Review of Sustainability and Sustainability Reporting - Global organizations like the Global Reporting Initiative

(GRI) and ISO 26000 emerged.

- United Nations' Global Compact encouraged social

Definition of Sustainable Development responsibility.
- Sustainable development is development that meets the - OECD Guidelines expanded with new chapters.
needs of present generations without compromising the ability
of future generations to meet their own needs (Brundtland - ISO 26000 aims to contribute to sustainable development.
Commission, 1987).

Market Makers for Sustainability Reporting

Key Concepts of Sustainable Development
1. Commitment Formers : Organizations like UN PRI,
- Emphasizes essential needs of the world's poor. Natural Capital Finance Alliance, and UNGC promote
responsible policies.
- Recognizes limitations imposed by technology and social
organization on the environment's ability to meet present and 2. Framework Providers : GRI, CDP, CDSB, and IIRC
future needs. provide guidelines.

3. ESG Rankings, Ratings, and Indexes : Various rankings,

including DJSI and FTSE4Good, compare and benchmark
Three Pillar Model of Sustainability companies.
- Economic growth, ecological balance, and social progress 4. ESG Research Providers : Companies like SAM, MSCI,
are fundamental components of sustainability. and Sustainalytics support rankings.

5. ESG Aggregators and Disseminators : Platforms like

Sustainability Dimensions CSRHub and Corporate Register aggregate and disseminate
information.
1. Social : Reflects an organization's impact on people,
including health, skills, and human relationships. 6. Consultants, Auditors, and Data Management Providers :
Firms like McKinsey, PwC, and SAP promote sustainability
2. Environmental : Relates to natural resource consumption. reporting.
3. Economic : Explores an organization's financial
performance and its broader economic impact.
Intended Users of Sustainability Reporting

1. Corporate Customers : Major purchasers ask suppliers for

Sustainability Reporting ESG information.
- Involves providing information on sustainability matters 2. Investors and Lenders : Significant audience for
according to accepted standards. sustainability reporting.
- Enables organizations to measure, understand, communicate, 3. Employees : Millennial employees value environmentally
set goals, and manage change effectively. aware employers.
- Includes strategies, priorities, policies, sustainability 4. Communities : Interested in an organization's impact on
performance, impacts on operations, and responsibilities. communities.

5. Advocacy Groups and Media : Seek information on

economic, environmental, and social topics.
Development of Sustainability Reporting
6. Regulators and Government Agencies : Companies
- Began with voluntary environmental reports in the late
demonstrate compliance with laws and responsible practices.
1980s.
7. Suppliers and Business Partners
- Evolved to corporate social responsibility (CSR) and triple
bottom line (TBL) reporting in the mid-1990s. 8. Industry Peers and Influencers Benchmark against peers
for competitive advantage.
1
 Internal and External Benefits of Sustainability Reporting Sustainability Theories

Internal Benefits : 1. Shareholder/Agency Theory : Addresses conflicts of

interest between management and shareholders.
1. Risk Management : Identifying and reducing
sustainability-related risks. 2. Stakeholder Theory : Links sustainability activities and
long-term value enhancement with social and environmental
2. Strategic Vision : Developing a sustainable vision and responsibility.
business plans.
3. Legitimacy Theory : Suggests firms must fulfill their
3. Improved Management Systems : Enhanced internal social contract to maintain legitimacy.
systems.
4. Signaling/Disclosure Theory : Explains management
4. Motivated Workforce incentives for achieving ESG sustainability performance and
disclosing it.

External Benefits : 5. Institutional Theory : Views firms as institutional forms

with unified interests, governance, values, rules, and practices.
1. Investor Attractiveness : Attracts investment.
6. Stewardship Theory : Regards management as custodians
2. Reputation and Brand Value : Improves company of long-term stakeholder interests, emphasizing ethical
reputation. behavior.
3. Stakeholder Engagement : Connects with stakeholders.

4. Competitive Advantage : Gains a competitive edge. Embedding Sustainability in Organizations

- Material sustainability matters are those that reflect

significant ESG impacts or substantially influence stakeholder
Review of Sustainability Reporting Principles and Process
assessments and decisions.

- Five steps include defining objectives, identifying issues,

Sustainability Definition stakeholder engagement, prioritization, and process review.

- Sustainability is defined as a dynamic equilibrium in the

interaction between a population and its environment, where
Managing Material Sustainability Matters
the population can develop to its full potential without causing
irreversible, adverse effects on the environment. - After reviewing and approving material matters,
organizations should develop responses, such as policies,
initiatives, goals, targets, and data management systems.
Five Principles of Sustainability

1. Material Domain : Focuses on regulating the flow of

Credibility to Sustainability Performance and Disclosures
materials and energy to support existence, emphasizing the
continuous flow of resources. - Credibility can be demonstrated through assurance, which
applies to various types of sustainability disclosures, data,
2. Economic Domain : Provides a framework for creating
narratives, management processes, and standards like the GRI
and managing wealth in alignment with ecological processes.
Standards.
3. Domain of Life : Promotes biodiversity as the foundation
for appropriate behavior in the biosphere.
Assurance Criteria
4. Social Domain : Suggests providing maximum freedom
and self-realization for all humans and their social - Organizations need to set criteria for assurance, including the
interactions. scope, standards, competence of the assurance team, and
method of presentation.
5. Spiritual Domain : Advocates the recognition of
attitudinal orientation as a need for a universal code of ethics.
2
Certainly, I can provide a more detailed and structured review
of the information you've shared about sustainability reporting
standards and frameworks. Sustainability Accounting Standards Board (SASB):

1. Background: The SASB, founded in 2011, focuses on

providing industry-specific sustainability standards primarily
Review of Sustainability Reporting Standards and for U.S. capital markets but with an increasingly global reach.
Frameworks:
2. Structure: SASB standards comprise five sustainability
themes (environment, social capital, human capital, business
model and innovation, leadership and governance) and are
Introduction: tailored to 77 specific industries.
The document outlines key sustainability reporting standards 3. Sustainability Topics: The standards provide specific
and frameworks, including the Global Reporting Initiative quantitative and comparable metrics for each industry,
(GRI), the International Integrated Reporting Framework focusing on issues material to that industry's financial
(<IR>), and the Sustainability Accounting Standards Board performance.
(SASB). These frameworks are essential for organizations
aiming to report on their sustainability initiatives, align with
international standards, and meet the needs of various
stakeholders. Development Process:

The GRI standards are developed through an independent

process by the Global Sustainability Standards Board (GSSB).
Global Reporting Initiative (GRI): For <IR>, market-based evidence and input from various
stakeholders contribute to its evolution. SASB takes a market-
1. Background: The GRI is an independent international driven approach, engaging in significant research to determine
organization established in 1997, providing widely-used the financial materiality of sustainability topics for different
sustainability reporting standards. industries.
2. Structure: The GRI framework includes universal
standards (100 Series) and topic-specific standards (200, 300,
and 400 Series) which encompass governance, economic, Importance of Sustainability Reporting Frameworks:
environmental, and social topics.
These frameworks collectively aim to improve the quality of
3. Universal Standards: These include GRI 101 information available to stakeholders, ensure a cohesive
(Foundation), GRI 102 (General Disclosures), and GRI 103 approach to corporate reporting, promote accountability and
(Management Approach) and set out the fundamental stewardship for various capitals, and support integrated
principles for sustainability reporting. thinking, decision-making, and actions to create value over the
short, medium, and long term.

Review of "Chapter 3: Sustainability Reporting Standards and

International Integrated Reporting Framework (<IR>): Frameworks"
1. Background: Launched in 2010, the International
Integrated Reporting Council (IIRC) introduced the <IR>
framework to encourage businesses to provide concise reports Chapter 3 of the text provides an overview of sustainability
about strategy, governance, performance, and prospects. reporting standards and frameworks, focusing on the Global
Reporting Initiative (GRI), the International Integrated
2. Structure: The framework identifies six capitals Reporting Framework (<IR>), and the Sustainability
(financial, manufactured, intellectual, human, social and Accounting Standards Board (SASB). The text delves into the
relationship, and natural) and seven guiding principles that details of each framework, explaining their development,
govern the development of an integrated report. purpose, and structure.
3. Content Elements: The <IR> framework prescribes eight
content elements, including organizational overview,
governance, business model, risks and opportunities, strategy 1. Global Reporting Initiative (GRI):
and resource allocation, performance, outlook, and basis of
preparation and presentation. - The GRI is a comprehensive international organization for
sustainability reporting standards.
3
 - Founded in 1997 following the Exxon Valdez oil spill, it - Encourages corporations to voluntarily adopt disclosure
transitioned to setting global standards in 2016. recommendations to inform investors and the investment
community.
- The GRI Standards cover governance, economic,
environmental, and social topics.

- It emphasizes transparency, responsibility, and a Overall, the text provides valuable information on key
sustainable future. sustainability reporting standards and frameworks. It
highlights the significance of transparent and standardized
sustainability reporting in today's business environment,
2. GRI Standards: offering organizations the opportunity to identify and manage
their impacts while supporting decision-making and
- Consist of universal standards (100 Series) and topic- sustainable development. Each framework discussed serves a
specific standards (200, 300, 400 Series). unique purpose and contributes to a more sustainable future.
The text also underscores the importance of harmonizing these
- Universal standards provide foundational principles,
frameworks with existing metrics and frameworks to minimize
including report content, quality, and management approach.
reporting burdens.
- The 100 Series standards are the starting point for using
GRI standards.
EXHIBIT 3.1 TOPIC SPECIFIC STANDARDS

200 SERIES: ECONOMIC

3. International Integrated Reporting Framework (<IR>):
201 – ECONOMIC PERFORMANCE
- <IR> Framework defines six capitals, seven guiding
principles, and eight content elements. 202 – MARKET PRESENCE
- Launched in 2013, it focuses on value creation, 203 – INDIRECT ECONOMIC IMPACTS
preservation, and erosion.
204 – PROCUREMENT PRACTICES
- Promotes integrated thinking, decision-making, and actions
for long-term value. 205 – ANTI-CORRUPTION

206 – ANTI-COMPETITIVE BEHAVIOUR

4. Sustainability Accounting Standards Board (SASB): 207 – TAX

- Developed industry-based sustainability standards for more

than 77 specific industries. 300 SERIES: ENVIRONMENTAL
- Established in 2011, it aims to help businesses identify, 301 – MATERIALS
manage, and report on financially material sustainability
topics. 302 – ENERGY

- SASB standards are segmented into five dimensions: 303 – WATER

Environment, Social Capital, Human Capital, Business Model
and Innovation, Leadership and Governance. 304 – BIODIVERSITY

305 – EMISSION

5. TCFD (Task Force on Climate-Related Financial

Disclosures): 306 – WASTE
- Created by the Financial Stability Board (FSB), TCFD 307 – ENVIRONMENTAL COMPLIANCE
issued recommendations in 2017 for climate-related financial
disclosures. 308 – SUPPLIER ENVIRONMENTAL ASSESSMENT

- Focuses on governance, strategy, risk management,

metrics, and targets.
400 SERIES: SOCIAL

4
401 – EMPLOYMENT 3. INTELLECTUAL CAPITAL

402 – LABOUR MANAGEMENT RELATIONS 4. HUMAN CAPITAL

403 – OCCUPATIONAL HEALTH AND SAFETY 5. SOCIAL AND RELATIONSHIP CAPITAL

404 – TRAINING AND EDUCATION 6. NATURAL CAPITAL

405 – DIVERSITY AND EQUAL

OPPORTUNITY The Six Capitals

406 – NON-DISCRIMINATION 1. FINANCIAL CAPITAL: THE POOL OF FUNDS

THAT IS AVAILABLE TO AN ORGANIZATION FOR USE
407 – FREEDOM OF ASSOCIATION IN THE PRODUCTION OF GOODS OR THE PROVISION
408 – CHILD LABOUR OF SERVICES AND OBTAINED THROUGH FINANCING
(E.G. DEBT, EQUITY OR GRANTS) OR GENERATED
409 – FORCED OR COMPULSORY LABOUR THROUGH OPERATIONS OR INVESTMENTS.
410 – SECURITY PRACTICES 2. MANUFACTURED CAPITAL:
MANUFACTURED PHYSICAL OBJECTS (AS DISTINCT
411 – RIGHTS OF INDIGENOUS PEOPLE
FROM NATURAL PHYSICAL OBJECTS) THAT ARE
412 – HUMAN RIGHTS AVAILABLE TO AN ORGANIZATION FOR USE IN THE
PRODUCTION OF GOODS OR THE PROVISION OF
413 – LOCAL COMMUNITIES SERVICES — BUILDINGS, EQUIPMENT,
INFRASTRUCTURE (E.G., ROADS, PORTS, BRIDGES,
414 – SUPPLIER SOCIAL ASSESSMENT
AND WASTE AND WATER TREATMENT PLANTS).
415 – PUBLIC POLICY MANUFACTURED CAPITAL IS OFTEN CREATED BY
OTHER ORGANIZATIONS, BUT INCLUDES ASSETS
416 – CUSTOMER HEALTH AND SAFETY MANUFACTURED BY THE REPORTING
ORGANIZATION FOR SALE OR WHEN THEY ARE
417 – MARKETING AND LABELLING
RETAINED FOR ITS OWN USE.
418 – TRAINING AND EDUCATION

419 – SOCIOECONOMIC COMPLIANCE

3. INTELLECTUAL CAPITAL:
ORGANIZATIONAL, KNOWLEDGE-BASED
INTANGIBLES, INCLUDING INTELLECTUAL
The Six Capitals PROPERTY (E.G., PATENTS, COPYRIGHTS, SOFTWARE,
DEFINED AS "STOCKS OF VALUE ON WHICH ALL RIGHTS AND LICENSES) AND "ORGANIZATIONAL"
ORGANIZATIONS DEPEND FOR THEIR SUCCESS AS CAPITAL (E.G., TACIT KNOWLEDGE, SYSTEMS,
INPUTS TO THEIR BUSINESS MODEL, AND WHICH PROCEDURES AND PROTOCOLS).
ARE INCREASED, DECREASED OR TRANSFORMED 4. HUMAN CAPITAL: COMPETENCIES,
THROUGH THE ORGANIZATION'S BUSINESS CAPABILITIES, EXPERIENCE, AND MOTIVATIONS OF
ACTIVITIES AND OUTPUTS". THE CAPITALS ARE PEOPLE TO INNOVATE, INCLUDING THEIR: (A)
CATEGORIZED IN THE ALIGNMENT WITH AND SUPPORT FOR AN
<IR> FRAMEWORK AS FINANCIAL, MANUFACTURED, ORGANIZATION'S GOVERNANCE FRAMEWORK, RISK
INTELLECTUAL, HUMAN, SOCIAL AND MANAGEMENT APPROACH, AND ETHICAL VALUES;
RELATIONSHIP, AND NATURAL. (B) ABILITY TO UNDERSTAND, DEVELOP AND
IMPLEMENT AN ORGANIZATION'S STRATEGY; AND

(C) LOYALTIES AND MOTIVATIONS FOR IMPROVING

The Six Capitals PROCESSES, GOODS AND SERVICES, INCLUDING
THEIR ABILITY TO LEAD, MANAGE AND
1. FINANCIAL CAPITAL COLLABORATE.
2. MANUFACTURED CAPITAL

5
5. SOCIAL AND RELATIONSHIP CAPITAL: THE 1. STRATEGIC FOCUS AND FUTURE
INSTITUTIONS AND THE RELATIONSHIPS WITHIN ORIENTATION. AN INTEGRATED REPORT SHOULD
AND BETWEEN COMMUNITIES, GROUPS OF PROVIDE INSIGHT INTO THE ORGANIZATION'S
STAKEHOLDERS AND OTHER NETWORKS, AND THE STRATEGY, AND HOW IT RELATES TO THE
ABILITY TO SHARE INFORMATION TO ENHANCE ORGANIZATION'S ABILITY TO CREATE VALUE IN THE
INDIVIDUAL AND COLLECTIVE WELL- BEING. SHORT, MEDIUM AND LONG TERM, AND TO ITS USE
SOCIAL AND RELATIONSHIP CAPITAL INCLUDES: (A) OF AND EFFECTS ON THE CAPITALS.
SHARED NORMS, AND COMMON VALUES AND
BEHAVIOURS; (B) KEY STAKEHOLDER 2. CONNECTIVITY OF INFORMATION. AN
RELATIONSHIPS, AND THE TRUST AND WILLINGNESS INTEGRATED REPORT SHOULD SHOW A HOLISTIC
TO ENGAGE THAT AN ORGANIZATION HAS PICTURE OF THE COMBINATION,
DEVELOPED AND STRIVES TO BUILD AND PROTECT INTERRELATEDNESS AND DEPENDENCIES BETWEEN
WITH EXTERNAL STAKEHOLDERS. (C) INTANGIBLES THE FACTORS THAT AFFECT THE ORGANIZATION'S
ASSOCIATED WITH THE BRAND AND REPUTATION ABILITY TO CREATE VALUE OVER TIME.
THAT AN ORGANIZATION HAS DEVELOPED; AND (D)
AN ORGANIZATION'S
3. STAKEHOLDER RELATIONSHIPS. AN
INTEGRATED REPORT SHOULD PROVIDE INSIGHT
6. NATURAL CAPITAL: ALL RENEWABLE AND INTO THE NATURE AND QUALITY OF THE
NON- RENEWABLE ENVIRONMENTAL RESOURCES ORGANIZATION'S RELATIONSHIPS WITH ITS KEY
AND PROCESSES THAT PROVIDE GOODS OR STAKEHOLDERS, INCLUDING H OW AND TO WHAT
SERVICES THAT SUPPORT THE PAST, CURRENT OR EXTENT THE ORGANIZATION UNDERSTANDS, TAKES
FUTURE PROSPERITY OF AN ORGANIZATION, INTO ACCOUNT AND RESPONDS TO THEIR
INCLUDING AIR, WATER, LAND, MINERALS, LEGITIMATE NEEDS AND INTERESTS.
FORESTS, ALONG WITH BIODIVERSITY AND ECO- 4. MATERIALITY. AN INTEGRATED REPORT
SYSTEM HEALTH. SHOULD DISCLOSE INFORMATION ABOUT MATTERS
THAT SUBSTANTIVELY AFFECT THE
ORGANIZATION'S ABILITY TO CREATE VALUE OVER
How Is The <IR> Framework Developed? - 7 Guiding THE SHORT, MEDIUM AND LONG TERM.
Principles

SEVEN GUIDING PRINCIPLES UNDERPIN THE

PREPARATION AND PRESENTATION OF AN How Is The <IR> Framework Developed? - 7 Guiding
INTEGRATED REPORT, INFORMING THE CONTENT OF Principles
THE REPORT AND HOW INFORMATION IS 5. CONCISENESS. AN INTEGRATED REPORT
PRESENTED: SHOULD BE CONCISE.
1. STRATEGIC FOCUS AND FUTURE 6. RELIABILITY AND COMPLETENESS. AN
ORIENTATION. INTEGRATED REPORT SHOULD INCLUDE ALL
2. CONNECTIVITY OF INFORMATION MATERIAL MATTERS, BOTH POSITIVE AND
NEGATIVE, IN A BALANCED WAY AND WITHOUT
3. STAKEHOLDER RELATIONSHIPS. MATERIAL ERROR.

4. MATERIALITY. 7. CONSISTENCY AND COMPARABILITY. THE

INFORMATION IN AN INTEGRATED REPORT SHOULD
5. CONCISENESS. BE PRESENTED: (A) ON A BASIS THAT IS CONSISTENT
6. RELIABILITY AND COMPLETENESS OVER TIME; AND (B) IN A WAY THAT ENABLES
COMPARISON WITH OTHER ORGANIZATIONS TO THE
7. CONSISTENCY AND COMPARABILITY EXTENT IT IS MATERIAL TO THE ORGANIZATION'S
OWN ABILITY TO CREATE VALUE OVER TIME.

Content Elements
How Is The <IR> Framework Developed? - 7 Guiding
Principles THE FRAMEWORK ALSO IDENTIFIES EIGHT
CONTENT ELEMENTS (I.E., CATEGORIES OF

6
INFORMATION REQUIRED TO BE INCLUDED IN AN 6. PERFORMANCE: TO WHAT EXTENT HAS THE
INTEGRATED REPORT) THAT ARE FUNDAMENTALLY ORGANIZATION ACHIEVED ITS STRATEGIC
LINKED TO EACH OTHER AND ARE NOT MUTUALLY OBJECTIVES FOR THE PERIOD AND WHAT ARE ITS
EXCLUSIVE. THESE CONTENT ELEMENTS ARE OUTCOMES IN TERMS OF EFFECTS ON THE
STATED IN THE FORM OF QUESTIONS TO BE CAPITALS?
ANSWERED IN A WAY THAT MAKES THE
RELATIONSHIPS BETWEEN THEM APPARENT. 7. OUTLOOK: WHAT CHALLENGES AND
UNCERTAINTIES IS THE ORGANIZATION LIKELY TO
ENCOUNTER IN PURSUING ITS STRATEGY, AND
WHAT ARE THE POTENTIAL IMPLICATIONS FOR ITS
1. ORGANIZATIONAL OVERVIEW AND BUSINESS MODEL AND FUTURE PERFORMANCE?
EXTERNAL ENVIRONMENT
8. BASIS OF PREPARATION AND PRESENTATION:
2. GOVERNANCE HOW DOES THE ORGANIZATION DETERMINE WHAT
3. BUSINESS MODEL MATTERS TO INCLUDE IN THE INTEGRATED REPORT
AND HOW ARE SUCH MATTERS QUANTIFIED OR
4. RISKS AND OPPORTUNITIES EVALUATED?
5. STRATEGY AND RESOURCE ALLOCATION

6. PERFORMANCE SASB's sustainability topics are segmented into five broad

dimensions:
7. OUTLOOK
1. ENVIRONMENT (6 ISSUES)
8. BASIS OF PREPARATION AND PRESENTATION
2. SOCIAL CAPITAL (7 ISSUES)

3. HUMAN CAPITAL (3 ISSUES):

4. BUSINESS MODEL AND INNOVATION (5

ISSUES):
Content Elements
5. LEADERSHIP AND GOVERNANCE (5 ISSUES)
1. ORGANIZATIONAL OVERVIEW AND
EXTERNAL ENVIRONMENT: WHAT DOES THE
ORGANIZATION DO AND WHAT ARE THE Core Themes
CIRCUMSTANCES UNDER WHICH IT OPERATES?
1. GOVERNANCE
2. GOVERNANCE: HOW DOES THE
ORGANIZATION'S GOVERNANCE STRUCTURE 2. STRATEGY
SUPPORT ITS ABILITY TO CREATE VALUE IN THE 3. RISK MANAGEMENT
SHORT, MEDIUM AND LONG TERM?
4. METRICS AND TARGETS
3. BUSINESS MODEL: WHAT IS THE
ORGANIZATION'S BUSINESS MODEL?

4. RISKS AND OPPORTUNITIES: WHAT ARE THE Core Themes

SPECIFIC RISKS AND OPPORTUNITIES THAT AFFECT
THE ORGANIZATION'S ABILITY TO CREATE VALUE 1. GOVERNANCE: THE ORGANIZATION'S
OVER THE SHORT, MEDIUM AND LONG TERM, AND GOVERNANCE AROUND CLIMATE-RELATED RISKS
HOW IS THE ORGANIZATION DEALING WITH THEM? AND OPPORTUNITIES.

2. STRATEGY: THE ACTUAL AND POTENTIAL

IMPACTS OF CLIMATE- RELATED RISKS AND
5. STRATEGY AND RESOURCE ALLOCATION: OPPORTUNITIES ON THE ORGANIZATION'S
WHERE DOES THE ORGANIZATION WANT TO GO AND BUSINESSES, STRATEGY AND FINANCIAL PLANNING.
HOW DOES IT INTEND TO GET THERE?

7
3. RISK MANAGEMENT: THE PROCESSES THE This section elaborates on the objectives of the Sustainability
ORGANIZATION USES TO IDENTIFY, ASSESS AND Reporting Guidelines:
MANAGE CLIMATE-RELATED RISKS.

4. METRICS AND TARGETS: THE METRICS AND

TARGETS USED TO ASSESS AND MANAGE RELEVANT 1. Identify, Evaluate, and Manage Material EES Risks and
CLIMATE-RELATED RISKS AND OPPORTUNITIES. Opportunities :

- PLCs use the guidelines to assess and manage material

economic, environmental, and social (EES) risks and
Certainly, I can provide you with a detailed reviewer based on opportunities.
the corrected version. This reviewer will cover all key points
and provide a comprehensive understanding of the text. Let's
break down the review by section: 2. Assess and Manage Non-financial Performance :

- Guidelines help PLCs assess and manage non-financial

--- performance, optimizing business operations and ensuring
competitiveness and long-term success.

Content and Disclosures :

REVIEWER
This section discusses the content and disclosure requirements
within the guidelines, emphasizing the flexibility for
companies to report beyond the minimum requirements.
CHAPTER 4: Sustainability Reporting Guidelines for
Publicly Listed Companies

Submission with SEC Form 17-A :

Introduction : - The requirement to submit the reporting template with the

Annual Report is explained.
Chapter 4 introduces the subject of sustainability reporting
guidelines for publicly listed companies (PLCs) in the - The first report's submission deadline is outlined.
Philippines. It explains that these guidelines aim to make
sustainability reporting relevant and valuable to PLCs by
addressing economic, environmental, and social aspects of Comply or Explain Approach :
their operations.
- The "Comply or Explain" approach is introduced,
emphasizing the penalties for non-compliance.
Key Points : - Reference is made to SEC Memorandum Circular No. 6,
- The Securities and Exchange Commission (SEC) resolved to Series of 2005, which outlines penalties for "incompetence
issue Sustainability Reporting Guidelines for PLCs in the Annual Report."
Philippines.

- These guidelines assist PLCs in assessing and managing non- Reporting Principles for Quality Reports :
financial performance.
This section discusses principles for ensuring the quality of
- The objectives of the guidelines are introduced, focusing on information in sustainability reports:
risk management and performance optimization.

- PLCs are encouraged to adopt globally recognized standards

for sustainability reporting. 1. Materiality :

- Material topics are explained as those reflecting an

organization's significant economic, environmental, and social
Sustainability Reporting Guidelines Objectives : impacts.

8
 - The role of materiality in addressing stakeholders' - The impact of transparency on stakeholders and business
reasonable expectations and interests is highlighted. operations is highlighted.

- Materiality matrices are introduced for ranking the

importance of sustainability issues.
Social Dimension :

- The shift towards social issues and the organization's dual

2. Bias-Free Reporting : responsibility to internal and external stakeholders are
explained.
- Reporting must be unbiased in the selection and
presentation of information. - The effects of implementing and reporting on social
responsibility are detailed.

Sustainable Development Goals :

3. Balanced Reporting :
- The significance of focusing on social, economic, and
- Reporting should encompass positive and negative aspects environmental disclosure is discussed.
of an organization's performance.
- The relationship between such disclosure and a company's
- Comparisons to previously reported targets and reputation and market performance is explained.
expectations are encouraged.

Materiality Assessment :
4. Accuracy and Consistency :
- Materiality assessment is defined as the identification of
- The importance of accurate and consistent information for significant sustainability issues for reporting purposes.
stakeholders is discussed.
- The elements that determine materiality are detailed,
including key business activities and stakeholder impact.
Sustainability Reporting Framework :

- The ethical and responsible manner of conducting business is Management Approach :

emphasized.
- Management approaches are techniques used to direct and
control an organization.
Disclosure Topics : - Various common examples of management approaches are
- The focus on significant economic, environmental, and social listed.
impacts in sustainability reporting is detailed.

Management Approach Components :

Economic Dimension : - Policies, commitments, goals and targets, responsibilities,
- The economic dimension's primary focus on profitability and resources, grievance mechanisms, and specific actions are
its importance for organizations are explained. detailed as components of management approaches.

- The impact of economic performance on stakeholders, such

as investors and creditors, is elaborated. ---

Environmental Dimension : This detailed reviewer covers all the key points in the text and
- The use of environmental disclosure to address provides a comprehensive understanding of the content. You
environmental issues and responsibilities is discussed. can use it as a reference to prepare for your exam. If you have

9
any specific questions or need further clarification on any of
the sections, please feel free to ask.

10