Communication on Progress

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• Communication on Progress
• Public transparency and accountability are the
  cornerstones of the Global Compact
• Georg Kell

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COPs Submitted, by Join Year
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Current Participant Status
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Current SME Status
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• The COP in context

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Sustainable reporting trends

• Learning curve
• Anecdotal (little data)
• EMS/ISO 14001
• Triple bottom line e.g. GRI
• Integrated reports
• http//www.sustreport.org/business/report/trends.h
  tml

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Why are companies issuing sustainability reports?
What is the value proposition for sustainability
reporting?

• Companies are issuing sustainability reports for
  numerous reasons, including the following
• To demonstrate their interest in To demonstrate
  their commitment to and efforts involving human
  rights, fair labor policies, health of the
  environment, their employees and the communities
  they serve
• To promote transparency as a means of leveling
  the playing field
• To build and maintain relationships (solicit
  feedback) with external parties
• To better manage and communicate risk
• To enhance or protect their reputation
• To grow shareholder and brand value
• To increase market share
• http//www.aicpa.org/innovation/baas/environ/faq.h
  tm

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DIRECTIVE 2003/51/EC OF THE EUROPEAN
PARLIAMENTAND OF THE COUNCIL of 18 June 2003

• The review shall be a balanced and comprehensive
  analysis of the development and performance of
  the business and of the position of the
  undertakings included in the consolidation taken
  as a whole, consistent with the size and
  complexity of the business.
• To the extent necessary for an understanding of
  such development, performance or position, the
  analysis shall include both financial and, where
  appropriate, non-financial key performance
  indicators relevant to the particular business,
  including information relating to environmental
  and employee matters.

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Obstacles

• Company liquidation/bankruptcy
• Scarce resources
• Lack of understanding of CSR or reporting
• Change in leadership (not internalized in the
  company culture)
• Free-riders

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Methods?

• GRI's Sustainability Reporting Guidelines
• The International Organization for
  Standardization (ISO) 14001 for environmental
  management systems and ISO 14031 for
  environmental performance evaluation
• The Coalition for Environmentally Responsible
  Economies (CERES) Principles.
• AA1000
• SAI
• Homegrown Methods

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• What are we after?
• We thrive and survive on planet earth as a
  single human family. As Benjamin Franklin said at
  the signing of the Declaration of Independence,
  "We must all hang together, or assuredly we shall
  all hang separately." His words still resonate.
  In an age of globalization, our interdependence
  deepens with every passing day. And one of our
  main responsibilities is to leave to successor
  generations a sustainable future.

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Innovation the operating mode of CSR, driving
progress
The development of an economythat works for
all,now and in the future,within the limitsof
the planet
Transparency and Public Accountability helps
ensures the transition towards...
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How can reporting act as a scaling agent for
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Reporting is part of Process

• Therefore failures to report are failures in
  process
• Three places to look for process improvements
• Companies
• GCO
• Local Networks

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• Companies

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Reporting is part of a cycle of improvement

• Act on the top opportunities by setting specific
  performance objectives
• Plan the resources and steps to achieve the
  objectives
• Do what is planned to reach the objectives
• Check the results achieved against objectives and
  plans
• Act to correct deviations, integrate learning
  from doing and setobjectives for further
  improve-ments

Set goals
Act
Statusassessment
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Performance enablers
Vision

• Business strength is based on elements that,
  together, are necessary and sufficient to ensure
  excellence in every objective the business
  chooses to pursue.
• Competitive advantage
• balance and perfect integration, difficult to
  imitate because performance skills and tools vary
  with activity and the cultural environment where
  the business operates.
• However, elements are universal and independent
  of size and activity.

Leadership
enablers
Resources
Policies Strategy
Empowerment
Processes Innovation
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Holistic results

• Results include
• The core financial and direct operational output
  parameters.
• Impacts and benefits for society
• The perception by employees and key partners in
  the value chain.

Impact onvaluechain
Impact onpeople
Impacton society
results
Reporting
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Not the only model
Source KPMG 2002adaptation from
Kaplan/NortonBalanced Score Card
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The path is the goal ...the change escalator
Why are we doing?How can we do better?
Communication on Progress
results
?
continuousimprovement
stage of integrating
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• GCO

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2006

• Inactives
• FAQs
• Process Improvements
• Due Diligence
• Progress and Value Workshops
• Introduce Notable Criteria

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2007

• Process Improvements
• COP Review Project
• Quality Feedback
• Scale P and V workshop
• Network Work Plan Best Practices
• Guidance improvements
• Refine Notable Criteria
• IAT Training

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Guidance Documents
Coming soon SME Guide, The Value of
Communicating Progress, and Networks Guide
Revision process underway
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Next Steps

• Remove participants from the inactive list after
  one year of inactivity.
• Refine efforts to support Local Networks.
• Further develop the model that differentiates the
  leaders from the beginners.
• Promote the use of the COP contents by
  stakeholders.
• Strengthening of the GCs relationship with CSR
  implementation schemes.

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• Networks

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What Networks are doing

• COP workshops
• Translations
• Templates and Tools
• Connecting to the local CSR community and
  leveraging existing and emerging incentive
  structures
• Local / Direct Support and Encouragement

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Lessons from the field

• Engage early. Once companies become non
  communicating they are likely to become Inactive.
• Make the COP part of your networks work plan.
  Those networks with COP work plans have the
  highest rate of success.
• Manage expectations within your network. There
  will be a rate of attrition.

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What is a Communication on Progress?

• A COP is a communication to stakeholders on the
  progress the company has made in implementing the
  ten principles and forming partnerships in
  pursuit of wider UN goals.

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• The COP

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What does a COP achieve?

• Ensure and deepen the commitment of Global
  Compact participants
• Safeguard the integrity of the initiative
• Create a rich repository of corporate practices
  that serves as a basis for continuous performance
  improvement.

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COP Policy -timeframe
Company joins Global Compact
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COP Policy -timeframe
Company joins Global Compact
COP submitted within 2 years of join date
Next COP due in 1 year
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COP Policy -timeframe
Company joins Global Compact
COP submitted within 2 years of join date
COP not submitted within 2 years of join
date. Company listed as non- communicating
COP submitted within 2 years of join date
Next COP due in 1 year
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COP Policy -timeframe
Company joins Global Compact
COP submitted within 2 years of join date
COP not submitted within 2 years of join
date. Company listed as non- communicating
COP submitted N/C flag removed
Next COP due in 1 year
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COP Policy -timeframe
Company joins Global Compact
COP submitted within 2 years of join date
COP not submitted within 2 years of join
date. Company listed as non- communicating
COP submitted N/C flag removed
Next COP due in 1 year
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COP Policy -Timeframe
Company joins Global Compact
COP submitted within 2 years of join date
COP not submitted within 2 years of join
date. Company listed as non- communicating
Company inactive (de- listed) 1 year after
classified as Non Communicating
COP submitted N/C flag removed
Next COP due in 1 year
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COP Policy -Timeframe
Company joins Global Compact
COP submitted within 2 years of join date
COP not submitted within 2 years of join
date. Company listed as non- communicating
Company inactive (de- listed) 1 year after
classified as Non Communicating
COP submitted N/C flag removed
COP submitted company re-instated
Next COP due in 1 year
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COP Policy -Timeframe
Company joins Global Compact
COP submitted within 2 years of join date
COP not submitted within 2 years of join
date. Company listed as non- communicating
COP submitted N/C flag removed
Company inactive (de- listed) 1 year after
classified as Non Communicating
COP submitted company re-instated
Next COP due in 1 year
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COP Policy -Timeframe
Company joins Global Compact
Grace Period A 45 day grace period will be
granted to companies that contact the Global
Contact Office and request an extension.
COP submitted within 2 years of join date
COP not submitted within 2 years of join
date. Company listed as non- communicating
Company inactive (de- listed) 1 year after
classified as Non Communicating
COP submitted company listed as active
COP submitted company re-instated
Next COP due in 1 year
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What active, inactive non-communicating
actually means
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What do I need to do to fulfill the COP
requirement?

• Step 1) Create an annual Communication on
  Progress
• Step 2) Share the COP with the companys
  stakeholders
• Step 3) Submit the COP to the Global Compact
  website.

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Step 1) Creating an annual Communication on
Progress

• While there is no single structure for the
  creation of a COP, a COP must include
• Element 1 A statement of continuing support
• Element 2 Description of practical actions
  related commitments, policies, systems and
  activities.
• Element 3 Measurement of outcomes use of the
  GRI G3 Guidelines is recommended.
• Ideally, COPs should be integrated into a
  companys existing communication with
  stakeholders, such as an annual financial or
  sustainability report.
• A COP is not a communication with the United
  Nations Global Compact Office.

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Step 2 ) Sharing the COP with the companys
stakeholders

• Companies should use those platforms and channels
  where their stakeholders would expect to find
  sustainability information (e.g. websites, direct
  mailings, employee alerts, open houses) to share
  their COP.

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Step 3) Submitting the COP to the Global
Compact website

• In addition to sharing the COP with stakeholders,
  companies are expected to post an electronic
  version (and web link if available) of their COP
  on the Global Compact website.

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Hints and Tips
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Choose your Language

• A companys COP should be created in the language
  which is most appropriate for the companys
  stakeholders.

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Define the Scope

• There is no expectation that small companies will
  be able to provide as much depth and breadth in
  their COPs as multinational companies.
• There is no expectation that all ten principles
  will be covered in every COP, nor that all ten
  principles will be addressed to the same extent.

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Dont start from scratch

• Your company is likely already doing things in
  relationship to the ten principles.

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Be Specific

• Dont try to cover all ten principles with an
  overarching statement.
• Move away from generic statements (e.g., we have
  a training program for suppliers) to more
  specific descriptions (e.g., we trained 50
  suppliers on how to improve their spill response
  performance).

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Include Local Action/Indicators

• The headquarters of multinational companies may
  report for their participating subsidiaries -
  however this reporting must cover local action
  and indicators.

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Structure your Report around the principles

• A COP needs to be structured in such as a way so
  that the report communicates clearly the progress
  in implementing the ten principles.

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Contact Details - COP Manager