How should organizations handle disclosures that are not applicable?

Organizations should specify the reasons why certain disclosures are considered not applicable. This approach is important because it enhances transparency and provides context to stakeholders, allowing them to better understand the organization's reporting framework and the basis for its decisions. By offering explanations for the non-applicability of specific disclosures, organizations reinforce their commitment to accountability and provide clarity that can prevent misconceptions.

Leaving disclosures blank may lead to confusion among stakeholders who are relying on the information to assess the organization’s performance and impact. Reporting suggested alternatives or making assumptions based on industry standards does not adequately fulfill the requirements set out by the GRI, as it may mislead stakeholders if the context is not clearly provided. Hence, specifying reasons ensures that the report remains coherent and useful for its intended audience.