Which of the following best describes the nature of impacts according to GRI standards?

The appropriate description of the nature of impacts according to GRI standards encompasses the idea that impacts can be positive, negative, actual, or potential. This broader understanding aligns with the GRI's commitment to comprehensively assessing the effects of an organization’s activities on various stakeholders and the environment.

The GRI framework recognizes that organizations have a range of impacts that can affect communities, economies, and ecosystems both negatively and positively. For example, while a company may cause pollution (a negative impact), it may also create jobs or contribute to local development (positive impacts). Additionally, the distinction between actual and potential impacts is crucial for accountability and future risk management, helping organizations plan and mitigate adverse consequences while maximizing beneficial outcomes.

This understanding of impacts is critical for sustainable reporting because it pushes organizations to consider the full spectrum of their influences and responsibilities, rather than focusing only on direct negative effects or economic outcomes, which can be overly narrow or misleading in crafting a holistic view of sustainability.