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The GRI G4 Guidelines

What matters

Sustainability

& Integrated Reporting

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Only then it can decide what is material, set

appropriate boundaries, and decide on what

to report.

When assessing materiality, it is important

to identify stakeholders and explain how

their expectations and interests have beenmet. But equally importantly, the report

should present the organizations

performance in the broader context of

sustainability. To make sure the wider

context is addressed, G4 requires more

Disclosure on Management Approach

(DMA). DMA should help users of

sustainability reports interpret performance

and ambitions in the broader context of

sustainability. New in G4 is the Aspect-

specific DMA. The Aspect-specific DMA isdesigned to give additional detail on the

information to report for the Aspect, such as

emissions, investments and employment.

The Aspect-specific DMA has not yet been

developed for every Aspect in the G4

Guidelines.

New: supply chain disclosures

The G4 Guidelines feature two new

disclosures relating to the supply chain:

a description ofthe organisations supply

chain, and

reporting on any significant changes,

e.g., in location or supply chain

structure.

Both of these must be included in reports

prepared in accordance with the GRI

Framework. On top of that, new indicators

are introduced that reflect the

environmental, human rights and social

impacts caused by an organisations supply

chain, which are required to be reported ifdetermined material. This will bring

additional challenges for organisations,

such as requiring relevant and reliable data

on labour practices of suppliers in emerging

countries.

How does this link to Integrated

Reporting?

Recently the International IntegratedReporting Council published its consultation

draft of the International Integrated

Reporting framework. Through an

integrated report, an organisation provides

a concise communication about how its

strategy, governance, performance and

prospects lead to the creation of value over

time. The G4 Framework is a guideline for

preparing a sustainability report, but a

separate section of G4 is dedicated to the

relation between integrated reporting and

sustainability reporting (G4).

The objectives of sustainability reporting

and integrated reporting may differ as a

result of diferent primary users concerned.

The primary user of an integrated report is

the provider of long-term financial capital,

whereas a sustainability report focuses on a

broader group of stakeholders.

Nevertheless the differing inteneded users

will affect the materiality assessment and

the content of the report. In general, a

sustainability report will contain a broader

level of detail of sustainability aspects than

an integrated report.

How Deloitte can help?

We can assist you with a G4 Gap-analysis,

practical assistance and help you start with

Integrated Reporting.

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