A Common Framework for Sustainability Reporting

The Global Context for CSR

Sustainability in the focus: The Brundtland Report
of 1987:

“Development that meets the needs

of the present without compromising
the ability of future generations to
meet their own needs”

– Globalisation: Global
markets>global
accountability>global standards

– Accountability: from
financial to social issues of jobs,
retirement security, social impacts…
Enron, Anderson, …..

– Value drivers—intangible assets dominate

value creation and value loss

– Capital Markets: rethinking rules of governance and disclosure—

US, France, South Africa, Hong Kong, Brazil

CSR: RBD/SBD (Sustainable Banking/SRI..)based on TBL/PPP (Triple Bottom

Line/ People, planet & profit) concept

- Foster sustainable economic development

- Improve the quality of life of stakeholders

- The link between people, planet and prosperity

- Accountability and legitimate expectations fr stakeholders

Emerging Global TBL Architecture

CSR Reporting
 There is one standard reporting system for corporate sustainability
reports and many non-standard approaches, the Global Reporting
Initiative
 GRI is an outgrowth of the CERES sustainability reporting format

What is it?
 Global Reporting Initiative (GRI) is a network-based organization that
has pioneered the development of the world’s most widely used
sustainability reporting framework and is committed to its continuous
improvement and application worldwide.
 In order to ensure the highest degree of technical quality, credibility,
and relevance, the reporting framework is developed through a
consensus-seeking process with participants drawn globally from
business, civil society, labor, and professional institutions.
 A multi-stakeholder process and independent institution, mission is
to develop and disseminate globally applicable Sustainability
Reporting Guidelines.
 Guidelines are for voluntary use by for organizations reporting on the
economic, environmental, and social dimensions of their activities,
products, and services.

Regulatory and legal framework

Sarbanes-Oxley act
  The GRI incorporates the active participation of representatives from
business, accountancy, investment, environmental, human rights,
research and labor organizations from around the world.
 Started in 1997, GRI became independent in 2002. It is an official
collaborating center of the UNEP and works in cooperation with the
Global Compact.

The Global Reporting Initiative (GRI) produces one of the world's most
prevalent standards for sustainability reporting - also known as ecological
footprint reporting, Environmental Social Governance (ESG) reporting,
Triple Bottom Line (TBL) reporting, Corporate Social Responsibility (CSR)
reporting. Sustainability reporting is a form of value reporting where an
organization publicly communicates their economic, environmental, and
social performance. GRI seeks to make sustainability reporting by all
organizations as routine as, and comparable to, financial reporting.

GRI Guidelines are regarded to be widely used. As of January 2009, more

than 1,500 organizations [1] from 60 countries use the Guidelines to
produce their sustainability reports. (View the world’s reporters at the GRI
Reports database). GRI Guidelines apply to corporate businesses, public
agencies, smaller enterprises, NGOs, industry groups and others. For
municipal governments, they have generally been subsumed by similar
guidelines from the UN ICLEI.

Mission and Vision

 Design and continually improve reporting guidelines reflecting the
three dimensions of sustainability: economic, environmental, and
social
 Elevate corporate sustainability reporting to the same level as
financial reporting
 Build a global and independent institution to steward the Guidelines
Why companies and other organizations do
sustainability reports
Reporting on sustainability performance is an important way for organizations
to manage their impact on sustainable development. The challenges of
sustainable development are many, and it is widely accepted that
organizations have not only a responsibility but also a great ability to exert
positive change on the state of the world’s economy, and environmental and
social conditions.

Reporting leads to improved sustainable development outcomes because it

allows organizations to measure, track, and improve their performance on
specific issues. Organizations are much more likely to effectively manage an
issue that they can measure. By taking a proactive role to collect, analyze, and
report those steps taken by the organization to reduce potential business risk,
companies can remain in control of the message they want delivered to its
shareholders. Public pressure has proven to be a successful method for
promoting Transparency (behavior) and disclosure of greenhouse gas
emissions and social responsibilities.

As well as helping organizations manage their impacts, sustainability reporting

promotes transparency and accountability. This is because an organization
discloses information in the public domain. In doing so, stakeholders (people
affected by or interested in an organization’s operations) can track an
organization’s performance on broad themes – such as environmental
performance - or a particular issue - such as labor conditions in factories.
Performance can be monitored year on year, or can be compared to other
similar organizations.

Why are the GRI the most used guidelines and how
are they created?
"The Global Reporting Initiative is the steward of the most widely used
reporting framework for performance on human rights, labor, environmental,
anti-corruption, and other corporate citizenship issues. The GRI framework is
the most widely used standardized sustainability reporting framework in the
world.”[2] The Guidelines are the most used, credible and trusted framework
largely because of the way they have been created: through a multi-
stakeholder, consensus-seeking approach.
This means that representatives from a broad cross section of society –
business, civil society, labor, accounting, investors, academics, governments,
and others – from all around the world come together and achieve consensus
on what the Guidelines should contain. Having multiple stakeholders ensures
that multiple needs and all stakeholders are considered. This contrasts to what
might happen if, for example, just business representatives, or just NGO
representatives created the guidelines. It is also beneficial as it helps to
increase the chances that all relevant sustainability issues are included, and the
accompanying best measures are developed.
GRI – a global network
􀃖Board of Directors
􀃖Stakeholder Council
􀃖Technical Advisory Committee
􀃖Organizational Stakeholders
􀃖Secretariat
􀃖Reporters
􀃖Reports users
􀃖Issue experts
  In 2006: More than 3,000 individuals and organizations - business,
NGOs, governmental, human rights, specialists, academics, etc.- from
all around the world - to prepare GRI-G3.
 At the World Economic Forum on 31 January 1999, Kofi Annan
challenged business leaders to join an international initiative – the
Global Compact – to bring companies together with UN agencies,
labor and civil society to support universal environmental and social
principles.
 Hundreds of companies from all over the world, labor and civil
society organizations are now engaged in the Global Compact to
advance ten universal principles in the areas of human rights, labor,
the environment and anti-corruption.
 Through the power of collective action, the Global Compact seeks to
promote responsible corporate citizenship so that business can be
part of the solution to the challenges of globalization. In this way, the
private sector – in partnership with other social actors – can help
realize the a vision of a more sustainable and inclusive global
economy.

GRI BASICS
 What? – Sustainability Reporting Guidelines
 Who? – CERES, UNEP, business, government, labour, social,
environmental and accountancy groups.
 How? – multi-stakeholder dialogue
 Where? – more than 50 countries
  When? – started late 1997, independent in 2002

HISTORY
How did the idea of a framework for sustainability reporting develop into the
global action network that is GRI? A brief history details institutional
development, your input, and milestones in the network’s development.

How did the idea of a framework for sustainability reporting develop into the
global action network that is GRI?

1997-1998
 · The idea of a disclosure framework for sustainability information is
conceived;

· The Boston-based non-profit CERES started a “Global Reporting

Initiative” project division and staffing, fundraising and network development
began;

· GRI Steering Committee formed (and runs until 2002);

1999

· UNEP joined as a partner, securing a global platform for GRI;

· Exposure draft of GRI Sustainability Reporting Guidelines released;

· 20 organizations released sustainability reports based on the Guidelines;

2000

GRI’s first Sustainability Reporting Guidelines released;

· Worldwide outreach efforts with events held in South America, North

America, Australia, Europe, South Asia, and Japan;

· 50 organizations released sustainability reports based on the Guidelines;

2001

CERES Board decided to separate GRI as independent institution, as per the

GRI Steering Committee recommendation;

· Institutional development focused on drafting articles of incorporation and

recruiting Board members;

· Structured Feedback Process on the 2000 Guidelines engaged 30 companies,

which resulted in recommendations update the Guidelines;

·80 organizations released sustainability reports based on the Guidelines;

2002

Provisional GRI Board appointed, and announced. Provisional Board met and
elected Judy Henderson as Chair. Steering Committee dissolved;
· GRI Institution was publicly inaugurated at the United Nations in New York
City;

· GRI relocated and incorporated as a Stichting (Foundation) in the

Netherlands. Operations and assets were transferred from CERES;

· The second iteration of Sustainability Reporting Guidelines were released in

Johannesburg, South Africa, at the World Summit for Sustainable
Development;

· Ernst Ligteringen was appointed as Chief Executive of the GRI Secretariat and
as a Member of the GRI Board;

· 150 organizations released sustainability reports based on the Guidelines;

2003

· Board approved Business Plan 2003-2005;

· 60 Stakeholder Council (SC) members appointed. The SC has its first annual
meeting, and Linda Funnel-Milner elected as Chair;

· Structured Feedback Process commenced;

· Organizational Stakeholder (OS) membership program launched

· Sector Supplements completed for Tour Operators (PDF),

Telecommunications (PDF);

· 325 organizations released sustainability reports based on the Guidelines;

2004

· Structured Feedback Process concluded having engaged 450 experts world

wide. Findings were presented to the Board and SC;

·Board approved 2 year plan to develop the next generation of GRI Guidelines;

· 100th Organizational Stakeholder joined the GRI;

· Sector Supplements completed for Mining and Metals (PDF), Financial

Services (PDF);
·500 organizations released sustainability reports based on the Guidelines;

2005

· Technical Advisory Committee (TAC) appointed and met for the first time;

· OS program had 225 Organizational Stakeholders;

·Major technical revisions process commenced and engaged 100 people

worldwide in working groups to produce the third generation of GRI Guidelines
(known as “G3”);

·Boundary Protocol (PDF) Completed;

· Sector Supplements completed for Logistics and Transportation (PDF), Public

Agencies (PDF);

· Board approved Business Plan for 2005-2010;

· 750 organizations released sustainability reports based on the Guidelines;

2006

· Draft G3 Guidelines released for public comment; 270 responses were

received;

·300 partners and sponsors convened “Sneak Peek” events in 28 cities globally,
introducing the draft G3 Guidelines to over 3000 participants;

·Outcomes of engagement and analysis were assessed by GRI’s governance

bodies (Board, Technical Advisory Committee and Stakeholder Council) and
integrated into the final G3, which passes for release by a majority vote;

·850+ organizations released sustainability reports based on the Guidelines;

· Organizational Stakeholders numbered over 330;

· A Technology Partnership was convened with software providers in

anticipation of market demands for digital reporting;

· The research, development, and applied experience with sustainability

reporting generated over nearly a decade culminated at a world-class
conference in Amsterdam that includes the launch of the G3 Guidelines;
2007

· Board approved the GRI Development Plan 2008-2012;

· Resource publications issued include “Reporting the Business Implications of

Climate Change in Sustainability Reports” (PDF) ;"Biodiversity Resource
Document” (PDF) and “Making the Connection” (PDF);

· GRI Readers’ Choice Awards and Survey launched;

· Certified local training program initiated – first call for partners in USA, Brazil
and India;

· “The GRI sustainability reporting cycle: A handbook for small and not-so-small
organizations” published in English, Spanish, Brazilian Portuguese, German and
Portuguese;

· The world’s first aggregated sustainability report issued by Valle de Maipo

Chilean Fruit Company;

· GRI/GTZ Transparency in the Supply Chain project;

· Sector Supplements for the airports, food processing and NGO sectors all
initiated;

· Piloting of the Financial Services Sector Supplement takes place;

· Working groups and drafting of the Apparel & Footwear and the Electric
Utilities Sector Supplements continue; and

· 470 Organizational Stakeholders based in some 50 countries.

2008

·2nd Amsterdam Global Conference on Sustainability and Transparency

attracts over 1000 international delegates

·First ever Readers' Choice Awards and Readers' Survey give a voice to the
readers of sustainability reports

·The triennieal KPMG International Survey of Corporate Responsibility

Reporting reveals that reporting has become the norm for large companies
globally and that most reporters use the GRI Guidelines
·The Financial Services Sector Supplement was launched

· The Global Action Network for Transparency in the Supply Chain is

established based on the success of the GRI/GTZ Supply Chain Project

·GRI partners with Realizing Rights:The Ethical Globalization Initiative, and the
UN Global Compact to develop better guidance for human rights reporting

·GRI convenes a working group to review guidance on how to determine

sustainability report content and materiality

·First GRI Training Partners certified in several countries

·Sector Supplements initiated for the Airports and Construction & Real Estate
sectors

·GRI establishes Governmental Advisory Group - a high-level advisory group to

provide the GRI Board, the GRI Chief Executive and the members themselves
with ideas, information and questions from the government sector.

·507 Organizational Stakeholders from 55 different countries

2009

· GRI Board issues the Amsterdam Declaration on Transparency and Reporting,

calling on governments to require ESG disclosure from companies.

ALLIANCES
GRI is a collaborating centre of: The UN Environment Programme

The GRI guidelines have synergies with: The UN Global Compact; The Earth
Charter Initiative

GRI Network Structure

The Global Reporting Initiative (GRI) is a large multi-stakeholder network of
thousands of experts, in dozens of countries worldwide, who participate in
GRI’s working groups and governance bodies, use the GRI Guidelines to report,
access information in GRI-based reports, or contribute to develop the
Reporting Framework in other ways – both formally and informally.
GOVERNANCE BODIES
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.

BOARD OF DIRECTORS

The GRI's 16 member Board of Directors has the ultimate fiduciary, financial
and legal responsibility for the GRI, including final decision making authority on
GRI Guidelines revisions, organizational strategy, and work plans.

Stakeholder Council

The Stakeholder Council (SC) is GRI’s formal stakeholder policy forum, similar
to a parliament, that debates and deliberates key strategic and policy issues.
The SC meets annually and comprises a balance of stakeholder constituencies
and geographic regions.

The SC’s key governance functions include approving nominations for the
Board of Directors (Board), making strategic recommendations to the Board,
such as future policy or business planning activities. They are also the “eyes
and ears” of the GRI network in their diverse locations and constituencies.

Key supporting functions by individual SC members may include participating

in technical working groups convened by the Secretariat for guidelines
development, advising or actively helping to build the GRI network in their
constituencies or regions.

The Technical Advisory Committee

The Technical Advisory Committee (TAC) provides high-level technical advice
and expertise to the Board of Directors specifically and to the GRI network as a
whole.

Key functions are to recommend direction on the overall architecture of the

GRI Reporting Framework and key issues that emerge specifically around
Guidelines content; ensure technical documents are created under due
process; submit a concur/non-concur recommendation to the Board on
whether to approve drafts of GRI reporting documents for release.

The members were each selected for their demonstrated technical expertise
in an area linked to reporting and disclosure.

Secretariat

Implementation hub: implements governance body directives; coordinates

international network. Did you know? At last count, 31 languages are spoken
within the GRI Secretariat. Under leadership of the Chief Executive, the
Secretariat implements the technical work plan set by the Board of Directors
and also manages network and institutional communications, outreach,
stakeholder relations, and financial administration. The Secretariat supports
the operations of the Board of Directors, Stakeholder Council and Technical
Advisory Committee.

Advisory Groups

Over the past year, GRI has actively sought to create advisory groups from
different constituencies in society. These advisory groups provide GRI with
important advice to be considered by GRI's governance bodies as they steer
the development of the Reporting Framework and GRI's activities towards its
vision.

To date GRI has formally established the Governmental Advisory Group, but
will also look to establish additional groups when the need arises.

Governmental Advisory Group

The Governmental Advisory Group, established in 2008, 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.

Background

Governments have a clear and direct interest in sustainability reporting.

Widespread sustainability reporting practices can help markets function more
efficiently, by proving material non-financial information, and also help drive
progress by all organizations toward government-agreed sustainable
development goals. Such considerations may explain why heads of state
specifically endorsed the Global Reporting Initiative in the 2002 World Summit
on Sustainable Development Plan of Implementation.

From its creation, GRI’s close association with the UN Environment Programme
(UNEP) ensured that it has contributed to and supported guidance for
international policy objectives. Examples of this support include the GRI
Guidelines’ content references to and basis on several international human
rights, environmental and labor treaties, standards and conventions, as well as
GRI’s structure as a multi stakeholder working partnership between business
and civil society organizations. In addition, GRI collaborates closely through
formal alliances and references with international sustainability and CSR
instruments such as UNEP, the UN Global Compact, the OECD Guidelines,
UNCTAD and others

While intent on retaining its independent status, the time has come for GRI to
deepen its contact with governments. This will help GRI to better understand
national government’s perspectives on their role in corporate social
responsibility (CSR), while governments can benefit from a more detailed
knowledge of GRI’s challenges and achievements.

Mandate

The Governmental Advisory Group will provide informal high-level feedback

and advice to GRI.

In fulfilling this function, the Governmental Advisory Group may:

·seek and receive information regarding all relevant aspects of GRI’s
structure and operations;

·act as a ‘sounding board’ for GRI in response to questions it may have;

·suggest ways of increasing GRI uptake by public agencies;

·members will exchange best practices and mutual advice amongst

themselves, and as such also serve as mutual information, coordination and
brainstorm platform

· offer advice on how GRI might better achieve its objectives

To ensure transparency, the GRI Board Chair and/or the GRI Chief Executive
will provide briefings as required to GRI governance bodies (i.e. the Board,
Stakeholder Council, and Technical Advisory Committee) on the Governmental
Advisory Group’s activities.

Composition

The Group will be comprised of up to 15 people drawn from governmental

organizations. To ensure breadth of perspective, where possible it will include
representatives from ministries and agencies with a direct interest in
sustainability and CSR issues. These will include organizations such as
ministries of foreign affairs, labor affairs, economic affairs, environment, and
parliamentary bodies, the European Union and intergovernmental
organizations.

Concerning the geographical composition of the group, GRI is striving to recruit

representatives from both OECD and non-OECD countries. The GRI Chief
Executive and/or Deputy Chief Executive participate on an ex-officio basis. In
addition, the Chair of the GRI Stakeholder Council will attend the Group
meetings.

Membership

Membership is by invitation and is accepted on a voluntary basis. Members will

be invited to join the Group on the basis of their experience, track record of
leadership, and ability to bring independent and innovative thinking to the
table. Arrangements will be made to ensure that there is some continuity of
membership between outgoing and incoming members. Unless otherwise
stated, questions, comments and other input will not be taken to reflect official
government positions.

Organizational Stakeholders

Organizational Stakeholders are a central source of legitimacy for GRI, they

play a key governance role in sustaining GRI as an open, democratic and global
network, and in supporting the ongoing development of a high quality
Reporting Framework.Key OS benefits include eligibility to vote for members of
the Stakeholder Council (SC) that approves nominations for, and makes
strategic recommendations to the Board of Directors (BoD), special access to
the GRI network, a variety of opportunities for promotion and recognition, and
discounts on GRI products and services.

Focal Points

The Regional Network Program

Purpose of Regional Network Program (RNP)

The Regional Network Program has been created to respond to the increasing
demand of national organizations to engage and share their experiences and
best practices on sustainability reporting with GRI. In the past, the Secretariat
has mainly collaborated through ad hoc engagements (Memoranda of
Understandings-MoUs) with strategically relevant partners. Since inception,
the RNP has created ongoing collaboration schemes for GRI’s representation in
different countries that are essential to reach GRI’s organizational objectives
for different regions, namely to:

1. Maintain and increase stakeholder engagement and outreach at both

national and regional level:

• Bring together regional stakeholders in order to engage them with GRI and
furthermore participate and share their expertise in the global feedback
processes

• Continuously improve the usefulness and quality of the GRI Reporting

Framework, as well as the application of the Reporting Framework and ESG
reporting for report writers and users
2. Create national, regional and local ownership of the GRI Reporting
Framework

3. Stimulate harmonization with existing (national) reporting standards and

sustainability initiatives

4. Coordinate and cultivate relationships with reporting communities and

strategic corporate, public and NGO partners

5. Drive global change towards a sustainable transparent economy through

the GRI network

Ultimately, as with the GRI’s global operation, GRI’s regional representatives

will similarly build a long-term sustainable business model for activities in the
different regions.

Projects of the RNP

I. Focal Points

There are several ways GRI engages with different regions. Since 2007, GRI has
established ‘Focal Points’. A Focal Point can either (1) be hosted by another
organization whose purpose is in line with that of GRI, or (2) be established as
an independent office. Depending on the strategic weighing of the region, GRI
may decide to set up an independent legal entity for the Focal Point in order to
keep its full structural independence. The Focal Point acts as an integral part of
GRI and fully coordinates its actions with the Secretariat.

Focal Points initially depend on external funding from a combination of

sources:

(1) Public / Government grants

(2) Private entity sponsorships

(3) Self-generated revenues from workshops and additional services provided

to local stakeholders over time also play an increasing role in the overall
operational budget of the Focal Point

The Focal Point’s value is clearly demonstrated through local expertise and
knowledge that is presented to stakeholders in a variety of ways such as:
• Using national case studies

• Recognizing the national ESG reporting priorities, challenges and

regulations

• Understanding the local market

• Communicating in the national language.

Following the successful pilot project in Brazil in 2007, in collaboration with the
Ethos Institute in São Paulo, the initiative was extended to Australia through St
James Ethics Centre in 2008. In 2009, two additional Focal Points were founded
in India and China and we are exploring further steps in other regions including
the United States.

FUNDING

The Global Reporting Initiative (GRI) is a registered not-for-profit organization

located in Amsterdam, the Netherlands. It relies on the financial and in-kind
support of generous contributors from the network who ensure that GRI can
deliver its programs and products.

Our vision of a better future is only as strong as the people who support us.
Contact GRI to discuss how you can support the GRI network and mission.

There are many ways that you can get involved with GRI and help our mission
to make our planet more sustainable.

·Your organization or you, as an individual, can become an Organizational

Stakeholder.
·You can help us by providing financial support to our general work, or to a
specific project or event.

·You can help GRI through in kind support.

Who supports GRI?

GRI is supported by its global network in the following ways:

·Support from a large international community of Organizational Stakeholders

·Institutional grants from governments, foundations and international

organizations

·Corporate and governmental sponsorships and in kind support for projects

and events

·Provision of learning and other services

Organizational Stakeholders

Organizational Stakeholders provide an essential funding base that ensures GRI

continues to progress towards its mission. Sincere thanks to our many hundred
OS participants who provide such valuable support.

Institutional Support

GRI currently receives institutional support from the Netherlands Ministry of

Foreign Affairs, the International Finance Corporation (IFC), the Netherlands
Ministry of Housing, Spatial Planning, and the Environment (VROM) the
Swedish International Development Cooperation Agency (SIDA) and the
Norwegian Ministry of Foreign Affairs (MFA). We thank our institutional donors
for their support.

Past support includes: European Commission, Charles Stewart Mott

Foundation, UN Foundation, World Bank, John D. and Catherine T. MacArthur
Foundation, Ford Foundation, Bill and Melinda Gates Foundation, Rockefeller
Brothers Fund, Spencer T. and Ann W. Olin Foundation, United States
Environment Protection Agency, V. Kann Rasmussen Foundation, the Soros
Foundation, and governmental bodies from the United Kingdom, Sweden,
Norway, Germany, and Australia.
Project Grants

To continually improve the content of the framework GRI sets up technical

projects, such as Guidelines revision projects, and Sector Supplements. To
respond to pre-existing challenges, GRI runs initiatives and projects that
proactively create thought leadership on particular issues. As a network
organization GRI also organizes events all over the world to acquaint people
with the GRI Guidelines. Each two years GRI organizes the ‘Amsterdam Global
Conference on Sustainability and Transparency’, which has developed into the
most important network meeting in the field of sustainability reporting
worldwide.

All GRI projects and events are funded by a diverse range of donors from both
businesses and governments alike. Contact GRI to discuss in which way your
organizations can participate as a sponsor in GRI projects or events.

In kind support

In kind support plays a vital role in assisting GRI in achieving its mission.
Contact GRI to discuss in which way your organization can help GRI through in
kind support.

GRI would like to thank the following organization for their in kind support
towards the development of the GRI portal.
GRI: Network Organization
What are the GRI Guidelines?
The Framework consists of:
Guidelines:
• Principles for defining report content and ensuring quality
• Profile Disclosure
• Disclosures on Management Approach
• Performance Indicators and Protocols

GRI Guidelines Uptake Over Time

1000
900
800
700
600
500
400
300
GRI Reporters

200
100
0
1999 2000 2001 2002 2003 2004 2005 2006 2007

KEY FEATURES OF THE GUIDELINES

 Multi-stakeholder
 Tested and revised
 Standardized
 Applied
 Voluntary
 Evolving
 2002 Sustainability Reporting Guidelines The Guidelines represent the
foundation upon which all other GRI reporting documents are based, and
outline core content that is broadly relevant to all organizations regardless of
size, sector, or location. All organizations seeking to report using the GRI
framework should use the Guidelines as the basis for their report, supported
by other GRI documents as applicable.

Technical Protocols
To assist users in applying the Guidelines, GRI is developing technical
protocols on indicator measurement. Each protocol addresses a specific
indicator (e.g., energy use, child labour) by providing detailed definitions,
procedures, formulae and references to ensure consistency across reports.
Over time, most of the indicators in the GRI Guidelines will be supported by a
specific technical protocol.

Sector Supplements
GRI recognizes the limits of a one-size-fits-all approach and the importance
of capturing the unique set of sustainability issues faced by different industry
sectors (e.g., mining, automotive, banking). To address this need, GRI is
developing sector supplements through multi-stakeholder processes for use
with the standard Guidelines. Supplements are intended to add to, but not
replace, the Guidelines. These supplements are at an early stage of
development, but will grow in number and rigor over time.

Status of Sector Supplements

 Ready to use
o Automotive
o Financial Services
o Mining and Metals
o Public Agency
o Tour Operators
o Telecommunications
 In development
 o Apparel and Footwear
o Logistics and Transportation * open for public comment *

Issue Guidance Documents

GRI expects to develop issue-specific guidance documents on topics such as
“diversity” or “productivity” to provide reporting organizations with additional
models for presenting and organizing the information in the Guidelines and
Sector Supplements.

Description of GRI Principles

 form the framework for the report (transparency, inclusiveness,
auditability);
 inform decisions about what to report (completeness, relevance,
sustainability context);
 relate to ensuring quality and reliability (accuracy, neutrality,
comparability); and
 inform decisions about access to the report (clarity, timeliness).

Details of Principles
 The principles of transparency and inclusiveness represent the
starting point for the reporting process and are woven into the fabric
of all the other principles. All decisions about reporting (e.g., how,
when, what) take these two principles and associated practices into
consideration.
 The principles of sustainability context, completeness, and relevance
play the key role in determining what to report. Reports should help
place the organization’s performance in the broader context of
sustainability challenges, risks, and opportunities. The information
contained within the report must meet the test of completeness in
terms of the reporting boundaries (i.e., entities included), scope (i.e.,
aspects or issues reported), and time frame. Lastly, reported
information should be relevant to the decision-making needs of
stakeholders.
 The quality and reliability of the report content are guided by the
principles of neutrality, comparability, and accuracy. Reports should
be comparable over time and across organizations. Information
should be sufficiently accurate and reliable to enable its use for
decision-making purposes. Equally important, the report should
present its content in a balanced and unbiased manner.
 The principles of clarity and timeliness govern the access and
availability of reports. Put simply, stakeholders should receive easily
understood information in a time frame that allows them to use it
effectively.
 Lastly, the principle of auditability relates to several other principles
such as comparability, accuracy, neutrality, and completeness.
Specifically, this principle refers to the ability to demonstrate that the
processes underlying report preparation and information in the
report itself meet standards for quality, reliability, and other similar
expectations.
Declared GRI Reporters by Country

UPTAKE OF GRI - BUSINESS

 Business
o More than 60 companies have already released GRI reports
o 31 companies have joined Structured Feedback Process
o Many commercial ventures making use of Guidelines
Company Industry Headquarters
Agilent Hign tech USA
BASF Chemicals Germany
Baxter International Medical supplies USA
Bayer AG Life sciences/chemicals Germany
British American Tobacco Tobacco products UK
CWS Powder Coatings Chemicals Germany
ESAB Welding supplies Sweden
Ford Motor Company Automobiles USA
Gaz de France Energy utility France
General Motors Automobiles USA
Halliburton Energy services USA
Ito Yokado Retail Japan
Jebsen and Jessen Ind. products/services Singapore
Kirin Brewing Food and beverage Japan
Natura Personal care Brazil
Nike Clothing USA
Panasonic (Matsushita Electric)
 Government Electronics Japan
 o European Union CSR guidelines
o Japanese Environment Agency
o United States EPA “Performance Track”
o Australian, British, French activities
o Other groups

Examples of Organizations using the GRI Guidelines

 Alcan

 Bank of Montreal

 Bank of Nova Scotia

 BC Hydro

 Greater Vancouver Regional District

 Hydro Québec

 IISD

 Mountain Equipment Co-op

 Shell Canada

 Suncor Energy

 Talisman Energy

 Trans Alta

 Vancouver City Savings Credit Union

GRI Family of Documents

GRI Reporting Framework

This framework sets out the principles and indicators that organizations can
use to measure and report their economic, environmental, and social
performance. The cornerstone of the framework is the Sustainability Reporting
Guidelines. The third version of the Guidelines – known as the G3 Guidelines -
was published in 2006, and is a free public good. Other components of the
framework include Sector Supplements (unique indicators for industry sectors)
and National Annexes (unique country-level information). Click here for an
overview of the Reporting Framework.
What are the G3 Guidelines?
The G3 Guidelines are the cornerstone of the GRI Sustainability Reporting
Framework. In line with the GRI vision, it is recommended they be used as the
basis for all of an organization's annual reporting.

The Guidelines outline core content for reporting and are relevant to all
organizations regardless of size, sector, or location. They are the foundation
upon which all other GRI reporting guidance is based. The G3 Guidelines
outline a disclosure framework that organizations can voluntarily, flexibly, and
incrementally adopt. The flexibility of the G3 format allows organizations to
plot a path for continual improvement of their sustainability reporting
practices.

The G3 are the so-called “Third Generation” of the GRI’s Sustainability

Reporting Guidelines. They were launched in October 2006 at a large
international conference that attracted thousands.

There is a “third generation” because the GRI seeks to continually improve the
Guidelines. The G3 build on the G2 (released in 2002), which in turn are an
evolution of the initial Guidelines, which were released in 2000. The G3
Guidelines provide universal guidance for reporting on sustainability
performance. This means they are applicable to small companies, large
multinationals, public sector, NGOs and other types of organizations from all
around the world. It is the way that the Guidelines are created (through the
multi-stakeholder, consensus seeking approach) that enables them to be so
broadly applicable.

The G3 consist of principles and disclosure items (the latter includes

performance indicators). The principles help reporters define the report
content, the quality of the report, and give guidance on how to set the report
boundary. Principles include those such as materiality, stakeholder
inclusiveness, comparability and timeliness. Disclosure items include
disclosures on management of issues, as well as performance indicators
themselves (e.g. “total water withdrawal by source”).

The G3 are the base of the Reporting Framework. There are other elements
such as Sector Supplements and National Annexes that respond to the needs
of specific sectors, or national reporting requirements. The Reporting
Framework (including the G3) is a free and public good.

So what's in the G3?

Part 1 – Reporting Principles and Guidance

•Principles to define report content: materiality, stakeholder inclusiveness,

sustainability context, and completeness.

•Principles to define report quality: balance, comparability, accuracy,

timeliness, reliability, and clarity.

•Guidance on how to set the report boundary.

Part 2 – Standard Disclosures

•Strategy and Profile

•Management Approach

•Performance Indicators

How are the Guidelines updated?

The Guidelines are updated incrementally. This process represents a change

from the previous revision cycles, in which the entire set of Guidelines were
subject to revision. Going forward, GRI will use a process involving incremental
updates that will target specific revision goals - addressing only certain
portions of the Guidelines.

The process:

· On an annual basis, GRI invites stakeholders to identify their priorities in Q4

for further development of the Guidelines. (Click here for the current survey)

· The stakeholder feedback is then reviewed and used to formulate a draft plan

· The draft plan is posted on the GRI website for public comment

· The Board of Directors will approve a final set of priorities for implementation
for the next fiscal year based on feedback from the Technical Advisory
Committee (TAC) and the Stakeholder Council (SC). This plan will take into
account any ongoing projects from previous years that have not yet been
completed

· Based on the plan, GRI will form working groups to develop draft revisions for
review by the TAC

· Following the TAC review, the draft revisions will be forwarded to the SC for
their concur/non-concur and then to the Board for a final decision

· Updates to the Guidelines will be issued when the work is completed. This
means that projects may be completed and released in any given year.

G3 Updates - Information Centre

Current G3 Update activities:

GRI is involved in several projects related to updating the Guidelines.

· Community Indicators - As part of the general process of continuously

improving the Sustainability Reporting Framework, GRI is working to improve
the Community Indicators in the G3 Guidelines. In 2007, GRI worked with The
University of Hong Kong and CSR Asia to conduct a survey with the aim of
gaining a better understanding of current practices of the reporting of
community performance and impacts. For more information on this project,
click here.

· Human rights indicators - GRI is commencing a process to develop

recommendations on how to improve its guidance on Human Rights reporting.
For more information on this project, click here.

· Content and Materiality - GRI, through its multi-stakeholder consultative

process, will formulate a protocol to define how to use the four principles for
defining report content (materiality / stakeholder inclusiveness / sustainability
context, and completeness). This protocol will aid report makers in selecting
the material issues and indicators for a report.
Evolving the GRI Reporting Framework

The G3 Reporting Framework

Principles

and

Standard Disclosures

+
GRI: framework of choice

G3 Map
Financial Sector Supplement

Changes from G2 to G3
 Separation of management disclosures and performance indicators

 Number of indicators: 97 → 79

 Economic: Significant changes

 Environmental: Mostly clarifications, refinements, and ensuring

feasibility of measurement.

 Labor: Focus on making the descriptive process indicators into

comparable qualitative or quantitative disclosures.

 Human Rights: Significant change in the section due to consolidations

and refocusing on occurrence of incidents in order to get to comparable
disclosures
  Society: Focused on a move towards comparability and also did a limited
amount of consolidation. One indicator added on corruption.

 Product Responsibility: Set focused on a move towards comparability

and also did a limited amount of consolidation.

Examples of Performance Indicators

Qualitative or quantitative information about results or outcomes associated
with the organization in terms of economic, environmental and social
performance that is comparable and demonstrates change over time.
 Economic

 Financial implications and other risks and opportunities due to

climate change (EC2)

 Local hiring (EC7)

 Environmental

 Materials used (EN1)

 Materials used that are recycled input materials (EN2)

 Energy consumed (EN3/4)

 Energy saved and initiatives to reduce energy consumption

(EN5/7)

 Impact on biodiversity in protected areas (EN12)

 Greenhouse gas emissions (EN16/17)

 Amount of waste (EN22)

 Environmental impact associated with transportation (EN29)

 Labor

 Total workforce (LA1)

 Employees covered by collective bargaining agreements (LA4)

 Health and safety measures (LA7)

  Hours of training (LA10)

 Governance body/employee diversity (LA13)

 Human Rights

 Human rights screening on suppliers and contractors (HR2)

 Violation of indigenous rights (HR9)

 Society

 Impact on community (SO1)

 Training against corruption (SO4)

 Product Responsibility

 Life cycle assessment of products/services (PR1)

 Customer satisfaction (PR5)

Disclosure on Management Approach

Disclosures cover how an organization addresses a given set of topics in order
to provide context for understanding performance in a specific area. These are
narrative, plans, programs, initiatives rather than performance results that
change from year to year.

Indicator Protocols
Supporting each indicator these provide definitions, guidance and other
information to assist report preparers to ensure consistency in interpretation
of the performance indicators.
􀂃 Relevance
􀂃 Compilation
􀂃 Definitions
􀂃 Documentation
􀂃 References

The GRI Reporting Process Can Help

Sustainability reports based on the GRI framework can be used to benchmark
organizational performance with respect to laws, norms, codes, performance
standards and voluntary initiatives; demonstrate organizational commitment
to sustainable development; and compare organizational performance over
time. GRI promotes and develops this standardized approach to reporting to
stimulate demand for sustainability information – which will benefit reporting
organizations and those who use report information alike.
Understanding the link between business’ everyday activities and
the world around it
􀂃 Identifying critical issues on which to focus
􀂃 Measuring activities’ impacts
􀂃 Communicating what the organization has learned about its impacts
􀂃 Provides new skills
􀂃 Improved data gathering systems
􀂃 Increased competitiveness
􀂃 Improved risk management approach
􀂃 Help identify new opportunities

HOW WILL GRI HELP?

 Business – bolsters stakeholder communications; identifies areas for
improvement
 NGOs & Labour – facilitates dialogue with business; provides
consistent information
 Investors – standardized approach similar to financial reporting
 Governments – complements regulations

Current priorities for development

􀂃 Community Indicators
􀂃 Human Rights Indicators
􀂃 Content and Materiality
􀂃 Gender and Reporting

Available Sector Supplements

Financial services
Energy utilities
Automotive
Mining and metals
Telecommunications
Tour operators
Public agencies
Logistics and transportation

Work in progress:
Apparel and footwear
NGOs and foundations
Food production
Oil and Gas
Construction
Airports
Retail
Media

Reporting by Sector
Application Levels
The GRI philosophy: Measure for Sustainability in a
Globalizing World
Financial Reporting
• Backward looking (focus on the past performance)

• Recognizes only financial assets, gap between book value and economic
value

• Considers only shareholder interests

• Compliance based, slow reaction to market drivers, limitation to

business initiative and creativity

• Identifies financial leaders of last quarter

Sustainability Reporting
• Forward looking (past/future – interrelated)

• Recognizes environmental,

social, economic and intangible assets

• Considers all stakeholders

interests

• Based on “adopt or explain” principle, linked to market, stimulates

business initiative

• Identifies overall leaders of tomorrow

GRI – the Global Sustainability Reporting Standard
• The only globally accepted SR framework

• Globally endorsed by all stakeholders - governments endorsement -

WSSD; high level recognition&alignment with CG codes and initiatives –
King2, Equator Principles, UN/UNEP FI/PRI/GC, MDGs, SRI
initiatives;coming: ISO 26000, EU Accountancy/Sox

• Global reputation and brand - ensures credibility and comparability on

global, sectoral, regional, and national levels

• Voluntary application, but growing pressure for mandatory approach

• New flexible approach to reporting&compliance based on “adopt or

explain” rule, stakeholder dialogue, and on long-term commitment to
TBL reporting, management and performance improvements

• Developed through multi-stakeholder

process/consensus&ccontinuously improved through open consultative
process - learning forum of reporters and users.
What Does GRI Bring to the Table?
• Global recognition and ability to distinguish MFI (Microfinance
Institution) from the rest of the FI

• Global brand – reputation/credibility as management tool and reporting

standard

• Tested and globally accepted process and product

• Flexible application of the Guidelines in conjunction with sector

supplements for external reporting and internal operationalisation of
the TBL concept

– FSS – lacking depth in social performance and impact – possible to

integrate parameters from MFS

• Multidimentional application for management, internal dialogue,

reporting, marketing and stakeholder dialogue on sustainability

• GRI report meeting the needs of the reporter and its stakeholder:

– Stakeholder interest/business priorities focused report content

– Freedom in selection of report format, structure, media

– GRI Index

– GRI Report Assurance

– Report Registration (GRI WWW Database)

– Application Level Check Icon

– GRI OS Logo

• Inclusive ongoing process for improvement of the GRI framework

A GRI/Triodos initiative introducing sustainability and GRI reporting and
management to MFI through: coaching/direct hands on assistance; learning
network. Coming: WWW information exchange platform; trainings; tools and
materials development.

Participating MFIs:

• Acleda, Cambodia

• Banco Solidario, Equador

• Centenary, Uganda

• FIE, Bolivia

• Findesa, Nicaragua

• K-Rep, Kenya

• Akiba, Tanzania

• XAC Bank, Mongolia

• Mibanco, Peru

BSF; Share Microfin; Bellwether, India

Why MFI Should Consider Using GRI?

Quality management

– Data and goals for social, economic and environmental

performance and impact – part of the system

Branding, reputation and visibility

– Able to distinguish themselves from the other MFIs and

commercial banks
 – Recognition by international and local clients, investors NGOs,
communities, etc.

Employee ownership

– Part of the project

– Much more alert to improvements

– Ambassadors internally and externally

Improved services (products)

– Learning from continues dialogue with our clients

– Continues improvement of our services

Transparency and accountability

– Improved dialogue with shareholders and other stakeholders

– Improved shareholder confidence - informed and engaged

shareholders
Transparency and Sustainability in Finance (TSF)
Case : FINDESA - an Emerging Leader in SB and GRI
Reporting in Central America
• 2004 SR based on GRI

• More than 50% coverage of GRI Social Indicators

• 2005 GRI SR

• Environmental Policy

• Environmental Program on Direct Impacts

• Environmental Indicators on direct impact

• 2006 GRI SR

• Record business growth

• Organisational restructuring will better address the TBL concept and

strategic priorities

• Deepening and broadening the TBL impact measurement and

introduction of new environmental and social initiatives

British American Tobacco Polska

In its 2003-4 CSR Report, BAT Polska presented both quantitative and
qualitative Global Reporting Initiative (GRI) indicators, covering 89% of such
GRI indicators within the GRI 2002 Guidelines.
GRI Application by MFIs - TSF Evaluation
TBL/GRI is the way to go – according to TSF participants “GRI ensures ongoing
development and progress in line with the growing stakeholder expectations
for MFIs to address the social and other impacts of their activities, and with the
challenges facing the MF sector in a globalising highly competitive word where
brand, reputation,and sound management and governance are keys to
success”. But:

• Need some guidance and tools to introduce and set up GRI process and
further to integrate it into the management/operational systems

• GRI guidelines and indicators have proved applicable for report

development (separate or part of the AR), info and management
systems development, catalist for staff initiatives, reputation booster,
etc.

• Reporting on environmental performance has proved challenging (new

concept for the MF banks)

• There are gaps in the framework re measurement of/reporting on MF

bank’s social performance and impact

• Need to work toward addressing the impact measurement, analysis and

reporting gaps in both environmental and social performance of banks
and their clients

Preliminary Gap Analysis of GRI Guidelines re MF

Sector SP Measurement/Rating Initiatives
• Lack of coverage of key SR/SM areas and issues by SP TF and other MFI
initiatives (gaps in the current MFI perf/impact analysis)
 • The social aspects are partially addressed by GRI and FSS – there are
areas of overlap with MFS initiatves that need clarification and further
development/more depth

• The GRI portfolio is not addressing:

– results or achievevement of outreach (depth and width) and

appropriateness of MFI financial services

– impact measurement/analysis – achievement of social change and

environmental impacts

– specifics of MF bank’s organisational and client profille, social

goals, mission, systems and policies for management of social
impact and performance

These gaps should be resolved in regard with the whole FS with MF sector
taking the lead and bringing its learning and knowledge in the fiald of social
impact analysis.

Directions for MFS in Addressing the Social Impact

Measurement and Reporting Needs
– Drift away: Develop independently and without linkages to TBL
and FS initiatives, a set of social MF indicators for rating and donor
institutions to measure progress on social impact (double bottom
line – SPTF)

– Take the leadership seat and align with FS: Adopt the
TBL/sustainability concepts already accepted by the rest of the
financial sector - take the leadership and together with the GRI,
key players from MFI sector and financial sector work on
development of the missing set of social performance and impact
measurement indicators, linked to the FSS (sub sector
supplement) for use by the whole financial sector

– Compete with the rest of the FS: Adopt the TBL/sustainability

concept and together with the GRI set up a process for
development of a full scale MFI sector supplement addressing the
 specific needs of the MF sector for measurement and reporting on
social performance and impacts, for application by MFIs only.

GRI Supplememt Development Process

• Leader/s emerge within the sector and convene key players around the
idea of SS development

• The sectoral leader/s approach GRI and propose SS development and

ensure funding

• GRI in collaboration with the sectoral leader/s sets up a standardised SS

development process:

– global multi-stakeholder working group of 18 -20 individuals. The

group will be 50% sector (businesses) and 50% non-sector
stakeholders (e.g. civil society organizations, trade unions,
investors, etc.)

– GRI co-coordinates the WG activities, co-facilitates WG

discussions, assists with content – collects feedback and builds the
supplement document as part of the WG process, ensures linkages
with GRI portfolio and quality control

– Full scale SS: 2+ years for pilot supplement + additional 1-2 year
pilot testing period, and 1.5 year finalisation by GRI TAC and BOD

GRI is open to work on sub-sector supplements within the SS for

specific sectors – the process is about the same as SS development, but there
are softer requirements time-wise and resources-wise
GRI as part of SM Operationalization Cycle
Stakeholder
Engagement
Process
C-D

GRI & COMPLEMENTARY INITIATIVES

 GRI a

GRI IS NOT A CODE OF CONDUCT…

MANAGEMENT BENEFITS OF GRI
 Efficiency – single, generally-accepted reporting framework
 Internal Management – alignment and communication of policies and
performance
 Benchmarking – internal and external
 Recognition and Fairness – reward high performance, expose
laggards
 Stakeholder consultation – vehicle for strengthening dialogue
 Credibility – an international framework with broad-based support
for both process and product
 Communication – with customers, media, and regulators
 Competitive Advantage – capital, product/service, labor markets
How to Develop a GRI Report in 5 Easy Steps
Step 1
Prepare – how to get started
 Define reasons for reporting
 Learn from the GRI reporting principles
 Check your starting basis
 Ensure support and engagement
 Develop a time schedule
Step 2
Plan – what to report to whom
• Formulate your key reporting topics
• Map your stakeholders and their interests
• Consult with your stakeholders
• Check feasibility for you to report on these interests and finalise your
key reporting topics/themes
• Define report audiance and scope
• Match topics with GRI aspects and identify corresponding GRI indicators
Step 3
Assess – measure your performance
• Identify indicators
• Measure/collect data
• Set performance targets for the next year
Step 4
Report – go and tell the news
• Check the indicator results for data quality and relevance
• Choose the report media and your communication methods
• Write your GRI report
 • Consult with your stakeholders
• Finalise and distribute the report
Step 5
Improve – head for more
• Celebrate your achievements
• Give and get recognition
• Begin planning for the next report
• Collect feedback on your report
• Plan your next steps for improvement
FUTURE GRI
 Dynamic
 Multi-stakeholder
 Credible
 Financially secure
 …and seen as vital to both businesses and stakeholders in the global
economy
 Independent
 Transparent
 Internationally networked

FUTURE GRI ACTIVITIES

Scope