Introducing the New UN Global Compact Differentiation Programme: Incentivizing and Recognizing Continual Progress

Transcription

1 Introducing the New UN Global Compact Differentiation Programme: Incentivizing and Recognizing Continual Progress United Nations Global Compact Jerome Lavigne-Delville and Christine Weinreich

2 Introduction to the UN Global Compact: Transparency and Disclosure Communication on Progress (COP): Companies must communicate annually with stakeholders on how they live up to their commitment to mainstream the 10 principles COP policy: a cornerstone of the Global Compact s mission to change business practices through transparency and disclosure Goal: Providing stakeholders with enough information to make educated choices about the companies that they interact with

3 UNGC Differentiation Programme: Goals Drive continuous improvement for companies at all levels of sustainability performance and disclosure. Create a platform for learning by promoting best practices relevant for every level while showcasing companies achievement. Provide relevant tools and resources for business participants at every level of performance. Give business participants recognition for progress made in context of their size, region and industry sector. Provide stakeholders with a platform to independently assess companies progress and enable a robust stakeholder vetting process.

4 UNGC Differentiation Model

5 GC Active Level GC Active: Timely COP, comprising: Chief Executive Letter of Commitment Policies and Procedures in each issue area Human Rights Labour Environment Anti-Corruption Measurement of Outcomes Direct dissemination to key stakeholders is encouraged (not required)

6 Learner s Platform Purpose: To aid small and less experienced companies become GC Active Applies to companies that: Have submitted a timely COP, but Are missing one or more required elements of the GC Active category Benefits: 12 additional months to submit a COP that meets all COP requirements Dedicated communications and training opportunities from the Global Compact Office and their Local Network

7 The Advanced Level GC Advanced: Qualify for GC Active Meet 24 Advanced Criteria in five areas Demonstrate implementation of the processes behind the criteria in their COP Complete a self assessment covering COP content and assessing company coverage of the criteria and associated best practices Confirm each of the 24 criteria has been met

8 The Advanced Level: Criteria Strategy, Governance and Engagement Criterion 1: Conduct C-suite and Board level discussions of strategic aspects of Global Compact implementation Criterion 2: Implement effective decision-making processes and systems of governance for corporate sustainability Criterion 3: Engage with all important stakeholders UN Goals and Issues Criterion 4: Take actions in support of broader UN goals and issues

9 The Advanced Level: Criteria Human Rights (and other issue areas) Implementation Criterion 5: Formulate robust commitments, strategies or policies in the area of human rights Criterion 6: Implement effective management systems to integrate the human rights principles Criterion 7: Implement effective monitoring and evaluation mechanisms of human rights integration Criterion 8: The COP contains standardized performance indicators (including GRI) on human rights

10 The Advanced Level: Criteria Value Chain Implementation Criterion 21: Implement the Global Compact principles in the value chain Transparency and Verification Criterion 22: The COP provides information on the company's profile and context of operation Criterion 23: The COP incorporates high standards of transparency and disclosure Criterion 24: The COP is independently verified by a credible third-party

11 The Advanced Level: A New Way to Measure Progress Each of the 24 criteria has three to seven suggested best practices. Companies are encouraged to implement as many best practices as are relevant, and thus show comprehensive coverage of each criterion.

12 The Advanced Level: Concept and Goals Concept Self-assessment covering content of COPs, with easily comparable responses made available to the public Criteria rooted in Blueprint for Leadership Goals Recognition for advanced corporate sustainability performance and disclosure Roadmap for companies to advance their sustainability agenda Learning platform to identify and share global best practices

13 Differentiation and GRI GRI is used at each level of differentiation to as tool that companies can use to communicate progress more effectively Learners: introduced as a resource (C level reporting) Active: GRI helps companies speak directly to stakeholders Advanced: GC and GRI exploring synergies with the GRI Application levels

14 Engaging Stakeholders Stakeholder vetting is an essential element of the Global Compact Goal: Develop a public platform that enables stakeholders to make educated choices ensure that companies live up to their commitment Through the differentiation programme, the Global Compact Office: Will make information regarding company sustainability more accessible than ever Will actively engage non-business participants to ensure the integrity of the Global Compact Will continue to facilitate dialogue where there is a mismatch between a company s COP and the reality on the ground

15 Analyzing Sustainability Performance in Context The Differentiation Programme allows stakeholders to compare sustainability performance in context. The Differentiation Programme can be used by stakeholders to analyze performance in context, factoring in : Company size and type (ownership) Geography (country/region) Industry sectors Etc.

16 The Advanced Level: How Investors Can Use the Information Broad categorization of companies in terms of sustainability performance and transparency Framework for understanding and analyzing companies sustainability performance, in context of size, industry and geography Easily accessible means to measure variance in the adoption of Best Practices and compare like (or unlike) companies Source of innovation, trends and best practices from the largest and most diverse group of companies committed to sustainability Bringing scale and diversification to sustainability investing by improving sustainability performance and transparency for potentially thousands of companies

17 Questions?