What is the primary objective of **GRI**?

**The primary objective of GRI is to provide a global common language for organizations to report their most significant economic, environmental, and social impacts.** GRI Standards enable transparency and accountability through a modular system of **Universal Standards** (GRI 1: Foundation, GRI 2: General Disclosures, GRI 3: Material Topics), **Sector Standards**, and **Topic Standards** like GRI 403 (Occupational Health and Safety). This impact-centric materiality requires identifying actual and potential impacts via a four-step process: understand context, identify impacts, assess significance, prioritize for reporting.

Who is legally or professionally required to comply with **GRI**?

**No organization is legally required to comply with GRI, as it is a voluntary framework.** However, it is professionally expected for large corporates, multinationals, and listed companies facing stakeholder demands, with 96% of G250 firms and 67% of N100 using it per KPMG 2020. High-impact sectors (e.g., Oil & Gas, Mining) must apply relevant **Sector Standards** when reporting "in accordance."

Does **GRI** require an external audit or third-party certification?

**GRI does not require external audit or third-party certification.** **Verifiability** is ensured via the mandatory **GRI Content Index**, which lists all disclosures, locations, applied Standards, and omission reasons. GRI 403-8 recommends disclosing internal/external audit coverage percentages for OHS systems, supporting optional assurance.

How often should an assessment for **GRI** be performed?

**GRI materiality assessments under GRI 3 must be performed ongoing, not confined to annual reporting cycles.** The four-step process (context, impacts, significance, prioritization) reflects continuous due diligence, with highest governance body oversight and documentation of material topics (Disclosures 3-1 to 3-3).

What are the consequences of non-compliance with **GRI**?

**Non-compliance with GRI carries no direct penalties, as it is voluntary.** Indirect risks include reputational damage, stakeholder distrust, and misalignment with regulations referencing GRI (e.g., CSRD). Omissions must be justified in the **Content Index** with reasons like confidentiality, maintaining transparency.

An **GRI** be mapped to other international frameworks?

**Yes, GRI can and is frequently mapped to other frameworks for interoperability.** Its impact focus complements investor standards, with joint GRI-SASB guidance enabling combined use. Universal Standards align with due diligence norms (UN Guiding Principles, ILO), supporting multi-stakeholder reporting without substitution.

What is the first step to begin implementing **GRI**?

**The first step to implement GRI is to apply GRI 1: Foundation 2021, understanding "in accordance" requirements and reporting principles (accuracy, balance, verifiability).** Then prepare GRI 2 general disclosures and conduct GRI 3 materiality assessment, overseen by highest governance, to identify topics for Topic Standards.

What is the primary objective of **MLPS 2.0 (Multi-Level Protection Scheme)**?

**The primary objective of MLPS 2.0 is to establish a graded cybersecurity protection system ensuring security controls match the potential harm from system compromise to national security, social order, and public interests.** It classifies information systems into five levels (1-5) based on impact severity, mandating commensurate technical, management, physical, and personnel controls per GB/T 22239-2020 standards. This integrates cybersecurity into national stability objectives via common baselines and extensions for cloud, IoT, big data, and industrial systems.

Who is legally or professionally required to comply with **MLPS 2.0 (Multi-Level Protection Scheme)**?

**All network operators in mainland China must comply with MLPS 2.0 under Article 21 of the 2017 Cybersecurity Law.** This encompasses domestic enterprises, foreign-invested entities, cloud providers, and operators of IT, OT, IoT, or big data systems. Critical sectors like energy, finance, telecom, and healthcare face heightened scrutiny, with Level 3+ typical for large platforms handling user data.

Does **MLPS 2.0 (Multi-Level Protection Scheme)** require an external audit or third-party certification?

**Yes, MLPS 2.0 mandates external security reviews by licensed Chinese firms for Level 2+ systems, scoring at least 75/100 for certification.** Operators submit documentation (policies, architectures, risk assessments) to local Public Security Bureaus (PSBs) for approval. Level 3+ requires annual re-evaluations; Level 1 relies on self-assessment.

How often should an assessment for **MLPS 2.0 (Multi-Level Protection Scheme)** be performed?

**Assessments under MLPS 2.0 must occur periodically based on level: biennially for Level 2, annually for Level 3, semi-annually for Level 4, and as mandated for Level 5.** Re-evaluations are also required post-major changes (e.g., cloud migration). Self-inspections apply to all levels, with PSB oversight for higher ones.

What are the consequences of non-compliance with **MLPS 2.0 (Multi-Level Protection Scheme)**?

**Non-compliance with MLPS 2.0 risks fines up to 100,000 RMB, operational suspension, system shutdowns, and intensified PSB inspections.** Enforcement since 2019 links certification to business license renewals; severe cases in critical sectors yield multimillion RMB penalties, blacklisting, or criminal liability for data breaches.

An **MLPS 2.0 (Multi-Level Protection Scheme)** be mapped to other international frameworks?

**Yes, MLPS 2.0 control domains—physical, network, data, operations, governance—map to ISO 27001 Annex A and NIST CSF categories.** Organizations leverage existing ISMS Statements of Applicability for gap analysis, adapting for MLPS-specific grading, PSB filings, data localization, and law enforcement oversight.

What is the first step to begin implementing **MLPS 2.0 (Multi-Level Protection Scheme)**?

**The first step is conducting a provisional self-assessment to classify systems into Levels 1-5 based on impact to national security, social order, and public interests.** Inventory assets, document rationale per GB/T 22240-2020, engage stakeholders, then file with PSBs for Level 2+ expert validation.

GRI vs MLPS 2.0 (Multi-Level Protection Scheme)

Standards Comparison

GRI

Voluntary

2021

Global framework for sustainability impact reporting

MLPS 2.0 (Multi-Level Protection Scheme)

Mandatory

N/A

China's mandatory graded cybersecurity protection scheme

Quick Verdict

GRI enables voluntary global sustainability impact reporting for stakeholders, while MLPS 2.0 mandates cybersecurity classification and controls for China's networks. Companies use GRI for transparency and benchmarking; MLPS 2.0 for legal compliance and operational continuity.

Sustainability Reporting

GRI

Global Reporting Initiative (GRI) Standards

Cost

€€€€

Complexity

High

Implementation Time

12-18 months

Key Features

Impact-centric materiality via GRI 3 process
Modular Universal, Sector, Topic Standards
Mandatory Content Index for traceability
Reporting principles: accuracy, balance, verifiability
Value chain disclosures including supply chain

Standard

MLPS 2.0 (Multi-Level Protection Scheme)

Multi-Level Protection Scheme 2.0

Cost

€€€€

Complexity

Medium

Implementation Time

12-18 months

Key Features

Five-level impact-based system classification
Mandatory PSB registration for Level 2+ systems
Graded technical and governance controls
Third-party audits with 75/100 pass score
Periodic re-evaluations and law enforcement oversight

Detailed Analysis

A comprehensive look at the specific requirements, scope, and impact of each standard.

GRI Details

What It Is

Global Reporting Initiative (GRI) Standards is a modular sustainability reporting framework providing a global common language for disclosing economic, environmental, and social impacts. Its primary purpose is impact-centric transparency, using double materiality—organization impacts on stakeholders and vice versa—via structured assessments in GRI 3: Material Topics.

Key Components

Universal Standards (GRI 1 Foundation, GRI 2 General Disclosures, GRI 3 Material Topics) for baseline requirements.
Topic Standards (e.g., GRI 403 Occupational Health & Safety, GRI 308 Supplier Environmental Assessment) for specific disclosures.
Sector Standards for high-impact industries.
Core principles: accuracy, balance, verifiability; mandatory GRI Content Index for compliance.

Why Organizations Use It

Drives accountability, regulatory alignment (e.g., EU CSRD), risk management, benchmarking, and stakeholder trust. Enhances credibility, supports investor demands, reduces greenwashing risks.

Implementation Overview

Phased approach: materiality assessment, data systems, management disclosures, assurance. Applies universally; no certification but external assurance recommended. Involves governance, cross-functional teams, supplier engagement.

MLPS 2.0 (Multi-Level Protection Scheme) Details

What It Is

MLPS 2.0 (Multi-Level Protection Scheme) is China's legally mandated cybersecurity framework under the 2016 Cybersecurity Law. It requires network operators to classify systems into five protection levels based on potential harm to national security, social order, and public interests, implementing graded technical and governance controls.

Key Components

Core domains: physical security, network protection, data security, access control, monitoring, governance.
Standards like GB/T 22239-2019, GB/T 25070-2019 define baselines and extensions for cloud, IoT, big data.
Built on impact-based classification; compliance via third-party audits (75/100 score minimum) and PSB approval for Level 2+.

Why Organizations Use It

Mandatory for all China-based networks; avoids fines, suspensions, inspections.
Enhances risk management, resilience; aligns with data laws; builds regulator trust.
Enables market access, procurement for critical sectors.

Implementation Overview

Phased: classify, gap analysis, remediate, audit, file with PSBs.
Applies to all sizes/industries in mainland China; ongoing re-evaluations required. (178 words)

Key Differences

Aspect	GRI	MLPS 2.0 (Multi-Level Protection Scheme)
Scope	Sustainability impacts on economy, environment, people	Cybersecurity protection of networks and systems
Industry	All sectors worldwide, voluntary for any organization	All network operators in China, mandatory
Nature	Voluntary global reporting standards	Mandatory Chinese cybersecurity regulation
Testing	Self-assurance, optional third-party verification	Mandatory third-party audits, PSB approval
Penalties	No legal penalties, loss of credibility	Fines, operational suspension, enforcement actions