From the GRI to the UNGC Criteria for the GC Advanced Level. Using your GRI Index to complete the UNGC Advanced Level assessment

Transcription

1 From the GRI to the UNGC Criteria for the GC Advanced Level Using your GRI Index to complete the UNGC Advanced Level assessment 1

2 Cross-References: GRI Indicators to UNGC Criteria for the GC Advanced Level The information presented here is based on the Global Reporting Initiative s GRI G3 Sustainability Reporting Guidelines and the United Nations Global Compact s 2012 update to the Criteria for the GC Advanced Level. Framework LLC developed this tool in order to help companies who are participating in the LEAD program to complete the UN Global Compact Advanced Level Assessment. (Please note that the program is not currently accepting new members.) GRI G3 Guidelines 2012 Criteria for the GC Advanced Level 2

3 Criterion 1: Key aspects of the company s high-level sustainability strategy in line with Global Compact principles Impact of broader sustainability trends on the long-term prospects and financial performance of the organization Major sustainability risks and opportunities in the near to medium term (3-5 years) Social and environmental impact of the organization s activities (Major positive and negative impacts on the company s operating environment and stakeholders) 1.1, 1.2, EC2 1.2, material issues (4.17), DMAs 1.2, material issues (4.17), stakeholder engagement ( ), DMAs Strategy, Governance, Engagement 3

4 Criterion 2: Effective decision-making processes and systems of governance for corporate sustainability Involvement and accountability of management (C-suite) in developing corporate sustainability strategy in line with Global Compact principles and overseeing its implementation Corporate governance structure (Board of Directors or equivalent) and its role in oversight of long-term corporate sustainability strategy and implementation in line with Global Compact principles. Goals and incentive schemes for management (C-suite) to promote sustainability strategy in line with Global Compact principles 4.5, Managing for sustainability section, DMAs , , Managing for sustainability section 4.5, Managing for sustainability section, DMAs Strategy, Governance, Engagement 4

5 Criterion 3: Engagement with all important stakeholders Regular stakeholder consultations in the area of human rights, labor, environment and anticorruption. List of stakeholder groups engaged by the organization , Stakeholder engagement section 4.14 Process for stakeholder identification and engagement 4.15 Outcome of stakeholder involvement 4.17, Material issues Process of incorporating stakeholder input into corporate strategy and business decision making. 4.17, DMAs Strategy, Governance, Engagement 5

6 Criterion 4: Actions taken in support of broader UN goals and issues Adoption or modification of business strategy and operating procedures to maximize contribution to UN goals and issues Development of products, services, and business models that contribute to UN goals and issues Social investments and philanthropic contributions that tie in with the organization s core competencies, operating context and sustainability strategy. Public advocacy on the importance of one or more UN goals and issues. Partnership projects and collective actions in support of UN goals and issues. 1.1, 1.2, 4.8, 4.12, 4.13 Products/services aimed at the base of the pyramid Diversity, philanthropy, and base of the pyramid offerings SO5, diversity, philanthropy, base of the pyramid offerings Diversity, philanthropy, and base of the pyramid offerings UN Goals and Issues 6

7 Criterion 5: Robust commitments, strategies or policies in the area of human rights Commitment to comply with all applicable laws and respect internationally recognized human rights, wherever the company operates Statement of policy expressing commitment to respect and support human rights approved at the most senior level of the company Statement of policy stipulating human rights expectations of personnel, business partners and other parties directly linked to operations, products or services Statement of policy publicly available and communicated internally and externally to all personnel, business partners and other relevant parties HR DMAs , , Human Rights DMAs , , Human Rights DMAs, discussion of supplier relations , , Human Rights DMAs, discussion of supplier relations Human Rights Implementation 7

8 Criterion 6: Effective management systems to integrate the human rights principles Due diligence process that includes an assessment of actual and potential human rights impacts. Internal awareness-raising and training on human rights for management and employees Operational-level grievance mechanisms for those potentially impacted by the company s activities Allocation of responsibilities and accountability for addressing human rights impacts Continued HR DMAs, HR1-2, HR4-7, HR9, SO1 HR3, HR8, HR DMAs HR9, SO1 HR DMAs, HR9, SO1 Human Rights Implementation 8

9 Criterion 6, Continued Internal decision-making, budget and oversight for effective responses to human rights impacts Processes to provide for or cooperate in the remediation of adverse human rights impacts that the company has caused or contributed to HR DMAs, HR9, SO1 HR9, HR11 (G3.1), SO1 Human Rights Implementation 9

10 Criterion 7: Effective monitoring and evaluation mechanisms of human rights integration System to monitor the effectiveness of human rights policies and implementation, including in the supply chain. Monitoring drawing from internal and external feedback, including affected stakeholders 4.4, HR DMAs, HR Leadership review of monitoring and improvement results Process to deal with incidents 4.1, 4.4, 4.9 HR 9-11, SO1 Human Rights Implementation 10

11 Criterion 8: Key outcomes of human rights integration Outcomes of due diligence process. HR 2, HR (G3.1) External and formal reporting of operations or operating contexts that pose risks of severe human rights impacts. Disclosure of main incidents involving the company. Outcomes of processes of remediation of adverse human rights impacts. Sustainable report, relevant company webpages HR9, HR 11 (G3.1) HR 11 (G3.1), SO1 Human Rights Implementation 11

12 Criterion 9: Robust commitments, strategies or policies in the area of labor Reference to relevant international conventions and other international instruments (e.g. ILO Core Conventions). Reflection on the relevance of the labour principles for the company , LA DMAs, maybe 1.1, 1.2, Material issues (4.17), supplier relations LA DMAS, Material issues Written company policy (e.g., in code of conduct) on labour 4.8, 4.12, 4.13,supplier relations Inclusion of minimum labour standards in contracts with suppliers and other relevant business partners Specific commitments and goals for specified years LA DMAs, supplier relations LA DMAs, Highlights and goals, supplier relations Labor Principles Implementation 12

13 Criterion 10: Effective management systems to integrate the labor principles Risk and impact assessments in the area of labor 4.18, Material issues (4.17), LA DMAs, Managing for sustainability, Ethics hotline Allocation of responsibilities and accountability within the organization Internal awareness-raising and training on the labor principles for management and employees Grievance mechanisms, communication channels and other procedures (e.g. whistleblower mechanisms) for reporting concerns or seeking advice LA10-13, Ethics hotline Ethics hotline Labor Principles Implementation 13

14 Criterion 11: Effective monitoring and evaluation mechanisms of labor principles integration System to track and measure performance based on standardized performance metrics 4.1, 4.9, LA DMAs, LA 3-8, LA 11-12, LA 14 Audits or other steps to monitor and improve the labour performance of companies in the supply chain Leadership review of monitoring and improvement results Process to deal with incidents HR , 4.9, Managing for sustainability, LA DMAs LA DMAs, Ethics hotline Labor Principles Implementation 14

15 Criterion 12: Key outcomes of integration of the labor principles Outcome of due diligence and follow-up efforts to uphold the freedom of association right to collective bargaining. Outcome of due diligence and follow-up efforts to eliminate forced labor. Indicators suggested by UNGC Lead document: LA4, HR5 Indicator suggested by UNGC Lead document: HR7 Outcome of due diligence and follow-up efforts to abolish child labor. Indicator suggested by UNGC Lead document: HR6 Outcome of due diligence and follow-up efforts to eliminate discrimination. Disclosure of main incidents involving the company. Indicator suggested by UNGC Lead document: HR4 HR 9, HR (G3.1) Labor Principles Implementation 15

16 Criterion 13: Robust commitments, strategies or policies in the area of environmental stewardship Reference to relevant international conventions and other international instruments (e.g. Rio Declaration on Environment and Development). Reflection on the relevance of environmental stewardship for the company. Written company policy on environmental stewardship Inclusion of minimum environmental standards in contracts with suppliers and other relevant business partners Specific commitments and goals for specified years 4.8, , 1.2, Managing for sustainability, Material issues, EN DMAs 4.8, EN DMAs EN DMAs, discussion of supplier relationships Environmental section, EN DMAs, Goals and highlights Environmental Stewardship Implementation 16

17 Criterion 14: Effective management systems to integrate the environmental principles Environmental risk and impact assessments 4.11, EN DMA, PR1 Assessments of lifecycle impact of products, ensuring environmentally sound end-of-life management policies Allocation of responsibilities and accountability within the organization Internal awareness-raising and training on environmental stewardship for management and employees Grievance mechanisms, communication channels and other procedures for reporting concerns or seeking advice regarding environmental impacts PR1 Managing for sustainability, EN DMA LA 10 Ethics hotline, SO1 Environmental Stewardship Implementation 17

18 Criterion 15: Effective monitoring and evaluation mechanisms for environmental stewardship System to track and measure performance based on standardized performance metrics Leadership review of monitoring and improvement results 4.1, 4.9, Managing for sustainability, EN 6, 7, 12, 14, 25, 26, environmental section Process to deal with incidents Audits or other steps to monitor and improve the environmental performance of companies in the supply chain Environmental Stewardship Implementation 18

19 Criterion 16: Key outcomes of integration of the environmental principles Indicators on uses of materials and energy Indicators suggested by UNGC Lead: EN1, 3, 8 Indicators on emissions, effluents, and waste Indicators suggested by UNGC Lead: EN 16, 19, 20 Indicators on the company s initiatives to promote greater environmental responsibility Indicators on the development and diffusion of environmentally friendly technologies Disclosure of main incidents involving the company. Indicators suggested by UNGC Lead : EN 2, 5, 10, 14, 18, 27 Indicators suggested by UNGC Lead: EN 6, , 1.2, EN DMAs Highlights and goals Environmental Stewardship Implementation 19

20 Criterion 17: Robust commitments, strategies or policies in the area of anti-corruption Publicly stated formal policy of zero-tolerance of corruption Commitment to comply with all relevant anticorruption laws, including the implementation of procedures to know the law and monitor changes Statement of support for international and regional legal frameworks, such as the UN Convention against Corruption 4.8, 4.12, SO DMAs, Governance section of company website, Ethics hotline, SO5, section on supplier relations Continued Anti-Corruption Implementation 20

21 Criterion 17, Continued Carrying out risk assessment of potential areas of corruption Detailed policies for high-risk areas of corruption 4.8, 4.12, SO DMAs, Governance section of company website, Ethics hotline, SO5, section on supplier relations Policy on anti-corruption regarding business partners Anti-Corruption Implementation 21

22 Criterion 18: Effective management systems to integrate the anti-corruption principle Support by the organization s leadership for anti-corruption Human Resources procedures supporting the anti-corruption commitment or policy, including communication to and training for all employees 4.1, 4.6, 4.8, , SO DMAs, Governance section of company website, Ethics hotline, SO5, section on supplier relations Internal checks and balances to ensure consistency with the anti-corruption commitment Actions taken to encourage business partners to implement anti-corruption commitments Continued Anti-Corruption Implementation 22

23 Criterion 18, continued Management responsibility and accountability for implementation of the anti-corruption commitment or policy Communications (whistleblowing) channels and follow-up mechanisms for reporting concerns or seeking advice Internal accounting and auditing procedures related to anti-corruption 4.1, 4.6, 4.8, , SO DMAs, Governance section of company website, Ethics hotline, SO5, section on supplier relations Anti-Corruption Implementation 23

24 Criterion 19: Effective monitoring and evaluation mechanisms for the integration of anti-corruption Leadership review of monitoring and improvement results Process to deal with incidents 4.1, 4.6, 4.8, , SO DMAs, Governance section of company website, Ethics hotline, SO5, section on supplier relations, SO7, 8 Public legal cases regarding corruption Use of independent external assurance of anti-corruption programs Anti-Corruption Implementation 24

25 Criterion 20: Key outcomes of integration of the anticorruption principle Outcomes of assessments of potential areas of corruption, where appropriate Indicator suggested by UNGC Lead document: SO2 Outcomes of mechanisms for reporting concerns or seeking advice Indicator suggested by UNGC Lead document: SO4 Indicators Human Resources procedures supporting the anti-corruption commitment or policy Disclosure of main incidents involving the company Indicator suggested by UNGC Lead document: SO3 SO 7, 8 Anti-Corruption Implementation 25

26 Criterion 21: Describes implementation of the Global Compact principles in the value chain Analysis of sustainability risk, opportunity and impact in the value chain, both upstream and downstream Policy on value chain, including a policy for suppliers and subcontractors 4.11; Materiality; DMAs for HR, LA, SO; EC6; HR1-3, 5-9; sections on suppliers and/or customers 4.8, 4.12 Communication of policies and expectations to suppliers and other business partners Monitoring and assurance mechanisms (e.g. audits/screenings) for compliance in the value chain Awareness-raising, training and other types of capacity building with suppliers and other business partners DMAs for HR, LA, SO; sections on suppliers and/or customers DMAs for HR, LA, SO Sections on suppliers and/or customers Value Chain Implementation 26

27 Criterion 22: Information on the company's profile and context of operation Legal structure, including any group structure and ownership 2.1, 2.3, 2.6 Countries where the organization operates, with either major operations or operations that are specifically relevant to sustainability Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries) 2.4, Primary brands, products, and/or services 2.2 Direct and indirect economic value generated for various stakeholders (employees, owners, government, lenders, etc.) EC1, 3, 6-9 Transparency and Verification 27

28 Criterion 23: High standards of transparency and disclosure COP uses the GRI Sustainability Reporting Guidelines COP qualifies for Level B or higher of the GRI application levels 4.9, About the Report section, GRI Index, Annual report COP includes comparison of key performance indicators for the previous 2-3 years. Board, where permissible, approves COP and other formal reporting on corporate sustainability Relevant sustainability information from COP is included in annual financial report and filings Transparency and Verification 28

29 Criterion 24: The COP is independently verified by a credible third-party Accuracy of information in COP is verified against assurance standard (e.g. AA1000, ISAE 3000) Accuracy of information in COP is verified by independent auditors (e.g. accounting firm) Letter or commentary from advisory panel, auditors, or assurance organization; official GRI check Content of COP is independently verified against content standards (e.g. GRI Check) COP is reviewed by a multi-stakeholder panel or by peers (e.g. Global Compact Local Network) Transparency and Verification 29

30 About Framework LLC Framework helps businesses become more successful by developing what we call the Sustainable Advantage: the ability to generate value by better understanding risks, implementing cost-saving efficiencies, managing finite resources judiciously, attracting and retaining talented employees, earning public goodwill, and capitalizing on new market opportunities. For more information, please contact: Alexandra Marchosky 2012 Framework LLC. All rights reserved. 30