Corporate SustainabilityReporting PHILIPPINES :: MALAYSIA :: VIETNAM :: INDONESIA :: INDIA :: CHINA
Learning Bites • Recognize the importance of Corporate Sustainability Reporting for Business • Identify the Core Issues of Sustainability Reporting • Comprehend GRI G3.1 Guidelines • Understand on how to do a Sustainability Report • Classify Key Performance Indicators • Categorize the External Assurance levels
A Changing World for Senior Corporate Decision Makers Company Image Balance Sheet Public Trust & Stakeholder Management Corporate Brand Engagement Social and Legislation and Market Demands Shareholder Value Environmental Disclosures Regulation
The Core Issues Social Development Consumer Human Rights Issues Corporate Responsibility Labor Fair Operating practices Procedures Organizational Environment Governance
What is Sustainability Reporting? • The practice of measuring, disclosing and being accountable to internal and external stakeholders for organizational performance towards the goal of sustainable development. • Reports on Economics, Environmental and Social impacts. • Provide balanced and reasonable representation of sustainability performance for both positive and negative contribution. • Sustainability reports must report on a company’s sustainability performance, not just its sustainability targets or objectives
Benefits of Sustainability Reporting • Material Benefits • Transparency • Report- not PR exercise • Interaction with stakeholders • Assurance process with internal and external value • Consistent format that helps investors to integrate ESG issues into investment processes. • Compliance with laws and standards • Efficient governance and management • Minimize use of energy and resources and waste-creation in operations • Potential cost savings • Business strategy incorporating sustainability • Comprehensive risk management • Brand management
Global Reporting Initiative • The Global Reporting Initiative (GRI) is a non-profit organization that promotes economic sustainability. • Located in Netherlands. • GRI provides all companies and organizations with a comprehensive sustainability reporting framework that is widely used around the world. • Sustainability Reporting Guidelines for voluntary reporting on the Economic, Environmental, and Social dimensions of an organization. • 800+ companies reporting worldwide • Currently working on G4 Guidelines and planned to release in 2013.
GRI Reporting Framework? • Intended to serve as a generally accepted framework for reporting on an organization’s economic, environmental, and social performance. • Designed for use by organizations of any size, sector, or location • Contains general and sector-specific content that has been agreed by a wide range of stakeholders around the world. • Generally applicable for reporting an G3.1 Reporting Framework organization’s sustainability performance.
GRI G3.1 Guidelines Content Strategy and Analysis Principles Quality (Risk, Opportunity Focus re whole organisation) Boundary Organizational Profile Profile G 3.1 Strategy and Profile Disclosure Report parameters Governance, commitments, Standard and engagement Disclosures Economic Category Disclosure on Labor Management Approach Human Rights Environmental Category Society (DMA) and Performance Indicators Product Social Category Responsibility DMA Performance Indicators
Principles – Content of the Report Content Stakeholder Sustainability Materiality Completeness Inclusiveness Context • Cover topics and • The reporting • Coverage of the • The report should Indicators reflecting on organization should material topics, present the organization’s significant identify its Indicators and definition organization’s economic, stakeholders and of the report boundary. performance in a environmental, and explain in the report • Reflect significant wider context of social impacts, how it has responded economic, sustainability. • Topics which would to their reasonable environmental, and substantively influence expectations and social impacts. the assessments and interests. • Enable stakeholders to decisions of assess the reporting stakeholders. organization’s performance in the reporting period.
Principles – Quality of the Report Quality Balance Comparability Accuracy Reliability Timeliness Clarity • Reasoned • Enables • Sufficiently • Establishes • Information • Clear & assessment stakeholders to accurate and the quality should be accessible to of overall analyze detailed for and available in stakeholders performance. changes in the stakeholders to materiality time for using the organization’s assess. of the stakeholders report. performance information. to make over time informed decisions..
GRI G3.1 Guidelines – Standard Disclosures Strategy and Analysis (Risk, Opportunity Focus re whole organisation) Organizational Profile ProfileG 3.1 Strategy and Profile Disclosure Report parameters Governance, commitments, Standard and engagement Disclosures Economic Category Disclosure on Labor Management Approach Human Rights Environmental Category Society (DMA) and Performance Indicators Product Social Category Responsibility DMA Performance Indicators
Standard Disclosure Standard Disclosure Strategy and Management Performance Profile Approach Indicators • Disclosures that set the • Disclosures that cover • Indicators that elicit overall context for how an organization comparable information understanding addresses a given set of on the economic, organizational topics in order to provide environmental and performance such as its context for social performance of strategy, profile and understanding the organization governance performance in a specific area 17
Performance Indicators Performance Indicators Environmental Economic Social (30 Indicators) (9 Indicators) (45 Indicators) Product Human Rights Labor Practices Society Responsibility ( 11 Indicators) (15 Indicators) (10 Indicators) (9 Indicators)
Difference between Core and Additional Indicators • Core Indicators: Identified in GRI Guidelines to be of interest to most stakeholders and assumed to be material unless deemed otherwise on the basis of GRI Reporting Principles. • Additional Indicators: Identified in the GRI Guidelines that represent emerging practice or address topics that may be material to some organizations but not generally for the majority.
Summary • In order to achieve a sustainability report by an organization, it has to follow the G3.1 Guidelines Framework. • GRI G3.1 Guidelines consist of three Sections: – Profile Disclosure – Performance Indicators – Disclosure of Management approach (DMA) or commitments made by the management based on Performance Indicators stated in the report. • Indicators under Profile Disclosure section are all mandatory to be reported by any organization in their sustainability report. • In order to achieve a B+ Level Report, at least 20 indicators needs to be reported from Performance Indicators Section. • Disclosure of Management Approach for the reported Performance Indicators is also mandatory for a sustainability report.
Thank you very much! facebook.com/eccinternational linkedin.com/company/ecc-international eccinternational.wordpress.com