How GRI Standards Strengthen ESG Reports for Investors

Global Reporting Initiative (GRI) Standards help companies build ESG reports that are credible, comparable, and easier to review. In Indonesia, ESG reporting is no longer only about reputation. It is increasingly connected to compliance, financing, tenders, investor confidence, and supply chain requirements.  

Under POJK No. 51/POJK.03/2017, financial services institutions, issuers, and public companies in Indonesia are required to submit sustainability reports. GRI Standards offer a practical framework to help businesses strengthen that reporting foundation. 

Key Takeaways

• GRI Standards are a globally recognized ESG reporting framework structured around economic, environmental, and social impacts.
• In Indonesia, POJK No. 51/POJK.03/2017 requires financial services institutions, listed issuers, and public companies to submit annual sustainability reports.
• OJK’s proposed amendments and PSPK 1/PSPK 2 (aligned with IFRS S1/S2) are raising disclosure expectations.
• GRI covers impact materiality; IFRS-aligned standards cover financial materiality — most Indonesian companies will eventually need both.
• The biggest implementation challenges are fragmented data, weak materiality, and late preparation.

What are GRI Standards in ESG Reporting? 

GRI Standards are a globally recognized sustainability reporting framework, issued by the Global Reporting Initiative, that helps organizations disclose their economic, environmental, and social impacts in a structured, transparent format. They make ESG performance easier for stakeholders to compare and trust. 

The framework has three groups: 

Standard Group	Purpose	Examples
Universal Standards	Apply to all organizations	Foundation, general disclosures, material topics
Sector Standards	Industry-specific reporting	Oil & gas, agriculture, coal, mining
Topic Standards	Specific ESG issues	Emissions, water, waste, tax, OHS

Why Do Companies Use GRI Standards for ESG Reporting? 

Companies use the GRI Standards because they provide a globally recognized framework for reporting on ESG impacts. This makes sustainability information easier for investors, regulators, lenders, customers, and business partners to understand and compare. 

For businesses in Indonesia, GRI can also support clearer sustainability reporting under POJK 51 by helping companies organize ESG data, explain material topics, and present disclosures with stronger evidence. 

Benefits of Using GRI Standards for ESG Reporting 

Key benefits include: 

• Global Comparability: Uses a framework recognized across markets and industries. 
• Better Benchmarking: Helps compare performance against laws, norms, codes, standards, and voluntary initiatives. 
• Progress Tracking: Allows companies to compare ESG performance across reporting periods. 
• Stronger Credibility: Makes ESG claims easier to support with structured disclosures. 
• Clearer Stakeholder Communication: Helps report users understand and use sustainability information more effectively.

READ MORE:

• Case Study: Building an ESG Strategy for Indonesia’s Railway Sector
• Understanding ESG Scores: A Key Indicator for Sustainable Business Practices
• ESG Rating Explained: What It Is, How It Works, and Why It Matters

What Do Companies Need to Report Under GRI Standards? 

Companies must disclose information based on their most significant economic, environmental, and social impacts. A complete GRI report includes four layers: 

• Organizational Context: Activities, governance, strategy, stakeholder engagement 
• Material Topics: Issues most relevant to the company’s impacts 
• Topic-Specific Disclosures: Data and management approach for each topic 
• GRI Content Index: A navigation table showing where each disclosure sits 

GRI vs IFRS S1 and IFRS S2: What is the Difference? 

GRI focuses on the company’s impact on the outside world; IFRS S1 and S2 focus on how sustainability issues affect the company’s financial performance. 

Aspect	GRI Standards	IFRS S1	IFRS S2
Focus	Economic, environmental, and social impacts	General sustainability-related risks and opportunities	Climate-related risks and opportunities
Reporting lens	Impact materiality	Financial materiality	Climate-related financial materiality
Main audience	Stakeholders, including investors, regulators, customers, employees, and communities	Investors and users of general-purpose financial reports	Investors and users of general-purpose financial reports
Common use	Sustainability reports and broader ESG impact disclosure	Sustainability-related financial disclosure	Climate-related disclosure, including climate risks, opportunities, metrics, and targets
Business value	Shows how the company manages and reports its wider ESG impacts	Shows how sustainability issues may affect business prospects	Shows how climate issues may affect business prospects

Most Indonesian companies will eventually need to comply with both GRI and IFRS standards. Not sure where to start? InCorp can review your ESG reporting readiness, identify gaps, and guide your team through GRI implementation. Talk to our ESG advisors → 

How Do Companies Implement GRI Standards in ESG Reporting? 

GRI Standards implementation follows a seven-step pathway that should start well before the reporting deadline. These are: 

• Understand the GRI Standards and reporting principles 
• Identify the company’s most significant impacts 
• Determine material topics through stakeholder engagement 
• Collect data and prepare topic-specific disclosures 
• Build the GRI content index 
• Publish the sustainability report 
• Notify GRI where applicable 

Starting early makes it easier to gather evidence and aligns the process with both POJK 51 and emerging IFRS-based rules.

How Do GRI Standards Support ESG Compliance in Indonesia? 

In Indonesia, ESG reporting is linked to sustainability reporting obligations under POJK No. 51/POJK.03/2017, which applies to financial services institutions, issuers, and public companies. The regulation requires eligible entities to implement Sustainable Finance principles and submit sustainability reports. 

GRI Standards can support this requirement by providing companies with a structured framework for disclosing economic, environmental, and social impacts. While POJK 51 sets the local reporting expectation, GRI helps companies present ESG information in a format that is easier for investors, lenders, regional headquarters, and other stakeholders to understand. 

This is becoming more relevant as Indonesia’s sustainability disclosure rules continue to develop, including OJK’s proposed amendments to POJK 51/2017 and alignment with PSPK 1 and PSPK 2, which are consistent with IFRS S1 and IFRS S2. For companies, this means ESG reporting should be built on clear data and evidence, with a structure that can adapt to both local and global expectations. 

What are the Challenges with GRI Reporting? 

Many companies struggle with GRI reporting because ESG data is often spread across different teams, systems, and business units. Common challenges include: 

• Fragmented ESG data across finance, HR, operations, procurement, legal, and HSE 
• Unclear data ownership for specific disclosures 
• Weak materiality assessments that report what’s easy, not what matters most 
• Limited supporting evidence, such as missing policies, records, or audit trails 
• Late preparation, which makes verification difficult before deadlines 

These gaps often surface during investor due diligence, ESG ratings, or supply chain assessments, making them difficult to address promptly. 

When Should Companies Seek GRI Reporting Support? 

As soon as ESG disclosure becomes commercially or operationally important, not when the deadline approaches. Support is useful when a company is: 

• Preparing a first sustainability report 
• Improving a previous report that lacked structure or traceability 
• Aligning reporting with POJK 51 expectations 
• Responding to investor, lender, or customer ESG requests 
• Preparing for ESG ratings or supply chain due diligence 
• Expanding in Indonesia and needing consistency with group ESG reporting

How InCorp Supports GRI-Based ESG Reporting in Indonesia 

For companies preparing or improving ESG reporting, InCorp Indonesia (an Ascentium Company) can help businesses move from fragmented ESG data to structured, GRI-aligned reporting.  

Our ESG advisory services include: 

• ESG reporting readiness assessment 
• Materiality assessment and stakeholder engagement 
• GRI content index development 
• Sustainability report preparation aligned with POJK 51 
• Advisory on PSPK 1, PSPK 2, and IFRS-aligned disclosures 

Ready to strengthen your ESG reporting in Indonesia? Complete the form below to start building a GRI-based sustainability report that supports compliance, financing, and long-term stakeholder trust.

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