Spotlight on Human Rights Teresa Fogelberg, GRI Deputy Chief Executive 27 October, 2016
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Spotlight on Human Rights GOLD Community Exclusive webinar Today s agenda Introduction Rumyana Taneva, Corporate & Stakeholder Relations Team, GRI (5 min) Presentation Teresa Fogelberg, Deputy Chief Executive, GRI (40 min) Q&A and closing (15 min)
GRI and Human Rights Reporting 1. GRI Standards represent today the most widely used instrument to report on human rights 2. GRI want to emphasize the importance of corporate human rights reporting 3. GRI standards include the alignment with key normative human rights frameworks
GRI Standards launch 19 October Since 2000, GRI s Sustainability Reporting Guidelines have been used by thousands of organizations in more than 90 countries to report publicly about their impacts on the economy, the environment, and society In October 2016, GRI released its first-ever set of GRI Sustainability Reporting Standards The GRI Standards include all the main concepts and disclosures from the G4 Guidelines, but feature a new modular structure and revised format with clear reporting requirements The new structure of the Standards allows them to be updated more easily and makes them even more suitable for referencing in policy initiatives
Summary of new features and improvements compared to G4 New modular structure New format with clearer requirements Content clarifications Greater flexibility and transparency in how to use the Standards Overall editing The Standards are now organized as a set of modular, interrelated standards The new format has clear distinctions between requirements (indicated by shall ), recommendations ( should ) and guidance Key concepts from G4 have been clarified (e.g., defining the topic Boundary, and reporting on topics not covered by the GRI Standards) For organizations preparing a report in accordance with the Standards as well as those using selected Standards to report specific information Content from G4 has been edited for greater clarity and simpler language 6
Human Rights Reporting GRI Standards are fully aligned with key (Human Rights) normative frameworks: UN Guiding Principles on Business and Human Rights UN Global Compact OECD MNE Guidelines ILO Conventions Universal Declaration of Human Rights
The 2030 Agenda SDGs through Human Rights Lense
Key Human Rights Normative Framework UN Guiding Principles on Business and Human Rights (UNGP) 3 pillars: Protect - State Respect - Business Remedy - State & Buzz Due diligence concept
Other Key Human Rights Instruments Framework OECD Guidelines Complaints Mechanism New UN Convention in the making, with company legal liability
Corporate Transparency in the UNGP Principle 3d In meeting their duty to protect, States should ( ) encourage, and where appropriate require, business enterprises to communicate how they address their human rights impacts. Principle 21 In order to account for how they address their human rights impacts, business enterprises should be prepared to communicate this externally, particularly when concerns are raised by or on behalf of affected stakeholders. Business enterprises whose operations or operating contexts pose risks of severe human rights impacts should report formally on how they address them.
Alignment with UNGP Linkage document was published last year to explain the connection and links between the G4 Guidelines and the UNGP To further advance corporate human rights reporting GRI collaborates with the UN Working Group on Business and Human Rights GRI is referenced in the guidance document from the UN Working Group on Business and Human Rights for the elaboration of National Action Plans on Business and Human Rights
G4 alignment with UNGP
Human Rights Disclosures in G4 Aspects outside of the Human Rights Category DISCLOSURES OUTSIDE OF THE HUMAN RIGHTS SUB- CATEGORY IN G4 Disclosures Strategy and Analysis (General Standard Disclosures)* G4-1 Highest Governance Body s Role In Risk Management (General Standard Disclosures)* Employment Occupational Health and Safety Diversity and Equal Opportunity Equal Remuneration for Women and Men Supplier Assessment for Labor Practices* Labor Practices Grievance Mechanisms* Local Communities Supplier Assessment for Impacts on Society* Grievance Mechanisms for Impacts on Society* Customer Health and Safety Supplier Environmental Assessment* Environmental Grievance Mechanisms* Indicator G4-45 G4-46 G4-47 G4-LA1 G4-LA5 G4-LA6 G4-LA7 G4-LA8 G4-LA12 G4-LA13 G4-LA14 G4-LA15 G4-LA16 G4-SO1 G4-SO2 G4-SO9 G4-SO10 G4-SO11 G4-PR1 G4-PR2 G4-EN32 G4-EN33 G4-EN34 *G4 Disclosures that reference the UNGP
Human Rights Disclosures in GRI Standards 12 disclosures related specifically to Human Rights 20+ disclosures related to labor conditions, employment, local communities, education, environment
Human Rights Disclosures (Mapping G4 to the GRI Standards) ASPECTS WITHIN THE HUMAN RIGHTS SUB-CATEGORY IN G4 Investment Disclosures Non-discrimination Freedom of Association and Collective Bargaining Child Labor Forced or Compulsory Labor Security Practices Indigenous Rights Assessment* Supplier Human Rights Assessment* Human Rights Grievance Mechanisms* Indicator GRI Standard Number Type of change G4-HR1 GRI 412 No revision G4-HR2 G4-HR3 GRI 406 No revision G4-HR4 GRI 407 Revised disclosure G4-HR5 GRI 408 No revision G4-HR6 GRI 409 No revision G4-HR7 GRI 410 No revision G4-HR8 GRI 411 No revision G4-HR9 GRI 412 No revision G4-HR10 GRI 414 Revised disclosure G4-HR11 GRI 414 Revised disclosure G4-HR12 GRI 103 Revised disclosure
Human Rights Partnerships Research, Policy, Advocacy & Alignment Danish Institute Human Rights Vincular, Valparaiso Univeristy International Organization of Employers (IOE) Shift ILO
National Action Plans on B&HR GRI participates in consultations on NAP (US NAP on Responsible Business Conduct; Revision of UK NAP; Colombian NAP) Countries that have published a NAP: UK, The Netherlands, Denmark, Finland, Lithuania, Sweden, Norway All NAP highlight the importance of corporate reporting, with Denmark, Finland, Sweden, and Norway explicitly referencing GRI Countries in the process of developing a NAP: Argentina, Azerbaijan, Belgium, Chile, Colombia, France, Germany, Guatemala, Greece, Indonesia, Ireland, Italy, Jordan, Latvia, Malaysia, Mauritius, Mexico, Mozambique, Myanmar, The Philippines, Portugal, Slovenia, Spain, Switzerland, USA
GRI engagements on NAPs Governments in the process of developing a NAP on Business and Human Rights EU Special Representative, Stavros Lambrinidis, on the EU activities to promote the development of NAP. Danish Institute on Human Rights and the International Corporate Accountability Roundtable (ICAR) UN Working Group on Business and Human Rights Business and Human Rights Resource Center
GRI and the UNGP Reporting Framework Common vision of the importance and need for corporate human rights reporting MOU + Joint Statement between RAFI and GRI Future collaboration will focus on providing practical guidance for companies on the implementation and compatibility of G4 and the UNGP RF
Unveiling uptake: Disclosures on Corporate Human Rights Performance using G4
Objectives I. Identify trends in corporate human rights performance disclosures in the following sectors: Mining & Metals Energy Financial Services II. Determine the consistency and coherence of what companies say they disclose in their content index and what they actually disclose, to identify gaps in reporting and best practices in managing human rights issues in each sector
Methodology Selection Criteria: GRI-G4 declared reports Published during 2015 in the GRI Disclosure Database Energy Mining Financial Services Africa 1 11 3 Asia 36 11 68 Europe 46 14 99 Latin America & the Carribean 38 20 61 North America 9 15 14 Oceania 4 4 9 Total 135 76 254
Methodology Level 1 Analysis: GRI Content Index of 465 reports analysed: Level 2 Analysis: 10 reports from each sector analysed in-depth:
Global Reporting Trends on Human Rights 50% 45% Reporting on Human Rights with G4 40% % of companies fully reporting 35% 30% 25% 20% 15% 10% 5% 45% 33% 32% 32% 31% 29% 25% 22% 21% 20% 18% 17% 0% HR3 Non-discrimination HR4 Freedom of Association and Collective Bargaining HR5 Child Labor HR10* Supplier Human Rights Assessment HR6 Forced or Compulsory Labor HR12* Human Rights Grievance Mechanisms HR2 Investment HR11* Supplier Human Rights Assessment HR1 Investment HR9* Assessment HR7 Security Practices HR8 Indigenous Rights * G4 Disclosures that reference the UNGP Aspects in G4 Human Rights Subcategory 1400+ G4 reports analyzed Source: GRI Sustainability Disclosure Database, Aug 2015
Reporting on Materiality and Human Rights
Do companies identify human rights as a material issue? All 10 companies analysed identify Human Rights as a material issue 7 of the companies analysed identify Human Rights as a material issue 96% of the companies report G4-19 (N = 465) 8 of the companies analysed identify Human Rights as a material issue N = 30 (10 companies in each sector)
Reporting on Human Rights Aspects and Indicators
Do companies report on the management of human rights issues? 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Disclosure on Management Approach Mining Energy Financial Services N = 76 N = 135 N = 254
Do companies report on the management of human rights issues? How are companies reporting on management of human rights? Reference to the UN Guiding Principles (UNGP) 7 5 5 Reference to a Due Diligence process (in line with the UNGP) 7 5 4 1 0 0 Reference to Human Rights Policy (publicly available) 7 5 5 N = 30 (10 companies in each sector)
Do companies report specific human rights indicators? 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Mining Energy Financial Services N = 76 N = 135 N = 254
Reporting on the Supply Chain
Are companies reporting on supply chain management? 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Disclosure on Management Approach 0% Human Rights Labour Practices Impacts on Society Environmental Mining Energy Financial Services N = 76 N = 135 N = 254
Are companies reporting on supplier screening related to sustainability issues? 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Human Rights (HR10) Labour Practices (LA14) Impacts on Society (SO9) Environmental (EN32) Mining Energy Financial Services N = 76 N = 135 N = 254
Are companies reporting on impacts in the supply chain? 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Human Rights (HR10) Labour Practices (LA14) Impacts on Society (SO9) Environmental (EN32) Mining Energy Financial Services N = 76 N = 135 N = 254
Q&A
Upcoming webinars Topic Forging the path towards integrated reporting Date October 31 at 9.30 AM CET G4 Forefront 'Transition to Standards' & Standards Pioneers 'Kick-off' Session A la Vanguardia con G4 Sesión 5 - De conformidad y transición a un Estandar November 8 at 9 AM and 4.30 PM CET November 9 at 4.30 PM CET Register via the GOLD Community private pages or get in touch with us and we will share the registration links Recordings from past webinars can be found on private pages
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