November 30 2020 Sustainability Reporting By November 30
November 30, 2020 Sustainability Reporting By
November 30, 2020 Why report on Sustainability? Increasing pressure on Corporates for Greater responsibility towards the society and the environment Greater transparency in reporting financials and non-financials Sustainable performance in economical, social, environmental and governance aspects
November 30, 2020 Why report on Sustainability? Establishing a sustainability reporting process would Help in setting goals Measure performance Manage change Communicate the positive impact made by organization Develop a sustainable global economy Improve Economic, Social and Governance Performance
November 30, 2020 Guidelines on reporting sustainability The guidelines for reporting sustainability are set by Global Reporting Initiative (GRI) Global Reporting Initiative (GRI) is a non-profit organization that promotes economic, environmental and social sustainability The Guidelines are updated regularly by GRI The current guideline is G 3. 1 – a third generation of GRI’s sustainability guidelines G 4 - the fourth generation of guidelines is under development and to be released in May, 2013
November 30, 2020 Guidelines on reporting sustainability G 3 sustainable Performance Indicators are organized as Economic Environmental Social
November 30, 2020 Global Reporting Initiative GRI is a multi-stakeholder, network-based organization Strategic partnerships with United Nations Environment Programme the UN Global Compact the Organisation for Economic Co-operation and Development International Organization for Standardization The development of guideline follows GRI’s due process Setting priorities for revision of the Guidelines Developing proposals for revision Public comment period Approval by the governance bodies
November 30, 2020 Principle for Responsible Investment The Principles of Responsible Investment (PRI) is a reporting framework for investment managers It takes environmental, social and corporate governance (ESG) issues into account within the investment process The framework has three goals to improve the accountability of the PRI enable investors to report their approach to responsible investment in a transparent and globally-comparable way and to assess the progress of signatories towards implementing the Principles of PRI
November 30, 2020 Sustainability reporting in India On July 2011, the Ministry of Corporate Affairs launched National Voluntary Guidelines SEBI has mandated from Nov 2011 that the 100 top listed entities must submit Business Responsibility Reports As per SEBI’s requirement under clause 49 of the listing agreement all public equities are required to comply with disclosure norms related to corporate governance
November 30, 2020 Principles of NVG The national voluntary guidelines consist of 9 core principles, namely: Principle 1: Businesses should conduct and govern themselves with Ethics, Transparency and Accountability Principle 2: Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle Principle 3: Businesses should promote the well-being of all employees Principle 4: Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalized Principle 5: Businesses should respect and promote human rights Principle 6: Business should respect, protect, and make efforts to restore the environment Principle 7: Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner Principle 8: Businesses should support inclusive growth and equitable development Principle 9: Businesses should engage with and provide value to their customers and consumers in a responsible manner
November 30, 2020 Problems in reporting Sustainability Limited tools to report on Sustainability parameters Challenge in finding the right data and assess its credibility Tough for companies to prioritize environment management over business objectives Would you rather preserve the rainforest or maximize growth and profitability? Stockholders or Stakeholders? Easy to take decisions towards sustainability but practical application of those decisions is way difficult
November 30, 2020 Fairness in implementation Developed nations vs. Developing Nations Developed Nations Enjoyed a prolonged period of growth at the expense of environment Can afford a slow growth for increasing environment protection Have the capital, funds and technology to invest in sustainable development Developing Nations Have potential for growth and must grow to feed a larger population Face a political pressure from the population to maintain economic growth in-spite of exploitation of resources
November 30, 2020 Thank You
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