Define Due Diligence in the context of GRI standards.

In the context of GRI standards, due diligence specifically refers to the process of mitigating negative impacts. This approach is fundamental to sustainability reporting, as it emphasizes the need for organizations to assess and understand the actual and potential impacts of their activities on the environment and society.

The GRI framework encourages companies to actively identify, assess, and manage risks associated with their operations, therefore preventing harm and fostering responsible practices. This proactive stance allows organizations to engage in continuous improvement by addressing potential negative effects on stakeholders and the environment, thus enhancing their overall sustainability performance.

While other choices touch on aspects relevant to business practices, they do not encompass the core aspect of due diligence as defined by GRI standards. Identifying growth opportunities or using financial analysis tools doesn't align with the focused commitment to impact management that is central to due diligence in sustainability contexts.