The Global Reporting Initiative (GRI) - the world’s leading sustainability reporting standard-setter - officially released the 2025 updates to two key standards:

🔹 GRI 103: Energy 🔹 GRI 102: Climate Change

These updates reflect a global shift in expectations for climate transparency, and help businesses align ESG reporting practices with emerging international frameworks such as IFRS S2 and the ESRS under the EU CSRD.

GRI (Global Reporting Initiative) provides the most widely used standards globally for organizations to disclose their environmental, social, and governance (ESG) impacts.

Unlike financial-oriented frameworks such as IFRS S1/S2, which focus on how ESG affects enterprise value, GRI emphasizes the outward impacts a company has on society and the environment - following the principle of double materiality.

The 2025 updates to GRI 103 and 102 also demonstrate GRI’s commitment to interoperability with other global standards, helping companies reduce complexity and improve reporting consistency across jurisdictions.

Key Updates in GRI 103 and 102 (2025)

1. Stronger Disclosure on Climate Transition Plans

GRI 102 now includes specific requirements for disclosing a climate transition plan, including:

  • Net-zero targets
  • Scientific basis (e.g., SBTi alignment)
  • Governance and accountability structures
  • Integration with corporate strategy and internal policies

Companies are also required to disclose climate adaptation actions in response to physical risk assessments.

2. Clearer Scope 1, 2, and 3 Emissions Boundaries

The revised standards clarify emissions reporting boundaries:

  • Scope 1: Direct emissions from owned/controlled operations
  • Scope 2: Indirect emissions from purchased electricity, heat, or steam
  • Scope 3: Indirect emissions across the value chain

Full Scope 3 disclosure is strongly encouraged, especially given growing investor scrutiny and upcoming regulatory requirements.

3. Introduction of Energy Intensity and Efficiency Indicators

GRI 103 now goes beyond energy consumption totals and introduces requirements for disclosing energy intensity - measured per unit of output, revenue, or other relevant denominator - to reflect operational efficiency and climate performance.

4. Interoperability with IFRS and CSRD

Both standards have been designed to integrate smoothly with:

  • IFRS S2 (climate-related financial disclosures)
  • ESRS E1 (under the EU Corporate Sustainability Reporting Directive - CSRD)

This allows companies to use GRI as a foundation for broader ESG compliance, while minimizing duplication of effort.

What Should Companies Do Now?

Although the new standards become effective in January 2026, GRI strongly encourages early adoption. To prepare, companies should begin:

  • Assessing their current GHG data capabilities, including Scope 3
  • Developing or revisiting their climate transition and adaptation plans
  • Defining relevant energy KPIs tied to operational strategy
  • Embedding ESG metrics into internal governance and management systems

How FTK Supports ESG Readiness

At FTK, we are working closely with clients across industries to update ESG reporting practices in line with the 2025 GRI revisions.

📩 Get in touch to explore how your organization can prepare for next-generation ESG standards.

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