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GRI 201: Economic Performance·Disclosure GRI 201-2
Financial implications and other risks and opportunities due to climate change
Practical guidance for preparing this disclosure. Use this card to identify the information to prepare, verify claims and organise supporting evidence. For exact requirements, always refer to the official Global Reporting Initiative source.
Legal status
GRI 201-2 remains applicable for reporting published before 1 January 2027. It will be withdrawn when GRI 102: Climate Change 2025 becomes effective for climate-related reporting published on or after 1 January 2027.
Published passport
Last reviewed 2026-07-30
Reviewed by
Dr Ross KurinkoLinkedIn
Strategic ESG Advisor · IFRS S1 & S2 / GRI / ESRS expert
GRI Certified Global Trainer · PhD, University of Cambridge · ESG-AI expert
15+ years on FTSE 100 & Fortune Global 500 disclosures
Canary Wharf, London
LRA educational guidance · Not issued or endorsed by Global Reporting Initiative
Standard
GRI 201: Economic Performance
Disclosure GRI 201-2 · 2016
Last reviewed
2026-07-30
LRA educational guidance · Not issued or endorsed by Global Reporting Initiative
To prepare this disclosure
Disclosure focus
Disclosure 201-2 requires an organization to report climate-related risks and opportunities that have the potential to generate substantive changes in its operations, revenue, or expenditure. For each identified risk or opportunity, the organization is required to describe its nature and classify it as physical, regulatory, or other; describe the associated impact; report the financial implications before action is taken; describe the methods used to manage it; and report the costs of actions taken.
If the organization does not have a system in place to calculate the financial implications or costs, or to make revenue projections, it must report its plans and timeline for developing the necessary systems. This is a conditional requirement and does not create a separate model-development datapoint where an adequate system already exists.
GRI also recommends reporting the driver, projected timeframe, direct and indirect impacts, potential effects on capital and operating costs, demand, capital availability and investment opportunities, likelihood, and magnitude for each identified risk and opportunity.
Disclosure 201-2 remains applicable for reporting published before 1 January 2027. It will be withdrawn when GRI 102: Climate Change 2025 becomes effective for climate-related reporting published on or after 1 January 2027.
This LRA educational guidance supports disclosure preparation. For the exact requirements, always refer to the official Global Reporting Initiative source.
Before you start
Before you start
A quick mental checklist before you prepare this disclosure — tick each as you settle it.
Preparation
Key information to prepare
| Preparation field | What to capture | Evidence hint | Owner |
|---|---|---|---|
| Risk or opportunity nature and classification | Disclosure 201-2 requires an organization to report climate-related risks and opportunities that have the potential to generate substantive changes in its operations, revenue, or expenditure. For each identified risk or opportunity, the organization is required to describe its nature and classify it as physical, regulatory, or other; describe the associated impact; report the financial implications before action is taken; describe the methods used to manage it; and report the costs of actions taken. | Approved source records, calculation files, reconciliations and review evidence supporting risk or opportunity nature and classification. | Climate / Risk / Finance / Sustainability reporting |
| Associated business impact | Disclosure 201-2 requires an organization to report climate-related risks and opportunities that have the potential to generate substantive changes in its operations, revenue, or expenditure. For each identified risk or opportunity, the organization is required to describe its nature and classify it as physical, regulatory, or other; describe the associated impact; report the financial implications before action is taken; describe the methods used to manage it; and report the costs of actions taken. | Approved source records, calculation files, reconciliations and review evidence supporting associated business impact. | Climate / Risk / Finance / Sustainability reporting |
| Financial implications before action | Disclosure 201-2 requires an organization to report climate-related risks and opportunities that have the potential to generate substantive changes in its operations, revenue, or expenditure. For each identified risk or opportunity, the organization is required to describe its nature and classify it as physical, regulatory, or other; describe the associated impact; report the financial implications before action is taken; describe the methods used to manage it; and report the costs of actions taken. | Approved source records, calculation files, reconciliations and review evidence supporting financial implications before action. | Finance / Sustainability reporting |
| Methods used to manage the risk or opportunity | Disclosure 201-2 requires an organization to report climate-related risks and opportunities that have the potential to generate substantive changes in its operations, revenue, or expenditure. For each identified risk or opportunity, the organization is required to describe its nature and classify it as physical, regulatory, or other; describe the associated impact; report the financial implications before action is taken; describe the methods used to manage it; and report the costs of actions taken. | Approved source records, calculation files, reconciliations and review evidence supporting methods used to manage the risk or opportunity. | Climate / Risk / Finance / Sustainability reporting |
| Costs of actions taken | Disclosure 201-2 requires an organization to report climate-related risks and opportunities that have the potential to generate substantive changes in its operations, revenue, or expenditure. For each identified risk or opportunity, the organization is required to describe its nature and classify it as physical, regulatory, or other; describe the associated impact; report the financial implications before action is taken; describe the methods used to manage it; and report the costs of actions taken. | Approved source records, calculation files, reconciliations and review evidence supporting costs of actions taken. | Finance / Sustainability reporting |
| System-development plan and timeline | If the organization does not have a system in place to calculate the financial implications or costs, or to make revenue projections, it must report its plans and timeline for developing the necessary systems. This is a conditional requirement and does not create a separate model-development datapoint where an adequate system already exists. | Approved source records, calculation files, reconciliations and review evidence supporting system-development plan and timeline. | Climate / Risk / Finance / Sustainability reporting |
| Recommended driver, timeframe and assessment characteristics | GRI also recommends reporting the driver, projected timeframe, direct and indirect impacts, potential effects on capital and operating costs, demand, capital availability and investment opportunities, likelihood, and magnitude for each identified risk and opportunity. | Approved source records, calculation files, reconciliations and review evidence supporting recommended driver, timeframe and assessment characteristics. | Climate / Risk / Finance / Sustainability reporting |
| Transition to GRI 102 | Disclosure 201-2 remains applicable for reporting published before 1 January 2027. It will be withdrawn when GRI 102: Climate Change 2025 becomes effective for climate-related reporting published on or after 1 January 2027. | Approved source records, calculation files, reconciliations and review evidence supporting transition to gri 102. | Climate / Risk / Finance / Sustainability reporting |
＋ Show GRI 201-2 sub-elements (LRA working checklist)
Disclosure 201-2 requires an organization to report climate-related risks and opportunities that have the potential to generate substantive changes in its operations, revenue, or expenditure. For each identified risk or opportunity, the organization is required to describe its nature and classify it as physical, regulatory, or other; describe the associated impact; report the financial implications before action is taken; describe the methods used to manage it; and report the costs of actions taken.
Disclosure 201-2 requires an organization to report climate-related risks and opportunities that have the potential to generate substantive changes in its operations, revenue, or expenditure. For each identified risk or opportunity, the organization is required to describe its nature and classify it as physical, regulatory, or other; describe the associated impact; report the financial implications before action is taken; describe the methods used to manage it; and report the costs of actions taken.
Disclosure 201-2 requires an organization to report climate-related risks and opportunities that have the potential to generate substantive changes in its operations, revenue, or expenditure. For each identified risk or opportunity, the organization is required to describe its nature and classify it as physical, regulatory, or other; describe the associated impact; report the financial implications before action is taken; describe the methods used to manage it; and report the costs of actions taken.
Disclosure 201-2 requires an organization to report climate-related risks and opportunities that have the potential to generate substantive changes in its operations, revenue, or expenditure. For each identified risk or opportunity, the organization is required to describe its nature and classify it as physical, regulatory, or other; describe the associated impact; report the financial implications before action is taken; describe the methods used to manage it; and report the costs of actions taken.
Disclosure 201-2 requires an organization to report climate-related risks and opportunities that have the potential to generate substantive changes in its operations, revenue, or expenditure. For each identified risk or opportunity, the organization is required to describe its nature and classify it as physical, regulatory, or other; describe the associated impact; report the financial implications before action is taken; describe the methods used to manage it; and report the costs of actions taken.
If the organization does not have a system in place to calculate the financial implications or costs, or to make revenue projections, it must report its plans and timeline for developing the necessary systems. This is a conditional requirement and does not create a separate model-development datapoint where an adequate system already exists.
GRI also recommends reporting the driver, projected timeframe, direct and indirect impacts, potential effects on capital and operating costs, demand, capital availability and investment opportunities, likelihood, and magnitude for each identified risk and opportunity.
Disclosure 201-2 remains applicable for reporting published before 1 January 2027. It will be withdrawn when GRI 102: Climate Change 2025 becomes effective for climate-related reporting published on or after 1 January 2027.
How to prepare it
Report each climate-related risk or opportunity capable of generating substantive changes in operations, revenue or expenditure; do not aggregate unrelated items into one amount.
Collect and reconcile the records for: Risk or opportunity nature and classification; Associated business impact; Financial implications before action; Methods used to manage the risk or opportunity; Costs of actions taken; System-development plan and timeline; Recommended driver, timeframe and assessment characteristics; Transition to GRI 102.
If no system exists to calculate financial implications, costs or revenue projections, report the plans and timeline for developing the necessary systems.
Draft the response using the defined terms shown in the disclosure focus; do not substitute broader internal labels.
Review the final wording against every requirement and the supporting governance or data records before sign-off.
Request the data
Request the disclosure evidence
Translate the disclosure into an internal business question — then adapt it to your organisation's own language.
For each risk or opportunity, provide its description, physical/regulatory/other classification, associated impact, pre-action financial implications, management method and costs of actions, plus model plans where needed and recommended driver, timeframe, likelihood, magnitude and direct/indirect impact information.
Use the organisation's own role and document names, but preserve the defined GRI terms and the scope described above.
Better request
For each risk or opportunity, provide its description, physical/regulatory/other classification, associated impact, pre-action financial implications, management method and costs of actions, plus model plans where needed and recommended driver, timeframe, likelihood, magnitude and direct/indirect impact information.
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
Keep financial implications before action separate from the costs of actions taken. Use item-level methods, assumptions, timeframes and management evidence.
Context note
GRI 201-2 remains applicable before 1 January 2027 and is replaced for climate-related reporting when GRI 102: Climate Change 2025 takes effect.
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Assurance readiness
For each claim, check the evidence
| Claim | Risk | Evidence to check |
|---|---|---|
| Risk or opportunity nature and classification is reported accurately and completely. | The response omits, misclassifies or overstates risk or opportunity nature and classification. | Approved source records, calculation files, reconciliations and review evidence supporting risk or opportunity nature and classification. |
| Associated business impact is reported accurately and completely. | The response omits, misclassifies or overstates associated business impact. | Approved source records, calculation files, reconciliations and review evidence supporting associated business impact. |
| Financial implications before action is reported accurately and completely. | The response omits, misclassifies or overstates financial implications before action. | Approved source records, calculation files, reconciliations and review evidence supporting financial implications before action. |
| Methods used to manage the risk or opportunity is reported accurately and completely. | The response omits, misclassifies or overstates methods used to manage the risk or opportunity. | Approved source records, calculation files, reconciliations and review evidence supporting methods used to manage the risk or opportunity. |
| Costs of actions taken is reported accurately and completely. | The response omits, misclassifies or overstates costs of actions taken. | Approved source records, calculation files, reconciliations and review evidence supporting costs of actions taken. |
| System-development plan and timeline is reported accurately and completely. | The response omits, misclassifies or overstates system-development plan and timeline. | Approved source records, calculation files, reconciliations and review evidence supporting system-development plan and timeline. |
| Recommended driver, timeframe and assessment characteristics is reported accurately and completely. | The response omits, misclassifies or overstates recommended driver, timeframe and assessment characteristics. | Approved source records, calculation files, reconciliations and review evidence supporting recommended driver, timeframe and assessment characteristics. |
| Transition to GRI 102 is reported accurately and completely. | The response omits, misclassifies or overstates transition to gri 102. | Approved source records, calculation files, reconciliations and review evidence supporting transition to gri 102. |
Evidence pack to prepare
Common reporting gaps
Using material risk without testing for substantive change.
Omitting opportunities or the physical, regulatory or other classification.
Combining several risks into one financial amount.
Reporting only residual effects after action.
Confusing response costs with financial implications before action.
Stating that a model is being built without a plan and timeline.
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Framework references
Relevant GRI requirements and related disclosures
Available framework references and nearby disclosures relevant to preparing this requirement.
GRI
GRI 201-2
within GRI 201: Economic Performance
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