KEY CHALLENGES IN GLOBAL CORPORATE CITIZENSHIP

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Global Reporting Initiative
Judy HENDERSON
Chair, Global Reporting Initiative Australia
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AN INTRODUCTION TO THE GLOBAL REPORTING
INITIATIVE

• Dr Judy Henderson
• Chair
• Global Reporting Initiative

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THE GLOBAL CONTEXT

• Accounting failures have taken accountability
  from a business to a social issue Enron, Xerox,
  WorldCom
• Loss of public confidence in corporate governance
  
• Global markets mean global accountability which
  needs global standards
• New corporate value drivers need new measurement
  tools and information

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REPORTING ON THE RISE
Sustainability
Number of Reports
Environmental And EHS
www.globalreporting.org

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BASIC PROBLEMS AND OPPORTUNITY
Companies receive diverse information requests
Stakeholders receive incomplete information
A globally-accepted reporting framework developed
through a multi-stakeholder process
www.globalreporting.org
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TRANSPARENCY not OPTIONAL ESSENTIAL
www.globalreporting.org
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GRI MISSION
Design and continually improve reporting
guidelines reflecting the three dimensions of
sustainability economic, environmental, and
social Revised 2002 Guidelines issued
Elevate corporate sustainability reporting to be
as routine as financial reporting Developing
protocols and assurance guidance
Build a global and independent institution to
become steward of the Guidelines Incorporat
ed as Foundation in Netherlands with new Board
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GRI A BRIEF HISTORY

• Conceived in 1997 by CERES in partnership with
  UNEP
• Multi-stakeholder process rooted in principles of
  balance, transparency, independence
• Funded by foundations through 2002, now
  diversifying
• Moved from Boston to Amsterdam in Sept. 2002
• Governed by multi-stakeholder Board, Stakeholder
  Council and Technical Advisory Council

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GRIS PORTFOLIO
The Guidelines foundation document upon which all
other GRI documents are based
Technical protocols address a specific set of
indicators, providing technical guidance on their
measurement
The Guidelines
Energy Water Child labour
Sector supplements additional guidance for
specific sectors, addressing issues pertinent to
those industries
Issue supplements issue-specific supplements to
provide additional models for organising the
information
Automotive Financial Tourism Mining
Diversity Productivity HIV/AIDS
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REPORTING ELEMENTS
environmental
www.globalreporting.org
27 May, 2002
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WHAT IS A GRI REPORT?
Vision and Strategy Description of the reporting
organisations strategy with regard to
sustainability, with text discussion and a
statement from the CEO Profile Overview of the
reporting organisations structure, policies and
management systems, including stakeholder
engagement efforts Governance structure and
management systems Description of organisational
structure, policies and management systems
including stakeholder engagement efforts GRI
content index A table supplied by the reporting
organisation identifying where the information
listed in the Guidelines is located within the
report Performance indicators Measures of the
impact or effect of the reporting organisation
divided into economic, environmental and
social
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SUSTAINABILITY REPORTING PRINCIPLES

• Transparency
• Inclusiveness
• Sustainability context
• Completeness
• Relevance

• Neutrality
• Comparability
• Accuracy
• Clarity
• Timeliness
• Auditability

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GRI COMPLEMENTARY INITIATIVES
Management Systems Standards
Codes of Conduct
GRI seeks to harmonise and integrate
Intangibles Accounting
Performance Standards
GRI

• GRI as a core platform for sustainability
  reporting

Issue/ Sector/Natl Reporting Guidelines
International Conventions
Assurance Standards
www.globalreporting.org
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WHY COMPANIES USE THE GUIDELINES

• Benchmark and enhance efficiency
• Internal management improvements
• Stakeholder consultation
• Attract employees and investors
• Manage risk and protect reputation

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EXPOSURE AT WSSD IN JOHANNESBURG

• Launch of 2002 Guidelines
• GRI reference in official documentation
• GRI reference by heads of government and UN
  Secretary-General
• GRI recognised mechanism for demonstrating
  adherence to Global Compact

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2002 GUIDELINESWHATS NEW?

• Reformulated reporting principles
• Strengthened social and economic content
• Core versus additional indicators
• Clarity on flexibility
• Guidance on assurance

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BALANCING FLEXIBILITY COMPARABILITY
IN ACCORDANCE
Transparency
Structure
Incremental Reporting
INFORMAL
Coverage
www.globalreporting.org
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IN ACCORDANCE REQUIREMENTS

• Report on vision, profile of organisation and
  governance and management systems  
• Include a GRI Content Index.  
• Report on the core performance indicators.
  Omission of each core indicator must be explained
   
• Ensure that the report is consistent with the
  reporting principles
• Include a statement by the Board or CEO as
  follows This report has been prepared in
  accordance with the 2002 GRI Guidelines. We
  believe that this report is a balanced and
  reasonable representation of our organisations
  sustainability performance.

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VERIFICATION ASSURANCE

• Key to strengthening credibility
• 2002 Guidelines encourage the independent
  assurance of reports and the development of
  standards and guidelines for the assurance
  process

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CHALLENGES AHEAD

• Strengthening/explaining linkages to financial
  reporting and financial industry
• Strengthening harmonisation with key complements,
  e.g., ISO, EC CSR, AA1000S
• Rolling out supplements and protocols
• Expanding engagement SMEs, sectors, regions,
• Harmonisation with government initiatives

www.globalreporting.org
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GLOBAL REPORTING INITIATIVE
"Another important development is the growing
support for the Global Reporting Initiative,
which offers a coherent framework for reporting
on environmental and social issues. It is a
crucial complement to the Global Compact, and I
am very pleased that the United Nations
Environment Programme is a driving force behind
both of them."Kofi Annan UN Secretary General1
September 2002
www.globalreporting.org