Which GRI Standard provides guidance on stakeholder engagement?

The correct answer is GRI 102, which provides guidelines on stakeholder engagement as part of the broader contextual framework for sustainability reporting. This standard emphasizes the importance of recognizing stakeholder inclusivity as a core principle, where organizations are encouraged to identify their stakeholders and engage them in meaningful dialogue. This engagement helps organizations understand the concerns and expectations of those affected by their activities and impacts, ultimately leading to more informed decision-making and better sustainability practices.

By focusing on stakeholder engagement, GRI 102 lays the foundational groundwork for organizations to report on various sustainability topics and initiatives effectively. It also guides organizations in how to communicate their approach to management, governance, and sustainable practices transparently.

Other standards mentioned in the choices pertain to different aspects of sustainability reporting. For instance, GRI 201 focuses more on economic performance, while GRI 103 deals with the management approach to different sustainability topics. These standards are essential for developing a comprehensive sustainability report, but they do not specifically target stakeholder engagement as GRI 102 does.