GRI 202 Market Presence

The two GRI 202 disclosures

202-1 Ratios of standard entry level wage by gender compared to local minimum wage: For each significant location of operation, the ratio of the standard entry-level wage to the local minimum wage, broken down by gender. Also: whether a local minimum wage exists at the location and, if not, what reference is used.

The entry-level wage is the lowest base wage paid to any category of worker (excluding overtime, bonuses, and benefits). The minimum wage is the legally mandated minimum for the jurisdiction. A ratio of 1.0 means the company pays exactly the minimum wage; a ratio of 1.5 means the company pays 50% above minimum.

Why it matters: In locations where the minimum wage is below a living wage (sufficient for basic needs), the ratio of entry wage to minimum wage indicates whether the company is contributing to decent work or simply meeting the legal floor. Companies with ratios significantly above minimum wage in low-wage countries demonstrate commitment to living wages and economic development.

202-2 Proportion of senior management hired from the local community: Percentage of senior management at significant locations of operation who are hired from the local community. 'Local community' typically means the country or region of operation — not necessarily the immediate vicinity of the site.

This metric assesses localisation of senior roles — whether the company brings in expatriate managers or develops and promotes local talent. High local senior management proportions indicate genuine community economic integration; low proportions may indicate glass ceilings for local employees.

Living wages and ESRS S1-10

GRI 202-1 entry wage disclosure connects to the broader living wage movement — the concept that workers should be paid enough to meet their basic needs regardless of the legal minimum wage.

ESRS S1-10 (adequate wages): CSRD requires companies to disclose whether their own workforce earns an adequate wage — defined as sufficient to meet the needs of workers and their families in their location. This is the ESRS equivalent of the GRI 202-1 spirit — going beyond minimum wage compliance to adequate wage assessment.

Living wage benchmarks: Several organisations publish living wage benchmarks by country and city — the Living Wage Foundation (UK), the Global Living Wage Coalition (global), and Anker Research Institute (sector-specific). Comparing your entry-level wages to living wage benchmarks (not just minimum wages) provides a more meaningful picture of wage adequacy.

For CSRD companies also using GRI: ESRS S1-10 adequate wage disclosure and GRI 202-1 entry wage ratio are complementary. S1-10 requires a qualitative assessment of wage adequacy; 202-1 provides the quantitative ratio against minimum wage. Collect both — the S1-10 assessment framework and the 202-1 data — as part of your integrated workforce data collection.

Local hiring and economic development

GRI 202-2 local senior management hiring connects to the broader economic development impact of multinational companies — a topic of increasing interest to investors, governments, and communities.

For extractive and manufacturing companies in developing economies: local senior management representation is a key measure of whether the company is genuinely building local capability or primarily benefiting from low-cost labour while retaining value-added management in developed country headquarters.

Defining 'local community' for 202-2: GRI allows flexibility in definition — companies may define local as the country, region, or city depending on context. For a company with a single large plant in a rural area, local might mean the surrounding municipality. For a country office in a major city, local might mean the country. Define clearly and apply consistently.

Trend disclosure: 202-2 is most meaningful as a trend — is local senior management representation increasing or decreasing? A company with 60% local senior management and a clear upward trend demonstrates genuine commitment to local talent development; a company with 30% and no stated target may be questioned about its economic development contributions.

Frequently asked questions