8/21/2015 Communication on Progress “Public transparency and accountability are the cornerstones of the Global Compact” – Georg Kell

8/21/2015 COPs Submitted, by Join Year

8/21/2015 Current Participant Status

8/21/2015 Current SME Status

8/21/2015 The COP in context

8/21/2015 Sustainable reporting trends Learning curve Anecdotal (little data) EMS/ISO Triple bottom line e.g. GRI Integrated reports

8/21/2015 Why are companies issuing sustainability reports? What is the value proposition for sustainability reporting? Companies are issuing sustainability reports for numerous reasons, including the following: To demonstrate their interest in To demonstrate their commitment to and efforts involving human rights, fair labor policies, health of the environment, their employees and the communities they serve To promote transparency as a means of leveling the playing field To build and maintain relationships (solicit feedback) with external parties To better manage and communicate risk To enhance or protect their reputation To grow shareholder and brand value To increase market share

8/21/2015 DIRECTIVE 2003/51/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 18 June 2003 The review shall be a balanced and comprehensive analysis of the development and performance of the business and of the position of the undertakings included in the consolidation taken as a whole, consistent with the size and complexity of the business. To the extent necessary for an understanding of such development, performance or position, the analysis shall include both financial and, where appropriate, non- financial key performance indicators relevant to the particular business, including information relating to environmental and employee matters.

8/21/2015 Obstacles Company liquidation/bankruptcy Scarce resources Lack of understanding of CSR or reporting Change in leadership (not internalized in the company culture) Free-riders

8/21/2015 Methods? GRI's Sustainability Reporting Guidelines The International Organization for Standardization (ISO) for environmental management systems and ISO for environmental performance evaluation The Coalition for Environmentally Responsible Economies (CERES) Principles. AA1000 SAI Homegrown Methods

8/21/2015 What are we after? “We thrive and survive on planet earth as a single human family. As Benjamin Franklin said at the signing of the Declaration of Independence, "We must all hang together, or assuredly we shall all hang separately." His words still resonate. In an age of globalization, our interdependence deepens with every passing day. And one of our main responsibilities is to leave to successor generations a sustainable future.”

Innovation: the operating mode of CSR, driving progress Transparency and Public Accountability helps ensures the transition towards... The development of an economy that works for all, now and in the future, within the limits of the planet

8/21/2015 How can reporting act as a scaling agent for:

8/21/2015 Reporting is part of Process… Therefore failures to report are failures in process Three places to look for process improvements  Companies  GCO  Local Networks

8/21/2015 Companies

8/21/2015 Reporting is part of a cycle of improvement Act on the top opportunities by setting specific performance objectives Plan the resources and steps to achieve the objectives Do what is planned to reach the objectives Check the results achieved against objectives and plans Act to correct deviations, integrate learning from doing and setobjectives for further improve-ments Status assessment Set goals Act Plan strategy Plan Implement Do Check progress Check

enablers Performance enablers Business strength is based on elements that, together, are necessary and sufficient to ensure excellence in every objective the business chooses to pursue. Competitive advantage balance and perfect integration, difficult to imitate because performance skills and tools vary with activity and the cultural environment where the business operates. However, elements are universal and independent of size and activity. Resources Processes Innovation Policies Strategy Leadership Empowerment Vision

results Holistic results Results include The core financial and direct operational output parameters. Impacts and benefits for society The perception by employees and key partners in the value chain. Reporting Impact on value chain Impact on people Impact on society

Not the only model… Resources Processes & Innovation Policies Strategy Leadership Empowerment Impact on value chain Impact on people Impact on society Reporting Vision What are the financial benefits of our sustainability performance? goalsMeasures Financial Perspective What CSR activities add value to the organisation? Business processes goalsMeasures How do stimulate and sustain innovation and continuous improvement? Organisational learning goalsMeasures How will we satisfy our customers and stakeholders needs? Stakeholder perspective goalsMeasures Source: KPMG 2002 adaptation from Kaplan/Norton Balanced Score Card

The path is the goal...the change escalator    anecdotal some results many positive results verified gains and positive trends best in class for years Why are we doing? How can we do better? Communication on Progress C o m m u n i c a t i o n o n P r o g r e s s  awareness  model in place  innovation  deep integration  clueless stage of integrating results  continuous improvement

8/21/2015 GCO

8/21/ Inactives FAQs Process Improvements Due Diligence Progress and Value Workshops Introduce Notable Criteria

8/21/ Process Improvements COP Review Project Quality Feedback Scale P and V workshop Network Work Plan Best Practices Guidance improvements Refine Notable Criteria IAT Training

8/21/2015 Guidance Documents Coming soon: SME Guide, The Value of Communicating Progress, and Networks Guide Revision process underway

8/21/2015 Next Steps Remove participants from the inactive list after one year of inactivity. Refine efforts to support Local Networks. Further develop the model that differentiates the leaders from the beginners. Promote the use of the COP contents by stakeholders. Strengthening of the GC’s relationship with CSR implementation schemes.

8/21/2015 Networks

8/21/2015 What Networks are doing COP workshops Translations Templates and Tools Connecting to the local CSR community and leveraging existing and emerging incentive structures Local / Direct Support and Encouragement

8/21/2015 Lessons from the field… Engage early. Once companies become non communicating they are likely to become Inactive. Make the COP part of your networks work plan. Those networks with COP work plans have the highest rate of success. Manage expectations within your network. There will be a rate of attrition.

8/21/2015 What is a Communication on Progress? A COP is a communication to stakeholders on the progress the company has made in implementing the ten principles and forming partnerships in pursuit of wider UN goals.

8/21/2015 The COP

8/21/2015 What does a COP achieve? Ensure and deepen the commitment of Global Compact participants  Safeguard the integrity of the initiative  Create a rich repository of corporate practices that serves as a basis for continuous performance improvement.

8/21/2015 COP Policy -timeframe Company joins Global Compact

8/21/2015 COP submitted within 2 years of join date Next COP due in 1 year COP Policy -timeframe Company joins Global Compact

8/21/2015 COP submitted within 2 years of join date COP not submitted within 2 years of join date. Company listed as non- communicating Company joins Global Compact COP Policy -timeframe COP submitted within 2 years of join date Next COP due in 1 year

8/21/2015 COP submitted within 2 years of join date COP not submitted within 2 years of join date. Company listed as non- communicating Next COP due in 1 year Company joins Global Compact COP submitted N/C flag removed COP Policy -timeframe

8/21/2015 COP submitted within 2 years of join date COP not submitted within 2 years of join date. Company listed as non- communicating Next COP due in 1 year Company joins Global Compact COP submitted N/C flag removed COP Policy -timeframe

8/21/2015 COP submitted within 2 years of join date COP not submitted within 2 years of join date. Company listed as non- communicating Company inactive (de- listed) 1 year after classified as Non Communicating Next COP due in 1 year Company joins Global Compact COP submitted N/C flag removed COP Policy -Timeframe

8/21/2015 COP submitted within 2 years of join date COP submitted company re-instated COP not submitted within 2 years of join date. Company listed as non- communicating Company inactive (de- listed) 1 year after classified as Non Communicating Next COP due in 1 year Company joins Global Compact COP submitted N/C flag removed COP Policy -Timeframe

8/21/2015 COP submitted within 2 years of join date COP submitted company re-instated COP not submitted within 2 years of join date. Company listed as non- communicating Company inactive (de- listed) 1 year after classified as Non Communicating Next COP due in 1 year Company joins Global Compact COP submitted N/C flag removed COP Policy -Timeframe

8/21/2015 COP submitted within 2 years of join date COP submitted company re-instated COP not submitted within 2 years of join date. Company listed as non- communicating Company inactive (de- listed) 1 year after classified as Non Communicating Next COP due in 1 year Company joins Global Compact COP submitted company listed as active COP Policy -Timeframe Grace Period A 45 day grace period will be granted to companies that contact the Global Contact Office and request an extension.

8/21/2015 What active, inactive & non- communicating actually means Listed on website as active Invited to GC events Can use GC logo Active Non-communicating  Inactive 

8/21/2015 What do I need to do to fulfill the COP requirement? Ste p 1) Create an annual Communication on Progress Step 2) Share the COP with the company’s stakeholders Step 3) Submit the COP to the Global Compact website.

8/21/2015 Step 1) Creating an annual Communication on Progress While there is no single structure for the creation of a COP, a COP must include:  Element 1: A statement of continuing support  Element 2: Description of practical actions: related commitments, policies, systems and activities.  Element 3: Measurement of outcomes: use of the GRI G3 Guidelines is recommended. Ideally, COPs should be integrated into a company’s existing communication with stakeholders, such as an annual financial or sustainability report. ***A COP is not a communication with the United Nations Global Compact Office.

8/21/2015 Step 2 ) Sharing the COP with the company’s stakeholders Companies should use those platforms and channels where their stakeholders would expect to find sustainability information (e.g. websites, direct mailings, employee alerts, open houses) to share their COP.

8/21/2015 Step 3) Submitting the COP to the Global Compact website In addition to sharing the COP with stakeholders, companies are expected to post an electronic version (and web link if available) of their COP on the Global Compact website.

8/21/2015 Hints and Tips

8/21/2015 Choose your Language A company’s COP should be created in the language which is most appropriate for the company’s stakeholders.

8/21/2015 Define the Scope There is no expectation that small companies will be able to provide as much depth and breadth in their COPs as multinational companies. There is no expectation that all ten principles will be covered in every COP, nor that all ten principles will be addressed to the same extent.

8/21/2015 Don’t start from scratch Your company is likely already doing things in relationship to the ten principles.

8/21/2015 Be Specific Don’t try to cover all ten principles with an overarching statement. Move away from generic statements (e.g., “we have a training program for suppliers”) to more specific descriptions (e.g., “we trained 50 suppliers on how to improve their spill response performance”).

8/21/2015 Include Local Action/Indicators The headquarters of multinational companies may report for their participating subsidiaries - however this reporting must cover local action and indicators.

8/21/2015 Structure your Report around the principles A COP needs to be structured in such as a way so that the report communicates clearly the progress in implementing the ten principles.

8/21/2015 Contact Details - COP Manager