The document outlines the guiding principles of the Global Reporting Initiative (GRI) for sustainability reporting. It discusses why organizations develop sustainability reports, who is interested in them, and provides an overview of the GRI reporting framework. The GRI framework provides standardized disclosures and performance indicators for organizations to disclose their economic, environmental, and social impacts in a comparable manner. It helps information seekers evaluate organizations' sustainability practices.

1. Project For Innovation, Energy, and Sustainability Guiding Principles of the Global Reporting Initiative By Mike Korzelius Trans Sustainability Global

2. Why Develop a Sustainability Report? For the Following Reasons: Fundamental Shift in Economies -Changing from an Industrial to an Information Economy Pending Environmental Regulations -Clear Air Act, Clean Water Act, etc… Financial Solvency -Financial Institution requirements, supplier/distribute requirement, Expenditure/Progress Tracking Internal Communications/Marketing -Breaks down the barriers of successful implementation and increases market shares

3. Who Is Interested In Sustainability Reporting? A Sustainability Report will Reach all of these Parties Information Economy Due Diligence

4. Who uses G.R.I.? 84% of the Global Fortune 250 Companies produce sustainability reports 45% increase during global economic recession Driven by economic concerns 81% of Top U.S. companies release Sustainability Reports as part of Financial Reporting GRI Sustainability Reporting is the most commonly accepted reporting format

5. GRI Reporting? Global Reporting Initiative Provides a Reporting Framework on how organizations can disclose their sustainability practices Applicable to any organization (Public, Private, Commercial, Industrial, etc...) Gives an applicable framework to information seekers to compare organizations’ sustainability practices

6. G.R.I. History 1998-CERES Initiates a disclosure framework for sustainability information and receives foundation funding 1999-United Nations Environmental Programmejoins CERES in GRI Framework Development 2000-First GRI Sustainability Guidelines are released

7. 2002- CERES Funding Discontinued and GRI becomes a stand-alone entity 2004- GRI engages 450 Global Experts in sustainability, and develops first sector supplements 2006- Draft G3 Sustainability Reporting Guidelines are released for feedback- 270 Responses were received 2007- G3 Guidelines altered and adopted

8. GRI Framework All GRI G3 Sustainability Reports are generated under the same premise to ensure comparability to other organizations

9. Standard Disclosures Consists of THREE “Standard Disclosures”: Strategy and Profile- -Sets overall context for performance such as strategy, profile, & governance Management Approach- -Methods of addressing a given set of topics and drives performance Performance Indicators- -Indicators that elicit comparable information of the triple bottom line

10. Core Indicators There are SIX Core Indicator Groups which: Indicate strategic priorities Describe broader trends effecting sustainability priorities Indicate key accomplishments, and failures during the reporting period Report target standing Identifies medium term barriers (3-5 years) Describes organization’s strategic approach

11. The Six Core Indicators Economic Performance Indicators Environmental Performance Indicators Labor Practices Indicators Human Rights Performance Indicators Society Indicators Product Responsibility Indicators

12. Core Indicators All Core Indicators consist of reporting for: Goals & Performance Policies Organizational Responsibility Training and Awareness Monitoring & Follow Up Additional Contextual Information

13. Economic Performance Consists of NINE Indicator Conditions: Describes the flow of capital among different stakeholders, and Main Economic impacts of the organization throughout the society Demonstrated by: Economic Performance Market Presence Indirect Economic Impacts

14. Environmental Indicators The largest set of Indicator Conditions in the GRI Consists of 30 Indicator Conditions Measures impacts on living/non-living natural systems Performance related to inputs & outputs Measures the internal policies, organizational responsibility, training & awareness, and monitoring methods

16. Organization Risks & Opportunity

17. Major Changes

19. Human Rights Consists of NINE Indicator Conditions which; Consider human rights for investment and contractor/supplier selection Covers training on human rights regarding non-discrimination. Freedom of association, child labor, indigenous rights, & compulsory labor Drivers Consist of: UN Charters regarding Human Rights

20. Society Indicators Consist of Eight Indicator Conditions which: Monitoring and preventive actions regarding supply chain Drivers consist of: Performance and Certification Systems Auditing Methods

21. Product Responsibility Consists of NINE Indicator Conditions Reports on effects of products on customers health and safety Products information and labeling Marketing Methods & Customer Privacy Drivers consist of: Compliance and Consumer Rights

22. GRI Sector Supplements GRI has established Sector Supplements for: Each supplement sector has its own Indicator Conditions

23. Important Factors Boundary Setting -Boundaries have to be inclusive enough, but not too broad Quality Setting- -A, B, or C style report, and do you want a plus (+) after it Stakeholder Inclusiveness -How has the organization responded to their interests Sustainability Context -Does it relate to the indicators?

24. MOST IMPORTANTLY TRANSPARENCY!!! Transparency about the sustainability of organizational activities is of interest to a diverse range of stakeholders, including business, labor, NGO’s, investors, accountancy, and others…

25. Questions Thank you for the opportunity to speak with you today Mike Korzelius Trans Sustainability Global 704-996-5113 mkorzelius@transsustain.com Website: transsustain.com

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