The Global Reporting Initiative's G3 Sustainability Reporting

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					    The Global Reporting Initiative’s
 G3 Sustainability Reporting Guidelines
 and ISO 26000 for Social Responsibility

                                  By
                             Dante Pesce
                    GRI Stakeholder Council Member
                        ISO 26000 CAG Member

                            May 15th, 2009
International Workshop: “The Role of Government in Social Responsibility”
                          Q         y
                          Quebec City, Canada
             Why GRI Matters

Growth of company sustainability reporting
       Expansion of expectations on transparency and
       accountability
       79% of Global Fortune 250, up 52% from 2002
       Investor, UK, France, S. Africa, Sweden initiatives
                    becoming standard for large companies
       Reporting is b              d df l
       Increasing reporting down the supply chain and subsidiaries




                 Survey—
    Source: KPMG Survey—October 2008
                           Uptake Over Time
                recent research shows figures 20 time
                               larger!

                1000
                 900
GRI Reporters




                 800
                 700
                 600
                                                                                 Reporters
                 500
    R




                 400
                 300
                 200
                 100
                  0
                  1999   2000   2001   2002   2003   2004   2005   2006   2007


                                          Year
Uptake by Country
                  Uptake Over Time
      KPMG Survey (October 2008) G250 + 100 larger in 22 economies

100
            Compañías con informes de RC autónoma e integrada, por
90
                                    p
                                    país.
80

70
                                                             Informe RC autónomo
60                                                           2005.

50

40                                                           Informe RC autónomo
                                                             2008.
30

20
                                                             Informe RC integrado
10                                                           a Memoria Anual
                                                             2008.
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R
GRI: Network Organization
            ,
GRI: Trusted, Credible
     Framework
 GRI is the best global
consensus on reporting!
Continuous Improvement
         Evolving Guidelines: the G3
                  Process
Structured   Collaborative     International   G3 Guidelines          Future
 feedback         working      sneak peeks         released     development
   process         groups
   on 2002
guidelines




  2003         2004          2005                              2006
   La nch Octobe
G3 Launch October 2006
         Reporting Framework
     The Repo ting F ame o k

         Principles
G3
        Standard
        Disclosures   +   Sector Supplements

                           National Annexes
Introduction to the Guidelines
                 Options for Reporting




                                                          nd
                                              Principles an
                                                 Guidance
 INPUT =

 PRINCIPLES




                                              P
                                                       res
                                                      rd
                                              Disclosur
                                               Standar
                      A    B    C




                                   y   p
              Focused Sustainability Report
 P inciples     G idance
 Principles and Guidance

Helping to
steer the
course to
          y,
materiality,
focus, and
balance.
        Reporting Principles
                ( h        )
                (with Tests)
Principles that help define report content
  Materiality (significant impacts, substantially influence
  stakeholder decisions)
  Stakeholder inclusiveness
  Sustainability context
  Completeness
  Boundary setting
Principles that help determine report
quality
  Balance
  Comparability
  Accuracy
  Timeliness
  Reliability
  Clarity
   Standard Disclosures



OUTPUT=




                                                   osures
                                                   dard
                                               Stand
                                              Disclo
STANDARD              A    B   C


DISCLOSURES


              Focused Sustainability Report
      G3 Report Content
Strategy and analysis

Organizational profile

Governance, commitments & engagement

Discussion of management approach (DMA)

P f         indicators
Performance i di t
  Core and additional indicators
           pp
  Sector supplements
  National annexes
   Disclosure on
Management Approach
M         tA      h
       Disclosure on
    Management A
    M                  h
                Approach
Report on each of the 6 indicator categories
covering those 35 aspects that are material:
  Economic (3)
  Environmental (9)
  Social: labor and decent work (5), human rights (8),
  society (5), product responsibility (5)

DMA content:
  Goals and performance
  Policy
  Organizational responsibility
  Training and awareness
                  follow-
  Monitoring and follow-up
  Additional contextual info
Pe fo mance Indicators
Performance Indicato s
          Examples of the 3
        Classification Levels of
               Indicators
Category (6)                     Social: Labor
-Economic
                 Environment     Practices and
-Environment
                                 Decent Work
-Social (4)


                                 Occupational
Aspect (35)      Water
                                 Health and Safety

                                 Injury, illness and
Indicator (79)   Total water
                                 lost-
                                 lost-day rates,
-49 core         withdrawal by
                                 absenteeism,
-30 additional   source
                                 fatalities, by region
Indicator Protocols
Indicato P otocols
       Sector Supplements

Development completed:
   automotive, telecom, metals & mining, tour
        t     financial services, public
   operators, fi    i l     i       bli
   agencies, energy utilities

In development:
    logistics & transportation, food industry,
      g              p        ,             y,
    NGO´s, Oil & Gas, apparel & footwear
        Focus Groups
Special Foc s G o ps

             Public Agencies

                   NGOs

                      Small
 Corporate
                      Enterprises
 Other
      Reporting Application Levels
Rpt
Content
                                     Application Level

                   C          C+                      B             B+                      A           A+

Profile,     Rpt all but 12
                                                 Rpt all items                          Same as B
Governance       items
                              Ext. As
                              Ext. As




                                                                    Ext. As
                                                                    Ext. As




                                                                                                        Ext. As
                                                                                                        Ext. As
                                               Rpt for each of
DMA            Not req’d                                                                Same as B
                                                6 categories
                                    ssuranc
                                    ssuranc




                                                                          ssuranc
                                                                          ssuranc




                                                                                                              ssuranc
                                                                                                              ssuranc
                    (
             Min 10 (1 each                     Min 20 (1 each                       Rpt on each core
                                                for
                                                f econ, env,                            d    t      l
                                                                                     and sect. suppl.
                                          ce
                                          ce




                                                                                ce
                                                                                ce




                                                                                                                    ce
                                                                                                                    ce
Indicators   for econ, env,                    HR, labor, soc’ty,                      indicator or
                 social)                          prod resp)                              explain
GRI and ISO 26000
Active participant since June 2004

Invited to be part of CAG

Submitted comments in during all the
process

Always looking after convergence with
ISO 26000 to create synergy on
sustainability movement
  ‘ A organization should … report
    An     i ti     h ld         t
   about its performance on social
   responsibility    to     affected
   stakeholders.
   stakeholders. A growing number
   of organizations report to their
   stakeholders on a periodic basis
   about their performance on social
      p         y
   responsibility’

        ISO 26000 Committee Draft (CD),
C     i ti          i l        ibilit B
Communication on social responsibility, Box
                                         14
         Comparison of GRI G3 Reporting
            Guidelines with ISO 26000 CD

Social Responsibility Subject           ISO 26000   GRI G3 Guidelines
                                        Clause      Disclosure No.
                                                    (DMA=Disclosure on Mgmt
                                                    Approach)
Organizational governance               6.2                        4.1-
                                                    1.1, 1.2, 2.3, 4.1-4.14; All
                                                    DMAs
Human Rights                            6.3         HR1-
                                                    HR1-9; HR DMA
-Due diligence                          6.3.3       HR1,2,5,6,7
-Human rights risk situations           6.3.4       HR5-
                                                    HR5-7
-Avoidance of complicity                6.3.5       HR1- 5-
                                                    HR1-3, 5-8
         gg
-Resolving grievances                   6.3.6          ,
                                                    HR4,9*
-Discrimination and vulnerable groups 6.3.7                    LA13-
                                                    HR4,6,7,9; LA13-14
-Civil and political rights             6.3.8       HR5,9
-Economic, social and cultural rights   6.3.9       PR1,2; SO1; EC9
-Fundamental rights at work             6.3.10      HR4-
                                                    HR4-7
Social Responsibility Subject         ISO 26000   GRI G3
                                      Clause
Labour Practices                      6.4         LA1-
                                                  LA1-14; LA DMA
    p y           p y
-Employment and employment            6.4.3          , ; LA1- , ,
                                                  HR4,5; LA1-5,13,14
relationships
-Conditions of work and social        6.4.4       LA3-
                                                  LA3-5,14; EC5
protection
 Social di l
-S i l dialogue                       6.4.5
                                      645         HR4,5; LA4 5
                                                  HR4 5 LA4,5
-Health and safety at work            6.4.6       LA6-
                                                  LA6-9
-Human development & training in      6.4.7       LA10-
                                                  LA10-12
the workplace
The Environment                       6.5         EN1-
                                                  EN1-30; EN DMA
-Prevention of pollution              6.5.3       EN19-
                                                  EN19-24
-Sustainable resource use             654
                                      6.5.4       EN1-    EN16-8 26 27
                                                  EN1-10; EN16-8,26,27
-Climate change mitigation and action 6.5.5            EN16-
                                                  EC2; EN16-18
-Protection & restoration of the      6.5.6       EN11-
                                                  EN11-15,25
natural environment
Social Responsibility Subject                ISO 26000   GRI G3
                                             Clause
F i Operating Practices
Fair O   ti   P   ti                         66
                                             6.6         SO2-8;
                                                         SO2-8 SO DMA

 Anti-
-Anti-corruption                             6.6.3       SO2-
                                                         SO2-4
-Responsible political involvement           6.6.4       SO5-
                                                         SO5-6
-Fair competition                            6.6.5       SO7
-Promoting social responsibility in the      6.6.6       EC6,9; HR1,2,8 PR1,2; EN
sphere of influence                                      26,29; Guidance on Boundary
                                                         Setting
-Respect for property rights                 6.6.7       EC9; SO8*
Consumer Issues                              6.7         PR1-
                                                         PR1-8; PR DMA
              g,
-Fair marketing, factual and unbiased        6.7.3          ,
                                                         PR6,7
information and fair contractual practices
-Protecting consumers’ health & safety       6.7.4       PR1-
                                                         PR1-5

-Sustainable consumption                     6.7.5       PR1-
                                                         PR1-5; EN26,27
-Consumer service support and dispute        6.7.6       PR3-
                                                         PR3-7,9*
resolution
-Consumer data protection and privacy        6.7.7       PR8
 Access to essential services
-A               i l     i                   678
                                             6.7.8       PR1,5;
                                                         PR1 5 EC9*
-Education and awareness                     6.7.9       PR5-
                                                         PR5-7
Social Responsibility Subject        ISO 26000   GRI G3
                                     Clause
Community involvement and            6.8         SO1; SO DMA,
development                                      EC1,5-
                                                 EC1,5-9
 C     it i    l
-Community involvement
                     t               683
                                     6.8.3       EC1,8; SO2-6; LA8
                                                 EC1 8 SO2-6 LA8,
                                                 Stakeholder inclusiveness
                                                 principle
-Education and culture               6.8.4       EC8*h
-Employment creation and skills      6.8.5       SO1; EC1,6,8,9
development
-Technology development and access   6.8.6       EC7*
-Wealth and income creation          6.8.7       EC1,6-
                                                 EC1,6-8
-Health                              6.8.8       LA8
-Social investment                   6.8.9       EC1,8


* Indirectly relevant
             In Short

    GRI and ISO 26000 are fully
            compatible

   GRI secretariat has prepared a
paper to assist potential users of the
        ISO 26000 Standard
The            t i t has          d this
Th GRI secretariat h prepared thi paper to    t
assist potential users of the ISO 26000 Standard.
For reasons of length, it does not seek to cover
                   g ,
or represent all elements covered by either the
draft ISO Standard or the GRI Guidelines.
  eade s are encouraged
Readers a e e cou aged to e a        e those
                             examine t ose
documents for authoritative text. As the ISO
draft further evolves, GRI intends to further
refine its guidance on the complementary
features of the two instruments. Any comments
or suggestions for improvement on this paper
                         Gilbert,
should be sent to Sean Gilbert Technical
Director, GRI (gilbert@globalreporting.org).
Dante Pesce
Founder and Executive Director of VINCULAR Center for Social Responsibility
      d S t i bl D      l      t t C th li U i     it f V l     i    Chil
   and Sustainable Development at Catholic University of Valparaiso, Chile
D-Liaison expert on ISO 26000, representing Interamerican CSR Network
Representative of DEVCO SSRO on ISO 26000 CAG
GRI Stakeholder Council Member

Email: dante.pesce@vincular.org
www.vincular.org