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GRI and the sustainability reporting journey
 

GRI and the sustainability reporting journey

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The deck sets the scene by introducing the current sustainability context, the Global Reporting Initiative's (GRI- https://www.globalreporting.org/Pages/default.aspx) role in providing metrics for ...

The deck sets the scene by introducing the current sustainability context, the Global Reporting Initiative's (GRI- https://www.globalreporting.org/Pages/default.aspx) role in providing metrics for measuring and communicating on sustainability performance and impacts. With numerous reporting requirements out there for organizations to comply with, the deck also explains GRI's collaborative efforts in aligning with other Frameworks.
The presentation was made during the April 2013 'CSR and Sustainability in extractive and energy industries. UK global expertise' week in London. The audience was comprised of representatives from the Oil and Gas and Mining sectors, from Russia and Kazakhstan, who were relatively new to sustainability reporting. The deck puts forward the business case for reporting on sustainability performance and impacts, and includes brief sector-specific information on sustainability reporting trends in those two sectors.
Besides providing a framework for organizations to use, GRI also offer support and guidance - what this means exactly is clarified in the deck.

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  • Any discussion around the work of GRI should start by providing a context for sustainability and sustainable development. Sustainability is about the everyday choices we make, that change the world around us. It is about stewardship and looking after the planet and the responsibility we have to manage how we use the various resources available to us.On the other hand, and looking in the long term, we have ‘Sustainabledevelopment, which is development that meets the needs of the present without compromising the ability of future generations to meet their own needs’ Brundtland DefinitionThe whole spectrum of society carries this responsibility- from individuals,organizations, businesses, governmental agencies, NGOs, academia etc.  
  • We have only businesses in the room todayTo achieve sustainable development,we believe that you must be part of the solution- you are too powerful to be excluded!Some businesseshave an annual turnover larger than the GDP of a state. Changing their behaviors is an important step towards a sustainable economy. Just to give an idea of this power of companies, did you know that Exxon Mobil is bigger than Thailand: Thailand's GDP: $318.85 billion, Exxon Mobil's Revenue: $354.67 billion Exxon Mobil would rank as the world's 30th biggest countryBesides the financial wealth, businesses also tend to have a high concentration of financial, technical (research and technology), natural & human resources (experts). Moreover,you canalso influence political decisions. In conclusion, as business, you do tremendously influence the world we live in and you must be part of the solution.
  • Im my conversations with a lot of businesses across the world, one of the main questions I always hear is, ‘ how can we be profitable while at the same time contributing to solutions’I have an example of a ‘Business operating at the bottom of the pyramid’, which I hope will try to answer this questions: 1) address challenging issue 2) generate business at the same timeUnilever is one of the world’s major soap manufacturers, with brands such as Lifebuoy, Lux and Dove. The company is no stranger to the lifeprotecting potential handwashing with soap can have on poor communities. The widespread availability of good quality, low-cost, branded soap did much to improve levels of hygiene in nineteenth-century Britain. Today it has the potential to do the same in other countries. In India, over 70% of the country’s 1 billion population live in rural areas not reached by television, radio or newspapers. Illiteracy is widespread and there are deep-rooted beliefs about cleanliness that have to be addressed, such as the widely held belief that if hands look clean, they are clean. While Unilever has supported hygiene education programmes in India for many years, in 2002 the Lifebuoy brand team decided that, to have any real impact on reducing diarrhoeal disease, something bigger was needed. It was decided to create a new programme with the bold objective of educating 200 million Indians – 20 per cent of the population – to wash their hands with soap after defecating and to achieve this goal within five years. The campaign, called SwasthyaChetna, meaning ‘Health Awakening’, is the single largest rural health and hygiene education programme ever undertaken in India.Clearly, this is a marketing programme with social benefits”, explains Hindustan Lever Lifebuoy Brand Manager Harpreet-Singh Tibb. “We recognise that the health of our business is totally interconnected with the health of the communities we serve and if we are to grow sales of our brand, we have to increase the number of people who use soap”.As you can see from this example of unilever, their approach to corporate social responsibility is not philanthropic, but strategic. It generates profits for the business, but also contributes to sustainable development.
  • We are here to discuss sustainability reporting and its link to sustainable development. So, what is the strategic context of sustainability reporting vis a vis sustainable development?Demand for sustainability performance information is increasing (investors)Most reports lack material focus Metrics not coherent or harmonizedBut who provides these metrics?  GRI does!
  • MEMORIZE!!Vision: A sustainable global economy where organizations manage their economic, environmental, social and governance performance and impacts responsibly, and report transparentlyMission:To make sustainability reporting standard practice by providing guidance and support to organizations
  • GRI works with a global network of thousands of people and organizationsGRI has several official constituency groups it works with to develop new reporting guidance:BusinessCivil SocietyFinancial MarketsLaborMediating Institutions (including academic and consulting organizations)
  • The Secretariat– based in Amsterdam – implements GRI’s technical work and manages network and institutional communications, stakeholder relations, financial admin and outreach initiativesFocal Points give GRI a regional presence on the ground, build sustainability reporting capacity and connect local sustainability initiatives with global ones, with the added insight of local knowledge and languages.Governance bodiesBoard of Directors: Maximum 16 members with the ultimatefinancial and legal responsibility for GRI, including final decision making on Guidelines revisions, organizational strategy, and work plansTechnical Advisory Committee: between 10-15 members,recommends overall direction of Reporting Framework, resolves important issues that emerge around the Guidelines, and ensures guidance is created under due processStakeholder Council: 50 members; the formal stakeholder policy forum within GRI’s governance structure. SC advises the Board on policy and strategy. Some SC members participate in Reporting Framework Working GroupsGovernmental Advisory Group: a high-level advisory body that provides GRI’s Board and Executive Management with a direct source of advice from governments. It is an informal body with no constitutional role, thereby preserving GRI’s independenceOrganizational Stakeholders are GRI’s core supporters, providing vital funding and supporting GRI’s vision and mission.GRI has global strategic partnerships with:OECDUN Global CompactUN Environment ProgrammeISOOptional: You can add synergies logos as well to this slide if the context of the presentation requires so. So Guidelines are a true global good, created by the people, for the people!
  • The effective communication of economic, environmental, social and governance performance
  • How do companies decide what to include in a sustainability report?GRI produces a comprehensive sustainability reporting framework, that is widely used around the world.
  • Within the GRI Framework, a report is considered a GRI report if it reports on at least 10 performance indicators under all categories
  • The Sustainability Reporting Framework is available, free of charge, on GRI’s website:http://www.globalreporting.org/Learning/ResearchPublications/The Framework features:The Guidelines (currently G301, G4 under development)The Technical Protocol: Applying the Report Content PrinciplesSector Supplements – tailored versions of the Guidelines for different sectorsBrazil National Annex (pilot version)
  • GRI’s Sector Supplements are versions of the GRI Guidelines tailored for different sectors. Sector Supplements help to make sustainability reports more relevant, and easier to produce.Some sectors face unique issues, such as noise for the airports sector, or resettlement of people in the mining and metals sector. Sector Supplements capture the relevant issues essential to sustainability reporting in a specific sector. These issues may not appear in the GRI Guidelines since they are relevant primarily for a specific range of reporting organizations or sectors.Mining and Metals Sector Supplement: examples of some issues: • Biodiversity management and ecosystem services• Community consultation• Indigenous People’s rights in exploration phase• Number and handling of disputes related to land• Resettlement of local communities• Closure plans of mines• Programs and progress relating to materials stewardshipThe Oil and Gas Sector Supplement covers key sector-specific issues, including:• Market presence, including local content• Volume and characteristics of estimated proved reserves and production• Research towards, and amount of renewable energy generated• Assessment and monitoring of risks for ecosystem services• Policies, programs and processes to involve indigenous communities • Existence of emergency preparedness programs• Decommissioning of sites due to company’s operations 
  • GRI develops guidance through a multi-stakeholder Due ProcessWorking Groups with experts representing different regions and constituencies develop proposalsPublic Comment Periods ensure the widest stakeholder inputGovernance bodies recommend and approve publications
  • A recent KPMG study showed that the world’s 250 companies report in some way.Key Findings- CR reporting = de facto law for business- CR reporting = financial value- Raises the bar for data integrity- Leading companies use assurance
  • -Majority of reports: Europe: In Europe, the top reporting countries in 2010 were Spain (22%), followed by Sweden (10%) and the Netherlands (8%) . -Highest nr of reports: USA-Strongest growth Brazil – China (emerging markets)
  • Growth in GRI reports can be seen on the S. Disclosure Database. IMPORTANT: The Database includes GRI reports that GRI is aware of through its Data Partners, Application Level Check service, registration forms, and internet research. GRI cannot guarantee that the Database is accurate or complete. All GRI reports are based on the G3 and G3.1 Guidelines, and include a GRI Content Index.
  • 28 energy companies in 2012 have produced an integrated report89 energy companies had their sustainability report checked by a third party in 2012
  • Note: Show relevant statistics for your audience47 mining companies produce an integrated report 129 mining companies have had their reports checked by a third party
  • The following Russian companies, from the energy and mining sector have published a sustainability report in 2012:All-Russian and Electric-power Industry Employers Association, ARMZ Uranium Holding Co. (Atomredmetzoloto)BashneftFGC UES (Federal Grid Company of United Energy System)GazpromGazprom NeftIDGC of North-West (Interregional Distributive Grid Company of the North-West)IDGC of Siberia (Interregional Distributive Grid Company of Siberia)LukoilMOESK (Moscow United Electric Grid Company)Norilsk NickelNOVATEKNOVATEKOGK-2PolymetalROSATOM - State Atomic Energy Corporation - Russian FederationRosenergoatomRosneftRUSHYDROSakhalin EnergySUEK (Siberian Coal Energy Company)TatneftTENEX (Techsnabexport)TNK-BPTVEL
  • As part of the reporting journey, many organizations experience these benefits. Sustainability reporting also demonstrates organizational commitment to sustainable development and compare organizational performance over time.Companies often start reporting due to internal risks assessments, then slowly move to the consideration of external opportunitiesWhat is your company’s contribution to the future?Do you know how to measure it? Are your managers ready to face what is coming?Who is asking: Carbon traders, financial risk managers, insurance companies, buyers, clients…your children
  • GRI’s training and workshops support big and small organizations everywhere, helping them to manage the reporting process and benefit from transparency. Introductory GRI workshops - provide an introduction to GRI and its products and services. Introductory GRI workshops aim to show how GRI’s Sustainability Reporting Framework helps organizations to measure and communicate their performance, and benefit from this transparency. Ideal for organizations with little or no sustainability reporting experience, introductory GRI workshops run from two to four hours, and are available worldwide. Participants learn why organizations of all types and sizes prepare sustainability reports. They also discover GRI, and how the Reporting Framework can help them to manage their economic, environmental and governance impacts responsibly.Certified Training is provided by GRI’s Certified Training Partners. If you want specific information about the GRI courses offered by the GRI Certified Training Partners in your country (when, where, fees, how to apply, etc.) you need to contact the Training Partner directly. You can do this by visiting the GRI website and clicking on the names of the Certified Training Partners in your relevant country.Business Transparency Program enables multinational companies, chambers of commerce and business associations to train their members or suppliers in sustainability reporting.
  • These publications are purchased through the GRI E-shop:http://www.globalreporting.org/Learning/E-shop/The core purpose of these publications is to help make sustainability practices part of the everyday operationsof all organizations.
  • These publications are available, free of charge, for downloading on the GRI website:http://www.globalreporting.org/Learning/ResearchPublications/The core purpose of these publications is to provide specialized resources, issue-specific research, or other forms of reporting advice. Note: please update according to the audience
  • Core purpose: to reduce the burden of multi-tier reporting and drive alignment & harmonization
  • After all these activities
  • Organizational Stakeholders (OS) are GRI’s core supporters. OS put their name to GRI’s mission and vision, contribute their expertise, promote GRI in their own network, have an important governance role, and invest in GRI through annual financial contributions.Approx 600 OS from more than 60 countries. Note: check these numbers with Christine, Elena or Letshani.Key benefits of becoming an OS:Exclusive country and online meetings (facilitate knowledge and experience sharing among OS)Free Application Level Check (normally €1,750 for non-OS)Advanced monthly OS Newsletter and regular ad hoc OS Updates (on sustainability reporting topics, general GRI news and projects)Discounts on GRI publications and events (e.g. Conference)Exclusive OS logo to use on Comms material for promotional purposesOpportunity to promote events on GRI’s website (Events page)Any organization that is committed to advancing sustainability reporting is eligible to become a GRI OS.

GRI and the sustainability reporting journey GRI and the sustainability reporting journey Presentation Transcript

  • The Sustainability Reporting Journey Letshani Sithandiwe Ndlovu Network Relations Coordinator 16 April 2013, London, United Kingdom
  • Presentation outline • The sustainability context • The Global Reporting Initiative • GRI’s Sustainability Reporting Framework – Guidance & Capacity Building • Harmonization • Current Priorities • Get Involved
  • The sustainability context
  • Sustainability context Sustainability • ChoicesChange • Stewardship Sustainable development • Meet present needs • Not compromise ability of future generations to meet own needs Brundtland Definition
  • YOUR power as businesses
  • The sustainability challenge How can YOU, as businesses, be profitable and contribute to solutions at the same time?
  • Strategic context ‘ What you can’t measure, you cannot manage. What you can’t manage, you cannot change. ’ Peter Drucker Writer, professor and management consultant GRI provides metrics!
  • Global Reporting Initiative
  • Vision: A sustainable global economy Mission: To make sustainability reporting standard practice GRI’s vision and mission
  • GRI: A network organization
  • • Secretariat • Focal Points & Ambassadors • Governance bodies • Organizational Stakeholders • Governmental Advisory Group • Training Partners & software providers • Strategic Alliances GRI: A network organization
  • Sustainability reporting
  • • Disclosure on economic, environmental, social, and governance performance • Stakeholder focused • Continuous improvement What is sustainability reporting?
  • • How do you measure sustainability impacts? • Who defines the metrics to measure them? Sustainability reporting
  • Content of a sustainability report – Statement from organization’s most senior decision-maker – Organizational profile and strategy – Performance Indicators – Management Approach
  • • Sustainability Reporting Guidelines • Indicator Protocols and Technical Protocols • Sector Guidance GRI’s Sustainability Reporting Framework
  • Electric Utilities Financial Services Food Processing Mining & Metals NGO Construction & Real Estate Airport Operators Event Organizers Oil & Gas Sector guidance Media
  • Due process for Guidelines development
  • Who is reporting and why?
  • Sustainability reporting growth Source KPMG Survey 2011
  • Growth in (known) GRI-based reports Source GRI disclosure database (known reporters) 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Year Growth 2011 16% 2010 29% 2009 35% 2008 58% 2007 37% 2006 39% 2005 35% 2004 70% 2003 13% 2002 17% 2001 188% 2000 291% 1999 base year 1999-2011
  • Reporting in the Oil and Gas sector
  • Reporting in the mining sector
  • Reporters: Russia & Ukraine 2012 data:  0 known reporters from Kazakhstan  1 reporter from Ukraine: Ernst and Young Ukraine  57 Russian reporters o 25 (43.9%) from mining and the energy sectors
  • Why report? Attract and retain talent Reduce waste, water usage, CO2 Government & stock exchange requirements Improve management Process Attract Investors Competitive advantage Enhanced reputation & loyalty Stakeholder engagement
  • Support for reporters
  • GRI Certified Training Program • Available worldwide • Increases capacity for reporting • Provided by local GRI Certified Training Partners
  • Certified Training Partners in Russia Consortium 1: Pontis Foundation, Alternate Consulting and Schwery Consulting Consortium 2: NP Consult and Kreston BulMar​ Consortium 3: PwC Poland, PwC Czech Republic and PwC Russian Federation​
  • • Starting Points – available to download for free • Pathways – available through the E-shop • Explorations – available to download for free Publications: Learning Series
  • • Specialized resources • Specific research – Sectors – Issues Research publications
  • Harmonization
  • • Guidance for using GRI Sustainability Reporting Framework in combination with other frameworks Linkage documents UNGC ISO26000 CDP Earth Charter
  • • Oil and Gas (OG): IPIECA – Own voluntary sustainability reporting guidance – Common Working Group members » BP, Eni, Hess, Shell, Statoil, Petrobras – Alignment sought • Mining and Metals: ICMM – Co-convener MMSS development process Strategic alliances: sectors
  • Current priorities
  • Process to date •2 years of activity •120 Working Group members, hundreds of candidates from all constituencies; 11 in-person meetings and over 60 webinars •2 Public Comment Periods with over 1000 participants •Over 70 Workshops and events- more than 2000 participants •Analyzed (and published) all feedback received •All due Process steps implemented (so far) •Governance bodies final feedback in January and February 2013 •April: SC and TAC Concur/non-concur; BoD approval decision •May: Launch at GRI Global Conference
  • In the pipeline for the G4 • New “in accordance” system - A “two tiers” system was designed • Material focus - DMA and Indicators only for material Aspects are requested, and only where the Aspects are material . No disclosure or explanations required on ‘non- material’ Aspects. • Sector guidance is not a requirement to be ‘in accordance’. Current Sector Supplement content will be simplified and presented as input when defining material content • Remarkable reduction of “General and Specific Disclosure Items” and simplification or deletion of terms considered confusing (e.g. the “value chain” disclosure ) • There is only one simple format for the DMA After PCP analysis and last governance bodies discussions
  • • Separation between “What to report on” from “How to report” – greater clarity on what is requirement and what is explanation • Technical improvements- clearer definitions and consistent technical edition • Assurance – more guidance will be included on how to disclose the approach taken for assurance • Integrated Reporting – clearer references to integrated reporting will be included in G4 (and other GRI materials) • Reference to latest international development covering Supply Chain, Governance, Anti-corruption, GHG Emissions After PCP analysis and last governance bodies discussions In the pipeline for the G4
  • Get involved
  • • Consider reporting – Explore tools from GRI – Talk to GRI – Talk to your peers…. Join the global discussions
  • • Launch of the G4 Guidelines • Prominent, must-attend event to tackle key issues in reporting, business strategy and leadership • Platform for 1500 leaders to connect, learn and collaborate • Dynamic, inspiring meeting of minds
  • • Support continuous update of GRI Guidelines – GRI’s core supporters – Over 600 diverse organizations – From over 65 countries – Knowledge sharing Join GRI: Organizational Stakeholders
  • Thank you! Contact me Letshani S. Ndlovu Network Relations Coordinator ndlovu@globalreporting.org www.globalreporting.org