Disclosure focus
This disclosure asks an organisation to show, in monetary terms, the economic value it created during the reporting period and how that value was then shared out. In practice, that means setting out the main inflows and outflows that make up the organisation’s economic footprint, so readers can see what was generated and where it went, rather than just seeing a profit figure in isolation.
The practical focus is on completeness and consistency across the organisation’s reporting boundary. It is usually more useful to cover the full business, not only flagship sites or selected entities, so the picture reflects the organisation’s overall operations. The key question is whether the reported figures capture the relevant parts of the group or business and present a clear, comparable breakdown of value created and distributed.
This LRA educational guidance supports disclosure preparation. For the exact requirements, always refer to the official GRI source.
Before you start
A quick mental checklist before you prepare this disclosure — tick each as you settle it.
Preparation
Key datapoints to prepare
＋ Show GRI 201-1 sub-elements (LRA working checklist)
State whether the figures are shown for a country, a region, or a market.
Explain the basis you used to decide what counts as significant.
Report the money brought in from normal business activity.
Set out what was paid out: running costs, staff pay and benefits, returns to capital providers, taxes paid by country, and community spending.
Show the amount kept after subtracting what was paid out from what was brought in.
Say whether the figures are prepared on an accruals basis or a cash basis.
If you used cash basis reporting, explain why that approach was chosen.
How to prepare it
1Set the reporting boundary first: decide whether you are presenting the figures at country, regional, or market level, and make that choice consistent with the way the rest of the disclosure is framed.
2Agree the basis of measurement before you start compiling numbers. Confirm whether the economic value data will be built on an accruals view or a cash view, because that choice affects how the rest of the figures are prepared.
3If you use a cash view, write down why that approach was chosen. Keep the explanation specific enough for a reviewer to understand the rationale behind the method selected.
4Collect the source evidence for each required figure and map it to the relevant line item: income from operations, outflows to staff, capital providers, public authorities by jurisdiction, and community spending. Also calculate the amount kept back after those distributions.
5Document the rule you used to decide what counts as significant for this disclosure, and note any exclusions, reclassifications, or other changes that affect comparability from one period to the next.
6Before finalising, check the completed disclosure against the official source to confirm the scope, basis, line items, and supporting explanation all match the underlying requirement set.
Request the data
Request the EVG&D schedule and supporting basis
Translate the disclosure into an internal business question — then adapt it to your organisation's own language.
How did we calculate the period’s economic value created, distributed, and kept, and what basis and scope were used?
Use your organisation’s own finance and reporting terms first, then map them to the disclosure. For example, ask for the management pack, trial balance extracts, payroll summaries, tax payments, and community spend records in the language the finance team already uses. Keep the request practical and avoid framework wording unless that is how the team already labels the data.
Weak request
Please provide the GRI 201-1 data and evidence for direct economic value generated and distributed, including the accruals or cash basis, the value generated, the value distributed, the retained value, and the country/regional/market level with significance criteria.
Why it fails: It uses framework language that may not match how Finance actually tracks the numbers, so the owner has to translate the ask before they can respond. It also does not point to the usual finance outputs, source systems, or reconciliation points that make the request easy to action.
Better request
Please send the finance schedule for [period] showing how the period’s revenue, operating spend, staff pay and benefits, capital provider payments, tax paid by country, community spend, and retained amount were built for [entity/boundary]. Include whether the pack is on an accruals or cash basis, the source report or system for each line, the country/market split, and the rule used to decide which locations are shown separately. If cash was used, add a short note explaining why.
Industry examples
Draft your disclosure
Notes that turn data into a disclosure
LRA training templates — adapt them to your organisation, and check the official source before sign-off.
Method note
State whether the figures are prepared using cash timing or accrual timing, and if cash timing is used, explain why that basis was selected; also set out the rule used to decide which locations or segments are important enough to show separately.
Context note
Explain what the numbers mean by linking incoming value, the main outflows, and the amount kept in the business, and note the level at which location-based information is presented, such as country, region, or market.
Fluctuation statement
If the balance between value created, value distributed, and value retained changes notably from one period to the next, explain the main drivers, such as shifts in operating spend, staff costs, payments to capital providers, public payments, or community spending.
Content index entry
GRI 201-1 Direct economic value generated and distributed — [location / page] / [notes]
Download Centre
Preparation tools & forms
Professional preparation tools for GRI 201-1 — free with an LRA Community membership. Register once (it's free) and every download unlocks, together with the Disclosure Library, templates and the LRA AI-assistant.
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Assurance readiness
For each claim, check the evidence
Evidence pack to prepare
Common reporting gaps
Figures are stated without the supporting narrative, or narrative without figures.Scope is inconsistent between the text and the numbers.The reporting boundary is left undefined.Material changes since the previous period are not disclosed.Estimates and measured values are not distinguished.Source records for the figures are not identified.
Common gaps
Mistakes to avoid when collecting the data
Wrong owner, wrong language
The request goes to finance or sustainability using framework terms, so the person who actually holds the ledger, payroll, tax, or community spend data never recognises what is being asked.
Scope left undefined
Teams pull figures from different parts of the business without first agreeing which entities, branches, or markets are in scope, so the numbers do not line up.
Period basis mixed up
One team uses the reporting year while another uses invoice dates or payment dates, which makes the final set of figures cover different time periods.
Cash and accrual data blended
Amounts are taken from both payment records and booked accounts without choosing one basis first, so the totals are not built on a single counting method.
Source labels stripped out
Original file names, account codes, and system tags are removed during consolidation, making it hard to trace each figure back to the source record.
Separate populations merged
Operating spend, staff pay, tax payments, capital providers, and community spend are rolled into one bucket before review, so the required lines cannot be checked separately.
Evidence metadata missing
The team saves the number but not the extract date, system version, owner, or file reference, so the figure cannot be evidenced later.
No sign-off trail
Figures are passed on by email without a named reviewer or approval record, leaving no clear trail of who checked the data and when.
Where judgement is often needed
Cash or accrual basis for the year-end pack
Choose one basis for the period, explain why it fits your finance records if you use cash, and keep the same approach clear across the figures and narrative.
What to do after buying or selling a business mid-year
Set out whether the numbers include only the part of the year you controlled the business, and explain any cut-off used when a purchase or disposal changes the group boundary.
Different country rules for the same type of payment
Where local labels or accounting treatments differ, map each item to one group-wide category and explain the rule you used so the country split stays comparable.
Entities or sites close to the reporting boundary
Decide whether a joint venture, branch, or other near-boundary operation sits inside the scope, then describe the inclusion rule and any exclusions in plain terms.
Using estimates where source records are incomplete
If a line item cannot be taken straight from the ledger, use a documented estimate method, say which figures are estimated, and keep the basis consistent from one period to the next unless you explain the change.
Rounding and small differences across the totals
Apply one rounding rule across the schedule, and disclose if the retained amount is derived from the other lines so readers understand any minor difference caused by rounding.
Grouping sensitive country-level payments
If a country split could expose confidential information, aggregate only to the level that protects privacy, and explain the lowest level you can publish without identifying a party.
Choosing the level of detail for significance
State whether you are reporting at country, region, or market level, and explain the threshold or business rule used to decide what counts as significant enough to include.
Examples
Illustrative examples
Synthetic, written by LRA — not from a company report, not text from any standard.
Illustrative (synthetic) example — Manufacturing
We have prepared this synthetic example on an accruals basis, using the same accounting cut-off as our annual accounts. We treat significance by looking at the main places where value is created or spent, and we report at country level where local activity is material. - Revenue: 1,250 - Operating costs: 620; staff pay and benefits: 310; returns to capital providers: 90; taxes paid to public authorities by country: 110; local community spend: 20 - Value kept within the business: 100 - The significance test used here is whether a country accounts for at least 10% of either revenue or spending, or where a specific local issue is otherwise material
Synthetic illustration only. The figures are internally consistent and shown on an accruals basis; the retained amount equals revenue less the listed distributions.
Illustrative (synthetic) example — Retail
This synthetic example is shown on a cash basis because our internal management reporting for this business is built around cash movements, which better matches how we track store-level receipts and outflows. We report at regional level, and we treat a region as significant when it contributes at least 15% of group revenue or when cash outflows there are unusually concentrated. - Revenue received: 860 - Operating costs: 430; employee pay and benefits: 210; payments to lenders and investors: 60; taxes remitted by region: 80; community contributions: 10 - Value retained: 70 - Basis and rationale: cash basis, used because it aligns with our treasury view and the timing of receipts and payments
Synthetic illustration only. The figures are internally consistent and shown on a cash basis; the retained amount equals revenue less the listed distributions.
Company reports
How companies report GRI 201-1
Real reports where this topic is disclosed. These are report practice, not exact disclosure templates to copy.
SQM / Sociedad Química y Minera de Chile
Mining — Rare Minerals / Precious Metals / Gems · Chile · 2024
SQM's Sustainability Report 2024 includes a covered narrative on Direct Economic Value Generated and Distributed, referencing Consolidated Income Statements and providing sales revenue figures for 2020 to 2024 on page 68. However, specific monetary values for components of economic value distribution (a-i to a-iii) are not found in the report. Additionally, there is no clear narrative or methodology related to this disclosure elsewhere in the document.
True Corporation Public Company Limited
Telecommunication Services · Thailand · 2025
True Corporation Public Company Limited’s Sustainability Report 2025 includes narrative information related to economic performance, with a specific mention on page 91 about revenues presented from service revenues excluding interconnection (p.91). The report also references sustainability frameworks and standards such as the UN Sustainable Development Goals and the UN Global Compact Communication on Progress at an advanced level (p.81). However, the report lacks clear or quotable evidence on monetary values related to economic disclosures and does not provide detailed methodology or narrative explanations for these figures.
Firstsource Solutions Limited
Professional Services · India · 2025
Firstsource Solutions Limited’s ESG Report FY 2024-25 provides specific figures on direct economic value generated and distributed, with a reported value of ₹79,803.14 million generated and ₹72,050 million distributed, as noted on page 83 and referenced on page 84. The report also includes data on financial assistance received from the government, mentioned on pages 84 and 214. However, there is no clear narrative or detailed methodology explaining these figures, and several expected monetary values and narrative items are not found or remain unclear in the report.
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Check your understanding
Scenarios to work through
A group finance team prepares the annual sustainability pack and notices the economic value table was built from cash receipts and payments, not from the accounting ledger. The team also has a short note saying why that approach was chosen.
QShould this be presented on a cash or accruals basis, and if cash is used, what supporting explanation should be included?
Reveal model answer →Hide answer ↑Use the basis that matches the way the figures were prepared, and if the table is built from cash movements, add a clear reason for that choice. The explanation should help a reader understand why cash was used instead of the other approach.
Why this matters · State the measurement basis plainly, and explain any cash-based presentation in a way that makes the choice understandable.
A preparer has total revenue of £420 million, operating costs of £180 million, employee pay and benefits of £110 million, payments to lenders of £25 million, tax paid in different countries of £35 million, and community spending of £8 million. They are checking the retained amount before final sign-off.
QHow should the retained amount be worked out from these figures?
Reveal model answer →Hide answer ↑Add the distributed amounts together first: £180 million + £110 million + £25 million + £35 million + £8 million = £358 million. Then subtract that from the value created of £420 million, giving £62 million retained.
Why this matters · The retained figure is the remainder after all distributed amounts are deducted from the value created.
A multinational business reports the table for the whole group, but one division operates in a single country where local management wants a separate breakdown because the market is large and distinct. The team is deciding how to describe the level at which the figures are shown and why that level was chosen.
QWhat level should be stated, and what kind of explanation should accompany the choice?
Reveal model answer →Hide answer ↑Identify the level used for the presentation, such as country, regional, or market level, and explain the basis for treating that level as significant. The explanation should show why that boundary was selected for the reporting view.
Why this matters · Be explicit about the reporting level and the logic used to decide that it matters.
A reporting team has prepared a note saying that a particular overseas market is significant because it contributes 18% of group revenue, has a separate management structure, and is subject to distinct local tax rules. They are checking whether the note is detailed enough for the disclosure.
QWhat should the team make sure the significance explanation covers?
Reveal model answer →Hide answer ↑The note should set out the criteria used to decide that the market, region, or country is significant, and those criteria should be the ones actually applied in the assessment. In this case, the revenue share, management structure, and local tax context can be part of that explanation if they were the basis for the decision.
Why this matters · Describe the test you used to decide significance, not just the conclusion.
Framework references
Related framework references
How this disclosure maps across the major reporting frameworks.
Primary
Related & explore
FAQ
Questions this page answers
For GRI 201-1, what data do I need to gather before I start drafting the disclosure?+−
The page says to prepare reporting basis, cash basis rationale, revenue total, distributed value total, retained value, reporting scope level and the significance rule. Use those as your starting checklist before you write the narrative or build the table.
How do I decide the reporting basis and scope for GRI 201-1 on this page?+−
The page includes a step-by-step 'how to prepare' section and asks you to set the reporting basis and reporting scope level. It is meant to help you document the basis you used and keep the scope clear in the draft.
What should I use as evidence for the cash basis rationale in a GRI 201-1 workbook?+−
The page flags cash basis rationale as one of the datapoints to prepare and includes an evidence pack for assurance readiness. Use the workbook to capture the rationale and keep supporting documents together in the pack.
Who should own the GRI 201-1 data collection and sign-off in practice?+−
The page is written for sustainability/ESG managers, HR or data owners, and assurance reviewers, so ownership should sit with the people who can explain the figures and provide evidence. The page itself does not assign roles, so you would need to set that internally.
What are the six assurance claims I need to check for GRI 201-1?+−
The page says there are six assurance claims to verify, each with a claim, risk and evidence prompt. Use that section to test whether your draft is supported and whether the evidence pack is complete.
What should go into the evidence pack for GRI 201-1 assurance readiness?+−
The page says the evidence pack has five items and is designed to support assurance readiness. Build it around the prepared datapoints, the rationale for your basis and scope, and the supporting records you would need to show a reviewer.
What are the most common mistakes people make when drafting GRI 201-1?+−
The page lists common reporting gaps and mistakes, so it is useful for checking whether your draft is missing a basis, scope, rationale or key value. Use that section as a final quality check before you circulate the disclosure.
How do I use the GRI 201-1 workbook and printable library card?+−
The Download Centre includes a Prep & Assurance workbook in .xlsx format and a printable Library Card in .pdf format. The workbook is for structuring the data and evidence, while the card is a quick reference you can use during drafting or review.
Can I use the synthetic example disclosure on the GRI 201-1 page as a template for my own draft?+−
Yes, the page includes synthetic illustrative example disclosures and a quantitative table to show how the disclosure can be presented. Treat it as a format guide only and replace it with your own internally consistent data.
How do I turn the GRI 201-1 data into a draft narrative and content index line?+−
The page has a draft-output section with visualisation ideas, narrative starters and a GRI content-index line. Use those prompts to turn the prepared figures and scope notes into a short draft that is easy to review.
Can I reuse my GRI 201-1 data for ESRS E1 climate reporting?+−
The page says the closest ESRS correspondence is ESRS E1 (Climate Change), so there may be some reuse of data or supporting material. It does not say the requirements are identical, so you should only treat it as a cross-framework reference point.
More questions this page can help with
GRI 201-1 checklist: what should I have ready before I open the workbook?GRI 201-1 cash basis rationale: what kind of explanation should I document?GRI 201-1 reporting basis and scope: how do I keep them consistent across the draft and evidence pack?GRI 201-1 revenue total, distributed value total and retained value: how should I line these up in the table?GRI 201-1 significance rule: how do I record it in a way an assurance reviewer can follow?GRI 201-1 evidence pack: what documents should I attach for each datapoint?GRI 201-1 common mistakes: what should I check before sending the draft for review?GRI 201-1 workbook download: how do I use the prep and assurance tabs together?GRI 201-1 library card PDF: when is it useful during drafting and sign-off?GRI 201-1 synthetic example: how do I adapt the example without copying it blindly?GRI 201-1 draft output: what narrative starters does the page suggest using?GRI 201-1 and ESRS E1: what data from this page might be reusable across both disclosures?
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