This metric is based on the Global Reporting Initiative (GRI) Standard Guidelines.

In the context of the GRI Standards, the environmental dimension of sustainability concerns an organization’s impacts on living and non-living natural systems, including land, air, water, and ecosystems.

GRI 307 addresses the topic of environmental compliance, covering an organization’s compliance with environmental laws and/or regulations. This includes compliance with international declarations, conventions and treaties, as well as national, sub-national, regional, and local regulations.

Non-compliance within an organization can indicate the ability of management to ensure that operations conform to certain performance parameters. In some circumstances, non-compliance can lead to clean-up obligations or other costly environmental liabilities. The strength of an organization’s compliance record can also affect its ability to expand operations or gain permits.

*In 2018, the GRI G4 Sustainability Reporting Guidelines were superseded by the GRI Sustainability Reporting Standards (GRI standards). For this metric, the code G4-EN29 is used in company reporting prior to 2018, and the new GRI 307-1 code used in reporting from 2018 onwards. The methodology for the former G4 standard for this metric can be found here.