communication on progress

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Communication on Progress

“Public transparency and accountability are the cornerstones of the Global Compact”

– Georg Kell

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COPs Submitted, by Join Year

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Current COP status by Year of Joining

35

70 142176

369

5

3956

69

319

1

88212

168

50

0%

20%

40%

60%

80%

100%

2000 2001 2002 2003 2004*

Year of Joining

Inactive

Non-communicating

Active

Current Participant Status

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Current SME COP status by Year of Joining

528

33 76

6 1334

275

11 51 84

27

0%

20%

40%

60%

80%

100%

2001 2002 2003 2004*

Year of Joining

Inactive

Non-commuicating

Active

Current SME Status

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The COP in context

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Sustainable reporting trends

Learning curveAnecdotal (little data) EMS/ISO 14001 Triple bottom line e.g. GRIIntegrated reports

http://www.sustreport.org/business/report/trends.html

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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 fieldTo build and maintain relationships (solicit feedback) with external partiesTo better manage and communicate risk To enhance or protect their reputation To grow shareholder and brand value To increase market share

http://www.aicpa.org/innovation/baas/environ/faq.htm

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DIRECTIVE 2003/51/EC OF THE EUROPEAN PARLIAMENTAND 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.

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Obstacles

Company liquidation/bankruptcy

Scarce resources

Lack of understanding of CSR or reporting

Change in leadership (not internalized in the company culture)

Free-riders

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Methods?

GRI's Sustainability Reporting Guidelines The International Organization for Standardization (ISO) 14001 for environmental management systems and ISO 14031 for environmental performance evaluationThe Coalition for Environmentally Responsible Economies (CERES) Principles. AA1000SAIHomegrown Methods

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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

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How can reporting act as a scaling agent for:

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Reporting is part of Process…

Therefore failures to report are failures in process

Three places to look for process improvementsCompaniesGCOLocal Networks

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Companies

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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

Statusassessment

Set goals

Act

Planstrategy

Plan

Implement

Do

Checkprogress

Check

enab

lers

Performance enablersBusiness strength is based on elements that, together, are necessary and sufficient to ensure excellence in every objective the business chooses to pursue.

Competitive advantagebalance 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

PoliciesStrategy

Leadership

Empowerment

Vision

resu

lts

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 onvaluechain

Impact onpeople Impact

on society

Not the only model…

Resources

Processes&

Innovation

PoliciesStrategy

Leadership

Empowerment

Impact onvaluechain

Impact onpeople Impact

on society

Reporting

Vision

What are the financial benefits ofour sustainability performance?

goals Measures

Financial Perspective

What CSR activities add value to the organisation?

Business processes

goals Measures

How do stimulate and sustain innovation and

continuous improvement?

Organisational learning

goals Measures

How will we satisfy our customers and stakeholders

needs?

Stakeholder perspective

goals Measures

Source:KPMG 2002adaptation from Kaplan/NortonBalanced 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

ProgressCommunicatio

n on

Progress

awareness

model

in place

innovation

deep

integration

clueless

stage of integrating

resu

lts

continuousimprovement

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GCO

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2006

Inactives

FAQs

Process Improvements

Due Diligence

Progress and Value Workshops

Introduce Notable Criteria

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2007

Process ImprovementsCOP Review ProjectQuality FeedbackScale P and V workshopNetwork Work Plan Best Practices Guidance improvementsRefine Notable CriteriaIAT Training

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Guidance Documents

Coming soon: SME Guide,

The Value of Communicating Progress, and

Networks GuideRevision process

underway

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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.

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Networks

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What Networks are doing

COP workshopsTranslationsTemplates and ToolsConnecting to the local CSR community and leveraging existing and emerging incentive structuresLocal / Direct Support and Encouragement

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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.

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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.

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The COP

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What does a COP achieve?

Ensure and deepen the commitment of Global Compact participantsSafeguard the integrity of the initiativeCreate a rich repository of corporate practices that

serves as a basis for continuous performance improvement.

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COP Policy -timeframe

Company joins Global Compact

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COP submittedwithin 2 years of join date

Next COP due in 1 year



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COP not submittedwithin 2 years of join date.Company listed as non-communicating





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COP submittedN/C flag removed


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COP submitted N/C flag removed


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Company inactive (de- listed)1 year after classifiedas Non Communicating



COP submittedN/C flag removed

COP Policy -Timeframe

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COP submittedcompany re-instated





COP submitted N/C flag removed


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COP submittedcompany re-instated





COP submittedcompany listed as active


Grace Period

A 45 day grace period will be granted to companies that contact the Global

Contact Office and request an extension.

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What active, inactive & non-communicating actually means

Listed on website as active

Invited to GC events

Can use GC logo

Active

Non-communicating

Inactive

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What do I need to do to fulfill the COP requirement?

Step 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.

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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.

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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.

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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.

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Hints and Tips

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Choose your Language

A company’s COP should be created in the language which is most appropriate for the company’s stakeholders.

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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.

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Don’t start from scratch

Your company is likely already doing things in relationship to the ten principles.

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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”).

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Include Local Action/Indicators

The headquarters of multinational companies may report for their participating subsidiaries - however this reporting must cover local action and indicators.

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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.

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Contact Details - COP Manager

communication on progress

Documents

sustainability reports

progress transparency

particular business

progresspublic transparency

standardization iso

human rights

brand value

public accountability