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Project For Innovation, Energy, and Sustainability
Guiding Principles of the Global Reporting Initiative
ByMike Korzelius
Trans Sustainability Global
Why Develop a Sustainability Report?
For the Following Reasons:1. Fundamental Shift in Economies
-Changing from an Industrial to an Information Economy
2. Pending Environmental Regulations-Clear Air Act, Clean Water Act, etc…
3. Financial Solvency -Financial Institution requirements, supplier/distribute requirement, Expenditure/Progress Tracking
4. Internal Communications/Marketing-Breaks down the barriers of successful implementation and increases market shares
Who Is Interested In Sustainability Reporting?
Sustainability
Customers
Employees
Shareholders
Government
NGO’sPeers
Associations
Financiers
Partners
Information Economy Due Diligence
A Sustainability Report will Reach all of these Parties
Who uses G.R.I.?
• 84% of the Global Fortune 250 Companies produce sustainability reports– 45% increase during global economic recession– Driven by economic concerns
• 81% of Top U.S. companies release Sustainability Reports as part of Financial Reporting
• GRI Sustainability Reporting is the most commonly accepted reporting format
GRI Reporting?
Global Reporting Initiative• Provides a Reporting Framework on how
organizations can disclose their sustainability practices
• Applicable to any organization (Public, Private, Commercial, Industrial, etc...)
• Gives an applicable framework to information seekers to compare organizations’ sustainability practices
G.R.I. History
• 1998-CERES Initiates a disclosure framework for sustainability information and receives foundation funding
• 1999-United Nations Environmental Programme joins CERES in GRI Framework Development
• 2000-First GRI Sustainability Guidelines are released
• 2002- CERES Funding Discontinued and GRI becomes a stand-alone entity
• 2004- GRI engages 450 Global Experts in sustainability, and develops first sector supplements
• 2006- Draft G3 Sustainability Reporting Guidelines are released for feedback- 270 Responses were received
• 2007- G3 Guidelines altered and adopted
GRI Framework
GRI Sustainability Report
Standard Disclosures
Core Indicators
Sector Supplements
All GRI G3 Sustainability Reports are generated under the same premise to ensure comparability to other organizations
Standard Disclosures
Consists of THREE “Standard Disclosures”:1. Strategy and Profile-
-Sets overall context for performance such as strategy, profile, & governance
2. Management Approach--Methods of addressing a given set of topics and drives performance
3. Performance Indicators--Indicators that elicit comparable information of the triple bottom line
Core Indicators
There are SIX Core Indicator Groups which:• Indicate strategic priorities• Describe broader trends effecting sustainability
priorities• Indicate key accomplishments, and failures during the
reporting period• Report target standing• Identifies medium term barriers (3-5 years)• Describes organization’s strategic approach
The Six Core Indicators
1. Economic Performance Indicators2. Environmental Performance Indicators3. Labor Practices Indicators4. Human Rights Performance Indicators5. Society Indicators6. Product Responsibility Indicators
Core Indicators
All Core Indicators consist of reporting for:1. Goals & Performance2. Policies3. Organizational Responsibility4. Training and Awareness5. Monitoring & Follow Up6. Additional Contextual Information
Economic Performance
Consists of NINE Indicator Conditions:• Describes the flow of capital among different
stakeholders, and• Main Economic impacts of the organization
throughout the society
Demonstrated by:• Economic Performance• Market Presence• Indirect Economic Impacts
Economic Indicators
Environmental Indicators
Labor Practices
Human Rights
Society
Product Responsibility
Environmental Indicators
The largest set of Indicator Conditions in the GRI• Consists of 30 Indicator Conditions– Measures impacts on living/non-living natural
systems– Performance related to inputs & outputs– Measures the internal policies, organizational
responsibility, training & awareness, and monitoring methods
Environmental
Environmental Indicators are measured by:•Materials •Biodiversity •Compliance
•Energy •Emissions, Effluent •Transport
•Water •Product & Services •Waste Generation
Environmental Indicators
Labor Practices
Human Rights
Society
Product Responsibility
Economic IndicatorsReport Indicators of:• Key Success & Shortcomings•Organization Risks & Opportunity•Major Changes•Key Strategies
Labor Practices
Labor Practices and Decent Work Consists of 14 Indicator Conditions which:
• Are based on Internationally recognized Universal Standards
• Concerns Five Disclosures:– Employment, Labor Relations, OSH,
Training & Education, Diversity
• Driven by two instruments;– ILO Tripartite Declaration Concerning
Multinational Enterprises & Social Policy– Organization for Cooperation and
Development (OECD)
Labor Practices
Human Rights
Society
Product Responsibility
Economic Indicators
Environmental Indicators
Human Rights
Consists of NINE Indicator Conditions which;• Consider human rights for investment and contractor/supplier
selection• Covers training on human rights regarding non-
discrimination. Freedom of association, child labor, indigenous rights, & compulsory labor
Drivers Consist of:• UN Charters regarding Human Rights
Human Rights
Society
Product Responsibility
Economic Indicators
Environmental Indicators
Labor Practices
Society Indicators
Consist of Eight Indicator Conditions which:• Monitoring and preventive actions regarding supply chain
Drivers consist of:• Performance and Certification Systems• Auditing Methods
Society
Product Responsibility
Economic Indicators
Environmental Indicators
Labor Practices
Human Rights
Product Responsibility
Consists of NINE Indicator Conditions
• Reports on effects of products on customers health and safety
• Products information and labeling• Marketing Methods & Customer
Privacy
Drivers consist of:• Compliance and Consumer Rights
Product Responsibility
Economic Indicators
Environmental Indicators
Labor Practices
Human Rights
Society
GRI Sector Supplements
GRI has established Sector Supplements for:
• Each supplement sector has its own Indicator Conditions
•Electric Utilities •Airports •Apparel & Footwear
•Financial Services •Construction & Real Estate •Automotive
•Food Processing •Event Organizers •Logistics & Transport
•Mining & Metals •Media •Public Agencies
•NGO’s •Oil & Gas •Telecommunications
Important Factors
1. Boundary Setting-Boundaries have to be inclusive enough, but not too broad
2. Quality Setting--A, B, or C style report, and do you want a plus (+) after it
3. Stakeholder Inclusiveness-How has the organization responded to their interests
4. Sustainability Context-Does it relate to the indicators?
MOST IMPORTANTLY
TRANSPARENCY!!!• Transparency about the sustainability of
organizational activities is of interest to a diverse range of stakeholders, including business, labor, NGO’s, investors, accountancy, and others…
Questions
Thank you for the opportunity to speak with you today
Mike KorzeliusTrans Sustainability [email protected]: transsustain.com
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