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Social impact matters, such as human rights, diversity, equity, and community engagement, are becoming crucial components of organisational strategy and reporting. Addressing these challenges not only aligns with stakeholder expectations but also enhances long-term value creation, operational resilience, and brand reputation.
Our consultant, Bindi Jacob, has prepared this blog to highlight key social impact considerations and their integration into corporate reporting frameworks, with specific attention to Global Reporting Initiative (GRI), EU Corporate Sustainability Reporting Directive (EU-CSRD), and British Standards Institution standards, guidance and frameworks.
What are the key frameworks and standards for social impact disclosures you need to consider?
Global reporting initiative (GRI) standards
The GRI Standards provide comprehensive guidance for organisations to support their sustainability reporting and to disclose their impacts on the economy, environment, and society with human rights being a significant theme within the framework. Key standards include:
GRI 401: Employment – Workforce metrics such as hiring practices, turnover rates, and benefits offered.
GRI 403: Occupational Health and Safety – Reporting on workplace safety measures and employee well-being.
GRI 404: Training and Education – Data on employee training, upskilling, and career development opportunities.
GRI 412: Human Rights Assessments – Analysis of due diligence processes for identifying and addressing human rights risks.
GRI 414: Supplier Social Assessment – Evaluation of suppliers for labour practices, human rights, and ethical conduct.
EU Corporate Sustainability Reporting Directive (EU-CSRD)
Expands on the double materiality concept, requiring companies to disclose the impacts of their operations on people and society alongside financial implications.
Demands transparency on diversity metrics, labour practices, and policies addressing social inequalities.
BSI Standards (e.g., BS 30416 Menstruation, Menstrual Health and Menopause in the workplace)
The British Standards Institution (BSI) is the national standards body of the United Kingdom.
BSI produces technical standards on a wide range of products and services and also supplies standards certification services for business and personnel.
Offers practical guidance and standards for supporting workplace inclusion, addressing health-related challenges like menstruation, menopause, and mental health and wellbeing.
What are good example disclosures when integrating social impact considerations into your reporting and business model?
Area | Application | Example Disclosure |
Labour Practices and Conditions | Implementation of fair wage policies, safe working environments, and equitable hiring practices. | “In 2024, 87% of our suppliers complied with our Ethical Sourcing Standards, covering fair wages and safe working environments in line with GRI 414.” |
Human Rights and Modern Slavery | Addressing forced labour, child labour, and discrimination risks across supply chains. | “We assessed 93% of our supply chain for modern slavery risks and terminated contracts with non-compliant suppliers, as per GRI 412 disclosures.” |
Diversity and Inclusion | Promoting gender balance, pay equity, and inclusive leadership. | “Women represent 48% of our leadership positions, with equal pay policies verified under GRI 405 reporting standards.” |
Community Investments | Supporting education, healthcare, and local economic development. | “Invested $2 million in community health programmes benefiting over 15,000 individuals, contributing to SDG 3: Good Health and Well-being.” |
Workplace Well-being | Supporting physical, mental, and social health of employees. | “Introduced menopause awareness training for 100% of managers, reducing stigma and enhancing inclusivity, aligned with BS 30416.” |
What are key practical steps to enhance social impact reporting?
Conduct materiality assessments: Evaluate which social issues are most relevant to stakeholders and business operations, aligning with GRI materiality principles.
Strengthen supply chain oversight: Implement due diligence processes to assess supplier compliance with social and ethical standards, especially under GRI 414 and CSRD requirements.
Adopt comprehensive policies: Develop policies on diversity, pay equity, and health support (e.g., BS 30416), ensuring these are well-communicated across the organisation.
Enhance transparency through metrics: Use clear, quantifiable metrics for workforce diversity, training, and community impacts, adhering to GRI and EU CSRD standards.
It's time to tart taking action
Are you ready to simplify and integrate social impact frameworks as a strategic advantage for your business? Let us help you unlock it's full potential.
Email us at help@simplifyclimate.co.uk to arrange a discussion with our consultants.
Sources:
Four Key Best Practices for Social Impact Measurement — Pacific Community Ventures
Corporate sustainability reporting - European Commission
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