Reporting on SDGs –

challenges and opportunities

Teresa Fogelberg

GRI Deputy Chief Executive

GLOBAL BUSINESS FORUM ON

THE SUSTAINABLE DEVELOPMENT GOALS

Madrid, 1 - 2 October 2018

Reporting on SDGs – challenges and opportunities

Teresa Fogelberg,

GRI Deputy Chief Executive

GLOBAL BUSINESS FORUM ON THE SUSTAINABLE DEVELOPMENT GOALS

Madrid, 1 - 2 October 2018

Presentation structure

I. Business & SDG – how included at formal UN process?

II. Corporate sustainability reporting and the SDGs

III. Action Platform Reporting on the SDGs

GRI

Who We Are

We are an international

independent organization that

has pioneered sustainability

reporting for two decades.

Our work and approach

We help businesses and governments understand and

communicate their impact on critical sustainability issues.

Multi stakeholder (650 business Gold Community members)

Key partners: IOE, UN Global Compact, UNDP and PRI

Alignment with reporting frameworks: IIRC, OECD, SASB et al

Business and the SDGs

The Annual High Level Political Forum on the SDGs

• Central platform for follow-up and review of the 2030 Agenda for Sustainable Development and SDGs

• Meet once a year in New-York

• Member States progress are reviewed through the voluntary national review

Business role in the Voluntary National Review at the HLPF Key figures and facts

2016 2017 2018

22 43 47 countries presented their VNR

85% 93% 94% consulted private sector for the review

90% 68% 67% recognize the private sector investment as key for the SDGs

50% 59% 58% refer to CSR & corporate sustainability reporting (Spain!!)

How do governments perceive the business role in SDGs? UN Voluntary National Review in 2018

Key figures and facts

• Use of private sector data –

• Present business sustainability practices –

• Address sustainability corporate reporting –

Other trends

• Perceived SMEs as key actors for the SDGs –

• Cite public procurement policies and sustainability for public companies –

• Provide sustainability training for business –

• Want business to finance the SDGs –

• Enable a good business environment for the SDGs –

• Business and innovation is key –

8 out of 46

9 out of 46

17 out of 46

25 out of 46 (51%)

13 out of 46

9 out of 46

32 out of 46

10 out of 46

18 out of 46

Corporate sustainability reporting and the SDGs

The Power of Corporate Sustainability Reporting

• The practice of disclosing sustainability information inspires accountability, helps identify and manage risks, and enables organizations to seize new opportunities.

• Reporting supports companies to protect the environment and improve society, thrive economically by improving governance and stakeholder relations, enhancing reputation and building trust.

GRI is committed to:

• Enable businesses to identify and communicate their contribution to the SDGs

• Align with other initiatives, frameworks, and relevant roganisations, including IOE

• Engage more businesses to report as a response to the SDGs

SDGs and the private sector Figures on companies referring to the SDGs in the report

6%

align to specific SDG

targets & measure

contributions

45%

align their

strategy to SDGs

79%

acknowledge the

SDGs

WBCSD companies members Reporting Matters Report 2017

43%

of G250

reporters link CR

activities to the

SDGs

39%

of N100

reporters link CR

activities to the

SDGs

KPMG 2017 Survey report

Business Reporting on the SDGs An Action Platform to accelerate corporate reporting on the Global Goals 2016 - 2018

Ambitions in shaping the future of SDG reporting

• More Straightforward Relevant Indicators

• Easier to understand Guidance for Business Practitioners

• Accessible to all users Aggregation of data

Reporting on the SDGs Action Platform Engaging leading businesses and non-corporate stakeholders

• The Corporate Action Group (CAG) serves as a business engagement and peer learning forum,

More than 40 business representatives from across the globe demonstrate leadership by helping define and promote their contributions to the SDGs.

Reporting on the SDGs Action Platform Impressions from the launch meeting

https://www.youtube.com/watch?v=TXILR4OND9M&feature=youtu.be

Business Reporting on the SDGs

SDG Compass

Developed in 2016 with UN Global Compact

and WBCSD

It provides an introduction to the

SDGs and how to align the SDG to your

business strategy and reporting. This tool is

aimed at new reporters or non experienced

reporters.

The Analysis of Goals and Targets

Developed in 2017 with UN Global Compact

and PwC

It provides a list of potential business

actions and existing disclosures from

established sources that business can use to measure and report on their contribution to the SDGs at the level of

the targets.

Integrating the SDGs into corporate

reporting: the practical guide

Developed in 2018 with UN Global Compact

and PwC

It outlines a three-step process to embed the

SDGs in existing business and reporting processes in alignment with GRI Standards and recognized principles

In Focus: Addressing investors needs into

business reporting on the SDGs

Developed in 2018 with UN Global Compact and PRI

It aims to provide guidance to business reporting

practitioners to better align their SDG-related

disclosures with investors’ information needs.

Building on the first tool developed in 2015 The SDG Compass

• Partnership between GRI, UN Global Compact and the World Business Council on Sustainable Development

• Guide companies how they can align their strategies, measure and manage their contributions to the SDGs

• A written guide and two online tools www.sdgcompass.org

Making business contributions happen The SDG Compass

Five practical steps: 1. Understanding the SDGs 2. Defining priorities 3. Setting Goals 4. Integrating 5. Reporting and Communicating

2 online tools:

• Inventory of business indicators mapped against the SDGs and the targets

• Inventory of Business Tools for impact assessment mapped against the SDGs and targets

Download the full guide on sdgcompass.org

Promoting effective and principle-based reporting on the SDGs: three connected guides

Business Reporting on the SDGs The Analysis of Goals and Targets

• Lists examples of illustrative business actions

• Lists established disclosures business can use to report

• Points to disclosure gaps

• Contributes towards developing an harmonized set of SDG disclosures

• Developed with the support of PwC. Integrates input from around 40 organizations, including 7 UN institutions

Example

Reporting on the SDGs

An Action Platform to accelerate corporate reporting on the Global Goals

Elements for each targets:

• Possible relevant business

actions

• Disclosures

• Possible gaps

Business Reporting on the SDGs The Practical Guide - Reporting on the SDGs

Step 1: Define priority SDG targets

Step 1.1 Understand the SDGs and

their targets

Actions • How do the goals related to

your business? • Reflect on risks and

opportunities related to people and the environment

• Consider the interconnected nature of the Goals

Outcomes

With this overview in mind, you are ready to identify the priority SDG targets for your

company

Step 1.2 Conduct principled

prioritization of SDG targets

Actions • Assess the most severe risks

on people and the environment linked to your operations and value chain

• Identify SDG targets you can best contribute through beneficial products, services or investments

Outcomes

Two sets of priority SDG targets

Step 1.3 Define your SDG-related

report content

Actions • Check if your priority for

risks and for beneficial products overlap

• Consult with your stakeholders about the set of priority and the process undertaken

• Consider the risks to business

Outcomes

Final set of priority SDG targets

Step 1: Define priority SDG targets

Example outlining the identification of risk and interconnectedness of SDGs across an apparel

value chain

Example outlining the identification of SDG targets you can best contribute to through beneficial products, services or investments

Tailor existing products or services to meet te needs of the marginalized and discriminated groups who face barriers to access education, jobs and basic services An ICT company could apply its technologies in ways that advance SDG 4 on quality education by making its products available to local schools

Providing technologies to children in remote communities to access education will contribute also to SDG target 8.7 to eradicate child labour and possibly reduction in poverty related to SDG 1

Step 2: Measure and analyze

Step 2.1 Set business objectives

Actions • Go beyond avoiding harm

and maximize positive outcomes

• Mind the trade-offs between positive and negative impacts

• Consult with your stakeholders regarding your objectives

Outcomes

List of objectives aligned with SDG strategy

Step 2.2 Select appropriate

disclosures

Step 2.3 Collect and analyze data

Actions • Identify the indicators for

your SDG priority targets • Use the Analysis of Goals

and Targets to find relevant disclosures for each SDG targets

• For disclosure gaps, use GRI303: Management Approach for guidance

Outcomes List of indicators linked to

SDG priority targets and objectives

Actions • Identify and collect data for

each indicator regularly • Evaluate the data gaps and

regularly review your data management strategy

• Disaggregate your data if necessary

Outcomes Collect data and adjust the

data management strategy

Example of indictors relating to water purification at different levels of a company’s

operations

Example of data collection in relation to SDG 8 on decent work and economic growth, including an

assessment of data sources and follow-up of actions planned

Step 2: Measure and analyze

Step 3: Report and implement change

Step 3.1 Consider general features

of good practice when reporting on the SDGs

Actions • Consider the 4C’s for

effective reporting • Present your priority SDG

targets in broader context of sustainability

• Link the information disclosed to relevant international commitments and reporting requirements

Outcomes

Decide on the structure and main content of your internal

and external reports

Step 2.2 Consider data users’ information needs

Step 2.3 Report and implement

change

Actions • Consider the information

needs of Governments • Consider the information

needs of investors • Consider the information

needs of civil society, academia and consumers

Outcomes Provide a basis for

informing stakeholders insights and decisions

Actions • Assess if you are meeting

your objectives and reflect on improvement

• Review and assess reporting cycle

• Look for strategic partnerships

Outcomes Drive informed decision

making and integrate the SDGs into your company’s strategy

Checklist – What to set out in your report? Example of general features of good practices when reporting on the SDGs

Step 3: Report and implement change

Align with global frameworks: Demonstrate how your efforts to help mitigate climate change contribute to the Paris Agreement and the TCFD recommendations Align with local and national policies: A context based approach to corporate water stewardship can contribute to reduce water risk and to long-term water security by aligning to local and state water policy connected to the SDGs

Reporting on the SDGs Action Platform Phase II , starts in January 2019

Filling disclosure gaps related to SDG targets: explore ways to filling the gaps identified in the

‘Analysis of the Goals and Targets’ where relevant business disclosures and indicators to report are

missing or not yet globally established.

Mine and aggregate SDG data from the private sector: Explore ways at the global level and

the national level on how corporate SDG data can be mined, aggregated and analyzed to increase

understanding about business contributions and impact on the SDGs.

Featuring case studies on SDG reporting: Select and assess practices of corporate SDG

reporting process to highlight challenges, lessons learned and recommendations.

info@globalreporting.org

www.globalreporting.org

Barbara Strozzilaan 336

1083 HN Amsterdam

The Netherlands

Amsterdam – Beijing – Bogota – Johannesburg – New Delhi – New York – São Paulo

THANK YOU

PRACTICAL GUIDE

• Collaboration with Colombian businesses

• Selection of 8 indicators

• Data mining and aggregation from at least 50 companies

from various sectors and sizes

• Findings ready in June 2018

• Key findings feed into NVR HLPF 2018

• Lessons learnt, preliminary recommendations way ahead

Data mining and aggregation National Level: Pilot Colombia for NVR

• Analysis of 31 indicators linked to

SDGs targets

• CAG participants: 52 global

companies

• Partnership with PRME, Wikirate and

the University of Wollongong in

Australia

• Lessons learnt, preliminary

recommendations way ahead

Data Mining and Aggregation Global Level: Pilot CAG Companies