corporate social responsibility, gri, sustainability reporting, 2014, g4

2.  Conserving an ecological balance by avoiding
depletion of natural resources
 Capability of being maintained at a steady level
without exhausting natural resources or causing
severe ecological damage

3.  An ever-greater number of companies and other
organizations are recognizing the need to make
their operations more sustainable.
 The governments, stock
exchanges, markets, investors, and society at
large are calling on companies to be transparent
about their sustainability goals, performance
and impacts.

4. SUSTAINABILITY REPORTING
 Sustainability reporting is the practice of measuring, disclosing, and
being accountable to internal and external stakeholders for
organizational performance towards the goal of sustainable
development.
 It is a broad term considered synonymous with others used to
describe reporting on economic, environmental, and social impacts
(e.g., triple bottom line, corporate responsibility reporting, etc.).
 A sustainability report should provide a balanced and reasonable
representation of the sustainability performance of a reporting
organization – including both positive and negative contributions.

5.  Sustainability reports based on the GRI Reporting Framework
disclose outcomes and results that occurred within the reporting
period in the context of the organization’s commitments, strategy, and
management approach.
 Reports can be used for the following purposes, among others:
Benchmarking
Demonstrating
Comparing

6. IMPORTANCE
 Corporate companies that focus on SR outperform their peers over the
longer run, which in turn results into a stronger market position and
increased profitability.
 There is a reliable co-relation between business integrity and above
average financial performance.
 SR helps to acquire national and international listings and provide
access to otherwise restricted markets.
 SR will provide a sound understanding of the organization's
customer needs, especially foreign international customers.
 Other benefits include attracting finance through transparent
relationships with credit providers, improving management systems and
improving employee motivation and customer satisfaction.

7. SUSTAINABILITY REPORTING
FRAMEWORK
Principles for defining contents:
• Materiality
• Stakeholder inclusiveness
• Sustainability context
• Completeness
Principles for defining quality:
• Balance
• Clarity
• Accuracy
• Timeliness
• Comparability
• Reliability
Standard Disclosures:
1 - Strategy and profile
2 – Management approach
3 – Performance Indicators

8. SUSTAINABILITY REPORTING
FRAMEWORK
Economic
Environmental
Social
Human rights
Society
Product responsibility
Sector Supplements:
• Airports
• Apparel & Footwear
• Automotive
• Construction and Real State
• Electric Utilities
• Financial Services
• Food Processing
• Logistic & Transportation
• Mining & Metals
• NGOs
• Public Agencies
• Telecommunications
• Tour Operators

9. STANDARD DISCLOSURES
1. Profile Disclosures
 Strategy & Analysis of the organization
 Organizational Profile
 Report Parameters for the organization
 Governance, Commitments and Engagements of the organization
2. Disclosures on Management Approach
3. Disclosure on Performance Indicators
Economic
Environmental
Social
 Labour Practices and Decent Work
 Society
 Human Rights
 Product Responsibility

12. GLOBAL REPORTING INITIATIVE
 The Global Reporting Initiative (GRI) is a multi-
stakeholder process and independent institution whose
mission is to develop and disseminate globally
applicable Sustainability Reporting Guidelines.
 The Guidelines are for voluntary use by organisations
for reporting on the:
◦ Economic,
◦ Environmental, and
◦ Social dimensions of their activities, products, and services.

13. DIMENSIONS OF REPORTING

14.  GRI was founded in the US in 1997 by CERES (a United States non-profit
organisation) and the United Nations Environment Program (UNEP) and
was originally based in Boston, Massachusetts. In 2002, GRI moved its
central office to Amsterdam, where the Secretariat is currently located. GRI
also has regional 'Focal Points' in Australia, Brazil, China, India and the
USA.
 The Focal Point India was established in January 2010, and is hosted
by BSI Group India.
 Focal Point India operates at the heart of the CSR and sustainability
landscape in India. The Focal Point has an important strategic collaboration
with the Indian Institute of Corporate Affairs (IICA), an independent think
tank under the Ministry of Corporate Affairs, Government of India through
the IICA-GIZ CSR initiative.

15. GRI SUSTAINABILITY REPORTING
 The GRI Sustainability Reporting Guidelines – the
most widely used comprehensive sustainability
reporting standard in the world – provide
organizations with the tools to meet the
sustainability challenges.
 A sustainability report conveys disclosures on an
organization’s most critical impacts – be they
positive or negative – on the environment, society
and the economy.

16. GRI REPORTING OVER THE YEARS
(https://www.globalreporting.org/resourcelibrary/G
RI-Reports-List-1999-2012.zip)

17. IMPORTANCE
 By using the Guidelines, reporting organizations can generate
reliable, relevant and standardized information with which
to:
◦ assess opportunities and risks, and
◦ enable more informed decision-making – both within the business
and among its stakeholders.
 By developing and communicating their understanding about
the connections between sustainability and business,
companies can:
◦ enhance their value,
◦ measure and manage change, and
◦ drive improvement and innovation.

18. Continued strong growth in sustainability reporting
Increased interest in what organizational leadership identifies as
critical sustainability topics
Increased interest from report users for clearly presented and
accessible information
Harmonisation between reporting tools and systems
Increased integration of financial and sustainability reporting

19. GRI SUSTAINABILITY REPORTING
PROCESS

21. GRI GUIDELINES DEVELOPMENT

22. G4: NEXT GENERATION OF REPORTING
 G4, the fourth generation of the Guidelines, was
launched in May 2013. It marked the culmination of
two years of extensive stakeholder consultation and
dialogue with hundreds of experts from across the
world from a wide variety of sectors.
 Aim of G4: to help reporters prepare sustainability
reports that matter – and to make robust and
purposeful sustainability reporting standard practice.

23. G4 Objectives
 Be user friendly for beginners and experienced reporters
 Improve technical quality with clearer definitions
 Align with other international reporting references (frameworks)
 Lead to reports that cover material topics
 Offer guidance on how to link sustainability and integrated
reporting, aligned with the IIRC
 Improve data access.

24. STRUCTURE & FORMAT
The G4 is presented in two separate documents:
1. Reporting Principles and Standard Disclosures:
GRI’s Reporting Principles are the criteria that should be
used to guide your choices, in order to achieve effective
GRI reporting. Standard Disclosures are the GRI
‘questions’ you answer in your report. (Strategy &
Analysis, DMA, Indicators)
2. Implementation Manual: This is the ‘how to’
section, and provides detailed advice and
recommendations for reporting with G4.

25. Examples of Performance Indicators
 Economic
◦ Financial implications and other risks and opportunities due to climate
change (G4-EC2)
◦ Local hiring (G4-EC6)
 Environmental
◦ Materials used (G4-EN1)
◦ Materials used that are recycled input materials (G4-EN2) – Coca Cola
◦ Energy consumed (G4-EN3) – Hazira, RIL
◦ Impact on biodiversity in protected areas (G4-EN12)
◦ Amount of waste (G4-EN23) – P&G
◦ Environmental impact associated with transportation (G4-EN29) – Coca
Cola, Bata

26. Examples of Performance Indicators
 Labor
◦ Health and safety measures (G4-LA6) – P&G
◦ Hours of training (G4-LA9)
◦ Governance body/employee diversity (G4-LA12) - Dell
 Human Rights
◦ Human rights screening on suppliers and contractors (G4-H10) - Tata
◦ Violation of indigenous rights (G4-HR8)
 Society
◦ Impact on community (G4-SO1) - Vedanta
◦ Training against corruption (G4-SO5)
 Product Responsibility
◦ Life cycle assessment of products/services (G4-PR1)
◦ Customer satisfaction (G4-PR5) - Dell

29. List of India companies with GRI based sustainability reporting

31. Comparison of the standards
Features GRI AA 1000 SA 8000 ISO 26000
Scope
Triple bottom line
reporting
Social & ethical
accounting, reporting Social accontability Social responsibility
Corporate
activity
Reporting &
assessment Management system
Codes, issues &
assesments Guidance
Sustainability
pillar Triple bottom line
Primarily social,
secondarily
environmental
economical
Social - mainly
labour
Sustainable
development
Application
Normative aspects:
indicators Non normative Normative Normative
3rd party
audit Yes Yes Yes Yes
Indicators Set Up to company Set
Orientation Results Process Result Result

32. National Scenario
 The reporting in India is still at a nascent stage with nearly 80 companies
out of 7000 listed companies, disclosing their sustainability performance.
 Out of these 80, there are about 60 companies which have publicly declared
that they use GRI Guidelines.
 And out of these 60, only 51 sustainability reports are registered on the GRI
database.
 Reporting companies are mainly from Oil and Gas, Mining, Cement, Steel,
Minerals, Automotive, etc. Reliance, ITC, Dr. Reddy's, Jubiliant Organosys,
Tata Steel, Tata, Lafarge are some of the most active companies reporting
themselves. Reliance and ITC are the highest rating (3 A+) companies.

33. 2011 onwards

34. Global Scenario
 Of the 250 largest global companies, over 65% are already publishing a
sustainability report.
 More than 3,000 companies across the world report on how they minimise
their environmental footprint, engage with stakeholders, adopt fair social
practices or embed sustainability into their day - to - day business, R & D or
marketing practices.
 Companies across Europe, Canada, Australia, Japan and USA and across
sectors have been coming up with the sustainability reports for 6 to 10 years
now.
 Companies like BP, ABN, AMRO, BT, Novo NORDISK etc. have been rated
amongst the top reporters for years now.

35. 2013 Global CSR Reputation Winner
Companies
RANK POINTS OUT OF
100
MICROSOFT 1 72.97
WALT DISNEY 2 72.83
GOOGLE 3 72.71
BMW 4 72.14
DAIMLER 5 70.65
SONY 6 69.49
INTEL 7 69.29
VOLKSWAGEN 8 69.21
APPLE 9 69.12
NESTLE 10 69.00
Source: Reputation Institute

36. Comparing 4 Years Ranking By Reputation Institute

37. Companies lagging behind in reporting –
G3.1
 Most of the companies do not have regular checks and internal assurance protocol
in place.
 Most of the reports issued by companies fail to define clear focus areas and
identifying key stakeholders.
 Very few reporters have sustainability strategy with well - defined objectives and
SMART targets.
 The Sustainability Reports issued during the last few years are highly packaged
but lack emphasis on the main issue of sustainability.
 Climate change has emerged on the key sustainability risks across industries but
only small number of companies report on climate change risks.

38. What can be done? – G4
The expectations from Indian reporters going forward are to focus on presenting
information related to:
◦ Sustainability issues, challenges, dilemmas and opportunities.
◦ Regulatory environment and fact-based information.
◦ Information of interest to investors such as materiality of issues in financial
terms, vision and strategy, statements, goals and targets, etc.
◦ Explanation on identification and prioritization of material issues.
◦ Reader friendly report design.

39. CASE STUDY 1
MICROSOFT

42. EMPOWERING NON PROFITS
Bill gates has donated $ 36,854,000,000 in his
lifetime.

43. EMPLOYEES RESPONSE

44. CASE
STUDY
- RIL

47. CASE STUDY - TATA
 Approximately two third of the equity of the parent firm, Tata
Sons Ltd. is held by philanthropic trusts endowed by Sir
Dorabji Tata and Sir Ratan Tata, son of Jamshedji Tata, the
founder of today’s Tata empire in the 1860s.
 Through these trusts, Tata Sons Ltd. utilizes on average
between 8 to 14 percent of its net profit every year for
various social causes. Even when economic conditions were
adverse, as in the late 1990s, the financial commitment of
the group towards social activities kept on increasing, from
Rs 670 million in 1997-98 to Rs 1.36 billion in 1999-2000. In
the fiscal year 2004 Tata Steel alone spent Rs 45 crores on
social services.

48. In July 2004, B. Muthuraman, Managing Director, Tata Steel Limited (TISCO)
announced that in future TISCO would not deal with companies, which do not
conform to the company's Corporate Social Responsibility (CSR) standards.
Speaking at the annual general meeting of the Madras Chamber of Commerce and
Industry, He stated, "We will not either buy from or sell to companies that do not
measure up to Tata Steel's social responsibility standards."

49. •Over 500 self-help groups are currently operating under various poverty alleviation
programs; out of which over 200 are engaged in activities of income generation
thorough micro enterprises.
•Women empowerment programs through Self-Help Groups have been extended to
700 villages. From the year 2003 to 2006, the maternal and infant survival project had
a coverage area of 42 villages in Gamharia block in Seraikela Kharsawa and a
replication project was taken up in Rajnagar block.

50. Tata Steel supports various social welfare organizations. They include;
Tata Steel Rural Development Society
Tribal Cultural Society
Tata Steel Foundation for Family Initiatives
National Association for the Blind Shishu Niketan School of Hope
Centre for Hearing Impaired Children
Indian Red Cross Society, East Singhbhum
•In 2010-11, TCS supported its local communities in the United States: supported the
victims of the 2010 Chilean earthquake.
As far as the Tata group is concerned , it has gone a long way in fulfilling its duty and
responsibility towards the society and the nation.

51. Comparing with international firm
As both a supplier and a customer in the technology industry, Dell has a robust process to
understand how the chemicals and materials used inside our products and during their
manufacturing processes affect humans, plants and animals. Materials usage laws and
regulations differ around the world, and suppliers’ levels of transparency and accountability
can also vary.
DELL FOCUSES ON :
ENVIRONMENT COMMUNITIES PEOPLE

52. In 2013 dell achieved their long term recycling goal to collect 1 billion pounds
of e-waste, a full year ahead of schedule. They recycled more than 170 million
pound of electronic globally.
Dell continued to close the recycling loop by
using 7.8 million pounds (3,542,556 kg) of recycled-content plastics in flat-panel
monitors and
Optic Plex desktops an increase of
6 percent over FY12.