steps forward: Bastian Buck 21 April 2011

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1 Sustainability reporting steps forward: G3.1 and Technical lprotocol Bastian Buck 21 April 2011

2 Outline GRI and the Guidelines Why update? The development process Technical Protocol outcome G3.1 outcome Local CommunityImpacts Gender Human Rights What happens now? Summary

3 GRI and the Guidelines GRI produces world s most widely used sustainability reporting framework GRI committed to continuously updating the Guidelines G3 released in 2006

4 Why update? GRI s Board of Directors approved G3 in 2006 Suggested improvements G3.1 completes G3, with updates on: Local Community Impacts Gender Human Rights Also new Technical Protocol

5 The development process Approval Board of Directors Vote TAC Concur/Non (Technical Advisory Concur Committee) SC (Stakeholder Council) Consensus Seeking Working Groups Secretariat

6 The development process Working Groups Multi stakeholder tkhld Consensus seeking Represent all stakeholders Global distribution Three Groups for G3.1, one for Technical Protocol

7 The development process Public comment G3.1 May 26 August 23 Online survey, workshops, webinars, written submissions 358 participants provided feedback Public comment Technical Protocol 90 days from June 24 September 22 Online survey, workshops, webinars, written submissions 40 participants provided feedback

8 Content revised by Working Groups + Technical Protocol

9 Technical Protocol Reporters found defining content difficult Technical Protocol Applying the Report Content Principles Process guidance Step by step To be used with G3 and G3.1

10

11 G3.1 outcome Update and completion of third generation Most complete sustainability reporting guidance available today Updates to Local lcommunity Impacts Gender Human Rights

12 Community Impacts Focus on Community Aspect Edits SO DMA Replace old G3 SO1 with three new performance indicators 1. Percentage of operations with implemented local community engagement, impact assessments, and development programs. 2. Operations with significant potential and actual negative impacts on local communities. 3. Prevention and mitigation measures implemented in operations with significant potential and actual negative impacts on local communities.

13 Working Group Discussions Key Developments in Human Rights UNSpecial Representative on Business and Human Rights John Ruggie Protect, Respect & Remedy Framework Not a passive responsibility, but requires taking positive steps to become aware of, prevent and address adverse human rights impacts. Due Diligence Grievance mechanisms

14 Working Group Discussions Due diligence process elements 1. Policies 2. Impact Assessment 3. Integration throughout the company 4. Tracking Performance Companies without a proper human rights due diligence cannot actually know whether they respect human rights.

15 Working Group Discussions Scope of Relevant Human Rights Can affect all human rights broad view Most relevant rights differ from company to company Rights are dynamic and evolve over time Not possible to create a subset of rights!

16 Working Group Discussions Good Human Rights Reporting Questions a Report tshould Answer Material issues Due diligence process Grievance mechanisms/remedies Performance Performance Indicators Three types: Indicators of the extent of implementation i of processes Indicators of incidents Indicators of results or other dimensions

17 Human Rights Focus on Human Rights Category Edits HR Introduction and DMA New elements: Organizational Risk Assessment & Impact Assessment Two new performance indicators 1. HR10 Percentage and total number of operations that have been subject to human rights reviews and/or impact assessments. 2. HR11 Number of grievances related to human rights filed, addressed, and resolved through formal grievance mechanisms.

18 Defining Gender Equality Focus on nondiscrimination against women and the advancement of women s rights Equality under the law Equality of opportunity Equality of voice

19 Gender Equality: An International Commitment Enshrined in a broad range of international legal and policy frameworks ratified by governments around the world. International ti Declaration on Human Rights Convention on the Elimination of All Forms Of Discrimination against Women (CEDAW) The Millennium i Declaration Internationally recognized as being fundamental to sustainable development.

20 Gender Revision Scope Full Guidelines Some DMA Edits Some Profile Disclosure Edits Example: 4.3 For organizations ations that have a unitary board structure, t re state the number and gender of members of the highest governance body that are independent and/ or non executive members. Revised Performance Indicator Example: LA14. Ratio of basic salary and remuneration of men to women by employee category, by significant locations of operation. New Performance Indicator LA15 Return to work and retention rates after parental leave, by gender.

21 What happens now? GRI s Board of Directors approved G3.1 in February 2011 Reporters can use G3 or G3.1 Both valid until G4 in place Can qualify for Application Levels with G3 or G3.1 GRI recommends use of G3.1

22 What happens now? G3.1 and G4 G3.1 completes G3, G4 is a new generation Updates in G3.1 will inform the next generation G4 Expected launch 2013 To fit with other frameworks

23 GRI and the Guidelines Summary Why update? The development process Technical Protocol outcome G3.1 outcome Local Community Impacts Gender Human Rights What happens now?

24 Application Level 2011 Summary NEW: GRI content index template Required for GRI application level check process 3 versions for each Application Level Recommended for publication NEW: G3 checklist Required for checking process FOR Application Level A (partial reporting on Performance Indicators) Recommended for reporting organizations to use as a tool to establish extent of reporting per G3/G3.1 disclosure item. NEW: GRI application level statement Required to be published after completion of GRI application level check in reporting

25 How to declare:

26 GRI Application Level Check Statement

27 Thank You! Bastian Buck Technical Development Manager g g

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