8/21/2015 communication on progress “public transparency and accountability are the cornerstones...
TRANSCRIPT
04/19/23
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 COP status by Year of Joining
35
70 142176
369
5
3956
69
319
1
88212
168
50
0%
20%
40%
60%
80%
100%
2000 2001 2002 2003 2004*
Year of Joining
Inactive
Non-communicating
Active
Current Participant Status
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Current SME COP status by Year of Joining
528
33 76
6 1334
275
11 51 84
27
0%
20%
40%
60%
80%
100%
2001 2002 2003 2004*
Year of Joining
Inactive
Non-commuicating
Active
Current SME Status
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The COP in context
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Sustainable reporting trends
Learning curveAnecdotal (little data) EMS/ISO 14001 Triple bottom line e.g. GRIIntegrated reports
http://www.sustreport.org/business/report/trends.html
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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 fieldTo build and maintain relationships (solicit feedback) with external partiesTo 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.htm
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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 evaluationThe Coalition for Environmentally Responsible Economies (CERES) Principles. AA1000SAIHomegrown 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.”
Innovation:the operating mode of CSR, driving progress
Transparency and Public Accountability helps ensures the transition towards...
The development of an
economy
that works for all,
now and in the future,
within the limits
of the planet
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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 improvementsCompaniesGCOLocal 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
Statusassessment
Set goals
Act
Planstrategy
Plan
Implement
Do
Checkprogress
Check
enab
lers
Performance enablersBusiness strength is based on elements that, together, are necessary and sufficient to ensure excellence in every objective the business chooses to pursue.
Competitive advantagebalance 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.
Resources
Processes
Innovation
PoliciesStrategy
Leadership
Empowerment
Vision
resu
lts
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.
Reporting
Impact onvaluechain
Impact onpeople Impact
on society
Not the only model…
Resources
Processes&
Innovation
PoliciesStrategy
Leadership
Empowerment
Impact onvaluechain
Impact onpeople Impact
on society
Reporting
Vision
What are the financial benefits ofour sustainability performance?
goals Measures
Financial Perspective
What CSR activities add value to the organisation?
Business processes
goals Measures
How do stimulate and sustain innovation and
continuous improvement?
Organisational learning
goals Measures
How will we satisfy our customers and stakeholders
needs?
Stakeholder perspective
goals Measures
Source:KPMG 2002adaptation from Kaplan/NortonBalanced Score Card
The path is the goal ...the change escalator
anecdotal
some results
many positive results
verified gains and positive trends
best in class for years
Why are we doing?
How can we do better?
Communication on
ProgressCommunicatio
n on
Progress
awareness
model
in place
innovation
deep
integration
clueless
stage of integrating
resu
lts
continuousimprovement
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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 ImprovementsCOP Review ProjectQuality FeedbackScale P and V workshopNetwork Work Plan Best Practices Guidance improvementsRefine Notable CriteriaIAT Training
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Guidance Documents
Coming soon: SME Guide,
The Value of Communicating Progress, and
Networks GuideRevision 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 GC’s relationship with CSR implementation schemes.
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Networks
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What Networks are doing
COP workshopsTranslationsTemplates and ToolsConnecting to the local CSR community and leveraging existing and emerging incentive structuresLocal / 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 participantsSafeguard the integrity of the initiativeCreate 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 submittedwithin 2 years of join date
Next COP due in 1 year
COP Policy -timeframe
Company joins Global Compact
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COP submittedwithin 2 years of join date
COP not submittedwithin 2 years of join date.Company listed as non-communicating
Company joins Global Compact
COP Policy -timeframe
COP submittedwithin 2 years of join date
Next COP due in 1 year
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COP submittedwithin 2 years of join date
COP not submittedwithin 2 years of join date.Company listed as non-communicating
Next COP due in 1 year
Company joins Global Compact
COP submittedN/C flag removed
COP Policy -timeframe
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COP submittedwithin 2 years of join date
COP not submittedwithin 2 years of join date.Company listed as non-communicating
Next COP due in 1 year
Company joins Global Compact
COP submitted N/C flag removed
COP Policy -timeframe
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COP submittedwithin 2 years of join date
COP not submittedwithin 2 years of join date.Company listed as non-communicating
Company inactive (de- listed)1 year after classifiedas Non Communicating
Next COP due in 1 year
Company joins Global Compact
COP submittedN/C flag removed
COP Policy -Timeframe
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COP submittedwithin 2 years of join date
COP submittedcompany re-instated
COP not submittedwithin 2 years of join date.Company listed as non-communicating
Company inactive (de- listed)1 year after classifiedas Non Communicating
Next COP due in 1 year
Company joins Global Compact
COP submitted N/C flag removed
COP Policy -Timeframe
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COP submittedwithin 2 years of join date
COP submittedcompany re-instated
COP not submittedwithin 2 years of join date.Company listed as non-communicating
Company inactive (de- listed)1 year after classifiedas Non Communicating
Next COP due in 1 year
Company joins Global Compact
COP submitted N/C flag removed
COP Policy -Timeframe
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COP submittedwithin 2 years of join date
COP submittedcompany re-instated
COP not submittedwithin 2 years of join date.Company listed as non-communicating
Company inactive (de- listed)1 year after classifiedas Non Communicating
Next COP due in 1 year
Company joins Global Compact
COP submittedcompany listed as active
COP Policy -Timeframe
Grace Period
A 45 day grace period will be granted to companies that contact the Global
Contact Office and request an extension.
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What active, inactive & non-communicating actually means
Listed on website as active
Invited to GC events
Can use GC logo
Active
Non-communicating
Inactive
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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 company’s 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 company’s 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 company’s 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 company’s COP should be created in the language which is most appropriate for the company’s 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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Don’t start from scratch
Your company is likely already doing things in relationship to the ten principles.
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Be Specific
Don’t 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