www.globalreporting.org global reporting initiative judy henderson chair, global reporting...

www.globalreporting.org

Global Reporting Initiative

Judy HENDERSONChair,Global Reporting InitiativeAustralia

AN INTRODUCTION TO THE GLOBAL REPORTING INITIATIVE

Dr Judy HendersonChairGlobal Reporting Initiative

3www.globalreporting.org

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

REPORTING ON THE RISE

0

1990 1995 2000

Year

Environmental

And EHS

Sustainability

Num

ber

of

Report

s

www.globalreporting.org 4

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 5


TRANSPARENCY: not OPTIONAL… ESSENTIAL

Governments

Investors

Customers

Community

Rating groups

Companies

Pressure from...



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

Incorporated as Foundation in Netherlands with new Board

GRI MISSION


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


The Guidelines

Automotive

Financial

Tourism

Mining

The Guidelinesfoundation document upon which all other GRI documents are based

Sector supplementsadditional guidance for specific sectors, addressing issues pertinent to those industries

Technical protocolsaddress a specific set of indicators, providing technical guidance on their measurement

Issue supplementsissue-specific supplements to provide additional models for organising the information

Energy

Water

Childlabour

Diversity

Productivity

HIV/AIDS

GRI’S PORTFOLIO

eco

nom

ic socialCOMPANY

SECTOR

CORE

environmental

REPORTING ELEMENTS

www.globalreporting.org 27 May, 2002


WHAT IS A GRI REPORT?

Vision and StrategyDescription of the reporting organisation’s strategy with regard to sustainability, with text discussion and a statement from the CEOProfileOverview of the reporting organisation’s structure, policies and management systems, including stakeholder engagement effortsGovernance structure and management systemsDescription of organisational structure, policies and management systems including stakeholder engagement effortsGRI content indexA table supplied by the reporting organisation identifying where the information listed in the Guidelines is located within the reportPerformance indicatorsMeasures of the impact or effect of the reporting organisation divided into economic, environmental and social


SUSTAINABILITY REPORTING PRINCIPLES

Transparency

Inclusiveness

Sustainability context

Completeness

Relevance

Neutrality

Comparability

Accuracy

Clarity

Timeliness

Auditability

GRI & COMPLEMENTARY INITIATIVES


ManagementSystems

Standards

GRI

GRI seeks to harmonise and integrate

GRI as a core platform for sustainability reporting

13

IntangiblesAccounting

Issue/Sector/Nat’lReportingGuidelines

InternationalConventions

Codesof

Conduct

PerformanceStandards

AssuranceStandards


WHY COMPANIES USE THE GUIDELINES

Benchmark and enhance efficiency

Internal management improvements

Stakeholder consultation

Attract employees and investors

Manage risk and protect reputation


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


2002 GUIDELINES—WHAT’S NEW?

Reformulated reporting principles

Strengthened social and economic content

“Core” versus “additional indicators”

Clarity on flexibility

Guidance on assurance

BALANCING FLEXIBILITY & COMPARABILITY

Tra

nspa

renc

y

Coverage

Str

uctu

re

INFORMAL

IN ACCORDANCE

Incremen

tal R

eporti

ng



“IN ACCORDANCE” REQUIREMENTS

1. Report on vision, profile of organisation and governance and management systems

2. Include a GRI Content Index.

3. Report on the core performance indicators. Omission of each core indicator must be explained

4. Ensure that the report is consistent with the reporting principles

5. 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 organisation’s sustainability performance.”


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


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


21www.globalreporting.orgwww.globalreporting.org

"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 AnnanUN Secretary General1 September 2002

GLOBAL REPORTING INITIATIVE

www.globalreporting.org global reporting initiative judy henderson chair, global reporting...

Documents