Transcript KEY CHALLENGES IN GLOBAL CORPORATE CITIZENSHIP
Global Reporting Initiative
Judy HENDERSON
Chair, Global Reporting Initiative Australia
www.globalreporting.org
AN INTRODUCTION TO THE GLOBAL REPORTING INITIATIVE
Dr Judy Henderson Chair Global Reporting Initiative
THE GLOBAL CONTEXT
Accounting failures have taken accountability from a business to a social issue: Enron, Xerox, WorldCom Loss of public confidence in corporate governance Global markets mean global accountability which needs global standards New corporate value drivers need new measurement tools and information
3 www.globalreporting.org
REPORTING ON THE RISE
0 1990
www.globalreporting.org
1995
Year 4
2000 Sustainability Environmental And EHS
BASIC PROBLEMS …AND OPPORTUNITY
Companies receive diverse information requests Stakeholders receive incomplete information
www.globalreporting.org
A globally-accepted reporting framework developed through a multi-stakeholder process
5
TRANSPARENCY: not OPTIONAL… ESSENTIAL
Pressure from...
Investors Governments Customers Companies Community Rating groups
6
GRI MISSION
Elevate corporate sustainability reporting to be as routine as financial reporting
Developing protocols and assurance guidance
www.globalreporting.org
Design and continually improve reporting guidelines reflecting the three dimensions of sustainability: economic, environmental, and social Build a global and independent institution to become steward of the Guidelines
Revised 2002 Guidelines issued
7
Incorporated as Foundation in Netherlands with new Board
GRI: A BRIEF HISTORY
Conceived in 1997 by CERES in partnership with UNEP Multi-stakeholder process rooted in principles of balance, transparency, independence Funded by foundations through 2002, now diversifying Moved from Boston to Amsterdam in Sept. 2002 Governed by multi-stakeholder Board, Stakeholder Council and Technical Advisory Council
8 www.globalreporting.org
GRI’S PORTFOLIO
The Guidelines
The Guidelines
foundation document upon which all other GRI documents are based Energy Water Child labour
Technical protocols
address a specific set of indicators, providing technical guidance on their measurement Automotive Financial Tourism Mining
www.globalreporting.org
Sector supplements
additional guidance for specific sectors, addressing issues pertinent to those industries Diversity Productivity HIV/AIDS
9 Issue supplements
issue-specific supplements to provide additional models for organising the information
REPORTING ELEMENTS
COMPANY SECTOR CORE www.globalreporting.org
environmental 27 May, 2002
WHAT IS A GRI REPORT?
Vision and Strategy
Description of the reporting organisation’s strategy with regard to sustainability, with text discussion and a statement from the CEO
Profile
Overview of the reporting organisation’s structure, policies and management systems, including stakeholder engagement efforts
Governance structure and management systems
Description of organisational structure, policies and management systems including stakeholder engagement efforts
GRI content index
A table supplied by the reporting organisation identifying where the information listed in the Guidelines is located within the report
Performance indicators
Measures of the impact or effect of the reporting organisation divided into economic, environmental and social
11 www.globalreporting.org
SUSTAINABILITY REPORTING PRINCIPLES
Transparency Inclusiveness Sustainability context Completeness Relevance
12
Neutrality Comparability Accuracy Clarity Timeliness Auditability
www.globalreporting.org
GRI & COMPLEMENTARY INITIATIVES
Management Systems Standards Codes of Conduct GRI seeks to harmonise and integrate Intangibles Accounting GRI Performance Standards Issue/ Sector/Nat’l Reporting Guidelines Assurance Standards International Conventions
www.globalreporting.org
13
GRI as a core platform for sustainability reporting
WHY COMPANIES USE THE GUIDELINES
Benchmark and enhance efficiency Internal management improvements Stakeholder consultation Attract employees and investors Manage risk and protect reputation
14 www.globalreporting.org
EXPOSURE AT WSSD IN JOHANNESBURG
Launch of 2002 Guidelines GRI reference in official documentation GRI reference by heads of government and UN Secretary-General GRI recognised mechanism for demonstrating adherence to Global Compact
15 www.globalreporting.org
2002 GUIDELINES—WHAT’S NEW?
Reformulated reporting principles Strengthened social and economic content “Core” versus “additional indicators” Clarity on flexibility Guidance on assurance
16 www.globalreporting.org
BALANCING FLEXIBILITY & COMPARABILITY
IN ACCORDANCE
www.globalreporting.org
INFORMAL Coverage
“IN ACCORDANCE” REQUIREMENTS
1. Report on vision, profile of organisation and governance and management systems 2. Include a GRI Content Index. 3. Report on the core performance indicators. Omission of each core indicator must be explained 4. Ensure that the report is consistent with the reporting principles 5. Include a statement by the Board or CEO as follows: “This report has been prepared in accordance with the 2002 GRI Guidelines. We believe that this report is a balanced and reasonable representation of our organisation’s sustainability performance .”
18 www.globalreporting.org
VERIFICATION & ASSURANCE
Key to strengthening credibility 2002 Guidelines encourage the independent assurance of reports and the development of standards and guidelines for the assurance process
19 www.globalreporting.org
CHALLENGES AHEAD
Strengthening/explaining linkages to financial reporting and financial industry Strengthening harmonisation with key complements, e.g., ISO, EC CSR, AA1000S Rolling out supplements and protocols Expanding engagement: SMEs, sectors, regions, Harmonisation with government initiatives
20
GLOBAL REPORTING INITIATIVE
"Another important development is the growing support for the Global Reporting Initiative, which offers a coherent framework for reporting on environmental and social issues. It is a crucial complement to the Global Compact, and I am very pleased that the United Nations Environment Programme is a driving force behind both of them." Kofi Annan UN Secretary General 1 September 2002
21