GRI Artikel

GRI Learning Series
Starting Points
GRI Sustainability Reporting:

How valuable is the journey?
About the GRI Learning Series Aimed at enhancing organizations understanding and application of the GRIs Sustainability Reporting Guidelines and issues related to them, the Learning Services program will include other publications, online case studies and best practices, regional training programs, and online forum for knowledge sharing. The Learning Services program was created to support reporting organizations regardless of size, location, reporting experience, sector, or organization type. An educational series that includes content across three themes: Starting Points: for a general audience and organizations considering reporting for the first time Pathways: Explorations: for report makers and report users of all levels and types leadership and innovative issues in sustainability, transparency, and accountability
How does GRIs Learning Series relate to GRIs Reporting Framework? Learning publications are designed to help organizations better understand, apply and use the GRI Reporting Framework. The Reporting Framework consists of the GRI Sustainability Reporting Guidelines, Sector Supplements, and Protocols, and is considered the authoritative guidance on reporting. If you wish to produce a GRI-based report, the learning publications should be used as helpful tools to guide or organize the process, but any specific references to use of the GRI Reporting Framework as the basis for the report should be made with respect to the GRI Guidelines, Sector Supplements, or Protocols. When declaring a level of application of the GRI Reporting Framework, reference must be made to the GRI Guidelines, Sector Supplements and Protocols only. Download the GRI Reporting Framework free of charge at: www.globalreporting.org. About GRI GRIs vision is a sustainable global economy where organizations manage their economic, environmental, social and governance performance and impacts responsibly and report transparently. GRIs mission is to make sustainability reporting standard practice by providing guidance and support to organizations.
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Acknowledgements
Sponsor The Global Reporting Initiative (GRI) would like to thank Petrobras whose financial support made this publication possible.
Contributors: GRI would also like to extend its appreciation to Judy Kuszewski, Director, Client Services, SustainAbility, for her review and comments during the publication development. Publication Development Series development and editorial direction: Nelmara Arbex (arbex@globalreporting.org) Contributors: GRI Learning Services Team and Mark Brownlie Text Reviser: Carinne Allinson Design and Layout: Tuuli Sauren, INSPIRIT International Communications Photographs: Cover: Van Parys Media. Page 8: iStockphoto.com/tepic; Page 14: iStockphoto.com/jodiecoston; Page 24: Getty Images/ Douglas Waters; Page 50: iStockphoto.com/JTBurrell.
Series Design:
Foreword
This publication is aimed at individuals and companies who are implementing the GRI sustainability reporting process for the first time, or those who want to know more about what other organizations have learned from the process. Every organization, whether it is a global corporation, government agency, small business, large company or non-governmental organization (NGO), has impacts that extend far beyond its immediate surrounding region or its closest collaborators and clients. For the hundreds of individuals and organizations which comprise the GRI network, the GRI sustainability reporting process is the best way to understand and measure the extent of such impacts. But more than that, the GRI Guidelinescreated by NGOs, businesses and many other organizations from different continentsprovide a common language which allows dialogue on sustainable business practice around the world. To produce a GRI report an organization has to undergo a reporting process, as described in the GRI Guidelines and other GRI Publications.1 There are many different reasons why organizations decide to implement a GRI reporting process, but the idea of finding value in the reporting process was rarely there from the outset. The value only became apparent during the implementation and execution of the reporting process. But the value of such a process is not always a low hanging fruit just there to be picked for all organizations. Organizations have different ways of uncovering this value, as well as creating further benefits from the process. Nor are the value, or the challenges, always clear at the beginning. The number of organizations using the GRI Guidelines is growing and now involves organizations of all sizes and types in many countries worldwide. During February and March of 2008, GRI collected testimonies from organizations of diverse sizes and sectors around the world who have experience with the GRI reporting process.2 In these testimonies, GRI reporting practitionersfrom senior executives to project coordinatorsreveal the value, and the challenges, they encountered during the reporting process. Their voices confirmed that it is not easy for an organization reporting for the first time to understand what the GRI sustainability reporting process involves.
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But they also indicate the decisions on how the process will be planned and implemented are an integral part of accessing, and multiplying, the value of the reporting process. This value will be lost if the only goal of the process is to prepare a final report. When reporting is seen as a process rather than a project, the learning and value increase. We hope this publication will help future reporters to uncover the real treasure behind this processthe construction of a sustainable future.
Ernst Ligteringen and Nelmara Arbex
GRI publishes: the GRI Sustainability Reporting Guidelines (GRI Guidelines), Indicator Protocols and Sector Supplements to the Guidelines, the GRI Research Publications (divided into 3 categories) and the GRI Learning Publications (divided into 3 categories). GRI requested, via e-mail, all its Organizational Stakeholders to volunteer statements from both senior executives and those responsible for the reporting process, about the value of the GRI reporting process and its main challenges. In total 67 companies responded. Of the statements received, 76 statements from 39 companies are used in this publication. For a list of those companies whose contributions were used, see Annex 1 on page 52.
Starting Points
GRI Sustainability Reporting: How valuable is the journey?
Contents
Introduction Section 1
Why do organizations embark on a sustainability reporting process? a. To show commitment and to be transparent b. To demonstrate the ability to participate in competitive markets c. To plan activities, become more sustainable and position the company d. To comply with regulations 7 8 10 10 11 12 12 14 16 16 20 20 22 22 22 24 26 26 26 27 29 30 32 32 33 34 36 36 37 39 40
Section 2
Points to consider before implementing GRI sustainability reporting a. What exactly is the GRI sustainability reporting process? b. Is it difficult? c. Do you need an expert? d. Is it only for large organizations? Is it possible for small ones to do it, too? e. Is it expensive? f. Is it an elixir?
Section 3
The value uncovered during the reporting process A. The Value of Internal Changes a. Develop vision and strategy b. Improve management systems, improve internal processes and set goals c. Identify weaknesses and strengths d. Attract and retain employees e. Connect departments and encourage innovation f. Raise awareness with the Board g. Achieve competitive advantage and leadership h. Attract investors B. The Value of Recognition a. Enhance reputation, achieve trust and respect b. Transparency and dialogue with stakeholders c. Demonstrate commitment to sustainability d. Enable comparability and benchmarking
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Section 4
Exercise: Gaining Value Throughout the Process a. PREPARE: Plan your GRI Sustainability Reporting Process b. CONNECT: Talk and Listen c. DEFINE: Focus Your Efforts d. MONITOR: Build Your Report e. REPORT: Check and Communicate Principles to Increase the Value of Your Report a. Materiality b. Stakeholder Inclusiveness c. Sustainability Context d. Completeness e. Balance f. Comparability g. Accuracy h. Timeliness i. Clarity j. Reliability
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Annexes
Annex 1 List of companies which contributed to this publication Annex 2 Multistakeholder process participants who helped develop the GRI G3 Guidelines Annex 3 Summary of main GRI projects on sustainability reporting for Small and Medium-Sized Enterprises in 2007 Annex 4 List of SMEs reporting according to the GRI Guidelines known to the GRI Secretariat
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Introduction
The intention of this publication, as its title suggests, is to reflect on the value of the GRI sustainability reporting process. Is it real or is it merely an illusion? GRI asked representatives from companies around the world, big and small, to tell us of their experience of the reporting process. GRI requested, via e-mail, all its Organizational Stakeholders to volunteer statements from both senior executives and those responsible for the reporting process, about the value of the GRI reporting process and its main challenges. In total 67 companies responded. Out of the statements received, 76 from 39 companies are used in this publication. For a list of those companies whose contributions were used, see Annex 1 on page 52. You can read their opinions, in their own words, in the different sections. Complementary information on specific aspects of this publication is developed in the annexes. Our conclusion from this first research is that there is true value to be gained from sustainability reporting based on the GRI Sustainability Reporting Framework. But, we also learned that to capture this value an organization has to choose, plan and implement a reporting process which can bring this value to reality. The question suggested by the title surely requires deeper and wider research, which was not the main goal of this publication. In this text GRI wants to give useful content for reflection for a person considering sustainability reporting for the first time. In Section 1 we discuss why organizations embark on a sustainability reporting process at allwe wanted to know about the reason organizations had for starting the process. There are, of course, many different reasons for this and we look at those most mentioned by our contributors. In Section 2 we explain the main components of the GRI Reporting Framework concept as well as trying to address the main questions of beginners when deciding to go through a GRI sustainability reporting process. In Section 3 we present the real value discovered by companies during and after the GRI reporting process. The section is divided into two parts: the value of internal changes and the value of recognition. Here we listen to the voices of our contributors and focus on the various different topics mentioned in their testimonies. In the final section we step through the five phases of the GRI sustainability reporting process and include some suggestions on how to gain maximum value throughout the whole GRI reporting process, as well as listing the fundamental GRI Reporting Principles.
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Why do
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organizations embark on a sustainability reporting process?

Starting Points GRI Sustainability Reporting: How valuable is the journey? 9
Why do organizations embark on a

There is one overriding reason why an organization publishes a sustainability report: an organization publishes a sustainability report because it believes that reporting will benefit the organization somehow. However, there is seldom a single reason why an organization decides to start reporting on non-financial performance and implement a sustainability reporting process in the first place. Motivating forces can be internal or external, tangible or intangible, financial or moral. The reasons for reporting might change over the years. This section explores some of the most common reasons why organizations make the decision to implement a reporting process for the first time.
a. To show commitment and to be transparent

The number of organizations and individuals asking companies about their social and environmental performance has grown tremendously during the past decade. Investors, customers, employees, community residents, and advocates are all voicing their concerns and questioning organizational commitment to responsible conduct.1 In her foreword to Trust US Jacqueline Lardelel states: The World Summit on Sustainable Development (WSSD) in Johannesburg confirmed the need to engage business as part of the solution to the sustainable development challenges we face in the world. At the same time, news of corporative scandals earlier in the year heightened the debate on corporate responsibility and accountability. It was therefore no surprise when the Johannesburg Declaration called for private sector cooperation to enforce corporate accountability.2 For organizations that already prepare sustainability reports, communicating with stakeholders and with society in general are often cited as the number one reason for starting reporting. The sustainability reporting process is expected to improve organizational credibility and reputation with investors, customers and community members. Many organizations realize that although regulators grant companies operating permits, they still need to obtain or retain a kind of social license to operate from society. Consequently, the ability of an organization to talk about economic, environmental and social aspects of its operations in a trustworthy and coherent way has a very high value today. This is valid for companies of all sizes and sectors. The reasons for this recognition are probably twofold. Firstly, economic, environmental and social issues are increasingly becoming everyones business. Secondly, business and society in general are aware of the complexity of the field; they are also aware of the fact that high performance organizationsof any size or sectorhave to take rapid decisions, through quick processes and often with limited resources. The combination of these factors can easily lead to mistakes and negative impacts in various areas. On top of that, all this happens in a world of instant digital connections, where news (both good and bad) travels fast.
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sustainability reporting process?

In this context, the high-performance organization is expected to monitor its performance in various areas and treat its weaknesses the same way as it treats its strong pointswith transparency and professionalism. The organization is expected to be accountable. If you look at reporting organizations in various business and non-profit sectors, you will find organizations that either officially or unofficially lead their respective sectors in several aspects (e.g., most respected, biggest emissions reduction, best workplace). A recent study found that superior environmental performers are better reporters.3
Who Wants to Know What?

Stakeholder Investors Indication of Interest in Sustainability Information Carbon Disclosure Project>200 investors ask for disclosure of greenhouse gas emissions4 Shareholder resolutions for expanded disclosure5 Dow Jones Sustainability Index and others request sustainability information6 Equator Principlesmajor lenders require discussion of environmental and social impacts of significant projects in developing countries7 Numerous nations require environmental and social data in annual reports (see more about this topic later in this section) One of the top two audiences for sustainability reports8 Publish What You Pay>200 NGOs worldwide ask for transparency on tax and royalty payments9 Of 56 global social and environmental NGOs, 79% find Corporate Sustainability Reports very or fairly useful10 In a survey of 21,000 people, 50% said that reading or hearing about a sustainability report improved their impression of the company, led them to buy the companys products, or to speak positively about the company to others11 Numerous business rankings include social and environmental criteria
Regulators Employees NGOs
General Public
Media
b. To demonstrate the ability to participate in competitive markets

The ability of an organization to understand the link between its everyday performance and sustainability, which is demonstrated by setting up a monitoring/reporting process, is increasingly recognized as an indicator of the quality of its management skills. This is even more important in a particularly competitive context. The necessity for this is easily found among large companies, but is also found increasingly among micro, small and medium-sized businesses12 competing in a tight market or trying to become part of a selected supply chain.13
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Companies for whom the need to differentiate their performance from their competitors was a motivating factor stated that they began reporting using the GRI Guidelines because they were convinced that it could be an important tool in this strategy.
c. To plan activities, become more sustainable and position the company

For some companies the reporting process started as a tool to understand their contribution to solving societys current problems. Additionally, they often wish to present their business from a new perspective, to be better positioned in the future business context. For these organizations, listening and responding to their various stakeholders (clients, employees, opinion-makers, similar organizations in other countries, community members, NGOs, etc.) has become an important part of the decision-making and innovation processes. These companies would say that good management involves monitoring and reporting on economic, social and environmental aspects. Indeed, it is hard to ignore these aspects in the pursuit of normal business performance goals, as sustainable indicators, such as carbon offsetting, wealth distribution, promotion of diversity, protection of biodiversity, etc., have increasingly to be taken into account in the everyday tasks of employees and suppliers. Underlining the drive to build a continually improving sustainability management system is the ultimate objective of becoming a more sustainable and more coherent organization. The GRI reporting process incorporates many elements specifically designed to contribute to setting up such a system. These organizations prepare a sustainability report to: take early steps towards operating in a more sustainable fashion facilitate implementation of a sustainability strategy create greater awareness of sustainability issues and commitment throughout the organization enhance the ability to track progress against specific targets identify cost savings identify new business models, adapted to future business contexts
d. To comply with regulations

Some organizations decided to report on their sustainability performance because they want to be ready to comply with current or future regulations. In most countries, sustainability reporting is currently voluntary, but in several jurisdictions, environmental and/or social reporting is a
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regulatory requirement. For example, Denmark, France, Netherlands, Norway, and Sweden require certain companies (e.g., of a certain size, listed on the stock exchange) to include environmental and/or social disclosures in their annual reports.14 This trend is not just confined to Europe. In the United States, the Sarbanes-Oxley Act requires companies to disclose a written code of ethics adopted by their chief executive, chief financial officer and chief accountant. Sometimes specific sectors are targeted. Canada requires large financial institutions to prepare public accountability statements. The Korean government is also moving in this direction. At the sub-national level, numerous regulators throughout the world require elements of environmental, health and safety reporting.15 Advocates of mandatory reporting argue that it brings credibility, comparability, completeness, better balance, and legal certainty. Opponents say that mandatory reporting is less flexible for a complex changing issue like sustainability and that it does not encourage innovation or transparency on burning issues.16
Why organizations start a sustainability report, and the benefits that result from the reporting process, are usually very different. Some of the reasons for undertaking reporting were described above. The next sections look at the benefits and outcomes of reporting.
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To find out more, read the GRI Learning Publication, The GRI Sustainability Reporting: A common language for a common future, 2008, available for free downloading on the GRI website www.globalreporting.org. SustainAbility and UNEP. Trust US - The Global Reporters 2002 Survey of Corporate Sustainability Reporting, first edition 2002, p. 4. Clarkson P. M. et al. (2007). Revisiting the relation between environmental performance and environmental disclosure: an empirical analysis, Accounting, Organizations and Society. doi:10.1016/j.aos.2007.05.003. Accessed: 22 April 2008. http://www.sustainability-index.com/. www.cdproject.net. www.share.ca; www.iccr.org. www.sustainability-indexes.com. www.equator-principles.com. ECC Kohtes Klewes GmbH and Fishburn Hedges (eds) (2003). Global Stakeholder Report 2003. Shared Values? The first world-wide stakeholder survey on non-financial reporting. Bonn and London. www.publishwhatyoupay.org. Roper, A.S.W. (2003). Building CEO Capital. Burson-Marsteller, New York. GlobeScan, 2004. www.globescan.com/news_archives/csr04_gri_PR.html. Accessed: 22 April 2008. The category of micro, small and medium-sized enterprises (SMEs) is made up of enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding 50 million euro, and/or an annual balance sheet total not exceeding 43 million euro. Extract from Article 2 of the Annex of Recommendation 2003/361/EC (Official Journal of the European Union, L 124, 20.5.2003, p. 36). GRI has also developed different projects in the context of SMEs. See Annex 3 on page 56 for more details. http://www.unep.fr/outreach/reporting/docs/Public-UNEP-KPMG-Report-FIN.pdf,pp. 22-26, or http://www.uneptie.org/outreach/ reporting/docs/GRI_govtmeeting.pdf. www.sec.gov/rules/final/33-8177.htm. http://canadagazette.gc.ca/partII/2002/20020410/html/sor133-e.html. From the GRI perspective, the majority of the companies using the GRI Guidelines are doing so voluntarily.
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Points to
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consider before implementing GRI sustainability reporting

Points to consider before implemen

The process a company uses when undertaking sustainability reporting is crucial if it is to create, benefit from and increase the value of the reporting process. The choice of which guidance to use or refer to will heavily influence the results obtained from the reporting process. This section will briefly set out the GRI Sustainability Reporting concept and initial questions around it. There are several common questions about the implementation of the GRI reporting process, which GRI is constantly asked. These are: What exactly is the GRI sustainability reporting process? Is it difficult? Do you need an expert? Is it only for large organizations? Is it possible for small ones to do it, too? Is it expensive? Is it an elixir?
This section tries to offer some answers to these questions.
a. What exactly is the GRI sustainability reporting process?

At the end of the 1990s, discussions were taking place about how to solve an important problem: while there were a number of internationally widely accepted guidelines for the reporting of financial performance of organizations, this was not at all the case for economic, environmental and social aspects. Different organizations in different contexts proposed different measuring systems and guidelines to do this, normally focusing on particular economic, environmental or social issues. A coalition, led by CERES (Coalition for Environmentally Responsible Economies) and UNEP (United Nations Environment Programme), decided to take the task on and seek a solution through an intensive process of consultation with business, NGOs, experts and other international institutions involved in social and environmental issues. From this initiative the first version of the Global Reporting Initiative Guidelines was launched in 2000. This was only possible because of the engagement and efforts of a large number of individuals and organizations committed to the sustainability, transparency and accountability agenda. As a result of these efforts, GRI became an independent organization in 2002. It was set up with the mission of making the sustainability reporting process as common as financial reporting and to be the guardian of the Guidelines and their production process.1
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ting GRI sustainability reporting

Thus, the entire GRI Sustainability Reporting Framework has, right from the beginning, been created through an international participatory process involving hundreds of individuals and organizations.2 This processcalled a multi-stakeholder processis still used to produce the GRI Sustainability Guidelines, Indicator Protocols and Sector Supplements.3 In this process, all participants are consulted and the final documents have to be approved via a consensus-seeking process. This is the main characteristic of the GRI Sustainability Reporting Frameworkit is the result of extensive consultation. The GRI Reporting Framework was created to provide a common language which could be applied by all types of organizations and it is drawn up with reference to a large number of international agreements and norms (see box below). The GRI Framework puts organizations on a level footing, which helps in discussing and comparing sustainability performance. The GRI G3 Guidelines reference where possible generally accepted norms and standards. These include: Article 15 of the Rio Principles United Nations Universal Declaration of Human Rights and its Protocols United Nations Convention: International Covenant on Civil and Political Rights United Nations Convention: International Covenant on Economic, Social and Cultural Rights International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work of 1998 Vienna Declaration and Programme Approach ILO Tripartite Declaration Concerning Multinational Enterprises and Social Policy Organization for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises Global Compact Principles
The process undertaken for sustainability reporting is fundamentally about learning and change. When an organization starts to measure, understand, improve and report on its sustainable development performance, it begins a journey of discovery.
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The GRI reporting process is a process in which an organization: comes to understand the economic, social, and environmental impacts of its activities; enters into dialogue with stakeholders about these impacts; defines the aspects and indicators that are the most important for reflecting its economic, environmental and social contributions; sets goals; monitors (or prepares to monitor) its results; and communicates all of these steps. To guide organizations through the process, the GRI reporting process is presented in five steps:4 1. Prepare : This step aims to promote internal discussion, especially at management level, to identify the most obvious positive and negative economic, environmental and social impacts. 2. Connect : This is a vital part of the process and involves seeking stakeholder input on what aspects should be included in the final report. The testimonies included in Section 3 demonstrate how valuable the companies found this step to be. 3. Define : The stakeholder input in step 2 will confirm if the positive and negative aspects identified by the management team in step 1 are the ones that really matter. This will define the focus of the report, and the reasons for the choices should be clear. 4. Monitor : This is the gathering of the data that will go into the final report. GRI indicators were developed to help organizations know what to monitor. The GRI multi-stakeholder process also developed Reporting Principles to help organizations check their monitoring processes and obtain high-quality information. This, in turn, will help organizations to better manage and report. 5. Report : The data collected in step 4 goes into the final report; but the process does not stop there. The final step involves not only the preparation and writing of the final report, but also important decisions about the best ways to communicate the results of the report. And of course, the next cycle starts right here
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From the GRI perspective, all the steps described here should be developed using the guidance offered by the GRI Reporting Framework, although documents and tools from different organizations can be used to carry out these steps. Regardless of the sector or size of an organization, GRI reporting should fit into a broader process for setting organizational strategy, implementing action plans, and assessing outcomes. Once the reporting process is integrated into management systems that are focused on continual improvement, the value multiplies. The process becomes a tool to help the entire organization become more efficient, more focused, and more sustainable. It is important to note that a GRI sustainability report is more than just the elaboration of the final report (the last step Communicate). The quality and credibility of the final report is closely related to the amount of effort which has been put into carrying out the first part of the GRI sustainability reporting process, mentioned in step 1 above. The GRI Framework has been used also in combination with performance management tools such as AA1000 and ISO standards, among others.
To find out more:

http://www.unglobalcompact.org/aboutthegc/thetenprinciples/index.html http://www.unglobalcompact.org/CommunicatingProgress/index.html http://www.accountability21.net/default.aspx?id=228 http://www.iso.org/iso/home.htm
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Here are just a few extracts from the testimonies: Raji Hattar, Chief Projects Officer, Aramex, Jordan: Issuing the sustainability report is a challenge by itself. It requires a lot of ground work and data gathering. It also requires dedication and a very high level of involvement from all the process owners in the organization, something that is not easy. Another challenge is the ability to fulfill the commitments in places where there is lack of regulations and systems to support the initiatives in the report.
b. Is it difficult?
The best way to find the answer to this question is to ask those people who have experience of the process. Therefore, when GRI asked companies for testimonies for this publication, it asked companies to reflect on both the value and the challenges they had encountered in the GRI reporting process. Some of the more critical feedback is presented below. The main challenges mentioned in the testimonies of those companies who have been using the GRI report process are: To get all the people needed involved, particularly the senior staff. To find out which are the most important issues to report on, or, in GRI words, to find the material issues, and focus. To understand the GRI reporting concept from the Guidelines, without help. To set practical goals which can be achieved in the period indicated in the report. To prepare the organization for achieving the published goals. To learn how to show balanced and non-positive performance without considering it a risk only. To manage the internal and external expectations around the final report. To learn how to deal with topics which are not locally regulated by government. To produce a picture where the real performance of the company is reflected. To be understood as more than just another report or a tool for marketing. To collect and organize traceable and accurate information. To finalize the process by producing a clear document, after a difficult process of collecting data from so many different areas. In summary it could be said that the implementation of a GRI reporting process is a challenge, but definitely not impossible to overcome. And the overwhelming opinion of the practitioners, if the testimonies are to be believed, is that the benefits are significantly more important.
Fernando Ramirez P. , General Manager, Envases Orlandini S.A., Chile (SME): [The main challenges we found during the implementation of the reporting process were] to incorporate all company areas in the reporting process and ensure adequate feedback from strategically selected stakeholders.
c. Do you need an expert?

The GRI Framework-Guidelines, Indicator Protocols, Sector Supplements and Research documents have been designed so that organizations of any size, sector and location can go through the same reporting process and produce comparable reports.
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GRI offers extra guidance and support to organizations through its GRI Learning Publications and GRI certified training programs (to find out more, go to the GRI website). However, it is recognized that companies and individual reporters will have varying levels of expertise, especially in the early years of reporting. The GRI Guidelines, therefore, allow companies to report to different levels (C, for beginners, to A+, for the most experienced), reflecting different levels of use of the GRI Framework. The G3 version of the GRI Guidelines introduced a GRI reporting level table.
Report Application Level
C
Report on: 1.1 2.1 - 2.10 3.1 - 3.8, 3.10 - 3.12 4.1 - 4.4, 4.14 - 4.15
C+
B
Report on all criteria listed for Level C plus: 1.2 3.9, 3.13 4.5 - 4.13, 4.16 - 4.17
B+
A
Same as requirement for Level B
A+
GRI Profile Disclosures
Standard Disclosures
Report Externally Assured
Not Required
GRI Management Approach Disclosures
OUTPUT
Management Approach Disclosures for each Indicator Category
Management Approach Disclosures for each Indicator Category
Tobias Stcker, CSR Manager, DHV, The Netherlands: The biggest challenge to sustainability reporting is to become as relevant as financial reporting. The relevance and accuracy of non-financial data needs to match that of financial data in order to become a part of everyday decision-making. The highest risk therefore lies in the achievement of business relevance. If sustainability reporting does not manage to develop from nice stories to hard business intelligence, it might eventually fail to add actual value to the business.
OUTPUT
GRI Performance Indicators & Sector Supplement Performance Indicators
Report on a minimum of 10 Performance Indicators, including at least one from each of: Economic, Social and Environmental.
Report on a minimum of 20 Performance Indicators, at least one from each of Economic, Environmental, Human rights, Labor, Society, Product Reponsibility.
Report on each core GRI and Sector Supplement* Indicator with due regard to the Materiality Principle by either: a) reporting on the Indicator or b) explaining the reason for its omission.
*Sector supplement in final version
Jos M Mndez lvarezCedrn, Deputy General Manager and Secretary General, CECA, Spain: The main challenge of reporting relates to the need to focus on material issues (few but relevant) for a wide range of stakeholders.
A company reporting for the first time, for example, might decide to report at Level C and produce a simpler report (containing ten material indicators), restricted to just a few aspects; a large organization that has been reporting for many years, on the other hand, may have the resources and experience to produce a fully comprehensive, Level A, report. Organizations can start as beginners (Level C) and move to further levels in subsequent reporting periods.
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So, before an organization decides if it will need extra help or not, it is worthwhile checking the Learning Publications first, then the GRI Guidelines and other documents that form part of the GRI Framework. After considering all thesepublications, training, different levels of GRI reporting making the decision should be easier.
d. Is it only for large organizations? Is it possible for small ones to do it, too?
The GRI reporting process has been specifically designed to be suitable for all types of organizations, not just large companies. Annex 3 in this publication gives a summary of different initiatives in which GRI has been involved, which demonstrate the interest of small and medium-sized companies (SMEs) in implementing a GRI sustainability reporting process and producing a final GRI report. During 2007, more than 80 reports were produced by SMEs in these projects, but we are sure that many other SMEs have used the GRI Guidelines in different countries. The actual number of SMEs involved is therefore likely to be much higher. Many SMEs have asked for support to implement the reporting process for the first time. GRI Learning Publications and the GRI Certified Training Program are designed to support any company, of any size, around the world, reporting for the first time or simply wishing to learn more.
e. Is it expensive?
If a company already has systems in place to gather information, even if the systems are not yet ready to gather all the information required for the sustainability reporting process, the costs should not be very high. But some adaptations will almost certainly be necessary. There will, however, most likely be extra staffing costs. In a small organization, particularly, which may only have a small staff, the work has to be well planned and can require some extra help, particularly the first time the reporting process is undertaken. Resources have to be planned for the publication of the final report, whether it will be a small poster, an electronic file on the website, or some other format.
f. Is it an elixir?
As the testimonies in Section 3 will show, the GRI sustainability reporting process can bring many benefits, some of them unexpected.
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It can help to solve many of the problems an organization faces in the current business context. By doing so, there is a real chance that the organization can attain better positioning during and after the implementation of the reporting process. Increasing transparency, motivating and involving staff, gaining the respect of various stakeholders, and being recognized as having a high-performance management team can certainly give the appearance that the reporting process may be an elixir. However, it should be stressed that the amount of value a company manages to get out of the process depends upon how much effort they are prepared to put into it.
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Please see the GRI website www.globalreporting.org. A full list of the participants in the multi-stakeholder process can be found in Annex 2 to this publication. These documents comprise the GRI Reporting Framework. In the future, it will also include the National Annexes. All of the steps are important for a high-quality sustainability reporting process, but they are only suggestionsthe way an organization implements them is an internal decision. Detailed explanations about each step can be found in The GRI Sustainability Report Guidelines (as pdf or printed versioncan be downloaded for free from the GRI website: www.globalreporting.org) and in The GRI sustainability reporting cycle: a handbook for small and not-so-small businesses (only available in a printed version, which can be ordered from the GRI E-shop on the GRI website). Both have been translated into various languages.
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The value
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uncovered during the reporting process

The value uncovered during the re

Using extracts from testimonies of GRI reporters, this section sets out what organizations have discovered after deciding to implement a reporting process, and what they found to be the value of the reporting process during and after they implemented it. The testimonies were collected between January and March of 2008. The categories used here are based on the feedback in the testimonies. They are divided into two sections: The value of internal changes (internal benefits) and The value of recognition (external benefits).
A. The Value Of Internal Changes

This section sets out how the GRI sustainability reporting process has strengthened organizations internal functionse.g., management structures, employee relations, performance trackingand enabled clear goals and strategies to be formulated.
a. Develop vision and strategy

Gord Lambert, VP, Sustainable Development, Suncor Energy Inc., Canada: Reporting on our sustainability performance allows us to articulate our sustainability vision and strategy and respond directly to stakeholders concerns about the sustainability challenges Suncor faces today and in the future. We are able to demonstrate to investors, communities, employees and other key stakeholders that Suncor is managing risk and seeking new, sustainable business opportunities. Tobias Stcker, CSR Manager, DHV, The Netherlands: Sustainability reporting enables us to use non-financial data to improve the quality of our operations and our strategy Alessandro Guiseppe Carlucci, CEO, Natura Cosmetics, Brazil: The sustainability reports are becoming management instruments, assuming the role of agents for aligning company strategy For these companies, the reporting process compelled them to articulate their vision and strategy for operating in a more sustainable manner, and for offering more sustainable products and services. This is a crucial building block in a sustainability platform, but also promotes the coherence of values in the whole business. During the reporting process companies recognized a link between the implementation of the reporting process and the companys strategy development.
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porting process
A companys goals in the short and long terms, and the strategies to achieve these goals, can be strongly influenced by the reporting process. With a clear vision and strategy, an organization then has a reference point to which it can align future policies, activities, and decision-making. A clear understanding of direction can focus attention and influence long-term strategic decisions.
b. Improve management systems, improve internal processes and set goals

Alberto Andreu, CR and Environmental Director, Telefnica, Spain: CR reports provide a management platform similar to an iceberg structure: on top, we have indicators as the piece of information that is visible in the report. Second, we have systems and processes implemented in the company, not visible to stakeholders, that help to produce and collect all information within the company; and finally, we verify both indicators and processes to make sure CR issues are implemented properly. So finally, CR reports are a driver to speed up the CSR implementation within the company. Anne ODonnell, CEO, Australian Ethical Investment Ltd, Australia: Consistent reporting enables us to monitor our performance and constantly improve our efforts. Jos Ernesto Olmedo Oyarzo, General Manager, Agrcola Santa Laura del Alto S.A., Chile (SME): The reporting process helped us during recent years to better organize data in general, to improve our performance and continuously implement our CSR actions Dr. Norbert Otten, Director, Policy Issues & CSR, Daimler AG, Germany, elected member of the GRI Stakeholder Council: Transparency also facilitates progress in our performance across our businesses. In this effort, the GRI Guidelines have proven to be an indispensable tool. Lars G. Josefsson, President and CEO, Vattenfall, Sweden: Reporting on sustainability issues actually serves as a driver for our performance, and has helped us to clearly identify areas for improvement. Dan Bross, Senior Director, Corporate Citizenship, Microsoft Corporation, USA: The GRI Sustainability Reporting Guidelines provide Microsoft with an invaluable reference as we determine the key metrics We think these measures help us improve our performance
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David Kingma, Sustainable Development Reporting and Coordination Manager, Holcim, Switzerland: The discipline of setting and monitoring targets focuses the organization to allocate resources in meaningful areas and ensures that effective structures are in place to drive the triple bottom line agenda. George Dean, Board Member, Corporate Express NV, The Netherlands: One of the challenges as you develop your sustainability report is focusing your efforts and setting practical goals. It is important to be realistic with your expectations, or you will sacrifice quality trying to accomplish too much in a short period of time.
A key benefit of reporting for these companies is that it allows them to track progress and sheds light on areas needing improvement, helping them to manage what they measure. When organizations decide to start a reporting process they do not expect to create this value. But, when an organization publicly reports its performance, there is a marked impact on its internal organization. Transparency accelerates and influences organizational change faster than would occur without public scrutiny. There is a clear pressure to take action to make sure the numbers improve in the next report. Numerical targets focus efforts and drive performance. Once you track and assess your performance, you can identify areas where your organization should or could be doing better. Measuring and reporting triggers the process of exploration, questioning, and discovery that is fundamental to building coherence between an organizations performance and wishes. Once an organization starts reporting there will be increased expectations, both internally and externally, for continual improvement. The report helps organizations to know where they are headed by knowing where they have come from. The credibility does not come from good news only. It comes from the implementation of actions to achieve the desired goals, particularly in areas where this is not easy. For these organizations, the reporting process helps to achieve these goals.
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c. Identify weaknesses and strengths

Richard Boele, Director, Banarra Sustainability Assurance and Advice, Australia: The most powerful impact of our reporting came from putting our weaknesses in the public domain. I was surprised at how these weaknesses were raised within tender processes and even by stakeholders we were engaging on behalf of clients. While they were raised to challenge us, it actually invited a conversation about how we were responding to these weaknessesa conversation that invariably made us look stronger. Piet Sprengers, Head of Sustainability, ASN Bank, The Netherlands: If there is one clear value in sustainability reporting, it is getting your own sustainability performance clear. The internal process leading up to sustainability reporting is an evaluation of policies, targets, procedures and performances that makes you understand the strengths and weaknesses of your own company on sustainability. George Dean, Board Member, Corporate Express NV, The Netherlands: It is extremely valuable to have dialogue regarding the core indicators in our sustainability report, as they help us to identify our strengths and improvement areas and develop action plans Hilde M. Aasheim, Chief Staff Officer and Executive Vice President, StatoilHydro, Norway: Sustainability reporting and disclosure of the various risks and opportunities which StatoilHydro faces enable greater consistency in our performance Hkon Nordang, Senior Advisor, Social Responsibility, StatoilHydro, Norway: Sustainability reporting is an essential part of knowing your organizationits key risks, challenges and opportunitiesand provides crucial insights into the long-term viability and value-creation potential of the company Gord Lambert, VP, Sustainable Development, Suncor Energy Inc., Canada: Reporting on our sustainability performance allows us to demonstrate to investors, communities, employees and other key stakeholders that Suncor is managing risk and seeking new, sustainable business opportunities.
The exercise of understanding the relationship between everyday activities and economic, environmental and social issues, listening to stakeholders to choose the material aspects and to decide on the reports focus, understanding how the organization is dealing with the sustainability issues, checking if the management tools and indicators are capturing and monitoring them, etc., allows the organization to see its weaknesses and strengths clearly.
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Organizations which know their weaknesses and strengths are most likely to survive in the current interconnected societal context and demanding business environment. Out of the whole process, this may be the most valuable benefit for managers, as a fundamental reference point from which to plan and project the development of the organization. When an organization is able to use this capital in the reporting process as well, it is in a much stronger position to build a good reputation and to improve general performance. As a consequence, opportunities for dialogue around concrete points for action will increase internally and externally. Such dialogues can produce much more productive results than the usual general and unfocused ones. For these companies the reporting process provides early warning of trouble spotsand shows up unexpected opportunities. These discoveries can help management evaluate potentially damaging developments before they emerge as unwelcome surprises, or grab opportunities before the competition. Sometimes an organization discovers, during the reporting process, that some aspects generally considered very well managed are in fact not; this could jeopardize the reputation of the organization. It is also common to identify critical aspects which have never been considered for monitoring.
d. Attract and retain employees

Barbara Dubach, Head of Social Responsibility and SD Coordination, Holcim, Switzerland: Sustainability reporting has the capacity to add value to an organization for a variety of stakeholders employees prefer to work for such companies Kamal Meattle, CEO/Director, Paharpur Business Centre & Software Technology Incubator Park, India: The benefits of sustainability reporting are many We are able to attract and retain talent and our team members take pride in the fact that they are working with a socially responsible, environmentally sensitive and a profitable organization Seyhan Yilmaz, Marketing Manager, Topkapi Iplik San. Ve Tic. A.S., Turkey (SME): Reporting within the GRI Framework is about asking questions about the economic, social and environmental impacts of your activities and looking for answers together with your staff. This process leads to increased employee awareness as well as motivated staff and increased productivity rates
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Meg Wrixon, Marketing Executive, Energetics Pty Ltd, Australia: As the author of Energetics sustainability report, the value of sustainability reporting has been evident by the amount of positive feedback received from clients and potential employees on the transparency of our report. The production of the report was also a valuable learning experience for the whole reporting team. Mari-Ann Green, Chairman and CEO, Formation Capital Corporation, Canada: Reporting on our progress helps to inform our employees, shareholders, the public and other stakeholders about our progress toward that goal.
An organizations high performance standards and reputation are intangibles that help to attract and retain employees. These attributes can be demonstrated by the quality of the sustainability reporting process and by the final report showing environmental and social commitment and performance. Firstly, the organization will have the benefit of a learning process involving the core reporting team. They will get to know the company much better, will see the real challenges and will tend to make a commitment to solving problems and to celebrating positive aspects of the organizations performance. Other employees, in different areas, will also be involved in the reporting process, even if only for data gathering rather than in the process coordination. They will discuss the task with others and by doing so, many more people in the organization (particularly in a large organization) will find out about the process that is taking place. If the process is transparent, it can help to enhance the reputation of the company. The reporting process shows that a company is not just talking about sustainability issues, but also preparing to publicly discuss, measure and act on them. This will enhance the companys internal and external reputation. In the end, the workforce will contribute more and stay longer if it is motivated, empowered, and aligned with strategic objectives. The final report is sometimes also used in the selection process for potential employees and to attract specially talented candidates. Organizations need to distinguish themselves from the competition through their values, work climate, principles espoused, and performance reported. A sustainability report communicates commitment and can attract motivated staff.
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e. Connect departments and encourage innovation

Victor Luviano Cedillo, Research and Development Department, Alianza con la Biosfera, S.A. de C.V. (AliBio), Mexico (SME): [Sustainability reporting is] an important factor in the whole sustainability process of the organization, thus creating a continuous development of innovation and application of new technologies within the organization. Toms Carmona, Business Citizenship Manager, Serasa, Brazil: For Serasa the advantages of the application of the GRI guidelines were several: promote engagement of departments which provide information for the report and they are together becoming more aware of the necessity to include indicators in the daily management of certain processes. Katy Dobbs, Program Manager, Corporate Social Responsibility, Corporate Express NV, The Netherlands: ensuring that they dont treat it as another reporting mechanism, but rather use it as a catalyst for change. Sustainability reporting requires a concerted effort to arrive at broadly accepted strategies, objectives, and action plans. The reporting process links typically discrete and insular corporate functionscommunity relations, finance, marketing, research and development, human resourcesand operating units into a more integrated strategic vision, which can create space for new, unusual conversations that pave the way for discovery and innovation. Companies declare that this novel collaboration has led to: better internal communications improved collective understanding of the concept of sustainable development different business units feel closer and learn from each other more support for each others initiatives cross-fertilization of sustainable development ideas and practices
f. Raise awareness with the Board

Tony Cooper, Managing Director, Energetics Pty Ltd, Australia: I was initially concerned that this reporting initiative would be a drawn-out experience with the Board of Directors. In fact the non-executive directors, representing our private equity interests, were very supportive and, unlike market norms, were keen to produce the high level of transparency that we also wished to achieve.
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George Dean, Board Member, Corporate Express NV, The Netherlands: It is extremely valuable to have dialogue regarding the core indicators in our sustainability report, as they help us to identify our strengths and improvement areas and develop actions plans. It is a powerful exercise to understand in what ways we affect and can positively contribute to society. In large organizations especially, there is some distance between the reality of everyday management and the summarized version the Board of Directors are given for discussion. For this reason, many non-financial aspects of the organizations activities are not well known to the Board, nor is there space for such discussion in their meetings. When an organization decides to publish a sustainability report, the Board of Directors is involved in the decision to prepare a report. In many organizations they will also see preliminary versions of the report for discussion, and will have to approve the final report before it is published. Clear communication with the supervisory bodies on this subject contributes to more robust corporate governance. It is a primary responsibility of the Board and the Chief Executive to determine the implications of the organizations future environmental and social risks, disclose them and mitigate them. Putting together a sustainability report and discussing the general performance of the organization with the Board helps to plan and improve sustainability performance, as well as to manage risks.
g. Achieve competitive advantage and leadership

Halit Akinci, Member of the Board, Topkapi Iplik San. Ve Tic. A.S., Turkey (SME): We believe that the reporting will contribute to global efforts to create a sustainable future on the one hand, and support the competitive position of our company in the market on the other. Dan Bross, Senior Director, Corporate Citizenship, Microsoft Corporation, USA: We think these measures help us improve our performance, demonstrate leadership, and build trust essential for our success as a business. Doros Constantinou, Managing Director, Coca-Cola Hellenic, Greece: Sustainability reporting is an essential tool towards demonstrating our leadership on environmental and social initiatives Elfrieke van Galen, Senior Vice President, Corporate Communications & Corporate Social Responsibility, KLM, The Netherlands: KLM takes sustainability very seriously. Reporting along guidelines that have been adopted by organizations throughout the world is a pre-requisite for a company whose ambition it is to lead the way in sustainability.
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Alfredo Suarez Rivero, President and General Manager, Alianza con la Biosfera, S.A. de C.V. (AliBio), Mexico (SME): For AliBio, the value of having a sustainability report is that being the first SME in Mexico as well as being one of the five companies in Mexico to have a sustainability report, places AliBio as an innovative company and promotes this commitment to interested parties. Julio Hernandez Flores, Head of Worker Health, Security and Wellbeing, Soc. Inmobiliaria Campos del Carmen Bajo Ltda, Chile (SME): Reporting transformed us and differentiated us from the others, made the exporters notice us and we are now seen as pioneers. Banks and financial institutions also recognize our efforts. The implementation of a GRI sustainability reporting process and the publication of a GRI sustainability report is not yet as common a practice in all regions and sectors as financial reporting is. For these reasons, organizations which decide to do it can be identified as leaders. Those who do report differentiate themselves from the general approach to evaluation and accountability for their performance. The identification of an organization as a leader will also be influenced by the quality of the reporting process and the improvements and actions the organization can show in a consistent way, year after year.
h. Attract investors
Piet Sprengers, Head of Sustainability, ASN Bank, The Netherlands: For ASN Bank as a sustainable bank, the value of sustainability reporting is primarily in the sustainability reports we read to come to an investment decision. Without sustainability reports it would be a lot more difficult to find the companies that adhere to our human rights and environmental criteria. Barbara Dubach, Head of Social Responsibility and SD Coordination, Holcim, Switzerland: Investors prefer to invest in companies that demonstrate through effective reporting that they operate responsibly Philip Sloane, Head of Research, Centre for Australian Ethical Research (CAER), Australia: Sustainability reporting enables you to monitor and improve your companys environmental, social and economic performance. This information is also of interest to investors, who recognize that environmental, social and ethical risks can impact a companys profitability.
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Carol Escobedo, Head of Operations, Valle del Maipo Chilean Fruit S.A., Chile (SME): By doing the sustainability report one can improve quality of life for employees and so they become loyal to the company. There was an excellent experience when buyers from other countries decided to buy our products after we have shown them our Sustainability report. Investors are asking tough questions of companies these days. The main reasons are related to risk management in the short term and to evaluation of the real chances of growth in the medium and long terms. In recent years, the stock markets have created several socially responsible stock market indexes.1 Analysts for these indexes are asking a broader series of questions of companies. Consequently, shareholder resolutions are asking companies for better non-financial disclosure. The banks are also creating ethical, social or responsible funds to attract investors to invest in selected companies with particularly good performance in different aspects of the sustainability agenda: good governance, ethical values, social agenda, environmental actions, etc. In the general business context, through the Carbon Disclosure Project,2 hundreds of investors with trillions of dollars under management are asking companies about their greenhouse gas emissions. The implementation of a GRI reporting process has helped companies to improve their general management of sustainability issues, to understand their main weaknesses and strengths, and to prepare to talk about their own sustainability performance in a concrete way. This is evidence of high-quality performance management and it attracts investors.
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B. The Value Of Recognition

This section sets out how the GRI sustainability reporting process has strengthened organizations external image and commitment to sustainable solutions.
a. Enhance reputation, achieve trust and respect

Barbara Dubach, Head of Social Responsibility and SD Coordination, Holcim, Switzerland: Sustainability reporting has the capacity to add value to an organization for a variety of stakeholders. Civil society and governments tend to trust those organizations more. Lars G. Josefsson, President and CEO, Vattenfall, Sweden: For Vattenfall, sustainability reporting builds trust and supports us in our ambition to serve society Dan Bross, Senior Director, Corporate Citizenship, Microsoft Corporation, USA: We think these measures help us build trust essential for our success as a business. Seyhan Yilmaz, Marketing Manager, Topkapi Iplik San. Ve Tic. A.S., Turkey (SME): The initial aim of reporting is not about marketing, but one of the results of the reporting is enhanced reputation and increased customer loyalty. Wilson Santarosa, Social Communication Manager, Petrobras, Brazil: The Social and Environmental Report, for Petrobras, is the clearest and most efficient way of showing its economic, social and environmental development. By presenting it, Petrobras obtains confidence and respect, and contributes to maintenance of a lasting and sincere relationship with interested parties. Antonio Javierre Montaner, Director, Javierre S.L., Spain: The greatest value found by our company preparing annual sustainability reports is the confidence it brings to our organization and its activities. Francisco Ravenna, Agronomist, Via Huelqun Ltds, Chile (SME): When we report we can show the quality of our products and services, improve the image of the company and gain reputation. Investors and other interested parties are influenced by a companys reputation and the respect and trust it has earned. Reputation rankings published in business magazines are often based in part on publicly available sustainability information.
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Consequently, there are always concerns about how much the reputation of a company might be damaged by public disclosure on potential risks or bad news, and the natural instinct is for organizations to avoid such disclosure. But reporting both good and bad news can create trust and respect. Interested parties are more likely give a company the benefit of the doubt if they are honest and open about their performance, even if it is not very good. Experience shows that dishonesty about weaknesses, which in the current context of worldwide, instant digital connection may be revealed through so many communication channels, tends to do more damage to a companys reputation than open and honest treatment of weaknesses in a sustainability report. Companies found that sustainability reporting often helped achieve better stakeholder relations and increased trust, which in turn leads to other benefits: Growing brand value and developing customer loyalty Increasing market share Gaining improved access to capital, and a lower cost of capital Enhancing community license to operate Streamlining regulatory approvals
b. Transparency and dialogue with stakeholders

Tony Baynes, Director of Public Affairs, Coca-Cola Hellenic, Greece: Initial worries about disclosing some information proved unfounded, and the transparency and credibility generated from the reporting were more than beneficial to our stakeholder relations. Dr. Norbert Otten, Director, Policy Issues & CSR, Daimler AG, Germany: Reliable and comprehensive reporting on CSR issues not only supports our company in efficiently conducting a multi-faceted stakeholder dialogue. Transparency also facilitates progress in our performance across our businesses. In this effort, the GRI Guidelines have proven to be an indispensable tool. Roxanne Decyk, Corporate Affairs Director, Royal Dutch Shell, The Netherlands: It helps us build trust with our external stakeholders sa Pettersson, CSR Manager, Vattenfall, Sweden: The major benefit of sustainability reporting is transparency. Openness being one of Vattenfalls core values, it is of utmost importance to us to be transparent on our social and environmental performance and impact
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Piet Sprengers, Head of Sustainability, ASN Bank, The Netherlands: The ultimate challenge for sustainable reporting is to get the interest of stakeholdersespecially stakeholders that have expectations on a companys performance on sustainability. Gord Lambert, VP, Sustainable Development, Suncor Energy Inc., Canada: Reporting on our sustainability performance allows us to respond directly to stakeholder concerns about the sustainability challenges Suncor faces today and in the future Maria Helena Zucchi Calado, Sustainability Manager, Natura Cosmetics, Brazil: The exercise of transparency that such reports imply reinforces stakeholder trust Fernando Ramrez P., General Manager, Envases Orlandini S.A., Chile (SME): It is an opportunity for reflection about our corporate social responsibilities, and for listening to the voices of our stakeholders. Raji Hattar, Chief Projects Officer, Aramex, Jordan: Sustainability reporting is a long-term investment and commitment. Its value lies in our understanding and identifying our corporate responsibilities towards all our stakeholders George Dean, Board Member, Corporate Express NV, The Netherlands: It is extremely valuable to have dialogue regarding the core indicators in our sustainability report Gennie Yen, President, Veda International Corp., Taiwan: With the Sustainability Report, the abstractness of our CSR programs becomes concrete for our stakeholders to visualize and support. As communication professionals, we frequently assist our clients with their CSR programs. Now that we have our own solid report, we can further ensure that our service is truly profound. These companies see the sustainability reporting process as an important tool to show transparency and disclose sustainability performance to their stakeholders. They see the reporting process as an opportunity for reflection of corporate social responsibilities and for listening to the voices of their stakeholders. They see transparency and dialogue as linked.
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The opportunity for dialogue could come at the beginning of the process, when the company is self-assessing its performance and choosing the material issues to monitor and report on, but also can continue throughout the whole processe.g. before and after defining the format of the final report. Generally, organizations think about dialogue after the report is finished, which is not where the whole value is. By entering into dialogue with different groups, an organization can gain insight into internal and external viewpoints. The report is actually a good excuse for bringing people to the table. Through the relationships the reporting process can create between an organization and different groups of stakeholders, the organization can get inputs for different areas and review processes and business opportunities. Stakeholders become participants in co-creating value for the organization.
c. Demonstrate commitment to sustainability

Halit Akinci, Member of Board, Topkapi Iplik San. Ve Tic. A.S., Turkey (SME): We believe that the reporting will contribute to the global efforts to create a sustainable future Jens Rupp, Sustainability Manager, Coca-Cola Hellenic, Greece: Sustainability reporting not only serves to inform our external stakeholders, but also triggers internal changes in awareness and mind-set towards sustainability topics, which in turn generates yet more initiatives towards more sustainability. Julian Crawford, Chief Executive Officer, EcoSTEPS, Australia: For EcoSTEPS, sustainability reporting is a means not an end. The processes and thinking that go into our reporting are at least as important as the final report itself. We try to share our learning and experience with our stakeholders. Alan Vichert, Vice President Risk Management, Formation Capital Corporation, Canada: Our real challenge is in creating sustainable development. Subsequent reporting on that development will be a pleasurable task. Inka Pieter, Director CSR, KLM, The Netherlands: In a way, the yearly report challenges us to come up with new initiatives and results on sustainability
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Roopali Shahaney, General Manager/CSR Officer, Paharpur Business Centre & Software Technology Incubator Park, India: I think it is important to Walk the Talk at the end of the day and that we truly believe it is the biggest challenge for any organization. Nick Rockey, Managing Director, Trialogue, South Africa (SME): As a company offering sustainability services, it is important for us to live out our values and lead by example in running a sustainable business. Reporting gives the company an opportunity to understand the consequences and implications of striving to improve our sustainability performance. Macarena Abu-Awad, Gerente de Administracin y Finanzas, Abufrut, Chile (SME): [The reports] showed us that as a part of a community, we all influence each other and that we can also support each other. Bouwe Taverne, Head, Sustainable Development, Rabobank Group, The Netherlands: CSR reporting is key for long-term sustainable business. The GRI reporting process can help organizations to reflect about realistic and feasible steps towards building a sustainable future, which is the real challenge. Public reporting is a practical and increasingly credible means for organizations of all sizes to demonstrate to a wide range of stakeholders their commitment to sustainable development. Publishing a report is an ideal way to show how an organization is living up to its commitments. As noted previously, public commitments attract attention and also motivate all parts of an organization to achieve the proposed goals. The result is that the organization achieves coherence and society gets results. The sustainability reporting process can be an important tool to make and keep commitments to build a sustainable future.
d. Enable comparability and benchmarking

Hanns Michael Hlz, Global Head of Sustainable Development, Deutsche Bank, Germany: I consider the Global Reporting Initiative to be one of the most important efforts to strengthen and promote business conduct in the global context according to sustainability principles. We need measuring units and verification procedures that are the same for everyone.
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sa Pettersson, CSR Manager, Vattenfall, Sweden: Using the GRI Guidelines strengthens the reporting further by providing means for our stakeholders to easily compare our results with others, which strengthens our credibility. Carlos Marin Morales, General Director, Alltournative SA de CV, Mexico (SME): Reporting our sustainability achievements and challenges represents the opportunity to share and compare our environmental and social performance with international practices, and to identify the areas that have not yet been included in our sustainability strategy. Ujang Adhari, Director, PT Intaran, Indonesia: To examine the success or failure of an organization, it requires a standardized tool to measure and to evaluate its past and ongoing activities Eve Leopold-George, Consultant, Trialogue, South Africa (SME): Reporting is a great way for the company to explore the limitations and strengths of our reporting systems/processes, measure performance, benchmark our performance and plan for the future. Juan Perez Carrillo, Director for Markets and Institutional Relations, Serasa, Brazil: For Serasa, whose role is to create tools for a safer and more inclusive credit rating, the GRI is a great ally in the task of raising practices of sustainability reporting to a level equivalent to that of financial reports, seeking comparability, credibility, accuracy, periodicity and legitimacy of information.
Companies understand that in order to facilitate discussion about common concerns and solutions, it is essential that sustainability practices, knowledge and experience can be compared and shared. This requires a common language and common metrics. This is the reason the GRI Reporting Framework was created. As the testimonies above show, for these companies there is a real need to promote comparability and benchmarking for sustainability practices.
For example, the Dow Jones Sustainability Indexes, the FTSE4GOOD Index Series, the JSE Socially Responsible Investment (SRI) Index (South Africa), The Bovespa Corporate Sustainability Index (Brazil), and the Australian SAM Sustainability Index (AuSSI). www.cdproject.net.
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Prepare
Define
Report
Connect
Monitor
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Celebration Check points Boundaries Principles 200 km 0 200 Miles
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Exercise: Gaining Value Throughout the Process

Exercise: Gaining Value Throughout

In this section, for the benefit of readers who are not familiar with the latest versions of the GRI Guidelines (the G3 version was launched in October 2006 and the G3.1 in March 2011 - both are currently valid),1 we would like to offer a short guided tour through the five phases which GRI use to present the GRI sustainability reporting process. During this tour we will also highlight the value to be found in each of these phases, as indicated by the companies whose testimonies appear in this publication. This relationship between a certain step in the preparation of the report and the value created or captured during the process is not a direct one. Some values reported are created after the whole process is completed or during all steps. We hope that this approach will help the reader to visualize the value which can be created during the reporting process. The five phases are carefully explained in the first GRI Learning Publication, The GRI Sustainability Reporting Cycle: a handbook for small and not so small organizations and are listed here in the same order as they are presented in that publication. They were written primarily for the reporting coordinator, for the leader of the reporting process in the organization.
a. PREPARE: Plan Your GRI Sustainability Reporting Process

Potential value to be gained: Develop vision and strategy - Identify weaknesses and strengths This is primarily an internal phase in the GRI sustainability reporting process. Of course your organization can invite external experts to help, but the main objectives are to align internally and get ready to start the reporting process. During this phase you should try to understand and identify your organizations most critical economic, environmental and social aspects. Imagine your Organizations GRI Sustainability Report The coordinator should ask him/ herself initial questions, like: What form will the report take? By when would we like to produce the report? What will be included? Who will help put it together? Who are the audiences for the report? Develop an Action Plan This action plan is to be presented to the decision-makers of the organization. This includes creating a timescale, building a report team, and figuring out tasks and responsible parties. Hold a Kick-off Meeting The coordinator should hold a kick-off meeting. Objectives for this meeting include: assessing your organizations goals; trying to understand and identify the main positive and negative economic, social, and environmental impacts of daily activities; identifying which of those impacts your organization should focus to plan, act and report on; and finally agreeing on the reporting process, participants, timescale and budget.
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the Process
b. CONNECT: Talk and Listen
Potential value to be gained: Transparency and dialogue with stakeholders - Enhance reputation Achieve trust and respect In this phase the organization should discuss with different internal and external groups the topics chosen to be the focus of the report. This is a fundamental step to define the content of the report, and consequently systems which need to be put in place. For this the organization will need to identify the main internal and external stakeholders and seek their input to help decide what to report on. Identify your Stakeholders Stakeholders are groups or individuals who can be significantly affected by the organizations activities, products, and/or services; and whose actions can affect the ability of the organization to successfully implement its strategies and achieve its objectives. Prioritize Stakeholders Cut down the long list so you can determine who to engage depending on the context of your organization. This dialogue is to help the organization to identify the highest priority topics to be managed and reported on, so choose the groups to be invited accordingly. The groups of stakeholders to be consulted can be extended in the future. Dialogue with Stakeholders The goal is to target a representative sample that can give you meaningful indications and opinions about their expectations for your report. Before actually engaging in dialogue, you will have to determine what to ask and how to connect (e.g., meetings, survey).
c. DEFINE: Focus Your Efforts

Potential value to be gained: Connect departments and encourage innovation - Raise awareness with the board - Achieve competitive advantage and leadership After internal reflection and external dialogue, your organization can begin to determine report content. This phase also addresses which internal modifications might be required to facilitate reporting, and which indicators will be added to your future reports. Defining goals is also part of this phase. Select Issues for Action and Reporting The coordinator has to prepare a summary of the discussion and propose a list of material indicators to focus on. The initial list of issues should emanate from the kick-off meeting and stakeholder engagement. To determine a final list for reporting, you should test the indicators against the G3 Reporting Principles of Materiality, Sustainability Context and Completeness.2 Write a Recommendation This recommendation to the decision-makers should list the material indicators and indicate which are feasible to report on for the current reporting period and which should be included in future reports.
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Decide on Report Content To make a final decision on report content, you will need to involve the ultimate decision-makers, which often includes the organizations leader/owner and senior management. The final list of indicators to be monitored will come from this meeting. Discuss and Set Goals Goals can be exact quantities or can be change processes. Goals can include implementing new measurement systems, or improving procedures and policies, among other possibilities. Check Internal Procedures and Make Changes Most likely, internal changes will be required to achieve your organizations sustainability goals, whether its to improve measurement and monitoring, or to improve performance.
d. MONITOR: Build Your Report

Potential value to be gained: Improve management systems, internal processes and set goals Connect departments and encourage innovation - Demostrate commitment to sustainability Attract and retain employees Now is the time to collect the information needed to report on the indicators, and ensure data quality. This phase also provides ideas on how you can make data collection and analysis more efficient. Normally this is the longest phase and it never stops. Check Processes and Monitor To address all of the indicators previously identified, your organization may have to change the way information is collected and recorded. Establish processes to ensure that high-quality data is collected throughout the year. Ensure Quality of Information An easy way to check the quality of the report contents is to test it against the GRI Reporting Principles of Balance, Comparability, Reliability, Accuracy, Timeliness and Clarity. Follow up For all change there is a period of transition: nothing happens immediately. Continually monitoring your organizations overall performance is crucial for reaching your goals. Dont wait until its too late to follow-up: conduct early and numerous checks and keep the lines of communication open.
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e. REPORT: Check and Communicate

Potential value to be gained: Attract investors - Enhace reputation, achieve trust and respect Demonstrate commitment to sustainability - Enable comparability and benchmarking All the necessary parts of a GRI report are almost ready. During this phase you will experience the actual dynamics of choosing a format for the report, writing it and getting it finalized. Choose the Best Way to Communicate To ensure that different stakeholders actually read your report, it might be necessary to use more than one communication method. Write the Report Because different organizations have unique cultures there is no single correct report structure. For somewhere to start, the GRI Guidelines provide a suggested structure. Finalize the Report Before launching the final report, it should be reviewed internally for accuracy, positioning, balance, tone and other characteristics. Senior management will need to give final approval. External assurance of your report could add credibility. The assurance process would end here but start much earlier. Launch the Report The launch event is the perfect opportunity to celebrate and acknowledge everyone involved in the reporting process. Actively share your report: hold meetings, give presentations, send packages, and interact with stakeholders about your report and sustainability performance. Prepare for the Next Cycle Gathering feedback is the first step to prepare for the next period of reporting. It could be as simple as asking a few questions to colleagues or sending around a survey or conducting short face-to-face interviews. Ask tough questions of the report team about the reporting process so that it can be streamlined and improved the next time around.
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Principles to Increase the Value of Your Report

It is only when you look at how a report conforms to the fundamental GRI Reporting Principles that you can make a clear assessment of its quality. The real value of a sustainability report is when it enables readers to make better management, purchasing, employment, investment, campaigning and other decisions based on better information. Produce reports that exhibit the principles below and you will provide credible information readers can trust. a. Materiality Brevity can be beneficial. A report should not overwhelm you with information. It should include relevant information that can affect stakeholder decisions and behaviors. You should be able to assess compliance-based and policy-based performance. Look for an explanation of how the report contents were decided. Were they based on voluntary, governmental, or industry guidelines? An organization should share with readers what it sees as its key performance indicators. b. Stakeholder Inclusiveness An organization should engage its stakeholders in preparing and improving their sustainability report. The report should describe how stakeholders reasonable expectations, interests, and information needs were assessed and addressed. Were stakeholders involved in selecting the indicators or reviewing the report? Have their concerns influenced the report? Has the company responded to concerns voiced in feedback on reports from previous years? c. Sustainability Context The report should put policies and performance in the context of broader sustainability or social well-being, and not just provide an introspective view. The underlying question of sustainability reporting is how an organization contributes, or aims to contribute, to the improvement or deterioration of economic, environmental, and social conditions, developments, and trends at the local, regional, or global level. For example, this could mean that in addition to reporting on its ecoefficiency, an organization might also present its absolute pollution loading relative to the capacity of the regional ecosystem to absorb the pollutant. Does the report show a clear effort to relate activities to impacts? d. Completeness Although there are multiple checklists to help judge completeness, the determining factor is whether there is enough content to understand how the company lives up to its commitments. Reports should include quantitative and qualitative information. They should depict performance trendsa static snapshot tells you little about which direction the company is headed. Look for evidence of a systematic approach, a commitment to continual improvement, and actions that back up policies. Otherwise, activities are ad hoc and performance is a lottery. e. Balance Without it, a sustainability report is called greenwash. A report should be free from bias. Hopefully
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we are past the days of good news promotional pieces. Overstatements are easy to spot, omissions are not. A company needs to tell the whole story. If it reports taxes paid it should also cover subsidies received. Graphs should not be misleading, with axes not starting at zero, or with missing years. Look for language that is neutral and shows that they really get it. You should not see terms like sustainable growth (an oxymoron) or stakeholder management (stakeholders should be engaged not managed). f. Comparability A company must present consistency of message and of data. A company should not say one thing in its report and something else in another context (e.g., auto industry claiming environmental responsibility but lobbying against increased fuel efficiency standards). Consistency contributes to comparability. Consistent internal measurement systems ensure credible year-to-year comparisons. The use of consistent industry benchmarks and indicators allows comparisons with competitors. g. Accuracy The reported information should be sufficiently detailed for stakeholders to assess the organizations performance. The accuracy of quantitative information may depend on the specific methods used to gather, compile, and analyze data. These methods should be stated. h. Timeliness The usefulness of information is closely tied to whether the timing of its disclosure enables stakeholders to effectively integrate it into their decision-making. The timing of release refers both to the regularity of reporting as well as its proximity to the actual events described in the report. If a report is released a long time after the events described in it, readers might not be able to make fully informed decisions. i. Clarity Because a sustainability report has such a diverse readership it must be understandable by a maximum number of readers, while keeping an appropriate level of detail. It should avoid jargon. Technical and scientific terms should be explained. It should be user-friendly. A glossary is often helpful. A report should not obfuscate, it should enlighten. j. Reliability An independent check of the reports data and assertions provides a level of comfort that the report is accurate and fair. Look for an assurance statement from an auditor, and/or from a multistakeholder group (e.g., community group, advocates, subject experts, auditor), that attests to the reports reliability.
1
The GRI G3 Guidelines contained some differences from the previous version. On the one hand, the reporting levels were created as mentioned in Section 3. Level C is a good place for beginners to start. On the other hand, the GRI G3 Guidelines asked organizations to work on improving dialogue with stakeholders to define the focus of the non-financial performance. This concept is summarized in the Materiality Principle. This request creates a strong connection between the GRI reporting process and the ability of the organization to listen and talk to different groups. More information about the GRI Reporting Principles can be found on pages 48 - 49.
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Annexes
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Annex 1
GRI requested, via e-mail, all its Organizational Stakeholders to volunteer statements from both senior executives and those responsible for the reporting process, about the value of the GRI reporting process and its main challenges. In total 67 companies responded. Of the statements received, 76 statements from 39 companies are used in this publication. All the responses received are also available on the GRI website. List of companies which contributed to this publication: Africa: Trialogue, South Africa Asia: Aramex, Jordan Paharpur Business Centre & Software Technology Incubator Park, India PT Intaran, Indonesia Veda International Corp., Taiwan Europe: ASN Bank, The Netherlands CECA, Spain Coca-Cola Hellenic, Greece Corporate Express NV, The Netherlands Daimler AG, Germany Deutsche Bank, Germany DHV, The Netherlands Holcim, Switzerland Javierre S.L., Spain KLM, The Netherlands Rabobank Group, The Netherlands Royal Dutch Shell, The Netherlands StatoilHydro, Norway Telefnica, Spain Topkapi Iplik San. Ve Tic. A.S., Turkey Vattenfall AB, Sweden North America: Formation Capital Corporation, Canada Microsoft Corporation, USA Suncor Energy Inc., Canada Oceania: Australian Ethical Investment Ltd, Australia Banarra Sustainability Assurance and Advice, Australia Centre for Australian Ethical Research (CAER), Australia EcoSTEPS, Australia Energetics Pty, Ltd, Australia South America: Abufrut, Chile Agrcola Santa Laura del Alto S.A., Chile Alianza con la Biosfera, S.A. de C.V. (AliBio), Mexico Alltournative SA de CV, Mexico Envases Orlandini S.A., Chile Natura Cosmetics, Brazil Petrobras, Brazil Serasa, Brazil Soc. Inmobiliaria Campos del Carmen Bajo Ltda, Chile Valle del Maipo Chilean Fruit S.A., Chile Via Huelqun Ltda, Chile
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Annex 2
Multistakeholder process participants who helped develop the GRI G3 Guidelines
G3 Guidelines and Protocols Content Development Volunteers from business, non-governmental organizations, labor, accountancy, investment, academia, and others came together to create all aspects of the G3 Guidelines and Protocols. The following multistakeholder technical working groups were convened between January and November 2005, and each delivered a different part of the content of the G3 Guidelines. Indicators Working Group (IWG) Members The Indicators Working Group was responsible for reviewing the indicators set as a whole; ensuring quality and consistency of the indicators design; and designing overall fit with the Technical Advisory Committee guidance. Mr. Neil Anderson, Union Network International, UNI Mr. David Bent, Forum for the Future Mr. William R. Blackburn, William Blackburn Consulting Ms. Julie-Anne Braithwaite, Rio Tinto/ICMM Ms. Sarah Forrest, Goldman Sachs International Ms. Somporn Kamolsiripichaiporn, Chulalongkorn University Mr. Robert Langford, Fdration des Experts Comptables Europens (FEE) Ms. Stephanie Maier, Ethical Investment Research Service (EIRIS) Ms. Asako Nagai, Sony Corporation Mr. Ron Nielsen, Alcan Inc. Mr. Michael Rae, World Wide Fund Australia Ms. Ulla Rehell, Kesko Corporation Mr. George Nagle, Bristol-Myers Squibb Ms. Filippa Bergin, Amnesty International Ms. Giuliana Ortega Bruno, Instituto Ethos The IWG worked with six issue-specific Advisory Groups that were responsible for reviewing indicators and creating technical protocols for indicators in their area of expertise. Society Advisory Group Members Ms. Anne Gambling, Holcim Mr. Sachin Joshi, Center For Social Markets (CSM) Mr. Craig Metrick, Investor Responsibility Research Center (IRRC) Mr. Keith Miller, 3M Ms. Ruth Rosenbaum, Center for Reflection, Education and Action (CREA) Ms. Glaucia Terreo, Instituto Ethos Mr. Peter Wilkinson, Transparency International
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Human Rights Advisory Group Members Ms. Marina dEngelbronner, Humanist Committee on Human Rights (HOM) Ms. Bethany Heath, Chiquita Brands Mr. Jorge Daniel Taillant, The Center for Human Rights and Environment (CEDHA) Rev. Mr. David M. Schilling, Interfaith Center on Corporate Responsibility Ms. Susan Todd, Solstice Sustainability Works Inc. Mr. Hirose Chuichiro, Canon Mr. Steve Ouma, Kenyan Human Rights Commission Mr. Bjrn Edlund, ABB Ltd Ms. Marleen van Ruijven, Amnesty International Environment (Biodiversity and Water) Advisory Group Mr. Ian Blythe, Boots Group PLC Mr. Ian Dutton, The Nature Conservancy Council Ms. Annelisa Grigg, Fauna & Flora International Ms. Nancy Kamp-Roelands, Ernst & Young Netherlands/ Royal NIVRA Ms. Erin Musk, City West Water Mr. Mike Rose, SASOL Mr. Fernando Toledo, Codelco Environment (Pollution) Advisory Group Members Ms. Tanja D. Carroll, Coalition for Environmentally Responsible Economies (CERES) Mr. Yutaka Okayama, Toyota Motor Corporation Ms. Maria Fatima Reyes, Philippine Institute of Certified Public Accountants (PICPA) Mr. Yogendra Kumar Saxena, Gujarat Ambuja Cements Mr. David Stangis, Intel Corporation Ms. Sonia Valdivia, The Catholic University of Peru Mr. Eric Shostal, Institutional Shareholder Services Ms. Lucian Turk, Dell Inc. Labor Advisory Group Members Ms. Michiko Arikawa, Matsushita Electric Industrial (Panasonic) Mr. Stephen Frost, Southeast Asia Research Centre Ms. Kyoko Sakuma, Sustainability Analysis & Consulting Mr. Sean Ansett, Gap Inc. Ms. Deborah Evans, Lloyds Register of Quality Assurance (LRQA) Mr. Pierre Mazeau, Electricit de France (EDF) Mr. Dan Viederman, Verit
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Economic Advisory Group Members Ms. Christine Jasch, Institute for Environmental Management and Economics (IOEW) Mr. Martin Tanner, Novartis International AG Ms. Helen Campbell, formerly AccountAbility Mr. Eric Israel, KPMG LLP Ms. Martina Japy, BMJ CoreRatings Ms. Michelle Smith, Rohm and Haas Ms. Lisa Acree, Business for Social Responsibility Mr. Johan Verburg, NOVIB/Oxfam Netherlands Reporting as a Process Working Group (RPWG) Members The Reporting as a Process Working Group was tasked with updating and further developing the Reporting Principles, and other guidance on the process of applying the G3 Guidelines. Ms. Amy Anderson, Starbucks Coffee Mr. Pankaj Bhatia, World Resources Institute (WRI) Mr. Bill Boyle, BP Dr. Uwe Brekau, Bayer AG Ms. Debra Hall, Coalition for Environmentally Responsible Economies (CERES) Mr. Dunstan Hope, Business for Social Responsibility Dr. Aqueel Khan, Association for Stimulating Know How (ASK) Ms. Judy Kuszewski, SustainAbility Ltd Mr. Brian Kohler, Communications, Energy & Paperworkers Union of Canada Mr. Ken Larson, Hewlett Packard Mr. Steve Lippman, Trillium Invest Mr. Luis Perera, PricewaterhouseCoopers Mr. Dante Pesce, Vincular, Pontificia Universidad Catlica de Valparaso Ms. Mizue Unno, So-Tech Consulting Inc. Mr. Cornis van der Lugt, UNEP Division of Technology, Industry, and Economics (DTIE) Mr. Robert Walker, The Ethical Funds Company Mr. Ian Whitehouse, Manaaki Whenua Landcare Research Mr. Alan Willis, Alan Willis & Associates Although not a member of the group, Jennifer Iansen-Rogers, KPMG, The Netherlands, provided ongoing advice on process matters
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Annex 3
Summary of main GRI projects on sustainability reporting for Small and Medium-Sized Enterprises in 2007
The UN estimates small and medium-sized enterprises (SMEs) make up more than 90 percent of businesses worldwide and typically account for 50 percent of GDP and for 60 percent of employment. SMEs collectively have enormous sustainability impacts, but at the same time have less human, technical and financial resources to individually measure and manage them compared to large multinational companies (MNEs). Over the last three years, GRI has actively explored the different drivers for SMEs to take up sustainability reporting and has tried to get a better understanding of the resources they need. Currently, SME reporting is in its pioneering phase, but the interest globally of SMEs in sustainability reporting is clearly increasing. The SME sector is widely predicted to be the biggest growth area in sustainability reporting in the coming years. During 2007 we received over 80 SME reports coming from GRI-related projects alone.1 We are sure that this number would be much larger if we could count all GRI reports prepared by SMEs around the world. From the projects GRI has been involved with, it is possible to identify three main drivers for SMEs to start up a reporting process. Access to Capital and Markets: Competitive Advantage Reporting can help provide SMEs with a competitive advantage and a platform to best present their company in the global market-place. One of the results of reporting for SMEs is the fact that communicating sustainability performance results in transparent and strong relationships with banks and other credit providers. Reporting helps improve access to capital markets. GRI is collaborating with the World Resources Institutes (WRI)2 project New Ventures3 that supports sustainable SMEs by accelerating the transfer of capital to outstanding companies that incorporate social and environmental benefits. GRI has advised WRI in implementing a sustainability reporting project to better understand the social and environmental impacts of 11 selected companies from their global portfolio. The project resulted in 11 sustainability reports from Brazil, India, Indonesia, China and Mexico which enabled the SMEs to improve their operations and use resources more efficiently. They also used their reports as a communication tool to attract new investors and customers. There is also a growing interest among institutional investors on how to better understand the economic, social and environmental impacts of SMEs in emerging economies. Being Part of the Global Supply Chain The second and most important driver for SMEs to get involved with sustainability reporting is supply chain requirements from multinational companies, especially in export sectors where ethical trade initiatives were pioneered. There is increasing recognition that sustainable supply chain management is the shared responsibility of all entities within the chain and therefore SME suppliers are more often involved in responsible sourcing initiatives. GRI is currently involved in the Transparency in the Supply Chain project,4 together with the German organization GTZ.5 GRI is working with four European MNEs experienced in reporting and with three suppliers of each in China, Turkey, Thailand, Chile, South Africa, and India. Eleven
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suppliers have gone through a training process by regional consultants and all produced their first report in 2007. GRI has learned that the first driver to start up reporting might be a request from a foreign MNE, but that once the SMEs start measuring sustainability performance, they use it as a catalyst for change within their organizations. Some suppliers also see the reporting practice as a way to improve the image and reputation of a sector in a region and actively engage with other companies of their sector to take up reporting. GRI is exploring the possibilities of scaling up this supply chain reporting initiative to cover more SME suppliers and MNE buyers in the coming years. Acting as a Cluster (group of SMEs) SMEs also start up reporting in a collaborative approach either to report as a group or to receive training as a group of SMEs of the same sector and location. SMEs often have a hard time capturing market opportunities which require large production quantities, homogenous standards, and regular supply. It is even more difficult for SMEs in emerging economies to access the necessary financial, technical and human resources to improve their social and environmental responsibility practices. One of the most successful policy approaches for SME development has leveraged on the benefits of clustering since there is a significant potential for small enterprises to achieve economies of scale and scope through cooperation at the local level. GRI has collaborated with Vincular6 of the Catholic University of Valparaso in Chile to provide an SME with cluster access to the necessary technical, human and financial resources to start sustainability reporting as a network. The aggregated cluster report created transparency about the environmental, social and economic performance of the SMEs as a group, without prohibitively burdening individual organizations. This CSR communication has been useful for overseas customers and business partners who want to assess whether their suppliers are sustainable. It therefore enhanced the competitiveness of the SMEs of the cluster as sustainable SMEs when they engaged in the global market. Another way of promoting sustainability reporting among SMEs is through collective approaches with business associations. Forty Catalan Cooperative Enterprises (Co-ops) have partnered with GRI and the Confederacin de Cooperatives de Catalunya (CCC)7 to strengthen their sustainability reporting and improve their sustainability performance. This project has resulted in the publication of a special edition of the SME Handbook for cooperatives and entities of the social economy together with Confederacin Empresarial Espaola de la Economa Social (CEPES)8 and the Confederacin de Cooperativas de Euskadi (CCE).9 Ten thousand copies of this handbook have been distributed among Spanish coops and entities of the social economy in 2007. Readers can check the list of current identified SMEs reporting following the GRI G3 Guidelines on page 58.
http://www.globalreporting.org/CurrentPriorities/SmallerEnterprises/SmeReports.htm. http://www.wri.org/. http://www.new-ventures.org/. 4 http://www.globalreporting.org/CurrentPriorities/SupplyChain/About+GRIGTZ+project/. 5 http://www.gtz.de/en/. 6 http://www.vincular.org/index/index.php. 7 http://www.cooperativescatalunya.coop/. 8 http://www.cepes.es/. 9 http://www.konfekoop.coop/.

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Annex 4
List of SMEs reporting according to the GRI Guidelines known to the GRI Secretariat
Country Brazil Name of Company CBPAK Tecnologia Florestas Hering Madeiras e Instrumentos Musicais da Amaznia Chile Abufrut Agrcola Maitahue Agrcola Santa Laura del Alto/Olmedo Corporacin Chilena del Vino Envases Orlandini Hacienda Chada Grupo Agrcola El Parrn Ilam Interplus La Masa NewPost Sinstel Valle del Maipo Chilean Fruit, Aggregated Report Via Huelqun Via Prez Cruz China Landwasher Minyiyuan Shunde Hengfa Knitting Garment Company India Varroc Engineering Plant VII Victor Gaskets Indonesia Beneng Big Tree Farm Intaran Indonesia Manungal Aswinabawa Sejahtera
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Mexico
AliBio Alltournative SA de CV
Peru
Alianza Metalurgica Empresa Petrolera Unipetro Abc Fabrica Nacional de Acumuladores Etna Farmex Manufacturera de Papeles y Cartones del Per Mirni Sacos del Sur Ticay TSnet Vitrios
South Africa
Impahla Vimal Clothing
Spain
Aprop: Serveis Comunitaris, Sccl Abacus, Sccl Ar, Sccl Bassegoda, Sccl Cel Obert Celler De Capanes I Sc, Sccrl Clade-Grup Empresarial Cooperatiu ColLectiu Ronda, Sccl Consop, Sccl Consum, Scv Coop. Del Camp Divars Durgell I Secci De Crdit Cooperativa 70, Sccl Cooperativa Darquitectes Jordi Capell Coselva, Sccl Cristalerias De Matar, Sccl Ctf Serveis Sociosanitaris, Sccl Cultura O3, Sccl Educadors Dacolliment Social, Sccl
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GRI Sustainability Reporting: How valuable is the journey? GRI Sustainability Reporting: How valuable is the journey?
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Eduvic, Sccl Entorn, Sccl Escaler, Sccl Escola Ginebr, Sccl Farmacia Chamorro-Galisteo CB Farmacia de la Licenciada Blanca Reina Chacn Farmacia de la Licenciada Isabel Vallejo Daz Farmacia de la Licenciada M Angeles Seminario Echeverra Farmacia de la Licenciada M Dolores Espinosa Silva Farmacia del Licenciado Angel Perez Prez Farmacia del Licenciado Fernando Redondo Montoro Farmacia del Licenciado Jos Luis Marquez Arroyo Farmacia del Licenciado Jos Mara del Campo Daz Farmacia del Licenciado Leopoldo Luis Romero Muoz Gran Farmacia Vives-Climent CB Farmacia Zarzuelo Gabinets Destudis Socials, Sccl Gedi Gesti I Disseny, Sccl Grup Qualitat, Sccl Habitatge Social De Lusoc, Sccl La Vola Companyia De Serveis Ambientals, Sal LApstrof, Sccl Lloc Nou, Sccl LOlivera, Sccl Musicom, Sccl Mtua De Pa I Queviures, Sccl Sepra, Servei Prevenci Integral, Sccl Sersa, Sccl Sistemes Avanats Denergia Solar Trmica, Sccl Taller Escola De Barcelona, Sccl Teknokroma, Sccl Uni Agrria Cooperativa, Sccl Thailand Turkey Art on Stitch Co. Topkapi Iplik
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Production Printing process: Printed using an Ecocolor press (100 percent Isopropyl Alcohol-free printing) and vegetable-oil based inks. Pre-press using computer-toplate technology. The complete production process is Grafimedia Milieuzorg certified and powered by renewable energy. Cover paper: Freelife Merida (40% post-consumer FSC fibre, 55% FSC pulp and 5% cotton fibre, EU Eco-label Flower, ISO 9001).
Page paper:
Dalum Cyclus Print (based on 100% recycled fibres according to the RAL UZ-14 - Blue Angel, Nordic Swan certified, NAPM approved, EU Eco-label Flower, EMAS, ISO 9001 and ISO 14001).
Legal liability While the GRI Board of Directors do encourage use of the Learning Series publications by all organizations, the preparation and publication of reports is the full responsibility of those producing them. Neither the GRI Board of Directors, Stichting Global Reporting Initiative, nor the project funders, can assume responsibility for any consequences or damages resulting directly or indirectly from the use of the GRI Learning and Services publications in the preparation of reports or the use of resulting reports. Copyright and Trademark Notice This document is copyright-protected by Stichting Global Reporting Initiative (GRI). Neither this document nor any extract from it may be reproduced, stored, translated, or transferred in any form or by any means (electronic, mechanical, photocopied, recorded, or otherwise) for any purpose without prior written permission from GRI. Global Reporting Initiative, the Global Reporting Initiative logo, Sustainability Reporting Guidelines, and GRI are trademarks of the Global Reporting Initiative.
2011 GRI ISBN number 978-90-8866-013-9
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International Sponsor:
Global Reporting Initiative PO Box 10039 1001 EA Amsterdam The Netherlands Tel: +31 (0) 20 531 00 00 Fax: +31 (0) 20 531 00 31 2011 Global Reporting Initiative. All rights reserved. Further information on the GRI and the Sustainability Reporting Guidelines may be obtained from: www.globalreporting.org info@globalreporting.org GRI is a Collaboration Centre of the United Nations Environment Programme.

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GRI Learning Series

GRI Sustainability Reporting:

GRI Learning Series

GRI Learning Series

Ernst Ligteringen and Nelmara Arbex

GRI Sustainability Reporting: How valuable is the journey?

GRI Learning Series

GRI Sustainability Reporting: How valuable is the journey?

GRI Learning Series

GRI Sustainability Reporting: How valuable is the journey?

GRI Learning Series

organizations embark on a sustainability reporting process?

Why do organizations embark on a

a. To show commitment and to be transparent

GRI Learning Series

sustainability reporting process?

Who Wants to Know What?

Regulators Employees NGOs

b. To demonstrate the ability to participate in competitive markets

GRI Sustainability Reporting: How valuable is the journey?

c. To plan activities, become more sustainable and position the company

d. To comply with regulations

GRI Learning Series

GRI Sustainability Reporting: How valuable is the journey?

GRI Learning Series

consider before implementing GRI sustainability reporting

Points to consider before implemen

This section tries to offer some answers to these questions.

a. What exactly is the GRI sustainability reporting process?

GRI Learning Series

ting GRI sustainability reporting

GRI Sustainability Reporting: How valuable is the journey?

GRI Learning Series

To find out more:

GRI Sustainability Reporting: How valuable is the journey?

c. Do you need an expert?

GRI Learning Series

Report Application Level

GRI Profile Disclosures

Report Externally Assured

Report Externally Assured

Management Approach Disclosures for each Indicator Category

Management Approach Disclosures for each Indicator Category

Report Externally Assured

GRI Performance Indicators & Sector Supplement Performance Indicators

GRI Sustainability Reporting: How valuable is the journey?

GRI Learning Series

GRI Sustainability Reporting: How valuable is the journey?

GRI Learning Series

uncovered during the reporting process

The value uncovered during the re

A. The Value Of Internal Changes

a. Develop vision and strategy

GRI Learning Series

b. Improve management systems, improve internal processes and set goals

GRI Sustainability Reporting: How valuable is the journey?

GRI Learning Series

c. Identify weaknesses and strengths

GRI Sustainability Reporting: How valuable is the journey?

d. Attract and retain employees

GRI Learning Series

GRI Sustainability Reporting: How valuable is the journey?

e. Connect departments and encourage innovation