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GRI Training Partner GRI 202 · Market Presence · Disclosure GRI 202-2

Proportion of senior management hired from the local community

GRI 202-2 · mandatory · coverage + narrative

Disclosure 202-2 requires an organization to report the percentage of senior management at significant locations of operation that is hired from the local community. The organization must also report the definition it uses for senior management, its geographical definition of local, and its definition of significant locations of operation.

Legal status

GRI 202: Market Presence 2016 remains applicable at the date of this review and is being revised under GRI's Labor Project. Preparers should monitor the official GRI Standards register.

Start preparing ↓ Official Global Reporting Initiative source ↗

Disclosure focus

The percentage must be calculated using data on full-time employees. The numerator is the number of full-time senior management employees at a significant location who meet the organization’s local criterion, and the denominator is the total number of full-time senior management employees at that location.

GRI explains that senior management hired from the local community includes individuals who were born in, or have the legal right to reside indefinitely in, the same geographic market as the operation. The geographic market can be the surrounding community, a region within a country, or the country as a whole. Current home address or place of recruitment alone does not necessarily demonstrate local status.

The metric is not limited to senior managers newly recruited during the reporting period. It covers the relevant current senior management population at the significant locations of operation. Where different geographic definitions of local are used, the organization should disclose each definition and apply it consistently.

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.

  • Definition of senior management

    People / Payroll / Sustainability reporting

    Disclosure 202-2 requires an organization to report the percentage of senior management at significant locations of operation that is hired from the local community. The organization must also report the definition it uses for senior management, its geographical definition of local, and its definition of significant locations of operation.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting definition of senior management.

    Watch for The published response for definition of senior management is incomplete or does not match the supporting records.

  • Definition and list of significant locations

    People / Payroll / Sustainability reporting

    Disclosure 202-2 requires an organization to report the percentage of senior management at significant locations of operation that is hired from the local community. The organization must also report the definition it uses for senior management, its geographical definition of local, and its definition of significant locations of operation.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting definition and list of significant locations.

    Watch for The published response for definition and list of significant locations is incomplete or does not match the supporting records.

  • Geographic definition of local

    People / Payroll / Sustainability reporting

    Disclosure 202-2 requires an organization to report the percentage of senior management at significant locations of operation that is hired from the local community. The organization must also report the definition it uses for senior management, its geographical definition of local, and its definition of significant locations of operation. GRI explains that senior management hired from the local community includes individuals who were born in, or have the legal right to reside indefinitely in, the same geographic market as the operation. The geographic market can be the surrounding community, a region within a country, or the country as a whole. Current home address or place of recruitment alone does not necessarily demonstrate local status.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting geographic definition of local.

    Watch for The published response for geographic definition of local is incomplete or does not match the supporting records.

  • Full-time employee population

    People / Payroll / Sustainability reporting

    The percentage must be calculated using data on full-time employees. The numerator is the number of full-time senior management employees at a significant location who meet the organization’s local criterion, and the denominator is the total number of full-time senior management employees at that location.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting full-time employee population.

    Watch for The published response for full-time employee population is incomplete or does not match the supporting records.

  • Local senior-management numerator and denominator

    People / Payroll / Sustainability reporting

    The percentage must be calculated using data on full-time employees. The numerator is the number of full-time senior management employees at a significant location who meet the organization’s local criterion, and the denominator is the total number of full-time senior management employees at that location.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting local senior-management numerator and denominator.

    Watch for The published response for local senior-management numerator and denominator is incomplete or does not match the supporting records.

  • Percentage by significant location

    People / Payroll / Sustainability reporting

    Disclosure 202-2 requires an organization to report the percentage of senior management at significant locations of operation that is hired from the local community. The organization must also report the definition it uses for senior management, its geographical definition of local, and its definition of significant locations of operation. The percentage must be calculated using data on full-time employees. The numerator is the number of full-time senior management employees at a significant location who meet the organization’s local criterion, and the denominator is the total number of full-time senior management employees at that location.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting percentage by significant location.

    Watch for The published response for percentage by significant location is incomplete or does not match the supporting records.

  • Birth or indefinite-residency evidence

    People / Payroll / Sustainability reporting

    GRI explains that senior management hired from the local community includes individuals who were born in, or have the legal right to reside indefinitely in, the same geographic market as the operation. The geographic market can be the surrounding community, a region within a country, or the country as a whole. Current home address or place of recruitment alone does not necessarily demonstrate local status.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting birth or indefinite-residency evidence.

    Watch for The published response for birth or indefinite-residency evidence is incomplete or does not match the supporting records.

  • Current population rather than new hires

    People / Payroll / Sustainability reporting

    The metric is not limited to senior managers newly recruited during the reporting period. It covers the relevant current senior management population at the significant locations of operation. Where different geographic definitions of local are used, the organization should disclose each definition and apply it consistently.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting current population rather than new hires.

    Watch for The published response for current population rather than new hires is incomplete or does not match the supporting records.

  • Location-specific definitions and consistency

    People / Payroll / Sustainability reporting

    The metric is not limited to senior managers newly recruited during the reporting period. It covers the relevant current senior management population at the significant locations of operation. Where different geographic definitions of local are used, the organization should disclose each definition and apply it consistently.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting location-specific definitions and consistency.

    Watch for The published response for location-specific definitions and consistency is incomplete or does not match the supporting records.

Before you start

  • Calculate the percentage for the current full-time senior-management population at each significant location of operation; do not limit the metric to managers hired during the reporting period.
  • Local means born in, or legally entitled to reside indefinitely in, the same geographic market as the operation. Current address or recruitment location alone does not necessarily demonstrate local status.
  • Have the supporting records and the final response been reconciled?
＋ Show GRI 202-2 sub-elements (LRA working checklist)

How to prepare it

Calculate the percentage for the current full-time senior-management population at each significant location of operation; do not limit the metric to managers hired during the reporting period.
Collect and reconcile the records for: Definition of senior management; Definition and list of significant locations; Geographic definition of local; Full-time employee population; Local senior-management numerator and denominator; Percentage by significant location; Birth or indefinite-residency evidence; Current population rather than new hires; Location-specific definitions and consistency.
Local means born in, or legally entitled to reside indefinitely in, the same geographic market as the operation. Current address or recruitment location alone does not necessarily demonstrate local status.
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.

Provide senior-management and significant-location definitions; the location list; geographic local criteria; full-time senior-management roster; birth or indefinite-residency evidence; numerator, denominator and percentage by location; HR reconciliation, privacy controls and definition-change history.

Use the organisation's own role and document names, but preserve the defined GRI terms and the scope described above.

Better request

Provide senior-management and significant-location definitions; the location list; geographic local criteria; full-time senior-management roster; birth or indefinite-residency evidence; numerator, denominator and percentage by location; HR reconciliation, privacy controls and definition-change history.

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

Divide full-time senior managers meeting the local criterion at each significant location by the total full-time senior-management population at that location. Disclose and consistently apply each geographic definition.

Context note

The geographic market can be a surrounding community, a region within a country or the country as a whole. A single universal radius is not required.

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Preparation tools & forms

Download preparation tools for GRI 202-2 with free verified email access for 24 hours. Source-report links remain public.

Free · Email access
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

  • Definition of senior management is reported accurately and completely.

    Risk The response omits, misclassifies or overstates definition of senior management.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting definition of senior management.

  • Definition and list of significant locations is reported accurately and completely.

    Risk The response omits, misclassifies or overstates definition and list of significant locations.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting definition and list of significant locations.

  • Geographic definition of local is reported accurately and completely.

    Risk The response omits, misclassifies or overstates geographic definition of local.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting geographic definition of local.

  • Full-time employee population is reported accurately and completely.

    Risk The response omits, misclassifies or overstates full-time employee population.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting full-time employee population.

  • Local senior-management numerator and denominator is reported accurately and completely.

    Risk The response omits, misclassifies or overstates local senior-management numerator and denominator.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting local senior-management numerator and denominator.

  • Percentage by significant location is reported accurately and completely.

    Risk The response omits, misclassifies or overstates percentage by significant location.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting percentage by significant location.

  • Birth or indefinite-residency evidence is reported accurately and completely.

    Risk The response omits, misclassifies or overstates birth or indefinite-residency evidence.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting birth or indefinite-residency evidence.

  • Current population rather than new hires is reported accurately and completely.

    Risk The response omits, misclassifies or overstates current population rather than new hires.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting current population rather than new hires.

  • Location-specific definitions and consistency is reported accurately and completely.

    Risk The response omits, misclassifies or overstates location-specific definitions and consistency.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting location-specific definitions and consistency.

Evidence pack to prepare

Common reporting gaps

  • Calculating only newly recruited senior managers.
  • Using part-time managers in the full-time population.
  • Defining local by current address or recruitment office alone.
  • Omitting the denominator or location-level percentages.
  • Using material locations instead of significant locations of operation.
  • Combining locations that use different definitions without explanation.
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Dr Ross Kurinko

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Framework references

Relevant GRI requirements and related disclosures

GRI

GRI 202-2

within GRI 202: Market Presence

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