GRI 3: MATERIAL TOPICS 2021 establishes the process for determining material topics + managing them. 3 DISCLOSURES: (a) GRI 3-1 PROCESS TO DETERMINE MATERIAL TOPICS - 4-step process: (1) UNDERSTAND THE ORGANIZATIONS CONTEXT - sectoral + geographic + temporal + business model + activities + relationships; (2) IDENTIFY ACTUAL AND POTENTIAL IMPACTS on economy + environment + people (including human rights) across the value chain; (3) ASSESS THE SIGNIFICANCE OF IMPACTS - severity (scale + scope + irremediable character) + likelihood; (4) PRIORITIZE THE MOST SIGNIFICANT IMPACTS as material topics; (b) GRI 3-2 LIST OF MATERIAL TOPICS - reported with explanation of changes from previous reporting period; (c) GRI 3-3 MANAGEMENT OF MATERIAL TOPICS - for each material topic disclose (i) actual + potential impacts; (ii) policies + commitments to manage; (iii) actions to manage impacts; (iv) tracking of effectiveness; (v) engagement with stakeholders. DOUBLE MATERIALITY: GRI 3 + GRI Standards focus on IMPACT MATERIALITY (organizational impacts on economy + environment + people); CSRD/ESRS adopts DOUBLE MATERIALITY (impact materiality + financial materiality); GRI + EFRAG have established INTEROPERABILITY between GRI Standards + ESRS - companies reporting GRI Standards can report ESRS-aligned with mapping. IMPACT vs FINANCIAL MATERIALITY: ESRS combines both; ISSB focuses on financial materiality only (impacts on enterprise value); GRI Standards focus on impact materiality; complementary frameworks for double materiality. NOTE: 2024 revision of GRI 3 + GRI 1 + GRI 2 anticipated for further interoperability with ESRS + ISSB; consultation ongoing.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.