2. Learning Bites
• Recognize the importance of Corporate Sustainability Reporting for Business
• Identify the Core Issues of Sustainability Reporting
• Comprehend GRI G3.1 Guidelines
• Understand on how to do a Sustainability Report
• Classify Key Performance Indicators
• Categorize the External Assurance levels
3. A Changing World for Senior Corporate Decision Makers
Company Image
Balance Sheet Public Trust & Stakeholder
Management Corporate Brand Engagement
Social and Legislation and
Market Demands Shareholder Value Environmental
Disclosures Regulation
4. The Core Issues
Social
Development
Consumer
Human Rights
Issues
Corporate
Responsibility
Labor Fair Operating
practices Procedures
Organizational
Environment
Governance
5. What is Sustainability Reporting?
• The practice of measuring, disclosing and being accountable to internal and external
stakeholders for organizational performance towards the goal of sustainable
development.
• Reports on Economics, Environmental and Social impacts.
• Provide balanced and reasonable representation of sustainability performance for both
positive and negative contribution.
• Sustainability reports must report on a company’s sustainability performance, not just
its sustainability targets or objectives
8. Benefits of Sustainability Reporting
• Material Benefits
• Transparency
• Report- not PR exercise
• Interaction with stakeholders
• Assurance process with internal and
external value
• Consistent format that helps investors to
integrate ESG issues into investment
processes.
• Compliance with laws and standards
• Efficient governance and management
• Minimize use of energy and resources and
waste-creation in operations
• Potential cost savings
• Business strategy incorporating sustainability
• Comprehensive risk management
• Brand management
9. Global Reporting Initiative
• The Global Reporting Initiative (GRI) is a non-profit organization that promotes economic
sustainability.
• Located in Netherlands.
• GRI provides all companies and organizations with a comprehensive sustainability
reporting framework that is widely used around the world.
• Sustainability Reporting Guidelines for voluntary reporting on the Economic,
Environmental, and Social dimensions of an organization.
• 800+ companies reporting worldwide
• Currently working on G4 Guidelines and planned to release in 2013.
10. GRI Reporting Framework?
• Intended to serve as a generally accepted
framework for reporting on an organization’s
economic, environmental, and social
performance.
• Designed for use by organizations of any
size, sector, or location
• Contains general and sector-specific content
that has been agreed by a wide range of
stakeholders around the world.
• Generally applicable for reporting an G3.1 Reporting Framework
organization’s sustainability performance.
11. GRI G3.1 Guidelines
Content
Strategy and Analysis
Principles Quality (Risk, Opportunity Focus re
whole organisation)
Boundary
Organizational Profile
Profile
G 3.1 Strategy and Profile Disclosure
Report parameters
Governance, commitments,
Standard and engagement
Disclosures
Economic Category
Disclosure on Labor
Management Approach Human Rights
Environmental Category Society
(DMA) and Performance
Indicators Product
Social Category Responsibility
DMA
Performance Indicators
13. Principles – Content of the Report
Content
Stakeholder Sustainability
Materiality Completeness
Inclusiveness Context
• Cover topics and • The reporting • Coverage of the • The report should
Indicators reflecting on organization should material topics, present the
organization’s significant identify its Indicators and definition organization’s
economic, stakeholders and of the report boundary. performance in a
environmental, and explain in the report • Reflect significant wider context of
social impacts, how it has responded economic, sustainability.
• Topics which would to their reasonable environmental, and
substantively influence expectations and social impacts.
the assessments and interests. • Enable stakeholders to
decisions of assess the reporting
stakeholders. organization’s
performance in the
reporting period.
14. Principles – Quality of the Report
Quality
Balance Comparability Accuracy Reliability Timeliness Clarity
• Reasoned • Enables • Sufficiently • Establishes • Information • Clear &
assessment stakeholders to accurate and the quality should be accessible to
of overall analyze detailed for and available in stakeholders
performance. changes in the stakeholders to materiality time for using the
organization’s assess. of the stakeholders report.
performance information. to make
over time informed
decisions..
16. GRI G3.1 Guidelines – Standard Disclosures
Strategy and Analysis
(Risk, Opportunity Focus re
whole organisation)
Organizational Profile
Profile
G 3.1 Strategy and Profile Disclosure
Report parameters
Governance, commitments,
Standard and engagement
Disclosures
Economic Category
Disclosure on Labor
Management Approach Human Rights
Environmental Category Society
(DMA) and Performance
Indicators Product
Social Category Responsibility
DMA
Performance Indicators
17. Standard Disclosure
Standard
Disclosure
Strategy and Management Performance
Profile Approach Indicators
• Disclosures that set the • Disclosures that cover • Indicators that elicit
overall context for how an organization comparable information
understanding addresses a given set of on the economic,
organizational topics in order to provide environmental and
performance such as its context for social performance of
strategy, profile and understanding the organization
governance performance in a
specific area
17
18. Performance Indicators
Performance
Indicators
Environmental Economic Social
(30 Indicators) (9 Indicators) (45 Indicators)
Product
Human Rights Labor Practices Society
Responsibility
( 11 Indicators) (15 Indicators) (10 Indicators)
(9 Indicators)
19. Difference between Core and Additional Indicators
• Core Indicators:
Identified in GRI Guidelines to be of
interest to most stakeholders and
assumed to be material unless
deemed otherwise on the basis of GRI
Reporting Principles.
• Additional Indicators:
Identified in the GRI Guidelines that
represent emerging practice or
address topics that may be material to
some organizations but not generally
for the majority.
22. Summary
• In order to achieve a sustainability report by an organization, it has to follow the
G3.1 Guidelines Framework.
• GRI G3.1 Guidelines consist of three Sections:
– Profile Disclosure
– Performance Indicators
– Disclosure of Management approach (DMA) or commitments made by the
management based on Performance Indicators stated in the report.
• Indicators under Profile Disclosure section are all mandatory to be reported by
any organization in their sustainability report.
• In order to achieve a B+ Level Report, at least 20 indicators needs to be reported
from Performance Indicators Section.
• Disclosure of Management Approach for the reported Performance Indicators is
also mandatory for a sustainability report.
23.
24. Thank you very much!
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