Global Reporting Initiative

1. Global Reporting Initiative Judy HENDERSON • Chair, • Global Reporting Initiative • Australia

2. AN INTRODUCTION TO THE GLOBAL REPORTING INITIATIVE Dr Judy Henderson Chair Global Reporting Initiative

3. THE GLOBAL CONTEXT • Accounting failures have taken accountability from a business to a social issue: Enron, Xerox, WorldCom • Loss of public confidence in corporate governance • Global markets mean global accountability which needs global standards • New corporate value drivers need new measurement tools and information

4. 0 1990 1995 2000 Year REPORTING ON THE RISE Sustainability Number of Reports Environmental And EHS www.globalreporting.org 4

5. BASIC PROBLEMS …AND OPPORTUNITY Companies receive diverse information requests Stakeholders receive incomplete information A globally-accepted reporting framework developed through a multi-stakeholder process www.globalreporting.org 5

6. TRANSPARENCY: not OPTIONAL… ESSENTIAL Pressure from... Investors Companies Governments Community Customers Rating groups www.globalreporting.org

7. GRI MISSION Elevate corporate sustainability reporting to be as routine as financial reporting Developing protocols and assurance guidance Design and continually improve reporting guidelines reflecting the three dimensions of sustainability: economic, environmental, and social Revised 2002 Guidelines issued Build a global and independent institution to become steward of the Guidelines Incorporated as Foundation in Netherlands with new Board

8. GRI: A BRIEF HISTORY • Conceived in 1997 by CERES in partnership with UNEP • Multi-stakeholder process rooted in principles of balance, transparency, independence • Funded by foundations through 2002, now diversifying • Moved from Boston to Amsterdam in Sept. 2002 • Governed by multi-stakeholder Board, Stakeholder Council and Technical Advisory Council

9. GRI’S PORTFOLIO The Guidelines foundation document upon which all other GRI documents are based Technical protocols address a specific set of indicators, providing technical guidance on their measurement The Guidelines Energy Water Child labour Sector supplements additional guidance for specific sectors, addressing issues pertinent to those industries Issue supplements issue-specific supplements to provide additional models for organising the information Automotive Financial Tourism Mining Diversity Productivity HIV/AIDS

10. REPORTING ELEMENTS COMPANY SECTOR social economic CORE environmental www.globalreporting.org 27 May, 2002

11. WHAT IS A GRI REPORT? Vision and Strategy Description of the reporting organisation’s strategy with regard to sustainability, with text discussion and a statement from the CEO Profile Overview of the reporting organisation’s structure, policies and management systems, including stakeholder engagement efforts Governance structure and management systems Description of organisational structure, policies and management systems including stakeholder engagement efforts GRI content index A table supplied by the reporting organisation identifying where the information listed in the Guidelines is located within the report Performance indicators Measures of the impact or effect of the reporting organisation divided into economic, environmental and social

12. Transparency Inclusiveness Sustainability context Completeness Relevance Neutrality Comparability Accuracy Clarity Timeliness Auditability SUSTAINABILITY REPORTING PRINCIPLES

13. GRI & COMPLEMENTARY INITIATIVES Management Systems Standards Codes of Conduct GRI seeks to harmonise and integrate Intangibles Accounting Performance Standards GRI GRI as a core platform for sustainability reporting Issue/ Sector/Nat’l Reporting Guidelines International Conventions Assurance Standards www.globalreporting.org 13

14. WHY COMPANIES USE THE GUIDELINES • Benchmark and enhance efficiency • Internal management improvements • Stakeholder consultation • Attract employees and investors • Manage risk and protect reputation

15. EXPOSURE AT WSSD IN JOHANNESBURG • Launch of 2002 Guidelines • GRI reference in official documentation • GRI reference by heads of government and UN Secretary-General • GRI recognised mechanism for demonstrating adherence to Global Compact

16. 2002 GUIDELINES—WHAT’S NEW? • Reformulated reporting principles • Strengthened social and economic content • “Core” versus “additional indicators” • Clarity on flexibility • Guidance on assurance

17. BALANCING FLEXIBILITY & COMPARABILITY IN ACCORDANCE Transparency Structure Incremental Reporting INFORMAL Coverage www.globalreporting.org

18. “IN ACCORDANCE” REQUIREMENTS • Report on vision, profile of organisation and governance and management systems • Include a GRI Content Index. • Report on the core performance indicators. Omission of each core indicator must be explained • Ensure that the report is consistent with the reporting principles • Include a statement by the Board or CEO as follows: “This report has been prepared in accordance with the 2002 GRI Guidelines. We believe that this report is a balanced and reasonable representation of our organisation’s sustainability performance.”

19. VERIFICATION & ASSURANCE • Key to strengthening credibility • 2002 Guidelines encourage the independent assurance of reports and the development of standards and guidelines for the assurance process

20. CHALLENGES AHEAD • Strengthening/explaining linkages to financial reporting and financial industry • Strengthening harmonisation with key complements, e.g., ISO, EC CSR, AA1000S • Rolling out supplements and protocols • Expanding engagement: SMEs, sectors, regions, • Harmonisation with government initiatives www.globalreporting.org

21. GLOBAL REPORTING INITIATIVE "Another important development is the growing support for the Global Reporting Initiative, which offers a coherent framework for reporting on environmental and social issues. It is a crucial complement to the Global Compact, and I am very pleased that the United Nations Environment Programme is a driving force behind both of them."Kofi Annan UN Secretary General1 September 2002 www.globalreporting.org