GRI & SUSTAINABILITY REPORTING

PRESENTED BY:NIDHI ANN MATHAI

02211403912

PRESENTED TODr. S. K. PanigrahiFaculty M.B.AB.P.I.B.S

SUSTAINABILITYConserving an ecological balance by avoiding

depletion of natural resources

Capability of being maintained at a steady level without exhausting natural resources or causing severe ecological damage

NEED FOR SUSTAINABILITYAn ever-greater number of companies

and other organizations are recognizing the need to make their operations more sustainable.

The governments, stock exchanges, markets, investors, and society at large are calling on companies to be transparent about their sustainability goals, performance and impacts.

SUSTAINABILITY REPORTINGSustainability reporting is the practice of measuring, disclosing,

and being accountable to internal and external stakeholders for organizational performance towards the goal of sustainable development.

It is a broad term considered synonymous with others used to describe reporting on economic, environmental, and social impacts (e.g., triple bottom line, corporate responsibility reporting, etc.).

A sustainability report should provide a balanced and reasonable representation of the sustainability performance of a reporting organization – including both positive and negative contributions.

Sustainability reports based on the GRI Reporting Framework disclose outcomes and results that occurred within the reporting period in the context of the organization’s commitments, strategy, and management approach.

Reports can be used for the following purposes, among others:

Benchmarking

Demonstrating

Comparing

IMPORTANCE

Corporate companies that focus on SR outperform their peers over the longer run, which in turn results into a stronger market position and increased profitability.

There is a reliable co-relation between business integrity and above average financial performance.

SR helps to acquire national and international listings and provide access to otherwise restricted markets.

SR will provide a sound understanding of the organization's customer needs, especially foreign international customers.

Other benefits include attracting finance through transparent relationships with credit providers, improving management systems and improving employee motivation and customer satisfaction.

SUSTAINABILITY REPORTING FRAMEWORK

Principles for defining contents:• Materiality• Stakeholder inclusiveness• Sustainability context• Completeness

Principles for defining quality:• Balance• Clarity• Accuracy• Timeliness• Comparability• Reliability

Standard Disclosures:

1 - Strategy and profile

2 – Management approach

3 – Performance Indicators

SUSTAINABILITY REPORTING FRAMEWORK

EconomicEnvironmentalSocialHuman rightsSocietyProduct responsibility

Sector Supplements:

• Airports• Apparel & Footwear• Automotive• Construction and Real State• Electric Utilities• Financial Services• Food Processing• Logistic & Transportation• Mining & Metals• NGOs• Public Agencies• Telecommunications• Tour Operators

STANDARD DISCLOSURES1. Profile Disclosures

Strategy & Analysis of the organization Organizational Profile Report Parameters for the organization Governance, Commitments and Engagements of the organization

2. Disclosures on Management Approach3. Disclosure on Performance Indicators

Economic Environmental Social

Labour Practices and Decent Work Society Human Rights Product Responsibility

GLOBAL REPORTING INITIATIVEThe Global Reporting Initiative (GRI) is a multi-

stakeholder process and independent institution whose mission is to develop and disseminate globally applicable Sustainability Reporting Guidelines.

The Guidelines are for voluntary use by organisations for reporting on the: ◦Economic,◦Environmental, and ◦Social dimensions of their activities, products, and services.

DIMENSIONS OF REPORTING

GRI was founded in the US in 1997 by CERES (a United States non-profit organisation) and the United Nations Environment Program (UNEP) and was originally based in Boston, Massachusetts. In 2002, GRI moved its central office to Amsterdam, where the Secretariat is currently located. GRI also has regional 'Focal Points' in Australia, Brazil, China, India and the USA.

The Focal Point India was established in January 2010, and is hosted by BSI Group India.

Focal Point India operates at the heart of the CSR and sustainability landscape in India. The Focal Point has an important strategic collaboration with the Indian Institute of Corporate Affairs (IICA), an independent think tank under the Ministry of Corporate Affairs, Government of India through the IICA-GIZ CSR initiative.

GRI SUSTAINABILITY REPORTING

The GRI Sustainability Reporting Guidelines – the most widely used comprehensive sustainability reporting standard in the world – provide organizations with the tools to meet the sustainability challenges.

A sustainability report conveys disclosures on an organization’s most critical impacts – be they positive or negative – on the environment, society and the economy.

GRI REPORTING OVER THE YEARS

(https://www.globalreporting.org/resourcelibrary/GRI-Reports-List-1999-2012.zip)

IMPORTANCEBy using the Guidelines, reporting organizations can generate

reliable, relevant and standardized information with which to:◦ assess opportunities and risks, and ◦ enable more informed decision-making – both within the business

and among its stakeholders.

By developing and communicating their understanding about the connections between sustainability and business, companies can:◦ enhance their value, ◦ measure and manage change, and ◦ drive improvement and innovation.

GRI AnticipatesContinued strong growth in sustainability reporting

Increased interest in what organizational leadership identifies as critical sustainability topics

Increased interest from report users for clearly presented and accessible information

Harmonisation between reporting tools and systems

Increased integration of financial and sustainability reporting

GRI SUSTAINABILITY REPORTING PROCESS

GRI GUIDELINES DEVELOPMENT

G4: NEXT GENERATION OF REPORTING

G4, the fourth generation of the Guidelines, was launched in May 2013. It marked the culmination of two years of extensive stakeholder consultation and dialogue with hundreds of experts from across the world from a wide variety of sectors.

Aim of G4: to help reporters prepare sustainability reports that matter – and to make robust and purposeful sustainability reporting standard practice.

G4 ObjectivesBe user friendly for beginners and experienced

reporters

Improve technical quality with clearer definitions

Align with other international reporting references (frameworks)

Lead to reports that cover material topics

Offer guidance on how to link sustainability and integrated reporting, aligned with the IIRC

Improve data access.

STRUCTURE & FORMATThe G4 is presented in two separate documents:

1. Reporting Principles and Standard Disclosures: GRI’s Reporting Principles are the criteria that should be used to guide your choices, in order to achieve effective GRI reporting. Standard Disclosures are the GRI ‘questions’ you answer in your report. (Strategy & Analysis, DMA, Indicators)

2. Implementation Manual: This is the ‘how to’ section, and provides detailed advice and recommendations for reporting with G4.

Examples of Performance Indicators Economic

◦ Financial implications and other risks and opportunities due to climate change (G4-EC2)

◦ Local hiring (G4-EC6)

Environmental ◦ Materials used (G4-EN1)◦ Materials used that are recycled input materials (G4-EN2) – Coca

Cola◦ Energy consumed (G4-EN3) – Hazira, RIL◦ Impact on biodiversity in protected areas (G4-EN12)◦ Amount of waste (G4-EN23) – P&G◦ Environmental impact associated with transportation (G4-EN29)

– Coca Cola, Bata

Examples of Performance Indicators Labor

◦ Health and safety measures (G4-LA6) – P&G◦ Hours of training (G4-LA9)◦ Governance body/employee diversity (G4-LA12) - Dell

Human Rights ◦ Human rights screening on suppliers and contractors (G4-H10) -

Tata◦ Violation of indigenous rights (G4-HR8)

Society◦ Impact on community (G4-SO1) - Vedanta◦ Training against corruption (G4-SO5)

Product Responsibility ◦ Life cycle assessment of products/services (G4-PR1)◦ Customer satisfaction (G4-PR5) - Dell

List of India companies with GRI based sustainability reporting

Comparison of the standards

Features GRI AA 1000 SA 8000 ISO 26000

ScopeTriple bottom line reporting

Social & ethical accounting, reporting

Social accontability

 Social responsibility

Corporate activity

Reporting & assessment

Management system

Codes, issues & assesments  Guidance

Sustainability pillar Triple bottom line

Primarily social, secondarily environmental economical

Social - mainly labour

Sustainable development

ApplicationNormative aspects: indicators Non normative Normative Normative

3rd party audit Yes Yes Yes  Yes

Indicators Set Up to company Set  

Orientation Results Process Result  Result

National Scenario The reporting in India is still at a nascent stage with nearly 80

companies out of 7000 listed companies, disclosing their sustainability performance.

Out of these 80, there are about 60 companies which have publicly declared that they use GRI Guidelines.

And out of these 60, only 51 sustainability reports are registered on the GRI database.

Reporting companies are mainly from Oil and Gas, Mining, Cement, Steel, Minerals, Automotive, etc. Reliance, ITC, Dr. Reddy's, Jubiliant Organosys, Tata Steel, Tata, Lafarge are some of the most active companies reporting themselves. Reliance and ITC are the highest rating (3 A+) companies.

2011 onwards

Global Scenario Of the 250 largest global companies, over 65% are already

publishing a sustainability report.

More than 3,000 companies across the world report on how they minimise their environmental footprint, engage with stakeholders, adopt fair social practices or embed sustainability into their day - to - day business, R & D or marketing practices.

Companies across Europe, Canada, Australia, Japan and USA and across sectors have been coming up with the sustainability reports for 6 to 10 years now.

Companies like BP, ABN, AMRO, BT, Novo NORDISK etc. have been rated amongst the top reporters for years now.

2013 Global CSR Reputation Winner Companies

RANK POINTS OUT OF 100

MICROSOFT 1 72.97

WALT DISNEY 2 72.83

GOOGLE 3 72.71

BMW 4 72.14

DAIMLER 5 70.65

SONY 6 69.49

INTEL 7 69.29

VOLKSWAGEN 8 69.21

APPLE 9 69.12

NESTLE 10 69.00

Source: Reputation Institute

Comparing 4 Years Ranking By Reputation Institute

Companies lagging behind in reporting – G3.1 Most of the companies do not have regular checks and internal

assurance protocol in place.

Most of the reports issued by companies fail to define clear focus

areas and identifying key stakeholders.

Very few reporters have sustainability strategy with well - defined

objectives and SMART targets.

The Sustainability Reports issued during the last few years are highly

packaged but lack emphasis on the main issue of sustainability.

Climate change has emerged on the key sustainability risks across

industries but only small number of companies report on climate

change risks.

What can be done? – G4

The expectations from Indian reporters going forward are to focus on

presenting information related to:

◦ Sustainability issues, challenges, dilemmas and opportunities.

◦ Regulatory environment and fact-based information.

◦ Information of interest to investors such as materiality of issues in

financial terms, vision and strategy, statements, goals and targets, etc.

◦ Explanation on identification and prioritization of material issues.

◦ Reader friendly report design.

CASE STUDY 1MICROSOFT

EMPOWERING NON PROFITS

Bill gates has donated $ 36,854,000,000 in his lifetime.

EMPLOYEES RESPONSE

CASE STUDY - RIL

CASE STUDY - TATA

Approximately two third of the equity of the parent firm, Tata Sons Ltd. is held by philanthropic trusts endowed by Sir Dorabji Tata and Sir Ratan Tata, son of Jamshedji Tata, the founder of today’s Tata empire in the 1860s.

Through these trusts, Tata Sons Ltd. utilizes on average between 8 to 14 percent of its net profit every year for various social causes. Even when economic conditions were adverse, as in the late 1990s, the financial commitment of the group towards social activities kept on increasing, from Rs 670 million in 1997-98 to Rs 1.36 billion in 1999-2000. In the fiscal year 2004 Tata Steel alone spent Rs 45 crores on social services.

BIG DECISION:

In July 2004, B. Muthuraman, Managing Director, Tata Steel Limited (TISCO) announced that in future TISCO would not deal with companies, which do not conform to the company's Corporate Social Responsibility (CSR) standards. Speaking at the annual general meeting of the Madras Chamber of Commerce and Industry, He stated, "We will not either buy from or sell to companies that do not measure up to Tata Steel's social responsibility standards."

•Over 500 self-help groups are currently operating under various poverty alleviation programs; out of which over 200 are engaged in activities of income generation thorough micro enterprises.

•Women empowerment programs through Self-Help Groups have been extended to 700 villages. From the year 2003 to 2006, the maternal and infant survival project had a coverage area of 42 villages in Gamharia block in Seraikela Kharsawa and a replication project was taken up in Rajnagar block.

Supports Social Welfare Organizations

Tata Steel supports various social welfare organizations. They include; Tata Steel Rural Development Society Tribal Cultural Society Tata Steel Foundation for Family Initiatives National Association for the Blind Shishu Niketan School of Hope Centre for Hearing Impaired Children Indian Red Cross Society, East Singhbhum

•In 2010-11, TCS supported its local communities in the United States: supported the victims of the 2010 Chilean earthquake. As far as the Tata group is concerned , it has gone a long way in fulfilling its duty and responsibility towards the society and the nation.

Comparing with international firm

As both a supplier and a customer in the technology industry, Dell has a robust process to understand how the chemicals and materials used inside our products and during their manufacturing processes affect humans, plants and animals. Materials usage laws and regulations differ around the world, and suppliers’ levels of transparency and accountability can also vary.DELL FOCUSES ON :

ENVIRONMENT COMMUNITIES PEOPLE

In 2013 dell achieved their long term recycling goal to collect 1

billion pounds of e-waste, a full year ahead of schedule. They

recycled more than 170 million pound of electronic globally.

Dell continued to close the recycling loop by

using 7.8 million pounds (3,542,556 kg) of recycled-content

plastics in flat-panel monitors and

Optic Plex desktops an increase of

6 percent over FY12.

THANK

YOU!