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GRI Training Partner GRI 203 · Indirect Economic Impacts · Disclosure GRI 203-2

Significant indirect economic impacts

GRI 203-2 · mandatory · narrative disclosure

Disclosure 203-2 requires an organization to report examples of its significant identified indirect economic impacts, including positive and negative impacts. An indirect economic impact is an additional economic consequence arising from the direct impact of the organization’s financial transactions and flows of money with stakeholders. It can be monetary or non-monetary and can affect productive capacity, stakeholder well-being and longer-term development prospects.

Legal status

GRI 203: Indirect Economic Impacts 2016 remains applicable at the date of this review. It is included in Phase 3 of GRI's Economic Impact project; no revised GRI 203 Standard is yet applicable.

Start preparing ↓ Official Global Reporting Initiative source ↗

Disclosure focus

For each reported example, the organization explains why the impact is significant in the context of relevant external benchmarks and stakeholder priorities. External benchmarks can include national or international standards, protocols, policy agendas, official economic statistics and other authoritative reference points. Internal budget or expenditure comparisons can provide additional context but do not replace the required external context.

The disclosure should report the economic consequence, not only the organization’s activity or direct expenditure. For example, local procurement expenditure is a direct financial flow; related changes in supplier output, employment, income, skills or local tax receipts can be indirect economic impacts.

The organization should select examples through its process for identifying impacts and determining material topics. The selection should reflect significant positive and negative impacts across relevant activities and business relationships and should not be limited to flagship projects or positive success stories.

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.

  • Description of the indirect economic impact

    Sustainability Reporting / data owner

    Required. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting description of the indirect economic impact.

    Watch for The published response for description of the indirect economic impact is incomplete or does not match the supporting records.

  • Positive or negative

    Sustainability Reporting / data owner

    Required. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting positive or negative.

    Watch for The published response for positive or negative is incomplete or does not match the supporting records.

  • Actual or potential

    Sustainability Reporting / data owner

    Necessary contextual information. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting actual or potential.

    Watch for The published response for actual or potential is incomplete or does not match the supporting records.

  • Direct financial flow or activity causing the impact

    Sustainability Reporting / data owner

    Necessary methodological information. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting direct financial flow or activity causing the impact.

    Watch for The published response for direct financial flow or activity causing the impact is incomplete or does not match the supporting records.

  • Additional indirect economic consequence

    Sustainability Reporting / data owner

    Required. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting additional indirect economic consequence.

    Watch for The published response for additional indirect economic consequence is incomplete or does not match the supporting records.

  • Stakeholders affected

    Sustainability Reporting / data owner

    Required contextual information. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting stakeholders affected.

    Watch for The published response for stakeholders affected is incomplete or does not match the supporting records.

  • Economy or geographic area affected

    Sustainability Reporting / data owner

    Required contextual information. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting economy or geographic area affected.

    Watch for The published response for economy or geographic area affected is incomplete or does not match the supporting records.

  • Value-chain location

    Sustainability Reporting / data owner

    Necessary contextual information. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting value-chain location.

    Watch for The published response for value-chain location is incomplete or does not match the supporting records.

  • Time horizon

    Sustainability Reporting / data owner

    Necessary contextual information. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting time horizon.

    Watch for The published response for time horizon is incomplete or does not match the supporting records.

  • Monetary or non-monetary

    Sustainability Reporting / data owner

    Necessary contextual information. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting monetary or non-monetary.

    Watch for The published response for monetary or non-monetary is incomplete or does not match the supporting records.

  • External benchmark

    Sustainability Reporting / data owner

    Required. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting external benchmark.

    Watch for The published response for external benchmark is incomplete or does not match the supporting records.

  • Stakeholder priority

    Sustainability Reporting / data owner

    Required. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting stakeholder priority.

    Watch for The published response for stakeholder priority is incomplete or does not match the supporting records.

  • Source of stakeholder priority

    Sustainability Reporting / data owner

    Required evidence. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting source of stakeholder priority.

    Watch for The published response for source of stakeholder priority is incomplete or does not match the supporting records.

  • Significance explanation

    Sustainability Reporting / data owner

    Required. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting significance explanation.

    Watch for The published response for significance explanation is incomplete or does not match the supporting records.

  • Measurement or estimation method

    Sustainability Reporting / data owner

    Required where quantitative data are reported. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting measurement or estimation method.

    Watch for The published response for measurement or estimation method is incomplete or does not match the supporting records.

  • Attribution method

    Sustainability Reporting / data owner

    Required where the organization claims causation. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting attribution method.

    Watch for The published response for attribution method is incomplete or does not match the supporting records.

  • Assumptions and limitations

    Sustainability Reporting / data owner

    Required where estimates are used. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting assumptions and limitations.

    Watch for The published response for assumptions and limitations is incomplete or does not match the supporting records.

  • Negative consequences assessed

    Sustainability Reporting / data owner

    Required methodological control. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting negative consequences assessed.

    Watch for The published response for negative consequences assessed is incomplete or does not match the supporting records.

  • Evidence source

    Sustainability Reporting / data owner

    Assurance control. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.

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

    Watch for The published response for evidence source is incomplete or does not match the supporting records.

  • GRI 3 material-topic linkage

    Operations / Supply Chain / Sustainability Reporting

    Required contextual information. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting gri 3 material-topic linkage.

    Watch for The published response for gri 3 material-topic linkage is incomplete or does not match the supporting records.

  • Reason for omission

    Sustainability Reporting / data owner

    Required in GRI content index where an applicable requirement is omitted. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.

    Evidence Approved source records, calculation files, reconciliations and review evidence supporting reason for omission.

    Watch for The published response for reason for omission is incomplete or does not match the supporting records.

Before you start

  • Disclosure 203-2 requires an organization to report examples of its significant identified indirect economic impacts, including positive and negative impacts. An indirect economic impact is an additional economic consequence arising from the direct impact of the organization’s financial transactions and flows of money with stakeholders. It can be monetary or non-monetary and can affect productive capacity, stakeholder well-being and longer-term development prospects.
  • Apply Disclosure 203-2 when the related topic is material and this disclosure is relevant to the organisation's impacts, or when an applicable GRI Sector Standard identifies it for reporting.
  • Have the supporting records and the final response been reconciled?
＋ Show GRI 203-2 sub-elements (LRA working checklist)

How to prepare it

Disclosure 203-2 requires an organization to report examples of its significant identified indirect economic impacts, including positive and negative impacts. An indirect economic impact is an additional economic consequence arising from the direct impact of the organization’s financial transactions and flows of money with stakeholders. It can be monetary or non-monetary and can affect productive capacity, stakeholder well-being and longer-term development prospects.
Collect and reconcile the records for: Description of the indirect economic impact; Positive or negative; Actual or potential; Direct financial flow or activity causing the impact; Additional indirect economic consequence; Stakeholders affected; Economy or geographic area affected; Value-chain location; Time horizon; Monetary or non-monetary; External benchmark; Stakeholder priority; Source of stakeholder priority; Significance explanation; Measurement or estimation method; Attribution method; Assumptions and limitations; Negative consequences assessed; Evidence source; GRI 3 material-topic linkage; Reason for omission.
Apply Disclosure 203-2 when the related topic is material and this disclosure is relevant to the organisation's impacts, or when an applicable GRI Sector Standard identifies it for reporting.
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 the reporting-period records and reconciliations for Disclosure 203-2: Description of the indirect economic impact; Positive or negative; Actual or potential; Direct financial flow or activity causing the impact; Additional indirect economic consequence; Stakeholders affected; Economy or geographic area affected; Value-chain location; Time horizon; Monetary or non-monetary; External benchmark; Stakeholder priority; Source of stakeholder priority; Significance explanation; Measurement or estimation method; Attribution method; Assumptions and limitations; Negative consequences assessed; Evidence source; GRI 3 material-topic linkage; Reason for omission. Include scope, definitions, methods, assumptions, limitations, owners and approvals.

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

Better request

Provide the reporting-period records and reconciliations for Disclosure 203-2: Description of the indirect economic impact; Positive or negative; Actual or potential; Direct financial flow or activity causing the impact; Additional indirect economic consequence; Stakeholders affected; Economy or geographic area affected; Value-chain location; Time horizon; Monetary or non-monetary; External benchmark; Stakeholder priority; Source of stakeholder priority; Significance explanation; Measurement or estimation method; Attribution method; Assumptions and limitations; Negative consequences assessed; Evidence source; GRI 3 material-topic linkage; Reason for omission. Include scope, definitions, methods, assumptions, limitations, owners and approvals.

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

The organization should select examples through its process for identifying impacts and determining material topics. The selection should reflect significant positive and negative impacts across relevant activities and business relationships and should not be limited to flagship projects or positive success stories.

Context note

Keep mandatory Requirements, GRI recommendations and additional LRA preparation controls clearly distinguished. Use a GRI 1 reason for omission where an applicable requirement cannot be reported.

Download Centre

Preparation tools & forms

Download preparation tools for GRI 203-2 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

  • Description of the indirect economic impact is reported accurately and completely.

    Risk The response omits, misclassifies or overstates description of the indirect economic impact.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting description of the indirect economic impact.

  • Positive or negative is reported accurately and completely.

    Risk The response omits, misclassifies or overstates positive or negative.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting positive or negative.

  • Actual or potential is reported accurately and completely.

    Risk The response omits, misclassifies or overstates actual or potential.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting actual or potential.

  • Direct financial flow or activity causing the impact is reported accurately and completely.

    Risk The response omits, misclassifies or overstates direct financial flow or activity causing the impact.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting direct financial flow or activity causing the impact.

  • Additional indirect economic consequence is reported accurately and completely.

    Risk The response omits, misclassifies or overstates additional indirect economic consequence.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting additional indirect economic consequence.

  • Stakeholders affected is reported accurately and completely.

    Risk The response omits, misclassifies or overstates stakeholders affected.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting stakeholders affected.

  • Economy or geographic area affected is reported accurately and completely.

    Risk The response omits, misclassifies or overstates economy or geographic area affected.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting economy or geographic area affected.

  • Value-chain location is reported accurately and completely.

    Risk The response omits, misclassifies or overstates value-chain location.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting value-chain location.

  • Time horizon is reported accurately and completely.

    Risk The response omits, misclassifies or overstates time horizon.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting time horizon.

  • Monetary or non-monetary is reported accurately and completely.

    Risk The response omits, misclassifies or overstates monetary or non-monetary.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting monetary or non-monetary.

  • External benchmark is reported accurately and completely.

    Risk The response omits, misclassifies or overstates external benchmark.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting external benchmark.

  • Stakeholder priority is reported accurately and completely.

    Risk The response omits, misclassifies or overstates stakeholder priority.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting stakeholder priority.

  • Source of stakeholder priority is reported accurately and completely.

    Risk The response omits, misclassifies or overstates source of stakeholder priority.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting source of stakeholder priority.

  • Significance explanation is reported accurately and completely.

    Risk The response omits, misclassifies or overstates significance explanation.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting significance explanation.

  • Measurement or estimation method is reported accurately and completely.

    Risk The response omits, misclassifies or overstates measurement or estimation method.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting measurement or estimation method.

  • Attribution method is reported accurately and completely.

    Risk The response omits, misclassifies or overstates attribution method.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting attribution method.

  • Assumptions and limitations is reported accurately and completely.

    Risk The response omits, misclassifies or overstates assumptions and limitations.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting assumptions and limitations.

  • Negative consequences assessed is reported accurately and completely.

    Risk The response omits, misclassifies or overstates negative consequences assessed.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting negative consequences assessed.

  • Evidence source is reported accurately and completely.

    Risk The response omits, misclassifies or overstates evidence source.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting evidence source.

  • GRI 3 material-topic linkage is reported accurately and completely.

    Risk The response omits, misclassifies or overstates gri 3 material-topic linkage.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting gri 3 material-topic linkage.

  • Reason for omission is reported accurately and completely.

    Risk The response omits, misclassifies or overstates reason for omission.

    Evidence to check Approved source records, calculation files, reconciliations and review evidence supporting reason for omission.

Evidence pack to prepare

Common reporting gaps

  • Reporting an activity or direct expenditure instead of its indirect economic consequence.
  • Using internal budget comparisons instead of external benchmarks and stakeholder priorities.
  • Using internal labels in place of the defined GRI terms.
  • Leaving a required preparation field unsupported by traceable evidence.
  • Treating GRI recommendations as mandatory requirements or mandatory requirements as optional.
  • Publishing estimates, exclusions or partial scope without methods, assumptions and the applicable reason for omission.
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Framework references

Relevant GRI requirements and related disclosures

GRI

GRI 203-2

within GRI 203: Indirect Economic Impacts

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