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Dr Ross KurinkoLinkedIn
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15+ years on FTSE 100 & Fortune Global 500 disclosures
Canary Wharf, London
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GRI 204: Procurement Practices·Disclosure GRI 204-1
Proportion of spending on local suppliers
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 204: Procurement Practices 2016 remains applicable at the date of this review. It is included in Phase 3 of GRI's Economic Impact project; no revised GRI 204 Standard is yet applicable.
Published passport
Last reviewed 2026-08-01
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 204: Procurement Practices
Disclosure GRI 204-1 · 2016
Last reviewed
2026-08-01
LRA educational guidance · Not issued or endorsed by Global Reporting Initiative
To prepare this disclosure
Disclosure focus
Disclosure 204-1 requires an organization to report the percentage of the procurement budget used for significant locations of operation that is spent on suppliers local to those operations. The organization also reports its geographical definition of local and the definition it uses for significant locations of operation.
A local supplier is an organization or person that provides a product or service to the reporting organization and is based in the same geographic market, with no transnational payment made to that supplier. The geographic market can be the surrounding community, a region within a country, or the country as a whole.
GRI recommends calculating the percentage using invoices or commitments made during the reporting period, for example through accrual accounting. The numerator and denominator should use the same procurement categories, reporting period, organizational scope and accounting basis. Supplier count is not a substitute for procurement spending.
Purchases made centrally by headquarters for significant locations should be included where they relate to those locations. Different geographic definitions of local can be used where justified by operating context, provided each definition is disclosed and applied consistently.
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 |
|---|---|---|---|
| Definition of significant locations of operation | Required. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus. | Approved source records, calculation files, reconciliations and review evidence supporting definition of significant locations of operation. | Legal / Compliance / Sustainability Reporting |
| List of significant locations | Necessary to apply the definition. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus. | Approved source records, calculation files, reconciliations and review evidence supporting list of significant locations. | Sustainability Reporting / data owner |
| Geographic definition of local | Required. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus. | Approved source records, calculation files, reconciliations and review evidence supporting geographic definition of local. | Procurement / Finance / Sustainability Reporting |
| Supplier legal entity | Required methodological information. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus. | Approved source records, calculation files, reconciliations and review evidence supporting supplier legal entity. | Legal / Compliance / Sustainability Reporting |
| Geographic market | Required. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus. | Approved source records, calculation files, reconciliations and review evidence supporting geographic market. | Sustainability Reporting / data owner |
| Transnational payment check | Required by official definition. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus. | Approved source records, calculation files, reconciliations and review evidence supporting transnational payment check. | Sustainability Reporting / data owner |
| Reporting period | Required contextual information. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus. | Approved source records, calculation files, reconciliations and review evidence supporting reporting period. | Sustainability Reporting / data owner |
| Invoice or commitment basis | Recommended by GRI. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus. | Approved source records, calculation files, reconciliations and review evidence supporting invoice or commitment basis. | Sustainability Reporting / data owner |
| Total procurement budget | Required denominator. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus. | Approved source records, calculation files, reconciliations and review evidence supporting total procurement budget. | Procurement / Finance / Sustainability Reporting |
| Local supplier procurement spend | Required numerator. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus. | Approved source records, calculation files, reconciliations and review evidence supporting local supplier procurement spend. | Procurement / Finance / Sustainability Reporting |
| Local supplier spending percentage | Required. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus. | Approved source records, calculation files, reconciliations and review evidence supporting local supplier spending percentage. | Procurement / Finance / Sustainability Reporting |
| Procurement categories included | Required methodological information. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus. | Approved source records, calculation files, reconciliations and review evidence supporting procurement categories included. | Procurement / Finance / Sustainability Reporting |
| Procurement categories excluded | Required methodological information. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus. | Approved source records, calculation files, reconciliations and review evidence supporting procurement categories excluded. | Procurement / Finance / Sustainability Reporting |
| Central procurement allocation | Required where applicable. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus. | Approved source records, calculation files, reconciliations and review evidence supporting central procurement allocation. | Procurement / Finance / Sustainability Reporting |
| Intercompany treatment | Required methodological information. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus. | Approved source records, calculation files, reconciliations and review evidence supporting intercompany treatment. | Sustainability Reporting / data owner |
| Credit notes and cancellations | Required methodological information. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus. | Approved source records, calculation files, reconciliations and review evidence supporting credit notes and cancellations. | Sustainability Reporting / data owner |
| Foreign currency conversion | Required where applicable. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus. | Approved source records, calculation files, reconciliations and review evidence supporting foreign currency conversion. | Sustainability Reporting / data owner |
| Supplier-count information | Additional only; not a substitute for spending. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus. | Approved source records, calculation files, reconciliations and review evidence supporting supplier-count information. | Procurement / Finance / Sustainability Reporting |
| Estimates and manual overrides | Required where applicable. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus. | Approved source records, calculation files, reconciliations and review evidence supporting estimates and manual overrides. | Sustainability Reporting / data owner |
| Reconciliation to audited or internally audited accounts | Recommended. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus. | Approved source records, calculation files, reconciliations and review evidence supporting reconciliation to audited or internally audited accounts. | Sustainability Reporting / data owner |
| Reason for omission | 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. | Approved source records, calculation files, reconciliations and review evidence supporting reason for omission. | Sustainability Reporting / data owner |
＋ Show GRI 204-1 sub-elements (LRA working checklist)
Required. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.
Necessary to apply the definition. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.
Required. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.
Required methodological information. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.
Required. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.
Required by official definition. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.
Required contextual information. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.
Recommended by GRI. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.
Required denominator. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.
Required numerator. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.
Required. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.
Required methodological information. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.
Required methodological information. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.
Required where applicable. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.
Required methodological information. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.
Required methodological information. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.
Required where applicable. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.
Additional only; not a substitute for spending. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.
Required where applicable. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.
Recommended. Capture and reconcile this item using the scope, defined terms and calculation basis in the reviewed Disclosure focus.
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.
How to prepare it
Disclosure 204-1 requires an organization to report the percentage of the procurement budget used for significant locations of operation that is spent on suppliers local to those operations. The organization also reports its geographical definition of local and the definition it uses for significant locations of operation.
Collect and reconcile the records for: Definition of significant locations of operation; List of significant locations; Geographic definition of local; Supplier legal entity; Geographic market; Transnational payment check; Reporting period; Invoice or commitment basis; Total procurement budget; Local supplier procurement spend; Local supplier spending percentage; Procurement categories included; Procurement categories excluded; Central procurement allocation; Intercompany treatment; Credit notes and cancellations; Foreign currency conversion; Supplier-count information; Estimates and manual overrides; Reconciliation to audited or internally audited accounts; Reason for omission.
Apply Disclosure 204-1 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 204-1: Definition of significant locations of operation; List of significant locations; Geographic definition of local; Supplier legal entity; Geographic market; Transnational payment check; Reporting period; Invoice or commitment basis; Total procurement budget; Local supplier procurement spend; Local supplier spending percentage; Procurement categories included; Procurement categories excluded; Central procurement allocation; Intercompany treatment; Credit notes and cancellations; Foreign currency conversion; Supplier-count information; Estimates and manual overrides; Reconciliation to audited or internally audited accounts; 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 204-1: Definition of significant locations of operation; List of significant locations; Geographic definition of local; Supplier legal entity; Geographic market; Transnational payment check; Reporting period; Invoice or commitment basis; Total procurement budget; Local supplier procurement spend; Local supplier spending percentage; Procurement categories included; Procurement categories excluded; Central procurement allocation; Intercompany treatment; Credit notes and cancellations; Foreign currency conversion; Supplier-count information; Estimates and manual overrides; Reconciliation to audited or internally audited accounts; 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
Purchases made centrally by headquarters for significant locations should be included where they relate to those locations. Different geographic definitions of local can be used where justified by operating context, provided each definition is disclosed and applied consistently.
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
Professional preparation tools for GRI 204-1 — free with an LRA Community membership. Register once (it's free) and every download unlocks, together with the Disclosure Library, templates and the LRA AI Assistant.
Assurance readiness
For each claim, check the evidence
| Claim | Risk | Evidence to check |
|---|---|---|
| Definition of significant locations of operation is reported accurately and completely. | The response omits, misclassifies or overstates definition of significant locations of operation. | Approved source records, calculation files, reconciliations and review evidence supporting definition of significant locations of operation. |
| List of significant locations is reported accurately and completely. | The response omits, misclassifies or overstates list of significant locations. | Approved source records, calculation files, reconciliations and review evidence supporting list of significant locations. |
| Geographic definition of local is reported accurately and completely. | The response omits, misclassifies or overstates geographic definition of local. | Approved source records, calculation files, reconciliations and review evidence supporting geographic definition of local. |
| Supplier legal entity is reported accurately and completely. | The response omits, misclassifies or overstates supplier legal entity. | Approved source records, calculation files, reconciliations and review evidence supporting supplier legal entity. |
| Geographic market is reported accurately and completely. | The response omits, misclassifies or overstates geographic market. | Approved source records, calculation files, reconciliations and review evidence supporting geographic market. |
| Transnational payment check is reported accurately and completely. | The response omits, misclassifies or overstates transnational payment check. | Approved source records, calculation files, reconciliations and review evidence supporting transnational payment check. |
| Reporting period is reported accurately and completely. | The response omits, misclassifies or overstates reporting period. | Approved source records, calculation files, reconciliations and review evidence supporting reporting period. |
| Invoice or commitment basis is reported accurately and completely. | The response omits, misclassifies or overstates invoice or commitment basis. | Approved source records, calculation files, reconciliations and review evidence supporting invoice or commitment basis. |
| Total procurement budget is reported accurately and completely. | The response omits, misclassifies or overstates total procurement budget. | Approved source records, calculation files, reconciliations and review evidence supporting total procurement budget. |
| Local supplier procurement spend is reported accurately and completely. | The response omits, misclassifies or overstates local supplier procurement spend. | Approved source records, calculation files, reconciliations and review evidence supporting local supplier procurement spend. |
| Local supplier spending percentage is reported accurately and completely. | The response omits, misclassifies or overstates local supplier spending percentage. | Approved source records, calculation files, reconciliations and review evidence supporting local supplier spending percentage. |
| Procurement categories included is reported accurately and completely. | The response omits, misclassifies or overstates procurement categories included. | Approved source records, calculation files, reconciliations and review evidence supporting procurement categories included. |
| Procurement categories excluded is reported accurately and completely. | The response omits, misclassifies or overstates procurement categories excluded. | Approved source records, calculation files, reconciliations and review evidence supporting procurement categories excluded. |
| Central procurement allocation is reported accurately and completely. | The response omits, misclassifies or overstates central procurement allocation. | Approved source records, calculation files, reconciliations and review evidence supporting central procurement allocation. |
| Intercompany treatment is reported accurately and completely. | The response omits, misclassifies or overstates intercompany treatment. | Approved source records, calculation files, reconciliations and review evidence supporting intercompany treatment. |
| Credit notes and cancellations is reported accurately and completely. | The response omits, misclassifies or overstates credit notes and cancellations. | Approved source records, calculation files, reconciliations and review evidence supporting credit notes and cancellations. |
| Foreign currency conversion is reported accurately and completely. | The response omits, misclassifies or overstates foreign currency conversion. | Approved source records, calculation files, reconciliations and review evidence supporting foreign currency conversion. |
| Supplier-count information is reported accurately and completely. | The response omits, misclassifies or overstates supplier-count information. | Approved source records, calculation files, reconciliations and review evidence supporting supplier-count information. |
| Estimates and manual overrides is reported accurately and completely. | The response omits, misclassifies or overstates estimates and manual overrides. | Approved source records, calculation files, reconciliations and review evidence supporting estimates and manual overrides. |
| Reconciliation to audited or internally audited accounts is reported accurately and completely. | The response omits, misclassifies or overstates reconciliation to audited or internally audited accounts. | Approved source records, calculation files, reconciliations and review evidence supporting reconciliation to audited or internally audited accounts. |
| Reason for omission is reported accurately and completely. | The response omits, misclassifies or overstates reason for omission. | Approved source records, calculation files, reconciliations and review evidence supporting reason for omission. |
Evidence pack to prepare
Common reporting gaps
Using supplier count instead of the proportion of procurement spending.
Changing the geographic definition of local without disclosing and applying it consistently.
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
Available framework references and nearby disclosures relevant to preparing this requirement.
GRI
GRI 204-1
within GRI 204: Procurement Practices
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