Under GRI Disclosure 103-1, what two items are organizations expected to describe?

Under GRI Disclosure 103-1, organizations are expected to describe why a topic is considered material and the topic boundary. This is essential because the GRI framework is designed to enhance transparency and accountability in sustainability reporting.

When organizations assess material topics, understanding why these topics are significant helps stakeholders comprehend the organization's priorities and the rationale behind its focus. Additionally, the topic boundary specifies where the impacts, risks, and opportunities associated with the material topic are felt, whether within the organization, its supply chain, or other related areas. This ensures that the reporting is comprehensive and that stakeholders can see the full context of the organization’s sustainability performance.

The other options do not align with the specific requirements of GRI Disclosure 103-1. Describing the material assessment process and topic overview is relevant but not part of this particular requirement. Legal implications and financial impacts do not fall under the focus of this specific disclosure, which centers on materiality's rationale and boundaries. Similarly, stakeholder impacts and policy commitments, while important, pertain to different facets of sustainability reporting not specifically called for in Disclosure 103-1.