Global Reporting Initiative Sustainability Report

Transcription

1 Global Reporting Initiative Sustainability Report 2008/2009

2 What is the Global Reporting Initiative? The Global Reporting Initiative (GRI) plays a crucial role in sustainable development as provider of the world s most widely-used sustainability reporting framework. As a network organization, GRI provides a forum where those who take an interest in environmental, social and governance issues (ESG) and those organizations or individuals working in the sustainability reporting field can come together to advance the sustainability agenda. The foundations of the Reporting Framework the GRI Guidelines are continuously developed by the network through a multi-stakeholder consensus seeking process to which anyone can contribute. The tool Sustainability reporting enables organizations of all shapes and sizes, including companies and public agencies, to measure, manage and publicly disclose their economic, environmental and social performance. The Sustainability Reporting Framework can be compared to financial reporting frameworks. It is based upon a system of principles and indicators which guide reporters on what information should be disclosed and how it should be disclosed. Sustainability reporting is thus a process organizations need to collect data throughout the reporting period to present in their report which aids internal operating and management systems. History In 1997, the Coalition for Environmentally Responsible Economies (CERES) in Boston, United States, came up with the concept of a universal framework to measure and report on organizational economic, environmental and social performance. CERES partnered with the United Nations Environment Programme UNEP and began a series of stakeholder dialogues and working groups to initiate a process that would lead to the formation of the Global Reporting Initiative as an independent institution. The first version of the GRI Guidelines (G1) was published in 2000; two years later, at the World Summit on Sustainable Development (WSSD) in Johannesburg, the second version of the Guidelines (G2) was released. It was also in 2002 that GRI was formally inaugurated at the United Nations and named as a collaborating centre of UNEP. Later that year, GRI relocated to its new home Amsterdam, The Netherlands and was incorporated as an independent, non-profit organization. Since then the Secretariat has remained in Amsterdam from where it provides services to many organizations and engages with its very large stakeholder group of more than 30,000 around the globe. The information collected during the reporting period is disclosed to the public periodically, whether in the form of a sustainability report, an integrated annual report, or any relevant combination of communication methods. The network The idea for a universally applicable sustainability reporting framework was conceived by a relatively small group of people. From humble beginnings, the GRI network has grown to now consist of thousands of people from all over the world. Members of the network represent many diverse groups in society, including business, civil society, labor organizations, academics, finance professionals and others. The development and implementation of the Sustainability Reporting Framework acts as the glue that bonds the whole GRI network together. Sustainability Report Readers Sustainability Report Prepares Partner Organizations Developers of the Frameworks Sponsors GRI Focal Points GRI Governance Bodies 2

3 Introduction For this report GRI worked on the basis of the external stakeholder consultation process carried out for the GRI Sustainability Report 2004/2007. The results of that stakeholder consultation process, and the application of the materiality principle, were considered by GRI to remain relevant for this reporting period. GRI is in the process of preparing a new stakeholder consultation process for future reporting periods. The intended audiences for this report comprise both GRI s internal stakeholders, such as Secretariat staff and governance bodies, as well as GRI s external stakeholders, such as GRI Guidelines users, GRI report readers, and GRI s suppliers, partners and supporters. Others, who have been involved in a GRI reporting process in any capacity, be it as a coordinator or as an expert, are also likely to find this GRI Sustainability Report of interest. This report has been prepared according to the GRI G3 Guidelines, Application Level A. 1

4 Table of Contents 1. Strategy and Analysis 3 2. Organizational Profile 7 3. Report Parameters Governance, Commitments, and Engagement Management Approach and Performance Indicators 29 GRI Content Index 52 Application Level Grid 64 Annexes 65 2

5 1. Strategy and Analysis 3

6 1. Strategy and Analysis 1 Dear Stakeholder, The Global Reporting Initiative (GRI) is a global multi-stakeholder network, also referred to as a Global Action Network. GRI s network brings together people and organizations from different geographic, sectoral and cultural backgrounds to develop the GRI sustainability reporting framework. This framework, the most widely used such framework around the world, sets out the principles and indicators that organizations can use to measure and report their economic, environmental, and social performance. It is this complex challenge that requires such a comprehensive, broad based and networked approach. GRI s Amsterdam-based Secretariat coordinates the efforts of this network. During the reporting period GRI worked according to three strategic objectives, as determined in its Business development plan. These are: Maintain and improve GRI s position as the leading sustainability reporting standard setter globally. Increase the value of GRI-based sustainability reporting for businesses and other organizations Increase the value of reporting for stakeholders, readers, and users of information In relation to these long-term objectives GRI s specific priorities for the financial year were, first, to continue to develop the GRI Sustainability Reporting Framework through sector supplements, national annexes and documents harmonizing the Framework with the work of leading sustainable development initiatives and reporting standards setters. Key achievements in this respect were the successful conclusions of two multi-year working group processes during the reporting period. GRI launched the Financial Services Sector Supplement with UNEP on January at the Annual Meeting of the World Economic Forum in Davos, Switzerland, and Electric Utilities Sector Supplement on 29 April Financial Services and Electric Utilities represent the two single largest groups of corporate GRI reporters, with 166 and 79 reports entered into the 2008 GRI Reports List respectively. Several more supplements are slotted for release following a streamlining of the development process. 1 This text covers parts 1.1 Statement of the most senior decision-maker of the organization about the relevance of sustainability to the organization and its strategy and 1.2 Description of key impacts, risks, and opportunities of the GRI G3 Guidelines. Second, GRI sought to improve widespread access to sustainability reporting guidance and information contained in sustainability reports through translations, training activities and coordination with government and regulatory bodies. In this respect, the number of translations of the GRI G3 Guidelines rose to 23 by June Furthermore, the number of GRI certified training partners grew from the first Memorandums of Understanding being signed with two pioneers between July 2007 and June 2008 in Brazil, training 139 people, to 22 partners certified in eight countries or regions training over 750 people during the same period in Finally, GRI s informal Governmental Advisory Group held two successful meetings during this reporting period. Third, GRI sought to develop the business case for sustainability reporting through research, GRI network development and advocacy. Specifically, GRI s sustainability report committed it to better measure GRI s program effectiveness, including us eof the framework and the tangible and intangible sustainability impact of GRI-based reporting. Towards this goal, GRI issued the online GRI reports list as key step towards achieving the first part of this commitment. Unfortunately, GRI does not currently have the capacity to actively seek out reports, therefore the Reports List collects that portion of GRI-based reports that are sent to the Secretariat. The list shows a growing number of users that seek to share their reports with GRI, with 688 reports collected for 2007, the first year of the G3 Guidelines and 1073 collected for As this list grows, GRI will seek opportunities to create a complete database offering an increasingly accurate reflection of the extensive number of organizations that reference GRI for their reporting. In another step to better measure the impact of GRI s activities towards achieving its mission, GRI released its first activity report: The GRI year in review 2008/2009 report, offering further details on GRI s operational performance against its stated objectives. In support of improving the management of GRI s operational sustainability impact GRI formulated three goals in 2008: Improve GRI s management of its Greenhouse gas (GHG) emissions. Continue to enhance diversity among people in the GRI governance bodies, working groups, and the Secretariat. 4

7 Strengthen GRI s sustainability management systems with regards to resource use, communications and travel, procurement, and human resources. In absolute terms saw a more than doubling of GRI s GHG emissions compared to the previous reporting period. Consider though that during the same period Secretariat staff numbers increased 21%, that working group activity increased significantly, five new Sector Supplements groups having started, and finally, that GRI established the Governmental Advisory Group as informal platform, hosting two live meetings. There are only limited facets of GRI network activity that can be replaced by teleconferencing, although this remains an active consideration for GRI, not least given costs and time associated with air travel, by far the largest contributor to GRI s emissions. The Secretariat has developed a stricter GHG emissions tracking system for role out in that will allow better monitoring of emissions. GRI s is a global organization, which it seeks to reflect in the staff composition of the Secretariat and Governance bodies. GRI has wellestablished processes to ensure sectoral and geographic diversity in its governance bodies and working groups and the Secretariat has a diversity policy in place. With 17 nationalities represented in the Secretariat and a growing portion of staff hailing from outside of Europe, GRI is achieving a clear measure of success in reflecting its global nature. GRI s ongoing challenge is to pursue gender balance in staff, Board of Directors and Technical Advisory Committee. The Stakeholder Council reflects a good gender balance. Regarding GRI s management of carbon emissions, resource use, communications and travel, procurement, and human resources, GRI s primary achievement over 2008/2009 is the creation of the Secretariat-wide SMART sustainability management and reporting team, which started operations after the close of the reporting period. A review of GRI s long-term sustainability targets mentioned above, including diversity, emissions and sustainability management will be conducted over the coming reporting period. I would add that a significant step in the mitigation of the secretariat s environmental impact over the past year have been the relocation to new, larger, offices that facilitate more sustainable office management. The move away from the stately, but cramped, building on one of Amsterdam s Canals to a larger office space on a single floor has greatly increased intra office interaction and communication, as well as offering excellent facilities for hosting visiting members of the network. We welcome you to come and visit. The need for a larger office space and the ongoing efforts to establish better management systems for impact of GRI s operations are symptomatic of increased activity within the GRI network as GRI seeks to pursue it objectives. Proper social and environmental management systems will become more a more important as the organization continues to grow due to GRI Conference activity and the need to capitalize on emerging opportunities and mitigate risks. Significant in this respect are two distinct new stakeholder groups that are seen to be emerging and will be an important part of the widening discourse on Environmental, Social and Governance (ESG) reporting: governments and financial market actors. The collapse of trust in financial markets and business following the financial crisis saw governments jump in to prevent financial collapse first. Second, governments are now more actively exploring how a similar crisis can be prevented. In their search many are identifying environmental, social and governance disclosure as a key factor of promoting responsible business management and accountability. The GRI Governmental Advisory Group reflects this increased interest. On the other hand, GRI itself has taken a clear stand concerning the role of regulation, issuing the Amsterdam Declaration on Transparency and Sustainability on 31 March This document calls on governments to take a more active role in the ESG reporting field, primarily through promotion of ESG reporting and the adoption of report or explain regulation that asks companies to report on their ESG performance or explain why they will not. The growing practice of ESG reporting by organizations of various stripes, including publicly traded companies, and looming regulation are making that mainstream financial markets actors are increasingly taking note of ESG information. From GRI s side, next to the Financial Services Sector Supplement aimed at the service providers themselves, GRI also published its Reaching investors: Communicating value through ESG disclosure resource document 5

8 in March This document seeks to help reporting companies determine what information is important for investors and good ways to present that information. These two stakeholder groups are potentially enormous shapers in the ESG reporting sphere. This offers opportunities for the mainstreaming of ESG reporting and with it increased use of the GRI Framework for that type of reporting. GRI will need to invest limited resources to communicate its unique value proposition to these stakeholder groups. In this respect, the key priority for development the GRI Board identified for the upcoming years were: Increased capacity for advocacy The further expansion of the Focal Point program to come to include several more globally and generally significant economies, Increased capacity to deal with financial market actors as distinct stakeholder group The further development of the guidelines to capture new needs and emergent practices, This recommitment of resources will require GRI to evaluate and manage the economic, environmental and social impacts of these changes and potentially reformulate it long-term sustainability goals over the coming reporting period. This report will form the basis to do so. I hope you too find it useful. Best wishes, Ernst Ligteringen Chief Executive 6

9 2. Organizational Profile 7

10 2. Organizational Profile 2.1 Name of the organization Global Reporting Initiative (GRI); GRI s full legal name is Stichting Global Reporting Initiative. Stichting is the Dutch word for Foundation. 2.2 Primary brands, products and/or services GRI works towards its vision and mission by continually developing, improving, expanding, and building capacity for use of the Sustainability Reporting Framework as knowledge of sustainability issues evolves. GRI s main products and services are divided into two principal areas. I Public Good: As a non-profit, foundation organization, GRI is committed to achieving a positive outcome in the world through its work. GRI works towards fulfilling this commitment by offering sustainability reporting guidance as a free public good. The public good elements that GRI offers are: A. The GRI Sustainability Reporting Framework The Sustainability Reporting Framework is comprised of: the Guidelines Sector Supplements National Annexes The Sustainability Reporting Framework (the Framework) of which the G3 Sustainability Reporting Guidelines (the Guidelines) are the cornerstone provides guidance for organizations to disclose their sustainability performance. It is applicable to organizations of any size, type, sector or geographic region and enables the benchmarking of sustainability performance amongst organizations through the use of common indicators. The Framework is developed through a process of systematic, consensus-seeking dialogue with a large network of individuals from over 60 countries, representing stakeholder groups including business, civil society, academia, labor, and other professional institutions. This process is open, inclusive and takes a global perspective on the growing understanding of good reporting on key sustainability issues. Since the release of the GRI G3 Guidelines in October 2006, uptake of sustainability reporting according to the GRI Guidelines has grown rapidly around the world. In the private sector, this is evidenced by recent statistics showing that 77% of Global Fortune 250 companies (G250), 69% of the 100 largest companies by revenue (N100), and 32% of the 2000 largest private companies in the world (Forbes Global 2000) are currently using the universally applicable reporting guidance for their sustainability reporting 2. Engagement between GRI and public agencies and governments has also increased notably, resulting in GRI being referred to in several national policies and white papers on corporate social responsibility (CSR)/environmental, social, governance (ESG) and Sustainable Development. GRI is aware of over 1300 organizations globally that issued sustainability reports based on the G3 Guidelines in a. The G3 Sustainability Reporting Guidelines Like the Framework, the Guidelines also have three main parts: the Reporting Guidelines; the Indicator Protocols; and the Application Levels. The Guidelines are the foundation upon which all other GRI reporting guidance is based. Reporting Guidelines: The Reporting Guidelines contain principles as well as information on standard disclosures (including performance indicators) to outline a reporting framework that organizations can adopt voluntarily, flexibly, and incrementally. Application Levels: Application Levels refer to the extent to which the Guidelines have been utilized by an organization in their sustainability reporting. There are three main levels: A, B and C. In order to achieve a certain level, a set of disclosure items must be reported against, the number of which varies for each Application Level. All disclosures must be clearly listed in the GRI Content Index. To encourage continual improvement to the reporters level of transparency, the GRI Sustainability Reporting Framework requires all GRI reporters to declare an Application Level for each report. The flexibility of the G3 format allows organizations to plot a path for continual improvement of their sustainability reporting practices. Indicator Protocols: These are the recipes behind each indicator in the Guidelines and include definitions for key terms in the indicator, compilation methodologies, intended scope of the indicator, and other technical references. 2 See: KPMG International Survey of Corporate Responsibility Reporting 2008, pdf. 8

11 Indicator Protocol sets Economic (EC) Environment (EN) Product Responsibility (PR) Labor Practices & Decent Work (LA) Human Rights (HR) Society (SO) Additional protocols: GRI also develops technical protocols, such as the Boundary Protocol, which form part of the GRI Sustainability Reporting Framework and provide additional guidance for reporting organizations. No new protocols have been developed in the past financial year. b. Sector Supplements Sector Supplements respond to the unique needs of specific sectors and constitute a key part of the Sustainability Reporting Framework. A Sector Supplement is, in effect, a tailored version of the G3 Guidelines which contains integrated commentary and new disclosure items specific to a given sector. The development process for a Sector Supplement is initiated where there is a clear interest from several organizations in a sector from a diversity of regions. The selected sectors are usually large, with significant sustainability impacts and where there will be a clear added value in creating additional disclosure items and guidance to the existing G3 Guidelines. Sector Supplements are developed by a multi-stakeholder Working Group using GRI s characteristic consensus-seeking approach The list below highlights all the Sector Supplements that have been commenced up to June 2009, all of which are at varying stages of development. GRI Sector Supplements Year initiated Status at 30 June 2009 Electric Utilities 2006 Final Version posted (G3) Financial Services 2005 Final Version posted (G3) Food Processing 2007 Implementation Phase 2 (G3) Automotive 2005 Pilot version available (G2) Apparel and Footwear 2005 Pilot version available (G3) GRI Sector Supplements Logistics and Transportation Year initiated Status at 30 June Pilot version available (G2) Public Agencies 2003 Pilot version available (G2) Telecommunications 2002 Pilot version available (G2) Mining and Metals 2005 Pilot version available (G2) Implementation Phase 2 (G3) NGO 2007 Implementation Phase 2 (G3) Airports 2008 Project Initiation Phase (G3) Construction and Real Estate 2009 Project Initiation Phase (G3) Events 2009 Project Initiation Phase (G3) Media 2009 Project Initiation Phase (G3) Oil and Gas 2009 Project Initiation Phase (G3) Tour Operators 2002 Retired c. National Annexes It has been recognized during the ongoing development of the Framework that some countries and regions might require tailored sustainability reporting guidance due to unique local conditions that they face. Such unique conditions could include local rules, regulations, policies or cultural differences. GRI is also keen to ensure that issues of particular importance to a particular country are captured in sustainability reports. To answer this need, GRI has initiated the concept of developing National Annexes, which are likely to take shape as localized sustainability reporting guidance for particular countries or regions. GRI has prepared a pilot project in Brazil which will be launched in 2009/2010. B. Research and Development Publications GRI convenes research projects on emerging topics relating to sustainability reporting on an ad hoc basis, often culminating in a GRI Research and Development Publication. These publications provide additional support to reporters intending to use or already using the Framework. 9

12 GRI Research and Development Publications as at 30 June 2009 Past, present, future: All you need to know about the G3 Guidelines Year published 2006 Making the Switch 2006 Biodiversity Resource Document 2007 UNGC GRI Making The Connection 2007 Reporting the Business Implications of Climate 2007 Change in Sustainability Reports Reporting on Community Impacts 2008 Sustainability Reporting in the Food Processing 2008 Sector Reporting on Human Rights 2008 The Earth Charter, GRI, and the Global Compact: Guidance to Users on the Synergies in Application and Reporting Small, Smart and Sustainable Experiences of SME reporting in Global Supply Chains A Snapshot of Sustainability Reporting in the Construction and Real Estate Sector A Snapshot of Sustainability Reporting in the Airports Sector Reaching Investors: communicating value through ESG disclosure All materials described above in A. and B. above, are available for free download on the GRI website. II Other products and services 3 : While the Guidelines and all Framework components are offered as a free public good, from 2005 GRI commenced development of a series of revenue-generating products and services. These products and services are designed to provide support and build capacity for GRI sustainability reporting around the world, while also seeking to generate income to support GRI s overall activities and ensure its organizational independence. With respect to the degree of outsourcing to produce GRI products and services, GRI s Deed of Incorporation, Chapter VIII, Article 22.1b states: The staff is large enough to effectively implement the Board s work plan, but small enough to remain cost efficient. The Secretariat relies on external support to implement the technical agenda. 3 For more details on GRI income sources, see Performance Indicator EC1 and the section on Management Approach for Economic Performance Indicators, p. 30. The Secretariat contracts external parties to perform various tasks for which the staff needs support, such as: Consulting services to assist with projects; IT specialists to implement IT systems; experts and freelancers to assist with the research and preparation of some content for publications; designers for layout work; and printing companies for bulk print runs. More information on this topic can be found in the sections on Management Approach and Performance Indicators, starting on page 29. There are five main revenue-generating elements to GRI s operations: A. The GRI Biennial Amsterdam Global Conference on Sustainability and Transparency B. Application Level Checks (formerly In Accordance Checks) C. Learning Publications Series D. Certified Local Training Programs E. Organizational Stakeholder (OS) Program These revenue-generating activities provide essential funds that assist GRI in working towards its core mission the development and continuous improvement of the Framework. A. The Biennial Amsterdam Global Conference on Sustainability and Transparency Since 2006, GRI has held a regular biennial conference. The next conference is scheduled to take place in May GRI Conferences 2006 The Conference on Sustainability and Reporting Reporting A measure of sustainability (Amsterdam) 2008 Amsterdam Global Conference on Sustainability and Transparency Sustainability reporting today The Readers Verdict (Amsterdam) B. Application Level Checks With the release of the G3 Guidelines in October 2006, GRI introduced the GRI Application Levels 4 and the GRI Application Level Check. The check is a service offered to confirm to a reporting organization that the required set and number of disclosures for the Application Level they declare have been reported upon and that the GRI Content Index is the correct representation of that Application Level. If GRI agrees with the Application Level declared, the reporting organization can add a GRI checked Application Level Icon to their report. The GRI Application Level Check does not represent GRI s view on the value or quality of the report and its content. GRI does not certify Application Level claims nor professionally assure the quality and the contents of the report. The GRI Application Level 4 See section 2.2 I, A, a page 8 for details on Application Levels. 10

13 GRI Learning Series Check is offered for a nominal fee and is free of charge for GRI Organizational Stakeholders. C. Learning Publications Series The development of the Learning Publications Series was initiated in The aim is to support and build capacity among reporting organizations and others seeking information both on compiling and utilizing sustainability information. As at 30 June 2009, the Learning Services team had launched four Learning Publications. These publications have been translated from English into many other languages. The Learning Publications rely on sponsors to cover development, production and translation costs. Further publications are currently under preparation. The Learning Publications Series is divided into three categories: 1. Starting Points are publications for a general audience and organizations considering reporting for the first time. They provide education both about the concept of sustainability and also how an organization s commitment to sustainability can be expressed through the GRI reporting process. 2. Pathways are publications developed to offer support to report makers and users of all levels. They offer concrete and practical guidance for the reporting process and its implementation within organizations, and also discuss the management aspects of this implementation. 3. Explorations are publications developed to offer innovative discussion on emerging and future sustainability solutions and their potential relationship to changes in the reporting process. The Exploration series offers insight into the sustainability field from opinion makers and leaders. The following table gives an overview of the publications available or in progress, as at 30 June There were no publications in the Explorations category as at that date. Language Pathways Starting Points Pathways Let s report! Step-by-step guidance to prepare a basic GRI sustainability report The GRI sustainability reporting cycle: A handbook for small and not-so-small organizations (2007) Let s Report! Step-by-step guidance to prepare a basic GRI report (2008) GRI Sustainability Reporting: A common language for a common future (2008) GRI Sustainability Reporting: How valuable is the journey? (2008) English x x x x Spanish x x x x Portuguese (Brazil) x x x x Portuguese (Portugal) German x x French x Chinese x Korean x Japanese x Swedish x x = available GRI s Learning Publications are sold through GRI s E-shop: 11

14 D. Certified Local Training Programs The GRI Certified Training Program, which was established in 2006, aims to build capacity for sustainability reporting around the world, which is a key factor in helping GRI achieve its mission. The content of the program has been developed to help report preparers implement a GRI reporting process by following the G3 Guidelines. This training program is implemented through selected organizations around the world that have an interest in offering training within their local communities. It is expected that as more and more training organizations offer this training program, the number of sustainability reporters will increase and the quality of reports will be enhanced. Organizations interested in offering the Certified Training Program include universities, NGOs, private learning centers and accountancy bodies. The following table shows the status, as of 30 June 2009, of the number of training partners per country/ region plus how many courses had been given and how many participants attended the Certified Training Program. Certified Training Partners per country/ region Number of Certified Training Partners Courses Participants Brazil India Republic of Korea Canada Spain Hispanic Americas USA South Africa TOTAL E. Organizational Stakeholder Program The Organizational Stakeholder (OS) Program is located at the center of the global multi-stakeholder network that constitutes GRI. OS represent the committed core of what is GRI s nature and main strength: engaging thousands of people from all regions of the world and various stakeholder groups who see value in GRI s voluntary multi-stakeholder process. The OS Program has been established to be inclusive, for the dual reasons of securing funds as well as acting as an instrument through which to practice ongoing stakeholder engagement. By putting their name to the GRI mission, products and processes, and broadening participation around sustainability and transparency, OS provide a key basis for legitimacy to GRI and reinforce the common commitment as a global action network for change. As at 30 June 2009 there were over 507 OS from different constituencies and regions. OS contribute financially with annual contributions set on a sliding scale, ranging from 100 to 10,000, based on an organization s annual turnover. OS also play an important governance role by annually electing members to the GRI Stakeholder Council. OS benefit from access to a global network of like-minded organizations and individuals, as well as to a dedicated OS newsletter containing timely information on GRI projects and involvement opportunities. They receive profiling opportunities on the GRI website and are entitled to the use of a special OS logo to demonstrate their affiliation with GRI. OS also receive free Application Level Checks and discounts on Number of Certified Training Partners Organizational Stakeholders Number of Certified Training Partners Organizational Stakeholders / / / / /

15 publications, events, and fees for participating in GRI projects. GRI aims to organize exclusive OS meetings on a country-specific basis. These meetings are an opportunity for all OS from one country to meet and hear the latest news on the Framework and GRI projects. Additionally, they can share experiences of their own reporting process with the local OS network and discuss GE 12 the sustainability challenges and opportunities in their national context. During the reporting period formal OS meetings were held in several countries including Spain, Germany, Brazil and the US. 2.3 Operational structure of the organization including main divisions, operating companies, subsidiaries, and joint ventures Stakeholder Council BOARD Technical Advisory Committee Chief Executive SECRETARIAT Operations Team Sustainability Reporting Framework Development Team Communications and Network Relations Team Learning Services Team As at June Location of organization s headquarters For the entirety of the 2008/2009 financial year, the GRI Secretariat office was located in Amsterdam, The Netherlands. Until 31 December 2008 it was located at: Keizersgracht DT Amsterdam The Netherlands As of 1 January 2009 the GRI Secretariat office has been located at: Metropool Building, 5th floor Weesperstraat VN Amsterdam The Netherlands 2.5 Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report From the small team that established GRI in the US in 1997, the GRI network now consists of thousands of people from at least 60 different countries, including Guidelines-users, conference participants, e-newsletter subscribers, and Organizational Stakeholders, as well as participants at GRI s various meetings and workshops, or stakeholders that simply GRI with feedback. The coordination of this network lies with the GRI Secretariat, based in Amsterdam, The Netherlands. At 30 June 2009, GRI also had representatives (GRI Focal Points) based in Brazil and Australia to help coordinate and cultivate GRI s network and activities in these countries and their surrounding regions. GRI also engages 13

16 with stakeholders from all over the world through Secretariat staff traveling to many different countries to speak at conferences and to hold events such as Workshops and Working Group meetings. 2.6 Nature of ownership and legal form Under Dutch law GRI is classified as a foundation, or Stichting. A Stichting is a legal entity that is set up to realize a stipulated (usually philanthropic or social) purpose. The purpose may not be the distribution of grants to the founders or to any other parties directly related to the foundation. A Stichting is allowed to make grants where there is an idealistic or social element in them, with the exception of pension funds. GRI has been registered as a Stichting at the Chamber of Commerce in Amsterdam, The Netherlands, since The Board of Directors (the Board) represents GRI and the official location of GRI is in the municipality of Amsterdam. 2.7 Markets served (including geographic break-down, sectors served, and types of customers/beneficiaries) Types of customers and sectors: Reporting Organizations (Users of the GRI Framework) GRI Guidelines disseminators Experts Report Readers GRI is aware of over 1300 organizations globally that have issued sustainability reports based on the GRI G3 Guidelines in The largest number of reports were produced in Spain (131), with the USA in close second place with 126 registered reports. In terms of regional division, Europe is home to 46% of the reporters known to GRI, followed by Asia with 20%, and Latin and North America with 12% each. The largest percentage of registered GRI reports is produced by companies in the Financial Services sector (13.1%), followed by the Energy sector (7.5%), and the Energy Utilities sector (6.6%). Any individual or organization with a vision or path for incrementally expanding the application of the GRI Reporting Framework. This can be done by organizing events or working groups around the GRI Guidelines, offering workshops or certified training as well as disseminating GRI publications. Leaders in the field of sustainability, transparency and accountability. Any individual or organization that seeks information about another organization s economic, environmental or social performance. Geographic breakdown of the market served: The Framework is a free public good available to all interested parties. To increase its accessibility, GRI continues to promote the translation of the Reporting Framework from its original English version into other languages. At 30 June 2009 the G3 Guidelines were available in 25 languages: G3 Guidelines language versions (30 June 2009) Bulgarian Georgian Portuguese (Brazil) Chinese German Portuguese (Portugal) Croatian Greek Russian Czech Hebrew Slovakian Danish Hungarian Spanish Dutch Italian Swedish English (original) Japanese Turkish Finnish Korean French Polish The Certified Local Training Program is rolled out through geographically focused Calls for Partners 5. The first Learning Services Publication, The GRI sustainability reporting cycle: A handbook for small and not-so-small organizations, was translated into several languages between the time of its launch in February 2007 and June Scale of reporting organization Number of Employees The number of employees (full-time and part-time) in the Secretariat was 40 as at 30 June Income ,122, /2007 Income (Millions of Euro) 5,407, /2008 4,112, /2009 Income (Millions of Euro) 5 For a complete overview of countries in which calls have been issued and where there are organizations in the process of becoming Certified Training Partners, see item 2.2 II, D. page For an overview of all publications produced in the last reporting period and their translations see item 2.2. II, C. page

17 2.9 Significant changes during the reporting period regarding size, structure, or ownership including the location of, or changes in, operations including facility openings, closures, and expansions There have been no changes in the legal arrangement of GRI as a foundation ( Stichting ) during the reporting period. Other changes regarding size and structure of GRI during the reporting period include: 1. Main changes regarding size or structure of the GRI Board of Directors (the Board): By amending the Deed of Incorporation the term of the Chair of the Board was reduced from three years to two years. The Audit, Finance and Remuneration Committee of the Board and the Sub-Committee of the Board were established. 2. Main changes regarding size or structure of the GRI s Stakeholder Council (SC): By amending the Deed of Incorporation the term of the Chair of the Stakeholder Council was reduced from three years to two years. The Council consists of 60 members and 14 positions were vacant at 30 June Main changes regarding size or structure of the GRI s Technical Advisory Committee (TAC): There have been no significant changes to the size, structure or ownership of the TAC during the financial year 2008/2009. At 30 June 2009 one position was vacant. 4. Main changes regarding the size or structure of the GRI Secretariat: The number of employees in the Secretariat increased by seven people during the reporting period to a total of 40 staff at 30 June Awards received in the reporting period GRI received no awards during the reporting period. 15

18 3. Report Parameters 16

19 3. Report Parameters Report Profile 3.1 Reporting period for information provided This report refers to the performance for the financial year 2008/2009. A financial year runs from 1 July to 30 June each year. 3.2 Date of most recent previous report (if any) GRI s third Sustainability Report was issued in May 2009 and covered the financial years 2007/ Reporting cycle GRI aims to report in conjunction with its financial year. 3.4 Contact points for questions Should you wish to contact GRI to give your feedback about this report, please contact GRI on: info@globalreporting.org Report Scope and Boundary 3.5 Process for defining report content In September 2009, a permanent Sustainability and Management Reporting Team (SMART) was established. This team has been tasked with both overseeing the management of ongoing sustainability impacts of the GRI Secretariat as well as producing an annual GRI Sustainability Report. The SMART team consists of staff members from each of the different departments within the Secretariat. Following internal discussion, it was decided that the material issues that were identified for the previous reporting period through a consultation process carried out according to the Guidelines and the GRI Learning Publication, The GRI sustainability reporting cycle: A handbook for small and not-so-small organizations, remained material to GRI for this reporting period. Therefore, this GRI report will focus on the same disclosures and will remain within the same boundaries as for GRI s previous two Sustainability Reports. GRI aims to carry out a new stakeholder consultation process for future reports and subsequently review the choice of material indicators. The material issues identified in 2007 and discussed in this report are: Section Dimension Aspects Material Economic Economic Economic Performance * Market Presence * Indirect Economic Impacts Environmental Environment Materials * Energy * Water Biodiversity Emissions, Effluents, Waste * Products and Services * Compliance * Transport * Overall Social Labor Practices and Decent Work Employment * Labor/Management Relations * Occupational Health and Safety * Training and Education * Diversity and Equal Opportunity * 17

20 Section Dimension Aspects Material cont. Human Rights Investment and Procurement Practices * Non-Discrimination * Freedom of Association and Collective Bargaining Child Labor * Forced and Compulsory Labor Security Practices Indigenous Rights Social Society Community * Corruption * Public Policy * Anti-Competitive Behavior Compliance * Product Responsibility Customer Health and Safety * Product and Service Labeling Marketing and Communications * Customer Privacy * Compliance Results of consultation on material aspects for GRI Sustainability Report 2007 (eleven aspects were de-prioritized). 3.6 Boundary of the report As for the previous reports, it was decided that this report should include: Impacts of the Secretariat s operations; and Impacts of the travel activities of the Board Members, Technical Advisory Committee and Stakeholder Council members which are directly related to GRI, as well as those of the ad hoc working groups convened to develop the content of Framework components such as the GRI G3 Guidelines and Sector Supplements. 3.7 State any specific limitations on the scope or boundary of the report GRI is not able to track impacts of all activities relating to the GRI Framework that are carried out by its worldwide network. 3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsource operations, and other entities that can significantly affect comparability from period to period and/ or between organizations GRI has no subsidiaries. The operations of GRI s governance bodies (the SC, TAC and the Board) are included and declared on the same basis as those for the Secretariat. The impacts of other, non-gri activities carried out by individual members of the governance bodies are not considered in this report. 3.9 Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the indicators and other information in the report The basis of calculations and assumptions are stated under the respective indicators and follow the definition of GRI Indicator Protocols Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement No re-statements were made in respect of previous reports Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report On scope: No changes in scope from the previous reporting period. On boundary: There have been no changes made to the boundary of this report compared to the last report. 18

21 On measurement methods: There have been no changes made to the measurement methods that were used for the last GRI Sustainability Report. GRI Content Index 3.12 Table of identifying location of the standard disclosures in the report GRI Content Index is to be found on page 50. Omissions are explained in the Content Index. Assurance 3.13 Policy and current practice with regards to seeking external assurance for the report. If not included in the assurance report accompanying the sustainability report, explain the scope and basis of any external assurance provided. Also explain the relationship between the reporting organization and the assurance provider(s) This report is an update to the last report, in that GRI has decided to work within the same report parameters as for the last two reports. This report has undergone a GRI Application Level Check but is not externally assured. 19

22 4. Governance, Commitments, and Engagement 20

23 4. Governance, Commitments, and Engagement Governance 4.1 Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight Since 2002, GRI has been established as an independent international institution (foundation) based in The Netherlands, having been managed for the five years prior to that by one of its founder organizations, CERES, in the USA. It is structured as a global multi-stakeholder network, overseen by several governance bodies and coordinated by the Secretariat. One of GRI s strongest attributes is having its governance bodies comprised of a broad mix of people with diverse skills, education, life experiences and cultural backgrounds. Through its governance voting structure, GRI strives to keep this multi-stakeholder representation in place, as it ultimately helps GRI to retain the credibility it has established for the guidance in the Framework. GRI s governance structure is summarized below: A. Board of Directors The Board of Directors (the Board) maintains the ultimate fiduciary, financial and legal responsibility for GRI. The Board has 16 members, of which two positions were vacant at 30 June The Board of Directors meets at least twice a year. With the exception of GRI s Chief Executive, who by default is a Member of the Board, Board Members are appointed for a term of three years and a maximum of two consecutive terms. The Board is the final decision-making authority on Framework developments and organizational strategy. It takes strategic and policy-related advice from the Stakeholder Council, and technical advice from the Technical Advisory Committee. There are two sub-committees within the Board, these being the Sub-Committee of the GRI Board of Directors and the Audit, Finance and Remuneration Committee. In addition, three Board members form part of a joint committee with the Stakeholder Council, the GRI Nominating Committee. B. Stakeholder Council The Stakeholder Council (the SC) is the formal multi-stakeholder policy forum within the GRI governance structure. The SC consists of 60 members, of which 14 positions were vacant at 30 June The SC appoints Board Members and makes recommendations to the Board on strategic and policy matters. The SC meets at least once a year. The SC represents four different categories of stakeholders, who are allocated a prescribed number of seats on the Council: Business: 22 seats (on 30 June seats were filled); Civil Society Advocacy Organizations (CSO): 16 seats (on 30 June seats were filled); Mediating Institutions (MI): 16 seats (on 30 June seats were filled); and Labor: 6 seats (on 30 June seats were filled). 16 Proportion of Stakeholder Council Seats 7 6 Geographical spread of SC Members Business Civil Society/Advocacy Mediating Institutions Labor In order to ensure a balance of geographic representation, the SC maintains, as a minimum, one representative of each of the five regions, based on the United Nations system of geographic distribution: Africa (3 representatives on 30 June 2009); Asia/Pacific (9 representatives on 30 June 2009); Europe/North America (22 representatives on 30 June 2009); Latin America/Caribbean (7 representatives on 30 June 2009); and West Asia (5 representatives on 30 June 2009). Africa Asia/Pacific Europe/North America Latin America/Caribbean West Asia 21

24 The SC Chair has an oversight responsibility to achieve this balance. SC members are appointed for a term of not more than three years and as a result, each year there are a certain number of positions on the SC that become vacant. This frequency of rotation of members ensures that the SC remains a dynamic governance body. The process for filling these vacancies consists of two phases: 1. Organizational Stakeholders (OS) nominate and elect their preferred candidates for the vacant positions. From these candidates, 60% of the vacant positions are filled. 2. SC members appoint the remaining 40% of new members, filling the remaining vacant positions. C. Technical Advisory Committee The Technical Advisory Committee (the TAC) is comprised of ten international experts in the fields of the environment, human rights, labor, economics and finance, reporting, and/or accounting. One position was vacant on 30 June The TAC oversees the overall quality and coherence of the Framework. Key functions of the TAC are: to recommend direction on the architecture of the Framework and content of the Guidelines; to ensure that all technical documents are created under due process; and to submit a concur/non-concur recommendation to the Board on whether to approve drafts of GRI reporting documents for release. The Board appoints the TAC members. TAC members are appointed for a term of not more than two years. D. Organizational Stakeholders GRI offers a mechanism through which any organization can identify itself as supportive of the GRI mission. Organizational Stakeholders (OS) help to maintain the integrity of the GRI Guidelines and play an integral part in the GRI network. OS also play an important governance role through their annual vote by which they exercise their right to elect 60% of the Stakeholder Council. One-third of the Stakeholder Council seats are eligible for rotation each year. There is no limit on the number of OS that can join the OS program, nor to how long they remain as OS. At 30 June 2009, there was a total of 507 OS. E. GRI Secretariat The Secretariat is based in Amsterdam, The Netherlands and was comprised of 40 staff members as at 30 June It executes the work plan laid out by the Board on the advice of the SC and the TAC. The Secretariat is divided into four departments: Operations: Responsible for human resources, financial management, IT and other functions that keep the Secretariat and the network running smoothly. Sustainability Reporting Framework Development: Responsible for developing the GRI Guidelines, Sector Supplements and other research associated with the Reporting Framework. This technical center also reviews and analyzes reports produced based on the Guidelines. They are the key contact points for the Technical Advisory Committee. Learning Services: Develops publications, workshops and learning programs that support use of the Guidelines, including knowledge certification for practitioners. This team also develops the technical solutions that underpin these programs. Marketing, Communications and Network Relations: Responsible for building and maintaining key strategic and funding relationships with business, governments, foundations, and others, as well as being the key contact point for the SC and OS. This department acts as the mouthpiece of GRI through the media and reaches out to the Network through the website, e-newsletters and other means of communication. It maintains the outward image of GRI through marketing initiatives. Each department is headed by a Department Head who reports to the Chief Executive. The Secretariat is led by the Chief Executive, who also serves as a non-voting member of the Board. This Sustainability Report has been produced by the GRI Secretariat and approved by the Board. 4.2 Indicate whether the Chair of the highest governance body is also an executive officer The GRI Board Chairman for the financial year 2008/2009 was Dr. Mervyn E. King S.C. and he was not an executive officer. The only (non-voting) member of the Board who is an executive officer of GRI is Ernst Ligteringen, who was Chief Executive for the whole of the reporting period. 4.3 For organizations that have a unitary board structure, state the number of members of the highest governance body who are independent and/or non-executive members As at 30 June 2009, the Board of Directors consisted of 14 members, of which 13 are non-executive and independent directors and one is the Chief Executive of GRI. 22

25 4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body GRI does not have shareholders in the traditional financial sense, but it does have many stakeholders with an interest in GRI s activities. Mechanisms for stakeholders and employees to provide recommendation or direction to the Board include: The Chief Executive, SC and the TAC provide formal recommendations to the Board. Employees can raise issues directly with the Chief Executive. The GRI website provides many contact points (names and addresses of employees) with whom GRI stakeholders (or any members of the public) can discuss comments or questions at any time. Any interested organizations can become OS, and can then participate in the elections for SC membership. 4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization s performance (including social and environmental performance) None of the members of the highest governance bodies receives any remuneration or in-kind compensation for their Board duties. Department Heads and the Chief Executive, as well as all other staff members, are evaluated through a performance review mechanism. GRI has a policy to pay wages comparable to other similar organizations, for all positions. Wage scales are dependent on the level of responsibility and the extent of expertise and experience required. There are no specific compensation incentives or penalties related to activities performance, nor environmental or social performance for Department Heads or any other staff member. 4.6 Process in place for the highest governance body to ensure conflicts of interest are avoided GRI has an established process whereby each member of the Board signs a Conflict of Interest Policy and Statement annually (see Annex II). The purpose of the Conflict of Interest Policy is to protect GRI s interests when it is considering entering into a transaction or arrangement that might benefit the private interest of a Board Member of GRI (such as through a remunerated consultancy to GRI). This policy is intended to supplement, but not replace, any relevant laws governing conflicts of interest applicable to non-profit and charitable associations. Over the reporting period none of the non-executive Board Members has performed any form of remunerated consultancy for GRI. 4.7 Process for determining the qualifications and expertise of the members of the highest governance body for guiding the organization s strategy on economic, environmental, and social topics The GRI Nominating Committee coordinates the nominations of new governance body members and determines the qualifications and expertise required for guiding GRI s strategy on economic, environmental and social topics, as well as for any other topics it feels are relevant to a particular role. Chapter 4, Article 18 of the GRI Deed of Incorporation outlines the role and responsibility of the GRI Nominating Committee. The Nominating Committee comprises six members, two of whom are appointed by the Board and two of whom are appointed by the SC. The Chairman of the Board and the Chairman of the SC serve ex-officio on the Nominating Committee. When the Nominating Committee is discussing Board nominations, the Chairman of the Board serves as the fifth member and when the Nominating Committee is discussing SC nominations the Chairman of the SC serves as the fifth member. The Nominating Committee identifies vacancies on the Board, SC and TAC and as mentioned above, determines qualifications and expertise required for new members. The Chair of the TAC is invited to join the GRI Nominating Committee when recommendations to the TAC are discussed. SC members vote to accept or reject the new members of the Board as presented by the Nominating Committee. The responsibilities of the Nominating Committee have been expanded beyond its original mandate stated in the Deed of Incorporation through a 2004 Board resolution that charges them to also make recommendations for the TAC and a slate for the annual election of SC members. 4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation GRI s Vision The Global Reporting Initiative s (GRI) vision is that disclosure on economic, environmental, and social performance becomes as commonplace and comparable as financial reporting, and as important to organizational success. Status of implementation: Sustainability and corporate responsibility have now entered the mainstream and disclosure on sustainability information has be- 23

26 come a regular business activity. Since the release of the GRI G3 Guidelines in October 2006, uptake of sustainability reporting according to the GRI Guidelines has grown rapidly around the world. In the private sector, this is evidenced by recent statistics showing that 77% of Global Fortune 250 companies (G250), 69% of the 100 largest companies by revenue (N100), and 32% of the 2000 largest private companies in the world (Forbes Global 2000) are currently using the universally applicable reporting guidance for their sustainability reporting 7. Engagement between GRI and public agencies and governments has also increased notably, resulting in GRI being referred to in several national policies and white papers on corporate social responsibility (CSR)/environmental, social, governance (ESG) and Sustainable Development. GRI is aware of over 1300 organizations globally that have issued sustainability reports based on the GRI G3 Guidelines in The largest number of reports was produced in Spain (131), with the USA in close second place with 126 registered reports. In terms of regional division, Europe is home to 46% of the reporters known to GRI, followed by Asia with 20%, and Latin and North America with 12% each. The largest percentage of registered GRI reports is produced by companies in the Financial Services sector (13.1%), followed by the Energy sector (7.5%), and the Energy Utilities sector (6.6%) GRI s Mission GRI s mission is to create conditions for the transparent and reliable exchange of sustainability information through the development and continuous improvement of the GRI Sustainability Reporting Framework. Status of implementation: In the last reporting period, GRI continued to develop additional guidance, revise and improve existing guidance, create new learning tools and resources, and expand the network of Certified Training Partners around the world. All of these activities are in line with GRI s mission, which is not a target to be reached, but an ongoing guiding principle for the GRI network. During the reporting period, development of improvements to the Guidelines in certain focus areas such as Human Rights, Community Impacts, Content and Materiality and Gender was commenced. In March 2009 the GRI Board took a significant step by issuing the Amsterdam Declaration on Transparency and Reporting 8, advocating that governments adopt comply or explain policies to promote the disclosure on environmental, social and governance (ESG) issues. GRI s key strategic objectives as stated in the Strategy and Analysis section of GRI s last sustainability report still stand, including its commitment to evolve a comprehensive global sustainability reporting framework. This, and ongoing efforts to continuously improve the Guidelines and the value they create for reporters and users alike, count as GRI s most significant contribution towards sustainability. 4.9 Procedures of the highest governance body for overseeing the organization s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles The Board is the highest governance body responsible for overseeing GRI s identification and management of sustainability performance (including risks, opportunities, and adherence/ compliance with standards/codes of conduct/principles). As the Board generally only meets twice a year, the Board Sub-Committee and the Audit, Finance and Remuneration Committee can act on its behalf between Board meetings (governed by Board Rules and Procedures). The procedure by which the Board (or its substitute as described above) carries out this oversight is as follows: Guided by the Board and the SC, the GRI Secretariat prepares a yearly Development Plan for the organization, in which it sets objectives including sustainability goals (economic, environmental, and social) for GRI. The Board receives this Development Plan for approval and assesses the opportunities, risks and any adherence and compliance requirements. The Board Sub-Committee engages in conference calls to advise the Chief Executive where significant management and/or operational decisions need to be made. The Board monitors the progress made towards reaching the goals. Under exceptional circumstances (i.e. where decisions cannot be delayed to the next Board meeting and where a consultation with the full Board is not feasible), the Board Sub-Committee can decide on urgent governance matters on the Board s behalf. Furthermore the Audit, Finance and Remuneration Committee has regular meetings and conference calls to assist the Board in the exercise of its fiduciary duties regarding the management of the organization s financial resources. The Board also approves the content of the GRI Sustainability Report. 7 See: KPMG International Survey of Corporate Responsibility Reporting 2008,

27 4.10 Processes for evaluating the highest governance body s own performance, particularly with respect to economic, environmental, and social performance While there are no formal processes to evaluate the highest governance body s (the Board) own sustainability performance, GRI s governance structure is arranged to set limits on the length of governing terms. The re-election of Board members for a second consecutive term serves as an opportunity for evaluation by voting parties of the performance of those who wish to be considered for an additional term. There is also a formal procedure for the Chief Executive s performance to be reviewed by the Board of Directors. Commitments to External Initiatives 4.11 Explanation of whether and how the precautionary approach or principles is addressed by the organization The precautionary principle is an inherent part of GRI s mission, products and services, in that they are promoting greater measurement, understanding, transparency and accountability for sustainability performance. Indeed, through the Guidelines GRI s core product GRI prompts reporting organizations to explain how they are addressing the precautionary approach or principle. In terms of addressing the precautionary approach within GRI s day-to-day operations, GRI takes action by implementing its own sustainability reporting process, which helps to identify risks, opportunities and impacts. GRI is continuously working to improve its sustainability performance, which encompasses taking the precautionary approach Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses GRI engages with many different economic, environmental and social charters, principles and initiatives, both by referencing them within the Guidelines and through ongoing relationships. References made to external charters, principles and initiatives in the G3 Guidelines: The GRI G3 Guidelines reference where possible generally accepted norms and standards. These include 9 : Article 15 of the Rio Principles United Nations Universal Declaration of Human Rights and its Protocols United Nations Convention: International Covenant on Civil and Political Rights United Nations Convention: International Covenant on Economic, Social and Cultural Rights ILO Declaration on Fundamental Principles and Rights at Work of 1998 The Vienna Declaration and Programme Approach The ILO Tripartite Declaration Concerning Multinational Enterprises and Social Policy Organization for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises The Greenhouse Gas Protocol (GHG) Initiative A corporate accounting and reporting standard (Revised Edition, 2004) of the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD) Kyoto Protocol, 1997 The UN Global Compact Principles GRI s ongoing relationships with several other key external charters, principles and initiatives: Earth Charter: Priorities/ EarthCharterAndGRI/ Organization for Economic Cooperation and Development: GRI and the OECD work closely together and issue harmonization documents that demonstrate the synergies between the two sets of guidelines. Realizing Rights: The Ethical Globalization Initiative (Realizing Rights): See: Rights/ United Nations Conference on Trade and Development (UNC- TAD): In 2008 GRI and UNCTAD signed a formal Memorandum of Understanding, thereby mutually engaging them to collaborate on development of sustainability reporting indicators. United Nations Environment Programme (UNEP): Since 1999, GRI has been a collaborating centre of UNEP. United Nations Global Compact (UN Global Compact): See: United Nations Finance Initiative (UNEPFI): See: Supplements/FinancialServices/. 9 This list is not exhaustive and many other protocols and conventions are referenced in the Indicator Protocols. 25

28 4.13 Memberships in associations (such as industry associations) and/or national/international advocacy organizations GRI does not have the mandate to represent its stakeholders through membership. GRI can only represent the substantive outcome of the stakeholders inputs to the development of the GRI Reporting Framework and its general experience in the area of sustainability reporting. Stakeholder Engagement 4.14 List of stakeholder groups engaged by the organization As a multi-stakeholder organization, GRI engages many different groups in the development and promotion of the Sustainability Reporting Framework and all other GRI services. The main stakeholders who influence GRI s performance or are influenced by it are: Internal: Board of Directors (main decision-making body) Stakeholder Council Technical Advisory Committee Organizational Stakeholders Secretariat staff members External: Donors/Sponsors GRI Guidelines users Other normative standard setters/framework providers Trade and industrial associations Partners for specific activities (with whom GRI holds a Memorandum of Understanding); Accountancy associations Assurance providers for non-financial reports Consultants, service providers/reporting professionals Suppliers of goods or services to the Secretariat Prospective donors/partners Opinion makers in the sustainability and business context Business schools and academic institutions Training organizations in the CSR field The City of Amsterdam Key information user/reader communities: non-governmental organizations Labor unions Investors External charters, initiatives: Earth Charter, OECD, Realizing Rights: the Ethical Globalization Initiative, UNCTAD, UNEP, UNEPFI, UNGC, OECD Governmental agency representatives 4.15 Basis for identification and selection of stakeholders with whom to engage The list above was compiled by using the criteria of influenced by or influences GRI s performance and goals Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group Formal Governance Bodies (Board, SC, TAC and sub-committees): The Board meets at least twice a year. The SC meets at least once a year. The TAC meets on an ad hoc basis. Working Groups for Framework development: Meet on an ad hoc basis according to the project plan. Organizational Stakeholders (OS): OS in-country meetings are held on an ad hoc basis, depending on the number of OS in a country and the interest shown by those OS to hold such meetings. GRI intends to increase the number of these OS meetings around the world. (For more information see p. xx) GRI also holds dedicated OS events within the GRI biennial conference. Others: GRI has frequent contact with other stakeholders by methods such as, amongst others: distributing the GRI Monthly Newsletter; engaging with practitioner s networks for projects such as Sector Supplements or Guidelines revision projects; issuing public invitations to open workshops in various locations on various topics; organizing the GRI biennial conference; encouraging dialogue through the GRI LinkedIn Group and other social media platforms; asking for feedback on draft guidance via online surveys that are launched for public comment periods; and responding to s sent to the multitude of GRI contact addresses posted on the GRI 26

29 website Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting For the purposes of the previous GRI Sustainability Reporting process (2004/2007), GRI stakeholders were asked to identify, from a list of all the economic, environmental and social performance aspects in the Guidelines, the aspects they considered most important and therefore material for GRI. The aspects that were raised through this stakeholder engagement are detailed in the following table: Section Dimension Aspects Economic Economic Economic Performance Market Presence Indirect Economic Impacts Environmental Environmental Materials Energy Emissions, Effluents, and Waste Products and Services Compliance Transport Social Labor Practices and Decent Work Employment Labor/Management Relations Occupational Health & Safety Training and Education Diversity and Equal Opportunity Human Rights Investment and Procurement Practices Non-Discrimination Child Labor Society Community Corruption Public Policy Product Responsibility Customer Health and Safety Marketing Communications Customer Privacy The aspects selected by GRI stakeholders for GRI Sustainability Report 2004/

30 5. Management Approach and Performance Indicators 28

31 5. Management Approach and Performance Indicators Economic Disclosures The aspect Indirect Economic Impacts was not considered material during the stakeholder consultation process carried out to decide the scope of this report, and thus has not been reported on. The core indicator within this aspect is intended for major public infrastructure that can have a noticeable economic or community impact. This does not apply to GRI. However, in carrying out the mission of making sustainability reporting mainstream, GRI is assumed to have a positive indirect economic effect on organizations using the Framework to implement a reporting process worldwide. The process of sustainability reporting can require changes to management and monitoring systems that often lead to operational efficiency improvements and hence financial savings that may not have otherwise occurred. An indication of these positive, indirect economic effects has been collected on an ongoing basis. A first summary of the benefits organizations have gained from the reporting process was set out in the GRI Learning Publication GRI sustainability reporting: How valuable is the journey? Aspect: Economic Performance Disclosure of Management Approach The main objective for the economic performance of the Secretariat in Amsterdam is to effectively implement its mission while the underlying business model must allow for financial stability and building adequate reserves to safeguard long-term existence and risk protection. These requirements are captured in financial performance targets for annual surplus (5% of income) and level of cumulative reserve (at a level to cover six months operating expenses). Policy As a matter of policy, GRI seeks to obtain financial and other support from all organizations that are supportive of GRI s mission. While the principal motivation for organizations to support GRI should be and often is their contribution to the development of the public good that GRI is developing, an association to the GRI brand is for many an important value consideration. To underline the multi-stakeholder approach as a fundamental principle of the organization, GRI strives to ensure its revenue streams are diverse and from balanced sources. As guidance, this balance would be approximately one-third of revenues coming from OS and GRI branded services (mainly the business community), one-third from governments and foundations, and the remaining one-third for project-based work from a diversity of sources, including business and foundations. Performance Indicators EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments The figures are taken from the Audited Annual Report approved by the Board for the financial years 2008/2009, 2007/ , and 2006/2007. Goals and Performance GRI has aimed to strengthen its financial health and has succeeded in recording a small operating surplus for the fourth consecutive year. Focusing on improving GRI s internal processes and financial reporting has been instrumental in improving its economic performance. The cumulative reserve has been strengthened, albeit not yet being sufficient to meet our target of six months operating expenses. 10 For extract from Annual Accounts see Annex 1. 29

32 EC1 1 (all amounts in Euros) 2008/ / /2007 Revenues Operating costs Employee wages and benefits Payments to providers of funds Income 2 4,122,046 5,407,454 4,112,411 Revenues from financial investments Revenues from sales of assets ,919,033 3,275,614 2,399,230 Total payroll 1,663,589 1,605,950 1,093,489 Total benefits 408, , ,870 Dividends to shareholders Not applicable 3 Not applicable 3 Not applicable 3 Interest payments to providers of loans 2,965 7,567 14,189 Other payments of interest for debts and borrowings (3,571) 4 (14,035) 4 28,917 Payments to government Not applicable 3 Not applicable 3 Not applicable 3 Community investments Voluntary donations and investments of funds Infrastructure investments The definitions for the revenue items are taken from Indicator Protocol EC1 in the GRI G3 Guidelines. 2 Income includes: grants, sponsorships, specific projects, OS fees, conference fees, training certification fees, publication sales and Level Check fees. 3 GRI has no dividends to share, nor has it financial shareholders to consider. 4 Received more interest than paid. Income by donor 2008/ / /2007 Unrestricted donations Charles Stewart Mott Foundation 20,225 40,000 - Norway Ministry of Foreign Affairs 166, Sweden Ministry of Foreign Affairs 241, Total 428,571 40,000 - Sponsorships for special projects/objectives Ministry of Environment, The Netherlands (in kind) ,296 Ministry of Environment, The Netherlands 52,904 12,558 - International Finance Corporation 112,280 6,046 - Ministry of Foreign Affairs, The Netherlands (Ownership Global South) 103,740 69,724 - Ministry of Foreign Affairs, The Netherlands (G3 Global South) 32,521 56,970 - Ministry of Foreign Affairs, The Netherlands (Learning Capacity) 212, ,989 - Ministry of Foreign Affairs, The Netherlands (SME) 82,093 57,984 - Ministry of Foreign Affairs, The Netherlands (Emerging Markets) 152, Ministry of Foreign Affairs, The Netherlands (Biodiversity ) - 10,270 51,290 Ministry of Foreign Affairs, The Netherlands (ISO and DAC support ) ,575 Ministry of Foreign Affairs, The Netherlands (SME program) ,734 UNEP ,832 GRI Conference - 1,774,686 1,727,177 30

33 Income by donor cont. 2008/ / /2007 Readers Choice Award - 735,170 - Tech Partnership ,918 Sector Supplement Airport 43, Sector Supplement Apparel and Footwear 3,317 7,197 54,534 Sector Supplement Construction and Real Estate 7,072 12,338 - Sector Supplement Energy and Utilities 70,107 41, ,573 Sector Supplement Financial Services 2,019 41,449 57,171 Sector Supplement Food processing 67,204 81,305 - Sector Supplement Logistics and Transport - - 6,689 Sector Supplement Mining and Metals 23, Sector Supplement NGO 87, ,813 4,895 Sector Supplement Oil and Gas 9,597 4,100 - Sector Supplement Public Agencies ,200 G3 Guidelines - 15, ,167 G3 Briefings - 63, ,490 G3 Taxonomy (XBRL) ,625 - G3.1 Indicator Development 11,255 43,050 - G3 Education Consortium 8,744 57, ,304 Gender Project 54, Human Rights Project 140, Materiality Project 62, China Project 40, National Annexes 1, Learning Publications Development 6,520 17, ,729 Training Partner Certification 290, ,996 - GTZ (SME) 139, ,829 74,402 Conf.de Coop. De Catalunya (SME RSE COOP) - 9,704 14,575 FUINSA (SME) - 6,833 9,822 Vincular (SME) - 5, Global Compact - 5,020 39,980 Investor Consultation Group 4,427 57,089 - ISO ,394 - Stakeholder Council Brazil 91, HP servers, Microsoft software and Dell 155, , ,215 Miscellaneous/Honoraria/Brochures 120,154 76,215 - Website Development ,716 Application Level Check 314, , ,732 Learning Publications 107, ,950 34,449 Total 2,611,972 4,441,440 3,264,477 Additional sponsors Contributions from Organizational Stakeholders 1,081, , ,932 Total 4,122,046 5,407,454 4,112,411 31

34 EC3 Coverage of the organization s defined benefit plan obligations The GRI Management Team decided not to offer a Dutch pension scheme to Secretariat staff, as Dutch law prescribes that a pension scheme offered to one employee must be offered to all employees. It is unlikely that all GRI staff members will retire in The Netherlands, given that most of the Secretariat s employees are not Dutch, therefore this option was not practical. As compensation, all Secretariat staff members receive a 6% contribution on top of their gross annual salary. It is at each staff member s discretion to decide if and where to invest this money. All employees resident in the Netherlands are insured under the National Pension Act (AOW). Volunteers and interns are not insured under this Act as they are not considered employees under Dutch law. EC4 Significant financial assistance received from government These figures are taken from the Audited Annual Report approved by the Board for the financial years 2008/2009, 2007/2008 and 2006/2007. EC4 (all amounts in 2008/ / /2007 Euros) Tax relief/credits 151, , ,610 Investment Grants, 1,044, , ,860 research and development grants, and other relevant types of grants Other financial benefits received or receivable from any government for any operation ,296 1 GRI could reclaim VAT up to and including December 2008 when net invoice amount is above EUR As of 1 January 2009, GRI can only reclaim VAT from certain activities. 2 Donations from the Dutch Ministry of Foreign Affairs, the Dutch Ministry of Environment and Spatial Planning (VROM), the Dutch Ministry of Economic Affairs, the City of Amsterdam, Norwegian Government and Swedish Government. 3 Secondment from the Dutch Ministry VROM, ended in December GRI s tax position: As a foundation (Stichting) under Dutch law, GRI is eligible and has qualified for a 0% tax status on corporate tax obligations. Under certain conditions GRI is allowed to claim back VAT paid on goods and services. GRI filed for VAT refunds quarterly on invoices greater than up to 31 December As of 1 January 2009 GRI files the refund monthly for the VAT on direct expenditures for certain activities. GRI has VAT exemption on its monthly payment of rent. GRI does not receive any subsidies, awards, royalty holidays, financial assistance from Export Credit Agencies, or other financial incentives. There is no governmental representation in the governance structure of GRI. Aspect: Market Presence Disclosure on Management Approach GRI s earnings from various activities are not deemed large enough to significantly alter the building or loss of wealth and capacity of local economies. However, GRI is, by nature, a global organization and operates in a wide range of countries. GRI continues to expand its presence and influence as a global network in different markets and countries and engages local knowledge suppliers (consultancy and training) in carrying out its mission. Goals and Performance In GRI s last sustainability report, a focus was placed on the goal relating to the need to define and always improve the selection criteria of GRI operations suppliers. This goal was summarized as an economic, environmental and social procurement policy. During the reporting period, GRI made progress towards this goal by working to certain informal purchasing criteria; however, there is not yet a formal policy in place. This therefore remains one of GRI s goals for the next reporting period. Policy Procurement: The reason GRI chose to focus on the development of a procurement policy is that procurement is a unique opportunity for any organization to promote concrete change on a broader scale, to make a real difference and scale up the positive effects of responsible business outside of its own operations for the benefit of society as a whole. For GRI s operations, the critical suppliers are those related to office supplies, printing of publications and travel services. In years when GRI convenes a conference or embarks on other major projects, as was the case with the reporting period under review, the main suppliers for these activities would also fall under the procurement policy. As mentioned above, different approaches to ethical procurement have been tested, and good and representative initiatives have been implemented 112. GRI intends to formalize this policy within the next reporting period. Ethical screening policy: GRI does not currently have a formal ethical screening policy. However, GRI is conscious when creating partnerships or receiving funding that there should be no ethical conflict between the external party and GRI. GRI Secretariat staff and governance bodies 11 See Environmental DMA for more details p

35 assess these situations on a case-by-case basis and use their integrity when coming to a conclusion on the matter. Performance Indicators EC6 Policy, practices, and proportion of spending on locallybased suppliers at significant locations of operation For this report GRI considers all suppliers based in The Netherlands as locally-based suppliers. There is no policy or practice in place that specifies that GRI has to contract suppliers locally. Decisions on supplier selection were mainly taken based on cost effectiveness, quality considerations (including suppliers environmental policies, where relevant) and timeliness of delivery. For the data provided the following spending is not included: financial and legal costs, depreciations, exchange rate gains and losses, interest charges, bank and other finance charges, reservation doubtful debtors; and conference expenses. During the period 2008/2009 the GRI Secretariat spent around 66.5% of the services budget in The Netherlands, of which 42.8% was spent in Amsterdam. Most purchases were made in Europe, but as GRI engages in activities around the world, this proportion is decreasing (in the financial year 2004/ % of spending was in Europe, while in the financial year 2008/2009 only 83.95%). Over the reporting period, GRI s most significant supplier relations hailed from Europe, North America, and South America. EC7 Procedures for local hiring and proportion of senior management hired from the local community at locations of significant operation All formal operations of the GRI Secretariat and governance bodies are located exclusively in Amsterdam. The GRI Secretariat does not have employees based in any other locations. As the coordinating body for the global network that constitutes GRI, it is beneficial for the Secretariat staff in Amsterdam to be comprised of people from a diverse mix of geographical and cultural backgrounds. Therefore, GRI does not have a specific policy on hiring from the local community, but always advertises vacancies both locally and abroad. The GRI Secretariat staff is currently made up of people of 17 different nationalities. All prospective employees at GRI have equal opportunity for employment and advancement on the basis of ability, necessary qualifications and fitness for work irrespective of sex, age, marital status, civil partnership, sexual orientation, color, race, creed, religion, nationality or ethnic origin. The Board has the highest level of responsibility within GRI for overseeing Senior Management. The Senior Management Team at GRI has the day-to-day executive responsibilities for managing GRI and is comprised of individuals who have the highest level of organizational management experience. Whilst there is no policy in place that emphasizes hiring from the local community, it happens that three out of six members of GRI s Senior Management team are Dutch nationals. In total, 40% (16 people) of the GRI Secretariat staff hold Dutch nationality. Region 2008/ / /2007 EUR # of suppliers EUR # of suppliers EUR # of suppliers Netherlands 597, , , International 307, , , Total 905, , , Region 2008/ / /2007 EUR # of suppliers EUR # of suppliers EUR # of suppliers Amsterdam 255, , ,

36 Environmental Disclosures GRI considers the aspects Water, Biodiversity and Overall not to be material as GRI s main operations are conducted from a small office, and its core business revolves around gathering knowledge, communication and the development of guidance documents. As a result, GRI has a relatively small environmental impact and, while it does have some systems in place to reduce and mitigate environmental impacts, it has not yet made it a priority to create a formalized environmental policy. It is, however, acknowledged that the formalizing of an environmental policy would help GRI to embed better systematic procedures for monitoring, measuring and reporting its environmental impacts, which in turn would help to reduce them. Aspect: Materials Disclosure on Management Approach The GRI Secretariat environmental management approach to materials usage is mainly related to: INPUT Material office printing paper hard copy reproduction of the GRI Guidelines hard copy promotional material hard copy publications and promotional materials related to GRI events and conferences hard copy reproduction of research and learning publications OUTPUT Material Solid waste discharged in Amsterdam, which is managed by the city administration. Goals and Performance One goal for the previous reporting period was to develop and implement a procurement policy, which has implications for GRI s economic, environmental and social performance. As mentioned in the Economic Disclosure on Management Approach, no formal policy has yet been formalized. This therefore remains one of GRI s goals for the next reporting period (2009/2010). Despite this, GRI has implemented organizational changes to its day-to-day operations during the reporting period that do incorporate many of the elements intended for the formal policy, particularly those concerning environmental performance. These include: All office paper is made from recycled materials. Using the most environmentally friendly printing methods available for the printing of publications. Establishing clear environmental criteria to use when selecting paper quality for GRI s printed publications. Policy As mentioned above, GRI aims to reach the goal of formalizing the procurement policy within the next reporting period. This procurement policy has an environmental aspect to it, which should indeed cover some of the elements that would make up part of an environmental policy. Organizational Responsibility The Operations department within GRI is responsible for policy development and the implementation of internal procedures. The recently established SMART team will assist the Operations department with this in the future. Training and Awareness During the reporting period, there has been no formal training on the environmental impacts related to this aspect. Monitoring and Follow-up During this reporting period, monitoring systems for managing environmental performance have been focused on the core impacts discussed earlier: paper usage and printing services. Paper usage The volume of paper used by the Secretariat is monitored year on year by collecting the invoices from our paper supplier and reviewing the quantities by kilogram. As mentioned earlier, GRI has been moving towards purchasing 100% recycled paper over the reporting period. In terms of paper-usage, as the number of staff grew during the reporting period, paper-usage recorded for this reporting period is higher than in a non-conference year. However, all staff are encouraged to only print when necessary, and all computers at the Secretariat are set to print double-sided as the default. Unused printed pages are collected in recycle bins and recycled through the municipal paper-recycling service. Printing GRI has spent time researching the most environmentally-friendly bulk printing methods for its publications and has selected a vendor that has very high standards in this area. All GRI Learning Publications are printed on 100% recycled paper that is approved by the Forest Stewardship Council (FSC) (see Indicator EN2 for more information). Year-on-year, GRI will review whether or not even cleaner technology is available for the printing of its publications. 34

37 Performance Indicators EN2 Percentage of materials used that are recycled input materials Input materials are defined as all materials consumed by GRI to promote, support and reproduce GRI s Framework. This includes but is not limited to: office printing paper promotional material publications and promotional materials related to GRI events and conferences hard copies of Research and Development, and Learning publications Total Paper Usage EN / / /2007 Total Paper (kg) 4,738 5,873 9,285 Recycled Paper (kg) 3,734 3,514 1,550 Recycled Paper (%) Data reported is based on invoices from relevant vendors that relate to orders placed by GRI GRI reports on the usage of paper for the following: 2008/ / /2007 Kg Kg Kg Office paper 985 1, GRI letterhead stationery 251 Other GRI stationery materials 140 G3 Guidelines 2,100 Conference-related printed materials 0 1,303 4,875 GRI Learning publications 3,613 3,290 1,550 Total 4,738 5,873 9,285 In 2008/2009 the usage of paper further decreased. Although the print runs of newly translated versions of the Learning Publications have increased, the main factor responsible for the overall reduction in paper consumption compared to 2007/2008 year is the absence of any conference-related prints. The proportion of recycled paper used has increased. The majority of the recycled component of GRI s paper consumption is accounted for by Learning Publications (91% of the publications are constituted of post-consumer fiber), and GRI moved towards only purchasing recycled paper for its office paper and continues its overall effort to increase the usage of recycled paper. Simple steps to reduce our environmental impact through paper choice Paper for the GRI Learning Publications Series and for office paper has been selected on the basis of a set of environmental criteria. These criteria were the outcome of research on the available options for reducing the environmental impact of printing these publications. Criteria for the paper selection for GRI Learning Publications and office paper: The higher the recycled fiber content, the better. The higher the post-consumer fiber content, the better. Preference goes to processed-chlorine-free (PCF) paper. Preference is given to paper with Blue Angel (RAL-UZ 14) and Nordic Swan Certification. If there is a need for virgin fiber content due to paper characteristics, it should be Forest Stewardship Certified (FSC). Preference is given to paper from paper mills with ISO 14001/EMAS or comparable Environmental Management System certification of the paper production facility and the use of renewable energy in the paper production process. Aspect: Energy Disclosure on Management Approach Goals and Performance The building where the Secretariat was located for the first half of this reporting period was not designed for office purposes and was relatively energy inefficient (i.e. high ceilings, single-glazed windows). Despite these constraints, Secretariat staff ensured electrical equipment was shut down outside office hours and where possible, energy-saving light bulbs were used. All heating systems functioned on the basis of a pre-programmed thermostat, meaning that the heaters were only running during office hours. GRI did not have the discretion to carry out major architectural alterations, as it was a rented office space. Policy There is no formal policy defined. However, in the process of selecting a new office energy efficiency was one of the main deciding factors. 35

38 Organizational Responsibility The Operations department within GRI is responsible for policy development and the implementation of internal procedures. The recently established GRI SMART team will assist the Operations department with this in the future. Training and Awareness During the reporting period, there has been no formal training on the environmental impacts related to this aspect. Performance Indicators EN4 Indirect energy consumption by primary source EN4 2008/ / / Electricity Consumption (GJ) Heating Consumption (GJ) Data relates to the first half of this reporting period (July 2006 December 2006). 2 Reported as 87,486.1 Kwh (GHG Protocol conversion factor 1GJ = 277.8kwh). 3 Reported as 83,684 Kwh (GHG Protocol conversion factor 1GJ = 277.8kwh). 4 Natural Gas 5 This figure was calculated from two sets of data relating to two different buildings using two different calculation methods. July/Dec 2008 reported as 6,638.5m3 from the Keizersgracht building and converted to GJ using GHG Protocol conversion factor. Jan/Jun 2009 reported as 15,367.4 Dm3 (Dutch cubic meter) from the Weesperstraat building and converted to GJ using RWE Energy Netherland n.v. conversion factor (35.17 MJ). 6 Reported as 13,277 m3 (GHG Protocol conversion factor was used to convert this m3 figure to GJ) / / /2009 Electricity Consumption (GJ) Heating Consumption (GJ) For the first half of the reporting period (1 July end of December 2008) the GRI Secretariat was located in the same building as for the last reporting period. In January 2009, the GRI Secretariat moved to a shared office building in Amsterdam. The total surface area of GRI s portion of this office building is 6.4%. The building is relatively modern (it was constructed in the 1960s), and is equipped with energy saving light bulbs and a light sensor system so that lights only switch on when a room is occupied. The heating and energy system is managed through the building management. There are also communal areas like bike parking area, lobby, stairways, etc. for which the energy bill is proportionally divided among all occupants of the building. It is expected that this will result in reduced energy consumption per staff member compared with the previous GRI Secretariat building, which was very old and not designed as an office building. However, given that the Secretariat staff has grown in number since it moved out of the old building, and the surface area of the new building being used for desk space (as opposed to storage, etc.) has increased, it is perhaps not surprising that the heating consumption appears to have increased for this reporting period. Another obstruction in seeking precise data for this indicator stems from the fact that, in the Netherlands, the energy providers only issue the energy consumption information every January on a yearly basis and it is sent directly to the building owner, making it impossible to report exact consumption figures for the GRI reporting period (which runs 1 July to 30 June). As such, these figures can only be estimated as the exact energy consumption figures will only be available in In summary, the estimated electricity and energy consumption figures for 2008/2009 relate to two different buildings as well as different energy providers. Truly comparable data based on the new building is unlikely to be available until the 2010/2011 reporting period is over. Aspect: Emissions, Effluents, and Waste Disclosure on Management Approach As the Secretariat is an office-based organization with no vehicle fleet, the only direct emissions, effluents, and waste are office waste (including paper, printer cartridges, and e-waste that are re-used and recycled) and sanitary water use that is treated through the municipal water system. Regarding indirect emissions, the most significant amounts come from the travel of GRI representatives. Goals and Performance During previous reporting periods it became apparent that the Secretariat needed to improve its procedures with regard to monitoring of its carbon footprint. To facilitate this new procedures and tools have been developed in the past year. Policy GRI has amended its Travel Policy in such a way that staff are required to fill in details about their travel before being able to submit expense claims and (when appropriate) compensation days. This will help the Secretariat to monitor its indirect environmental impacts. The aim is that by improving data collection it will be easier for the Secretariat to set future targets for reduction of its carbon footprint as of the next reporting period (2009/2010). 36

39 Organizational Responsibility The Operations department within GRI is responsible for policy development and the implementation of internal procedures. The recently established GRI SMART team will assist the Operations department with this in the future. Training and Awareness During the reporting period, there has been no formal training on the environmental impacts related to this aspect. Monitoring and Follow-up During this reporting period the Secretariat improved its monitoring and follow-up procedures by developing a tool to track carbon emissions resulting from GRI representative travel. This will be implemented in the next reporting period (2009/2010). Recording carbon emissions from travel For Staff and Governance Bodies: During this reporting period GRI only collected information about air travel, as this is the main mode of transport taken by GRI staff for travel relating to work. Assistants collect the travel information of senior management through the travel invoices, including flight route taken and class of seat. Other staff members are responsible for collecting this information themselves. The carbon emissions resulting from the flights were then calculated using the Greenhouse Gas Protocol (GHG) online calculators. For Working Groups: Working Group members are required to book their own travel and then file a reimbursement claim to the Secretariat, which manages the project budgets. GRI has implemented a system where Working Group members must complete a form detailing the flight route taken and class of seat when they submit their reimbursement forms. To date GRI only collects information about air travel, as this is the main mode of transport taken by GRI Working Group members for travel to Working Group meetings. GRI will also look at amending the form for Working Group members, in order to collect more precise information in the future. Additional contextual information GRI is based in Amsterdam, a city where recycling processes cover most waste that is produced. The high quality and low environmental impact of public transportation helps the GRI Secretariat to reduce its environmental impacts in general. Performance Indicators EN16 Total direct and indirect greenhouse gas emissions by weight The estimation of direct and indirect greenhouse gas emissions is based on GRI s purchase of electricity and heat as shown in the data for performance indicator EN4 Indirect energy consumption by primary source. The estimation of indirect greenhouse gas emissions has been calculated based on the GHG protocol and on the calculation factors given by the providers, as shown in the following table. Tonnes of CO / / / Electricity Consumption (tonnes of CO 2 ) Heating Consumption (tonnes of CO 2 ) This Figure relates to the first half of 2006/2007 (only six months data available) Kwh converted at Kg CO 2 as provided by Nuon Annual Report 2007, p For Jan/Jun 2009 Dm 3 converted to Kwh by RWE Energy Netherland n.v. conversions factors: 15,367.4 Dm 3 x = MJ/3.6 = Kwh. 4 Converted to tonnes of CO 2 using the GHG Protocol. As stated in indicator EN4 above, the 2008/2009 energy and heating consumption falling under direct and indirect greenhouse gas emissions is only estimated at this stage. The increase of CO 2 emissions is likely to be related to increased number of employees from 33 (June 2008) to 40 (June 2009). The relocation of the Secretariat to a different office building also affects the comparability of the data. As mentioned above, GRI has developed a tool to facilitate the tracking of carbon emissions of work-related travel and this will be implemented as of the next reporting period. The GRI SMART team is in the process of consulting with different suppliers on how best to manage operational emissions in the future. 37

40 EN17 Other relevant indirect greenhouse gas emissions by weight GRI s most significant indirect GHG emissions are from air travel. This includes travel by Secretariat staff members as well as GRI governance bodies and Working Groups. During the reporting period the number of GRI Working Group meetings increased, mainly related to increased volume of Sector Supplements and other projects that have been initiated in this period. In addition GRI established a Government Advisory Group consisting of members from different parts of the world. The group met twice during the reporting period. The total amount of CO 2 emissions is lower than in the last reporting period as there was no Conference. Air Travel 2009/ / /2007 (in tons CO ² ) Secretariat and Working Groups Secretariat Data n/a Working Groups Data n/a Governance Bodies Board Stakeholder Council Technical Advisory Group Total GRI Operations air travel in tonnes CO 2 Conference Total air travel in tonnes CO As noted in the last GRI sustainability report, GRI s monitoring of business travel prior to this reporting period was combined with Secretariat and Working Group data. GRI held conferences in the fiscal years 2006/2007 and 2007/2008 only. GRI has also made efforts to improve the data gathering so that each Working Group is aware of its CO 2 emissions. The table below shows the breakdown of CO 2 emission generated per group in the reporting period. GRI-related travel 1 July June 2009 CO 2 tonnes Governance Meetings Board of Directors Stakeholder Council Technical Advisory Group Government Advisory Group GRI Secretariat/Staff travel GRI-generated external meetings Airport Electric Utilities Mining & Metals NGO Sustainability Reporting Framework Team (SUrF) Food processing Gender Project* Human Rights Content & Materiality Other Tech Team workshops** Sub total Other teams L&S Training of Trainers*** Total GRI No specific travel details, only origin and destination. * The meetings were held with local attendance. No travel information available. ** Other SUrF Team related workshops: community, transparency, ISO services, etc. *** Training of trainers meeting in Amsterdam, other meetings not related to the SUrF Team activities. Calculation methods In approximately 10% of cases, the route of travel is not calculated precisely and only the departure and arrival points are provided. For external meetings, 67% of the emissions were calculated on the basis of the arrival and departure points. In line with the Guidelines, GRI generally performs a calculation (recommended by the GHG Protocol Initiative) that converts kilometers traveled (taking into account class of seat) by air plane into CO 2 emissions. 38

41 EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved In order to reduce emissions resulting from GRI Secretariat activities, the following initiatives are used: Greenhouse Gas Emissions tracking: During the reporting period, GRI developed a new system for tracking greenhouse gas emissions resulting from flights taken by staff for work purposes. This system was active from 1 July 2009, hence the first full set of data for this will only be available at the end of the next reporting period (2009/2010). While the Secretariat is not yet financially in a position to offset these flights, monitoring and measuring these flights will provide baseline data to use as a starting point from which the Secretariat can work when attempting to reduce the number of flights taken. Reimbursement of public transport costs: Staff only receive reimbursement of commuting costs when using public transport but not for using other modes of transport. Teleconferencing: The Secretariat is working on the best procedure to include this initiative in a policy. Here is a current overview of the frequency of teleconferencing: There are ten different SC committees and working groups, each with 9 16 members. Instead of having face-to-face meetings and working sessions for all of these groups, conference calls are organized where possible. Depending on the working group or committee, there is a conference call on average every 1 3 months. Members of the Board who form the Sub-Committee, Audit, Finance and Remuneration Committee and GRI Nominating Committee use teleconferences for discussions and decision-making on average once every two months. The Board meets in person once or twice a year. The GRI Working Groups typically meet 4 6 times over the course of developing reporting guidance. The Working Groups are by definition globally representative and must rely on face-to-face meetings in most cases in order to effectively work together. GRI does not currently foresee being able to reduce this travel. Secretarial office: During the reporting period, the GRI Secretariat moved into a new office space. Selection of this new office space was based on (among other things) the following criteria, which should help in reduction of greenhouse gas emissions from the Secretariat s operations: A high sustainability standard Easy access to public transport Co-location with other organizations to benefit from shared facilities It is currently not possible to measure the reductions achieved as a result of the above-mentioned initiatives; however, for several of the initiatives this will change after the next reporting period. GRI is continuously working on its policies and procedures to make initiatives such as these more measurable in the future. Aspect: Products and Services Disclosure on Management Approach All GRI products and services with an environmental impact have been discussed in previous Disclosure on Management Approach sections. Please refer to the above items. Performance Indicators EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation Mitigation is understood as the actions GRI has taken to reduce the negative environmental impacts and enhance the positive impacts of its products and services in design and delivery. While many items relevant to this indicator were deemed not to be material during the materiality test for GRI s previous report (water, effluents, noise, waste), some initiatives have been undertaken to mitigate environmental impacts of products and services. Below is a description of the status of GRI s mitigation initiatives. Item Materials use Water use Emissions Effluents Noise Waste Status of mitigation initiatives There are no systems in place to calculate the environmental impacts resulting from the disposal of GRI products such as printed publications. Water use was determined not to be material in GRI s materiality test; however, the following mitigation is occurring: GRI Learning Publications are produced using recycled paper, which requires one third less water in the paper production process compared to that of virgin paper. The GRI Secretariat does not currently have any formal policy to reduce or offset GHG emissions relating to its products and services. There are, however, areas in which the GRI Secretariat mitigates GHG emissions: Through selection of a printing service provider who: offsets 100% of their printing-related GHG emissions ; and does not use any chemicals that lead to Isopropyl emissions (toxic/ozone-depleting emissions) in their printing process. During the reporting period, the GRI Secretariat established a system for measuring and monitoring greenhouse gas emissions resulting from flights taken by Secretariat staff for work. The first full set of data will be ready for the next reporting period (2009/2010). Effluents associated with GRI products and services were determined not to be material. No mitigation has taken place. Noise associated with GRI products and services was determined not to be material. No mitigation has taken place. Waste was determined not to be material. No mitigation has taken place. 1 GRI chooses to use a company that utilizes green energy, i.e. electricity from sustainable sources or for which the appropriate green certificates have been purchased according to Dutch Law. 2 GRI chooses to use a company that uses water-free printing processes. 39

42 Aspect: Compliance Disclosure on Management Approach Due to the nature of the Secretariat s operation as a relatively small office-based organization, the establishment of a management approach related to environmental compliance has so far not been considered necessary. EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations GRI has not identified any incident of non-compliance with any environmental laws or regulations. Aspect: Transport Disclosure on Management Approach The office location of the Secretariat is very central within Amsterdam, highly accessible by public transport and does not offer private parking facilities. All of these factors help to reduce emissions, and most GRI staff either cycle, walk or take public transport to work. GRI also reimburses staff commuting expenses if they use public transport. Guests visiting GRI for meetings are also encouraged to use public transport. As mentioned earlier, GRI has recorded the carbon emissions related to flights taken by Secretariat staff and Board members when participating in GRI activities; however, this is for monitoring purposes only at this stage. EN29 Significant environ-mental impacts of transporting products and other goods and materials used for the organization s operations, and transporting members of the workforce Impacts Due to the nature and small scale of GRI s products and services, the most significant environmental impact arises from travel by Secretariat staff, governance body members and Working Group participants. The modes of transport used for this travel, particularly air planes, result in the emission of greenhouse gases. It is evident from the table below that the amount of overall emissions has increased in this reporting period compared to the previous reporting periods. This is attributable to an improvement in tracking and monitoring methods since the last reporting period as well increasing Working Group meetings related to Sector Supplements and the establishment of a new governance body, the Government Advisory Group, and increase in number of staff. CO 2 from business 2008/ / /2007 air travel in tonnes (comparison) 1,2 Operations In the GRI 2004/2007 sustainability report, rail travel data was included in this indicator. Due to the very low number of rail journeys taken by GRI and hence its insignificant environmental impact, this data has been dropped from this report. 2 See indicator EN17 for details on calculations of CO 2 emissions. 3 Operations The governance bodies, the Secretariat and the Working Groups / /2008 NB: GRI has attempted to improve the monitoring of flights (routes, seat class and distances) and other travel data. Through better monitoring of flights and other travel data, the data available for this reporting period is more accurate and complete than for the previous reporting periods. It is possible that the amounts of CO 2 emissions shown from the previous reporting periods are higher than the actual amounts due to poorer monitoring methods and data available at the time. Reduction and mitigation of impacts Travel: 2008/2009 GRI operations related to travels (in tons CO 2 ) GRI continues in its attempt to reduce travel by encouraging the increased use of conference calls. Most Secretariat staff use bicycles (22) to travel to work. In exceptional cases some take a bus/tram (6) or train (10) to commute to their workplace and two employees walk to the office. No employees commute by car. The GRI Secretariat relocated to new premises as of 1 January With the new office still located in the centre of Amsterdam, the majority of employees continue to use bicycles to get to and from work. Products, services and other operations: The GRI Guidelines are distributed electronically as free downloads from the GRI website. Hard copies of the GRI Guidelines, as well as GRI Learning Publications only available in hard copy, are available for purchase from the E-shop on the GRI website, and the default (and most frequently used) delivery option for customers is by general mail services (national and international). With a growing list of publications on offer, emissions related to mailing publications could become an issue for GRI. No system is currently in place to track emissions related to the mailing of publications. No system is currently in place to track emissions related to the transportation of office materials to the GRI Secretariat s office or for raw materials for production of printed publications. 40

43 Social Disclosures Labor Practices and Decent Work Disclosures Aspect: Employment Disclosure on Management Approach GRI s Diversity Policy states that all people should have equal opportunity for employment and advancement on the basis of ability, necessary qualifications and fitness for work regardless of sex, age, civil status, sexual orientation, color, race, creed, religion, and national or ethnic origin. Also, GRI seeks through this policy to reflect in its staff composition, as far as possible, the diversity of the local and global community in which the Secretariat and the GRI operate. GRI strives to offer attractive employment benefits, decent working conditions and equal opportunities for its diverse group of employees. Employee terms and conditions are set out in a Contract of Employment and the Personnel Manual. In addition to the Personnel Manual, a supplementary Employee Benefits Schedule is available to all and reflects the taxable impacts. Goals and Performance The main employment goal for the reporting period continued to be enhancement of staff diversity as well as among governance bodies and Guidelines Working Groups. No official diversity requirements are contained in the Deed of Incorporation regarding the Secretariat staff, but GRI commonly and publicly refers to the importance of diversity to ensure the staff represents broad geographic regions and diversity of backgrounds and skills. In terms of the age of GRI staff, the bulk of employees are still mainly under 36 years of age. Progress has been made in achieving a more balanced geographical representation. Policy GRI strives to offer attractive employment benefits, decent working conditions and equal opportunities for its diverse group of employees. Employee terms and conditions are set out in a Contract of Employment and the Personnel Manual. In addition to the Personnel Manual, a supplementary Employee Benefits Schedule is available to all and reflects the taxable impacts. As mentioned above, GRI has already formalized a policy on diversity. Organizational Responsibility The Operations department of the Secretariat continues to be responsible for employment issues, policy development and the implementation of internal procedures. Monitoring and Follow-up The monitoring of employment policies is carried out on an ongoing basis at GRI. Procedures and policies relating to employment have been relatively structured since the establishment of the Secretariat s operations. Through the establishment of the GRI SMART team, a more structured review of existing policies and procedures will be in place for the next reporting period. Performance Indicators LA1 Total workforce by employment type, employment contract, and region Since the total GRI workforce (the GRI Secretariat), is based in Amsterdam, GRI has only considered one region of operation. 3 1 Employment type 30 June June June 2007 Full-time Part-time Total Contract type 30 June June June 2007 Indefinite Definite Secondment Internships Volunteers Total / Geographical Representation* / /2009* * Two of the Staff members who are listed as European nationals hold dual nationality (they are from South America) Europe Asia North America South America Africa Australia and Oceania 41

44 LA2 Total number and rate of employee turnover by age group, gender, and region The following figures are calculated only on formal employee figures: interns and volunteers are not considered due to the legal nature of their contracts. Total Employee turnover Turnover in numbers Age groups 2008/ / / Employee turnover 2008/ / /2007 # Age Group < #Age Group # Age Group > Gender Employee turnover 2008/ / /2007 # Male # Female Region Employee turnover 2008/ / /2007 Europe Asia North America South America Africa Australia and Oceania Total LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations. Over and above Dutch statutory requirements, GRI provides: A 6% annual pension contribution A collective health insurance package for all their employees. GRI has thus been able to reduce the monthly premium considerably compared to individually arranged health insurance coverage Reimbursement of 50% of the costs for the basic mandatory health insurance premium Reimbursement of commuting costs using public transport (up to a maximum of 150 EUR per month) Up to manager level, compensation in time for overtime based on management approval, in line with set regulations Care time GRI will pay 100% of the net salary to a maximum of two times the contractual hours per week per calendar year. Any time needed thereafter will be taken as unpaid leave There are additional benefits for those staff members with GRI expatriate status. All eligible expenses are determined by the list set out by the Dutch tax authorities and include help with relocation, housing allowances, allowances for school fees and one homeleave ticket per year. Aspect: Labor/Management Relations Disclosure on Management Approach The Secretariat did not undergo a full restructuring process during the reporting period, but smaller changes were made that affected reporting lines or individuals tasks. The procedure for this was as follows: Overall strategy discussed with the Board Chairman, the Sub- Committee, the Audit, Finance and Remuneration Committee and the Secretariat Management Team. Parameters for the implementation of the strategy were discussed by the Secretariat s Management Team. The resulting implications for individuals were discussed between the Chief Executive, the HR Manager and the relevant Senior Manager, and in consultation with the Chairman of the Board who maintained an oversight role in this process. Any staff member directly affected by changes was consulted directly by the Chief Executive, HR Manager and/or Department Head, and line manager. Implications for their day-to-day tasks and reporting were discussed and agreed upon. The GRI Secretariat staff member was then informed in writing. Goals and Performance The processes and code of conduct for resolving grievances and diversity issues within GRI are partially developed. To avoid risks of non-standard approaches, these processes need to be developed and documented further. Policy GRI has a formal Harassment Policy in place. Overtime Compensation, Performance Review and Career Path Policies were drafted during the reporting period and await approval by the Management Team and Board. 42

45 A policy has been drafted to provide an opportunity for individual employees to formally raise individual grievances on matters relevant to their employment or working conditions to cover situations in which the customary channel of resolution through the direct supervisor has failed. No such grievances have been filed in the reporting period. Organizational Responsibility The Operations department of the Secretariat continues to be responsible for labor and management relations issues, policy development and the implementation of internal procedures. Monitoring and Follow-up The monitoring of labor and management relations policies is carried out on an ongoing basis at GRI. Procedures and policies relating to labor and management relations have been relatively structured since the establishment of the Secretariat s operations. Through the establishment of the GRI SMART team, a more structured review of existing policies and procedures will be in place for the next reporting period. Performance Indicators LA5 Minimum notice period(s) regarding operational changes, including whether it is specified in collective agreements Labor contracts have a minimum notice period (by law) of one month for the employee and one month for the employer. The maximum notice periods (by law) are three months for the employee and six months for the employer. By law, a notice period is not required for definite contracts. However, in the spirit of Good Working Conditions (in Dutch Goed Werkgeverschap ), GRI always considers possible extension of a definite contract at least two months prior to the expiration date (via a performance review). Aspect: Occupational Health and Safety Disclosure on Management Approach Goals and Performance GRI aims to assure a healthy and safe work environment for employees. Procedures and policies relating to occupational health and safety have been relatively structured since the establishment of the Secretariat s operations Therefore, regular procedures are followed, based on Dutch legislation and mandatory codes of practice and standards. The general actions that have been taken during this reporting period include: training of two employees in First Aid procedures, availability of a first aid kit, fire extinguishers strategically placed at the office based on fire service recommendations, all new colleagues informed about fire escape routes. During the first six months of the reporting period GRI offices were located at an old-style canal house in Amsterdam divided over five floors, which posed some limitations for a proper functioning of the office. In January 2009 GRI moved to a purpose-built office building. GRI now has its office on one floor with central ventilation and heating system and proper fire escape routes. This represents an improvement in working conditions for GRI Secretariat members. During the reporting period, two non serious injuries occurred in the workplace. Neither injury resulted in any illness registration. There are no occupational diseases to report during the reporting period as shown in the LA7 indicator figures. The absence rate is below the Dutch national average and has decreased compared to the previous reporting period (2007/2008). Being located in Amsterdam, the Netherlands, exposure to highrisk pandemic diseases is minimal. In the event of external disaster, GRI will follow the advice and recommendations of the Dutch government. Policy There is no official approved Policy but GRI aims to create a culture whereby risk control and prevention of harm is part of everyday business. Organizational Responsibility The Operations department of the Secretariat and in particular the HR Manager is responsible for occupational health and safety issues, policy development and the implementation of internal procedures. Training and Awareness Dutch regulations require employees certified in First Aid procedures to update their knowledge on a yearly basis. The HR manager is responsible for ensuring that the procedures for emergency evacuation of the building comply with Dutch regulations. Monitoring and Follow-up The monitoring of occupational health and safety policies is carried out on an ongoing basis at GRI by the HR manager. There is a standard registration form in the event an accident in the workplace, and there is also an ARBO (Arbeids Omstandigheiden) system that follows up on employee illness which would allow identification of any occupational diseases that may occur. 43

46 Performance Indicators LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region 2008/ / /2007 Injury rate (IR) Occupational 0 0 diseases rate 0 (ODR) Lost day rate (LDR) Absentee rate (AR) 291 days 433 days 92 days (2.40%) 1 (4.0%) 2 (0.65%) 3 1 Netherlands national average was 4.3% in (Source: CBS) 2 Netherlands national average was 5.1% in (Source: CBS) 3 Netherlands national average was 5.11% in (Source: CBS) Minor (first-aid level) injuries are included in data. Days means scheduled work days not calendar days. Lost days count begins the day after the accident. Dutch law is applied for recording and reporting accident statistics. LA8 Education, training, counseling, prevention, and riskcontrol programs in place to assist workforce members, their families, or community members regarding serious diseases GRI Secretariat s activities are mainly located in Amsterdam, the Netherlands, where there is no high risk or incidence of communicable diseases. For those staff members traveling to countries where certain diseases are endemic, GRI encourages and reimburses the cost of vaccinations and appropriate prophylaxes. Education, training, and counseling with regards to serious diseases are all included in the health package and provided by the government. Aspect: Training and Education Disclosure on Management Approach Goals and Performance GRI aims to help staff to achieve professional and personal growth and greater job satisfaction. Being a small organization, GRI bases this career path development on a yearly performance review and the provision, as far as possible, of training opportunities. The overall performance rating of each employee is based on what and how the employee delivers against his/her personal objectives. These objectives are agreed between the employee and his/her line manager. They are then summarized in writing and shared with the HR Manager. During the reporting period 100% of the employees have received a formal performance appraisal and review (LA12). The average hours of external training was 8.3 hours/employee, including stress management workshop, English language lessons and First Aid training. All employee categories have received some training hours during the reporting period and over 65% of the training hours have been at the Administration, Coordinator and Managers levels (LA10). Policy Training and education is one of the subjects that has been included in the GRI Human Resources Policy, which is currently available in draft. Although there is still no specific Policy on Career Path Development, the employee performance cycle follows a regular procedure and is done on a yearly basis. Organizational Responsibility The Operations department of the Secretariat continues to be responsible for training and education, policy development and the implementation of internal procedures. Monitoring and Follow-up The monitoring of training and education policies is carried out on an ongoing basis at GRI. Procedures and policies relating to the employee performance review have been relatively structured since the establishment of the Secretariat s operations. Performance Indicators LA10 Average hours of training per year per employee by employee category Employee Category Number of staff at 30 June 2009 Hours training 1 in total per category Average hours per employee per category Chief Executive Deputy Chief Executive level Directors level Managers level Coordinator level Administrators level Intern level Volunteer level Total These training hours refer only to external training courses. 44

47 LA12 Percentage of employees receiving regular performance and career development reviews LA / / /2007 Number of employees Percentage of employees who received a formal performance appraisal and review 100% 100% 100% review of existing policies and procedures will be in place for the next reporting period. Performance Indicators LA13 Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity Gender Employees Gender Balance* Aspect: Diversity and Equal Opportunity Disclosure on Management Approach Goals and Performance Following the GRI Diversity Policy, the GRI Secretariat has, in practice, aimed to improve diversity, and progress has been made at all levels of staff. During the reporting period, all continents were represented at GRI and 25% of the employees came from regions other than Europe. In total, 17 different nationalities worked at GRI. Regarding gender, the GRI employee figures during the last three reporting periods do not show a standard gender balance; during the period, 70% of employees were female. At senior management level there is gender balance, but from Manager downwards the figures show more female employees Chief Executive Deputy CE Director Manager *Data as at 30 June Coordinator Administrator Intern Volunteer 2006/2007 Total staff = 32 F= 69% M= 31% Chief Executive Director Manager C oordinator Administrator Intern Volunteer Deputy CE 2007/2008 Total staff = 33 F= 58% M= 42% Chief Executive Governance Bodies Gender Balance* Director Manager Coordinator Administrator Intern Volunteer Deputy CE 2008/2009 Total staff = 40 F= 70% M= 30% Male Female During the reporting period, a new statement was added to the Stakeholder Council clause relating to composition in the Deed of Incorporation: The Board shall also take into account geographic and regional balance, as well as the gender balance. Extending this clause was a goal stated in the last GRI Sustainability Report (2007/2008). Policy GRI has a Diversity Policy in place. Organizational Responsibility The Operations department of the Secretariat continues to be responsible for diversity and equal opportunity issues, policy development and the implementation of internal procedures. Monitoring and Follow-up The monitoring of diversity and equal opportunity policies is carried out on an ongoing basis at GRI. Procedures and policies relating to diversity and equal opportunity have been relatively structured since the establishment of the Secretariat s operations. Following the establishment of the GRI SMART team, a more structured *Data as at 30 June Age Board Directors Stakeholder Council Technical Advisory Committee *Data as at 30 June 2006/ /2007 Board Directors Stakeholder Council Technical Advisory Committee 2007/2008 Board Directors Stakeholder Council Technical Advisory Committee Employees Age Groups * / / /2009 Male Female Age Group No data available regarding the age of members of governance bodies

48 3 1 Geographic representation 2 Employees - Geographical Representation*, **, *** / employees * Nationality of employees is used as criteria for geographic representation. ** Data as at 30 June *** Two of the staff members who are listed as European nationals hold dual nationality (they are from South America). * Data from 30 June / employees 2008/ employees Board of Directors - Geographical Representation Board of Directors - Geographical Representations* 15% 8% 8% 7% 8% 2006/2007 Total 13 54% 7% 14% 14% 7% 15% 2007/2008 Total % % 7% 14% 2 7% 15% /2009 Total 14 Europe Asia North America South America Africa Australia and Oceania 5 directors colon out Europe Asia 43% North America South America Africa Australia and Oceania LA14 Ratio of basic salary of men to women by employee category GRI has evaluated the average salary for six different job levels (director, manager, junior manager, coordinator, administrator and intern). The ratio of basic salary of women to men is 1:1 in all six employee categories. The variation of ratio of the average female/male salaries is within 2%, which is not significant in any direction neither for male nor for female. * Data from 30 June Stakeholder Stakeholder Council- Council Geographical - Geographical Representations* Representation 11% 12% 20% 9% 20% 8% 32% 28% 6% 11% 22% 14% 11% 27% 18% 16% 15% 20% 2006/2007 Total /2008 Total /2009 Total 46 Europe Asia North America South America Africa Australia and Oceania * Data from 30 June Technical Technical Advisory Advisory Group Group - Geographical - Geographical Representations* Representation 10% 10% 11% 10% 10% 11% 10% 20% 2006/2007 Total 9 50% 10% 20% 2007/2008 Total 10 50% 11% 20% 2008/2009 Total 9 45% Europe Asia North America South America Africa Australia and Oceania * Data from 30 June 46

49 Human Rights Disclosures General GRI considers the aspects freedom of association and collective bargaining, child labor, forced and compulsory labor, security practices and indigenous rights to be immaterial as the GRI office is based in Amsterdam and due to full compliance with Dutch Law these aspects are not an issue. However, if GRI should ever actively operate in regions where these have not been institutionalized, a policy would have to be set up in order to cope with these aspects and make it possible to reporting on them. Performance Indicators Aspect: Investment and Procurement practices Disclosure on Management Approach Goals and Performance GRI considers it important to screen its suppliers on the basis of human rights and aims to report on this issue in the future. Policy There is currently no policy in place regarding the screening of suppliers on human rights. Some criteria have been set to indentify green suppliers, where a general procurement policy still has to be approved. Aspect: Non-discrimination Disclosure on Management Approach Goals and Performance The processes and code of conduct for resolving discrimination issues within GRI are partially developed. GRI aims to avoid risks of utilizing non-standard approaches; however, these processes need to be developed and documented further. GRI aims to get approval for the Diversity Policy in the next reporting period. Policy In relation to Non-discrimination, a Harassment Policy is in place, and the Diversity Policy is in draft form. Organizational Responsibility The Operations department of the Secretariat is responsible for diversity and equal opportunity issues, policy development and the implementation of internal procedures regarding Secretariat activities. Performance Indicators HR4 Total number of incidents of discrimination and actions taken No incidents of discrimination were reported. Organizational Responsibility The Operations department of the Secretariat is responsible for diversity and equal opportunity issues, policy development and the implementation of internal procedures regarding Secretariat activities. However, this issue also needs to be taken into consideration by all staff members involved in the decision making on GRI suppliers. Performance Indicators HR2 Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken Suppliers were not screened on human rights practices in the selection process. GRI is developing a Procurement Policy and procedures in which a screening process will be set out. 47

50 Society Disclosures GRI considers the aspects Community and Anti-competitive Behavior, not to be material as they are outside the scope of GRI s operations. Aspect: Community Disclosure on Management Approach GRI deems this aspect to be not material, after having established its non-applicability to GRI s operations during the reporting process. Performance Indicators SO1 Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting This indicator was selected as material by stakeholders during the consultation process carried out for GRI s 2004/2007 sustainability report. Through the exercise of preparing that report, it became apparent that this indicator was misunderstood in the materiality definition process. The reason GRI does not consider this indicator as material is because of the small impact of GRI s headquarters on the surrounding community of the City of Amsterdam. GRI has continued to mention this indicator in all reports since 2004/2007, but this will be reconsidered when carrying out the next materiality test. Aspect: Corruption Disclosure on Management Approach As an office-based organization located in Amsterdam, GRI is in full compliance with Dutch Law on aspects relating to corruption issues. Goals and Performance It is common practice that gifts received during official representation activities are not kept for personal use. Policy There are no written policies and procedures in place related to anti-corruption. Performance Indicators SO3 Percentage of employees trained in the organization s anti-corruption policies and procedures There was no training provided to management and nonmanagement staff regarding anti-corruption policies and procedures. Aspect: Public Policy Disclosure on Management Approach Goals and Performance In relation to public policy, it is important to underline that the content of the G3 Guidelines covers issues related to the aspects of Community, Corruption, Public Policy, Anti-competitive Behavior and Compliance. Policy From the initial launch of the GRI Guidelines, it has been GRI s policy to remain neutral on policy choices by governments in the field of sustainability reporting; e.g. on the issue of mandatory versus voluntary reporting. However, following the global financial crisis of 2008/2009, the GRI Board issued the Amsterdam Declaration in March 2009, in which GRI for the first time actively calls on governments to alter their policies to include requirements for sustainability disclosure from private companies and public bodies, and to endorse the integration of sustainability reporting into the global financial regulatory framework. Organizational Responsibility In 2008, GRI established the Government Advisory Group. This is a high-level advisory group whose function is to provide the GRI Board and the GRI Executive team with a direct source of advice from governments. In addition, the Group functions as a platform to exchange ideas and experiences between the members themselves. It is an informal body that has no constitutional role within GRI, thereby preserving GRI s independence. Governmental Advisory Group meetings are held twice a year. Performance Indicators SO5 Public policy positions and participation in public policy development and lobbying GRI is a neutral organization, which has developed a Sustainability Reporting Framework as a free public good, and as such does not engage in lobbying. 48

51 After GRI was invited by several governments to give them technical briefing on the Guidelines, in 2008, an informal GRI Governmental Advisory Group was created. The group consists of senior governmental officials with strong track records in the field of sustainability reporting. Aspect: Compliance Disclosure on Management Approach Goals and Performance GRI aims to comply with Dutch national law on matters of compliance. Policy The aspect of compliance is not covered by specific written policies. However, the Secretariat is bound by Dutch national law. Organizational Responsibility The GRI Operations department is responsible for ensuring that GRI complies with Dutch national legislation. Performance Indicators SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations There were no fines or non-monetary sanctions during the reporting period. Product Responsibility Disclosures GRI considers the aspects Customer Health and Safety, Product and Service Labeling, Marketing Communications and Compliance not to be material given the very limited direct impact of GRI s outputs and processes. Aspect: Customer Privacy Disclosure on Management Approach Policy GRI has a Privacy Policy which relates to the collection of personal data of newsletter subscribers, e-shop customers, registered reporters, stakeholders who provide feedback on GRI projects, as well as other persons registered on the GRI website for various reasons. This policy is available on the GRI website: globalreporting.org/home/privacy The GRI Operations Department is responsible for ensuring that GRI complies with Dutch national legislation on privacy issues. Performance Indicators PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data The GRI Secretariat has not identified or received any substantiated complaints regarding breaches of customer privacy and loss of customer data. 49

52 GRI Content Index 3.12 Table identifying the location of the Standard Disclosures in the report Strategy and Profile Disclosures Covered Page nr. 1 Strategy and Analysis Strategy and Analysis Description of key impacts, risks, and opportunities Organizational Profile Name of the organization Primary brands, products, and/or services Operational structure of the organization, including main divisions, operating companies, + 13 subsidiaries, and joint ventures 2.4 Location of organization s headquarters Number of countries where the organization operates, and names of countries with either + 13 major operations or that are specifically relevant to the sustainability issues covered in the report 2.6 Nature of ownership and legal form Markets served (including geographic breakdown, sectors served, and types of customers/ + 14 beneficiaries) 2.8 Scale of the reporting organization Significant changes during the reporting period regarding size, structure, or ownership Awards received in the reporting period Report parameters 16 Report Profile Reporting period (e.g., fiscal/calendar year) for information provided Date of most recent previous report (if any) Reporting cycle (annual, biennial, etc.) Contact points for questions + 17 Report Scope and Boundary Process for defining report content Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, + 18 suppliers) 3.7 Specific limitations on the scope or boundary or the report Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and + 18 other entities that can significantly affect comparability from period to period and/or between organizations 3.9 Data measurement techniques and the bases of calculations, including assumptions and + 18 techniques underlying estimations applied to the compilation of the Indicators and other information in the report 3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and + 18 the reasons for such re-statement (e.g., mergers/acquisitions, change of base years/periods, nature of business, measurement methods) 3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report + 18 GRI Content Index Table identifying the location of the Standard Disclosures in the report

53 Assurance Policy and current practice with regard to seeking external assurance for the report. If not included in the assurance report accompanying the sustainability report, explain the scope and basis or any external assurance provided. Also explain the relationship between the reporting organization and the assurance provider(s) Governance, Commitments, and Engagement 20 Governance Governance structure of the organization, including committees under the highest governance + 22 body responsible for specific tasks, such s setting strategy or organizational oversight 4.2 Indicate whether Chair of the highest governance body is also an executive officer (and, if so, + 22 their function within the organization s management and the reasons for this arrangement). 4.3 For organizations that have a unitary board structure, state the number of members of the + 22 highest governance body that are independent and/or non-executive members 4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the + 23 highest governance body 4.5 Linkage between compensation for members of the highest governance body, senior + 23 managers, and executives (including departure arrangements), and the organization s performance (including social and environmental performance) 4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided Process for determining the qualifications and expertise of the members of the highest + 23 governance body for guiding the organization s strategy on economic, environmental, and social topics 4.8 Internally developed statements of mission or values, codes if conduct, and principles relevant + 23 to economic, environmental, and social performance and the status of their implementation 4.9 Procedures of the highest governance body for overseeing the organization s identification + 24 and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles 4.10 Processes for evaluating the highest governance body s own performance, particularly with respect to economic, environmental, and social performance + 25 Commitments to External Initiatives 4.11 Explanations of whether and how the precautionary approach or principle is addressed by the + 25 organization 4.12 Externally developed economic, environmental, and social charts, principles, or other initiatives + 25 to which the organization subscribes or endorses 4.13 Memberships in associations (such as industry associations) and/or national/international advocacy in relevant organizations + 26 Stakeholder Engagement List of stakeholder groups engaged by the organization Basis for identification and selection of stakeholders with whom to engage Approaches to stakeholder engagement, including frequency of engagement by type and by + 26 stakeholder group 4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting

54 Performance Indicators 5. Management Approach & Performance Indicators 28 Economic Performance Indicators 29 Indicator type Covered Reasons for omission Page nr. Aspect: Economic Performance Disclosure of Management Approach 29 EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments. Core + 29 EC2 Financial implications and other risks and opportunities for the organization s activities due to climate change. EC3 Coverage of the organization s defined benefit plan obligations. Core + * No significant financial implications were identified. Core + 32 EC4 Significant financial assistance received from government. Core + 32 Aspect: Market Presence Disclosure of Management Approach 32 EC6 Policy, practices, and proportion of spending on locallybased suppliers at significant locations of operation. EC7 Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation. Core + 33 Core + 33 Aspect: Indirect Economic Impacts EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement. Core - * This indicator is intended for major public infrastructure that can have a noticeable economic or community impact. This does not apply to GRI. Key: + = covered - = not covered * If any of the 9 questions of the materiality test was positive, an indicator was selected to be reported on during the reporting process. This was not the case for this indicator and it was also not suggested for inclusion after applying the Sustainability Context Principle and the Completeness Principle. ** GRI considered this comment necessary even after deciding not to report on SO1. 52

55 Environmental Performance Indicators 34 Indicator type Covered Reasons for omission Page nr. Aspect: Materials Disclosure of Management Approach 34 EN1 Materials used by weight or volume. Core - * As a small office, GRI did not consider the weight and volume of used material as generating significant environmental impact. EN2 Percentage of materials used that are recycled input materials. Core + 35 Aspect: Energy Disclosure of Management Approach 36 EN3 Direct energy consumption by primary energy source. Core - * GRI does not use primary energy sources. EN4 Indirect energy consumption by primary source. Core + 36 Aspect: Water EN8 Total water withdrawal by source. Core - * The water source for the GRI office is a public service and the total volume withdrawn does not represent significant environmental impact. Aspect: Biodiversity EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas. EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas. Core - * GRI does not own or lease land. Core - * The activities of GRI do not directly impact protected areas of biodiversity. Key: + = covered - = not covered * If any of the 9 questions of the materiality test was positive, an indicator was selected to be reported on during the reporting process. This was not the case for this indicator and it was also not suggested for inclusion after applying the Sustainability Context Principle and the Completeness Principle. ** GRI considered this comment necessary even after deciding not to report on SO1. 53

56 Aspect: Emissions, Effluents, and Waste Disclosure of Management Approach 37 EN16 Total direct and indirect greenhouse gas emissions by Core + 37 weight. EN17 Other relevant indirect greenhouse gas emissions by Core + 38 weight. EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved Additional + 39 EN19 Emissions of ozone-depleting substances by weight. Core - * The activities of GRI do not contribute to such emissions. EN20 NOx, SOx, and other significant air emissions by type and weight. Core - * No emissions of regulated pollutants. EN21 Total water discharge by quality and destination. Core - * All water discharge comes from household facilities only and is an insignificant volume. EN22 Total weight of waste by type and disposal method. Core - * Volumes do not represent a significant impact. EN23 Total number and volume of significant spills. Core - * GRI does not produce chemicals or other hazardous liquid substances. Aspect: Products and Services Disclosure of Management Approach 39 EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation. EN27 Percentage of products sold and their packaging materials that are reclaimed by category. Core + 39 Core - * GRI s products do not have reclaimable packaging materials. Aspect: Compliance Disclosure of Management Approach 40 EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations. Core + 40 Key: + = covered - = not covered * If any of the 9 questions of the materiality test was positive, an indicator was selected to be reported on during the reporting process. This was not the case for this indicator and it was also not suggested for inclusion after applying the Sustainability Context Principle and the Completeness Principle. ** GRI considered this comment necessary even after deciding not to report on SO1. 54

57 Aspect: Transport Disclosure of Management Approach 40 EN29 Significant environmental impacts of transporting products and other goods and materials used for the organization s operations, and transporting members of the workforce. Additional + 40 Key: + = covered - = not covered * If any of the 9 questions of the materiality test was positive, an indicator was selected to be reported on during the reporting process. This was not the case for this indicator and it was also not suggested for inclusion after applying the Sustainability Context Principle and the Completeness Principle. ** GRI considered this comment necessary even after deciding not to report on SO1. 55

58 Social Performance Indicators: Labor Practices and Decent Work 41 Indicator type Covered Reasons for omission Page nr. Aspect: Employment Disclosure of Management Approach + 41 LA1 Total workforce by employment type, employment contract, and region. LA2 Total number and rate of employee turnover by age group, gender, and region. LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations. Core + 41 Core + 42 Additional + 42 Aspect: Labor/Management Relations Disclosure of Management Approach + 42 LA4 Percentage of employees covered. Core - * As a small administrative operation, the staff members of the GRI secretariat are covered by regular Dutch labor regulations. No collective agreements apply. LA5 Minimum of notice period(s) regarding significant operational changes, including whether it is specified in collective agreements. Core + 43 Aspect: Occupational Health and Safety Disclosure of Management Approach + 43 LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities by region. LA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious disease. Core + 44 Core + 44 Key: + = covered - = not covered * If any of the 9 questions of the materiality test was positive, an indicator was selected to be reported on during the reporting process. This was not the case for this indicator and it was also not suggested for inclusion after applying the Sustainability Context Principle and the Completeness Principle. ** GRI considered this comment necessary even after deciding not to report on SO1. 56

59 Aspect: Training and Education Disclosure of Management Approach + 44 LA10 Average hours of training per year per employee category Core + 44 LA12 Percentage of employees receiving regular performance and career development reviews Additional + 45 Aspect: Diversity and Equal Opportunity Disclosure of Management Approach + 45 LA13 Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity LA14 Ratio of basic salary of men to women by employment category Core + 45 Core + 47 Key: + = covered - = not covered * If any of the 9 questions of the materiality test was positive, an indicator was selected to be reported on during the reporting process. This was not the case for this indicator and it was also not suggested for inclusion after applying the Sustainability Context Principle and the Completeness Principle. ** GRI considered this comment necessary even after deciding not to report on SO1. 57

60 Social Performance Indicators: Human Rights 47 Indicator type Covered Reasons for omission Page nr. Aspect: Investment and Procurement Practices Disclosure of Management Approach + 47 HR1 Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening. HR2 Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken. Core + * GRI does not make investments. Core + 47 Aspect: Non-discrimination Disclosure of Management Approach + 47 HR4 Total number of incidents of discrimination and actions taken. Core + 47 Aspect: Freedom of Association and Collective Bargaining Disclosure of Management Approach - * The size and type of GRI s operations do not support collective bargaining. HR5 Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights. Core + * The size and type of GRI s operations do not support collective bargaining. Aspect: Child Labor Disclosure of Management Approach HR6 Operations identified as having significant risk for incidents of child labor, and measures taken to contribute to the elimination of child labor. * - GRI s operations do not involve or include operations that could involve child labor. Core + * GRI s operations do not involve or include operations that could involve child labor. Key: + = covered - = not covered * If any of the 9 questions of the materiality test was positive, an indicator was selected to be reported on during the reporting process. This was not the case for this indicator and it was also not suggested for inclusion after applying the Sustainability Context Principle and the Completeness Principle. ** GRI considered this comment necessary even after deciding not to report on SO1. 58

61 Aspect: Forced and Compulsory Labor Disclosure of Management Approach HR7 Operations identified as having significant risk for incidents of forced or compulsory labor, and measures taken to contribute to the elimination of forced or compulsory labor. * - No risk identified given GRI s operations. Core + * No risk identified given GRI s operations. Key: + = covered - = not covered * If any of the 9 questions of the materiality test was positive, an indicator was selected to be reported on during the reporting process. This was not the case for this indicator and it was also not suggested for inclusion after applying the Sustainability Context Principle and the Completeness Principle. ** GRI considered this comment necessary even after deciding not to report on SO1. 59

62 Social Performance Indicators: Society 48 Indicator type Covered Reasons for omission Page nr. Aspect: Community Disclosure of Management Approach + 48 SO1 Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting. Core + * ** This indicator was identified as material during the Materiality test. But the reporting exercise showed that this indicator is not applicable to the GRI being an office based organization. 48 Aspect: Corruption Disclosure of Management Approach + 48 SO2 Percentage and total number of business units analyzed for risks related to corruption. Core - * Given the size and type of GRI s activities, it is not likely to be confronted with bribery. SO3 Percentage of employees trained in organization s anticorruption policies and procedures. Core + 48 SO4 Actions taken in response to incidents of corruption. Core + * No incidents of corruption were identified. Aspect: Public Policy Disclosure of Management Approach + 48 SO5 Public policy positions and participation in public policy development and lobbying. Core + 48 Aspect: Compliance Disclosure of Management Approach + 49 SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations. Core + 49 Key: + = covered - = not covered * If any of the 9 questions of the materiality test was positive, an indicator was selected to be reported on during the reporting process. This was not the case for this indicator and it was also not suggested for inclusion after applying the Sustainability Context Principle and the Completeness Principle. ** GRI considered this comment necessary even after deciding not to report on SO1. 60

63 Social Performance Indicators: Product Responsibility 49 Aspect: Customer Health and Safety Indicator type Disclosure of Management Approach - PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures. Covered Reasons for omission Page nr. * No products or services of GRI are subject to such procedures. Core + * No products or services of GRI are subject to such procedures. Aspect: Product and Service Labeling Disclosure of Management Approach PR3 Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements. - * GRI s products and services do not require labeled information. Core + * GRI s products and services do not require labeled information. Aspect: Marketing Communications Disclosure of Management Approach PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship. - * There are no laws, standards and codes related to marketing communications that GRI has to comply with Core - * There are no laws, standards and codes related to marketing communications that GRI has to comply with Aspect: Customer Privacy Disclosure of Management Approach + 49 PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data. Additional + 49 Key: + = covered - = not covered * If any of the 9 questions of the materiality test was positive, an indicator was selected to be reported on during the reporting process. This was not the case for this indicator and it was also not suggested for inclusion after applying the Sustainability Context Principle and the Completeness Principle. ** GRI considered this comment necessary even after deciding not to report on SO1. 61

64 Aspect: Compliance Disclosure of Management Approach - PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services. Core + * GRI was not fined for noncompliance with laws and regulations Key: + = covered - = not covered * If any of the 9 questions of the materiality test was positive, an indicator was selected to be reported on during the reporting process. This was not the case for this indicator and it was also not suggested for inclusion after applying the Sustainability Context Principle and the Completeness Principle. ** GRI considered this comment necessary even after deciding not to report on SO1. 62

65 Application Level Grid 63

66 ANNEXES 64