Energy policies and commitments

Disclosure focus

Disclosure 103-1 requires an organization to describe how its energy-related policies and commitments contribute to reducing energy consumption, improving energy efficiency and transitioning to renewable energy sources. These are three distinct elements of the disclosure and should be addressed separately where applicable.

The disclosure is narrative. GRI 103-1 does not require an organization to calculate a single quantified “energy policy contribution” or report a count of energy-related impacts. Quantitative information can support the explanation but does not replace the required description.

The organization must also describe impacts on the economy, environment and people that can result from its energy consumption and from its transition to renewable energy sources. Financial costs or savings for the organization are not substitutes for impacts on the economy.

The organization should consider policies, commitments and impacts across its activities and its upstream and downstream value chain. It should explain the scope of each policy, including whether it applies to its own operations, suppliers, products, services or other business relationships.

Relevant policies and commitments can address energy efficiency, renewable-energy use, energy attribute certificates, renewable energy certificates, power purchase agreements, green electricity products, suppliers’ use of renewable energy and just-transition measures such as worker training and protection of land rights.

The organization should explain how its energy policies and commitments relate to applicable national, regional and industry regulations and how they align with the latest scientific evidence on the effort needed to limit global warming to 1.5°C.

It should report relevant short-, medium- and long-term targets for reducing energy consumption, improving energy efficiency and transitioning to renewable energy sources. Where contractual instruments are used, it should explain how they are considered when setting targets and monitoring progress.

The organization should describe investments that support energy reduction, energy efficiency and renewable-energy transition, including investments in heating, ventilation and air-conditioning systems, energy-transition technologies, renewable energy and the redesign of products, processes or services.

When identifying impacts, the organization should distinguish impacts arising from its own energy generation and consumption from impacts connected to purchased energy through suppliers and other business relationships.

Impacts on people can include access to heat, light and mobility, job creation, skills development, job losses, occupational health and safety impacts, pollution-related health impacts and violations of land rights. Relevant stakeholders can include workers, trade unions, suppliers, local communities, Indigenous Peoples, governments and at-risk or vulnerable groups.

Environmental impacts can include positive and negative effects on biodiversity and pollution. Renewable-energy infrastructure can create habitat benefits in some contexts but can also damage habitats or create dust, waste, noise, light and other impacts during construction, operation, decommissioning or repowering.

The organization should explain how it identifies and engages affected stakeholders, including through social impact assessment, and how their views inform policies and actions. It can incorporate relevant information through a cross-reference to Disclosure 2-29.

For each significant impact, the organization should describe the actions taken to prevent, mitigate or manage it. Actions can include contractual requirements for energy suppliers, incentives linked to future orders, collaboration with other actors, careful siting of renewable-energy infrastructure, use of previously disturbed land and measures to reduce biodiversity risks.

Where biodiversity impacts and management actions are already reported under Disclosure 101-2, the organization can incorporate that information through a clear cross-reference.

Disclosure 103-1 applies when energy has been determined to be a material topic. It supplements and does not replace Disclosure 3-3. Where required information cannot be disclosed, the organization should apply an appropriate reason for omission in accordance with GRI 1.

This LRA educational guidance supports disclosure preparation. For the exact requirements, always refer to the official Global Reporting Initiative source.