Formalize Corporate Social Responsibility Information Disclosure System and Improve Transparency (also through the supply chain reporting practices)

Transcription

1 Formalize Corporate Social Responsibility Information Disclosure System and Improve Transparency (also through the supply chain reporting practices) Dr. Nelmara Arbex, Deputy Chief Executive, Guidance, Support and Innovations area

2 Global Reporting Initiative

3 GRI: a network organization *Business Academia *Mediating institutions *Civil Society Governments *Labor *Financial markets

4 The sustainability challenge How can business be profitable and contribute to solutions at the same time?

5 Managing change What you can t measure, you cannot manage. What you can t manage, you cannot change. Peter Drucker Writer, professor and management consultant

6 GRI Sustainability Reporting Guidelines and the Sector Supplements!

7 GRI CRESS webinar, February 2011 GRI G3 Guidelines Map The G3 Guidelines Profile Principles Standard Disclosures Economic Content Reliability, Accuracy, Timeliness, Strategy and Analysis Clarity, Comparability, Balance Quality Boundary Disclosure Items Organizational Profile Materiality Stakeholder Inclusiveness Completeness Sustainability Context Report parameters Governance, Commitments and Engagements Disclosure on Management Approach and Performance Indicators Environmental Social Labor Human Right Society Product Responsibilit

8 A sustainability reporting is about understanding the link between business everyday activities and the world around it about measuring the activities impacts about communicating what the organization has learned about its impacts

9 How the GRI network does it? Through a Due Process! BoD WG SC + TAC BoD Public Comment Period Public Comment Period

10 Are companies using GRI guidance (G3 and G3.1)?

11 Different sources Bloomberg projects that over 4500 reports are based on GRI Guidelines KPMG last International Survey on Corporate Sustainability Reporting : 80% of G250 and 69% of N100 (3400 companies) use the GRI Guidelines

12 GRI reports identified by GRI * *Sustainability Disclosure Database data from 1 February 2012

13 How the future of sustainability reporting should be? Shaping G4

14 Future reporting context Demand for sustainability performance information is increasing Metrics is not harmonized Lack of technical precision - leads to high reporting and verification costs Most reports lack material focus Information in pdf of other unfriendly formats Sustainability and financial reporting information together Supply Chain disclosure

15 G4 objectives Make reporting easier Offer technically robust instructions Result in more focused reports Offer digital platform

16 G4 timeline MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN Launch May 2013!!! Text Revision / Editing Task Force Preparatory Stage Public Comment Period 1 Working Groups Formed Working Groups Meet Public Comment Period 2 Working Groups Meet Governance Bodies give Final Vote Final Edit LAUNCH MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN

17 G4 SIX main work streams 1. Technical standardization Editing Task Force 2. Profound revision of parts of G3(G3.1) or new content proposals WG 3. Harmonization (and references updating) Secretariat and TAC 4. G4 online 5. XBRL GRI Taxonomy for G4 6. Sector guidance in G4

18 G4 SIX main work streams 1. Technical standardization Editing Task Force 2. Profound revision of parts of G3(G3.1) or new content proposals WG 3. Harmonization (and references updating) Secretariat and TAC 4. G4 online 5. XBRL GRI Taxonomy for G4 6. Sector guidance in G4

19 Profound revision of parts of G3(G3.1) or new content proposal - WG Disclosure on management approach Governance Boundary Application Levels Supply Chain Updates: Biodiversity, GHG, H&S, Corruption and five others

20 Profound revision of parts of G3(G3.1) or new content proposal - WG Disclosure on management approach Governance Boundary Application Levels Supply Chain Updates: Biodiversity, GHG, H&S, Corruption and five others

21 Global Supply Chain trends Growing pressure on supply chain leaders to Manage sustainability in their global supply chains Improve sustainability in their supply chains Communicate their efforts to stakeholders Growing pressure on suppliers To comply to complex sustainability standards Communicate compliance in a reliable way Both sides have to stay competitive!

22 GRI SME Programs: 100+ Reports

23 China can shape the next GRI Sustainability Reporting Guidelines G4! The public consultation period goes from 20 th June till 20 th September Get involved! Talk to Kaying at

24 To know more about G4 developments, go to GRI s website and read the newsletter!