What does GRI 204 cover?

The Global Reporting Initiative (GRI) Standard 204 focuses specifically on procurement practices and their impact on local economies. This standard encourages organizations to assess how their procurement activities contribute to economic development in the areas where they operate. It emphasizes the importance of local suppliers, the promotion of fair business practices, and the sustainable sourcing of materials. By requiring organizations to report on these practices, GRI 204 aims to foster transparency and accountability in how procurement decisions affect local economies, thus driving positive social and economic outcomes.

In the context of GRI, addressing procurement practices through this standard helps organizations understand and articulate their role in supporting local communities and economies, highlighting issues such as local sourcing, supplier diversity, and ethical procurement practices. It aligns with broader sustainability goals that aim to create a positive impact beyond just financial performance.

The other choices refer to different GRI standards covering distinct areas—employee health and safety, greenhouse gas emissions, and corporate governance—each of which falls under separate guidelines within the GRI framework.