REACTION PAPER 8

TOPIC 9 : “GRI 102 - GENERAL DISCLOSURE”

BY : GROUP 2
 DINI RAHMADIANTI (1610531008)
 BELINDA NABILA (1610533020)

If previously we talked about GRI-101 which reflecting the foundation of GRI itself, where
it is the starting point for using the GRI Standards. We believe this foundation has essential
information on how to use and reference the Standards. Hence, the continuation of this
foundation is GRI 102. As stated on the GRI 102 statement, there are three universal Standards
that apply to every organization preparing a sustainability report, which are GRI 101:
Foundation, GRI 102: General Disclosures and GRI 103: Management Approach. Hence those
three standards are mandatory to be applicable in a company. Difference with GRI 200, GRI
300 and GRI 400 that discussed about topic specific standards. GRI 102 itself discussed about
the general disclosure. What kind of disclosure? This standard is aim to regulate how to report
contextual information about an organization, to report on contextual information about itself
and its sustainability reporting practices. “GRI 102: General Disclosure itself are including the
organizational profile, strategy, ethics and integrity, governance, stakeholder engagement and
reporting practice.” We agreed if those six items are included to general disclosure because if
the sustainable company could fulfil those six items it means it could explain about the entire
organization generally.

“GRI Standards include of Requirements, recommendations and guidance” whether it is

GRI 101, 102, 200, 300 OR 400. They must include of those three items. Requirements, we
know that it is refer to mandatory instruction. In the text, requirements are presented in bold
font and indicated with the word ‘shall’. First, Requirements are to be read in the context of
recommendations and guidance; however, an organization is not required to comply with
recommendations or guidance in order to claim that a report has been prepared in accordance
with the Standards.Second, Recommendations, These are cases where a particular course of
action is encouraged, but not required. In the text, the word ‘should’ indicates a recommendation.
Last, Guidance, These sections include background information, explanations and examples to
help organizations better understand the requirements. “An organization is required to comply
with all applicable requirements in order to claim that its report has been prepared in
accordance with the GRI Standards” that’s standards what supposed to be.

“Organizational Profile are included of Name of the organization, Activities brands

products and services, Location of headquarters, Location of operations, Ownership and legal
form, Markets served, Scale of the organization, Information on employees and other workers,
Supply chain, Significant changes to the organization and its supply chain, approach, External
initiatives, and Membership of associations.” We believed that by this contextual information
which is these organizational profile is important to help stakeholders understand the nature of
the organization and its economic, environmental and social impacts. In the organizational
profile, not all items that have those three (Requirements, Recommendation and Guidance).
Information on employees and other workers is the only element of organizational profile that
include of all those three.

The second one is strategy. These disclosures provide an overview of an organization’s

strategy with respect to sustainability, in order to provide context for subsequent, more detailed
reporting using other GRI Standardts. The strategy section can draw on information provided in
other parts of the report, but is intended to give insight on strategic issues rather than to
summarize the content of the report. Strategy is consist of Disclosure 102-14 : Statement from
senior decision-maker and Disclosure 102-15 : Key impacts, risks, and opportunities. One of
the highlights in Disclosure 102-14 is “strategic priorities and key topics for the short and
medium-term with respect to sustainability, including observance of internationally-recognized
standards and how such standards relate to long-term organizational strategy and success”
quotations from the recommendation. So by the report about this from senior decision maker
such as the CEO, chair, etc) the company is not talk about their strategy blablabla but they talk
about their priorities strategies, their concern on short or medium term regarding sustainability
and how is their compliance of GRI standards.

The third one is ethics and integrity. This disclosure is consist of Disclosure 102-16 about
Values, principles, standards, and norms of behavior and Disclosure 102-17 about Mechanisms
for advice and concerns about ethics. In this section, the term ‘business partner’ is used in relation
to both disclosures. In the context of this GRI Standard, 'business partners' include, among others,
suppliers, agents, lobbyists and other intermediaries, joint venture and consortia partners,
governments, customers, and clients.

The next disclosure is Governance. This disclosure is the compactness disclosure since it
include of many disclosure such as Disclosure 102-18 Governance structure, Disclosure 102-19
Delegating authority, Disclosure 102-20 Executive-level responsibility for economic,
environmental, and social topics, Disclosure 102-21 Consulting stakeholders on economic,
environmental, and social topics, Disclosure 102-22 Composition of the highest governance body
and its committees, Disclosure 102-23 Chair of the highest governance body, Disclosure 102-
24 Nominating and selecting the highest governance body, Disclosure 102-25 Conflicts of
interest, Disclosure 102-26 Role of highest governance body in setting purpose, values, and
strategy, Disclosure 102-27 Collective knowledge of highest governance body, Disclosure 102-
28 Evaluating the highest governance body’s performance, Disclosure 102-29 Identifying and
managing economic, environmental, and social impacts, Disclosure 102-30 Effectiveness of risk
management processes, Disclosure 102-31 Review of economic, environmental, and social topics,
Disclosure 102-32 Highest governance body’s role in sustainability reporting, Disclosure 102-
33 Communicating critical concerns, Disclosure 102-34 Nature and total number of critical
concerns, Disclosure 102-35 Remuneration policies, Disclosure 102-36 Process for determining
remuneration, Disclosure 102-37 Stakeholders’ involvement in remuneration, Disclosure 102-38
Annual total compensation ratio, and Disclosure 102-39 Percentage increase in annual total
compensation ratio.

The next disclosure, Stakeholder Engagement. These disclosures give an overview of an

organization’s approach to stakeholder engagement. They are not limited to engagement that
was conducted for the purposes of preparing the report. These disclosures are included of
Disclosure 102-40 about List of stakeholder groups, Disclosure 102-41 about Collective
bargaining agreements, Disclosure 102-42 about Identifying and selecting stakeholders,
Disclosure 102-43 about Approach to stakeholder engagement and Disclosure 102-44 about
Key topics and concerns raised. Examples of stakeholder groups are civil society, customers ,
employees and workers who are not employees, trade unions, local communities, shareholders and
providers of capital, suppliers.

The last but not least, the Reporting Practice. These disclosures give an overview of the
process that an organization has followed to define the content of its sustainability report. They
also review the process it followed to identify its material topics and their Boundaries, along
with any changes or restatements. Moreover, they provide basic information about the report,
the claims made about the use of the GRI Standards, the GRI content index, and the
organization’s approach to seeking external assurance. These disclosures are aimed to disclosed
about Entities included in the consolidated financial statements, Defining report content and topic
Boundaries, List of material topics, Restatements of information, Changes in reporting, Reporting
period, Date of most recent report, Reporting cycle, Contact point for questions regarding the
report, Claims of reporting in accordance with the GRI Standards, GRI content index and
External assurance.