The Global Reporting Initiatives G 3 Sustainability Reporting

The Global Reporting Initiative’s G 3 Sustainability Reporting Guidelines By Bill Blackburn January 30, 2007 ISO 26000 Meeting Sydney, Australia William Blackburn Consulting, Ltd. Web: www. WBlackburn. Consulting. com Email: WRB@WBlackburn. Consulting. com Phone: 847. 530. 4014 © Copyright 2007: William R. Blackburn & GRI

Why GRI Matters n Growth of company sustainability reporting (KPMG, Jan. 2005) - 2/3 of Global Fortune 250 - Up 42% from 2002 -Investor, UK, France, S. Africa initiatives

GRI Reporters Uptake Over Time Year

Uptake by Country

GRI: Network Organization

GRI: Trusted, Credible Framework

Why GRI Matters n Growth of company sustainability reporting (KPMG, Jan. 2005) - 2/3 of Global Fortune 250 - Up 42% from 2002 -Investor, UK, France, S. Africa initiatives n GRI is best global consensus on reporting - Global multi-stakeholder initiative - 40% of Global Fortune 250 use GRI - 900+ GRI reporters

Continuous Improvement

Evolving Guidelines: the G 3 Process Structured feedback process on 2002 guidelines 2003 Collaborative working groups 2004 International sneak peeks 2005 G 3 Guidelines released Future development 2006

G 3 Objectives Make Reports More: §Relevant §Comparable §Auditable §Performance focused Make G 3 -Guidelines: §More user-friendly §The common reporting framework §Universally applicable

G 3 Launch October 2006

The Reporting Framework Principles G 3 Standard Disclosures + Sector Supplements National Annexes

Introduction to the Guidelines INPUT • Content • Quality • Boundary A B C Focused Sustainability Report Standard Disclosures Principles and Guidance Options for Reporting

Principles and Guidance Helping to steer the course to materiality, focus, and balance.

Reporting Principles (with Tests) n Principles that help define report content n n n Materiality (significant impacts, substantially influence stakeholder decisions) Stakeholder inclusiveness Sustainability context Completeness Principles that help determine report quality n n n Balance Comparability Accuracy Timeliness Reliability Clarity

s ue ss l. I -- ia e iv at el R er at -M LO W on M ng al ri ti or at e ep R N ri P it y or su es Is Influence on Stakeholder Assessments and Decisions -- H IG H Materiality Significance of Economic, Environmental, and Social Impacts

Setting Report Boundary High Impact Low Influence --- Control

Profile: Strategy & Analysis

Standard Disclosures OUTPUT • Management Approach A B C • Performance Indicators Focused Sustainability Report Standard Disclosures • Profile

Disclosure on Management Approach

Disclosure on Management Approach n Report on each of the 6 indicator categories covering the 35 aspects that are material: n n Economic (3) Environmental (9) Social: labor and decent work (5), human rights (8), society (5), product responsibility (5) DMA content: n n n Goals and performance Policy Organizational responsibility Training and awareness Monitoring and follow-up Additional contextual info

Performance Indicators

Examples of the 3 Classification Levels of Indicators Category (6) -Economic -Environment -Social (4) Aspect (35) Indicator (79) -49 core -30 additional Environment Social: Labor Practices and Decent Work Water Occupational Health and Safety Total water withdrawal by source Injury, illness and lost-day rates, absenteeism, fatalities, by region

Indicator Protocols

Sector Supplements n n Development completed (but not final yet): automotive, telecom, metals & mining, tour operators, financial services, public agencies In development: logistics & transportation, energy utilities, apparel & footwear

Special Focus Groups Public Agencies NGO’s Small enterprises

G 3 Report Content n Strategy and analysis n Organizational profile n Governance, commitments & engagement n Discussion of management approach (DMA) n Performance indicators n n Core and additional indicators Sector supplements

Reporting Application Levels Rpt Content Application Level C Min 10 (1 each for econ, env, social) Rpt all items under sects 1 -4 Rpt for each category Min 20 (1 each for econ, env, HR, labor, soc’ty, prod resp) B+ A A+ Same as B Rpt on each core and sect. suppl indicator or explain Ex t. A s s u r a n c e Indicators Not req’d B Ex t. A s s u r a n c e DMA Ex t. A s s u r a n c e Rpt on all but 12 Profile, items under sects Governance 1 -4 C+

In Support

Learning

Report Services

User Friendly Contact Points

GRI and Sustainability. Reporting —Likely Directions Ahead n n Legally mandated “integrated reporting” Growth of GRI; support by corporate customers, investors, NGOs n Collaboration with other SR organizations n Standardization n Uptake by SMEs n Electronic reporting

You can take this further n n n Use the Guidelines. Let us know. Become an OS member Sign up to our newsletter Visit us online at www. globalreporting. org

William R. Blackburn William Blackburn Consulting, Ltd. Web: www. WBlackburn. Consulting. com Email: WRB@WBlackburn. Consulting. com Phone: 847. 530. 4014