GRI 201 — Financial implications and other risks and…

Disclosure focus

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 It will be withdrawn when GRI 102: Climate Change 2025 becomes effective for climate-related reporting published on or after 1 January 2027.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.

Prepare

What to collect before drafting

Tick each field as the evidence lands. Owners are the teams that usually hold the source files.

Risk or opportunity nature and classification
Climate / Risk / Finance / Sustainability reporting

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.

Evidence Approved source records, calculation files, reconciliations and review evidence supporting risk or opportunity nature and classification.

Watch for The published response for risk or opportunity nature and classification is incomplete or does not match the supporting records.
Associated business impact
Climate / Risk / Finance / Sustainability reporting

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.

Evidence Approved source records, calculation files, reconciliations and review evidence supporting associated business impact.

Watch for The published response for associated business impact is incomplete or does not match the supporting records.
Financial implications before action
Finance / Sustainability reporting

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.

Evidence Approved source records, calculation files, reconciliations and review evidence supporting financial implications before action.

Watch for The published response for financial implications before action is incomplete or does not match the supporting records.
Methods used to manage the risk or opportunity
Climate / Risk / Finance / Sustainability reporting

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.

Evidence Approved source records, calculation files, reconciliations and review evidence supporting methods used to manage the risk or opportunity.

Watch for The published response for methods used to manage the risk or opportunity is incomplete or does not match the supporting records.
Costs of actions taken
Finance / Sustainability reporting

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.

Evidence Approved source records, calculation files, reconciliations and review evidence supporting costs of actions taken.

Watch for The published response for costs of actions taken is incomplete or does not match the supporting records.
System-development plan and timeline
Climate / Risk / Finance / Sustainability reporting

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.

Evidence Approved source records, calculation files, reconciliations and review evidence supporting system-development plan and timeline.

Watch for The published response for system-development plan and timeline is incomplete or does not match the supporting records.
Recommended driver, timeframe and assessment characteristics
Climate / Risk / Finance / Sustainability reporting

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.

Evidence Approved source records, calculation files, reconciliations and review evidence supporting recommended driver, timeframe and assessment characteristics.

Watch for The published response for recommended driver, timeframe and assessment characteristics is incomplete or does not match the supporting records.
Transition to GRI 102
Climate / Risk / Finance / Sustainability reporting

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.

Evidence Approved source records, calculation files, reconciliations and review evidence supporting transition to gri 102.

Watch for The published response for transition to gri 102 is incomplete or does not match the supporting records.

Before you start

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.
If no system exists to calculate financial implications, costs or revenue projections, report the plans and timeline for developing the necessary systems.
Have the supporting records and the final response been reconciled?

＋ 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

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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Preparation tools & forms

Download preparation tools for GRI 201-2 with free verified email access for 24 hours. Source-report links remain public.

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01XLSPrep & Assurance workbookDatapoints, risks, evidence to check, owner and evidence pack.Get it free ↧ 02XLSData-request packRequest email, message template, response fields and sign-off structure.Get it free ↧ 03PDFLibrary CardPrintable one-page summary of this disclosure card.Get it free ↧

Check

For each claim, check the evidence

Risk or opportunity nature and classification is reported accurately and completely.
Risk The response omits, misclassifies or overstates risk or opportunity nature and classification.
Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting risk or opportunity nature and classification.
Associated business impact is reported accurately and completely.
Risk The response omits, misclassifies or overstates associated business impact.
Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting associated business impact.
Financial implications before action is reported accurately and completely.
Risk The response omits, misclassifies or overstates financial implications before action.
Evidence to check 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.
Risk The response omits, misclassifies or overstates methods used to manage the risk or opportunity.
Evidence to check 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.
Risk The response omits, misclassifies or overstates costs of actions taken.
Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting costs of actions taken.
System-development plan and timeline is reported accurately and completely.
Risk The response omits, misclassifies or overstates system-development plan and timeline.
Evidence to check 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.
Risk The response omits, misclassifies or overstates recommended driver, timeframe and assessment characteristics.
Evidence to check 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.
Risk The response omits, misclassifies or overstates transition to gri 102.
Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting transition to gri 102.

Evidence pack to prepare

Approved source records, calculation files, reconciliations and review evidence supporting risk or opportunity nature and classification.Approved source records, calculation files, reconciliations and review evidence supporting associated business impact.Approved source records, calculation files, reconciliations and review evidence supporting financial implications before action.Approved source records, calculation files, reconciliations and review evidence supporting methods used to manage the risk or opportunity.Approved source records, calculation files, reconciliations and review evidence supporting costs of actions taken.Approved source records, calculation files, reconciliations and review evidence supporting system-development plan and timeline.Approved source records, calculation files, reconciliations and review evidence supporting recommended driver, timeframe and assessment characteristics.Approved source records, calculation files, reconciliations and review evidence supporting transition to gri 102.

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

GRI

GRI 201-2

within GRI 201: Economic Performance

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Related & explore

Direct economic value generated and distributed → Card Defined benefit plan obligations and other retirement plans → Card Financial assistance received from government → Card Browse all disclosures →

More in GRI 201 →Browse full catalogue →Search all disclosures →

How this library is built 1,211 published reports indexed 315,012 pages with page-level citations 272 published cards in the active catalogue

	Report A	Report B	Report C
Datapoint 1	✓ p.213	unclear	✓ p.87
Datapoint 2	✓ p.214	—	✓ p.90

Financial implications and other risks and opportunities due to climate change

What to collect before drafting

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

How to prepare it

Request the disclosure evidence

Notes that turn data into a disclosure

Preparation tools & forms

For each claim, check the evidence

Risk or opportunity nature and classification is reported accurately and completely.

Associated business impact is reported accurately and completely.

Financial implications before action is reported accurately and completely.

Methods used to manage the risk or opportunity is reported accurately and completely.

Costs of actions taken is reported accurately and completely.

System-development plan and timeline is reported accurately and completely.

Recommended driver, timeframe and assessment characteristics is reported accurately and completely.

Transition to GRI 102 is reported accurately and completely.

Ask the Knowledge Hub AI Assistant about this disclosure

Check your text

Relevant GRI requirements and related disclosures

Secure your enrolment

Financial implications and other risks and opportunities due to climate change

What to collect before drafting

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

How to prepare it

Request the disclosure evidence

Notes that turn data into a disclosure

Preparation tools & forms

For each claim, check the evidence

Risk or opportunity nature and classification is reported accurately and completely.

Associated business impact is reported accurately and completely.

Financial implications before action is reported accurately and completely.

Methods used to manage the risk or opportunity is reported accurately and completely.

Costs of actions taken is reported accurately and completely.

System-development plan and timeline is reported accurately and completely.

Recommended driver, timeframe and assessment characteristics is reported accurately and completely.

Transition to GRI 102 is reported accurately and completely.

Ask the Knowledge Hub AI Assistant about this disclosure

Check your text

Relevant GRI requirements and related disclosures

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