DHV/SNS/VBDO Seminar on Sustainable Investment, Utrecht ... · 14 August 2002 ACCOUNTABILITY : THE...

THE GRI : STRENGTHENI NG SUSTAI NABILI TY AND CORPORATE ACCOUNTABI LITY I N THE C21st.

DHV/ SNS/ VBDO Sem inar on Sustainable I nvestm ent ,Ut recht , 22 October 2002

Paul HohnenDirector, St rategic Development GRI

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Overview

X GRI : the internat ional context

X 2002 Guidelines

X What ’s next?


GRI : A BRI EF HI STORY

X Conceived in 1997 to address r ising internat ional expectat ions for accountabilit y

X Convened by CERES in partnership with UNEP

X Mult i-stakeholder process rooted in principles of balance, t ransparency, independence

X Funded by foundat ions through 2002, now diversifying

X Move from Boston to Amsterdam by Sept . 2002

X Governed by mult i- stakeholder Board, Stakeholder Council and Technical Advisory Council

BASI C PROBLEMS … AND AN OPPORTUNI TY

Com panies receive diverse inform at ion

requests

Stakeholders receive incom plete inform at ion

A globally-accepted report ing fram ework developed through a

m ult i- stakeholder process

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X Elevate econom ic, environm ental and social report ing to rout ine pract ice and to the highest standards of r igor and com parabilit y

X Design and cont inually im prove report ing guidelines reflect ing the three dim ensions of sustainabilit y: econom ic, environm ental, and social.

X Create a global and independent inst itut ion to becom e steward of the Guidelines.

GRI MI SSI ON

GRI ’S PORTFOLI O


GRI ’S PORTFOLI O (cont ’d)

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SUPPLEMENTS AND PROTOCOLS

Sector Supplem ent Pilots

X First Wave: Automot ive, Tourism , Financial Services-social, Telecom

X Second Wave in negot iat ion/ considerat ion: Financial services-environment , pharmaceut icals, chem icals, m ining

Protocol Pilots

X Child labour

X Energy use

X Water use

GRI & COMPLEMENTARY I NI TI ATI VES

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Managem entSystem s

Standards

GRI

GRI seeks to harm onise and integrate

GRI as a core plat form for sustainabilit y report ing

9

I ntangiblesAccount ing

I ssue/Sector/ Nat ’lReport ingGuidelines

I nternat ionalConvent ions

Codesof

Conduct

Perform anceStandards

AssuranceStandards

August 2 0 0 2

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GRI : COMPLEMENTARY BUT DI FFERENT

X I s a report ing standard

X Not a perform ance standard (e.g. SA 8000)

X Not an internal m anagem ent standard (e.g I SO)

X Not an assurance standard (e.g. AA1000S)


GRI REPORTERS

X > 130 reporters from 21 count r ies

X USA, UK, and Japan are early adopters

X > $1.5 t r illion in revenues

X 45 com panies part icipated in pilot program m es

GRI REPORTERS BY COUNTRY

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2

3

4

5

5

6

6

6

8

8

13

19

24

25

0 5 10 15 20 25 30

New Zealand

Spain

Finland

South Africa

France

Countries with 1 report each

Germany

Canada

Netherlands

Australia

Sweden

Japan

UK

USA


GRI BOARD OF DI RECTORS

X Roger Adam s (United Kingdom ) - - Associat ion of Chartered Cert ified Accountants

X Jacqueline Aloisi de Larderel(France) - - United Nat ions Environm ent program m eme

X Fabio Feldm ann (Brazil) - -former Secretary of Environm ent ,São Paulo

X Toshihiko Goto (Japan) - -Environm ental Audit ing Research Group

X Judy Henderson (Aust ralia) - -im mediate-past Chair , Aust ralian Ethical I nvestment Ltd

X Hanns Michael Hölz (Germ any) - - Deutsche Bank Group

X Jam shed J. I rani ( I ndia) - - TataSons Lim ited

X Robert Kinloch Massie(United States) - - CERES

X Mark Moody- Stuart (United Kingdom ) - - ret ired Chair , Royal Dutch/ Shell

X Anita Norm ark (Sweden) - -I nternat ional Federat ion of Building and Wood Workers

X Nyam eko Barney Pityana(South Afr ica) - - University of South Afr ica

X Barbara Shailor (United States) – AFL-CI O

X Bjorn St igson (Sweden) - -World Business Council for Sustainable Developm ent

X Peter H.Y. W ong (China) - -Deloit te Touche Tohmatsu


ACCOUNTABI LI TY : THE GLOBAL CONTEXT

X Revisit ing the corporate licence to operate in 2 1 st

century

X Account ing failures have taken accountability from a business to a social issue: Enron, W orldCom , etc.

X Corporate governance under scrut iny

X Global m arkets> global accountability> global standard

X New corporate value dr ivers need new m easurem ent tools and inform at ion

X Rising t ide of governm ent interest in non- financial report ing

….in both North and South


New I nternat ional Report ing Environm ent

Governm ents agree to “ enhance corporate environm ental and social responsibilit y and accountability” , by encouraging indust ry “ to improve social and environmental performance through voluntary init iat ives … such as … the Global Report ing I nit iat ive…” .

UN World Summ it : Plan of I m plem entat ion, para. 17


SOME RESPONSES: NGO, SEC, GOV’T

X World Summit : Pressures for I nternat ional Convent ion on Corporate Accountabilit y

X US - SEC and NYSE act ions to t ighten disclosure and governance standards

X S. Afr ica: King 2 Commission/ Mandatory Code of Conduct / references GRI Report ing on JSE

X EU- Parliam ent Resolut ion supports GRI ; EC Green Paper July 2002 Comm unicat ion references GRI

X UK- Corporate Responsibilit y Coalit ion (CORE) references GRI


THE ACCOUNTABI LI TY I MPERATI VE

X “…social, ethical and environm ental issues…can no longer be regarded as secondary to more convent ional business im perat ives

South Afr ica : King 2 Report on Corporate Governance, 2 0 0 2


REPORTI NG ON THE RI SE

X A recent survey by KPMG found that 45% of the world’s largest 250 com panies now produce reports on environm ental and social issues.

X This figure is up from 35% in 1999.

Financial Tim es, 23 August , 2002


MONEY LI STENS

X Johannesburg Stock Exchange

X Dow Jones Sustainabilit y I ndex

X I nvestor Responsibilit y Research Center ( I RRC) cr iter ia

X ACCA awards cr iter ia


STAKEHOLDER OUTREACH

X Briefings in 2002 – Asia, Aust ralia, I taly, South Afr ica

X Pilot Test – Cent ral/ Eastern Europe

X World Sum m it in Johannesburg

X 15,000 Guidelines dist r ibuted

X > 1,800 I ndividual Stakeholders from 77 count r ies

X Conferences, m edia relat ions, website


2002 Guidelines

X Launched in Johannesburg 31 August , 2002

X Update June 2000 edit ion

X Major changes based on consultat ions

X Measurem ent WG Report on web


Key Differences

X More ‘User Friendly’

X I ndicators ‘Core’/ ’Addit ional’

X Econom ic & social performance indicators enhanced

X Enhanced report ing pr inciples

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Past June 2 0 0 0 2 0 0 2

Low

High

Environm ental

Socia l

Econom ic

Future

Con

sen

sus

CONSENSUS ON I NDI CATORS

2 7 May, 2 0 0 2


Key Differences

Bet ter art iculat ion of different ways to use the Guidelines

X I nformal ( i.e. non system at ic)

X I ncremental (system at ic)

X I n Accordance ( respond to all)

Tran

spar

ency

Coverage

St ru

c tur

e

Incremen

tal Rep

orting

BALANCI NG FLEXI BI LI TY & COMPARABI LI TY

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INFORMAL

IN ACCORDANCE


“I N ACCORDANCE” REPORTI NG

* REPORTERS MAY CHOOSE TO REPORT “I N ACCORDANCE” WI TH THE GRI .

* THI S NEW CATEGORY I S DESI GNED FOR REPORTERS WHO WI SH TO SHOW THEI R COMMI TMENT TO MULTI -STAKEHOLDER PROCESS; GRI ; TRANSPARENCY; I NTERNAL BENCHMARKI NG.


“I N ACCORDANCE”

1 . Report on the organisat ional profile , governanceand m anagem ent system s.

2 . Respond to each core indicator by either ( a) report ing on it , or ( b) explaining its om ission .

3 . I nclude a GRI Content I ndex, linking GRI com ponents to inform at ion actually contained in the report .

4 . Ensure that the report is consistent w ith GRI ’s report ing principles.

5 . I nclude a statem ent signed by the Board or CEOindicat ing that the report w as prepared in accordance w ith the 2 0 0 2 GRI Guidelines and represents a balanced and reasonablepresentat ion of the organisat ion’s sustainability perform ance.


WHAT’S NEXT?

X ESTABLI SH STAKEHOLDER AND TECHNI CAL ADVI SORY COUNCI LS

X CONSOLI DATE AMSTERDAM SECRETARI AT

X EXPAND REGI ONAL PRESENCE/ ENGAGEMENT

X DEVELOP MULTI -YEAR WORKPLAN

GOVERNANCE

Secretariat

Organisat ional Stakeholders(unlim ited)

Board(15)

Stakeholder Council

(60)

Technical Advisory Council(10-15)

Key

Elects/Appoints

Supports

Advises/Recommends

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WHAT’S NEXT?

X EXPAND CORPORATE UPTAKE

X ROLL-OUT SECTORAL SUPPLEMENTS

X EXPAND APPLI CATI ON TO SMEs

X EXPAND FI NANCI AL COMMUNI TY USE

X STRENGTHEN ALI GNMENT ( I LO, EU)


AT& T Baxter I nternat ionalBody Shop

I nternat ionalBr istol- Myers Squibb Br it ish Airw ays BTDanoneDeutsche TelekomElect roluxESAB EricssonFord Motor Com pany Fuj i XeroxGenera l Motors HenkelI NG BankI TT/ Flygt

SasolScandiflexSevern Trent ShellSouth Afr ican Brew eriesSuezSuncor EnergySunoco Telst ra Tham es W ater TransAlta TXU EuropeVanCity Savings Credit

Union Vauxhall Motors LtdVolksw agen W MC

Johnson & JohnsonKir in Brew ingKLMKonica McDonald ’sNECNikeNissanNokiaNovo Nordisk Procter & Gam ble RabobankRenfe RicohRoyal Philips

Elect ronicsSaint - GobainSAS

GRI REPORTERS – A SAMPLE


AN I NVI TATI ON TO ALL ORGANI ZATI ONS

X “GRI encourages the use of the GRI fam ily of documents by all report ing organisat ions, regardless of their experience in preparing sustainability reports”

Source: 2 0 0 2 GRI Guidelines

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