1. Social Return on Investment
ISO 26000 and CDP Reporting
BIS Standard on CSR
Certificate Course on Corporate Social Responsibility Reporting and Impact
Assessment
2. Agenda for this session ā 2 Hours
ā¢ Social Return on Investment
ā¢ Effectiveness of capital and other resources to create value for the
community
ā¢ ISO 26000 and CDP Reporting
ā¢ CDP new reporting framework
ā¢ Based on remuneration of Task Force on Climate Related Financial
Disclosure
ā¢ BIS Standard on CSR
4. Woods vs Trees ā The Big Picture
ā¢ Why are we interested in measuring social, economic and environmental
impact?
ā¢ Profitability evaluations as in the past may not be a sustainable solution
and actually has a bias towards unsustainable growth
ā¢ There is a need to measure and evaluate using
ā¢ Not just what is easily measurable
ā¢ But, things that matter to us most
ā¢ Economic, Social and Environmental well being
ā¢ Ex: when we compare the earnings of two jobs in different industries, we do not factor the
implication these may have on āhealthā
SROI
5. What is SROI
ā¢ SROI is a framework for measuring and accounting for broader concept of value. It measures
change in ways that are relevant to the people or organizations that experience or contribute to
it. It tells the story of how change is being created by measuring social, environmental and
economic outcomes and impacts.
ā¢ SROI uses monetary values. However, SROI is about value, rather than money. Money is
simply a common unit and as such is a useful and widely accepted way of conveying value.
ā¢ In contrast to the traditional cost-benefit analysis that is used primarily to compare different
investment projects, SROI is used more to evaluate general progress of the projects. In
additions, in contrast to the traditional CBA it incorporates financial, as well as social,
environmental, etc. benefits.
ā¢ There are two types of SROI:
ā¢ Evaluative ā done after the project based on actual outcomes
ā¢ Forecast ā estimates the social value created if the activities are conducted
SROI
6. The Principles of SROI and Six Stage Analysis
Seven principles that underpin how
SROI should be applied:
1. Involve stakeholders.
2. Understand what changes.
3. Value the things that matter.
4. Only include what is material.
5. Do not over-claim.
6. Be transparent.
7. Verify the result.
SROI
7. Stage 1:Establishing scope and identifying
stakeholders
ā¢ Before we start with SROI analysis, we need to answer these questions:
ā¢ What are we going to measure?
ā¢ How we will measure?
ā¢ Why do we want to measure?
ā¢ In addition to establishing scope of the analysis and identifying
stakeholders in the first stage, we need to think about how we will
involve stakeholders. Involving them help us to better understand the
strengths and weaknesses of the activities planned in the project.
SROI
8. Establishing Scope
In establishing scope we consider the following issues:
ā¢ Purpose; What is the purpose of the analysis? Are there specific motivations driving the work, such as
strategic planning or funding requirements?
ā¢ Audience; Who is this analysis for?
ā¢ Background; Consider the aims and objectives of the organization/project and how it is trying to make a
difference (or its theory of change).
ā¢ Resources; What resources are required? Are these available?
ā¢ Who will conduct the analysis; Can we do it internally, or will we need external help?
ā¢ The range of activities on which we will focus; Clearly describe what you intend to measure.
ā¢ The period of time of the intervention; SROI analysis is often annual, however this can vary.
ā¢ Whether the analysis is a forecast or an evaluation; A SROI forecast will help to put in place a
measurement so every analysis can start as a forecast.
SROI
9. Identifying Stakeholders
ā¢ Here we list all those (people or organizations) who might affect or be
affected by the activities of the project/intervention, whether the change is
positive or negative, intentional or unintentional.
ā¢ We should be careful that the stakeholders have been included are expected
to be affected by the planned activities of the project. A common mistake is
to include stakeholders that are relevant to the organization but not to the
activities set out in the scope of the project.
ā¢ When groups of stakeholders, groups should share enough common
characteristics. If members of these groups may experience and want
different outcomes and if the differences are significant, we split
stakeholders into subgroups.
SROI
10. Stage 2: Mapping outcomes
ā¢ Here we build an āImpact mapā in which we try to define how certain
resources (inputs) to deliver activities (measured as outputs) and the
activities will result in outcomes for stakeholders. Sometimes this
relationship between inputs, outputs and outcomes is called a ātheory of
changeā or a logic model ā or the story of how an intervention makes a
change in the world.
ā¢ We gain the information from the stakeholders in the previous stage. By
involving stakeholders in constructing the Impact map we ensure that the
outcomes that matter to those who are directly affected will get
measured and valued.
SROI
11. Identifying and Valuing inputs
ā¢ We need to identify what stakeholders are contributing in order to make the activity possible. Inputs
are used up in the course of the activity, for example money or time.
ā¢ The value of investment in SROI calculation, refers to the financial value of the inputs. Thus, we have to
assign the inputs values in monetary terms.
ā¢ Be careful not to double-count the inputs. For example, we can approximate the value of inputs with
funding we use for the project. But, we may not use all the funding for a project; this āsurplusā relates to
the amount of the finance that was not necessary for the activity to happen. If there is a surplus then either
we should include the additional social value that would be generated with the surplus, or we should
reduce the value of the input by the amount of the surplus.
ā¢ Maybe we plan to use non-monetized inputs. These are inputs that we do not have to pay for, like
volunteer time or contributions of goods and services in kind. If the activity would not go ahead to the
same extent without them, then we put a value on them and include them in the calculation of the
investment.
SROI
12. Clarifying Outputs and Describing Outcomes
ā¢ Outputs are a quantitative summary of an activity. It is proposed to work through the list of
stakeholders and to describe the outputs from the activity.
ā¢ SROI is an outcomes-based measurement tool, as outcomes show changes for stakeholders.
ā¢ We should be careful not to confuse outputs with outcomes. For example, if a training
programme aims to get people into jobs then the training is an output, getting the job is an
outcome.
ā¢ Identifying outcomes is not always immediately intuitive, so we should work with the
theory of change to ensure that we are measuring the right things.
ā¢ We should relate outcomes to the right stakeholder and be careful not to double-count.
ā¢ Make judgement on outcomes by considering factors, such as the organization's objectives,
as well as the views of your stakeholders, that can affect their preference for particular
outcomes.
SROI
13. Stage 3:Evidencing outcomes and giving them a
value
ā¢ Developing Outcome Indicators
ā¢ Indicators are measures of change that we want to achieve. We choose or define indicators for each of the outcomes on our Impact map.
ā¢ Stakeholders are the best source to help us identify indicators, so we ask them how they know that change has happened for them.
ā¢ Sometimes we need to more that 1 indicator and we should try to balancing subjective and objective indicators.
ā¢ At the end we should check the indicators if they are measurable and that we will be able to measure them within the scope and the
resources we have.
ā¢ Collecting Outcomes Data
ā¢ Then we have to collect data on the indicators. This may be available from existing sources (internal or external) or we may need to collect
new data.
ā¢ If we are doing a forecast SROI, we use existing data where available. We can base the estimation on our own previous experience. If this
is the first time we undertake the activity, then we estimate it using research or other peopleās experience.
ā¢ If we are doing an evaluation SROI analysis, we use and review the data the organization already collects and what is available from other
sources. It is more time-consuming and costly to gather data about impact after the event.
ā¢ New data usually come from people directly involved in intervention āproject participants. The most commonly used techniques for
primary data collection include Record keeping, Interviews and Focus groups
ā¢ Establishing how long the outcomes last
ā¢ Putting a value on the outcome
ā¢ The purpose of valuation is to reveal the value of outcomes and show how important they are relative to the value of other outcomes.
SROI
14. Stage 4: Establishing impact
ā¢ Here we assess whether the outcomes we have analyzed result from the activities of the project.
ā¢ We estimate how much of the outcome would have happened anyway and what proportion of the outcome can be
isolated as being added by the activities of the project.
ā¢ Deadweight is a measure of the amount of outcome that would have happened even if the activity had not taken place. It is
calculated as a percentage.
ā¢ Displacement is another component of impact and is an assessment of how much of the outcome displaced other
outcomes.
ā¢ If displacement is relevant and the activities are displacing outcomes, there may be another stakeholder affected by the displacement. We
could go back and introduce this new stakeholder into the impact map or we could estimate the percentage of the outcomes that are
double counted because there is some displacement, calculate its amount and deduct it from the total.
ā¢ Attribution is an assessment of how much of the outcome was caused by the contribution of other organizations or people.
ā¢ Drop Off - For longer projects (where outcomes last more than a year), the amount of outcome is likely to be reducing in time,
if the same, will be more likely to be influenced by other factors. We usually calculate drop-off by deducting a fixed
percentage from the remaining level of outcome at the end of each year.
ā¢ We calculate impacts following these steps:
ā¢ Financial proxy multiplied by the quantity of the outcome gives us a total value. From this total we deduct any percentages for deadweight
or attribution.
ā¢ Repeat this for each outcome (to arrive at the impact for each).
ā¢ Add up the total (to arrive at the overall impact of the outcomes you have included).
SROI
15. Stage 5: Calculating the SROI
ā¢ Then we need to summarize the financial information that we have collected and estimated in the
previous stages. The idea is to calculate the financial value of the investment and the financial value of
the social costs and benefits. This results in two numbers.
ā¢ There are several ways of reporting on the relationship between the investment value and the amount of
social costs and benefits. Social return on investment literary means the ratio between those two
numbers.
ā¢ We first project the value of all the outcomes achieved into the future. By estimating how long an
outcome would last, we follow these steps:
ā¢ We set out the value of the impact for each outcome for one time period (usually 1 year).
ā¢ We copy the value for each outcome across the number of time periods it will last.
ā¢ Then we subtract any drop-off we identified for each of the future time periods after the first year.
ā¢ In order that the costs and benefits that are paid/received in different time periods are comparable, we
need to calculate their present values, meaning we must discount them.
ā¢ SROI ratio = Present value of benefits / Value of investment
SROI
16. Stage 6: Reporting, using and embedding
ā¢ Even though we have calculate SROI, the process is not complete. There is a final, important
stage: reporting to your stakeholders, communicating and using the results, and embedding
the SROI process in the organization.
ā¢ You need to make sure that the way in which you communicate the results are relevant to the
audiences. Final report should comprise much more than the social returns calculated. The
report should include qualitative, quantitative and financial aspects to provide the user with the
important information on the social value being created in the course of an activity. It should
include enough information to allow another person to be assured that the calculations are
robust and accurate.
ā¢ Unless we do something as a result of carrying out SROI analysis, there was not much point in
undertaking it in the first place. SROI analysis should result in change. Change refer to how
investors understand and support the work, or how those that commission the services
describe, specify and manage the contract with the investee. There are also implications for the
organization.
SROI
20. About ISO 26000
ā¢ ISO 26000 is an International Standard giving guidance/recommendations
about how any organization can improve its Social Responsibility and thus
contribute to sustainable environmental, social and economic development.
ā¢ ISO 26000 is not certifiable, as it does not contain the necessary requirements
in that regard. Its appeal is to those who, for whatever reasons, seek to
improve their operating processes and impacts through socially responsible
behaviour.
ā¢ ISO is the worldās largest developer of voluntary International Standards,
used by businesses and other organizations; its members are national
standards bodies and its standards and name-recognition are global in reach.
ISO 26000
21. What makes ISO 26000 important and credible?
ā¢ It is designed to work in all organizational and cultural contexts ā in
any country or region
ā¢ It is flexible and the user decides how to use it
ā¢ It was internationally negotiated through ISOās consensus method, using
a multi-stakeholder approach, and balance to reflect global diversity.
ā¢ It incorporates the real-life experiences of its many contributors, and at
the same time builds on international norms and agreements related to
Social Responsibility
ISO 26000
22. Examples of linkages between International
norms and ISO 26000
ISO 26000
ISO
26000
UN Global
Compact;
UN
Declaration
of Human
Rights
ILO Intl
Labour Org.
UN
Sustainable
Development
Goals
OECD
Guidelines
UN
Working
Group on
Business
& Human
Rights
GRI
Global
Reporting
23. How does ISO 26000 define Social Responsibility?
ā¢ Social Responsibility (SR) is the responsibility of an organization for
the impacts of its decisions and activities on society and the
environment through transparent and ethical behaviour that:
ā¢ Contributes to sustainable development, including the health and welfare
of society
ā¢ Takes into account the expectations of stakeholders
ā¢ Is in compliance with applicable law and consistent with international
norms of behavior, and
ā¢ Is integrated throughout the organization and practised in its relationships.
ISO 26000
24. Social Responsibility ā Definition, Continued
ā¢ Note 1: Activities include products, services and processes.
ā¢ Note 2: Relationships refer to an organizationās activities within its sphere
of influence.
ā¢ (Sphere of Influence refers to the range of relationships through which the organization has
the ability to affect the decisions or activities of others ā that is, its owners, customers,
workers, suppliers, etcetera.)
ā¢ āSustainable development is about meeting the needs of society
while living within the planetās ecological limits and without
jeopardizing the ability of future generations to meet their needs.ā
ISO 26000
26. 7 Principles of Social Responsibility (1/2)
ā¢ Accountability is the: āstate of being answerable for decisions and activities to the
organizationās governing bodies, legal authorities and, more broadly, its stakeholdersā (those
who are affected by its actions)
ā¢ Transparency is āopenness about decisions and activities that affect society, the economy and
the environment, and willingness to communicate these in a clear, accurate, timely, honest and
complete mannerā
ā¢ Ethical behaviour involves deciding what is the right course of action, day to day. Ethical
behavior is defined as ābehaviour that is in accordance with accepted principles of right or
good conduct in the context of a particular situationā¦ā Ask yourself: would you be
comfortable if your actions were to become public knowledge?
ā¢ Respect for stakeholders interests - involves identifying those who are affected by your
decisions and actions - and responding to their concerns. It does not mean letting them make
your decisions.
ISO 26000
27. 7 Principles of Social Responsibility (2/2)
ā¢ Compliance with all applicable laws - āIn the context of social responsibility, respect
for the rule of law means that an organization complies with all applicable laws and
regulationsā¦.even if they are not adequately enforced.ā
ā¢ International Norms of Behaviour - āIn situations where the law or its
implementation does not provide for adequate environmental or social safeguards, an
organization should strive to respect, as a minimum, international norms of behaviour.ā
International norms of behavior are āā¦derived from customary international law,
generally accepted principles of international law, or intergovernmental agreements
that are universally or nearly universally recognized.ā
ā¢ Respect for Human Rights - ā..In situations where human rights are not protected,
take steps to respect human rights and avoid taking advantage of these situationsā¦ā
ISO 26000
28. 7 Core Subjects
ā¢ Review specific issues (37 in
all) listed under each core
subject to identify those issues
that are relevant and
significant.
ā¢ Not all of the 37 specific issues
will be relevant to each user.
ISO 26000
Community
Involvement
and
Development
Human
Rights
Labour
Practices
Fair Operating
Practices
Consumer
Issues
The
Environment
Organizational
Governance
Organization
30. Setting the direction for SR
Building SR into the governance, systems and procedure
Monitoring activities on SR
Reviewing the progress and performance on SR
Improving performance
(7.4.2)
(7.4.3)
(7.7.2)
(7.7.3)
(7.7.5)
Enhancing the reliability of information and management (7.7.4)
Reviewing and improving SR performance
Stakeholders can play an important role in reviewing an organizationās
performance on social responsibility. (ISO 26000: 2010 Clause 7.7.1)
ISO 26000
31. Introduction
ā¢ Established in 2000 as āCarbon Disclosure Projectā asking companies to disclose their climate impact.
ā¢ Broadened the scope of environmental disclosure, to incorporate deforestation and water security, while also building
our reach to support cities, states and regions
ā¢ CDP is a popular voluntary reporting framework that companies use to disclose environmental
information to their stakeholders (investors, employees and customers).
ā¢ Investors can use CDP to make informed decisions around sustainability performance, and companies can
drive action on climate change, water resources and other critical areas.
ā¢ CDP consists of a long list of questions for organizations to answer. In 2021 this took the form of an 88
page document with over 200 questions
CDP Reporting
32. CDP Reporting Framework (1/2)
ā¢ Companies can submit carbon emission reporting data through CDPās series of three
questionnaires on
ā¢ Climate change,
ā¢ Water security, and
ā¢ Forests.
ā¢ First, based on the industry in which the reporting entity operates, respondents are
asked to cover topics in the forests questionnaire such as their use of natural
commodities and the impacts of operations on woodlands and other environments
ā¢ Second, to address water risks and opportunities, the water questionnaire asks
companies about their water resources for cooling, cleaning, and processing, as well
as efforts to recycle and clean water.
CDP Reporting
33. CDP Reporting Framework (2/2)
ā¢ The climate change questionnaire, meanwhile, addresses topics such as
efforts to disclose carbon emissions and adopt lower-carbon technologies
and methods. This also covers future-proof operations against possible risks
that may directly impact the companyās reputation, assets, and operations.
ā¢ Answers must be provided for a range of questions relevant to each sub-topic,
with grades of A to D - assigned based on scoring criteria for performance in
each metric.
ā¢ Respondents may decide to answer only core questions or address
additional factors to generate a more complete disclosure report for
stakeholders.
CDP Reporting
34. Key findings of CDP India 2022 disclosure
ā¢ The supplier base of Indian corporate members was mostly comprised of SMEs.
ā¢ Share of suppliers allocating emissions to their customers was low (only around 23%).
ā¢ About 48% of value chain partners reported having emissions reduction initiatives in place.
ā¢ Two in five companies engage with their own supply chain on climate-related issues.
ā¢ Total of 72 companies (44%) reported using electricity from renewable sources.
ā¢ Total emissions reduced by all suppliers was 15.3 million tonnes CO2 eq which is almost
ā¢ five times the reported emissions of the three customers (3.3 million tonnes CO2 eq).
ā¢ More than two-thirds of responding supply chain companies have board-level oversight on
climate issues.
ā¢ Suppliers reported financial savings from emissions reduction initiatives worth INR 3126
crores
CDP Reporting
35. Task Force on Climate Related Financial
Disclosure
ā¢ The Task Force on Climate-Related Financial Disclosures (TCFD) is an
organization that was established in December 2015 with the goal of
developing a set of voluntary climate related financial risk disclosures
ā¢ These disclosures would ideally be adopted by companies which would
help inform investors and other members of the public about the risks
they face related to climate change.
ā¢ Where climate-related issues are material, organizations should
consider describing whether and how related performance metrics are
incorporated into remuneration policies.
TCFD
36. Disclosure Recommendations (1/2)
ā¢ The Task Force developed four widely-adoptable recommendations on climate-
related financial disclosures that are applicable to organizations across sectors and
jurisdictions.
ā¢ The recommendations are structured around four thematic areas that represent core
elements of how organizations operate:
ā¢ Governance - The organizationās governance around climate-related risks and opportunities
ā¢ Strategy - The actual and potential impacts of climate-related risks and opportunities on the
organizationās businesses, strategy, and financial planning
ā¢ Risk Management - The processes used by the organization to identify, assess, and manage
climate-related risks
ā¢ Metrics and Targets - The metrics and targets used to assess and manage relevant climate-
related risks and opportunities
TCFD
37. Disclosure Recommendations (2/2)
ā¢ The four
recommendations
are supported by
specific
disclosures
organizations
should include in
financial filings or
other reports to
provide decision-
useful information
to investors and
others.
TCFD
Metrics and Targets
Risk Management
Strategy
Governance
Disclose the metrics and targets
used to assess and manage relevant
climate-related risks and
opportunities where such
information is material.
Disclose how the organization
identifies, assesses, and manages
climate-related risks.
Disclose the actual and potential
impacts of climate-related risks and
opportunities on the organizationās
businesses, strategy, and financial
planning where such information
is material.
Disclose the organizationās
governance around climate-related
risks and opportunities.
Recommended Disclosures
Recommended Disclosures
Recommended Disclosures
Recommended Disclosures
Disclose the metrics used by the
organization to assess climate-
related risks and opportunities
in line with its strategy and risk
management process.
a)
Describe the organizationās
processes for identifying and
assessing climate-related risks.
a)
Describe the climate-related
risks and opportunities the
organization has identified over
the short, medium, and long
term.
a)
Describe the boardās oversight of
climate-related risks and
opportunities.
a)
Disclose Scope 1, Scope 2, and,
if appropriate, Scope 3
greenhouse gas (GHG)
emissions, and the related risks.
b)
Describe the organizationās
processes for managing climate-
related risks.
b)
Describe the impact of climate-
related risks and opportunities
on the organizationās businesses,
strategy, and financial planning.
b)
Describe managementās role in
assessing and managing climate-
related risks and opportunities.
b)
Describe the targets used by the
organization to manage climate-
related risks and opportunities
and performance against targets.
c)
Describe how processes for
identifying, assessing, and
managing climate-related risks
are integrated into the
organizationās overall risk
management.
c)
Describe the resilience of the
organizationās strategy, taking
into consideration different
climate-related scenarios,
including a 2Ā°C or lower
scenario.
c)
38. Elements of Disclosure Recommendations (1/2)
Location of Disclosure
ā¢ The Task Force recommends that organizations provide climate-related financial disclosures in
their mainstream (i.e., public) annual financial filings.
ā¢ The recommendations were developed to apply broadly across sectors and jurisdictions and
do not supersede national disclosure requirements for financial filings.
ā¢ If certain elements are incompatible with national disclosure requirements, the Task Force
encourages organizations to disclose those elements in other official company reports.
ā¢ Organizations in the four non-financial groups that have more than one billion U.S. dollar
equivalent (USDE) in annual revenue should consider disclosing strategy and metrics and
targets information in other reports when the information is not deemed material and not
included in financial filings.
TCFD
39. Elements of Disclosure Recommendations (2/2)
Principle of Materiality
ā¢ The disclosures related to the Strategy and Metrics and Targets recommendations are subject to an
assessment of materiality.
ā¢ The disclosures related to the Governance and Risk Management recommendations are not subject
to an assessment of materiality and should be provided because many investors want insight into the
governance and risk management context in which organizationsā financial and operating results are
achieved.
Scenario Analysis
ā¢ The Task Force encourages forward-looking information through scenario analysisāa useful tool for
considering and enhancing resiliency and flexibility of strategic plans.
ā¢ Many investors want to understand how resilient organizationsā strategies are to climate-related risks.
ā¢ Recommended disclosure (c) under Strategy and the related guidance asks organizations to describe
the resilience of their strategies, taking into consideration different climate-related scenarios, including a
2Ā°C or lower scenario.
TCFD
40. Benefits of Implementing the Recommendations
Some of the potential benefits associated with implementing the Task Forceās
recommendations include:
ā¢ easier or better access to capital by increasing investorsā and lendersā confidence
that the companyās climate-related risks are appropriately assessed and managed
ā¢ more effectively meeting existing disclosure requirements to report material
information in financial filings
ā¢ increased awareness and understanding of climate-related risks and opportunities
within the company resulting in better risk management and more informed
strategic planning
ā¢ proactively addressing investorsā demand for climate-related information in a
framework that investors are increasingly asking for, which could ultimately reduce
the number of climate-related information requests received
TCFD
41. An Illustrative Roadmap
TCFD
ā¢ Compare current disclosures to
the recommendations, especially
Governance and Risk
Management, and identify
alignment and gaps
ā¢ Determine information and data
needs and process changes
ā¢ Begin evaluating metrics for
assessing climate-related risks and
opportunities
ā¢ Incorporate climate-related risks
into risk identification and
assessment process as needed
ā¢ Assign oversight to board
committees and management as
needed
ā¢ Disclose information related to
Governance and Risk
Management recommendations or
disclose intention to implement
the TCFD recommendations
ā¢ Implement new processes for
information and data collection
and reporting
ā¢ Identify metrics useful for
assessing climate-related risks and
opportunities
ā¢ Adjust data collection to support
metrics
ā¢ Identify climate-related risks and
opportunities and assess whether
they are material
ā¢ Identify relevant climate-related
scenarios and consider how those
scenarios might affect the
organization
ā¢ Disclose information related to
Governance and Risk
Management recommendations
and item (a) of the Strategy
recommendation, where the
information is material
ā¢ Calculate and use metrics for
assessing climate-related risks and
opportunities
ā¢ Integrate scenario analysis into
strategic planning and/or risk
management frameworks
ā¢ Disclose information related to
Governance and Risk
Management recommendations
ā¢ Disclose information related to
Strategy and Metrics and Targets
recommendations, where the
information is material
Year 1
Year 1 Year 2
Year 2 Year 3
Year 3
43. BIS ā IS 26001:2020 ā Corporate Social
Responsibility - Requirements
ā¢ This standard was adopted by Bureau of Indian Standards (BIS) in the year
2020
ā¢ This standard is in line with the requirements of Companies Act, 2013
ā¢ It will measure the CSR performance of the Companies and provide
certification in terms of:
ā¢ Implementation
ā¢ Reporting
ā¢ Real Time Impact
ā¢ Motivate Companies to achieve āSTAR RATINGā by effectively implementing
CSR that will yield long term impact for both companies and community
BIS ā IS 26001
44. BIS ā IS 26001:2020 ā Corporate Social
Responsibility - Requirements
ā¢ This CSR standard provides opportunity for companies to get a star
rating for their CSR performance
ā¢ The certification, being an assurance engagement, other Indian
standards for conducting assurance engagements are to be also
adhered to:
ā¢ Requirement for assurance engagement all matters other than statutory
financial information;
ā¢ Guidelines for assurance engagement all matters other than statutory
financial information;
BIS ā IS 26001
45. BIS ā IS 26001:2020 ā Corporate Social
Responsibility - Requirements
ā¢ The CSR requirements standard consists of:
ā¢ The star rating process
ā¢ The criteria for basic level certification
ā¢ The criteria for advanced level certification (two, three, four and five star)
ā¢ The composition of the Social Responsibility Sectional Committee MSD 10
BIS ā IS 26001
46. BIS ā IS 26001:2020 ā Certifications
BIS ā IS 26001
47. BIS ā IS 26001:2020 - Objectives
BIS ā IS 26001
Develop strong
Governance
Appropriate and
need based
projects
Plan, implement
and monitor
activities
Evaluate
outcomes
Report the
outcomes
48. BIS ā IS 26001:2020 ā Principles and Parameters
BIS ā IS 26001
Plan
Governance
Functions and
responsibilities
of the Board
Composition
and
constitution of
CSR committee
CSR policy,
functions and
responsibilities
Planning
CSR projects
Credible
implementing
agencies
Do
Resource
Provision of
funds and
resources
Check
Monitoring, Evaluation
and Impact
Monitoring
CSR projects
and activities
Evaluation and
Impact
assessment
Act
Reporting
CSR reporting
49. Assessment
ā¢ The assessment for star rating will be done by BIS
ā¢ BIS uses a mix of its own personnel and accredited and empaneled
auditors
ā¢ Empanelment of auditors is based on
ā¢ Should have lead auditor certification
ā¢ Should have relevant competence for conducting Assurance Engagements
BIS ā IS 26001
53. Whatās new and evolvingā¦
ā¢ BIS has released a āDraft for comments onlyā on IS 26001:2023
bringing changes to IS 26001, inviting comments until Aug 2023
ā¢ Key changes envisaged in the same:
ā¢ Concept of Basic and Advance Level of Certification is not there
ā¢ Eligibility criteria for various STARs is being compiled in one Annexure
ā¢ Criteria for various STARs are more advanced
ā¢ Maximum marks allotted to Social Returns on Investment (SRoI)
BIS ā IS 26001
54. Thank You
T V Balasubramanian
Email ā tvbalu@pkfindia.in
55. FAQ / Clarifications
ā¢ General Circular 15/2020 dated 10th April 2020 ā What is covered
ā¢ Contribution to State Disaster Management Authority to combat COVID-19
ā¢ Any ex-gratia payment is made to temporary / casual workers/ daily wage workers over and above the
disbursement of wages, specifically for the purpose of fighting COVID 19, the same shall be admissible
towards CSR expenditure as a one time exception
ā¢ General Circular 05/2021 dated 22nd April 2021
ā¢ Spends towards makeshift hospitals and temporary COVID care facilities are covered
ā¢ General Circular 09/2021 dated 5th May 2021 and 14/2021
ā¢ Creating health infrastructure for COVID care and Establishment of medical oxygen generation and storage
plants including R&D in this area (till FY 2022-23) are covered
ā¢ General Circular 15/2020 dated 10th April 2020ā What is NOT CSR
ā¢ Payment of salary / wages to employees and workers including contract labour / casual labour during
lockdown period
Development