Global Reporting Initiative (GRI) – Stakeholder Input Tom Day November 1, 2016

What is GRI? Global Reporting Initiative (GRI): An international organization promoting standardized, comprehensive sustainability reporting. The GRI framework provides organizations with methods to measure and report sustainability performance. A sustainability report is a report published by a company or organization about the economic, environmental, and social impacts caused by its everyday activities. A sustainability report also presents the organization's values and governance model, and demonstrates the link between its strategy and its commitment to a sustainable global economy. GRI is a leading organization in sustainability promoting the use of sustainability reporting as a way for organizations to become more sustainable and contribute to sustainable development. GRI's mission is to make sustainability reporting standard practice for all companies and organizations. The organization pioneered and developed a comprehensive sustainability reporting framework that is widely used around the world. GRI G4 Standards Launched in 2013 to replace G3 Standards. Relies on organization’s stakeholders to determine the most important topics. Can help guide strategic decisions and assessments.

USPS Annual Sustainability Report (ASR) Background 2008 – 2014 ASRs: Report narrative and GRI Index (G3) as two separate reports. 2015 ASR: Single integrated GRI G4 report featuring results of pilot stakeholder engagement program. 2016 ASR Vision: GRI G4 report featuring input from diverse group of stakeholders. Historically, the USPS ASR not written according to GRI guidelines. The GRI Index had always followed GRI G3 guidance and pursued GRI application level check. 2015 report process included piloting a small-scale stakeholder engagement process. 2015 report was a single integrated document following GRI G4 guidelines 2016 vision: exploring economic, social, and environmental aspects of USPS operations with input from across USPS functional areas. GRI G4 supports the Postal Service as a Sustainability Leader.

Stakeholder Engagement Process Stakeholders identify issues in collaborative via survey. 2016 ASR Stakeholders Executive Leadership Team Mailers' Technical Advisory Committee HQ Functional Groups In 2015, USPS embarked on a pilot program and solicited opinions from a small stakeholder group comprised of personnel from Office of Sustainability and USPS Communications.. This year, the group has expanded to include representatives from across USPS functional areas, leadership, customers. The big plus to the GRI reporting protocol is that we have a chance to hear from our stakeholders – such as you (MTAC) – and others -  about what issues they find important. This makes a better, more well-rounded and transparent report.  

USPS Stakeholders Determine Aspects and Materiality Stakeholders identify the organization’s top issues (“aspects”) via the following steps: Step 1: Consider Issue Category Social, Environmental, or Economic. Step 2: Identify Issue Examples: Labor Practices, Climate Change, Financial Responsibility. Step 3: Rank Issues by Importance Most important (“material”) aspects included in the ASR. Note that GRI term for issues is Aspects.

Results: Materiality Matrix 1 Data Security 2 Customer Satisfaction 3 Employee Health, Safety and Wellness 4 Economic Impact and Access 5 Delivery Operations 6 Surface Vehicle Fleet Usage 7 Global Terrorism Impact on Mail Security 8 Business Preparedness, Resiliency and Disaster Response 9 Leverage Technology and Data to Drive Business Value 10 Workforce Diversity and Equal Opportunities 11 Overall Brand Image 12 Strategic Project and Service Innovation 13 Digital Communications 14 Network Efficiency 15 Transport of Restricted or Hazardous Goods 16 Road Safety and Transport Infrastructure 17 Aging Infrastructure 18 Government Regulation⁄Congressional Reform 19 Energy Usage 20 Climate Risks 21 Community Involvement 22 Employee Healthcare Costs 23 Employee Culture 24 Supplier Diversity 25 Talent Acquisition and Knowledge Retention 26 Labor Relations 27 Revenue Visibility 28 Waste Management and Recycling 29 Employee Engagement 30 Environmental Compliance 31 Sustainable Purchasing 32 Water Use and Impact 33 Contracted Aircraft Fuel Usage⁄Pollution 34 GHG Policy, Reporting and Climate Change 35 Controversial Stamps This figure is the 2015 Materiality Matrix based on stakeholder input. Material Aspects are indicated in orange in the upper right-hand corner, and discussions of these material aspects are included in the 2015 USPS ASR. Other, non-material aspects displayed in remaining quadrants.

MTAC Survey to Rank Aspects 2016 ASR Stakeholder Engagement Group identified 13 aspects. Next Step: Stakeholders rank aspects to determine materiality. Survey Instructions https://www.surveymonkey.com/r/MTACSustainability Rank aspects from the perspective of a Postal Service customer DEADLINE: November 15th The purpose of the MTAC survey is to supply a more in-depth view of the importance of sustainability performance to you as a customer. Please share your perspective as a Postal Service Customer by answering the survey questions, which concern your opinions about the importance of each aspect.

Next Steps Complete stakeholder engagement process for 2016. Consolidate stakeholder feedback to develop the 2016 Materiality Matrix. Develop the 2016 ASR based on GRI guidelines, significant material aspects, and other important information relevant to USPS. Anticipated ASR Publication Date: April 22, 2017.

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