered its operations
Fixing the Disconnect: Hourly Matching + Marginal Impact
The proposed Scope 2 overhaul introduces two new mechanisms:
- Hourly and regional matching: Electricity emissions reporting must reflect when and where power is consumed.
- Marginal Emissions Impact: A new impact-based metric that shows how much fossil fuel generation is displaced by clean energy.
Easing the Landing: Feasibility in Focus
Feasibility considerations include:
- Allowing legacy renewable contracts
- Use of estimated data with standard hourly profiles
- Exemptions for small electricity users
“The Marginal Emissions Impact metric is one way of addressing feasibility: it offers companies a meaningful way to demonstrate climate benefit even if their clean energy purchases don’t meet all the new inventory requirements.”
The new Scope 2 standard is expected post-2027, with consultation launching later in 2025 and a phased implementation window to follow.
What Comes Next
- 2025: GRI 102 and 103 go into effect
- Late 2025: Scope 2 public consultation begins
- 2027+: Final Scope 2 revisions published
“By supporting organizations to disclose their climate change impacts in a comprehensive and comparable way… GRI 102 and 103 have a key role in the advancement of a cohesive and effective global system for climate reporting.” — Carol Adams, GSSB Chair
Conclusion: Toward Smarter, Stronger Climate Accountability
The latest GRI standards and the forthcoming Scope 2 revisions mark a clear shift in climate and energy disclosure from checkbox reporting to credible, science-aligned accountability. Companies are no longer just being asked what they emit but how, where, and why they act, and who is affected in the process.
Together, these frameworks are reshaping ESG from the ground up:
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GRI 102 and 103 embed just transition and fossil exit strategies at the core of sustainability reporting.
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Scope 2 reforms aim to restore trust in clean energy claims by linking them to actual grid behavior and climate outcomes.
As climate expectations evolve, the message is clear: transparency must match reality. Businesses that proactively align with these evolving standards won’t just avoid greenwashing risks they’ll help lead the shift toward a more honest, effective, and inclusive net-zero future.
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com. Cover Photo Credit: wikimedia commons
