tag:blogger.com,1999:blog-80087240494969035472024-03-13T04:59:04.663+02:00csr-reportingthoughts and insights about social and environmental responsibility and sustainability reportingelainehttp://www.blogger.com/profile/07433863039389159395noreply@blogger.comBlogger622125tag:blogger.com,1999:blog-8008724049496903547.post-40922651454662688072023-01-04T16:45:00.000+02:002023-01-04T16:45:41.135+02:0015 First Time Reports from 2022<div><p class="MsoNormal" style="text-align: justify;"><span lang="EN-US">You may have heard me mention that I love first time reports. A first report is always an
achievement, overcoming many new hurdles, organizationally and practically, to
source and disclose sustainability information. First reports need a level of
dedication, persistence, creativity and vision that enables everything to come
together in the best way it can. Some first reports are very slick; they adopt
the latest advanced reporting practice, the most widely used standards and
bring a fresh design approach. Others are more basic and an obvious (painful) first effort
at transparency. Either way, I have an extra helping of respect for first time
reporters. So, as 2022 draws to a close, and we expect regulation and market forces to drive more companies to report in 2023 and beyond, this post is about how first timers are faring, and if they have learned from 30+ years of reporting practice. <o:p></o:p></span></p><p class="MsoNormal" style="text-align: justify;">The post includes a list of 15 reports in alpha order, selected at random from reports I have come across from different sources. Ice cream cones denote my overall impression of clarity, credibility, transparency and appeal. More cones = more impressed. Maximum cones = 6. No report got 6 cones 😉</p><p class="MsoNormal" style="text-align: justify;">Before we start, a few overarching comments:</p><p class="MsoNormal" style="text-align: justify;">🔎Few reports include a number for annual revenues or turnover in these standalone sustainability reports. I always look for this to get a sense of company size and impact (in addition to the number of employees). I recommend inclusion of this stat.</p><p class="MsoNormal" style="text-align: justify;">🔎Many reports include tedious narrative about policy and approach and general descriptions of processes. <a href="http://csr-reporting.blogspot.com/2022/12/23-sustainability-reporting-insights.html" target="_blank">In my last post</a>, I referenced a Policy Bank - commuting this evergreen narrative to the web so that the annual sustainability report can focus on what was actually done in the reporting year. I recommend first time reporters consider this as part of their first reporting cycle. </p><p class="MsoNormal" style="text-align: justify;">🔎 Many first-time reporters are new to disclosure but not new to sustainable practice. Sometimes this is reflected well in the first report, sometimes the first report is more basic, containing evergreen policy content rather than descriptions of actual progress. Some first reports barely cross the threshold of what I would actually call a report. BUT. It's important to appreciate the amount of effort that any first disclosure requires - even though the report itself may be lightweight in terms of progress and data. It's important to encourage first time reporters by providing practical feedback they can use in their second reports. </p><p class="MsoNormal" style="text-align: justify;">🔎 The list of first reports published in 2022 that I wanted to share is way longer than these 15 that bubbled up to the surface from different sources. The selected reports are not necessarily representative of the full first timer landscape, but the variety presented below may provide insights for different companies at the early stages of their reporting experience. As a general rule, publishing a press release to announce the report publication helps it get on the radar. </p><p class="MsoNormal" style="text-align: justify;"><b><span style="color: red;">By the Numbers</span></b></p><p class="MsoNormal"></p><ul style="text-align: left;"><li><span lang="EN-US"><b><span style="color: red;">6</span></b>
countries, with 7 reports from the USA (most press releases!)</span></li><li><span lang="EN-US"><span style="color: red;"><b>10 </b></span>publicly
traded companies, 5 privately owned</span></li><li><span lang="EN-US"><b><span style="color: red;">6</span></b> reports
reference GRI including 2 In Accordance (Core Option) and 1 referencing GRI
2021</span></li><li><span lang="EN-US"><b><span style="color: red;">6</span></b> reports
use SASB</span></li><li><span lang="EN-US"><b><span style="color: red;">3</span></b> reports use
the TCFD Framework at some level</span></li><li><span lang="EN-US"><b><span style="color: red;">5</span></b> reports
have some level of assurance</span></li><li><span lang="EN-US"><b><span style="color: red;">12</span></b> pages is
the shortest report (two reports actually) while 123 pages is the longest. 8
reports are between 55-80 pages</span></li><li><span lang="EN-US"><b><span style="color: red;">6</span></b> reports
have ESG in the title</span></li><li><span style="text-align: left;"><b><span style="color: red;">8 </span></b>reports
have sustainability in the title</span> </li></ul><p></p>
<p class="MsoNormal" style="text-align: justify;"><b><span style="color: red;">Here is the summary of reports covered and their CSR Reporting Blog Cone Score: </span></b></p></div><div><ol><li><b>Cedar Fair Entertainment Company 🍦 </b></li><li><span style="text-align: start;"><b>Cimpress plc 🍦🍦🍦🍦</b></span></li><li><b>Corus Entertainment Inc. </b><b style="text-align: justify;">🍦🍦</b></li><li><b>EG Group </b><b style="text-align: justify;">🍦🍦</b><b style="text-align: justify;">🍦</b></li><li><b>Galaxy Digital Holdings </b><b>🍦🍦🍦🍦</b><b style="text-align: justify;">🍦</b></li><li><b>MAG Silver </b><b>🍦🍦🍦</b></li><li><b>Patrick Industries, Inc. </b><b style="text-align: justify;">🍦🍦</b></li><li><b>Phibro Animal Health Corporation </b><b>🍦</b><b>🍦</b><b>🍦</b></li><li><b>Primark Limited</b><b style="text-align: justify;">🍦🍦</b><b style="text-align: justify;">🍦</b><b style="text-align: justify;">🍦</b><b style="text-align: justify;">🍦</b></li><li><b>Pyxus International, Inc. Fiscal Year </b><b style="text-align: justify;">🍦🍦</b><b style="text-align: justify;">🍦</b><b style="text-align: justify;"> </b><b style="text-align: justify;">🍦</b></li><li><span style="text-align: start;"><b>Ranger Oil Corporation </b></span><b style="text-align: justify;">🍦🍦</b></li><li><span style="text-align: start;"><b>Selina </b></span><b style="text-align: justify;">🍦🍦</b><b style="text-align: justify;">🍦</b><b style="text-align: justify;">🍦</b></li><li><b>Vog Products </b><b style="text-align: justify;">🍦🍦</b><b style="text-align: justify;">🍦</b><b style="text-align: justify;">🍦</b></li><li><span style="text-align: start;"><b>Welch’s </b></span><b style="text-align: justify;">🍦</b></li><li><span style="text-align: left;"><b>Zentiva </b></span><b style="text-align: justify;">🍦</b><b style="text-align: justify;">🍦</b><b style="text-align: justify;">🍦</b></li></ol><p></p><p class="MsoNormal" style="text-align: center;"><span style="color: red;"><b>*****************</b></span></p><p class="MsoNormal" style="text-align: center;"><span style="color: red;"><b><br /></b></span></p></div><a href="https://s2.q4cdn.com/170666959/files/doc_presentations/2022/12/ESG-Strategy-Report-(Dec.-29-2022).pdf" target="_blank"><b>Cedar Fair Entertainment Company 2022 ESG Strategy Report</b><br /></a><b>Country: </b>USA <div><b>Entity: </b>Publicly traded (NYSE: FUN) </div><div><b>Sector: </b>Amusement-resort operator</div><div><b>Report:</b> 12 pages <br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj3H4Lo_DZUMDphKjR6w38-y4zq8TuhoEcsQIPiA-P9jmErGvrFURs10J0TlVv9h9Zh1kkaiKJinYKAFNIUl80fsy5ALbkLRumJjRORStzxugmeym6vcIsOJkzfa9QI2Xu3gaLz4EDL1uEgeW9pj_rF961ZrRZhsXITQgroaB_Gqgxfj9kV8aDlvQAK/s1329/CEDARFAIR%2022%20cover.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="859" data-original-width="1329" height="259" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj3H4Lo_DZUMDphKjR6w38-y4zq8TuhoEcsQIPiA-P9jmErGvrFURs10J0TlVv9h9Zh1kkaiKJinYKAFNIUl80fsy5ALbkLRumJjRORStzxugmeym6vcIsOJkzfa9QI2Xu3gaLz4EDL1uEgeW9pj_rF961ZrRZhsXITQgroaB_Gqgxfj9kV8aDlvQAK/w400-h259/CEDARFAIR%2022%20cover.png" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><br /></div><div style="text-align: left;"><b style="text-align: justify;">Cone-worthy 🍦 </b><b style="text-align: justify;"> </b></div><div style="text-align: justify;"># This is not an actual ESG report but the promise of a report. It's 12 pages of narrative about what the company plans to do, starting in 2023, and report on annually. But, it's something. And something is always better than nothing. Clearly considerable effort has gone into developing something.</div><div style="text-align: justify;"># Presents a five pillar ESG strategy. Each pillar is apparently supported by aspirational goals, strategies to achieve those goals, and the tactics needed to implement the strategies, but none of this is shared at this time. The "report" describes the actions Cedar Fair is planning to take in each of these pillars.</div><div><b style="text-align: justify;">Cone opportunities:</b></div><div style="text-align: justify;">#Time will tell whether Cedar Fair delivers on its ambitious promises. I have made a note in my Google calendar to check back in 2023 for the publication of Cedar Fair's first actual ESG report to see how they are doing. Since Cedar Fair states its purpose as "Make people happy", it will make me very happy to see a report that contains at least a few core data points.</div><div><span style="text-align: justify;"><br /></span></div><div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiakRkzxsCGGPrRasuEuUY03hLEzsJK_nP6NKZzx90Tg2rvXV2_rFxY2ucROJzqbok7fFgoiRiYtguK9cPbfVFXwfyaUhFcEKHHuGwrMmKj86dmEOEnQjeU6YpkdD8fIEUJtEUDEW1BLwVcuhU4XaTQWMiqOtAvNCDlogidJu-vHZYfutbmZsTc0xuF/s1206/CEDARFAIR%2022%20strategy.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="235" data-original-width="1206" height="78" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiakRkzxsCGGPrRasuEuUY03hLEzsJK_nP6NKZzx90Tg2rvXV2_rFxY2ucROJzqbok7fFgoiRiYtguK9cPbfVFXwfyaUhFcEKHHuGwrMmKj86dmEOEnQjeU6YpkdD8fIEUJtEUDEW1BLwVcuhU4XaTQWMiqOtAvNCDlogidJu-vHZYfutbmZsTc0xuF/w400-h78/CEDARFAIR%2022%20strategy.png" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><br /></div></div><div><div><a href="https://ir.cimpress.com/static-files/f6aca9c0-53d7-43aa-8b6a-fb267826a7d7" target="_blank"><b>Cimpress plc FY2022 ESG Report</b></a></div><div><b>Country: </b>Ireland </div><div><b>Entity: </b>Publicly traded (Nasdaq: CMPR) </div><div><b>Sector: </b>Customized print,
signage, apparel, gifts, identity
merchandise </div><div><b>$ annual revenues: </b>$2.9 billion </div><div><b>Employees: 1</b>6,000</div><div><b>Report:</b> 123 pages, no frameworks </div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiLQC6F-gRuP9XfI-C0Dxfu4hmeXvxlNVci5Ia_6VJf2aWLrtcyZ1IVpxTpPzlY77Zo9cbUYcFu_Xfp3L8fXIhpxig84ZaXrukJ86VKFX8xbnLG_6mhM-SduWtWGChUE07tpov42RuDjc6-YGAW2ZaFS9jFhQjRG8XK6t05S3-0HQD22PtTGdIPiimY/s1785/CIMPRESS22%20cover.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1785" data-original-width="1300" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiLQC6F-gRuP9XfI-C0Dxfu4hmeXvxlNVci5Ia_6VJf2aWLrtcyZ1IVpxTpPzlY77Zo9cbUYcFu_Xfp3L8fXIhpxig84ZaXrukJ86VKFX8xbnLG_6mhM-SduWtWGChUE07tpov42RuDjc6-YGAW2ZaFS9jFhQjRG8XK6t05S3-0HQD22PtTGdIPiimY/w291-h400/CIMPRESS22%20cover.png" width="291" /></a></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div style="text-align: justify;"><b>Cone-worthy 🍦🍦🍦🍦 </b></div><div style="text-align: justify;"># Super slick professional report that presents a positive picture of a company that has been implementing sustainability practice for some time. </div><div style="text-align: justify;"># "Informed" by GRI and SASB, it does not apply these standards but discloses four years of data for most core metrics that these frameworks would demand, including full Scope 1, 2 and 3 GHG emissions. </div><div style="text-align: justify;"># Some targets for environmental impacts (including Net Zero by 2040).</div><div style="text-align: justify;"># Fabulous design (only missing navigation tools) that presents data clearly and showcases local designers.</div><div style="text-align: justify;"><b>Cone opportunities:</b></div><div style="text-align: justify;"># Material topics are listed as those "important to us and our stakeholders", whatever that means. Sounds like plug-and-play. I'd like to see a detailed materiality assessment process in future. </div><div style="text-align: justify;"># Highlight targets upfront - currently they are in-chapter. I like to see where a company is heading before I know where it's been. </div></div><div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg6pE72REHOSJwqLuvP4eVm7hhQ7WWeb8frT39kY-EaVk0QKqiRNIWG1WfefGoxpEcP2te-9ycrvx7W_IGP9cVBSre_os9swraYXTDYeSmtFgrVB7OEbyX-PtDunuSDc43dmPADRxVXkp2htc3nLADlVI0PPM3dpnYMbijVLnTQDHu4_LuW6tUgFa8R/s2688/CIMPRESS22%20environment%20landing.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1896" data-original-width="2688" height="283" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg6pE72REHOSJwqLuvP4eVm7hhQ7WWeb8frT39kY-EaVk0QKqiRNIWG1WfefGoxpEcP2te-9ycrvx7W_IGP9cVBSre_os9swraYXTDYeSmtFgrVB7OEbyX-PtDunuSDc43dmPADRxVXkp2htc3nLADlVI0PPM3dpnYMbijVLnTQDHu4_LuW6tUgFa8R/w400-h283/CIMPRESS22%20environment%20landing.png" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiTlf96PuWYFFe8uqRGPAuvTQ6W454-QOPDzXd0BOhnccxxGNejR8pweLVMS-LbkVVl2JPvP_yGGr_ekL95slBEi4UiqPW-brBFJs6Dy5NtirgXm3F4sQFtEe1Pbq4O7G3i4bAoBOInRrSjZkA9Q7ZDXVXfbPyzIFM0egj9P9FwhsKlvbqt76J5yrX_/s2685/CIMPRESS22%20social%20landing.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1891" data-original-width="2685" height="281" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiTlf96PuWYFFe8uqRGPAuvTQ6W454-QOPDzXd0BOhnccxxGNejR8pweLVMS-LbkVVl2JPvP_yGGr_ekL95slBEi4UiqPW-brBFJs6Dy5NtirgXm3F4sQFtEe1Pbq4O7G3i4bAoBOInRrSjZkA9Q7ZDXVXfbPyzIFM0egj9P9FwhsKlvbqt76J5yrX_/w400-h281/CIMPRESS22%20social%20landing.png" width="400" /></a></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div><a href="https://assets.corusent.com/wp-content/uploads/2022/12/Corus-2022-sustainability-report.pdf" target="_blank"><b>Corus Entertainment Inc. Sustainability Report 2022</b></a></div><b>Country: </b>Canada<div><b>Entity: </b>Publicly traded (TSX: CJR.B) </div><div><b>Sector: </b>Media and content</div><div><b>Report:</b> 55 pages, SASB, TCFD</div><div><br /></div><div><b><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjfu4MojWTPbIBavx2cNyUIY3WoAOWgEU-W-2iI1UPz0vZ2qdnEwE80kKLX0QWNUAqyBnLb0EtBLfpgU_wp3ilbdJ_rcW-gWWK2qfqItXBpva_qdFG_wE54QuudyqmFfOLwCRXvz-C-z_l2IYtP_kxDARowg79HVaw3buqHdKAUwT39-tFeGD9RsJwm/s1336/CORUS22%20cover.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="868" data-original-width="1336" height="260" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjfu4MojWTPbIBavx2cNyUIY3WoAOWgEU-W-2iI1UPz0vZ2qdnEwE80kKLX0QWNUAqyBnLb0EtBLfpgU_wp3ilbdJ_rcW-gWWK2qfqItXBpva_qdFG_wE54QuudyqmFfOLwCRXvz-C-z_l2IYtP_kxDARowg79HVaw3buqHdKAUwT39-tFeGD9RsJwm/w400-h260/CORUS22%20cover.png" width="400" /></a></div><br /></b><b style="text-align: justify;">Cone-worthy 🍦🍦</b><b style="text-align: justify;">🍦</b></div><div><div style="text-align: justify;"># Well-structured and clearly designed report that has a fun feel. Good navigation. Interesting section on journalistic standards - a relevant topic for a media company.</div><div style="text-align: justify;"># Honest responses to TCFD disclosure - for example, why the company has not set carbon targets.</div><div style="text-align: justify;"># Stakeholder voices - internal and external - throughout the report in quotes with images.</div><div style="text-align: justify;"><b>Cone opportunities:</b></div><div style="text-align: justify;"># Reference to having completed an "ESG Maturity Assessment" and a suite of goals seems great, but these are not disclosed in the report. I wonder why not? This report would be more credible if we knew what Corus is committing to. </div><div style="text-align: justify;"># Would be good to see a broader set of data points in addition to DEI and carbon. </div></div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiY5b7UXkrWYbDxI4a6oVhXU4hPhJ41a0F4DGDOwCWgQcQoulb_oPNgExLGYa37Z2XZhHFeddlArvE0LNAVd0IcuaT30scnLtz3UHw26IR3OtcOHfHIf5Hvez7AnwcdqJkAKIckrEW9wbCaP1BBalg6Vrar9061wobN-AAs9P-jSXqY0E6M79PhC0H9/s1804/CORUS22%20ESG%20approach.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1168" data-original-width="1804" height="259" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiY5b7UXkrWYbDxI4a6oVhXU4hPhJ41a0F4DGDOwCWgQcQoulb_oPNgExLGYa37Z2XZhHFeddlArvE0LNAVd0IcuaT30scnLtz3UHw26IR3OtcOHfHIf5Hvez7AnwcdqJkAKIckrEW9wbCaP1BBalg6Vrar9061wobN-AAs9P-jSXqY0E6M79PhC0H9/w400-h259/CORUS22%20ESG%20approach.png" width="400" /></a></div><div><a href="https://www.eg.group/esg-report-2021/" target="_blank"><b>EG Group ESG Report 2021</b></a> </div><div><b>Country: </b>UK<div><b>Entity: </b>Privately owned</div><div><b>Sector: </b>Convenience retail</div><div><b>Employees: </b>58,493 </div><div><b>Report:</b> 63 pages, SASB, TCFD, SDG (goal level), Assurance</div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjbNZZXTadus0hWsy5FS9lSXd5_liF3lEUT6dM78iBMvXfAHeg0bQdpZi8C3yCGocVPAeAelQnafLBxr_2r5RUTGy4RQwTqRITJx_082f8vimBlTFSrlOemIOWEZsXjYDCtuVGWBkW3m1AGIUZ7oeoJf8Mym5J--Rl1nyLp6hBLjp98BXwWvbDaV3X8/s1335/EG%20group21%20cover.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="943" data-original-width="1335" height="283" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjbNZZXTadus0hWsy5FS9lSXd5_liF3lEUT6dM78iBMvXfAHeg0bQdpZi8C3yCGocVPAeAelQnafLBxr_2r5RUTGy4RQwTqRITJx_082f8vimBlTFSrlOemIOWEZsXjYDCtuVGWBkW3m1AGIUZ7oeoJf8Mym5J--Rl1nyLp6hBLjp98BXwWvbDaV3X8/w400-h283/EG%20group21%20cover.png" width="400" /></a></div><div><b style="text-align: justify;">Cone-worthy 🍦🍦</b><b style="text-align: justify;">🍦</b></div><div><div style="text-align: justify;"># Double materiality assessment with a definition of what this means for EG Group</div><div style="text-align: justify;"># Full suite of ESG targets in three strategic pillars, plus a set of ESG Fundamentals that are not strategic but important in terms of maintaining responsible practice (without specific targets). </div><div style="text-align: justify;"># Nice focus on people with images short bios of Board members and employee testimonials.</div><div style="text-align: justify;"># Good climate disclosure with detailed narrative and data across all three Scopes.</div><div style="text-align: justify;"><b>Cone opportunities:</b></div><div style="text-align: justify;"># Data presented for one year (2021) though this is clearly not the first year of data-collection for EG Group. I recommend three years in future reports. </div><div style="text-align: justify;"># I am a little puzzled at the connection between ESG targets and materiality assessment. For example, community investment is positioned at the lowest level on the materiality matrix but EG has two public community targets. Items that are highest priority in terms of materiality (product packaging and plastics, diet and health and land and biodiversity impacts) do not have dedicated targets. Although materiality "informed" target setting, the correlation is not entirely obvious. Perhaps greater alignment here might be considered in future.</div></div><div style="text-align: justify;"><br /></div><div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjJdFxcHVik1iqrtztc2MHofUDAlQ9c291BSxcO2em0CHvCuHTENI64GTClKy93xfn7fSei2zv-FqH98_F_2aYY7ep0-uHpmlOnAUiMpnijQpCr3rcc04X1gw_8uysLJsr98BHmOAcEovbXmzftIepUj0AHU8j1Qyhj49H88FgG8s5riGwN_EcQSWOp/s1596/EG%20group21%20materiality.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1311" data-original-width="1596" height="329" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjJdFxcHVik1iqrtztc2MHofUDAlQ9c291BSxcO2em0CHvCuHTENI64GTClKy93xfn7fSei2zv-FqH98_F_2aYY7ep0-uHpmlOnAUiMpnijQpCr3rcc04X1gw_8uysLJsr98BHmOAcEovbXmzftIepUj0AHU8j1Qyhj49H88FgG8s5riGwN_EcQSWOp/w400-h329/EG%20group21%20materiality.png" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgZFJJjfTi_IpLeGlZtT5SGXAU3flATgHK_nzYkfKlKwhHPTp4tFILWTUzn2D5bdYC950XT0LeIigwozKHMRMJuX3wJ9aik-APk_Wse_6ni3_1P50F-NP3Zt3S6Nr630Qyi-TgLERZ-YTay_n3TsQnqmW35D-Df3d0P-s-HgFPU-EpkLvHmT2ESxsLv/s2478/EG%20group21%20targets.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1660" data-original-width="2478" height="268" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgZFJJjfTi_IpLeGlZtT5SGXAU3flATgHK_nzYkfKlKwhHPTp4tFILWTUzn2D5bdYC950XT0LeIigwozKHMRMJuX3wJ9aik-APk_Wse_6ni3_1P50F-NP3Zt3S6Nr630Qyi-TgLERZ-YTay_n3TsQnqmW35D-Df3d0P-s-HgFPU-EpkLvHmT2ESxsLv/w400-h268/EG%20group21%20targets.png" width="400" /></a></div></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjgiFvmTFoefhiq3z4xLcBVF9rsJj1VHEjiEfkXhtW0i1UD6qcOmXXDdswr56Nt_a6nITQsT_d85HT4NuQRLxDoBZwpYywE9ltdw2KLQKt2VcqXnMqX1XsvpWM5JPONXox3h4J5JyleSV7mULAG_MEyvp3VqrdVOEINPOTbxZL6SjYA1ClB-MBNZgHP/s1576/EG%20group21%20board.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1218" data-original-width="1576" height="309" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjgiFvmTFoefhiq3z4xLcBVF9rsJj1VHEjiEfkXhtW0i1UD6qcOmXXDdswr56Nt_a6nITQsT_d85HT4NuQRLxDoBZwpYywE9ltdw2KLQKt2VcqXnMqX1XsvpWM5JPONXox3h4J5JyleSV7mULAG_MEyvp3VqrdVOEINPOTbxZL6SjYA1ClB-MBNZgHP/w400-h309/EG%20group21%20board.png" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj5zPZckDOvqxmjSJ5lAu2iWCzBsW_a2N3RVsOJJ2a6OLzH8opVL0VWKWU7DvfEnbJOHJrmqMXOISxF_OFzTRswRW3kt5fhSSe2PdDcW24yq9wMV50lbQdaAxT1OHVU9zjO9GoQdpV9ckAjkWi5mso9uObXIVCU4FF1Dir4fDrKrJ54X-aBdGTiyDo3/s2584/EG%20group21%20colleagues.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1675" data-original-width="2584" height="259" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj5zPZckDOvqxmjSJ5lAu2iWCzBsW_a2N3RVsOJJ2a6OLzH8opVL0VWKWU7DvfEnbJOHJrmqMXOISxF_OFzTRswRW3kt5fhSSe2PdDcW24yq9wMV50lbQdaAxT1OHVU9zjO9GoQdpV9ckAjkWi5mso9uObXIVCU4FF1Dir4fDrKrJ54X-aBdGTiyDo3/w400-h259/EG%20group21%20colleagues.png" width="400" /></a></div><br /><div><a href="https://assets.ctfassets.net/f2k4wquz44by/1SixIqAv0gE0P16rkjfzca/abe3f2cd223134646706d2c91f149d56/Galaxy_2021_Sustainability_Report.pdf" target="_blank"><b>Galaxy Digital Holdings 2021 Sustainability Report</b></a></div><div><b>Country: </b>USA<div><b>Entity: </b>Publicly traded<b> </b> (TSX: GLXY)</div><div><b>Sector: </b>Financial services in digital asset, cryptocurrency, and blockchain technology sectors</div><div><b>Employees: </b>281 </div></div><div><b>Report: </b>73 pages, GRI 2021 (referenced), SASB, TCFD, SDGs (target level), GHG Assurance</div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjFm5nTFdhS-jdO-PyW6CWZWM4aE6wq1NPd6HhMfiGniiS7U80Fem7l_f9AS-6FHTipfETvDnVxD8ow5g5RVj4mbgrF2A0m2w4EbZFXNtjlwPuSIlNL1NOXUaiFajduZDBfMlcoH8gK5joHjsIQU8nCrpTv85wBQLWJICBG5EydXKV09Rr6ZPIXoVem/s1323/GALAXy21%20cover.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="753" data-original-width="1323" height="228" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjFm5nTFdhS-jdO-PyW6CWZWM4aE6wq1NPd6HhMfiGniiS7U80Fem7l_f9AS-6FHTipfETvDnVxD8ow5g5RVj4mbgrF2A0m2w4EbZFXNtjlwPuSIlNL1NOXUaiFajduZDBfMlcoH8gK5joHjsIQU8nCrpTv85wBQLWJICBG5EydXKV09Rr6ZPIXoVem/w400-h228/GALAXy21%20cover.png" width="400" /></a></div><br /><div><div><b style="text-align: justify;">Cone-worthy 🍦🍦</b><b style="text-align: justify;">🍦</b><b style="text-align: justify;">🍦</b></div><div><div style="text-align: justify;"># This is a report with a unique kind of chic and makes a strong statement. With a mission "to engineer a new economic paradigm" through blockchain technologies and the crypto economy that most people (including me) still quite don't understand, it's a report that stands out from the crowd both in content and design.</div><div style="text-align: justify;"># Overview of contribution to SDGs on a target-by-target basis with relevant supporting actions.</div><div style="text-align: justify;"># Background and context articles to help us understand the crypto world and how ESG is relevant.</div><div style="text-align: justify;"># Galaxy uses this report to showcase the work of photographer/artist Claudia Pawlak, with a special message about art and ESG.</div><div style="text-align: justify;"><b>Cone opportunities:</b></div><div style="text-align: justify;"># Materiality is defined as "relevance" to internal stakeholders on the one hand, and to external stakeholders on the other. What does "relevance" actually mean? Impact on? Financial benefit? This needs to be clarified. </div></div></div><div style="text-align: justify;"># Great detail about Sustainability Program oversight but no goals or targets. Makes me wonder what the 10 ESG Steering Committee Members are actually overseeing. </div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEguTsBlkGm9a2Pg-pdBpkqmMSyZKi2R1lQum4jy72abg78W_J0f77rn3WnjlM4p27gYqfUTZrNvkt_cY7GgvJCVCYfq0G4qmAnWZkCc3Sd0-PtiS0Z1sPazFwIyEss2fDNt7KeKbHm9LH8CC8QGfABJyLBY5SbrC58wK7VnIUYpIcdk9hFlSkmvD2X4/s2782/GALAXy21%20Artwork.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1342" data-original-width="2782" height="193" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEguTsBlkGm9a2Pg-pdBpkqmMSyZKi2R1lQum4jy72abg78W_J0f77rn3WnjlM4p27gYqfUTZrNvkt_cY7GgvJCVCYfq0G4qmAnWZkCc3Sd0-PtiS0Z1sPazFwIyEss2fDNt7KeKbHm9LH8CC8QGfABJyLBY5SbrC58wK7VnIUYpIcdk9hFlSkmvD2X4/w400-h193/GALAXy21%20Artwork.png" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiXQYaLCsuw_2fNaP_fnKD4d5k61UX49vW_eW9dIBh6PHmLnZmVefrq3ojClOpg-ZYH7cVx3NCYPBEeYhYzOM9cX1g38qVv6wq7fZAILJ5h3U9clqdNxKAHO4MQ6kV0jD0DLKFDkXDfWdPfx2d04w3H2iqX2iyYCJdUxBkwCXklUsAYOkjcS9DxHrW5/s2839/GALAXy21%20ESG%20in%20crypto.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1449" data-original-width="2839" height="204" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiXQYaLCsuw_2fNaP_fnKD4d5k61UX49vW_eW9dIBh6PHmLnZmVefrq3ojClOpg-ZYH7cVx3NCYPBEeYhYzOM9cX1g38qVv6wq7fZAILJ5h3U9clqdNxKAHO4MQ6kV0jD0DLKFDkXDfWdPfx2d04w3H2iqX2iyYCJdUxBkwCXklUsAYOkjcS9DxHrW5/w400-h204/GALAXy21%20ESG%20in%20crypto.png" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhAFUbxGIiVhfd8HyhHzJ7sYsizYa921J03QvmNRzpwwmehR8gQAI9VD4QFly7nM_lfjEaWH04SlgmSSB0XPXkS6GOiOLUiFwSbJdn_S-7ckcj7RRcw_EOlC5fnev3cc_yfA73osli2Xye5JtHs2dXqtJqPS8c4TRr9C-ajlS-UIUFW0ClFPgEjWsxk/s2815/GALAXy21%20Materiality.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1579" data-original-width="2815" height="224" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhAFUbxGIiVhfd8HyhHzJ7sYsizYa921J03QvmNRzpwwmehR8gQAI9VD4QFly7nM_lfjEaWH04SlgmSSB0XPXkS6GOiOLUiFwSbJdn_S-7ckcj7RRcw_EOlC5fnev3cc_yfA73osli2Xye5JtHs2dXqtJqPS8c4TRr9C-ajlS-UIUFW0ClFPgEjWsxk/w400-h224/GALAXy21%20Materiality.png" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi7ccoW8Z7-SxYz65JtQ86wp4mVdcBgHn2_ijub1zpCvDGhydggyX-mdWMwf2Jo76pLlUTEQmKqjo_vm4URCsoUV72v5SjtXdBiIuOV3ry5uKnXVznMbkWRjf_I5h_aW57i8ItTIC1C6TJh3wiDuJruP-ivFbkd6i6OS8QaI0PimTYFzC9sJYWgq8AB/s2718/GALAXy21%20SDG%20targets.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1282" data-original-width="2718" height="189" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi7ccoW8Z7-SxYz65JtQ86wp4mVdcBgHn2_ijub1zpCvDGhydggyX-mdWMwf2Jo76pLlUTEQmKqjo_vm4URCsoUV72v5SjtXdBiIuOV3ry5uKnXVznMbkWRjf_I5h_aW57i8ItTIC1C6TJh3wiDuJruP-ivFbkd6i6OS8QaI0PimTYFzC9sJYWgq8AB/w400-h189/GALAXy21%20SDG%20targets.png" width="400" /></a></div><br /><div style="text-align: justify;"><br /></div><div><a href="https://magsilver.com/site/assets/files/6335/magsilversr2021_09_30_22_final.pdf" target="_blank"><b>MAG Silver 2021 Sustainability Report</b></a></div><div><b>Country: </b>Canada<div><b>Entity: </b>Publicly traded<b> </b>(MAG: TSX / NYSE A)</div><div><b>Sector: </b>Silver mining</div><div><b>Employees: </b>2,929 <b> </b></div></div><div><b>Report: </b>72 pages, UNGC 10 Principles, SDG overview (goal level)</div><div><b><br /></b></div><div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgHYGwo2eLYz27COMA1TKUxqTfJHBluOApk1-RFw8f3VfsglUuh8JE9UmJuSEDWOGsV3lUJocaK15O2XW97uBOvaNzBM6nfBlmWBCgt5cq9x5lrmPpjugqVm0aW_QaLwYPsYMrz92TDIhZzqlM7wJnUsA3pHsKq8YTGo--mnSwMMTgTGAzJqyM7zGHh/s1333/MAG%20silver21%20over.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1036" data-original-width="1333" height="311" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgHYGwo2eLYz27COMA1TKUxqTfJHBluOApk1-RFw8f3VfsglUuh8JE9UmJuSEDWOGsV3lUJocaK15O2XW97uBOvaNzBM6nfBlmWBCgt5cq9x5lrmPpjugqVm0aW_QaLwYPsYMrz92TDIhZzqlM7wJnUsA3pHsKq8YTGo--mnSwMMTgTGAzJqyM7zGHh/w400-h311/MAG%20silver21%20over.png" width="400" /></a></div><br /><div><b style="text-align: justify;">Cone-worthy 🍦🍦</b><b style="text-align: justify;">🍦</b></div><div><div style="text-align: justify;"># A congenial first report, written in plain language that people can understand, no frills or fancy jargon.</div># First internally developed materiality assessment covering "significance and relevance to MAG Silver’s business and potential ESG impacts" - the process is well described.</div><div># Good suite of corporate ESG policies to supplement reporting.<br /><div style="text-align: justify;"><b>Cone opportunities:</b></div><div style="text-align: justify;"># It would be nice to see the adoption of a reporting framework such as GRI in future. </div></div></div><div style="text-align: justify;"># Design is double spaced - difficult to read</div><div style="text-align: justify;"># A final proof always helps😉 (See image below on Security) </div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgNFaRN0FA_BX7oDS1aru0iukiEqLyNBjY06D7ADKncvFTmsr2_5CDJZamT_SR6Lad8CqxHTsmZm_J3OpcZqhmVRu0eeQPWiowKUegtwPkfZQQrFJJOhYaqwA47ZgJEP-hLgumfQEBrf02xhBTCVEmsjOoliteYDBtYrRgx9UUAE4a7pCOUwPjDf3Ye/s1018/MAG%20silver21%20matiss.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="690" data-original-width="1018" height="271" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgNFaRN0FA_BX7oDS1aru0iukiEqLyNBjY06D7ADKncvFTmsr2_5CDJZamT_SR6Lad8CqxHTsmZm_J3OpcZqhmVRu0eeQPWiowKUegtwPkfZQQrFJJOhYaqwA47ZgJEP-hLgumfQEBrf02xhBTCVEmsjOoliteYDBtYrRgx9UUAE4a7pCOUwPjDf3Ye/w400-h271/MAG%20silver21%20matiss.png" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgWk-fgKGHviEu-lZkqu4cxTCfsrEcH7e83Qfj_kbXGSJgAy8SsvI8NFKbh0aUSc6lnKpuKJ9apYdUM5nl7ENSzWiTzN_PrdBJLwB2HXPou-OC2QJCqOD9p0Hif-e281csWE7q_8esb1MbuSEtX7sJcka7zR8hmQ2cR3Ns1b69FvSsO2KfIvZvntwgl/s1293/MAG%20silver21%20proofing.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="622" data-original-width="1293" height="193" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgWk-fgKGHviEu-lZkqu4cxTCfsrEcH7e83Qfj_kbXGSJgAy8SsvI8NFKbh0aUSc6lnKpuKJ9apYdUM5nl7ENSzWiTzN_PrdBJLwB2HXPou-OC2QJCqOD9p0Hif-e281csWE7q_8esb1MbuSEtX7sJcka7zR8hmQ2cR3Ns1b69FvSsO2KfIvZvntwgl/w400-h193/MAG%20silver21%20proofing.png" width="400" /></a></div><br /><div style="text-align: justify;"><a href="https://patrickind.com/wp-content/uploads/2022/12/PI_Sustain-Report_2022.pdf" target="_blank"><b>Patrick Industries, Inc. 2022 Responsibility & Sustainability Report</b></a></div></div><div><b>Country: </b>USA<div><b>Entity: </b>Publicly traded (NASDAQ: PATK) </div><div><b>Sector: </b>Component solutions provider for the leisure lifestyle and housing markets</div><div><b>Annual revenues: </b>$5.1 billion</div><div><b>Employees: </b>11,000</div></div><div><b>Report:</b> 41 pages, SASB</div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhaLbCYbT2piEpLJj3Rpx3FqJ7RiNgB68t07ItE8arT1dwpRYk5E4VjIWzrUDUMx68V7K4IIzDfzr2lGH9JKh7YQJFloLQ0rhWysAxLuDNPrtxnhWLR2WPKnuteFB4ptr5wd0io3b-ODR-7Mhwls3oybloN9koIp-62H8XedoJPcS-695WFmpaUzu0G/s1699/PATRICK22%20cover.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1699" data-original-width="1318" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhaLbCYbT2piEpLJj3Rpx3FqJ7RiNgB68t07ItE8arT1dwpRYk5E4VjIWzrUDUMx68V7K4IIzDfzr2lGH9JKh7YQJFloLQ0rhWysAxLuDNPrtxnhWLR2WPKnuteFB4ptr5wd0io3b-ODR-7Mhwls3oybloN9koIp-62H8XedoJPcS-695WFmpaUzu0G/w310-h400/PATRICK22%20cover.png" width="310" /></a></div><br /><div><b style="text-align: justify;">Cone-worthy 🍦🍦 </b></div><div><div><div style="text-align: justify;"># A focus on people, more than half of this report is about company culture and people development and community contribution. A good start in demonstrating responsible people practices.</div># The section on "where we're going" describes the broad next steps for this company, clearly at the initial stages of its structured sustainability plans</div><div><div style="text-align: justify;"><b>Cone opportunities:</b></div><div style="text-align: justify;"># Tip of the iceberg transparency .. this report contains a limited amount of data, partially explained by the fact that the company has just started to put in place robust data collection processes. A world of opportunity awaits for achieving greater transparency in Patrick's second report.</div></div></div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2Jv4hQbxDR_8-TOMj5-gA1oH-OlYY78sDzcgPbWAtLQuBkvzqBziFr0_ZiS8B8SyQ_9wGINGlg0UFRTJSwumoffi_hspnDMQTzqHz1G7_FI8NEf7tbG5unQ16dl8SEaWT4VUkqvi7Mclo1FQbCp9NZo9sl6Nm4ehbhJqaZ0ajNBjHGrFAiGUfKmsN/s2908/PATRICK22%20where%20we%20are%20going.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1774" data-original-width="2908" height="244" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2Jv4hQbxDR_8-TOMj5-gA1oH-OlYY78sDzcgPbWAtLQuBkvzqBziFr0_ZiS8B8SyQ_9wGINGlg0UFRTJSwumoffi_hspnDMQTzqHz1G7_FI8NEf7tbG5unQ16dl8SEaWT4VUkqvi7Mclo1FQbCp9NZo9sl6Nm4ehbhJqaZ0ajNBjHGrFAiGUfKmsN/w400-h244/PATRICK22%20where%20we%20are%20going.png" width="400" /></a></div><br /><div><br /></div><div><a href="https://www.pahc.com/wp-content/uploads/2022/06/22066-Phibro_ESG-Report_060322_RGB_INTERACTIVE_LINKED.pdf" target="_blank"><b>Phibro Animal Health Corporation 2022 ESG Report</b></a></div><b>Country: </b>USA<div><b>Entity: </b>Publicly traded (Nasdaq: PAHC)</div><div><b>Sector: </b>Animal nutrition</div><div><b>$ annual revenues: </b>942 million</div><div><b>Employees: </b>1,800</div><div><b>Report: </b>56 pages, GRI referenced, SASB</div><div><b><br /></b></div><div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgcg4hgIzWqAYQfhjWEE6se-LJYqb2wsXJH-wlc8Z8Fa0akcUILEV7Bl-RAkX0i6Aj6cFKDdxNWZ6RFjtwhWpRBrzQrkfm559uAzArHRm9YAZlct0ibvSawEaHpnT6il3e51mhRikzUOf4H2_R72s2PoyiIBtXslHEbrjvxJ_cLr8nJqJzuUf6Ex0qf/s1324/PHIBRO21%20cover.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1030" data-original-width="1324" height="311" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgcg4hgIzWqAYQfhjWEE6se-LJYqb2wsXJH-wlc8Z8Fa0akcUILEV7Bl-RAkX0i6Aj6cFKDdxNWZ6RFjtwhWpRBrzQrkfm559uAzArHRm9YAZlct0ibvSawEaHpnT6il3e51mhRikzUOf4H2_R72s2PoyiIBtXslHEbrjvxJ_cLr8nJqJzuUf6Ex0qf/w400-h311/PHIBRO21%20cover.png" width="400" /></a></div><div><b style="text-align: justify;">Cone-worthy 🍦🍦 </b><b style="text-align: justify;">🍦</b></div><div style="text-align: justify;"># Phibro addresses a good range of ESG-related topics in this report, albeit most of the content is general narrative rather than specific reporting year content. The declaration that "Phibro is in the early stages of our ESG journey" is honest and credible and inspires confidence that Phibro will continue to evolve its approach and practice to include a defined strategy and targets in key areas. </div><div><div style="text-align: justify;"><b>Cone opportunities:</b></div><div style="text-align: justify;"># First materiality assessment reflects issues "perceived to be most important to our <span style="text-align: justify;">customers, employees and stakeholders and are most relevant to our business" That's a good start. But it still leaves me wondering what "most important" and "relevant" mean. Is it about opinion, impact or profitability? Perhaps this could be defined more precisely.</span></div><div><span style="text-align: justify;">#Material topics are not disclosed. Alongside the description of the materiality assessment process, there is a list of "beliefs". It's not clear if these are material topics or a value system. </span></div><div style="text-align: justify;"># More pictures of animals would be nice. I love animals. </div></div><b><br /></b></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj8Am53uPpqtYDCCfwyXZeGEH4ud22AjnDuA28clweiUkQVDX0vrg-PVYsi5Ww5fQMzsXqVgNlFFNMnVuJgqxakARyTxSmpdBIcJIRg8x7Xv7iKAPt4X2kxOQe_-_vjP1aG0dktjVTV45dMix8rqmy54svwc4da1zok8gG5feAZqTyYVyZpHOShWxXE/s2227/PHIBRO21%20matass.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1549" data-original-width="2227" height="279" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj8Am53uPpqtYDCCfwyXZeGEH4ud22AjnDuA28clweiUkQVDX0vrg-PVYsi5Ww5fQMzsXqVgNlFFNMnVuJgqxakARyTxSmpdBIcJIRg8x7Xv7iKAPt4X2kxOQe_-_vjP1aG0dktjVTV45dMix8rqmy54svwc4da1zok8gG5feAZqTyYVyZpHOShWxXE/w400-h279/PHIBRO21%20matass.png" width="400" /></a></div><div><br /></div><div><div><b><a href="https://primark.a.bigcontent.io/v1/static/Primark-Sustainability-and-Ethics-Report-2021-22" target="_blank">Primark Limited Sustainability and Ethics Progress Report 2021/2022</a></b></div><div><b>Country: </b>UK<div><b>Entity: </b>Owned by Associated British Foods plc (ABF)</div><div><b>Sector: </b>Fashion apparel</div><div><b>$ annual revenues: </b>Approx. $9 billion</div><div><b>Employees: </b>72,000</div></div><div><b>Report: </b>57 pages, Assurance. Primark also contributes to ABF's annual sustainability reporting. </div></div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjyDaQA8OKFbgHp9ANS5li3wjm8yoECWOqMZKFf5jdlAtuGb34u3wTxbNRR8TFCHJ0aVh4Q_iCrI4YSTV3b-YBs5lq8Z9sM7V4YCDVOFmpdhBaHk6OibuMCYCH8-t8kvqFEeAnJk08QXj0ffNJ_RB_iRm3Rzh4pr_rZHtL6bHImDXA01P8nW7CuvUj9/s2554/PRIMARK21%2022%20cover.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1831" data-original-width="2554" height="286" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjyDaQA8OKFbgHp9ANS5li3wjm8yoECWOqMZKFf5jdlAtuGb34u3wTxbNRR8TFCHJ0aVh4Q_iCrI4YSTV3b-YBs5lq8Z9sM7V4YCDVOFmpdhBaHk6OibuMCYCH8-t8kvqFEeAnJk08QXj0ffNJ_RB_iRm3Rzh4pr_rZHtL6bHImDXA01P8nW7CuvUj9/w400-h286/PRIMARK21%2022%20cover.png" width="400" /></a></div><br /><div><div><b style="text-align: justify;">Cone-worthy 🍦🍦</b><b style="text-align: justify;">🍦</b><b style="text-align: justify;">🍦🍦</b></div><div><div><div style="text-align: justify;"># Primark is no stranger to reporting through its parent company Associated British Foods (ABF), but this is the first separate Primark report. It rests on the reporting foundation of ABF ABF's <a href="https://www.abf.co.uk/content/dam/abf/corporate/AR-and-RR-website-updates-2022/responsibility/ABF%20Responsibility%20Report%202022.pdf.downloadasset.pdf" target="_blank">2022 Responsibility Report here</a> for reference), and is included in several sections of ABF's report, mostly narrative but some data. Certain statements in the Primark report are externally assured. As such a large business in its own right, it's a good move by Primark to add this solo venture into the world of transparency. </div></div><div style="text-align: justify;"># Great set of Primark Cares commitments, some of which are quite bold, for example, the product commitments: improving durability of clothes, all clothes to be recyclable by 2027, all clothes to be made of recycled or sustainable sources by 2030. I think these are quite transformative for a company that is part of an industry criticized for fast-fashion, throwaway quality and resource inefficiency. </div><div style="text-align: justify;"># Clear report structure in an easily navigable report that covers People, Planet and Product impacts in a coherent way, with case study examples. The narrative is easy to read, provides contextual background and avoids language that is overly gushy or superlative. It's actually a fascinating report with interesting content, reflective of a wide range of actions and impacts. </div><div><div style="text-align: justify;"><b>Cone opportunities:</b></div></div></div><div style="text-align: justify;"><b># </b>Beyond big credit for producing a standalone Primark report, recognizing that sustainability data is included in ABF reports, I believe there is a missed opportunity to include a selection of core data points that are specifically Primark. Carbon emissions are included but there is little other data. Human resources for example, with 72,000 colleagues, and a target to strengthen the position of women at Primark - no data is presented on diversity and inclusion, women or other groups. </div></div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiTsp1xeE3D7TdH-qIC69WIvgdyPqgc_caeAqC8iX4DDcDyHGS58r3VakhaU_eK58Cpc0WrvjKXitWgFMOdjniUy71UUwZ6W6TM9grsbtSDU3Lw_5tx4-Yq9AQjgrmvbpyPPFU5qfg4Nmubr4fw-Xpcih1RqbtP8FkHtG_mpuaLlgazORhWpoajaDJd/s2587/PRIMARK21%2022%20case%20study.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1783" data-original-width="2587" height="276" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiTsp1xeE3D7TdH-qIC69WIvgdyPqgc_caeAqC8iX4DDcDyHGS58r3VakhaU_eK58Cpc0WrvjKXitWgFMOdjniUy71UUwZ6W6TM9grsbtSDU3Lw_5tx4-Yq9AQjgrmvbpyPPFU5qfg4Nmubr4fw-Xpcih1RqbtP8FkHtG_mpuaLlgazORhWpoajaDJd/w400-h276/PRIMARK21%2022%20case%20study.png" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi0UZKrw4D4Z_t6VOus3fW2FajmJ4-LnM_XsEYJdmHHbj4oPV0Shu4l5wOxfWZJG0PzNiftovHr2k5B-lUx4KG9NQE6D-aJJ8xGwf1jNgXWcyUE58MdeJLRimrns-VhHMTy9jyCpProzIBIZdjUSm4AysjjAzdSYXFgVkz39pIEPhtpqpG2GVfT9eMC/s2590/PRIMARK21%2022%20commitments.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1842" data-original-width="2590" height="285" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi0UZKrw4D4Z_t6VOus3fW2FajmJ4-LnM_XsEYJdmHHbj4oPV0Shu4l5wOxfWZJG0PzNiftovHr2k5B-lUx4KG9NQE6D-aJJ8xGwf1jNgXWcyUE58MdeJLRimrns-VhHMTy9jyCpProzIBIZdjUSm4AysjjAzdSYXFgVkz39pIEPhtpqpG2GVfT9eMC/w400-h285/PRIMARK21%2022%20commitments.png" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgh3dwpGw1uV3XCv61sKhY9m77-WbSMm3Wz7DITlXON9HgzR3ZjbsnZFH6Mr1E4fD9pl91foh5Og-NJxuJVA82RdqUbWlG9HU0wC7rkDNPPoFYig8-6mEQJ__wfZ57vG_NK6Ns8WZxAhRF-KohlP4vRCc0h6fxvatQs9Ed6KYU5pZkJ_58ITsHxcsk0/s2463/PRIMARK21%2022%20highlights.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1725" data-original-width="2463" height="280" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgh3dwpGw1uV3XCv61sKhY9m77-WbSMm3Wz7DITlXON9HgzR3ZjbsnZFH6Mr1E4fD9pl91foh5Og-NJxuJVA82RdqUbWlG9HU0wC7rkDNPPoFYig8-6mEQJ__wfZ57vG_NK6Ns8WZxAhRF-KohlP4vRCc0h6fxvatQs9Ed6KYU5pZkJ_58ITsHxcsk0/w400-h280/PRIMARK21%2022%20highlights.png" width="400" /></a></div><br /><div><a href="https://issuu.com/thenavigatorpyx/docs/pyxus_sustainability_report_22_final?fr=sZGNmYzM3NjcwNDY" target="_blank"><b>Pyxus International, Inc. Fiscal Year 2022 Sustainability Report</b></a></div><div><b>Country: </b>USA<div><b>Entity: </b>Publicly traded (OTC Pink: PYYX)</div><div><b>Sector: </b>Agricultural produce</div><div><b>$ annual revenues:</b></div><div><b>Employees: </b>2,943</div></div><div><b>Report: </b>78 pages, GRI Core, GHG Assurance</div><div><b><br /></b></div><div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjchW_AWe3OCZhMKk8MiSZpaugT5BliiWUe10Ffu9l9TWJLTueIBI61i2fRBJhuTf5WIhokTrNFIwUGdZH6TK_tip_vOsziv7bu6IFWtlNacp6dhXU1Po4EHZ_CFGD4gIsKcXrymEydNpVs-vR-R7YQyF6Ab4C6J9oHgi0NrjwpWnGs0x9PJyZeGx8d/s1774/PYXUS22%20cover.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1774" data-original-width="1294" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjchW_AWe3OCZhMKk8MiSZpaugT5BliiWUe10Ffu9l9TWJLTueIBI61i2fRBJhuTf5WIhokTrNFIwUGdZH6TK_tip_vOsziv7bu6IFWtlNacp6dhXU1Po4EHZ_CFGD4gIsKcXrymEydNpVs-vR-R7YQyF6Ab4C6J9oHgi0NrjwpWnGs0x9PJyZeGx8d/w291-h400/PYXUS22%20cover.png" width="291" /></a></div><br /><div><b style="text-align: justify;">Cone-worthy 🍦🍦</b><b style="text-align: justify;">🍦</b><b style="text-align: justify;">🍦</b></div><div><div><div style="text-align: justify;"># Symmetrically structured report with each core chapter presenting Our Ambition, Moving the Needle, How We Measure and Our Results, supplemented with case studies where relevant. I like symmetry in reporting, it gives me the impression that reporting is intentional not random. </div><div style="text-align: justify;">#A materiality matrix representing impact materiality, one of the few that do this in line with GRI requirements.</div></div><div style="text-align: justify;"># A full suite of SMART ESG targets to 2030 including Net Zero value chain emissions by 2050. An impressive set of commitments in a first report. </div><div style="text-align: justify;"># Use of case studies to demonstrate environmental and social action in practice.</div><div style="text-align: justify;"># Appealing, attractive but simple design, with appropriate use of images and supporting design elements and a useful bottom navigation bar. </div><div style="text-align: justify;"><br /></div><div><div style="text-align: justify;"><b>Cone opportunities:</b></div></div></div><div style="text-align: justify;"># Pyxus disclosure could provide a more transparent picture of its activities in future reports. For example, the (material) section on Supply Chain Integrity describes important ethical supplier management practices, but discloses no information or data about what was actually done in the reporting year. The section on Motivated, Skilled and Engaged Employees contains no data at all about employees apart from two data points on women in leadership. Seems that Pyxus disclosure muscles need flexing a little.</div><div style="text-align: justify;"># Pyxus presents a materiality matrix with 12 topics, 7 of which are top-right quadrant. Yet, despite declaring GRI In Accordance: Core Option, the GRI Content Index includes only three standards: 206 (Anti Competitive Behavior), 305 (Emissions) and 413 (Communities). Health and Safety is the most significant material topic on the matrix but GRI 403 (Occupational Health & Safety) does not appear in the Content Index. The report includes a section with a couple of data points on health and safety but this should be reflected in the Index.</div></div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjGhLr79wAfjHkq-SH_W8GIhhhWmbIa8iQF1rkYiRsT9cZhBVll-ZJdcdORaECHk-RhLf4xnvOEWDY7IyBA07ulCxPcfFXDCezWCF1iBrGpQG1e9FasxaiBAam54PaGdpHRWo4EpBRw8rcHRMzf7j0daaCYnZ_bp7M3HgzBuTq8qWh8QaP5wLZODwWb/s1585/PYXUS22%20case%20studies2.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1585" data-original-width="1300" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjGhLr79wAfjHkq-SH_W8GIhhhWmbIa8iQF1rkYiRsT9cZhBVll-ZJdcdORaECHk-RhLf4xnvOEWDY7IyBA07ulCxPcfFXDCezWCF1iBrGpQG1e9FasxaiBAam54PaGdpHRWo4EpBRw8rcHRMzf7j0daaCYnZ_bp7M3HgzBuTq8qWh8QaP5wLZODwWb/w328-h400/PYXUS22%20case%20studies2.png" width="328" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh8Qa2FDDI9BPJzUSbfyGhdMNix_xOiERriCB9yTSUarhZZsvC4yzRwbpKqnwsSFZeSuv1RvaCDniXfhWuB8TrS9o7GSAHamQXxf1706Fhv31N3yiJ36HCWuYXRt36H5PujomFL7oPs3AlL2kbn4vDkXMM9Pk2eHUYZ7CROJ_ABZmg7D9Usyg_tNax7/s1590/PYXUS22%20case%20studies3%20social.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1590" data-original-width="1332" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh8Qa2FDDI9BPJzUSbfyGhdMNix_xOiERriCB9yTSUarhZZsvC4yzRwbpKqnwsSFZeSuv1RvaCDniXfhWuB8TrS9o7GSAHamQXxf1706Fhv31N3yiJ36HCWuYXRt36H5PujomFL7oPs3AlL2kbn4vDkXMM9Pk2eHUYZ7CROJ_ABZmg7D9Usyg_tNax7/w335-h400/PYXUS22%20case%20studies3%20social.png" width="335" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiujZH7i1JSb4tjmma2cBB91_vNCmhTOoSlTGmdQATwPWiCQTtOYQ58q0tw46r28BVHciZ3KMdOTIB4y_2-ONtp7W7t1Fu_7GAu71LyNmlqEHK0VTsNEqbfCXuR6rfdqInWYvrpRaxFDnYZ6HXxAcnBMV9CM3rTOde4l00FdKfYCTvnqULZN4IxQZZW/s1753/PYXUS22%20matass.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1753" data-original-width="1330" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiujZH7i1JSb4tjmma2cBB91_vNCmhTOoSlTGmdQATwPWiCQTtOYQ58q0tw46r28BVHciZ3KMdOTIB4y_2-ONtp7W7t1Fu_7GAu71LyNmlqEHK0VTsNEqbfCXuR6rfdqInWYvrpRaxFDnYZ6HXxAcnBMV9CM3rTOde4l00FdKfYCTvnqULZN4IxQZZW/w304-h400/PYXUS22%20matass.png" width="304" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhasBiHgi4kwRpOoIzkUG9JqavuVf8cnGESe3WZ7iWe2EgXnuVAo9HWTkVk0sPZg2D2OC_ILdvdGNhIEGANTzp3aqPW7p1OICAAeGGbg0PJVN4fy3vr4a3UmUsqeHvnRkdNF7ji2YfO-85GSkj2vTfzNMUOC3fQjws6IkWz-TLeDPgrIyr65qYyEvsp/s1741/PYXUS22%20structure.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1741" data-original-width="1332" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhasBiHgi4kwRpOoIzkUG9JqavuVf8cnGESe3WZ7iWe2EgXnuVAo9HWTkVk0sPZg2D2OC_ILdvdGNhIEGANTzp3aqPW7p1OICAAeGGbg0PJVN4fy3vr4a3UmUsqeHvnRkdNF7ji2YfO-85GSkj2vTfzNMUOC3fQjws6IkWz-TLeDPgrIyr65qYyEvsp/w306-h400/PYXUS22%20structure.png" width="306" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiDPZPEF-2UFJ6Vihg2pHkYzxWToFFNwZJILBuEEO1tuDzCfgAs1_5hYkpXCeMC4Zd0Nni5PotmEw_lQIZ7xp0tJbepZ3F--fQNXyM26ul_1F4fm6I2I-mm4mnYLhhKQY3PrdIoF2rQX-FntR4HwZ-GnpQv3KcyeNth_urcrH9rtxNiY0qFEtBbjWCy/s1353/PYXUS22%20targets.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1353" data-original-width="1209" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiDPZPEF-2UFJ6Vihg2pHkYzxWToFFNwZJILBuEEO1tuDzCfgAs1_5hYkpXCeMC4Zd0Nni5PotmEw_lQIZ7xp0tJbepZ3F--fQNXyM26ul_1F4fm6I2I-mm4mnYLhhKQY3PrdIoF2rQX-FntR4HwZ-GnpQv3KcyeNth_urcrH9rtxNiY0qFEtBbjWCy/w358-h400/PYXUS22%20targets.png" width="358" /></a></div><br /><div><a href="https://d1io3yog0oux5.cloudfront.net/_2d55ee9a94657c500c27b690026f78d3/rangeroil/db/242/691/pdf/Ranger+Oil+ESG+2022+Report.pdf" target="_blank"><b>Ranger Oil Corporation 2022 ESG Report</b></a></div><div><b>Country: </b>USA<div><b>Entity: </b>Publicly traded (NASDAQ:ROCC)</div><div><b>Sector: </b>Oil & Gas</div><div><b>Employees: </b>136</div></div><div><b>Report: </b>35 pages, SASB</div><div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhmA8ZGl31UdAQrCe6Qjz1eD9JozaMuJeimIiWANqMaAV1Rv3expIo66uFCVDh0R38blpPY8ny7HfEpZxNylv17jX6nPSnliO0QMx9tRNN_i7lgZIwyH9Iz0UIqJOVaxT99po6cs4_UCGoIoLqlH1K0KuJOtlHIvC-U-IigdLA_LHyWjkKyQM1WCLLn/s1696/RANGEROIL21%20cover.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1696" data-original-width="1276" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhmA8ZGl31UdAQrCe6Qjz1eD9JozaMuJeimIiWANqMaAV1Rv3expIo66uFCVDh0R38blpPY8ny7HfEpZxNylv17jX6nPSnliO0QMx9tRNN_i7lgZIwyH9Iz0UIqJOVaxT99po6cs4_UCGoIoLqlH1K0KuJOtlHIvC-U-IigdLA_LHyWjkKyQM1WCLLn/w301-h400/RANGEROIL21%20cover.png" width="301" /></a></div><br /><div><b style="text-align: justify;">Cone-worthy 🍦🍦 </b><b style="text-align: justify;"> </b></div><div><div><div style="text-align: justify;"><b># </b>This is an ESG report in the true sense of the word, created for investors, following SASB Standards. It provides a glimpse into the world of sustainability-related financial materiality disclosure that covers only those topics defined by an investor-focused ESG framework and providing single-year data as required by the selected SASB standard. Consistent with this approach, The Chair and CEO write a joint letter to "Shareholders and other Stakeholders". While I personally look to see an impact (or double) materiality disclosure, I acknowledge Ranger Oil for adopting this approach and running with it. </div></div><div style="text-align: justify;"><br /></div><div><div style="text-align: justify;"><b>Cone opportunities:</b></div></div></div><div style="text-align: justify;"># I'd like to think that, at some point in the future, Ranger Oil's leadership would write a joint letter to "All Our Stakeholders", and include a materiality assessment of impacts on people and the environment, in addition to impacts on the business. </div></div><div style="text-align: justify;"># Most of this report is policy statements and descriptions of processes. There is little that reflects progress in this first reporting year. Hopefully the second report will offer more insights into how Ranger is delivering its policies and taking meaningful action.</div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiVDm8U8owFiaAO2mN7VpdCZKdRJc_WAYwW9SoM3ZoC9CWzepZ729RY2QVKDD08z19o7ioMI3jR6HL5cwFOU1l5i0annZETamxaSc7mjdanBP2DOf3ybb_oC8tpAMm3KfPqHciCtN3Nci-__KL5TMLdTiWH7bZCRqvSydlJ52tCTOk7y0FDiriMfGnp/s2760/RANGEROIL21%20letter.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1807" data-original-width="2760" height="263" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiVDm8U8owFiaAO2mN7VpdCZKdRJc_WAYwW9SoM3ZoC9CWzepZ729RY2QVKDD08z19o7ioMI3jR6HL5cwFOU1l5i0annZETamxaSc7mjdanBP2DOf3ybb_oC8tpAMm3KfPqHciCtN3Nci-__KL5TMLdTiWH7bZCRqvSydlJ52tCTOk7y0FDiriMfGnp/w400-h263/RANGEROIL21%20letter.png" width="400" /></a></div><br /><div style="text-align: justify;"><a href="https://selina.gcs-web.com/static-files/32135c88-0233-4c1e-974b-1e20ef5e943f" style="text-align: left;" target="_blank"><b>Selina 2021 ESG Report</b></a></div><div><div><b>Country: </b>UK<div><b>Entity: </b>Publicly traded (NASDAQ: SLNA)</div><div><b>Sector: </b>Hospitality</div><div><b>Employees: </b>1,840</div></div><div><b>Report: </b>69 pages, references GRI (no Content Index)</div><div><b><br /></b></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjWoAhIG-z1wSdOaQTk61-eKiPIW8Qzlj5N7tbLldhtebsoYxleu5JCmuAG8xnXXd3Bp1WKAlc9kxL00ukoChLJJ3KJ0wIeja824WeXCPLzO5EtfOFxpUY_9ScnNQ6Xqvx_2S30aHxgexSRg5K0fiGV4-MYgBkFOCRjvwhlc3Awp3o3TfZm91k_8wRi/s1327/SELINA21%20cover.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="882" data-original-width="1327" height="266" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjWoAhIG-z1wSdOaQTk61-eKiPIW8Qzlj5N7tbLldhtebsoYxleu5JCmuAG8xnXXd3Bp1WKAlc9kxL00ukoChLJJ3KJ0wIeja824WeXCPLzO5EtfOFxpUY_9ScnNQ6Xqvx_2S30aHxgexSRg5K0fiGV4-MYgBkFOCRjvwhlc3Awp3o3TfZm91k_8wRi/w400-h266/SELINA21%20cover.png" width="400" /></a></div><br /><div><br /></div><div><div><b style="text-align: justify;">Cone-worthy 🍦🍦</b><b style="text-align: justify;">🍦</b><b style="text-align: justify;">🍦</b></div><div><div style="text-align: justify;"># This report is appealing for its familiar, straightforward back-to-basics style. It's about culture, connecting, caring and communities. As a young company, it's just ramping up its structured ESG approach, and the report explains its approach without the jargon-rich language of large company reporters. It has a simple authenticity that may resonate with its target millennial audience. </div><div style="text-align: justify;"># Selina gives an honest explanation of its environmental approach, with aspirations to align with Paris on emissions, measure emissions at all locations (currently 11%), eliminate single-use plastics by 2025, rolling out low-flow shower heads globally. Sounds like these initiatives are just ramping up but the direction is set.</div><div style="text-align: justify;"># Describes ESG priority impact areas aligned to SDG goals. </div><div style="text-align: justify;"> </div><div style="text-align: justify;"><b>Cone opportunities:</b></div></div><div><div style="text-align: justify;"># This report was published just before Selina became a publicly listed company traded on NASDAQ. It will be interesting to see Selina mature its ESG programs and disclosures to meet both regulatory and investor demands in its next report while retaining its focus on culture.</div></div></div><div style="text-align: justify;"># A more detailed build-out of the ESG Strategy, defining the strategic goal in each strategy area and establishing targets and core metrics for each could help Selina advance its ESG performance and impact. </div><div style="text-align: justify;"> </div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiU1rEye90O2ZnqhbyiIyeRtexybNXDtPHGbnGp3TXQ_A30CInMsbLOBstp8nND_AACxzfHUWaIMYV-SLIqE6KDcv1OEqI63lDV8UBPi6eOYCmc3CU8wIvmGKvrJ_18x3VWOZju7fKOj_0rwkT9B6YlOll5MK9RalFQXKfoAV0ALwCLqptQtWvwCZQY/s2338/SELINA%202021%20MATASS%20SDG.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1422" data-original-width="2338" height="244" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiU1rEye90O2ZnqhbyiIyeRtexybNXDtPHGbnGp3TXQ_A30CInMsbLOBstp8nND_AACxzfHUWaIMYV-SLIqE6KDcv1OEqI63lDV8UBPi6eOYCmc3CU8wIvmGKvrJ_18x3VWOZju7fKOj_0rwkT9B6YlOll5MK9RalFQXKfoAV0ALwCLqptQtWvwCZQY/w400-h244/SELINA%202021%20MATASS%20SDG.png" width="400" /></a></div></div><div><div style="text-align: justify;"><br /></div></div><div><div><a href="https://www.vog-products.it/images/pdf/Nachhaltigkeitsbericht_EN.pdf" target="_blank"><b>Vog Products Sustainability Report FY 2020/2021 and 2021/2022</b></a></div><div><b>Country: </b>Italy<div><b>Entity: </b>Privately-owned</div><div><b>Sector: </b>Food products</div><div><b>Employees: </b>209</div></div><div><b>Report: </b>40 pages, GRI Core, covers two years, SDGs (goal level)</div><div><b><br /></b></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhGvE8krL5o85v9Ye6a9nLE1L60VSpVLDbjAgkLFy-Hp7nun8hyf03lVzGGMF4mQiHODl7Jo4PLor4Mb6kDMPrMBpqEuWrH62EKfd8XiFR4EOpxlbttf98v4E-2CYQQEv51VGJiBcycXUC8FxbF0ecaWwXdGo_tIa7J7Zz0XoB4rkVcTdCPWEndedFj/s1699/VOG21%2022%20cover.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1699" data-original-width="1273" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhGvE8krL5o85v9Ye6a9nLE1L60VSpVLDbjAgkLFy-Hp7nun8hyf03lVzGGMF4mQiHODl7Jo4PLor4Mb6kDMPrMBpqEuWrH62EKfd8XiFR4EOpxlbttf98v4E-2CYQQEv51VGJiBcycXUC8FxbF0ecaWwXdGo_tIa7J7Zz0XoB4rkVcTdCPWEndedFj/w300-h400/VOG21%2022%20cover.png" width="300" /></a></div><br /><div><br /></div><div><div><b style="text-align: justify;">Cone-worthy 🍦🍦</b><b style="text-align: justify;">🍦</b><b style="text-align: justify;">🍦</b></div><div><div style="text-align: justify;"># This report applies a GRI structure by dedicating a chapter to each material topic (fortunately there are only five 😁). Each chapter follows the same flow which includes a description of impacts, core activities, measures, objectives and stakeholder cooperation. This is an earnest approach to meeting the requirements of GRI while ensuring a full and balanced disclosure. The fact that objectives are included for each material topic is evidence of a considered and focused approach to disclosure. </div><div style="text-align: justify;"># The materiality assessment clearly explained: "<i>How do our actions as a company have an effect, both positive and negative? This was the question at the heart of the impact analysis which the company carried out in autumn 2021. It focused on social, environmental, and economic aspects."</i></div><div style="text-align: justify;"># Three-year data summary tables included at the end of the report.</div><div><div style="text-align: justify;"># Most of the content of this report is focused on actions rather than evergreen policy. </div><div style="text-align: justify;"> </div><div style="text-align: justify;"><b>Cone opportunities:</b></div></div><div><div style="text-align: justify;"># Change the title. "Sustainability is part of our DNA" is one of the most overused and meaningless phrases in the history of sustainability reporting. But maybe a first time reporter might not know that. </div></div></div></div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgwaVX0YHn2WV2GYn1awz_Vk7aXjgYfNodezlhm5bcwm5VczGdtb27YlR4FRqRBQv8oeOmovZu0DGet8nqEqcd5kLXXDDFBolO5O1JlH1n9-N98HdK5jhiWzGxiReOpUA4DNeaXAfdX7pk2OaSbr3RYWNCf0YYYuBm-tYn1KRuTqyV77XkxovlymKwB/s1423/VOG21%2022%20matiss.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="874" data-original-width="1423" height="246" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgwaVX0YHn2WV2GYn1awz_Vk7aXjgYfNodezlhm5bcwm5VczGdtb27YlR4FRqRBQv8oeOmovZu0DGet8nqEqcd5kLXXDDFBolO5O1JlH1n9-N98HdK5jhiWzGxiReOpUA4DNeaXAfdX7pk2OaSbr3RYWNCf0YYYuBm-tYn1KRuTqyV77XkxovlymKwB/w400-h246/VOG21%2022%20matiss.png" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiSWnZIEu50NbDerbFpC9_qdM55zAWJAGyZ3UyyiYRllq2dBGD1Zw1oZKo8IiMiSTaWF1ZZDZxOhBVYdNeX33dA1YkcAYcfkFQiIGUmKDZgDJzTM0NEzMAJjInB-B4jGY84y4FLV60OzS_m6lKDz9CEsVEES5u4fE84J_4rf57O1PoBGkLk1lgVotHT/s1486/VOG21%2022%20SDG.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1486" data-original-width="1242" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiSWnZIEu50NbDerbFpC9_qdM55zAWJAGyZ3UyyiYRllq2dBGD1Zw1oZKo8IiMiSTaWF1ZZDZxOhBVYdNeX33dA1YkcAYcfkFQiIGUmKDZgDJzTM0NEzMAJjInB-B4jGY84y4FLV60OzS_m6lKDz9CEsVEES5u4fE84J_4rf57O1PoBGkLk1lgVotHT/w334-h400/VOG21%2022%20SDG.png" width="334" /></a></div><br /><div style="text-align: justify;"><br /></div><div><br /></div><a href="https://a.storyblok.com/f/95109/x/67532388ff/welchs_2021_csr_report_112822.pdf" target="_blank"><b>Welch’s 2021 CSR Report</b></a></div><b>Country: </b>USA <div><b>Entity: </b>Privately-owned by cooperative</div><div><b>Sector: </b>Fruit-based food and beverage</div><div><b>Report: </b>12 pages</div><div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg4KSTo3NSqnF9-JTwubJqXkDjIVEWTB4_H9cdUBytgjkMsi9nzP0vdu98k8FtAIGLA978JeJ2AxZcMxNZpe5H7tkS3P9T23Hpm74LADqvFVD9VS0CmxiO1nxli_j3xtnhOUWM_1YLi5N5hRpGeKiRMAMwcbbXpuySeVm-TtRiEluwA4KsfM7RZHE64/s1330/WELSHS21%20cover.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="997" data-original-width="1330" height="300" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg4KSTo3NSqnF9-JTwubJqXkDjIVEWTB4_H9cdUBytgjkMsi9nzP0vdu98k8FtAIGLA978JeJ2AxZcMxNZpe5H7tkS3P9T23Hpm74LADqvFVD9VS0CmxiO1nxli_j3xtnhOUWM_1YLi5N5hRpGeKiRMAMwcbbXpuySeVm-TtRiEluwA4KsfM7RZHE64/w400-h300/WELSHS21%20cover.png" width="400" /></a></div><br /><div><b style="text-align: justify;">Cone-worthy 🍦 </b></div><div><div># Welch's is a private organization owned by a cooperative of about 700 family farms across the U.S. This first report deserves credit for being a first report. </div><div># The report provides a high level overview of a strategic approach to corporate responsibility.</div><div># Selected data points demonstrating progress are presented.</div><div><span style="text-align: justify;"> </span></div><div><div style="text-align: justify;"><b>Cone opportunities:</b></div></div><div><div style="text-align: justify;"># While any report is better than no report, Welch's has a great opportunity to enhance the transparency of its reporting to include meaningful data and more detailed practices and progress. As it stands, the report presents a summary of progress in each strategy area, but the selection of datapoints seems rather random, or possibly, the only positive data the organization has available or can present. For example, one data point is that 98% of growers are tracking and reporting their sustainable farming practices. If there is such a wealth of data available from almost 700 growers, Welch's has an opportunity to share a glimpse of the broader impact of the cooperative's activities and its wider impact on farming and environmental practices. The fact that growers report is less useful to know than what they report. </div></div></div></div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgkcoHkBeBZghkdRauTmaT0x5npWCMB7Dq86DnfkdVyXnfA6jJj_nzq7zIxyn7-y9V97qLdY4zh9mxYzZb72YgX1jmtWSe1cwEFb5loMm3NiKj_xrZ-DU48UWXbVSNzB2ADEW6VWt1Yx6_eHGc097r3Qw1UxoY5X-0-LpLIf0Y_She4gqK6AQZfjmoF/s2386/WELSHS21%20future.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1711" data-original-width="2386" height="286" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgkcoHkBeBZghkdRauTmaT0x5npWCMB7Dq86DnfkdVyXnfA6jJj_nzq7zIxyn7-y9V97qLdY4zh9mxYzZb72YgX1jmtWSe1cwEFb5loMm3NiKj_xrZ-DU48UWXbVSNzB2ADEW6VWt1Yx6_eHGc097r3Qw1UxoY5X-0-LpLIf0Y_She4gqK6AQZfjmoF/w400-h286/WELSHS21%20future.png" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEje6tEObZSUWetuu2j96xP_PmkyUKBnhAsXumvqVctSNsQ3lWDFbwNNLOIltlri6DGebdyZPKKiSzEzrz9LEwc0lx8Vd4rIcCmMvoOWcP_aPPbCEf7UN4eDwPK5CZz6qERirpYDk8e8-6pV6i14UUqUTFrA1Ob58jrikjhGExgGM-oEg0fBUX4x5qRT/s2436/WELSHS21%20progress.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1858" data-original-width="2436" height="305" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEje6tEObZSUWetuu2j96xP_PmkyUKBnhAsXumvqVctSNsQ3lWDFbwNNLOIltlri6DGebdyZPKKiSzEzrz9LEwc0lx8Vd4rIcCmMvoOWcP_aPPbCEf7UN4eDwPK5CZz6qERirpYDk8e8-6pV6i14UUqUTFrA1Ob58jrikjhGExgGM-oEg0fBUX4x5qRT/w400-h305/WELSHS21%20progress.png" width="400" /></a></div><br /><div><div><a href="https://www.zentiva.com/-/media/files/zentivacom/sustainability/2021-zentiva-sustainability-report.pdf?la=en&hash=57B0C492DB4157271A28A78818AAEFBA532D941E " target="_blank"><b>Zentiva 2021 Sustainability Report</b></a></div><b>Country: </b>Czech Republic<div><b>Entity: </b>Privately-owned</div><div><b>Sector: </b>Pharmaceuticals</div><div><b>Employees: </b>4,700</div><div><b>Report: </b>35 pages, GRI referenced (no Content Index) GHG Assurance</div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjEke-GmOurjrrME4ufnUlk5LaVqnTYCenlol3N2fAwVyUTFmKS88G37WNhuP28d-14sLrUhqF_kt0Gcdal4BBS1cwl0aUfqyYK0pYMzvNQ7GG6MVRdWNXBBIQlf7BaL96awp61c9tFlOsLIUrZBPbmmo_7A_mHdmUs1WPkZtouD47X_N_lAn_vn9tm/s1785/ZENTIVA21%20cover.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1785" data-original-width="1269" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjEke-GmOurjrrME4ufnUlk5LaVqnTYCenlol3N2fAwVyUTFmKS88G37WNhuP28d-14sLrUhqF_kt0Gcdal4BBS1cwl0aUfqyYK0pYMzvNQ7GG6MVRdWNXBBIQlf7BaL96awp61c9tFlOsLIUrZBPbmmo_7A_mHdmUs1WPkZtouD47X_N_lAn_vn9tm/w284-h400/ZENTIVA21%20cover.png" width="284" /></a></div><br /><div><div><b style="text-align: justify;">Cone-worthy 🍦</b><b style="text-align: justify;">🍦</b><b style="text-align: justify;">🍦</b><b style="text-align: justify;"> </b></div><div><div style="text-align: justify;"># <span style="text-align: justify;">This is a credible report of a growing company clearly, in the early stages of its structured sustainability journey. As a privately owned company, it does a meaningful job of presenting its position across a range of sustainability topics with thought and consideration. </span><span style="text-align: justify;">Data is presented selectively, with the most transparency in environmental metrics over two years.</span></div><div style="text-align: justify;"># <span style="text-align: justify;">A strategic framework – People Partners Planet – creates a language and structure for this company’s sustainability plans, and a set of 30 material topics and 10 goals underpin its commitments, including carbon neutrality by 2030 and gender balance in leadership roles by 2026.</span></div><div style="text-align: justify;"># This report is aesthetically designed. The layout is clean, tables and charts are clear and creative design elements make this report a pleasure to view.</div><div><div style="text-align: justify;"><b>Cone opportunities:</b></div></div><div><div style="text-align: justify;"># As this company advances its plans and becomes more mature in its reporting, there is an opportunity for greater transparency in key areas such as human resources, safety and supply chain. </div><div style="text-align: justify;"># Beyond the direct ESG impacts of Zentiva’s business, it would be of value to understand its impact on healthcare; topics related to access and affordability, innovation, patient engagement etc. are core to Zentiva’s contribution to sustainable development. Greater discussion of these topics would help balance this disclosure and put its sustainability efforts in context.</div></div></div><div style="text-align: justify;"># Stakeholders may be interested to understand more about the materiality analysis– stated as conducted using S&Ps ESG self-audit framework – for example, how the topics are defined for Zentiva and why they are material from an impact and/or financial materiality standpoint.</div><div style="text-align: justify;"><p class="MsoNormal"> </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgNuH2-lbz6y7-tvJR0YmWZ3Zl1NTuaVVrBR7m7jFBlEbajc8UwI5tPmnkUQVNFI3YzBINRDU000mp3_qfzmMZiZja6fnaYkviSlVh0a7c9N95qsBMitJ1p1ZpSocYt9w9LrdQUYLT4pCnhkvgCo50QPQiXIOQH9OMVF8XVN6PXWdHw1RsGAsGwPo9W/s1858/ZENTIVA21%20planet.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1858" data-original-width="1324" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgNuH2-lbz6y7-tvJR0YmWZ3Zl1NTuaVVrBR7m7jFBlEbajc8UwI5tPmnkUQVNFI3YzBINRDU000mp3_qfzmMZiZja6fnaYkviSlVh0a7c9N95qsBMitJ1p1ZpSocYt9w9LrdQUYLT4pCnhkvgCo50QPQiXIOQH9OMVF8XVN6PXWdHw1RsGAsGwPo9W/w285-h400/ZENTIVA21%20planet.png" width="285" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhelRgFbdTBfMAgRm_5i_87MYu1xrcNUdT90ZGYfRIK-A5jc8Vi9b8mnK2b2W2xo_SMwHeRzSK7m1ed4vL6NN0--KXXRw0GcB-nA6SOS7G1DbTdSkd2NUvhGX7DU-vDI1gMUupqtg6FcfPNTSSmUqqeBY6uZ8qsJWA0tw1kvUHlZKO2gB2iMCeIhb3A/s1750/ZENTIVA21%20matass.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1750" data-original-width="1171" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhelRgFbdTBfMAgRm_5i_87MYu1xrcNUdT90ZGYfRIK-A5jc8Vi9b8mnK2b2W2xo_SMwHeRzSK7m1ed4vL6NN0--KXXRw0GcB-nA6SOS7G1DbTdSkd2NUvhGX7DU-vDI1gMUupqtg6FcfPNTSSmUqqeBY6uZ8qsJWA0tw1kvUHlZKO2gB2iMCeIhb3A/w268-h400/ZENTIVA21%20matass.png" width="268" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh9ZAh03-PsCBJhYfSSjouaMz_sfVZIH0YUKEEXiIlMzuqXmu4GK8srdh7pcyBpp6vFrfx8hzgs47KT736Unc79O-3KnDEukQo1FXdlRTrw1cZPqb_PY85GQMNIyXkk88t58V1cyYpGN5_Hvv1i-BwwE8Xf7v1y-DKnE5sTo1SDeEzLYoy7IVj0Ysf9/s1756/ZENTIVA21%20goals.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1756" data-original-width="1279" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh9ZAh03-PsCBJhYfSSjouaMz_sfVZIH0YUKEEXiIlMzuqXmu4GK8srdh7pcyBpp6vFrfx8hzgs47KT736Unc79O-3KnDEukQo1FXdlRTrw1cZPqb_PY85GQMNIyXkk88t58V1cyYpGN5_Hvv1i-BwwE8Xf7v1y-DKnE5sTo1SDeEzLYoy7IVj0Ysf9/w291-h400/ZENTIVA21%20goals.png" width="291" /></a></div><br /> <p></p></div><div style="text-align: justify;"><br /></div><div><div><span style="color: red;"><b>BONUS REPORT</b></span></div><div><a href="https://worldcoatingscouncil.org/WCC-Sustainability-Report/#page=1" target="_blank"><b>World Coatings Council Sustainability in the Global Paint & Coatings Industry Report</b></a></div><div style="text-align: justify;">I am a fan of industry and trade association reports, as I believe they provide a helpful overview of sustainability issues that matter from an industry perspective and set standards that companies in the industry can learn from and align with. This first 40-page report from the World Coatings Council is well worth a look. </div></div><div><br /></div><div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhMuLlacycbzx9RiLpS_ahVz1z5AV2yTxQDWFdGsTpA0GPx_2QQi_DrB1JrfORqGZhJaJJz7p7hTzIObefXzXjHbeM7dfe7NW9pdd59KERSumqmAQWxIIcF_P042sU8z9V18Ak39Btyfgj05-SI2t-d9eKgBQDct0lZXEFF1evtjIrFCXgU3X1TwYiX/s1671/WORLD%20COATINGS%20COUNCIL21%20cover.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1671" data-original-width="1294" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhMuLlacycbzx9RiLpS_ahVz1z5AV2yTxQDWFdGsTpA0GPx_2QQi_DrB1JrfORqGZhJaJJz7p7hTzIObefXzXjHbeM7dfe7NW9pdd59KERSumqmAQWxIIcF_P042sU8z9V18Ak39Btyfgj05-SI2t-d9eKgBQDct0lZXEFF1evtjIrFCXgU3X1TwYiX/w310-h400/WORLD%20COATINGS%20COUNCIL21%20cover.png" width="310" /></a></div><div> </div></div><div><br /></div><div><br /></div><div style="text-align: center;"><span style="color: red;">*************</span></div><div><br /></div><div>That's all, folks. I expect there will be many many first time reports in 2023, so expect a much longer list this time next year. In the meantime, Happy 2023! and Happy Reporting!</div><div><br /></div><div><br /></div><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="background-color: #e0e0e0; color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: justify;">e</span><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="background-color: #e0e0e0; color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: justify;">laine cohen, </span><b style="background-color: #e0e0e0; color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: justify;">GCB.D</b><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="background-color: #e0e0e0; color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: justify;">: </span><a href="https://competentboards.com/" style="background-color: #e0e0e0; color: blue; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: justify;" target="_blank">ESG Competent Boards Certified (2021)</a><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="background-color: #e0e0e0; color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: justify;">, </span><b style="background-color: #e0e0e0; color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: justify;">Sustainability Strategy and Disclosure Specialist</b><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="background-color: #e0e0e0; color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: justify;">, former HR Professional, Ice Cream Addict. Owner/Manager of </span><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="background-color: #e0e0e0; color: blue; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: justify;"><a href="http://www.b-yond.biz/" style="color: #0066cc;" target="_blank"><b>Beyond Business Ltd</b></a></span><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="background-color: #e0e0e0; color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: justify;">, </span><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="background-color: #e0e0e0; color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: justify;">an inspired Sustainability Strategy and Reporting firm having supported </span><b style="background-color: #e0e0e0; color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: justify;">>160 </b><a href="http://www.b-yond.biz/clients-reports" style="background-color: #e0e0e0; color: #0066cc; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: justify;" target="_blank"><span style="color: blue;"><b>client reports</b></span></a><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="background-color: #e0e0e0; color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: justify;"> to date; </span><b style="background-color: #e0e0e0; color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: justify;">author </b><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="background-color: #e0e0e0; color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: justify;">of </span><a href="http://www.b-yond.biz/our-books" style="background-color: #e0e0e0; color: #0066cc; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: justify;" target="_blank"><span style="color: blue;">three books and several chapters</span></a><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="background-color: #e0e0e0; color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: justify;"> on Sustainability Reporting and the Human Resources connection to CSR; frequent </span><b style="background-color: #e0e0e0; color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: justify;">chair and speaker </b><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="background-color: #e0e0e0; color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: justify;">at sustainability events and </span><b style="background-color: #e0e0e0; color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: justify;">judge</b><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="background-color: #e0e0e0; color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: justify;"> in several sustainability awards programs each year. Contact me via </span><a href="http://www.twitter.com/elainecohen" style="background-color: #e0e0e0; color: #0066cc; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: justify;" target="_blank">Twitter</a><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="background-color: #e0e0e0; color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: justify;"> , </span><a href="https://www.linkedin.com/in/elainecohen/" style="background-color: #e0e0e0; color: #0066cc; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: justify;" target="_blank"><span style="color: blue;">LinkedIn</span></a><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="background-color: #e0e0e0; color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: justify;"> or via </span><a href="http://www.b-yond.biz/" style="background-color: #e0e0e0; color: #0066cc; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: justify;" target="_blank"><span style="color: blue;">Beyond Business</span></a></div></div></div></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi9DziUWhTGbbzRUVNRkMtyV_dzZpxchxNNZpVmj62HriQm6dqOdiRuq-PbIhl42u72QvuTV38MDOeMxCGdiqzIrALqHTPyPNkhIK9xD4Zrp8_HTkYqy6O9jWUvcZa28KhIbtpCZb0DdpP2fQvhaxOE2hnycWO1NUc82wX75vJTCDh-dHhPX2n7dOxn/s1329/CEDARFAIR%2022%20cover.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="859" data-original-width="1329" height="207" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi9DziUWhTGbbzRUVNRkMtyV_dzZpxchxNNZpVmj62HriQm6dqOdiRuq-PbIhl42u72QvuTV38MDOeMxCGdiqzIrALqHTPyPNkhIK9xD4Zrp8_HTkYqy6O9jWUvcZa28KhIbtpCZb0DdpP2fQvhaxOE2hnycWO1NUc82wX75vJTCDh-dHhPX2n7dOxn/s320/CEDARFAIR%2022%20cover.png" width="320" /></a></div><br />elainehttp://www.blogger.com/profile/07433863039389159395noreply@blogger.com0tag:blogger.com,1999:blog-8008724049496903547.post-87801230688440086812022-12-28T09:12:00.000+02:002022-12-28T09:12:15.795+02:0023 Sustainability Reporting Insights For 2023 <div style="text-align: justify;">2023 will be another dynamo year for the reporting landscape. Alongside the development of standards and frameworks, interoperability, global baselines, materiality debates and promises of comparability, the hard work of reporting goes on and first-time, experienced and expert reporters continue to grapple with old and new disclosure challenges. </div><div style="text-align: justify;">Here's a round-up of some stuff that might be helpful as the 2022-2023 reporting cycle kicks in. Some of it may be familiar to regular CSR Reporting Blog readers - I am nothing if not repetitive - I am nothing if not repetitive - haha. But, well, some things need saying twice, or fourteen times. I am nothing if not repetitive. Let's get started:</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><span style="color: red;"><b>1. The More You Sweat in Peace, the Less You Bleed in Battle</b></span></div><div style="text-align: justify;">This saying is attributed to many people so I can't be sure who said it first. Paraphrased for our purposes: the harder you work now at preparing for compliance, the easier it will be to comply when there's no longer a choice. I think we all know that sustainability disclosure is heading toward its legal coming of age. This includes regulatory requirements governing the content of disclosures (especially on climate and nature), the timing and formats of publication and third-party assurance. While there's always a transition period, it flies by quickly. It's well worth ensuring you know which upcoming standards are likely to affect your business, from when, and starting to put in place the necessary building blocks to meet the new demands. A selection of the most prominent changes:</div><div style="text-align: justify;"><b><a href="https://www.globalreporting.org/standards/" target="_blank"><span style="color: #2b00fe;">GRI 2021 and updated universal standards</span>:</a></b> This one should already be in the bag for GRI reporters. The changes apply for publications from Jan 1, 2023. Not regulatory but market-driven.</div><div style="text-align: justify;"><b><a href="https://www.europarl.europa.eu/news/en/press-room/20221107IPR49611/sustainable-economy-parliament-adopts-new-reporting-rules-for-multinationals" target="_blank"><span style="color: #2b00fe;">CSRD:</span></a></b> As part of the Corporate Sustainability Reporting Directive, the European EFRAG-ESRS Standards, - the first 12 of them anyway, including climate, water, biodiversity, circularity, workforce, community impacts and business conduct - were approved by the EU and will apply on a phased basis from FY2024 once ratified in EU member countries.</div><div style="text-align: justify;"><b><a href="https://www.ifrs.org/projects/work-plan/#sustainability" target="_blank">IFRS ISSB</a></b>: The two initial proposed standards for general sustainability-related disclosures (IFRS S1) and climate-related disclosures (IFRS S2) are expected to be finalized any day soon. Implementation by law will depend on uptake in various jurisdictions. <a href="https://the-cfo.io/2022/05/12/uk-to-adopt-issbs-new-international-sustainability-standards/" target="_blank">The UK</a> has already thrown its hat in the ring.</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><span style="color: red;"><b>2. Out of the Fire and into the Frying Pan</b></span></div><div style="text-align: justify;">It pays to keep a level head when faced with the hype around how all the new reporting standards will make everything so much better/easier/more consistent. Agreed, there is some convergence that removes a layer of clutter and an acronym or three. IIRC, CDSB and SASB are now all one organization. But wait, the last time I looked, there is a new set of investor-focused standards called ISSB, as well as a set of SASB standards that ISSB will most likely consume or interoperabilize. There is another evolving set of European CSRD ESRS standards with its expected array of sector standards in the future. And GRI is continuing.. slowly but doggedly.. to develop its own suite of sector standards. TCFD and its nearly-newborn cousin TNFD are squarely in the mix. In addition there are stock exchange requirements around the world, including the upcoming intensification of climate disclosures for the U.S. SEC, and oh, let's not forget, the SDG framework and the politically correct imperative of public alignment. We have materiality, sustainability-related financial materiality, double materiality, dynamic materiality, none of which are applied using a consistent, clear or, in many cases, auditable methodology. Throw WEF SCM and CDP into the mix and even UNGPBHR. And how could we not mention the all-new bells-and-whistles UNGC COP with its multiple choice online questionnaire that resembles a low-grade intelligence test for reporting interns. </div><div style="text-align: justify;">So what's changed? Fewer acronyms? More optimistic rhetoric? Belief in a new era of interoperability and comparability? What no-one is saying is that reporting will be no less challenging, no less complex and no more comparable in the future. Best not to get too taken up with the time you will save in this new disclosure utopia and and focus on developing robust internal processes that will ensure you tackle this complexity in the most efficient way. For example, ensure a consistent data collection process to create core datasets that can be easily sliced and diced to meet different reporting needs. As we are now in the frying pan, you'd better get better at making omelets. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><span style="color: red;"><b>3. Switch out FOMO with JOMO</b></span></div><div style="text-align: justify;">Fear Of Missing Out (FOMO) is not a good basis for disclosure excellence. Following the herd may not be the right thing for your business. By focusing on what you must disclose (regulators rule ) and what you need to disclose (<b>your</b> impacts, <b>your</b> accountability, not everybody's impacts), you can travel along the reporting highway at speed and get to your destination without unnecessary baggage. This is the Joy of Missing Out (JOMO) approach. Be joyful in saying: "<i>No, this does not add value.</i>" GRI+ISSB(SASB)/CSRD+TCFD+CDP (plus regulatory requirements in different markets) seems to be the majority-rule common sense mix moving forward. They cover the information that anyone should reasonably need to know to evaluate a company's environmental and social impacts and risks. Maybe companies should work at disclosing diligently against these frameworks and only add more metrics if there is an explicit compelling business case to do so. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><span style="color: red;"><b>4. Be a Futurist not a Historian</b></span></div><div style="text-align: justify;">Sustainability reports should reflect a year of past performance (frankly, I don't need your timeline going back to when you first learned the term sustainability) but increasingly, we expect reports to predict a little of your company's future and the way it plans to navigate the sustainability challenges ahead, mitigate risks and achieve its goals. Reporting content should balance the current state of play with future plans and initiatives. What you have done is not a guarantee of what you will do, so how you are moving forward is critical for an understanding of the level of your company's commitment and sound sustainability management. Oh, and a one-liner entitled "Looking ahead" that says "continue to contribute to xyz" doesn't really cut it. If you have no plans to drive progress on material topics, you should develop some. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Here's an example found in a 2022 ESG Report, one of a series of stated goals:</div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjnSHLdKg0KolacTgEFpeQ7wXDvwIxyWlXLUfgM4vM2bZRSW-BmvS_sMcX0sWD7Ej2b_GJSLUu9Yc3Cm7UHnm8xgXE99AKORKDE6o9A33f1YsgApLQpaE0T6NAPNSRs8oNa5VDDLaUM_f5m58KoxUCFqxi_KL-S4A7ZnJAENO_D0AA7RlgxQtc3b3Ek/s600/MARVELL%202022%20goal%20p44.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="369" data-original-width="600" height="246" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjnSHLdKg0KolacTgEFpeQ7wXDvwIxyWlXLUfgM4vM2bZRSW-BmvS_sMcX0sWD7Ej2b_GJSLUu9Yc3Cm7UHnm8xgXE99AKORKDE6o9A33f1YsgApLQpaE0T6NAPNSRs8oNa5VDDLaUM_f5m58KoxUCFqxi_KL-S4A7ZnJAENO_D0AA7RlgxQtc3b3Ek/w400-h246/MARVELL%202022%20goal%20p44.png" width="400" /></a></div><div><br /></div><div style="text-align: justify;">Of course, there is much behind-the-scenes work that goes on in any company to maintain compliance with regulations, including anti-competition laws. Compliance is a business process that requires resources and attention and diligent management. But, for this company, anti-competitive behavior was not explicitly declared as a sustainable development material topic, and there is no discussion about anti-competitive challenges in the report itself. What's the value of a target such as this? Isn't it a bit like having a goal to brush your teeth every morning? Or a goal to walk the dog twice a day? For me, a goal is not about maintenance, unless maintaining the status quo is expected to be extra tough because of new challenges that would send you off-course if you took no action. If so, I would expect to read about the challenges and the step-change that a goal such as this is designed to deliver. Otherwise, it's a bit of a stocking filler. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b><span style="color: red;">5. Target Targets</span></b></div><div style="text-align: justify;">I continue to be astounded that companies who declare "sustainability is in our DNA" while publishing creative and elaborate ESG strategies and attesting to intensive stakeholder engagement do not state their targets in key sustainability performance areas. Maybe they don't have any? Or maybe they are secret? Either way, lack of targets means lack of credibility. These days, when I read and review sustainability reports, I follow this path: (1) CEO letter (2) Materiality (3) Targets (4) All the rest. I look for consistency among the first three reporting elements. If there is a total disconnect, or if any of these elements are unconvincing, oops, I read all the rest with a high degree of skepticism, no matter how well-written or how beautifully designed it is. Companies that are serious about sustainability set SMART targets: Specific, Measurable, Achievable, Realistic, and Timely. Here's an example: <br /></div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgmrEKWUf6Aqm3gP1lGOEC-vmrV40OcvJgwZ5dmJ2h1MuS_SiOc9_Hqhh9qrO1nTcvbMWGyjRphW_WVlM4XYIl6_2fi86SLOu00hkHmAMVB9Qn-L9om03yfOXxRoyfi0BSssanNZREd_1DxS7EOvDZsUV3y9j4XWytkt8rg50vfOogd6HNeZNOPJ65d/s1564/RDM%20Group%202022%20goals%20p17.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1564" data-original-width="1177" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgmrEKWUf6Aqm3gP1lGOEC-vmrV40OcvJgwZ5dmJ2h1MuS_SiOc9_Hqhh9qrO1nTcvbMWGyjRphW_WVlM4XYIl6_2fi86SLOu00hkHmAMVB9Qn-L9om03yfOXxRoyfi0BSssanNZREd_1DxS7EOvDZsUV3y9j4XWytkt8rg50vfOogd6HNeZNOPJ65d/w301-h400/RDM%20Group%202022%20goals%20p17.png" width="301" /></a></div><br /><div style="text-align: justify;">This is from RDM Group, a privately owned recycled cartonboard business
in Europe. This set of goals in the company's <a href="https://rdmgroup.com/wp-content/uploads/2022/09/RDM-digital-sustainability_report_2021.pdf" target="_blank">2021 Sustainability Report</a> is impressive to me because the goals are simply stated with a clear base year benchmark, long term targets and current progress. You get the full picture, quickly. Nothing fancy. The targets cover a range of sustainability topics rather than only climate or environment like many companies. Also, each of these targets represents progress. I can't comment on the degree of stretch or effort required to deliver these targets - that's a question for another day - but the public commitment is credibility affirmative.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><span style="color: red;"><b>6. Pathways Are to Targets as Fish is to Chips</b></span></div><div style="text-align: justify;">Great. You published your 2030 targets, or your Net Zero by 2050 targets. Fantastic. But how many of your leadership team will be around in another 8 or so years to deliver your 2030 targets? Even fewer in 2050. To really get the credibility brownie points, you need to show how you will achieve these targets. Climate change reporting is getting better at this, with many companies sharing a pathway to Net Zero target delivery. But in almost all other areas, it's a guessing game, especially if the current performance is a step change away from the targeted performance. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><a href="https://www.angloamerican.com/~/media/Files/A/Anglo-American-Group/PLC/investors/annual-reporting/2022/aa-sustainability-report-full-2021.pdf" target="_blank">Anglo American's 2021 Sustainability Report</a> provides a Net Zero by 2040 pathway that visualizes the complex elements of their decarbonization plan. </div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEio8d3p2vL0pjUiwX88HLmVC7kTelSd13sM-stc0-Z1tbSCI9j_1xeFsPN83nbI20f6AfoIyGux175e7mGXHkNQ_GyLcCxiZZ-XHCj8vAWoCfnvYTqFW8jbTH12IHJF-GMLdx1VSdA_RnnPmjB9tYlsc7tU7CXHCUs0Tl-ZIcJ92TpZUKa3k_2z9qHI/s3010/ANGLOAMERICAN%202021%20netzero.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1186" data-original-width="3010" height="158" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEio8d3p2vL0pjUiwX88HLmVC7kTelSd13sM-stc0-Z1tbSCI9j_1xeFsPN83nbI20f6AfoIyGux175e7mGXHkNQ_GyLcCxiZZ-XHCj8vAWoCfnvYTqFW8jbTH12IHJF-GMLdx1VSdA_RnnPmjB9tYlsc7tU7CXHCUs0Tl-ZIcJ92TpZUKa3k_2z9qHI/w400-h158/ANGLOAMERICAN%202021%20netzero.png" width="400" /></a></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><span style="color: red;"><b>7. Comparability Will Always be a Myth</b></span> </div><div style="text-align: justify;">The thing about standards and frameworks is that there are always gray areas, and there are always companies who bend the rules, smoothen the edges and adapt the guidelines to what they can or want to disclose. Perhaps regulation might make a difference, but standards need to be extremely prescriptive in order for companies to use them in exactly the same way. Take a simple metric such as "Percentage of women in management". Every company has a different definition of what constitutes a management position, from first line supervisory to senior executive. Any benchmark I have ever done (and I have done many) of reports using GRI Standards are almost never comparable on a metric for metric basis. That's probably because no company is the same as any other, and the context in which any company operates is always unique to that company. I have never truly understood the obsession with comparability, between companies at least. For me, comparability for me means comparing any company against itself and its prior performance. That's why it's important to report consistently year on year, and explain any changes in methodologies or scope or underlying assumptions. </div><div style="text-align: justify;">Companies that issue a detailed metric calculation methodology make it easy for report users to know how metrics were developed, especially non-standard ones. <a href="https://www.kingfisher.com/content/dam/kingfisher/Corporate/Images/RB-Report-2022/Kingfisher-plc-Data-Collection-Methodology-2021-22.pdf" target="_blank">Kingfisher plc does this well each year</a> with detailed explanation of every core metric reported.</div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhOZnHmy48s2Vj7Ctg6LJHUkShbjn4jbvnmdUUhWMRnzaYENyitdqdmYumO_l-MvM9pYTk7yVw4ydPa0rnHd3TPXBLYBEciR3Uwc6IOZ_pbgOPgRk8QLzwlvle7fJPygYqMmn8pZx4o1h6WK4p5CA5atRpl2MlaK8s4rLGMx_Xz49GRIZKVGzLZXV93/s1675/KINGFISHER%202021%20reporting%20methodology%20cover.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1179" data-original-width="1675" height="281" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhOZnHmy48s2Vj7Ctg6LJHUkShbjn4jbvnmdUUhWMRnzaYENyitdqdmYumO_l-MvM9pYTk7yVw4ydPa0rnHd3TPXBLYBEciR3Uwc6IOZ_pbgOPgRk8QLzwlvle7fJPygYqMmn8pZx4o1h6WK4p5CA5atRpl2MlaK8s4rLGMx_Xz49GRIZKVGzLZXV93/w400-h281/KINGFISHER%202021%20reporting%20methodology%20cover.png" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh542JZs32lfJt4buTF40_cgNreHPgu-q5xeEEheWkRUjsIV6oAtKxyry2mOJj9v-bBzYMD9z3Wsj6N5zjq5_Yer0V1PbbALiFCS11lerWsFdpIxs4ysHQW1IuE1lTItGoTqbVPL0MLGF3_jxPob86p8OoFTZw9N_GkrI-C3hK1hLjJn0kfe2SZIov0/s1680/KINGFISHER%202021%20reporting%20methodology%20p3.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1194" data-original-width="1680" height="284" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh542JZs32lfJt4buTF40_cgNreHPgu-q5xeEEheWkRUjsIV6oAtKxyry2mOJj9v-bBzYMD9z3Wsj6N5zjq5_Yer0V1PbbALiFCS11lerWsFdpIxs4ysHQW1IuE1lTItGoTqbVPL0MLGF3_jxPob86p8OoFTZw9N_GkrI-C3hK1hLjJn0kfe2SZIov0/w400-h284/KINGFISHER%202021%20reporting%20methodology%20p3.png" width="400" /></a></div><br /><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b style="color: red;">8: Materiality + Materiality </b></div><div style="text-align: justify;">Double materiality, or impact materiality <b>and</b> (sustainability-related) financial materiality, seems to be the way to go. Makes sense. Most of us want to know how a business is affecting our lives and the world (impact materiality) while the financial and investor community need to know how life and the world are affecting the business in order to evaluate investment risk. The material thing about materiality is that there is no universal methodology to define and prioritize sustainability impacts on and of the business. Many companies reference "importance to the company" or "significance to stakeholders" without actually defining what this actually means. Does importance to the business mean social license to operate or does it mean profitability? Does significance to stakeholders mean the issue is directly affecting them or that their general opinion is that the topic is important? Either way, companies should DEFINE what materiality means in their context and how they assess topics as material. In many cases, the process goes something like: "<i>We created a universe of topics from a range of sources, we analyzed them with input from internal and external stakeholders and then selected the top 20 topics which were approved by the Board.</i>" This tells us nothing about the basis for analysis or prioritization. I believe there is an urgent need for a materiality assessment methodology to create a certain consistency in defining material topics. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">My approach to double materiality is to first create a list of potential impact areas, drawing from internal and external sources, and, after due analysis and discussion, assign an impact level to each, based on criteria that include business strategy, scale, scope and long-term effects of each impact. The result is a list of impact material topics. To determine sustainability-related financial materiality, the start point is the list of impact material topics, which is analyzed using additional criteria to assess the impact of the topic on the company's long-term profitability and overall success. Both these outputs deliver a single list of material topics, where some topics are material from an impact and a financial standpoint while the rest are material from an impact standpoint only. There are no financially material topics that are not material from an impact standpoint - if there were, these would be part of the financial disclosures, not sustainability disclosures. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">A good example of this is from Sri Lankan <a href="https://talawakelleteas.com/content/annualReport/2021-22.pdf" target="_blank">Talakawelle Tea Estates in their Annual Report 2021/2022</a>.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiJTsoGN3b1PI0dkPZsybIllRJpXK0f31Ft9bSWEs-L_5UmUjC93yUlXlaplgfS00pBWfFSIM3H8CenWPuleheEgCgktES0THfvpEBNpFn7mL_rPnsWpJa4bZShppRV2GGaItBf7-ma4V6sSnLwDUDhrBXjHoYUjvZ1vuUxc4l1vXhCoPCCUiY3zbNR/s1843/TALAWAKELLE21%20matmax.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1843" data-original-width="1461" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiJTsoGN3b1PI0dkPZsybIllRJpXK0f31Ft9bSWEs-L_5UmUjC93yUlXlaplgfS00pBWfFSIM3H8CenWPuleheEgCgktES0THfvpEBNpFn7mL_rPnsWpJa4bZShppRV2GGaItBf7-ma4V6sSnLwDUDhrBXjHoYUjvZ1vuUxc4l1vXhCoPCCUiY3zbNR/w318-h400/TALAWAKELLE21%20matmax.png" width="318" /></a></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: justify;">Sustainability topics are assessed from both an impact and financial standpoint and all topics above a certain threshold are discussed in the Annual (and sustainability) Reports. Each topic is also correlated with risks and opportunities and explanations of how each topic was assessed in terms or risk or opportunity is described in detail. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhYp9Z5uz0myaI2RIb_Jf3ZTzlkr-KZXXMvatPCWLFlY426eJzJkZkMg-ee_vEltAuEmSICLYxbcC0Rl3AWnItqBC_6QORqrilUDXlvtChaD0aO_3hsCACI4JIxQkTmiiHvWBAhdYXGQEwXt_HuXxJkjrwD9FEWWrhffKKQCXYrNbI1YVucKC7SblMm/s1738/TALAWAKELLE21%20risk%20%20.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1738" data-original-width="1432" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhYp9Z5uz0myaI2RIb_Jf3ZTzlkr-KZXXMvatPCWLFlY426eJzJkZkMg-ee_vEltAuEmSICLYxbcC0Rl3AWnItqBC_6QORqrilUDXlvtChaD0aO_3hsCACI4JIxQkTmiiHvWBAhdYXGQEwXt_HuXxJkjrwD9FEWWrhffKKQCXYrNbI1YVucKC7SblMm/w330-h400/TALAWAKELLE21%20risk%20%20.png" width="330" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj1u81mJsEjNJGfQjGz9MDENu9Dz3syYbYS7bGK_xnuKa6XYD6YR_eB-ve_yLX0RkMRuFSHI7Yw1hflFj7OuMTxPi_C9tbi5T-EkEK5ZKR3Y8gk2ya67IZ0EQITSzBqtKb0R9-X3bI1CsIyf2cxuyB2hW_fhCh_5QUoaWIyaOGZ75Q3FeycRtl29611/s1726/TALAWAKELLE21%20risk%20opportunity.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1726" data-original-width="1482" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj1u81mJsEjNJGfQjGz9MDENu9Dz3syYbYS7bGK_xnuKa6XYD6YR_eB-ve_yLX0RkMRuFSHI7Yw1hflFj7OuMTxPi_C9tbi5T-EkEK5ZKR3Y8gk2ya67IZ0EQITSzBqtKb0R9-X3bI1CsIyf2cxuyB2hW_fhCh_5QUoaWIyaOGZ75Q3FeycRtl29611/w344-h400/TALAWAKELLE21%20risk%20opportunity.png" width="344" /></a></div><br /><div class="separator" style="clear: both; text-align: left;">As methodologies go, this seems good to me. (N.B. I first saw this type of double-materiality approach used by <a href="https://www.enel.com/content/dam/enel-com/documenti/investitori/sostenibilita/2021/sustainability-report_2021.pdf" target="_blank">Enel's 2021 Sustainability Report</a> (p38). That's worth a look too, including a detailed description of how they did it). </div></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Here is another option from <a href="https://www.westpac.com.au/content/dam/public/wbc/documents/pdf/aw/sustainability/2022_Sustainability_Supplement.pdf" target="_blank">Westpac Group's 2022 Sustainability Supplement</a>. It's a list with a few icons carefully positioned for visual interest. What I like about this is that it splits the material topics into two parts - those that are primarily impact materiality, and those that also have a sustainability-related financial materiality element and are therefore included in the Westpac Annual Report (although not necessarily financially material from a corporate accounting standpoint). This is also a clear double materiality approach. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgC6f-vQkECkoSBIjZvUFW8CaZztTxxrvpONNqpAZZDbgd4kq3QW3apf6yKsWRylqj2cSZYt4Me-zp00lYpgKPyEg4Lu-7BrDhZnMLMItxL4tHV-yP5wAzfbWvMjhiR2aCcRFF8E_u650xbmMEE-mOEDaFO0FhpqnlLP6flzvO7Ql7acFkqbN0mhwGZ/s1285/westpac22%20MATISS.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1285" data-original-width="996" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgC6f-vQkECkoSBIjZvUFW8CaZztTxxrvpONNqpAZZDbgd4kq3QW3apf6yKsWRylqj2cSZYt4Me-zp00lYpgKPyEg4Lu-7BrDhZnMLMItxL4tHV-yP5wAzfbWvMjhiR2aCcRFF8E_u650xbmMEE-mOEDaFO0FhpqnlLP6flzvO7Ql7acFkqbN0mhwGZ/w310-h400/westpac22%20MATISS.png" width="310" /></a></div><br /></div><div style="text-align: justify;"><span style="color: red;"><b>9. Ditch The Mystery Matrix</b></span> </div><div style="text-align: justify;">There have been multiple debates about the materiality matrix over the years, and <a href="http://csr-reporting.blogspot.com/2014/12/why-materiality-matrix-is-useless.html" target="_blank">I have always maintained</a> that it's a misleading, distracting and time-wasting visualization of materiality prioritization. We need to know which topics a company considers material from an impact and/or a sustainability-financial standpoint. From my perspective, if it's material, it's material. Period. I don't think we need to mess around with shades of materiality...high materiality, low materiality, average materiality.... what difference do these labels make in terms of management attention, resource allocation, due diligence? All material topics should be assigned the level of resource required to address the need, the relative priority is superfluous to requirements. Typically, when faced with lots of dots on a matrix, I look to see which are the top topics (top right) and which are the bottom (bottom left). I then always find myself wondering why the bottom left topics are actually ranked so low by comparison to the ones ranked so high. It's mostly a big mystery. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">There are as many ways of presenting a materiality matrix as there are companies who publish them. But even disregarding the visual creativity, the force-fitting of dots or topics on a matrix is even more mysterious. Check this one out:</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj3VRid4Qx4F3DkyMSbDZZtOgBosePr_FRTlROwrexkdU-bfTYQ2Q3Aq4kFtocnoPlGA5TwCVl14nMoOc8wabonyDW-ERPrOMEXQCrc1M1E_4NCq2ix1LTeGP-ErWFN5JuYAT2nsWB_nDtHNWfGI1Hy7HPx_TX9PTBVQE04nr8j5LjTY6xNBPIQvdpS/s1608/BANK%20NAGARA%202021%20matmax.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="879" data-original-width="1608" height="219" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj3VRid4Qx4F3DkyMSbDZZtOgBosePr_FRTlROwrexkdU-bfTYQ2Q3Aq4kFtocnoPlGA5TwCVl14nMoOc8wabonyDW-ERPrOMEXQCrc1M1E_4NCq2ix1LTeGP-ErWFN5JuYAT2nsWB_nDtHNWfGI1Hy7HPx_TX9PTBVQE04nr8j5LjTY6xNBPIQvdpS/w400-h219/BANK%20NAGARA%202021%20matmax.png" width="400" /></a></div>What's the point of having a matrix if all your topics are in one box? Why have 9 boxes when two will do?</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Here's a similar unmatrix from <a href="https://www.mondelezinternational.com/-/media/Mondelez/Snacking-Made-Right/SMR-Report/2021/2021-MDLZ-Snacking-Made-Right-ESG-Report.pdf" target="_blank">Mondelez 2021 ESG Report</a>. Why use a matrix representation for four equally prioritized material topics? </div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjeY3SOJbwh5me48ejk19pgIKrW6UKzpCy-Sq7qqe8iRWdppoO75g7Gx6yrH-_Bem71SyxL6BYd3udFS234Yen4DUT-hAqMC0sdffm0lXYSQ9Gr2xiJPW85EptogI7kNZiA_H-jdL9F5cR69YtbOQYrNFRBmsqA3opposM0E4qRcM_-hFI3p6QiM77_/s1384/MONDELEZ21%20MATMAX.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1318" data-original-width="1384" height="381" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjeY3SOJbwh5me48ejk19pgIKrW6UKzpCy-Sq7qqe8iRWdppoO75g7Gx6yrH-_Bem71SyxL6BYd3udFS234Yen4DUT-hAqMC0sdffm0lXYSQ9Gr2xiJPW85EptogI7kNZiA_H-jdL9F5cR69YtbOQYrNFRBmsqA3opposM0E4qRcM_-hFI3p6QiM77_/w400-h381/MONDELEZ21%20MATMAX.png" width="400" /></a></div><br /><div style="text-align: justify;"><br /></div><div style="text-align: justify;">On the other hand, if some visualization is needed because you have several issues and a simple list might be rather long, there are other options. This one from <a href="https://www.marvell.com/content/dam/marvell/en/company/assets/marvell-esg-report-fy22.pdf" target="_blank">Marvell's 2022 ESG Report</a> is clear enough.</div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg9M7uaIodkPPqSN3YByE9P9pOlEzF-3jv912ZSXEsfa5XAk4oyES_3ikNIQQKibsRPIsOomtCFyztmWtANjaYMRf7LQz5pyMKFNh1uL_lgNbH0nm4r5I3HmPsSnNH8L88Wr-i8qsNZ-kIQhvEv7sTjyqu7Fq538zgXVUSyd5GMqZjtHlSDjLAPBx1Y/s1024/MARVELL22%20MATMAX.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="942" data-original-width="1024" height="368" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg9M7uaIodkPPqSN3YByE9P9pOlEzF-3jv912ZSXEsfa5XAk4oyES_3ikNIQQKibsRPIsOomtCFyztmWtANjaYMRf7LQz5pyMKFNh1uL_lgNbH0nm4r5I3HmPsSnNH8L88Wr-i8qsNZ-kIQhvEv7sTjyqu7Fq538zgXVUSyd5GMqZjtHlSDjLAPBx1Y/w400-h368/MARVELL22%20MATMAX.png" width="400" /></a></div><br /><div style="text-align: justify;"> </div><div style="text-align: justify;"><span style="color: red;"><b>10. If it's Material, Write About It</b></span></div><div style="text-align: justify;">This might be obvious to many, but if you have identified a topic as material in your materiality mystery matrix or list of material topics, then please include content about it in the body of the report. Too many times the list of material topics seems like a garnish on the side of the plate, and not the actual main course. How would you like it if you went to a restaurant and ordered spaghetti bolognese and all you got was spaghetti? Ideally, you should help your report users find your material content. Here's a good example from <a href="https://csr.asus.com/english/file/ASUS_Detailed_2021_EN.pdf" target="_blank">Asus's 2021 Sustainability Report </a>that shows the description of each material topic and the chapter of the report in which the topic is discussed.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgGGjZ_oNlnEU-kmsYQNPWVVKpZGQAzMaTX_eTMSgkg4nelLTY-moUvqLFGIjaPzuJJr_AgTOQKR8-iXBqyiYp3qOMbUrcG3gMefSLCWxy8vQxV5MNQLrAIoa1R9Wzudj42B5eQnd1SF0J-16LN7_mqa0jMEaeuaHQL8hRtgDhrFR3ehsltEzYF-xHA/s2398/ASUS21%20materiality%20links.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1056" data-original-width="2398" height="176" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgGGjZ_oNlnEU-kmsYQNPWVVKpZGQAzMaTX_eTMSgkg4nelLTY-moUvqLFGIjaPzuJJr_AgTOQKR8-iXBqyiYp3qOMbUrcG3gMefSLCWxy8vQxV5MNQLrAIoa1R9Wzudj42B5eQnd1SF0J-16LN7_mqa0jMEaeuaHQL8hRtgDhrFR3ehsltEzYF-xHA/w400-h176/ASUS21%20materiality%20links.png" width="400" /></a></div><br /><b style="color: red;">11: Focus on the Delta - Invest in a Policy Bank</b></div><div style="text-align: justify;">Annual sustainability reporting should concern itself with what I call the delta - the difference you made in the reporting year, i.e. actual actions and progress made. All the management approach and policy type disclosures are what I call evergreen, and do not need to be / should not be repeated every year. As an essential part of disclosure, however, they can live their evergreen life on the company website as reference documents for those who need them, with occasional updates when a policy changes. Eliminating this blurb from your annual report saves time and space and enables your report to be compact and focused and yes, useful. I am seeing companies do more of this these days. Here are a few:</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><a href="https://www.jnj.com/about-jnj/policies-and-positions" target="_blank">Johnson & Johnson ESG Policies and Positions</a> </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><a href="https://www.caesars.com/corporate-social-responsibility/policies-and-positions" target="_blank">Caesars Entertainment Public Policies and Positions</a></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><a href="https://www.tescoplc.com/sustainability/reporting-hub/?tabId=policies#items" target="_blank">Tesco plc Group Policies</a> </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><a href="https://www.dell.com/en-us/dt/corporate/social-impact/esg-resources/policies-positions.htm" target="_blank">Dell Policies, Positions and Guidelines</a></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><a href="https://www.oracle.com/a/ocom/docs/corporate/citizenship/oracle-policy-positions.pdf" target="_blank">Oracle Policy Positions</a> - this is a single downloadable PDF with a set of positions, rather than single items on a website</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><span style="font-size: x-small;"><b>(Disclosure: I count Johnson & Johnson and Caesars Entertainment as valued clients and assisted in development of their policy banks.)</b></span></div><div style="text-align: justify;"> </div><div style="text-align: justify;"><span style="color: red;"><b>12. Scope 3 is IN</b></span></div><div style="text-align: justify;">If you haven't started to grapple with your Scope 3 emissions yet, now's the time. Scope 3 is buzzing and will be included in new (likely regulated) sustainability reporting standards going forward, requiring disclosure by Scope 3 component categories. Many companies are doing this well today, and those who disclose to CDP have generally considered this and created the relevant connections and reporting processes. Scope 3 is awkward of course because it relies on the collaboration of suppliers and other value chain players to collaborate in providing data. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><a href="https://query.prod.cms.rt.microsoft.com/cms/api/am/binary/RE4RwfV" target="_blank">Microsoft's 2021 Environmental Sustainability Report</a> reports Scope 3 in detail and is super-informative about the ways it addresses Scope 3 management and disclosure.</div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhRrOdaL-B61DLHw4Ekg8jHcY-O8fhLGBQZkm-W2ontWpvPWlKnAGFTQlDYLOSwYZ0k2t9-SzNj2fB8QPpKqGc4jTfhNzRqvm8FDftDv8XM8xXc6b2Qadm9RAie-HYA_GF35WMDh6WoKK1SrLC5yGbdmL2NIRWif0JLugB3ZQStbmxWz4P7lEo3BESU/s1284/MICROSOFT21%20Scope%203.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="921" data-original-width="1284" height="288" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhRrOdaL-B61DLHw4Ekg8jHcY-O8fhLGBQZkm-W2ontWpvPWlKnAGFTQlDYLOSwYZ0k2t9-SzNj2fB8QPpKqGc4jTfhNzRqvm8FDftDv8XM8xXc6b2Qadm9RAie-HYA_GF35WMDh6WoKK1SrLC5yGbdmL2NIRWif0JLugB3ZQStbmxWz4P7lEo3BESU/w400-h288/MICROSOFT21%20Scope%203.png" width="400" /></a></div><br /><div style="text-align: justify;"><span style="color: red;"><b>13. Assurance is IN</b></span></div><div style="text-align: justify;">And you are probably also aware that third-party assurance of sustainability disclosures is now becoming a must-have. Building confidence in reported data is seen as a critical building block of trust and credibility in reporting. That's not to say that assurance always catches every glitch, but it introduces a robustness to the reporting process that is advantageous to companies, whether it's required by law or not. Limited assurance or reasonable assurance, of part or all information will definitely be part of the new game plan for ISSB and CSRD going forward, and U.S. SEC disclosure requirements on climate will also likely be subject to some form of assurance. Better get ahead of the game with some external verification in the next reporting cycle, because, in my experience, if you have never ever externally assured your sustainability information, the first time will be a heavy lift, and maybe the source of a few not-so-nice surprises. Good to iron out the creases before you have to disclose them. </div><div style="text-align: justify;"> </div><div style="text-align: justify;"><b><span style="color: red;">14. Ice Cream is IN</span></b></div><div style="text-align: justify;">Do not even attempt to start preparing your next sustainability report without a freezer stocked with ice cream. Believe me, it's essential. I am actually dismayed that ice cream does not feature anywhere in the new ISSB or CSRD standard proposals. As a minimum, Maintaining a Continuous Ice Cream Supply should be a core reporting principle.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b><span style="color: red;">15. SDGs are More than Icons</span></b></div><div style="text-align: justify;">It's almost not a sustainability report if it doesn't contain a selection of SDG icons, the most overused icons in the history of reporting. These days, every ESG strategy, every sustainability aspiration, every community case study and almost every second paragraph has an SDG icon or several in close proximity. Apparently we will respect your sustainability performance more if it's SDG iconized. That might have been the case when the SDGs were all new and shiny back in 2015. Now, it's SDG-wash. Unless you can be explicit about the SDG targets you are directly contributing to, it's probably not worth the extra ink. If your company truly endorses the SDGs as a strategy and not as an afterthought or a PR pickup, you will disclose how you are contributing to advancing which SDG targets with some specificity. General stuff like "We occasionally donate to food banks" is not a meaningful response to SDG 2 Zero hunger. Setting a target to increase women in management is not quite enough to advance SDG 10 Reduced Inequalities. These actions may be in the right ball park but it's like telling the taxi driver to take you to Arizona when your actual destination is Big Looney's Ice Cream Truck on Ruby Way in Cottonwood, Arizona. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Here's an example from <a href="https://investors.capgemini.com/en/publication/2021-22-environmental-sustainability-report/" target="_blank">Capgemini's 2021-2022 Environmental Sustainability Performance Report</a> - explicit actions to support SDG targets. </div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgbGYYm0PstDflack7zJZCORLJhDnNUkeVRgqwAr4BbylBcuDuuv3nT-gcFuXYMZevv8UyhnQqFe-QKKlt35p7nmxJFUP8W7w11jcWk3ASe34AmggmcbcuiP-eokm8pUCki-ki_p3N9w5Lj_XxElv9L0eVmzhde4fOWjE6eI9qxXvUzR1VsX0ypXVgq/s3181/CAPGEMINI%202021%202022%20SDG.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1642" data-original-width="3181" height="206" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgbGYYm0PstDflack7zJZCORLJhDnNUkeVRgqwAr4BbylBcuDuuv3nT-gcFuXYMZevv8UyhnQqFe-QKKlt35p7nmxJFUP8W7w11jcWk3ASe34AmggmcbcuiP-eokm8pUCki-ki_p3N9w5Lj_XxElv9L0eVmzhde4fOWjE6eI9qxXvUzR1VsX0ypXVgq/w400-h206/CAPGEMINI%202021%202022%20SDG.png" width="400" /></a></div><br /><div style="text-align: justify;">The <a href="https://www.hongkongairport.com/iwov-resources/file/sustainability/sustainability-report/AA_Sustainability_Report_202122_ENG.pdf" target="_blank">Airport Authority Hong Kong's 2021/2022 Sustainability Report</a> does a similar job, with several targets for each priority SDG.</div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhsjzHu-Klmom5VVVoEzf5rcyynL2P8nlShyA4OHa11jiQaWnU4nY00Z5QBeA57-8XAkcIZ8LmkSBKXBaK8GaqHX57lABnH-YPq_VMdH7dd8UqAh-IwlybA0oF9O3lMUJiLTW8Q_lsIbOARS9QotnYnCyQ_537IxheaL_Si18YSFhhS3LAKgp2cjC76/s2296/HONG%20KONG%20AIRPORT%202022%202022%20SDG.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1000" data-original-width="2296" height="174" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhsjzHu-Klmom5VVVoEzf5rcyynL2P8nlShyA4OHa11jiQaWnU4nY00Z5QBeA57-8XAkcIZ8LmkSBKXBaK8GaqHX57lABnH-YPq_VMdH7dd8UqAh-IwlybA0oF9O3lMUJiLTW8Q_lsIbOARS9QotnYnCyQ_537IxheaL_Si18YSFhhS3LAKgp2cjC76/w400-h174/HONG%20KONG%20AIRPORT%202022%202022%20SDG.png" width="400" /></a></div><br /><div style="text-align: justify;"><b><span style="color: red;">16. Design for Use</span></b></div><div style="text-align: justify;">I recently posted about <a href="http://csr-reporting.blogspot.com/2022/10/five-examples-of-beauty-in-reporting.html" target="_blank">report design</a> (what works well, what to avoid) so I won't reproduce all of that here. Let me just stress one point. PDFs are read online. ONLINE. No one prints reports. We read them on screen. That means they must be suitable for on screen reading. Logical, right? Cue: NAVIGATION TOOLS. We need a way of moving around the report quickly and efficiently without having to CNTRL+HOME to get to the contents page every time we want to find something. Believe me, having reviewed more than 130 reports in two reporting award competitions in the past couple of months, the amount of time I wasted clicking back and forth in unnavigable reports probably amounted to longer than it takes me to binge watch 18 seasons of Grey's Anatomy. There are so many easy navigation tools available to report designers from hyperlinked side or top menus to a navigation tool bar that has home, forward and back buttons and any other number of alternatives. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><a href="https://www.hankooktire.com/wsvc/api/pdf-viewer/document.servlet?documentPath=/content/dam/hankooktire/global/pdf/esg/esg_esg%EB%B3%B4%EA%B3%A0%EC%84%9C/eng/2021-22_ESG_ENG.pdf" target="_blank">Hankook Tire and Technology's ESG Report 2021 2022</a> is easy to navigate. There is an unintrusive top menu that gets you back home and to any main chapter, and sections within each chapter are hyperlinked on each section lead page.</div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjiwsM1ijhKZnDOsIs1Kvj1kyXlOAbMR5R9QcFaD_CBFDlCZ7Zp49L8oogmp9oMsn-sc9uxl-mSL9xtQySmDkLNoCt6pObqGtRysIej1bSfdfx29FkGHXklAPHViUBnVhiTbt9t5bO0o3ajbt6uPd6Co05_SyFp-gB1qmESR1lnso2GGO-nvNiczmJC/s2293/HANKOOK%20TIRE%202021%202022%20navigation.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1284" data-original-width="2293" height="224" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjiwsM1ijhKZnDOsIs1Kvj1kyXlOAbMR5R9QcFaD_CBFDlCZ7Zp49L8oogmp9oMsn-sc9uxl-mSL9xtQySmDkLNoCt6pObqGtRysIej1bSfdfx29FkGHXklAPHViUBnVhiTbt9t5bO0o3ajbt6uPd6Co05_SyFp-gB1qmESR1lnso2GGO-nvNiczmJC/w400-h224/HANKOOK%20TIRE%202021%202022%20navigation.png" width="400" /></a></div><br /><div style="text-align: justify;"><b><span style="color: red;">17. Out Your Board </span></b></div><div style="text-align: justify;">As a graduate of the <a href="https://competentboards.com/programs/esg-certificate-program/" target="_blank">ESG Competent Boards Certificate Program</a> (Business Professionals cohort, 2021), I am now keenly aware of the role of the Board of Directors in guiding corporate sustainability practice. I have also read <a href="https://competentboards.com/stewards-of-the-future/" target="_blank">Helle Bank Jorgensen's book, Stewards of the Future</a>, that also reinforces the critical role that company directors play in guiding company's to address ESG challenges. Therefore, I look for evidence of the Board's impact and engagement in sustainability practice as I read sustainability reports. Occasionally the Chair of the Board may make opening remarks, in addition to the CEO (or sometimes one letter with two signoffs). Occasionally Board members are quoted. Even more rarely is there a picture of the Board or any additional insight from directors. I think this is an opportunity. Why not bring your Board out of anonymity in your Sustainability Report and let us see how engaged they truly are. Of course they are, right? </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Here's a nice Board Statement in <a href="https://ir-media.wilmar-international.com/app/uploads/2022/05/Wilmar-SR-2021.pdf" target="_blank">Wilmar's 2021 Sustainability Report</a>.</div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgKX5zvjUP2yPImr29jahPQZ7UpVrCGoS7WxVsYwBYRIHm13vTkyVByZJwlQ67kMHbQtEtxI_3CtW1Q4hnqUlGPIMma-MW0mAQSUu4j7TMguUE7S_omB-UhrpM_a9RVgxg1CgPnGXHSFbbKD73gmNYwhlBQREdViGaYzo48MHjMBRmUJS748t4mJXvN/s2649/WILMAR2021%20BOARD%20STATEMENT.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1849" data-original-width="2649" height="279" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgKX5zvjUP2yPImr29jahPQZ7UpVrCGoS7WxVsYwBYRIHm13vTkyVByZJwlQ67kMHbQtEtxI_3CtW1Q4hnqUlGPIMma-MW0mAQSUu4j7TMguUE7S_omB-UhrpM_a9RVgxg1CgPnGXHSFbbKD73gmNYwhlBQREdViGaYzo48MHjMBRmUJS748t4mJXvN/w400-h279/WILMAR2021%20BOARD%20STATEMENT.png" width="400" /></a></div><br /><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b><span style="color: red;">18. Highlight the Highlights</span></b></div><div style="text-align: justify;">Reports are big chunky things that contain lots of information. Some companies publish Executive Summaries or short report versions for those who want the headlines without all the headaches. But even shorter than that, a highlights page in the early part of your report is a good way to get a few key messages across for those whose attention span is about 1 minute. It's also a good cheat-sheet for employees to use through the year in their interactions with their different contacts. Highlights pages come in many shapes and formats. Here's a few:</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><br /></div><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto;"><tbody><tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiZTBVn42K3mn1Jo-xpxjaMVbZ-n_7M7a80xCgersl36VM-H7zFn0w4tyUj3Ok8lHukHbb3g2eLFuoHVS5cyajDI7ih4laKAYrn6h0-WY3_hXTqNITbmMi-5JB4en9uuer3bSsYZQC3zfTnTQYJVyi1gt3OwXC49Qn1L-auEVSmrh-VlEiNookyNZPB/s2932/HOME%20DEPOT%202022%20HIGHLIGHTS.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1894" data-original-width="2932" height="259" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiZTBVn42K3mn1Jo-xpxjaMVbZ-n_7M7a80xCgersl36VM-H7zFn0w4tyUj3Ok8lHukHbb3g2eLFuoHVS5cyajDI7ih4laKAYrn6h0-WY3_hXTqNITbmMi-5JB4en9uuer3bSsYZQC3zfTnTQYJVyi1gt3OwXC49Qn1L-auEVSmrh-VlEiNookyNZPB/w400-h259/HOME%20DEPOT%202022%20HIGHLIGHTS.png" width="400" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;"><span style="font-size: x-small;">Home Depot 2022 ESG Report</span></td></tr></tbody></table><br /><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto;"><tbody><tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEheqwYF7i_vReyhIStCbp-w_vKERegQ94nSgp44v78KuwI5ZO3-2YmqIb-lnF3vfmQpN1_M2x6E00JWgHjinvAsc0Yvg6AbSZP-ndDZeXrdX9kY2LwJoXH6Og5LeRsyeGKTPYn5ftjjDfxy1Sv9q88yvKgLUr-n0-sbTC9FWt9K4yU4dP4ZEe4_dv6X/s2491/KROGER%202022%20HIGHLIGHTS.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1351" data-original-width="2491" height="217" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEheqwYF7i_vReyhIStCbp-w_vKERegQ94nSgp44v78KuwI5ZO3-2YmqIb-lnF3vfmQpN1_M2x6E00JWgHjinvAsc0Yvg6AbSZP-ndDZeXrdX9kY2LwJoXH6Og5LeRsyeGKTPYn5ftjjDfxy1Sv9q88yvKgLUr-n0-sbTC9FWt9K4yU4dP4ZEe4_dv6X/w400-h217/KROGER%202022%20HIGHLIGHTS.png" width="400" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;"><span style="font-size: x-small;">Kroger 2022 ESG Report</span></td></tr></tbody></table><br /><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto;"><tbody><tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiwVAJH2c8ocOxNOyMhsd9RT6qWYkx_Lk_VXue4rzCiOXUdLCLUkWBKmr-z58pBYFKKF-F8MI2J8QTi3tm5kM-QfQjRSd43AVbkQmcrsbAoZVN9pVdYEvYMKFtlr5ZY6cOWqA7IUEigfzmHAp5NL6pkP-iALiklY6i00Mz90g3wU3GtqcDSRbXpanbw/s3261/CHINA%20LIFE%202021%20HIGHLIGHTS.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1899" data-original-width="3261" height="233" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiwVAJH2c8ocOxNOyMhsd9RT6qWYkx_Lk_VXue4rzCiOXUdLCLUkWBKmr-z58pBYFKKF-F8MI2J8QTi3tm5kM-QfQjRSd43AVbkQmcrsbAoZVN9pVdYEvYMKFtlr5ZY6cOWqA7IUEigfzmHAp5NL6pkP-iALiklY6i00Mz90g3wU3GtqcDSRbXpanbw/w400-h233/CHINA%20LIFE%202021%20HIGHLIGHTS.png" width="400" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;"><span style="font-size: x-small;">China Life Insurance 2021 Sustainability Report</span></td></tr></tbody></table><br /><div style="text-align: justify;"><br /></div><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto;"><tbody><tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi8a0JD_iw5ZvppLcNuBA-f2I-fSlynVTECHQXEynmkwS0jonksWgXHO3Ei96kwtBNlGxUniinWX72Q-8sfwH9QRoeHPCl4Kv6PhkB8icN8l-lv98_eU6SyQIpzPSjGs7C7hDZ3anTKw0VgIXIHIQqRNP2loq4JZUey565YbIXaFhz9WZMSMX8qgKux/s1549/MAJID%20AL%20FUTTAIM%20ESG%20REPORT%202021.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1549" data-original-width="1177" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi8a0JD_iw5ZvppLcNuBA-f2I-fSlynVTECHQXEynmkwS0jonksWgXHO3Ei96kwtBNlGxUniinWX72Q-8sfwH9QRoeHPCl4Kv6PhkB8icN8l-lv98_eU6SyQIpzPSjGs7C7hDZ3anTKw0VgIXIHIQqRNP2loq4JZUey565YbIXaFhz9WZMSMX8qgKux/w304-h400/MAJID%20AL%20FUTTAIM%20ESG%20REPORT%202021.png" width="304" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;"><span style="font-size: x-small;">Majid Al Futtaim ESG Report 2021 </span></td></tr></tbody></table><br /><div style="text-align: justify;"><b><span style="color: red;">19. Check out ReportAdviser</span></b></div><div style="text-align: justify;">I recently agreed to become an Ambassador for <a href="https://reportadviser.com/" target="_blank">ReportAdviser</a>, a useful reporting hub for professionals that brings sustainability disclosure guidance from multiple reporting standards and frameworks with reporting examples and explanations in one place. With GRI, SASB, NFRD, TCFD, ISO 26000, S&P's CSA, SDG and sector guidance materials, it's a quick reference guide that can be extremely helpful for reporters needing to check out reporting needs or benchmarking reporting examples without having to trawl through different websites and endless pages of reporting standards. There is also an ESG Data Search that enables you to input any search term and find related reporting examples. I input the term ice cream and got page examples of several sustainability reports mentioning ice cream. YAY! As the sustainability landscape is constantly changing, so ReportAdviser is continuously updating its database and guidance. Worth checking out!</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b><span style="color: red;">20. Don't Be Late</span></b></div><div style="text-align: justify;">The average time for publication of a sustainability report from the end of the reporting period is 3.4 months, according to <a href="https://www.wbcsd.org/Programs/Redefining-Value/Reporting-matters/Resources/RM2022" target="_blank">WBCSD's 2022 Reporting Matters</a>, now in its 10th anniversary edition. This is down from a six months average as per the very first Reporting Matters in 2013. In the past few years, report publication date within three months of the reporting period has been steadily increasing.</div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiw62OmBiGQfSdmzQExocTVQ0Wb1EWyHWKppQ5_CgVT_U4kyoRRJoCgdL7cY2u4Orm8cEKpnoi2i22diNMSffLB090KvceMoO63vFdlb2PLrCafHjM-D2cW9IV1SrEawBm5pMk0U4caBf45dQXYo6gQ-fpCqcZ77bFpPZOzUOG8DmiXrR6q7vfLxe5z/s1687/REPORTING%20MATTERS22%20%20TIME%20FRAME.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="526" data-original-width="1687" height="125" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiw62OmBiGQfSdmzQExocTVQ0Wb1EWyHWKppQ5_CgVT_U4kyoRRJoCgdL7cY2u4Orm8cEKpnoi2i22diNMSffLB090KvceMoO63vFdlb2PLrCafHjM-D2cW9IV1SrEawBm5pMk0U4caBf45dQXYo6gQ-fpCqcZ77bFpPZOzUOG8DmiXrR6q7vfLxe5z/w400-h125/REPORTING%20MATTERS22%20%20TIME%20FRAME.png" width="400" /></a></div><div style="text-align: justify;">With GRI 2021 Universal Standards now requiring a publication date to be disclosed in sustainability reports (Disclosure 2-3c), and general pressure to create more alignment between financial and sustainability disclosure timing, a long delay between the end of the reporting period and publication of the sustainability report is becoming rather uncomfortable. Sounds like being at the party is not enough. You have to get there on time.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b><span style="color: red;">21. 80% of Something is Better than 100% of Nothing</span></b></div><div style="text-align: justify;">While some may say it's important to strive for perfection, with about 160+ reporting projects under my belt, I feel justified in saying that perfection is a relative concept in sustainability reporting. It's practically impossible to satisfy everybody's demands and preferences in a single report that must meet multiple needs and disclosure requirements, even with the best of processes. In many cases, reporting managers must navigate demands from different parts of the organization, grapple with disclosures that many may prefer not to include, deal with delays in getting data, approvals, legal signoff, images and design work completed and a host of other challenges. Often there's a trade-off or two or twenty. So while there is no such thing as the perfect sustainability report, what there is is a published report that is the best that can be done under a unique set of circumstances in any company in any given year. It's part of a continuum of annual reporting that should keep improving. That's perfect enough for me. The idea is to embrace feedback / criticism / suggestions for the future and go at it again in the next cycle. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><span style="color: red;"><b>22: Make Your Report Work for You</b></span></div><div style="text-align: justify;">You hit publish. The report is out there. Phew! Now it's time for a well deserved rest. But is it? Maybe a day or two. Immediately thereafter, there are three things you should be doing:</div><div style="text-align: justify;"><ul><li>Thanking all the folks who collaborated and contributed</li><li>Starting the planning process for the next report</li><li>Driving the outreach and communications plan to ensure the report actually gets used.</li></ul></div><div style="text-align: justify;">Your sustainability report has a life of several months (assuming timely publication) during which you have an opportunity to use it in a targeted way to continue to build trust and positively influence your company's reputation. Raising awareness goes beyond a single email blast to employees and an external Press Release. Your report amplification plan (which should have been developed well before publication date) is an important part of the reporting process. Use the months post-publication to genuinely engage with employees and onboard them as willing ambassadors of your company's sustainability progress and transparency. Repackage messaging and stories from the sustainability report to different audiences to drive real conversations about what works and what doesn't. Link up with business schools teaching sustainability and offer to engage with students about your report, answer their questions and respond to their criticisms. There are many ways to benefit from bringing your report to life after publication. After such a significant investment in producing the report, why not get a little mileage? </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b><span style="color: red;">23: Surprise</span></b></div><div style="text-align: justify;">There is no 23. This post is long enough. I am amazed you even got to 23. But it is an opportunity to say Happy New Year! Have a fun and productive reporting season! </div><div style="text-align: justify;"><br /></div><div style="text-align: center;"><span style="font-size: large;">😉</span></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small;">e</span><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small;">laine cohen, </span><b style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small;">GCB.D</b><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small;">: </span><a href="https://competentboards.com/" style="color: blue; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small;" target="_blank">ESG Competent Boards Certified (2021)</a><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small;">, </span><b style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small;">Sustainability Strategy and Disclosure Specialist</b><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small;">, former HR Professional, Ice Cream Addict. Owner/Manager of </span><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: blue; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small;"><a href="http://www.b-yond.biz/" style="color: #0066cc;" target="_blank"><b>Beyond Business Ltd</b></a></span><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small;">, </span><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small;">an inspired Sustainability Strategy and Reporting firm having supported </span><b style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small;">>160 </b><a href="http://www.b-yond.biz/clients-reports" style="color: #0066cc; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small;" target="_blank"><span style="color: blue;"><b>client reports</b></span></a><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small;"> to date; </span><b style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small;">author </b><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small;">of </span><a href="http://www.b-yond.biz/our-books" style="color: #0066cc; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small;" target="_blank"><span style="color: blue;">three books and several chapters</span></a><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small;"> on Sustainability Reporting and the Human Resources connection to CSR; frequent </span><b style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small;">chair and speaker </b><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small;">at sustainability events and </span><b style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small;">judge</b><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small;"> in several sustainability awards programs each year. Contact me via </span><a href="http://www.twitter.com/elainecohen" style="color: #0066cc; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small;" target="_blank">Twitter</a><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small;"> , </span><a href="https://www.linkedin.com/in/elainecohen/" style="color: #0066cc; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small;" target="_blank"><span style="color: blue;">LinkedIn</span></a><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small;"> or via </span><a href="http://www.b-yond.biz/" style="color: #0066cc; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small;" target="_blank"><span style="color: blue;">Beyond Business</span></a></div>elainehttp://www.blogger.com/profile/07433863039389159395noreply@blogger.com0tag:blogger.com,1999:blog-8008724049496903547.post-83222294870724413792022-10-27T13:04:00.000+03:002022-10-27T13:04:43.783+03:00Five Examples of Beauty in Reporting<div style="text-align: justify;">At a time when everyone is focusing on standards, data and metrics, there’s another side to reporting that often gets overlooked: the graphic design of the report. While the content is the key, the design turns the key to make the content sing🎵. Inspired design makes content more accessible and appealing for those who actually want to read reports, rather than just mine the data. Beautiful reports are inspiring for employees as well attractive for all stakeholders. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">It's clear that some report designs are constrained by in-house branding guidelines that prescribe fonts, colors, shapes and even layouts, so most report designs don't start with a blank page. Even so, there may be some design touches that help liven up the content. The key elements of great report design (in PDF), in my view, include: </div><div><ul style="text-align: left;"><li style="text-align: justify;"><b>Pages that are pleasant to look at</b> – not too empty, not too crowded, with a clear focus for the eye as it rests on the page. The thing that stands out should be the thing that’s most important, not just some random callout factoid. </li><li style="text-align: justify;"><b>Consistent design language</b> – I like the design to have its own language throughout the report, creating a familiarity and sense of expectation as you read through it. Disjointed, disconnected imagery and random font sizes and colors drive me a bit crazy. </li><li style="text-align: justify;"><b>Clear tables and charts</b> - legible and consistent across the report. Clear headings. NOT ALL CAPITALS. Block capital print is hard to read. </li><li style="text-align: justify;"><b>Fonts</b> – rightsized fonts, not too many either. Three different font sizes at most. They should be legible at 100% on my screen. </li><li style="text-align: justify;"><b>Format</b> – horizontal PDFs seem to work best for me. The wider sizes offer more room to play with on the page. </li><li style="text-align: justify;"><b>Original photos</b> – not image banks with plastic people and Amazon views. Real photos of a real business make the report more credible. </li><li style="text-align: justify;"><b>Interesting design elements</b> - little splashes of color or illustrations or (careful) icons, that complement and provide a pleasant eye-tonic alongside the text. </li><li style="text-align: justify;"><b>Navigation navigation navigation.</b> I want to sail through the PDF, back and forth, section to section, with single clicks. The navigation needs to be accessible, easy to follow, intuitive, interactive. Navigation tools are useful too. Love a home button that takes you to the contents page. </li><li style="text-align: justify;"><b>Ice cream:</b> The more images of ice cream, the better.</li></ul></div><div style="text-align: justify;">Things I hate in report design: </div><div><ul style="text-align: left;"><li style="text-align: justify;">Text that is not horizontal. I have ruined two computer screens when they fell off my desk as I tilted them to read vertical text. Haha.</li><li style="text-align: justify;">An abundance of meaningless icons </li><li style="text-align: justify;">Massive fonts </li><li style="text-align: justify;">Photos of palms holding globes </li><li style="text-align: justify;">Images representing diversity that are clearly misrepresentative of the organization </li></ul></div><div style="text-align: justify;">Not all reports that I consider beautiful adopt these design preferences. But they are all beautiful in one way or another because of the colors, visuals, tasteful imagery or other design creatives that bring the narrative to life in an attractive and inspiring way. To me, this shows a level of care and thought in the way the report is presented that helps me believe the intentions of the reporting company. I realize this may not always be a logical correlation, but, in their own way, beautiful reports are inspiring. Here are a few to feast your eyes on (while you are feasting the rest of you on your favorite ice cream):</div><div><div><br /></div><div><h2 style="text-align: left;"><a href="https://romagroup.com/upload/pdf/esg//2022_ESG_E.pdf" target="_blank"><b>Roma Group 2021/2022 ESG Report </b></a></h2><div style="text-align: justify;">Roma Group is a privately-owned small-business valuation and technical advisory services firm in Hong Kong, employing around 60 people. This is the Group’s fifth ESG Report, it’s In Accordance with GRI Core Option and complies with the Hong Kong Stock Exchange ESG reporting rules. At 49 pages, it’s compact, focused and a delight to view. In fact, all Roma Group reports are beautifully designed – <a href="https://www.romagroup.com/article/index/en/esg-reports " target="_blank">take a look at them all</a>.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Roma Group reports have a few signature design approaches for all reports that I like very much. First, the design links to the annual report theme - for example, this year's theme is "The Pursuit of Sustainability". The report creative uses a camping trip to illustrate this theme. This demonstrates that the designer is not just laying out any old content on a page, but thinking creatively about how to reinforce the report messaging. </div><div> </div></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjAM6sdOyFyHKtxeSLkxmihEvvSiPLmQOr6K45VZib4KegWQv6pPqAfl1QbiMa49tHmDC2roTSbABzD55-tUHJV1aNfwrBybdHD3CeEKJTj0XgUkeZju5Cj-jtI0xjrRZYhCOG9cGggkt5NhvQ0sarGjep3mJ2AEspvHLAu79goSrzAupWEspO_Y9iV/s2680/ROMA22cover.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1895" data-original-width="2680" height="283" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjAM6sdOyFyHKtxeSLkxmihEvvSiPLmQOr6K45VZib4KegWQv6pPqAfl1QbiMa49tHmDC2roTSbABzD55-tUHJV1aNfwrBybdHD3CeEKJTj0XgUkeZju5Cj-jtI0xjrRZYhCOG9cGggkt5NhvQ0sarGjep3mJ2AEspvHLAu79goSrzAupWEspO_Y9iV/w400-h283/ROMA22cover.JPG" width="400" /></a></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div style="text-align: justify;">A second design approach is a creative top menu bar. Although not interactive (a Home button linking back to the contents page would make navigation easier), each report chapter has a unique top menu illustration. A menu is not just a menu - it's an opportunity for creativity. </div></div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgUN7MaIdnPlY6tQsG-BSLxrilZc5x77K3G7NyEI-UOKaqMM3QxBg0iuxvXY3rUAsAmdpdJ3ud0RgWekNE5JwcZFdvf4pXOa5dj1giMIMjNZCWkyB2riQak_HvgcfmkCn8BDIxcXtLSWa7_DeYOtIlQuZLhnlsltBVQf5Je8vq5yF9oXgBKkEyBFZnO/s2699/ROMA22%20MVV.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1905" data-original-width="2699" height="283" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgUN7MaIdnPlY6tQsG-BSLxrilZc5x77K3G7NyEI-UOKaqMM3QxBg0iuxvXY3rUAsAmdpdJ3ud0RgWekNE5JwcZFdvf4pXOa5dj1giMIMjNZCWkyB2riQak_HvgcfmkCn8BDIxcXtLSWa7_DeYOtIlQuZLhnlsltBVQf5Je8vq5yF9oXgBKkEyBFZnO/w400-h283/ROMA22%20MVV.JPG" width="400" /></a></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: justify;">A third element is the design of headings. A heading is also an opportunity for creativity. In the examples below, you can see how the paragraph subheadings are embellished with design elements that provide visual interest, especially on text-heavy pages. </div><div class="separator" style="clear: both; text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh5Mu7HEe7toIoRm-80Z2_bBet0BHfkmTS2ImHMXJxUCKqlt4nUvcRf43Nan9g5Tsaj1dJGmsNnULiuZ_pv3eQvuxy92LvX8TUxyT1s8Rf6mv2zv6LnIuSF7WGr97kYQ9aJ0a7qrQubSSkg2YnQKUG3HiFqc9eDV5pRF4NhI3vbyr0rp_Mw1O2IDJk8/s2710/ROMA22%20strategy.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1927" data-original-width="2710" height="285" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh5Mu7HEe7toIoRm-80Z2_bBet0BHfkmTS2ImHMXJxUCKqlt4nUvcRf43Nan9g5Tsaj1dJGmsNnULiuZ_pv3eQvuxy92LvX8TUxyT1s8Rf6mv2zv6LnIuSF7WGr97kYQ9aJ0a7qrQubSSkg2YnQKUG3HiFqc9eDV5pRF4NhI3vbyr0rp_Mw1O2IDJk8/w400-h285/ROMA22%20strategy.JPG" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiEUL3UBcPpaeRtAzbCNppx6eKA1uxai_dKX8xCNOGbMurqCkb4vBdvWZzQ_jEYpbYf-YZd79-A2EvmvsUUUEULs3GTV5GrMwFdobpsWmbT4BTgkCKF-9yNQRgbO7G4nU-RGZWQTzW55ghj5LI1SxjbiNrDnx9PDVnRGSvBFlGchrHPLNXUOkxvyLQO/s2716/ROMA22%20talent.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1912" data-original-width="2716" height="281" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiEUL3UBcPpaeRtAzbCNppx6eKA1uxai_dKX8xCNOGbMurqCkb4vBdvWZzQ_jEYpbYf-YZd79-A2EvmvsUUUEULs3GTV5GrMwFdobpsWmbT4BTgkCKF-9yNQRgbO7G4nU-RGZWQTzW55ghj5LI1SxjbiNrDnx9PDVnRGSvBFlGchrHPLNXUOkxvyLQO/w400-h281/ROMA22%20talent.JPG" width="400" /></a></div><div><br /></div>Finally, all tables are clearly presented, using a light touch of color to help differentiate different topics. Roma Group includes a GRI Content Index as well as a Hong Kong Exchange ESG Reporting Index.<div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh7o26woR3d33x4nyPGfXYYy7E5H7i3g0YQIWaYr5pSh1HtqrfFZZXnSkce592m6OCtmGFKEU_8DGfEePFOfEMwbt6jNvhqLl6XtK49aTNxttvOS3n-TFhCKNuSzRFewEtqmLk250L39ldMRYKJDCOqhg0HCY6qOpFtH0UHUbm8sgK-906yg79H6Qzw/s2716/ROMA22%20HKEX%20table.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1918" data-original-width="2716" height="283" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh7o26woR3d33x4nyPGfXYYy7E5H7i3g0YQIWaYr5pSh1HtqrfFZZXnSkce592m6OCtmGFKEU_8DGfEePFOfEMwbt6jNvhqLl6XtK49aTNxttvOS3n-TFhCKNuSzRFewEtqmLk250L39ldMRYKJDCOqhg0HCY6qOpFtH0UHUbm8sgK-906yg79H6Qzw/w400-h283/ROMA22%20HKEX%20table.JPG" width="400" /></a></div><br /><div>I award Roma Group my highest Ice Cream Accolade. Five cones. 🍦🍦🍦🍦🍦.</div><div><br /></div><h2 style="text-align: left;"><b><a href="https://investor.shotelsresorts.com/storage/sustainability-report/shr-sd-report-2021-en.pdf" target="_blank">S Hotels & Resorts Sustainable Development Report 2021</a></b></h2><div><div class="separator" style="clear: both; text-align: justify;">S Hotels & Resorts is a Thailand-based operator with 38 properties in some of the most beautiful locations in the world. No surprise then that the imagery in this report reflects the beauty of the views that visitors can enjoy while consuming their Thai ice creams.</div><br /><div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi5aE7oGlqYTBsw4JVnKrT6KNRQmW2UahSzXKn1O5wMZvzRDettnXqMZLO-eniIJd7ayIma_XdF1x5j5mxv3rz-LmO1PVtbhl3YIqZh1HM9vZTMgGAObQZGb3mGyqXkJ8rvHQcv_8WHUo2ycvt6Ogfr67GUf6zAWKKgC9_hUYC1cXECK_rdSCdayXN9/s1905/SHR21%20COVER.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1905" data-original-width="1470" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi5aE7oGlqYTBsw4JVnKrT6KNRQmW2UahSzXKn1O5wMZvzRDettnXqMZLO-eniIJd7ayIma_XdF1x5j5mxv3rz-LmO1PVtbhl3YIqZh1HM9vZTMgGAObQZGb3mGyqXkJ8rvHQcv_8WHUo2ycvt6Ogfr67GUf6zAWKKgC9_hUYC1cXECK_rdSCdayXN9/w309-h400/SHR21%20COVER.JPG" width="309" /></a></div><div style="text-align: justify;">Aside from the spectacular images, the design of this report includes thoughtful ocean-related illustrations on every page and small icon-type illustrations for callouts and highlights. The style complements the narrative and turns each page into a work of art, rather than simply words and paragraphs. Data tables are neatly drawn. Here are a few pages:</div></div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh-bie52_fHoix-BWXw3S4dVvwcWEJIFWNRoj7lRvzx9MWYRkgcF5B4U5GuGrugdH0v36-wE9yR_eGmvPgXaUPyXrQ350dUxBy0fzHe7225klRI7azW6n1K0fZ6Fk2r3HETfKlFeya60-1HapqZpNSnn8w2qRbmWiI7rQlJcLc3CQX5Jtrz40uIMbVn/s1817/SHR21%20fovernance.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1817" data-original-width="1407" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh-bie52_fHoix-BWXw3S4dVvwcWEJIFWNRoj7lRvzx9MWYRkgcF5B4U5GuGrugdH0v36-wE9yR_eGmvPgXaUPyXrQ350dUxBy0fzHe7225klRI7azW6n1K0fZ6Fk2r3HETfKlFeya60-1HapqZpNSnn8w2qRbmWiI7rQlJcLc3CQX5Jtrz40uIMbVn/w310-h400/SHR21%20fovernance.JPG" width="310" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiL-b_weh1nS3qe13ZQHczX_eHsbFToQpZ2sHjQrJyTcOVa2lOZ6_9GZ3Z7apSrP57Poe5RHFlcHHCwkxvi59XuC6ziQDV6O4nCRrrxATFiYQLnFaol4K2fhTRDAZt0LvYFRCxcit0hQXj9QbJRpsFU_EcpoeQcdWvoUA0TmBaVLj3farZ4HBXH9UHd/s1907/SHR21%20seaimage.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1907" data-original-width="1465" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiL-b_weh1nS3qe13ZQHczX_eHsbFToQpZ2sHjQrJyTcOVa2lOZ6_9GZ3Z7apSrP57Poe5RHFlcHHCwkxvi59XuC6ziQDV6O4nCRrrxATFiYQLnFaol4K2fhTRDAZt0LvYFRCxcit0hQXj9QbJRpsFU_EcpoeQcdWvoUA0TmBaVLj3farZ4HBXH9UHd/w308-h400/SHR21%20seaimage.JPG" width="308" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhuJSJ7SzagQpU_G-HkXLEVc-6U_YI5yNNFvQaLJKUleJ3Ky37T7IPEmMu6gI_fnusc-bK9vtGFrUavqvfyz0ExrLPJt55l-cUJZwLv5y8L72oDOtIHGnGFaEJwTG26yd78BmkWchmnAodHxjbWQ5VhEQjWTgr-XozzPV48GmZZ_XOZlL1_W-E4HkUo/s1806/SHR21%20staks.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1806" data-original-width="1395" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhuJSJ7SzagQpU_G-HkXLEVc-6U_YI5yNNFvQaLJKUleJ3Ky37T7IPEmMu6gI_fnusc-bK9vtGFrUavqvfyz0ExrLPJt55l-cUJZwLv5y8L72oDOtIHGnGFaEJwTG26yd78BmkWchmnAodHxjbWQ5VhEQjWTgr-XozzPV48GmZZ_XOZlL1_W-E4HkUo/w309-h400/SHR21%20staks.JPG" width="309" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhtWoh2Eyhfuhh2pYXf7-IsH9KGwE2-xW7hWmmOc5ImFGyBeb9boSeCHXFUcMqZWwJddR0ouyDrf9Kze76npBczVnTq20JNB61B8TiV_tubynbPhBaX_5zboh960Z6-ehZWbHeXIh_W-jS3qv-wL1d9U7vcbCyPJGFaYocqFKCGlFgMd3hQFZyXVrqM/s2777/SHR21%20data%20tables.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1785" data-original-width="2777" height="258" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhtWoh2Eyhfuhh2pYXf7-IsH9KGwE2-xW7hWmmOc5ImFGyBeb9boSeCHXFUcMqZWwJddR0ouyDrf9Kze76npBczVnTq20JNB61B8TiV_tubynbPhBaX_5zboh960Z6-ehZWbHeXIh_W-jS3qv-wL1d9U7vcbCyPJGFaYocqFKCGlFgMd3hQFZyXVrqM/w400-h258/SHR21%20data%20tables.JPG" width="400" /></a></div><br /><div>Definitely a four-cone design. 🍦🍦🍦🍦<br /><div><br /></div><h2 style="text-align: left;"><a href="https://equilibrium.gucci.com/impactreport-2021/" target="_blank">Gucci Equilibrium Impact Report 2021</a></h2><div style="text-align: justify;">Gucci is part of the global luxury group Kering that develops and markets fashion, leather
goods, jewellery and watches. This second annual Gucci Equilibrium Impact Report references the company's Environmental Profit and Loss accounting, a practice pioneered by Kering several years ago. The Gucci EP&L is not detailed in this report, but Kering's <a href="https://www.kering.com/en/sustainability/measuring-our-impact/our-ep-l/results/" target="_blank">group EP&L</a> is referenced.</div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEggc9Hv0Gph2XU2ORj0XNuxZs2KtsOMfnB5sHlalmpDgKNJoZJUQn63YiFeVERh-opBEIe66npgloYJW5jXGxOwdn7uvioekSxc0N4DnIlb6AIH_1JLz2xxtMWKFeoQUH8mWPhmnccbKegldLOBn2GZVP_ewq3OVn0Y8n_qHmvH7CzZyspPO5Xv8MPj/s1680/GUCCI21%20cover.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1181" data-original-width="1680" height="281" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEggc9Hv0Gph2XU2ORj0XNuxZs2KtsOMfnB5sHlalmpDgKNJoZJUQn63YiFeVERh-opBEIe66npgloYJW5jXGxOwdn7uvioekSxc0N4DnIlb6AIH_1JLz2xxtMWKFeoQUH8mWPhmnccbKegldLOBn2GZVP_ewq3OVn0Y8n_qHmvH7CzZyspPO5Xv8MPj/w400-h281/GUCCI21%20cover.JPG" width="400" /></a></div><br /><div><br /></div><div style="text-align: justify;">The Gucci report combines vivid colors with light-touch design elements throughout the report. Using thread-like elements on each page to liven up images and creative icons for bullets, the report is super attractive in an understated sort of way. A compact navigation top menu on each page helps you get around this 42-page report. In fact, the report is a horizontal wide-page design that fills the screen from end-to-end, where each page actually holds the content of two regular pages, like double spreads. This adds a nice flow to the content and enables continuity on certain pages, such as the timeline page. Oh, and if you are looking for page numbers, don't bother. There are none in this report. Can't decide if that's a good thing or not - certainly one less thing to crowd the page, but perhaps less functional. Don't forget to stock up on luxury ice cream to view this sample of pages from the Gucci report. </div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEin6iH-unJqyZyMyzagBfXoc5r4is45XhXejXUfM16TSwXyE5D37GSyyS9oySRevrne7_S6zOHL4HjHmyLSVV9NbFzcVHY3ykt23qbsBE9tB9VLxzhahzguSYgVQ7IyP039IdAQwSnUUtlW7zPh2ER7wey1GcHkkjb-iKlorqRn5XeM69GcTGfYyV3G/s3381/GUCCI21%20journey.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1181" data-original-width="3381" height="140" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEin6iH-unJqyZyMyzagBfXoc5r4is45XhXejXUfM16TSwXyE5D37GSyyS9oySRevrne7_S6zOHL4HjHmyLSVV9NbFzcVHY3ykt23qbsBE9tB9VLxzhahzguSYgVQ7IyP039IdAQwSnUUtlW7zPh2ER7wey1GcHkkjb-iKlorqRn5XeM69GcTGfYyV3G/w400-h140/GUCCI21%20journey.JPG" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhso6q1N7R7bLtcQeZQCY9u_3EoIKpcAvlatHVynZatVjQVAyL1P1DPNoZdKtsMal1M_WdRnYb3hWekhwwRHRlaLNekrzrIZzSB9xgN0QelP4MmE_pU_i8x2MK4fTNwpsiT54YL4xfDzFTXL5EC3VVY_VVghSo8G1Sx_4TQO4qEeardOKaGvOXX-IvG/s3382/GUCCI21%20PEOPLEPLANET.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1183" data-original-width="3382" height="140" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhso6q1N7R7bLtcQeZQCY9u_3EoIKpcAvlatHVynZatVjQVAyL1P1DPNoZdKtsMal1M_WdRnYb3hWekhwwRHRlaLNekrzrIZzSB9xgN0QelP4MmE_pU_i8x2MK4fTNwpsiT54YL4xfDzFTXL5EC3VVY_VVghSo8G1Sx_4TQO4qEeardOKaGvOXX-IvG/w400-h140/GUCCI21%20PEOPLEPLANET.JPG" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjP9PJfv6Fi4OxuUstH0qxQy_0ypsBN8VIt2zsC26RgBDVbd3VOM4QdpQeiZobPVTMVH9IkA80HRJrWnrX5WOYqVG7ad2ytsijpDEI8vdM44MAQ19B90WxRyu0FuzfgYUMXsI5Hn3OmcIKr_VhtoJIIcte_48v4lfj-7edVhrj47e9SX1-sEpVLBxiX/s3374/GUCCI21%20supplychain.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1176" data-original-width="3374" height="140" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjP9PJfv6Fi4OxuUstH0qxQy_0ypsBN8VIt2zsC26RgBDVbd3VOM4QdpQeiZobPVTMVH9IkA80HRJrWnrX5WOYqVG7ad2ytsijpDEI8vdM44MAQ19B90WxRyu0FuzfgYUMXsI5Hn3OmcIKr_VhtoJIIcte_48v4lfj-7edVhrj47e9SX1-sEpVLBxiX/w400-h140/GUCCI21%20supplychain.JPG" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiTTbhGKWflw7vdCh2OAAeloWnmfCkhGrBXhdDBShYSb0ItJReNju8tfnh_DnWA5dC2YiXN2DsAbA-7Vsbi8G5JIrkjUZpjsnwewyd3B5hH03vYvsTYlwzko4AuVR-31v5c5gaScySMbY74Vl0aDDKZp8atKoNVntn07ON0cJMo7ggdnCh9vNBAVDL3/s3377/GUCCI21%20vault.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1181" data-original-width="3377" height="140" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiTTbhGKWflw7vdCh2OAAeloWnmfCkhGrBXhdDBShYSb0ItJReNju8tfnh_DnWA5dC2YiXN2DsAbA-7Vsbi8G5JIrkjUZpjsnwewyd3B5hH03vYvsTYlwzko4AuVR-31v5c5gaScySMbY74Vl0aDDKZp8atKoNVntn07ON0cJMo7ggdnCh9vNBAVDL3/w400-h140/GUCCI21%20vault.JPG" width="400" /></a></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: left;">Four cones to Gucci 🍦🍦🍦🍦.</div><h2 style="text-align: left;"><a href="https://www.genesys.com/media/Sustainability-Report-2021-Join-us-on-our-journey.pdf" target="_blank">Genesys 2021 Sustainability Report</a></h2></div><div style="text-align: justify;">California-headquartered cloud-based software and artificial intelligence (AI) technology company Genesys has created a beautiful report out of a lot of white space and a focused color palette. </div><div><br /></div><div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj89dahFD3wbzExrr_wtW8nYHJHIriyiC44zcRRG2vE0nSqz-DDauRCCf2VJTEvkIPsnVSHyixHqSU_f3rYNhKqBExLAdHEHoKYR8jNC7HUWRKVPoRGmXo0Djs3guzi1vCGpoqSDsDzfokVQFqoQh0_SrrGAcGvxr9XP9QKHdANhQfuZ1T9Xn-nXjo3/s2469/GENESIS21%20cover.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1906" data-original-width="2469" height="309" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj89dahFD3wbzExrr_wtW8nYHJHIriyiC44zcRRG2vE0nSqz-DDauRCCf2VJTEvkIPsnVSHyixHqSU_f3rYNhKqBExLAdHEHoKYR8jNC7HUWRKVPoRGmXo0Djs3guzi1vCGpoqSDsDzfokVQFqoQh0_SrrGAcGvxr9XP9QKHdANhQfuZ1T9Xn-nXjo3/w400-h309/GENESIS21%20cover.JPG" width="400" /></a></div><br /> <div style="text-align: justify;">Using bold colors, brush-stroke design elements and a handwritten-style callout font, it all hangs together in a truly appealing way. Bold images for the section landing pages are captivating, and little touches such as the illustrations on the inclusion timeline chart add visual interest. A full navigation top menu makes navigation super easy. This report is quite masterful in projecting a clean, uncluttered design approach while incorporating a range of content, images, tables, charts and graphs. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjzPSGq0X4lvPHAxhQAu0wppmE7UxWsGgnx63lzHbG2yhEg1aS69_5f-U8Sw7YVJE_qYIub0w5j-hA_-s9EET36Q-LCYWbu9rj8dkIItzqtv6dsgpia3WKrXNn98378h5ShdFIFIL5XhHgTRPuMsl5SXT1NqCimTJ1JCSHg3b-69Mua5vJ_04pxxk-W/s2471/GENESIS21%20about.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1908" data-original-width="2471" height="309" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjzPSGq0X4lvPHAxhQAu0wppmE7UxWsGgnx63lzHbG2yhEg1aS69_5f-U8Sw7YVJE_qYIub0w5j-hA_-s9EET36Q-LCYWbu9rj8dkIItzqtv6dsgpia3WKrXNn98378h5ShdFIFIL5XhHgTRPuMsl5SXT1NqCimTJ1JCSHg3b-69Mua5vJ_04pxxk-W/w400-h309/GENESIS21%20about.JPG" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgbkT8xFWISabfZIiW_RbPPqv_FOkSd2hkzuv_kKRMAAXijxgoetX_x0KNpSY1xF3uuNQlcMsjYJdNboxb0wwh74l9AQWqpKQVJz3SLJiEwDEZmSN9jfekkiCBkp1cjzCBeUlVMWvQVmJwviYjdW1bdnMNCcpUsideXgM9VkH5tCFJMqUAVjIRuCaIb/s2483/GENESIS21%20DEI.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1918" data-original-width="2483" height="309" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgbkT8xFWISabfZIiW_RbPPqv_FOkSd2hkzuv_kKRMAAXijxgoetX_x0KNpSY1xF3uuNQlcMsjYJdNboxb0wwh74l9AQWqpKQVJz3SLJiEwDEZmSN9jfekkiCBkp1cjzCBeUlVMWvQVmJwviYjdW1bdnMNCcpUsideXgM9VkH5tCFJMqUAVjIRuCaIb/w400-h309/GENESIS21%20DEI.JPG" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhZQ2u4fU2GUHwGztIFZOJXaaMzb6I2OTka1E_4Xq7GrG5cm1tUhT5nEP2Js52tLf0t0LpCy6R55HI4iLYWzoYUdKMauBOPyU75kqPG6b9dOdaBUG8OkgRXRfoC1W4mU32uDfxehemTBo5s9MCGDgko2q62WRWEFIa0WdlbwHSccobeioTjOVkh0ij8/s2478/GENESIS21%20DEI2.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1916" data-original-width="2478" height="309" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhZQ2u4fU2GUHwGztIFZOJXaaMzb6I2OTka1E_4Xq7GrG5cm1tUhT5nEP2Js52tLf0t0LpCy6R55HI4iLYWzoYUdKMauBOPyU75kqPG6b9dOdaBUG8OkgRXRfoC1W4mU32uDfxehemTBo5s9MCGDgko2q62WRWEFIa0WdlbwHSccobeioTjOVkh0ij8/w400-h309/GENESIS21%20DEI2.JPG" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgcXM9nyxHei-ZnilKS0U35z3oCfSYoFo4zObmlp-QLhOi6Td9a_lQHW44DgRu-HZfcBlZTNGyIjyOAjiAaZgiwhG6MSSqnpxvYq3jraW1FGi4KsGdwTnCnPZtKIIEC6CpE0FFLbwACuoi7DIk34N_EWR2CNGuxodm9W08zmx1cSmbK8rPYw9OelmyT/s2479/GENESIS21%20journey.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1915" data-original-width="2479" height="309" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgcXM9nyxHei-ZnilKS0U35z3oCfSYoFo4zObmlp-QLhOi6Td9a_lQHW44DgRu-HZfcBlZTNGyIjyOAjiAaZgiwhG6MSSqnpxvYq3jraW1FGi4KsGdwTnCnPZtKIIEC6CpE0FFLbwACuoi7DIk34N_EWR2CNGuxodm9W08zmx1cSmbK8rPYw9OelmyT/w400-h309/GENESIS21%20journey.JPG" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiy23LEhXQg1Bqedk-5dXmxs_rJqIWjOplLC1LATqchwAjH_G0bv1c7gTDNBNlKcL9g39Pr6fbTF4zPGyJ8lNf6Nitf-HuTuBt0nzlTr9nZfRUuxQhHJ6utbkRi3hV4iPBpN77N5j-Zwiuz60ICMSm_hkmSkGf8Ko6-7X23El5A6H_cFXQuOadeldQ8/s2486/GENESIS21%20talent.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1912" data-original-width="2486" height="308" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiy23LEhXQg1Bqedk-5dXmxs_rJqIWjOplLC1LATqchwAjH_G0bv1c7gTDNBNlKcL9g39Pr6fbTF4zPGyJ8lNf6Nitf-HuTuBt0nzlTr9nZfRUuxQhHJ6utbkRi3hV4iPBpN77N5j-Zwiuz60ICMSm_hkmSkGf8Ko6-7X23El5A6H_cFXQuOadeldQ8/w400-h308/GENESIS21%20talent.JPG" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgEDR4NkGB1sST7QJC9actmEbGm_gTME1aUaqcQXDPX3o6UZdIu3G-eKPwA5F7KUsFceqJtZbdc6yOTstY7MhGn8PXvrceaRQNHEAEbJZJtyvUYQ4bAg8MnN2T0wdoRajoYKFYT319DIpp9vETeeo73TpBKWvXKWUCe64QIdMjr3yyERRpl0I-QBByW/s2471/GENESIS21%20targets.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1910" data-original-width="2471" height="309" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgEDR4NkGB1sST7QJC9actmEbGm_gTME1aUaqcQXDPX3o6UZdIu3G-eKPwA5F7KUsFceqJtZbdc6yOTstY7MhGn8PXvrceaRQNHEAEbJZJtyvUYQ4bAg8MnN2T0wdoRajoYKFYT319DIpp9vETeeo73TpBKWvXKWUCe64QIdMjr3yyERRpl0I-QBByW/w400-h309/GENESIS21%20targets.JPG" width="400" /></a></div>The more I look at the Genesys report, the more I appreciate it's simple appeal. Genesys gets four cones from me, proving that less is more 🍦🍦🍦🍦.<br /> </div><h2 style="text-align: left;"><a href="https://www.metaxahospitality.gr/media/dkej5iae/mhg-report-2021-eng-vf.pdf" target="_blank">Metaxa Hospitality Group Sustainability Report 2021</a></h2><div><br /></div><div>The Metaxa Group is a Greek-based group operating on the beautiful islands of Crete and Santorini. The Metaxa report projects a Mediterranean calm, inviting you to relax by the deep blue waters of the a hotel pool (don't forget the ice cream) as you peruse its pages.</div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjTAHqPcaB7PPoVnsKuXcPcP0xzzovNkqtLriuWLukqSkdOmgqEZA0oPCecLbwQ2p3JwYQ5JaOEw3ZPhC8293qqkBMRY1_E0lY7MWVBFyioJ8WCWgKTKVSmp6GnNAxZ31qah6SZ-In7__KxibEzGNUjU7QESmz9FhWjcRrWHxVnOkne9tQSnt65noFS/s1818/METAXA21%20cover.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1231" data-original-width="1818" height="271" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjTAHqPcaB7PPoVnsKuXcPcP0xzzovNkqtLriuWLukqSkdOmgqEZA0oPCecLbwQ2p3JwYQ5JaOEw3ZPhC8293qqkBMRY1_E0lY7MWVBFyioJ8WCWgKTKVSmp6GnNAxZ31qah6SZ-In7__KxibEzGNUjU7QESmz9FhWjcRrWHxVnOkne9tQSnt65noFS/w400-h271/METAXA21%20cover.JPG" width="400" /></a></div><br /><div style="text-align: justify;">The beauty in this report is in the flowing lines of the pages, the awe-inspiring imagery of the local landscapes, the colors that remind you of a sandy beach and the careful page composition that, on several pages, includes photos, callouts, data and text. Although sometimes it's quite a lot, it's tastefully put together and maintains a peaceful, calm design feel throughout. Some images are used as page backgrounds, but care is taken not to render any text illegible. The top menu is not interactive, which is a pity, but it helps you know where you are in the report. </div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgpKJUXWDPKHDXuNAUCvDKBf1XlqqzszYD6zndusY7sFEprHe6qqGNcHFYJ6bHnLpoKbVBod8uukXzNKFB7y8b-k0J3Hs89fPMdkaZSF3KyANZGaQ-a1D2fue1_yeSmeUUhLhK1BRyCQ6eNIS7y_R7b0Hu331pgFhix9A4MVS5u8f9PQVJalXlF0GB9/s1812/METAXA21%20about.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1239" data-original-width="1812" height="274" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgpKJUXWDPKHDXuNAUCvDKBf1XlqqzszYD6zndusY7sFEprHe6qqGNcHFYJ6bHnLpoKbVBod8uukXzNKFB7y8b-k0J3Hs89fPMdkaZSF3KyANZGaQ-a1D2fue1_yeSmeUUhLhK1BRyCQ6eNIS7y_R7b0Hu331pgFhix9A4MVS5u8f9PQVJalXlF0GB9/w400-h274/METAXA21%20about.JPG" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgF9IAQ3alemofjxScIvclkWmOlJqRUB1scsKb_nrsaV7tAdjtjlHFn85fTMitDVeun728UTKxHLQk9Q7xGJmkh9ab6mROKJ_v5_0N_C4zrE2sx72KpMGQowVcaW0Dmf00Aqxju1jZ3n_oPUD2DbTYUMUKaFl_FOJD08dMPtZaiV2TazE3YtXyCzW72/s1799/METAXA21%20education.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1219" data-original-width="1799" height="271" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgF9IAQ3alemofjxScIvclkWmOlJqRUB1scsKb_nrsaV7tAdjtjlHFn85fTMitDVeun728UTKxHLQk9Q7xGJmkh9ab6mROKJ_v5_0N_C4zrE2sx72KpMGQowVcaW0Dmf00Aqxju1jZ3n_oPUD2DbTYUMUKaFl_FOJD08dMPtZaiV2TazE3YtXyCzW72/w400-h271/METAXA21%20education.JPG" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjGzAQnkP0HxVoUJt7GxE16c-wKtONRF-O3vrHcTUTUqa_2jxPc8t6thT1qvng5WJCt0cZyUKZeQ_NMPq-KDyCHsTvqvOTZzPN1X0XnHz6eFQdEBu0PfHWF81ySwrpW_nffUp8DRfueIKol-jQKTMQb9-M46NTPrQSd1ur_YZNACs3D94gyW4D9zdrD/s1810/METAXA21%20env.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1231" data-original-width="1810" height="272" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjGzAQnkP0HxVoUJt7GxE16c-wKtONRF-O3vrHcTUTUqa_2jxPc8t6thT1qvng5WJCt0cZyUKZeQ_NMPq-KDyCHsTvqvOTZzPN1X0XnHz6eFQdEBu0PfHWF81ySwrpW_nffUp8DRfueIKol-jQKTMQb9-M46NTPrQSd1ur_YZNACs3D94gyW4D9zdrD/w400-h272/METAXA21%20env.JPG" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi1_-KPvyERaJ0bIxTxOlHVWbVFUGZDlquC3gwmrKdoTiG2vC8GRBVwxmc5c7ye1CLH5LYh9R8kk3CAXFdeLleTP3NfJ11Y9xlSFd_xL60HbYVYphAyCHdIUKlsc0lfBbCZsiNAa3Rh6lZLn1pNracoJh0L11Y4vZlvQkrkOEnCNxxqyKHzXXHkUJ_K/s1804/METAXA21%20governance.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1215" data-original-width="1804" height="270" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi1_-KPvyERaJ0bIxTxOlHVWbVFUGZDlquC3gwmrKdoTiG2vC8GRBVwxmc5c7ye1CLH5LYh9R8kk3CAXFdeLleTP3NfJ11Y9xlSFd_xL60HbYVYphAyCHdIUKlsc0lfBbCZsiNAa3Rh6lZLn1pNracoJh0L11Y4vZlvQkrkOEnCNxxqyKHzXXHkUJ_K/w400-h270/METAXA21%20governance.JPG" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhieN3-40pfkr49kGZo8PrsXlw3a9u0v1A6yPdvwmtGus74ddI67x8gkN0C9lixCGM3_Ziw3dIpTaAgW0u_AIcgDfLWvthvefJG13Y7L-yHRhkJlTay3uvsGnJ1JEYAssqjvnjJwqBAniv8LgC4oDi_XSoAeu-84cRL9Y-q0J-SDMZEq_FwgbHvJahd/s1808/METAXA21%20waste.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1241" data-original-width="1808" height="275" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhieN3-40pfkr49kGZo8PrsXlw3a9u0v1A6yPdvwmtGus74ddI67x8gkN0C9lixCGM3_Ziw3dIpTaAgW0u_AIcgDfLWvthvefJG13Y7L-yHRhkJlTay3uvsGnJ1JEYAssqjvnjJwqBAniv8LgC4oDi_XSoAeu-84cRL9Y-q0J-SDMZEq_FwgbHvJahd/w400-h275/METAXA21%20waste.JPG" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiYW-_zN5AdM9oMGbr0MXKucV7Ns5cIB3Ye5eclQpYuGFW2j9_nOFiLB2Wxy2VffQDKDA3Ot4hwSnbNpSBKAnjD3vIPzOowxk6hzShwxKIGOLvULAF9HBqwj_xrVFQ_amBZad9w2Lc70jehvBfOgJLh5HqT-yeMNCakRTHed77mnycuOH1fl6fK2Mvi/s1792/METAXA21%20water.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1224" data-original-width="1792" height="274" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiYW-_zN5AdM9oMGbr0MXKucV7Ns5cIB3Ye5eclQpYuGFW2j9_nOFiLB2Wxy2VffQDKDA3Ot4hwSnbNpSBKAnjD3vIPzOowxk6hzShwxKIGOLvULAF9HBqwj_xrVFQ_amBZad9w2Lc70jehvBfOgJLh5HqT-yeMNCakRTHed77mnycuOH1fl6fK2Mvi/w400-h274/METAXA21%20water.JPG" width="400" /></a></div>Four cones also to Metaxa <span style="text-align: justify;">🍦🍦🍦🍦.</span><br /><div><br /></div><div><br /></div><div style="text-align: center;">**************</div><div><br /></div><div><br /></div><div style="text-align: justify;">That completes today's roundup of beautiful reports. There are many other fabulous report designs out there - so many different styles and formats - many more that are very impressive. And of course, no matter how beautiful the report, it's the content that we are all looking for. But, at least, just in case you were wondering, now you know that there is also beauty in reporting. </div><div><br /></div><div><br /></div><span style="background-color: white;"><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-size: x-small;"><span style="text-align: justify;">e</span></span><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-size: x-small;">laine cohen, </span><b style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small;">GCB.D</b><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-size: x-small;">: </span><a href="https://competentboards.com/" style="color: blue; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small;" target="_blank">ESG Competent Boards Certified (2021)</a><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-size: x-small;">, </span><b style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small;">Sustainability Strategy and Disclosure Specialist</b><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-size: x-small;">, former HR Professional, Ice Cream Addict. Owner/Manager of </span><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: blue; font-size: x-small; text-align: justify;"><a href="http://www.b-yond.biz/" style="color: #0066cc;" target="_blank"><b>Beyond Business Ltd</b></a></span><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-size: x-small; text-align: justify;">, </span><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-size: x-small;">an inspired Sustainability Strategy and Reporting firm having supported </span><b style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small;">>160 </b><a href="http://www.b-yond.biz/clients-reports" style="color: #0066cc; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: justify;" target="_blank"><span style="color: blue;"><b>client reports</b></span></a><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-size: x-small; text-align: justify;"> to date; </span><b style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: justify;">author </b><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-size: x-small; text-align: justify;">of </span><a href="http://www.b-yond.biz/our-books" style="color: #0066cc; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: justify;" target="_blank"><span style="color: blue;">three books and several chapters</span></a><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-size: x-small; text-align: justify;"> on Sustainability Reporting and the Human Resources connection to CSR; frequent </span><b style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: justify;">chair and speaker </b><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-size: x-small; text-align: justify;">at sustainability events and </span><b style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: justify;">judge</b><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-size: x-small; text-align: justify;"> in several sustainability awards programs each year. Contact me via </span><a href="http://www.twitter.com/elainecohen" style="color: #0066cc; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: justify;" target="_blank">Twitter</a><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-size: x-small; text-align: justify;"> , </span><a href="https://www.linkedin.com/in/elainecohen/" style="color: #0066cc; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: justify;" target="_blank"><span style="color: blue;">LinkedIn</span></a><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-size: x-small; text-align: justify;"> or via </span><a href="http://www.b-yond.biz/" style="color: #0066cc; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: justify;" target="_blank"><span style="color: blue;">Beyond Business</span></a></span></div></div><br /></div>elainehttp://www.blogger.com/profile/07433863039389159395noreply@blogger.com0tag:blogger.com,1999:blog-8008724049496903547.post-59325001992612581102022-10-13T16:05:00.001+03:002022-10-13T16:05:41.889+03:00GRI Reporting: The Case of the Invisible Employees<div style="text-align: justify;">In the middle of all the raging debates, exposure drafts, ESG wars and explosion in the number of ways you can say materiality, serious reporting companies are gearing up for their next reporting cycle. For those who report GRI, this includes getting ready for the introduction of the new <a href="https://www.globalreporting.org/standards/standards-development/universal-standards/" target="_blank">GRI Universal Standards</a> for reports published in 2023. </div><div style="text-align: justify;">You may have noticed that there are some early adopters of the new Universal Standards applied in reports published in 2022. It’s good to see companies showing leadership in transparency and paving the way for use of the Universal Standards. We can learn much from how they do things. Thank you to all the companies I mention below. </div><div style="text-align: justify;">The Universal Standards represent somewhat of a stretch for companies who have reported GRI Core Option in the past. Less so for Comprehensive Option reporters but still some adaptation is required. It’s not quite enough to continue to report as you were doing and just add new labels. </div><div style="text-align: justify;"><b>Disclosure 2-8 is a case in point.</b> This disclosure is an upgrade to previous GRI 102-8-d (2016) which required reporting of “Whether a significant portion of the organization’s activities are performed by workers who are not employees. If applicable, a description of the nature and scale of work performed by workers who are not employees.” A sub-clause of 102-8, this disclosure was largely overlooked and reported only occasionally by companies. Disclosure 2-8 now requires a detailed disclosure:</div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgtoSu8qHdnVdQd73hu7bNmlOwkXhWgbHvWyjio0bt2e7LKa2GVQebK92bRA40A8tRDUkqmm-39JU2d4MreHoKNiBoelyhgeoyVs7CeZ7gpKe18JAwRhsJseH4NzjfGOeyJMYvnymMn_ge3QrOMqatNh-Voue9TQkP5PLRr_gPE2ObP77sAJJzYEj5k/s1632/GRI22%202.8.JPG" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="775" data-original-width="1632" height="190" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgtoSu8qHdnVdQd73hu7bNmlOwkXhWgbHvWyjio0bt2e7LKa2GVQebK92bRA40A8tRDUkqmm-39JU2d4MreHoKNiBoelyhgeoyVs7CeZ7gpKe18JAwRhsJseH4NzjfGOeyJMYvnymMn_ge3QrOMqatNh-Voue9TQkP5PLRr_gPE2ObP77sAJJzYEj5k/w400-h190/GRI22%202.8.JPG" width="400" /></a></div><br /><div style="text-align: justify;"><b>Let’s start by trying to understand who the workers are who are not employees. </b>This is a tricky one and not as clear-cut as you might think at first glance. My initial assumption was that this refers to agency employees or contingent workers – people who work for an employment agency who replace employees on leave, or supplement employees at peak times etc. </div><div style="text-align: justify;"><b>But, hey, wait, it’s not that simple. </b></div><div style="text-align: justify;">Reading the GRI guidance in the Standards, you realize it’s all about who controls the work. If the company controls the work of the worker who is not an employee, that worker is in scope for Disclosure 2-8. The guidance says: <i>workers who are not employees are those who perform work for the organization and <b>whose work is controlled by the organization</b> but are not in an employment relationship with the organization.</i> Control of work implies that the organization directs the work performed or has control over the means or methods for performing the work. </div><div style="text-align: justify;"><b>But, hey, wait, it’s not that simple.</b> </div><div style="text-align: justify;">How do you define “control of work”? Control can be interpreted in different ways. Does control mean setting wage scales? Supervising the work? Prescribing the work methods? Monitoring attendance? Defining materials to be used? Scheduling hours of work and rest? All of the above? GRI guidance talks about <b><i>workers of one of the organization’s suppliers, where the organization instructs the supplier to use particular materials or work methods to manufacture the products or deliver the services</i></b>. </div><div style="text-align: justify;">The “extent” of control plays a role here. If it’s control to a high extent, it’s control. If it’s control to a limited extent, it’s not control. Aaaaaaaaaaaargh. In order to solve this conundrum, I went straight to the source and would like to thank GRI's <a href="https://www.linkedin.com/in/bastian-buck-90971812/" target="_blank">Bastian Buck, Chief of Standards</a>, and <a href="https://www.linkedin.com/in/sharon-hagen-b69ba257/" target="_blank">Sharon Hagen, Senior Coordinator of Sustainability Reporting Standards</a>, for their insights and guidance. Nothing like getting to folks who created the problem to sort it out for you 🤣. Ultimately, companies will have to define and declare the scope of control they apply in when using Disclosure 2-8. That’s comparability out of the window as reporters will inevitably report in different ways. But heck, comparability is a myth anyway. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">So now we know. Disclosure 2-8 is sort of a DIY disclosure. Make it up as you go along. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Applying the insights above, here are examples of workers who are not employees, and how Disclosure 2-8 applies to them or not. </div><div style="text-align: justify;"><b>INCLUDE Employees of high-control outsourced operations:</b> An example is people employed by a contract manufacturer that provides a dedicated manufacturing operation (but not necessarily in a dedicated facility), employing a team of trained people to deliver defined products in accordance with a company’s specification. The company prescribes the work in quite some detail, defines the materials to be used, the nature of the work and even some or all of the work processes. Let’s call this high control.</div><div style="text-align: justify;"><b>EXCLUDE Employees of low-control outsourced operations:</b> There are several examples – outsourced warehousing, outsourced logistics, outsourced call-centers etc. In these cases, although a company might prescribe an overall approach to the work, for example, safety standards, a Code of Conduct, ISO certification, or certain processes, generally it is the outsourced operation (supplier) that controls the practice of work on a day-to-day basis to meet contractual requirements. The outsourcing provider sets wages, manages employee terms and conditions, hours of work, shift patterns, training, discipline etc. In this case, the company has low control over the work itself. </div><div style="text-align: justify;"><b>INCLUDE or EXCLUDE Employees of hard-to-define control outsourced operations:</b> In some cases, operations may be outsourced with a high level of prescription about the work to be done and the processes to be used without detailing day-to-day specifics. It really depends on how much freedom the supplier of the service has to choose the way it instructs its workers to perform he work. Less freedom = more control. More freedom = less control. The rule of thumb here is: if in doubt, make a decision and explain it, and then apply it consistently. </div><div style="text-align: justify;"><b>INCLUDE Employees of on-site service providers:</b> Employees of contracted services usually performed onsite such as cleaning, catering and security services are usually required to perform their work under a high level of control by the company. Hours of work, place of work, type of work – generally it’s the buyer that decides. </div><div style="text-align: justify;"><b>INCLUDE Agency or third-party contingent workers: </b>These are individuals who are supplied by external employment agencies to do specific jobs in the organization, in place of or in addition to the permanent workforce. For example, cover for maternity leave or sick leave, additional resource on packing lines or in laboratories etc. They join the team and do the work required, directed by the Team Manager or Supervisor. Clearly high control is at work here. Haha. A pun. </div><div style="text-align: justify;"><b>INCLUDE Contractors:</b> Contractors manage and/or deliver construction or engineering-type projects. Often a General Contractor will bring in its own team and specialist sub-contractor companies and their employees to complete a project. They work on the company site or help build new sites, under the guidance and responsibility of the General Contractor who meets the contractual obligations of the contracting company who agrees the work plans and prescribes aspects of the work. </div><div style="text-align: justify;"><b>INCLUDE Independent workers: </b>This may include what GRI refers to as self-employed workers or home workers. They are generally considered an extension of the internal workforce, doing work an employee might do. For example, an independent laboratory worker who joins the team for a specific period of time to do work directed by the Lab Manager, or a homeworker who provides call-center services on contract to the company directed by the inhouse Call-Center Manager. </div><div style="text-align: justify;"><b>INCLUDE Interns/Apprentices:</b> These are included in GRI’s definition or workers who are not employees, even though, in many instances, interns and apprentices are not performing full work roles, but provide supplemental project work as they learn in the organization. For good orders’ sake, these we count these as in scope for 2-8 as control is with the company. </div><div style="text-align: justify;"><b>INCLUDE Volunteers:</b> If the reporting organization is a nonprofit or non-commercial entity, volunteers may be the primary providers of work in the organization, and may be managers, staff or occasional volunteers. Their work is determined by the organization. </div><div style="text-align: justify;"><b>EXCLUDE Employees of general suppliers:</b> Suppliers employ people to make and deliver goods and services. The people employed in the broader supply chain (excluding outsourcing examples above) are managed by their own organizations with no control of the procuring company. They would not be considered part of a company’s extended workforce unless they are specifically dedicated to providing custom work as noted in the examples above. </div><div style="text-align: justify;"><b>EXCLUDE Employees of providers of professional service providers: </b>Employees in legal and accounting firms, auditors, compliance organizations, manpower agencies, design firms etc. While these individuals provide a dedicated, custom service, their work is not controlled by the company.</div><div style="text-align: justify;"><b>EXCLUDE Independent consultants: </b>An external consultant who works on contract to supply a service against a Statement of Work or other contract. Similar to providers of professional services.</div><div style="text-align: justify;"><b>EXCLUDE Robots: </b>A robot performs work but is not an employee. But a robot is not a person. Well, not really.</div><div style="text-align: justify;"><b>EXCLUDE Non-Human Animals:</b> If you use animals to perform work, for example, horses to pull carts, cats to catch mice, dogs to guard the yard, these would also be outside the scope of Disclosure 2-8. But you can report about them anyway. We love non-human animals. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Complicated, isn’t it? </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But you get the picture. In order to understand a company’s full employment impacts, the categories to include above, in addition to the direct workforce, represent the overall number of people involved in a company’s activities. This number could be significantly larger than the direct workforce, especially in the case of organizations that outsource many operations.
Take a company like <b>Inditex</b>. All garment sourcing is outsourced. Inditex employees 165,000 people directly. But has more than 1.3 million people employed in its supplier factories around the world. Although not yet using GRI Universal Standards 2021, Inditex reports extensively on workers in its outsourced factories and even publishes a special report: <a href="https://www.inditex.com/itxcomweb/api/media/37db60a4-0d6f-46df-b40a-047306925c7b/Inditex+Workers+at+the+Centre+2021.pdf?t=1657364844464 " target="_blank">Workers at the Centre.</a> </div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjUD62OdVbhhgn-UieaBoAoyBp1pM63yyO2PVn8R4PSG6E-Yg5j-u6uOc-SOt4LkVMJuC3MtLAbK5WyeFktrpjfDUlmPRc5vUHIO2XsnS1bSrH4Vu5CT_xIB9iOQ3nmwWP0qcubkC0nxUt52sG9Wf2m7w82YQo_RFcggfl6zjkoAxbsGs7V10ois-W2/s2284/INDITEX21%20workers%20at%20the%20centre2.JPG" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1616" data-original-width="2284" height="283" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjUD62OdVbhhgn-UieaBoAoyBp1pM63yyO2PVn8R4PSG6E-Yg5j-u6uOc-SOt4LkVMJuC3MtLAbK5WyeFktrpjfDUlmPRc5vUHIO2XsnS1bSrH4Vu5CT_xIB9iOQ3nmwWP0qcubkC0nxUt52sG9Wf2m7w82YQo_RFcggfl6zjkoAxbsGs7V10ois-W2/w400-h283/INDITEX21%20workers%20at%20the%20centre2.JPG" width="400" /></a></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Given the close control Inditex exerts over its garment suppliers, and the detailed strategies and due diligence deployed to drive responsible employment practices in the supply chain, with my new understanding of GRI’s guidance, I would expect these workers who are not employees to be in scope for Disclosure 2-8 when Inditex reports using the Universal Standards next year. </div><div style="text-align: justify;"><br /></div><h3 style="text-align: justify;"><span style="color: red;">Workers who are not employees – the invisibles </span></h3><div style="text-align: justify;">Whichever category of “workers who are not employees” companies adopt, it seems that in any case, a lot of them are <b>invisible</b> in the disclosures of companies using the new Universal Standards. I have looked at reports from early adopters (selected randomly) and, in my analysis, in 16 reports: </div><div style="text-align: justify;"><b><span style="color: red;">One </span></b>company disclosed in compliance with the requirements of Disclosure 2-8 </div><div style="text-align: justify;"><b><span style="color: red;">Six</span></b> companies provided some kind of information but not all required details or clarity </div><div style="text-align: justify;"><b><span style="color: red;">Two</span></b> companies omit Disclosure 2.8 from the GRI Content Index </div><div style="text-align: justify;"><b><span style="color: red;">Two</span></b> companies hide the disclosure </div><div style="text-align: justify;"><b><span style="color: red;">Three</span></b> companies advise that the information is not available </div><div style="text-align: justify;"><b><span style="color: red;">One</span></b> company provides the wrong information </div><div style="text-align: justify;"><b><span style="color: red;">One</span></b> company just doesn’t report</div><div style="text-align: justify;"> </div><div style="text-align: justify;">So, a one-in-sixteen (7%) hit rate for complete disclosure on workers who are not employees.
93% are more or less invisible. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Let’s take a look: </div><h4 style="text-align: justify;"><span style="color: red;">One company disclosed in compliance with the requirements of Disclosure 2-8 </span></h4><div style="text-align: justify;">Hong Kong power company <b>CLP Holdings Ltd</b> does a great job. CLP is no stranger to strong sustainability reporting and always delivers highly transparent, well considered reports. In this latest report using GRI Universal Standards 2021, CLP clearly identifies direct employees and different categories of non-employees where labour supply refers to people provided by manpower companies. See <a href="https://www.clpgroup.com/content/dam/clp-group/channels/sustainability/document/sustainability-report/2021/GRI_Content_Index_2021_en.pdf.coredownload.pdf" target="_blank">CLP’s GRI Content Index</a>. </div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiHi4apeEUsRI7DME4DdzRawuQ8Rvo0qe8rcGe6-t8-tn9dT7ZY9qHY2Zqr8BnxFGrvJbtYSKEJaiwctVG9wtV-wQu2FHWyLirrBOaDHYh-liFiU_Lt_e4tlm97zyHNKs4i_SmqJZkHnrS5HrgMcYaKNELazvsUTfoQCkJj3b8WsL6XE_8vw3BxGId6/s1413/CLP21%20GRI2.8.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1413" data-original-width="1357" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiHi4apeEUsRI7DME4DdzRawuQ8Rvo0qe8rcGe6-t8-tn9dT7ZY9qHY2Zqr8BnxFGrvJbtYSKEJaiwctVG9wtV-wQu2FHWyLirrBOaDHYh-liFiU_Lt_e4tlm97zyHNKs4i_SmqJZkHnrS5HrgMcYaKNELazvsUTfoQCkJj3b8WsL6XE_8vw3BxGId6/w384-h400/CLP21%20GRI2.8.JPG" width="384" /></a></div><div style="text-align: justify;"><br /></div><h4 style="text-align: justify;"><span style="color: red;">Six companies provided some kind of information but not all required details or clarity </span></h4><div style="text-align: justify;">Singapore-based <b>City Developments Limited (CDL)</b> is a global real estate company and another leading-light reporter and multiple times winner of the <a href="https://csrmatters.com" target="_blank">Asia Sustainability Reporting Awards</a> over the years. No surprises that CDL is an early adopter of the GRI Universal Standards.
CDL references construction workers in the <a href="https://www.cdlsustainability.com/pdf/CDL_ISR_2022.pdf" target="_blank">2021 Integrated Sustainability Report</a> as workers who are not employees. No mention is made of other categories of workers, such as those involved in site services such as cleaning or security, nor whether this is a typical year or if there is significant fluctuation from year to year. </div><div style="text-align: justify;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi5bRxE1he9AdQQN91qj9dqSAjszd54DP_E3TO6FzRyn_jadXCcNxKDD_kXSHwzlzDb_RwtlHpbD4aKE8z7E9CitRbr5eu8Fz9gKJXSyyBZ2i6qGW8Ug7GqJF8W_EXhrLib9L3cZeSMpX2-BFFuXGez1zhMv49brYElQzf5b8VQQ8mIzSrmoeQce9o2/s2303/CDL%20GRI%202-8.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="610" data-original-width="2303" height="106" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi5bRxE1he9AdQQN91qj9dqSAjszd54DP_E3TO6FzRyn_jadXCcNxKDD_kXSHwzlzDb_RwtlHpbD4aKE8z7E9CitRbr5eu8Fz9gKJXSyyBZ2i6qGW8Ug7GqJF8W_EXhrLib9L3cZeSMpX2-BFFuXGez1zhMv49brYElQzf5b8VQQ8mIzSrmoeQce9o2/w400-h106/CDL%20GRI%202-8.JPG" width="400" /></a></div> </div><div style="text-align: justify;"><b>Diageo</b> discloses against 2-8 in the <a href="https://media.diageocms.com/diageo-corporate-media/media/gofp3ep0/diageo_esg_reporting-index_2022.pdf" target="_blank">GRI Content Index</a> of its 2022 ESG Report. This disclosure describes different categories of workers who are not employees, but makes no reference to workers in outsourced production operations. If any of Diageo’s outsourced plants operate under “high control”, they would need to be included. Also, no reference to year-on-year fluctuation. </div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi98yB5mVgEI6G9dktcel8UbpWbx1iUoHItLZzSaptjohvE0clv5mPa2kHs2itxhUfz4pjESOfzMX_7ZfYYrWtlxq-DLkdu-Mr2309rVND1Z097nkk4TECZrcDDKjl07jwFzKK0fBV4VLOMYiO6cyS3WFDgJfEEIHLaW-A4Lm6016XfTcVwtpzclnwJ/s1874/DIAGEO22%20GRI2.8.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="605" data-original-width="1874" height="129" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi98yB5mVgEI6G9dktcel8UbpWbx1iUoHItLZzSaptjohvE0clv5mPa2kHs2itxhUfz4pjESOfzMX_7ZfYYrWtlxq-DLkdu-Mr2309rVND1Z097nkk4TECZrcDDKjl07jwFzKK0fBV4VLOMYiO6cyS3WFDgJfEEIHLaW-A4Lm6016XfTcVwtpzclnwJ/w400-h129/DIAGEO22%20GRI2.8.JPG" width="400" /></a></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">As with many global garment manufacturers, transparency of the supply chain is more common, whether or not the reporter uses GRI. <b>H&M</b> is however a GRI Reporter and Universal Standards early adopter and provides an overview of workers who are not employees in the supply chain in its <a href="https://hmgroup.com/wp-content/uploads/2022/03/HM-Group-Sustainability-Disclosure-2021.pdf" target="_blank">2021 Group Sustainability Disclosure</a>. H&M also discloses much detail about the conditions of employment through their supply chain including wages paid to workers in supply factories in different countries. But as far as Disclosure 2-8 is concerned, there appears to be no mention of other agency or contractor workers at H&M’s own sites. </div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEixwhJkyk5pDg73Vsk-UI-wUmpD5nisY3n7ors3SfngJTYgK82P6-5OyGqXbJOMsv4oUvHMHx5tUqV0UFsgmvk-lkWifsg9NNMDwBb1nBcZJVBwxF1TNlTPX_Q0IedIV06_mcEM8cY-iIT8si7veVt4VtDW0Bp0DJpiQukqhkqN8nN4Br9mZ-V1mW6n/s924/HM21%20GRI%202.8.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="602" data-original-width="924" height="260" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEixwhJkyk5pDg73Vsk-UI-wUmpD5nisY3n7ors3SfngJTYgK82P6-5OyGqXbJOMsv4oUvHMHx5tUqV0UFsgmvk-lkWifsg9NNMDwBb1nBcZJVBwxF1TNlTPX_Q0IedIV06_mcEM8cY-iIT8si7veVt4VtDW0Bp0DJpiQukqhkqN8nN4Br9mZ-V1mW6n/w400-h260/HM21%20GRI%202.8.JPG" width="400" /></a></div><br /><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Korean tire maker <b>Hankook Tire & Technology’s</b> <a href="https://www.hankooktire.com/wsvc/api/pdf-viewer/document.servlet?documentPath=/content/dam/hankooktire/global/pdf/esg/esg_esg%EB%B3%B4%EA%B3%A0%EC%84%9C/eng/2021-22_ESG_ENG.pdf" target="_blank">ESG Report 2021/22</a> includes a brief response to GRI 2.8 in the GRI Content Index. Short and to the point. Not clear whether subcontractors includes all types of services or only production-related work at the plants. But it’s something. </div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhIm0HnT1bpfzDQp3-A6q09IjXNN140oloFc4jWxgTBiA7kaP72_X7jR1SDeIwqyOaw1BzD8Ba8ewyE73t5QTwLkLXtBD39e_F9Cug7QUGMTac1e-BwAzLtUCt9syzwGgrDWTlXguFVXkp9yo8_6OvKM-gly15PEjI7PzdSKr8J0wkFVAEWWwk7jENf/s1566/HANKOOK%202021%20GRI2.8.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="58" data-original-width="1566" height="15" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhIm0HnT1bpfzDQp3-A6q09IjXNN140oloFc4jWxgTBiA7kaP72_X7jR1SDeIwqyOaw1BzD8Ba8ewyE73t5QTwLkLXtBD39e_F9Cug7QUGMTac1e-BwAzLtUCt9syzwGgrDWTlXguFVXkp9yo8_6OvKM-gly15PEjI7PzdSKr8J0wkFVAEWWwk7jENf/w400-h15/HANKOOK%202021%20GRI2.8.JPG" width="400" /></a></div><br /><div style="text-align: justify;"><b>Levi Strauss & Co’s</b> <a href="https://www.levistrauss.com/sustainability-report/community/supply-chain/" target="_blank">2021 Sustainability Report</a> (with reference to GRI Standards, does not claim to be In Accordance but includes a GRI Content Index) includes a response to GRI 2.8 that is similar to the approach of H&M, referencing workers at supply chain factories but not other categories of workers.
</div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhRy6yUm0VbV8g7U7kphbfA5Lv-WXOWfktQU61bo7mqllHgFKk4CE8JEz_Mb17AeK8E4G3FTiDsQA8znjs81GRuxeaUl-AZUMwDYPA0vMYCBFbNrFex3vXGeqZnwslNGHrvKiatJVXfAQOHeEeFyWQJbYJty7wkFvyExhtRUa0BovLFy03JkKXCTd7g/s1445/LEVISTRAUSS21%20GRI%202.8.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="558" data-original-width="1445" height="155" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhRy6yUm0VbV8g7U7kphbfA5Lv-WXOWfktQU61bo7mqllHgFKk4CE8JEz_Mb17AeK8E4G3FTiDsQA8znjs81GRuxeaUl-AZUMwDYPA0vMYCBFbNrFex3vXGeqZnwslNGHrvKiatJVXfAQOHeEeFyWQJbYJty7wkFvyExhtRUa0BovLFy03JkKXCTd7g/w400-h155/LEVISTRAUSS21%20GRI%202.8.JPG" width="400" /></a></div><br /><div style="text-align: justify;">Houston-based chemical company <b>Westlake’s<span style="color: #cc0000;"> </span></b><a href="https://www.westlake.com/sites/default/files/Westlake%20-%20ESG%20Appendix%202021%20-%20v5.0.pdf" target="_blank">2021 ESG Report’s GRI and SASB Appendix</a> includes a GRI 2.8 disclosure that explains the company’s approach but provides no data. Better than no response at all. What’s an insignificant portion of the workforce? Less than 100? Less than 1,000? Westlake employees 14,000 people.</div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj0uw3f4JBXXqLkfIX831B7D3hQjEZzFKmgpFDQL9c7nJifn1K5zq-Lks_Wbxi8L9d-zsRat_6SxD2fEaNzomZBo38-y2AbMKYuyA1Q2GsbgjHIJuKo4guhIBQ4hJKABKrlP0T1YjipdCc/s1429/WESTLAKE21+GRI+2.8.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="268" data-original-width="1429" height="75" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj0uw3f4JBXXqLkfIX831B7D3hQjEZzFKmgpFDQL9c7nJifn1K5zq-Lks_Wbxi8L9d-zsRat_6SxD2fEaNzomZBo38-y2AbMKYuyA1Q2GsbgjHIJuKo4guhIBQ4hJKABKrlP0T1YjipdCc/w400-h75/WESTLAKE21+GRI+2.8.JPG" width="400" /></a></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">So far, all the companies mentioned have made some attempt at responding to GRI 2.8, even if all but one failed to provide a complete disclosure.
The following companies did not provide any information or data, or provided the wrong information: </div><div style="text-align: justify;"><br /></div><h4 style="text-align: justify;"><span style="color: red;">Two companies omit Disclosure 2.8 from the GRI Content Index</span></h4><div style="text-align: justify;">U.S. based specialty food ingredients company <b>Darling Ingredients</b>' <a href="https://d1ip4j1950xau.cloudfront.net/Corporate/Darlingii.com%202020/ESG/ESG%20Report%20Darling%20Ingredients_9.25.22_FINAL.pdf" target="_blank">2022 ESG Report GRI Content Index</a> has a neat way of dealing with GRI 2.8. Just omit it from the Content Index.</div><div style="text-align: justify;"> </div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgwBL6wjY9PrgemEG80Rs3c8uY6xNnn96uDZnt_UDPATh6mDcUVOL4vSFc0S99dolvhY7sUwtJe2Zxx-S9E_UWuU3wXSbnko7DZee0o7rIdVVeBaolkyi360HWcw75ZBSNQGAGrvhdLks4KosJeWMbuy8jjtCXTYKPt8Bgfxv3YqE92QqxOjbvzJlx5/s1545/DARLING%202022%20GRI2.8.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="756" data-original-width="1545" height="196" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgwBL6wjY9PrgemEG80Rs3c8uY6xNnn96uDZnt_UDPATh6mDcUVOL4vSFc0S99dolvhY7sUwtJe2Zxx-S9E_UWuU3wXSbnko7DZee0o7rIdVVeBaolkyi360HWcw75ZBSNQGAGrvhdLks4KosJeWMbuy8jjtCXTYKPt8Bgfxv3YqE92QqxOjbvzJlx5/w400-h196/DARLING%202022%20GRI2.8.JPG" width="400" /></a></div><br /><div style="text-align: justify;"><b>Galaxy</b> is a digital asset and blockchain leader providing institutions, startups, and qualified individuals access to the crypto economy. Hmmmm. There’s a business I don’t know much about. In any event, Galaxy had the same idea as Darling Ingredients. Just skip it. Galaxy’s <a href="https://assets.ctfassets.net/f2k4wquz44by/1SixIqAv0gE0P16rkjfzca/abe3f2cd223134646706d2c91f149d56/Galaxy_2021_Sustainability_Report.pdf" target="_blank">Annual Sustainability Report 2021</a> includes a GRI Content Index. </div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg5PlhPuDxqDbSY350xR6htvCPJR3LFQ3SOomh578NKZw2t87vGxebk6IBctxz3ykYKp0RT1DIf5azTVpOn7eO4bH_Bak9welx3BJr-6G_C1Re5PuL2NgIYw1ub6jk7U0mw09cVEWaFSxom0o72GNjIsIbk6TRLRCCMEXSnV1WtG3oi7yIjziwV6Kpt/s2705/GALAXY21%20GRI2.8.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="453" data-original-width="2705" height="68" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg5PlhPuDxqDbSY350xR6htvCPJR3LFQ3SOomh578NKZw2t87vGxebk6IBctxz3ykYKp0RT1DIf5azTVpOn7eO4bH_Bak9welx3BJr-6G_C1Re5PuL2NgIYw1ub6jk7U0mw09cVEWaFSxom0o72GNjIsIbk6TRLRCCMEXSnV1WtG3oi7yIjziwV6Kpt/w400-h68/GALAXY21%20GRI2.8.JPG" width="400" /></a></div><br /><div style="text-align: justify;">In fairness, both Darling Ingredients and Galaxy reference GRI Standards and do not claim to be In Accordance. </div><h4 style="text-align: justify;"><span style="color: red;">Two companies hide the disclosure</span></h4><div style="text-align: justify;">These companies claim their reports are “In Accordance” and include a page reference for Disclosure 2.8 in the GRI Content Index. But, the disclosures are actually nowhere to be found is nowhere to be found in the reports. Hide and seek, anyone? </div><div style="text-align: justify;"><a href="https://www.medtronic.com/content/dam/medtronic-wide/public/brand-corporate-assets/resources/2022-integrated-report_corpmark_mdt.pdf" target="_blank"><b><span style="color: black;">Medtronic</span></b> 2022 Integrated Performance Report</a></div><div style="text-align: justify;"><a href="https://www.piramal.com/wp-content/uploads/2022/10/PPL-_Sustainability_Report_FY-21-22.pdf" target="_blank"><b><span style="color: black;">Piramal Pharma</span> </b>Limited Sustainability Report 2021-22</a> </div><h4 style="text-align: justify;"><span style="color: red;">Three companies advise that the information is not available</span></h4><div style="text-align: justify;"><b>AT&T’s</b> fiscal <a href="https://about.att.com/csr/home/reporting/indexes/gri.html" target="_blank">2021 ESG Report GRI Content Index</a> notes: </div><div style="text-align: justify;">AT&T is not able to provide this data, as it is proprietary and confidential. </div><div style="text-align: justify;">Hmm. I wonder what’s so proprietary and confidential about that?</div><div style="text-align: justify;"><b><br /></b></div><div style="text-align: justify;"><b>Ford Motor Company's</b> <a href="https://corporate.ford.com/content/dam/corporate/us/en-us/documents/reports/esg-data-book.pdf" target="_blank">2021 ESG Data Book</a> notes: </div><div style="text-align: justify;">Information unavailable – this data is not readily available and is not tracked today. </div><div style="text-align: justify;"><b><br /></b></div><div style="text-align: justify;"><b>THREDUP’s</b> <a href="https://ir.thredup.com/static-files/7979584e-e4ea-4111-a021-1f45dd96fa9f" target="_blank">2021 Impact Report</a> notes: </div><div style="text-align: justify;">This data is currently unavailable. We are working to expand how we report out these metrics in future reports. </div><h4 style="text-align: justify;"><span style="color: red;">One company provides the wrong information</span> </h4><div style="text-align: justify;"><b>Under Armour’s</b> “In Accordance” <a href="https://about.underarmour.com/sites/default/files/2022-09/2021SustainabilityandImpactReport_UnderArmour.pdf" target="_blank">2021 Sustainability Impact Report</a> responds to Disclose 2.8 by referencing the Human Capital section of the company’s Annual Report which provides data on employees who are employees and not workers who are not employees. </div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiduOOBlIUrhPUcI7-5i5sBSU1U0bHih8JrpwB825uylIa5NkmNgzxqaZUcgoMGqsgB0ntONXBPbNxjIOlFXXGeuf9_tC5RBCPF14zQ2Vdtoam3DRnZvSOOZAfsOsVv5EY_l7V4nMKfoR3k39prSBmZRQRoOyQ8C_1o7gPeeGMcKWheN68rH2mrGQ5I/s1321/UNDERARMOUR21%20AR%20GRI2.8.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="131" data-original-width="1321" height="40" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiduOOBlIUrhPUcI7-5i5sBSU1U0bHih8JrpwB825uylIa5NkmNgzxqaZUcgoMGqsgB0ntONXBPbNxjIOlFXXGeuf9_tC5RBCPF14zQ2Vdtoam3DRnZvSOOZAfsOsVv5EY_l7V4nMKfoR3k39prSBmZRQRoOyQ8C_1o7gPeeGMcKWheN68rH2mrGQ5I/w400-h40/UNDERARMOUR21%20AR%20GRI2.8.JPG" width="400" /></a></div><div style="text-align: justify;"><br /></div><h4 style="text-align: justify;"><span style="color: red;">One company just doesn’t report</span> </h4><div style="text-align: justify;"><b>PepsiCo</b> simply advises in the <a href="https://www.pepsico.com/docs/default-source/sustainability-and-esg-topics/pepsico_2021_gri_index.pdf" target="_blank">2021 GRI Content Index</a>: </div><div style="text-align: justify;">Not reported. </div><div style="text-align: justify;">But PepsiCo does not claim to report "In Accordance". Otherwise a reason for omission would be required.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Clearly, then, the Universal Standards may require a little extra consideration and in some cases, this is not so simple. Disclosure 2-8 in particular is a headache for most companies, as it requires securing data from sometimes complex supply chains. Not surprising then that in this first year of use of the Universal Standards, there are some inconsistencies and some gaps. It's all part of the learning curve and <b>thank you again</b> to all the sixteen companies who have already entered the GRI Brave New World and allowed me to see how it's going down and hopefully allow others to learn. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Clearly, if GRI offered a free supply of ice cream for reporters for full and accurate reporting against Disclosure 2-8, I would have had nothing to write about. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">And if you are a worker who is not an employee. Don't despair. I am pretty sure you will become visible in future reporting cycles.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><br /></div><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-size: x-small;"><span style="font-family: inherit;"><span><div style="text-align: justify;"><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-size: x-small;"><span style="font-family: inherit;"><span style="text-align: justify;"><br /></span></span></span></div><div style="text-align: justify;"><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-size: x-small;"><span style="font-family: inherit;"><span style="text-align: justify;"><br /></span></span></span></div><span style="text-align: justify;">e</span></span>laine cohen, <b>GCB.D</b>: <a href="https://competentboards.com/" style="color: blue;" target="_blank">ESG Competent Boards Certified (2021)</a>, <b>Sustainability Strategy and Disclosure Specialist</b>, former HR Professional, Ice Cream Addict. Owner/Manager of <span style="color: blue; text-align: justify;"><a href="http://www.b-yond.biz/" style="color: #0066cc;" target="_blank"><b>Beyond Business Ltd</b></a></span><span style="text-align: justify;">, </span>an inspired Sustainability Strategy and Reporting firm having supported <b>>160 </b><a href="http://www.b-yond.biz/clients-reports" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;"><b>client reports</b></span></a><span style="text-align: justify;"> to date; </span><b style="text-align: justify;">author </b><span style="text-align: justify;">of </span><a href="http://www.b-yond.biz/our-books" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">three books and several chapters</span></a><span style="text-align: justify;"> on Sustainability Reporting and the Human Resources connection to CSR; frequent </span><b style="text-align: justify;">chair and speaker </b><span style="text-align: justify;">at sustainability events and </span><b style="text-align: justify;">judge</b><span style="text-align: justify;"> in several sustainability awards programs each year. Contact me via </span><a href="http://www.twitter.com/elainecohen" style="color: #0066cc; text-align: justify;" target="_blank">Twitter</a><span style="text-align: justify;"> , </span><a href="https://www.linkedin.com/in/elainecohen/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">LinkedIn</span></a><span style="text-align: justify;"> or via </span><a href="http://www.b-yond.biz/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">Beyond Business</span></a></span></span>elainehttp://www.blogger.com/profile/07433863039389159395noreply@blogger.com0tag:blogger.com,1999:blog-8008724049496903547.post-91031964545703372392022-06-17T21:48:00.001+03:002022-06-17T21:48:09.916+03:00Perspectives from Mr. Impact: GRI CEO Eelco van der Enden<div style="text-align: justify;">The new CEO of GRI, Eelco van der Enden is popping up everywhere these days. Webinars, round tables, conferences, colloquiums. And now he is popping up on the CSR Reporting Blog. Of course he is. The CSR Reporting Blog loves GRI (and loves to challenge GRI as well 😁). Eelco obviously has a lot to say on the topic of corporate sustainability disclosure, but then, these days, who doesn’t?! </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The current discourse is polarized into two camps: the<i> let’s-live-better</i> camp and the <i>let’s-make-more-money</i> camp. Of course, players in each camp acknowledge the relevance and importance of the other camp (as long as they don’t get too close to the campfire). Some talk about building blocks, some reference interoperability. Some say <i>let’s live better</i> comes before<i> let’s make more money</i>. Some say <i>let’s make more money</i> is necessary to achieve <i>let’s live better</i>. Some say these are equal grounds on the same camp site. Some say they will never be equal. Mervyn King, the South African governance guru, talks about moving from the “current clutter and confusion to a comprehensive global reporting system”. Frankly, the only clutter and confusion at the moment is the weird discourse that’s going on about how to change reporting. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><span style="color: red;"><b>A new, better, fantastic, wonderful reporting system </b></span></div><div style="text-align: justify;">Everyone seems to think a new era has been ushered in with the development of modern standards, and observers are thrilled with the fact there is momentum, with more exposure drafts to review in these few months than there has been in years. But the reality is that the debate is now about the differences in the new standards and the relative merits of each, rather than about the overall value of better transparency and how it will help safeguard our future. So much so that ERM and Persefone invested time and effort in the production of a <a href="https://www.sustainability.com/globalassets/sustainability.com/thinking/pdfs/2022/comparing-the-sec-efra-and-issb.pdf" target="_blank">report</a> that analyzes the differences between the ISSB, EFRAG and SEC proposals. I mean, where are we? Rather than deploying existing frameworks and standards, the new voices in sustainability reporting are creating new volumes of disclosure and metrics proposals that may have similar cores, but are sufficiently different to require separate reporting considerations, meaning that everyone is now engaged in comparing, contrasting and concluding, rather than in actually improving disclosure. There might be a reasonable endpoint after all of this, but the continued messiness of it all is quite exasperating. Has no-one ever heard of copy/paste? </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The <i>let’s-make-more-money </i>camp’s claim to fame is the premise that they know what investors want. Yes, you got it. Make more money. This seems to me to be a fundamental flaw. There are many types of investors, several of whom are looking to make a positive return on investment while aligning with the values of the <i>let’s-live-better </i>camp. I do not believe that a set of standards based solely on financial value creation, that may be influenced by estimated and extrapolated environmental and social factors, is enough to lead investors to decision making that will either deliver better returns or sustainable corporations. Eelco van der Enden often talks about the fact that there are two pillars of corporate reporting – the financial pillar and the impact pillar – and this is a winning concept. He says that each is widely used along fairly consistent lines by the largest companies around the world, and many of the not-so-largest. Eelco asks why we would reinvent the wheel when we have proof of concept? Financial reporting works; sustainability reporting works; taken together, and with ongoing improvements to the existing standards, all the information needed to assess corporate performance and risk is in place, he says. Maybe all we need to do is get better at that, rather than invent new stuff. Eelco told me:</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><i>“Thinking you can introduce a new comprehensive reporting system from nothing, I think, is fantasy. We have some very well proven concepts used by basically everyone, so it becomes about convergence and alignment, whether it’s mandatory or not or whether assurance is mandatory or not. But saying what we have all been doing to date is rubbish and now we need to change it all, is not going to lead us to a very good place. I represent a purpose, not a legal entity. This purpose is about reporting facts, not perceptions, for multiple stakeholders, not just investors. In the <a href="https://www.ifcreview.com/news/2022/may/international-tax-more-than-20-of-amazon-shareholders-vote-for-greater-tax-transparency/" target="_blank">recent Amazon vote</a>, more than 20% of independent shareholders, including some of the largest investors, voted in favor of greater tax transparency using the voluntary GRI Tax Standard. Other frameworks are using GRI – the WEF Stakeholder Capitalism Metrics use GRI for 17 out of 22 of their metrics. EFRAG is making use of GRI standards with some tweaks, to allow for local regulations, but they are keeping the baseline principles intact. I do not see a need to start all over again. On the other hand, there are proposals for mandatory assurance to put sustainability reporting on an equal footing with financial reporting. I say this is a good thing. If we are serious about the stakeholder-centric model, we must ensure that reported data is robust.” </i></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b><span style="color: red;">Christmas Parties with the ISSB </span></b></div><div style="text-align: justify;">Despite this, GRI has joined hands with ISSB with a <a href="https://www.globalreporting.org/about-gri/news-center/ifrs-foundation-and-gri-to-align-capital-market-and-multi-stakeholder-standards/" target="_blank">Memorandum of Understanding</a>. The ISSB proposals completely bypass anything GRI, other than giving a token nod to the fact that “impact” reporting is somewhere out there on the landscape in the <i>let’s-live-better</i> camp, and may be of interest to someone somewhere. The MOU is hyped as an agreement to create an interconnected approach for sustainability disclosures. What does this really mean? Eelco explains: </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><i>“ISSB has an investor lens. But there is not one type of investor, not all of them are only looking at enterprise value creation. IFRS and ISSB appreciate there is a gap on their flank that needs to be covered. With this MOU, they endorse the role GRI has for the other stakeholders which are not in their target group. The symbolic significance of this is important; for the first time, capital markets are expressing themselves in a way that addresses broader needs, and this should be taken note of by investors. It’s definitely a polarizing discussion. Some of the comments we have been hearing include, say, on the one hand, that GRI has sold its soul to capitalism, while on the other hand, the IFRS foundation has taken a sharp turn to the left. The agreement with ISSB is not about the technical aspects – we have a very well-equipped standards division and 25 years’ experience, we will help ISSB if they need help. So, it really comes down to governance. If you believe in the two pillars approach, people will want to see how the balance between the two is being managed, so there will need to be an overarching, aligned governance mechanism that will enable regulators to have sufficient faith in the robustness of this structure and the roles of the players involved. At GRI, we have an extremely robust due process. I personally was on the Technical Committee for the new <a href="https://www.globalreporting.org/standards/standards-development/topic-standard-project-for-tax/" target="_blank">GRI 207 Tax Standard</a> and I can tell you it was very hard work indeed. We need to get better at the fine art of compromise. Moving ahead, we will see how this convergence works. Focusing on governance rather than technicalities is what will make the difference for regulators.” </i></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">My reading of this is that GRI and ISSB will continue to go their different ways, with different objectives, different audiences and different standards. However, rather than being public adversaries, it will be a sort of hands-off co-existence and an occasional joint Christmas Party. Which brings reporters back to where we have always been; a system for financial reporting (including financial-related sustainability topics) and a system for sustainability reporting. Plus ça change… But, in Eelco’s view, that’s not such a bad thing. </div><div><br /></div><div><span style="color: red;"><b>GRI – is a 25 year legacy enough? </b></span></div><div style="text-align: justify;">GRI’s new Universal Standards kick in from January. The reporting burden will be more significant for companies who want to comply in full with GRI Standards. There are more extensive disclosures on governance, human rights, topic disclosures on material topics, and an entire restructure of the General (Universal) Standards, meaning that GRI reporters will have a LOT to do to reshape their disclosures for the next cycle if they want to remain compliant. Given that ISSB and ESRS drafts are now public, coupled with U.S. SEC requirements, reporters have a good idea of the direction of travel. Several companies already bypass GRI and report using SASB and TCFD only. The question will be whether companies will even bother to invest the extra effort to stay with the new GRI Standards, or whether they will simply pick’n’mix, choosing very selectively the individual GRI standards relevant to them, and bypassing the Universal Standards entirely? I wondered what Eelco thought about that. He shared as follows: </div><div><br /></div><div style="text-align: justify;"><i>“That’s a very good question. It’s more than just about whether the new Universal Standards are more complex or challenging for reporters. It relates to our vision about what the future reporting landscape should look like from an impact as well as a financial standpoint. Yes, it needs effort, the same as every new standard, it will add a burden for organizations because it is different. But the key point is that the Universal Standards are fit for purpose and fit for the future. Five years on from when GRI transitioned from providing guidelines to setting standards, it was time to modernize and renew these disclosure requirements. We have not heard from companies so far that they do not intend to continue to report fully using GRI Standards. But now, of course, there are new options, including the introduction of the ISSB and EFRAG standards. I can only answer fairly if we think about these other initiatives out there. And that’s why we are proposing two pillars. ISSB is based on IFRS international accounting standards. GRI is based on multistakeholder dialogue. Combine these two and you have a system that has been around for more than 20 years. Nearly 11,000 companies use GRI and also report against mandatory financial frameworks. The platform exists. It works. The mandate of the SEC in the U.S. will always be investors, that won’t change. Nothing new from that end. We might see more incorporation of SASB standards into these requirements but the focus will not change.” </i></div><div><br /></div><div style="text-align: justify;">That’s an optimistic view. From my perspective, while it tends to make sense, the danger is that new standards may drive companies down to the lowest common denominator i.e., what regulation requires (assuming EU and ISSB standards become law in different jurisdictions around the world). In the absence of regulation, as has mainly been the case so far, voluntary disclosure not only flourished, but it also became a competitive advantage. If your peers use GRI, then you use GRI. In a brave new world where sustainability reporting (of sorts) is mandated, and required to be externally assured, and will carry the same regulatory and legal weight as financial reporting, companies may look to minimize the reporting burden to that which is unavoidable. I think a role of GRI through whatever this transition is will be to truly land the use of GRI Standards as the only way and the right way to provide impact transparency for all stakeholders, both as impact reporting in its own right and as a precursor for additional finance-related disclosures. If only a fraction of everything we have said about the value of sustainability reporting over the past 20 years is true, then ditching GRI for the <i>let’s-make-more-money</i> camp would be tragic. I predict there will be some fallout, and some lack of uptake, but I doubt most companies will do a full U-turn. I think GRI will continue to be the framework of choice for impact disclosure and the basis for effective sustainability disclosure as it affects the financials. </div><div><br /></div><div><b><span style="color: red;">Materiality – mind the gap </span></b></div><div style="text-align: justify;">So, let’s come back to materiality. Everything comes back to materiality. You all know by now that GRI’s version of impact materiality takes account of the organization’s most significant impacts on the economy, environment, and people, including impacts on their human rights.
Impact materiality is central to GRI’s right to exist. Yet even the widespread use of GRI standards has not led to a consistent, clear, due-process-driven, transparent and verifiable methodology for determining material topics. The number of companies delivering a clear disclosure on how they actually determined material impacts, beyond asking selected (friendly) stakeholders for their multiple choice ticks, is probably less than the number of ice creams you can cram into a petri dish. Trying to work out how a company selected material topics is more often than not like staring down a black hole. There is some attempt to correct future practice in the new Universal Standards, in which the definition of materiality has been updated and there is more extensive guidance on process. But, as this is just guidance, I suspect that’s how companies will continue to treat it. (It’s guidance, let’s ignore it). I put this to Eelco: Why does GRI not bite the bullet and create a standard – not guidance or approach – for the process of developing a list of impact materiality topics? Given its central position in sustainability reporting, I find it baffling that GRI has never been willing to address this. Does it serve GRI’s purpose to deliberately leave this vague and open-ended?
And his reply:</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><i>“Yes, I will go back to the Standards Team with this question. I do believe a systems audit approach is needed, but I am not sure that it’s within GRI’s remit to come up with a standard like this. We have never been prescriptive about defining materiality, and there are many possible ways to address this. We do get questions about whether GRI is planning to develop a standard for preparing a materiality assessment. Perhaps this is something we could influence in partnership with other groups who might be better positioned to develop such a standard. This is something for consideration.” </i></div><div><br /></div><div style="text-align: justify;">I won’t hold my breath. The entire sustainability reporting proposition rests on how companies define materiality, and our trust in their process requires them to disclose it. I believe GRI is absolutely the best placed organization to develop a process standard such as this. Having companies everywhere using GRI standards without a consistent, auditable methodology for determining materiality is like inviting people to a Scrabble game where each player randomly decides the number of points for each letter. You can add up the scores but they actually mean nothing. </div><div><br /></div><div><b><span style="color: red;">When 5 months is like 50 years </span></b></div><div><span style="text-align: justify;">I asked Eelco how he would summarize his first five months at GRI and he replied: “<i>Like 50 years</i>”. That’s understandable. More has happened in the past five months in sustainability reporting than has happened since Adam ate the apple. </span></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">I asked Eelco what legacy he wants to leave at GRI.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><i>“I’d like to leave a resilient, financially independent organization that, in the two pillar structure, is the globally accepted pillar for impact reporting.” </i></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"> And some of the challenges GRI is facing? </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><i>“Externally, it’s getting GRI back in the front seat. We were not vocal enough about who we are and what we are all about. It’s very simple. We enable society to have a discussion based on facts, not perceptions, providing free standards as a public good. Internally, we need to increase our efforts to raise funds to help us deliver our purpose and create a stronger financial backbone. There is a lot to do. We need to double the size of the standards division, and generate revenues based on more services we provide. We must continue to recruit quality people who are or can become specialists in standard-setting. Our purpose appeals to people, it’s a fun workplace where everyone can make a difference. We must become more efficient, for example, we are now installing a new ERP which will enable us to get rid of a lot of manual work”.</i> </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">What is Eelco saying to reporters? </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><i>“There are criticisms of sustainability reporting and questions relating to how serious companies are about their environmental, social and governance commitments. I think that’s dangerous. Cynicism kills everything. Business leaders and investors should be very serious about this topic, it’s about helping make the world better for everyone. Short-termism is a problem. We must keep the flame alive and also look at how regulators are dealing with this and how large intragovernmental organizations are getting on board. To achieve public accountability based on comparable data, you need to make an investment. You can’t manage with volunteers. It must be managed professionally. It’s too important. Organizations complaining about the burden of compliance are those who are not transparent. It’s exactly that which builds mistrust. At GRI, we advocate for two pillars of reporting, and we are expert in the impact reporting pillar. We encourage all companies to report their impacts on the economy, society and the environment with the necessary degree of investment and leadership attention to help continue to build trust, build inclusive economies and protect our shared future.”</i> </div><div><br /></div><div style="text-align: center;"> <span style="color: red;">**********</span> </div><div><br /></div><div><div style="text-align: justify;"><span style="color: red;"><b>And a little note from me at the CSR Reporting Blog:</b></span>
I’d like to thank Eelco for generously spending time with me talking through these issues. We had a fun conversation and Eelco was not thrown by my direct and sometimes provocative questions. I believe the approach is clear. Do better what you do best and keep communication lines open. GRI’s focus is impact reporting, with a proven legacy of doing that best (although still not perfectly😏). All the peripheral noise around what investors need, want and how much data they can usefully integrate into their algorithms is exactly that: noise. I advocate for GRI-based impact reporting as the essential fundamental basis for corporate sustainability disclosure; starting with broad based GRI facilitates disclosure against every other standard and framework, as well as responses to mile-long investor analyst questionnaires. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">As usual, this post was written by me independently. No-one in GRI has influenced or requested to influence how I presented this conversation with Eelco. Of course, had they offered me a month’s free supply of ice cream, I might have used a few more superlatives 😁.</div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><div><br /></div><span style="background-color: white; font-size: x-small;"><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif;"><span style="font-family: inherit;"><span style="text-align: justify;">e</span>laine cohen, <b>GCB.D</b>: <a href="https://competentboards.com/" style="color: blue;" target="_blank">ESG Competent Boards Certified (2021)</a>, <b>Sustainability Strategy and Disclosure Specialist</b>, former HR Professional, Ice Cream Addict. Owner/Manager of <span style="color: blue; text-align: justify;"><a href="http://www.b-yond.biz/" style="color: #0066cc;" target="_blank"><b>Beyond Business Ltd</b></a></span><span style="text-align: justify;">, </span>an inspired Sustainability Strategy and Reporting firm having supported <b>>140 </b></span></span><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif;"><span style="font-family: inherit;"><a href="http://www.b-yond.biz/clients-reports" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;"><b>client reports</b></span></a><span style="text-align: justify;"> to date; </span><b style="text-align: justify;">author </b><span style="text-align: justify;">of </span><a href="http://www.b-yond.biz/our-books" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">three books and several chapters</span></a><span style="text-align: justify;"> on Sustainability Reporting and the Human Resources connection to CSR; frequent </span><b style="text-align: justify;">chair and speaker </b><span style="text-align: justify;">at sustainability events and </span><b style="text-align: justify;">judge</b><span style="text-align: justify;"> in several sustainability awards programs each year. Contact me via </span><a href="http://www.twitter.com/elainecohen" style="color: #0066cc; text-align: justify;" target="_blank">Twitter</a><span style="text-align: justify;"> , </span><a href="https://www.linkedin.com/in/elainecohen/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">LinkedIn</span></a><span style="text-align: justify;"> or via </span><a href="http://www.b-yond.biz/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">Beyond Business</span></a></span></span></span></div><div><span style="background-color: white; font-size: x-small;"><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif;"><br /></span></span></div><div><span style="background-color: white; font-size: x-small;"><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif;"><br /></span></span></div>elainehttp://www.blogger.com/profile/07433863039389159395noreply@blogger.com0tag:blogger.com,1999:blog-8008724049496903547.post-39668186332562310782022-05-08T12:30:00.000+03:002022-05-08T12:30:53.291+03:00Spinning with Sustainability Disclosure <div style="text-align: justify;">By now, everyone’s head is spinning, including mine, with the number of new frameworks and exposure drafts of sustainability disclosure requirements. With the hype being harmonization, decision-USEFULNESS, simplification, comparability and yes, interoperability, we might all be fooled into thinking that the life of a reporter will suddenly become a bed of roses. Let me correct that assumption. Perhaps a bed of nails might be a better analogy. Ha-ha. Better stock up on ice cream. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The winds of change are whooshing in three standards that will influence reporting in the coming years. Much has already been shared to explain and interpret these new whooshes, but I keep getting asked to share my take on things so here are some preliminary thoughts. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>IFRS Sustainability Disclosure Standard:</b> So far, there are two draft documents for public consultation until July 29,2022 </div><div style="text-align: justify;"><ul><li><a href="https://www.ifrs.org/content/dam/ifrs/project/general-sustainability-related-disclosures/exposure-draft-ifrs-s1-general-requirements-for-disclosure-of-sustainability-related-financial-information.pdf" target="_blank">IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information</a> </li><li><a href="https://www.ifrs.org/content/dam/ifrs/project/climate-related-disclosures/issb-exposure-draft-2022-2-climate-related-disclosures.pdf " target="_blank">IFRS S2 Climate-related Disclosures</a> </li></ul></div><div style="text-align: justify;">IFRS Standards, created by the newly created International Sustainability Standards Board (ISSB), are intended to be ratified by country jurisdictions to become law, in the same way as IFRS accounting standards are applied. These standards are geared to those who consider sustainability as an element of enterprise value creation only insofar as it affects the financial interests of those who fund and invest in companies. </div><div style="text-align: justify;"><b>European Sustainability Reporting Standards (ESRS):</b> The proposed draft for consultation by August 8, 2022, includes a suite of standards required under the EU Corporate Sustainability Reporting Directive (CSRD) proposal that covers the full range of sustainability matters - environment, social and governance - as developed by the European Financial Reporting Advisory Group (EFRAG). These standards, after conclusion of the consultation period and subsequent modifications, will become law, affecting around 50,000 large and listed companies in Europe. The ESRS are designed to address the needs of all stakeholders, not just those with a financial interest. In the next phase, EFRAG intends to publish a set of sector-related disclosure requirements (as they obviously have budget to spare – SASB standards and the ongoing GRI sector standards clearly aren’t European enough). When ratified, the intention is to apply ESRS to disclosures from publication year: 2024 (on a phased basis). </div><div style="text-align: justify;"><b>U.S. SEC Climate-Related Disclosure</b> rules for the inclusion of climate related risks and metrics in annual reporting on Form 10-K. This is another investor-focused initiative and will apply to listed companies, with a phased implementation starting from filing year 2024. </div><div style="text-align: justify;"><b>Let’s not forget also GRI’s Sustainability Reporting Standards:</b> The revised GRI Standards structure including the new Universal Standards kick in for reports published in 2023. GRI are voluntary standards that are not expected to become law. GRI is keeping behind the scenes when it comes to the EFRAG and ISSB developments, signing collaboration agreements with both, relying on its historical positioning, having driven sustainability disclosure for the past 30 years, well before the EU or any investor community even knew how to spell ESG. GRI may now have succeeded to the point of irrelevance, having created the conditions in which companies may bypass its standards and disclose only what the new laws will require. While the EU standards build on the basis established by GRI, the ISSB standards do not.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Richard Howitt, a long-time influencer in the European sustainability disclosure space, <a href="https://www.reutersevents.com/sustainability/how-european-and-global-sustainability-standards-corporate-reporting-can-and-will-converge" target="_blank">recently set out</a> the forces for convergence and divergence in these new EFRAG and ISSB standards. With only the teeniest smidgeon of optimism regarding whether both the European and the international sustainability reporting standards will actually move in the same direction, he sets out a 10-point plan for better cooperation. Good luck with that. </div><div style="text-align: justify;">However, even if we end up with two sets of different standards (ESRS and IFRS/ISSB) (hint: we will), it’s not ever going to be an either/or. Companies in ISSB jurisdictions have stakeholders beyond the financial community and will not be reasonably able to limit themselves to financial-related sustainability disclosures. As we have seen time and time again, it’s the non-financial community that has driven disclosure on specific topics, and this will continue to be the case. This is where GRI claims its relevance – as a complement (or precursor) to finance-related sustainability disclosures as well as being the basis for non-financial disclosures. </div><div style="text-align: justify;">Before we do a deep-dive into each of these changes and what they mean for reporters, alongside the many other reporting demands that companies accommodate – local SEC rules in different countries, disclosure demands from rankers and raters, voluntary-non-voluntary frameworks such as TCFD, CDP and PRI, EU Taxonomy, SDG etc. – let’s look at the overarching directions that seem to be emerging.</div><div style="text-align: justify;"><br /></div><h3 style="text-align: justify;"><b><span style="color: red;">Materiality: The Star(s) of the Show</span></b> </h3><div style="text-align: justify;">We have seen an explosion in materiality related terms – double materiality, blended materiality, nested materiality, ESG materiality, financial materiality and more recently, impact materiality. Materiality is apparently one of the most versatile words in the sustainability reporting lexicon. As I was writing, I even stumbled across a new term (though I doubt it’s likely to catch on): <a href="https://corpgov.law.harvard.edu/2022/05/04/one-small-step-from-financial-materiality-to-sesquimateriality-a-critical-conceptual-leap-for-the-issb/" target="_blank">sesquimateriality</a>. I even had to look up the definition of <a href="https://www.merriam-webster.com/dictionary/sesqui-" target="_blank">sesqui</a>. This brilliant review by Frederick Alexander (The Shareholder Commons) takes us through the rationale for challenging the ISSB approach on ESG information that affects (only) enterprise value, saying that material beta (non-financial) information is just as necessary as material alpha (financial) information both for investors and for society. He writes: “<i>On its face, the exclusive choice of enterprise value as the measuring stick for materiality means the standards will only be useful for investors who want to use environmental and social data to determine how a particular company will perform financially, in order to decide whether to buy or sell it, or perhaps to use their shareholder rights to push the company to change its practices to improve future cash flows. In light of the diversification mandate of Modern Portfolio Theory, and the importance of beta to diversified investors, this anachronistic hyper-focus on enterprise value is troubling.</i>” Read this article. It’s excellent. (Even though the terminology is a bit of a mouthful). Essentially, the conclusion is that ISSB adopters should report more broadly on impacts and not limit themselves to the narrow scope of ISSB. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">A similar point was made by sustainability thought-leader Andrew Winston, who <a href="https://sloanreview.mit.edu/article/whats-lost-when-we-talk-esg-and-not-sustainability/" target="_blank">bemoans</a> the use of the term ESG instead of sustainability. He says: <i>Seeing all things through the lens of markets and the quest for shareholder maximization is largely how we got into this mess in the first place. We’ve put profits above literally all else, and it’s leading to ecological collapse and vast inequality……. Just as fossil fuel companies should not lead the planning of our energy future, it seems unwise to let finance lead the journey to a humane, more just, less greed-filled form of capitalism.</i></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>ISSB picks financial materiality</b> in its proposed IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information. The materiality scope in IFRS S1 standard includes the following guidance:
<i>The objective of [draft] IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information is to require an entity to disclose information about its significant sustainability-related risks and opportunities that is useful to the primary users of general purpose financial reporting when they assess enterprise value and decide whether to provide resources to the entity.
Sustainability-related risks and opportunities that cannot reasonably be expected to affect assessments of an entity’s enterprise value by primary users of general purpose financial reporting are outside the scope of this [draft] Standard. </i></div><div style="text-align: justify;"><b>ESRS opts for double materiality </b>– making the distinction between impact materiality and financial materiality. The materiality scope in ESRS 1 General principles includes the following guidance:
<i>The undertaking shall report sustainability matters on the basis of the double materiality principle. Materiality is to be understood as the criterion for the inclusion of specific information in sustainability reports. It reflects (i) the significance of the information in relation to the phenomenon it purports to depict or explain, as well as (ii) its capacity to meet the needs of the stakeholders of the undertaking, allowing for proper decision-making, and more generally (iii) the needs for transparency corresponding to the European public good.</i> </div><div style="text-align: justify;"><b>Double materiality</b> means that if a topic is material EITHER from an impact standpoint OR from a financial standpoint, or of course, both, it must be included. </div><div style="text-align: justify;"><b>Impact materiality is defined as:</b> connected to actual or potential significant impacts by the undertaking on people or the environment over the short-, medium- or long-term, and covers upstream and downstream value chain impacts. </div><div style="text-align: justify;"><b>Financial materiality is defined as: </b>triggers or may trigger significant financial effects on undertakings, i.e., it generates or may generate significant risks or opportunities that influence or are likely to influence the future cash flows and therefore the enterprise value of the undertaking in the short-, medium- or long-term, but it is not captured or not yet fully captured by financial reporting at the reporting date. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">A shout out to <a href="https://www.linkedin.com/in/donatocalace/" target="_blank">Donato Calace</a> of Datamaran who shared this example on LinkedIn of a new way of representing impact materiality and financial materiality in <a href="https://www.enel.com/content/dam/enel-com/documenti/investitori/sostenibilita/2021/sustainability-report_2021.pdf" target="_blank">Enel’s 2021 Sustainability Report</a>. </div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjFsB0BJUwUyrYDaZ9GplaPhq1uc8SeGVyzxjaMdRCVb2WaSiClHv-p6h1XpsoWatM0h2vClDHRxAasgr_PJkyW9ha721aBt8vU8BYnjd_Sp8VK5G-HD5rLhzJ7Bzu9hpXldlxe4lehzCbsZsoQ7bhpN1qFWV4nGQiMSq6MNW1KQnF1hsAs54WNFqDo/s1846/ENEL21%20materiality.JPG" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1846" data-original-width="1305" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjFsB0BJUwUyrYDaZ9GplaPhq1uc8SeGVyzxjaMdRCVb2WaSiClHv-p6h1XpsoWatM0h2vClDHRxAasgr_PJkyW9ha721aBt8vU8BYnjd_Sp8VK5G-HD5rLhzJ7Bzu9hpXldlxe4lehzCbsZsoQ7bhpN1qFWV4nGQiMSq6MNW1KQnF1hsAs54WNFqDo/w283-h400/ENEL21%20materiality.JPG" width="283" /></a></div><br /><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>GRI stays with materiality: </b>As you all know, GRI updated its definition of materiality with the new Universal Standards and this remains plain old materiality (or what the EU is now calling impact materiality) that is defined as: topics that represent the organization’s most significant impacts on the economy, environment, and people, including impacts on their human rights. </div><div style="text-align: justify;">The irony is that most reporters have misrepresented materiality in GRI reporting, showing materiality matrices with one axis being the “interests of stakeholders” and the other axis being “importance to the business”. This is sort of double materiality by default, not by design, and it’s not always clear whether the impact on the business is the result of a considered analysis. </div><div style="text-align: justify;">For example, <a href="https://www.mondelezinternational.com/-/media/Mondelez/Snacking-Made-Right/SMR-Report/2020/2020_MDLZ_Snacking_Made_Right_Report.pdf" target="_blank">Mondelez 2020 ESG Report</a> shows importance to stakeholders and influence on business success, not size or significance of impacts. </div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhLUTuLTU7SvyyQ4XiKsB4h9s40FhEmyPrGTCorlXvdow6sYCCjsRncuBpSKCLKEigvy_gLkibt5XQNN0zAjfOl1C85Q2XWjR-Dd7eDLEckELqtzyj3hw_gJftSYeQnYGf0ma4v-3R48vEVFE0NydnwZ3Cod2nK5B2NACVCO5UEEhuyuPn8ZXWokoOk/s1112/MONDELEZ2020%20matmax.JPG" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1065" data-original-width="1112" height="383" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhLUTuLTU7SvyyQ4XiKsB4h9s40FhEmyPrGTCorlXvdow6sYCCjsRncuBpSKCLKEigvy_gLkibt5XQNN0zAjfOl1C85Q2XWjR-Dd7eDLEckELqtzyj3hw_gJftSYeQnYGf0ma4v-3R48vEVFE0NydnwZ3Cod2nK5B2NACVCO5UEEhuyuPn8ZXWokoOk/w400-h383/MONDELEZ2020%20matmax.JPG" width="400" /></a></div><br /><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><a href="https://sustainserv.com/wp-content/uploads/2021/06/delltechnologies-fy21-progress-made-real-report.pdf " target="_blank">Dell Technologies FY2021 ESG Report</a>, on the other hand, shows importance to stakeholders and degree of impact, as defined by GRI Standards, i.e.: impact materiality.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgoC6pLqlrIivGzXwvC8oHpsQ4KJsaUvZ2doXKyY5aCvySJj5OVj7OpAtLmWutipgLXRhNmijXhZ8DqgX7BU8VTBGgfDTxGbpnLEvdFu8khyLxThd_-N926JEbZinYX9G4ZT35iC5IopIVMGjCZZzBc5DjgkUm0byRanZ-Yl8okbdRvj5_9e6v3iyFC/s1115/DELL21%20MATMAX%20p11.JPG" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1036" data-original-width="1115" height="371" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgoC6pLqlrIivGzXwvC8oHpsQ4KJsaUvZ2doXKyY5aCvySJj5OVj7OpAtLmWutipgLXRhNmijXhZ8DqgX7BU8VTBGgfDTxGbpnLEvdFu8khyLxThd_-N926JEbZinYX9G4ZT35iC5IopIVMGjCZZzBc5DjgkUm0byRanZ-Yl8okbdRvj5_9e6v3iyFC/w400-h371/DELL21%20MATMAX%20p11.JPG" width="400" /></a></div><br /><b>What’s missing in materiality:</b> The overarching issue with materiality assessments is of course the lack of standardized methodology. How does a company actually assess the severity of its positive and negative impacts on society and the environment? The guidance in the standards, old and new, is high-level and directional. Every company does it in a different way, some more structured, some less. Generally, that materiality assessment is the result of surveys and stakeholder opinion, with little consideration of the degree of impact. The results you get depend on the stakeholders you consult and what you ask them. </div><div style="text-align: justify;">Almost all materiality processes are not fully transparent. Even the presentation of Enel noted above describes a series of processes… first we analyzed… then we analyzed… and a set of approaches: “<i>The main impacts identified, both negative and positive, were considered respectively according to their degree of severity or magnitude and probability, in the case of potential impacts.</i>” Well, that doesn’t tell us very much, really. </div><div style="text-align: justify;">GRI guidance recommends assessing the severity of an actual or potential positive or negative impact by analyzing <b>scale</b> (how grave/beneficial the impact is), <b>scope</b> (how widespread the impact is) and <b>irremediable character</b> (for negative impacts, how hard it is to counteract or make good the resulting harm) as well as the <b>likelihood</b> of the potential impacts occurring. Given the fact that materiality is so fundamental to how sustainability disclosures are defined and developed, I have been advocating for years for the development of a standard that would provide a structure and logical process for materiality assessments, and enable understanding of how impacts are prioritized. The lack of attention to this point in both the ISSB and the ESRS (I gave up on GRI long ago) is a missed opportunity to align companies on how to prioritize material topics for sustainability disclosures as the new standards are being developed. </div><div style="text-align: justify;"><br /></div><h3 style="text-align: justify;"><span style="color: red;">Getting Closer to the Money </span></h3><div style="text-align: justify;">Both standards move sustainability disclosure closer to financial reporting, in an attempt to raise the status of the former to equal or near equal to that of the latter. This is a bit of an uphill battle. Sustainability disclosure may never be anything more than a poor relative in the eyes of the financial wizards, but it’s true that the life of financial analysts will be easier when both types of reporting show up on the same playing field. This has two main implications: </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>First: Reporting period and publication timing</b> </div><div style="text-align: justify;">Both ESRS and ISSB require for sustainability disclosure to align with the period and timing of financial disclosure. </div><div style="text-align: justify;"><b>ESRS 1: </b><i>The undertaking shall retain a reporting period in its sustainability report consistent with the one retained for its financial statements. </i></div><div style="text-align: justify;"><b>IFRS S1: </b><i>The sustainability-related financial information must be for the same reporting entity as the financial statements and published as part of its general purpose financial reporting. This means the information must be disclosed at the same time as the financial statements.</i> </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">This is logical development, and not just for the money folks. Too many sustainability reports are published so late after the end of the reporting period, they are already stale before you even get to page one. The late publication of sustainability information may result from a lack of urgency and discipline in organizations for sustainability information, and/or a lack of infrastructure in gathering and organizing data. For sustainability to be better integrated and for decisions to be made in real time (to advance sustainability, not just for reporting), this needs to be professionalized. No more endless excel files for data collection, no more begging colleagues for collaboration, no more scrambling around at the last minute for missing data points. The new standards will force companies to get onto the same timeline as financial reporting, and this will require a step change in both process, resourcing and supporting technology. That’s good for the financial community and, arguably, better for company decision making. But it won’t be easy for most. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Second: Auditing and assurance </b></div><div style="text-align: justify;">The other longstanding complaint about sustainability information is that most of it is not externally assured and therefore confidence in its accuracy is low. The move to auditable and audited sustainability information is also a good thing. This addresses more than verification of GHG inventories or climate reporting, which many companies now externally assure, but all the material quantitative and much of the qualitative information that companies disclose. With sustainability being incorporated as part of financial disclosures (ISSB) or management reports (ESRS), they will be required to be assured to at least a limited level. What a gift for the accounting/assurance firms who are now gearing up for a fuller workload and an even fuller revenue stream. And companies that have never assured data in the past, be prepared for some surprises in your audit results. </div><div style="text-align: justify;"><br /></div><h3 style="text-align: justify;"><span style="color: red;">Silo Busting: Sustainability Connectivity </span></h3><div style="text-align: justify;">The new standards whoosh in the concept of connectivity between financial and ESG information. This is not so new. It was attempted with the six capitals approach of the Integrated Reporting framework, but it never made real headway in practice in demonstrating true linkage, I believe. With both ISSB and ESRS standards emphasizing the principles of connectivity, we may start to see some new tools to help this understanding. The EU Taxonomy is perhaps one, and the scenario-planning approach that became the high-jump of the TCFD guidelines is a driver of more holistic thinking about the way the risks will affect the numbers. ISSB is also planning the release of the IFRS Sustainability Disclosures Taxonomy (yes, they have a big budget too). </div><div style="text-align: justify;">IFRS standards allow information to be referenced i.e., it can be part of a separate document. ESRS requires all information to be contained in the management report… a throwback to the days when GRI reporting purported to have sustainability information “all in one place”. Today, GRI reports are often a menu of references to many other documents, making it difficult to actually track what’s being reported.</div><div style="text-align: justify;">However, the focus by both on connected information and impacts is explicit: </div><div style="text-align: justify;"><b>IFRS S1: </b><i>An entity shall provide information that enables users of general purpose financial reporting to assess the connections between various sustainability-related risks and opportunities, and to assess how information about these risks and opportunities is linked to information in the general purpose financial statements.</i> </div><div style="text-align: justify;"><b>ESRS 1:</b> <i>The undertaking shall adopt presentation practices that promote cohesiveness between its sustainability report and: (a) the information provided in the other parts of the management report ... (b) its financial statements; and (c) other sustainability-related regulated information. …</i></div><div style="text-align: justify;"><i></i> </div><div style="text-align: justify;">The implication for organizations is not to be underestimated here. Some might see it as an elevation of the role of the CSO to the level of the CFO. Others might see it as the gobbling up of the CSO by the CFO. Either way, it will be interesting to see how this develops in corporate organization structures. Both standards are saying that the sustainability voice must be heard more clearly. It’s no longer just about disclosure. It’s about strategy that, for the first time in many companies, should actually integrate sustainability thinking, and not as a series of projects (emissions reduction, diversity and inclusion etc.) but as a way of doing business through the entire value chain and reflecting the interconnectedness of it all on society, the environment and on the sustainable profitability and growth of the company. No more part-time sustainability leadership. No more adding it on to an already busy executive’s to-do list. The new standards give more oomph to the role of sustainability leadership in an organization and it must be resourced appropriately.</div><div style="text-align: justify;"> </div><h3 style="text-align: justify;"><span style="color: red;">History Lesson Over. Enter Goals, Pathways and Glidepaths </span></h3><div style="text-align: justify;">The sustainability report as a history book is now a thing of the past. Sustainability disclosures of the future are expected to be a set of promises, a pathway to deliver and an update on progress. The TCFD four-part model of Governance, Strategy, Risk Management, Metrics & Targets has become a useful role model, leading to more of a forward-looking disclosure than has ever been common practice. ISSB’s draft Climate Standard IFRS S2 adopts this approach in full, possibly an indication of things to come in future ISSB standards. The ESRS standards also emphasize the need to report on the future: ESRS 1 <i>When defining its action plans and setting targets, the undertaking shall adopt time horizons that reflect its strategic planning horizons and resource allocation plans.</i> Also, in ESRS_E1 Climate Change standard, companies are required to disclose plans to ensure the business model and strategy are <i>compatible with the transition to a climate-neutral economy and with limiting global warming to 1.5 °C in line with the Paris Agreement.</i> </div><div style="text-align: justify;">This is another good development. Way back in 2018, when we all lived in a very different world, I wrote about the <a href="http://csr-reporting.blogspot.com/2018/12/target-targets-for-2019.html" target="_blank">importance of targets in sustainability reporting</a>. I continue to find many reports that talk a great sustainability story but do not back it up with clear commitments. And I don’t mean just an emissions or energy efficiency target, but a set of targets that underpins strategy and promises progress across a range of environmental and social impact areas. But if in 2018 I talked about setting targets, today, it’s about setting targets AND (alert: jargon ahead) transition pathways. We all want to know not only what your target is, but how you plan to deliver. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">There is SO MUCH MORE to say about these new standards proposals. I didn’t even mention the new Climate Disclosure Rules of the SEC. I am hoping to carve out enough time to post detailed analyses and commentaries about the ESRS and ISSB drafts, and the SEC new rules in the coming month or so. In the meantime, on the whole, the developments are positive. They are raising the bar for sustainability disclosure and driving the integration of sustainability thinking and practice to become the new business as usual. While I believe the ISSB standards are not tenable as disclosures for stakeholders (as opposed to shareholders), they were never intended to be. On the other hand, ESRS has totally gone to town with their standards: 560 pages of detailed requirements and guidance may be just a little too much for companies to handle. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">And will all this make life easier for reporters? Hmmm, not so much. The interoperability approach only goes so far and there will still be multiple and more extensive disclosure demands. New legally-binding standards will require greater compliance effort than the largely voluntary disclosures to date. Digitization with new taxonomies, assurance and scenario analysis will add new challenges to the mix. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Ultimately, the question is whether all this information will actually be used in a meaningful way to further us along the path to sustainable investment and a sustainable world, or whether it’s all just spin. Will ISSB make more money for investors in the long run? Will ESRS help make life better for all Europe’s grandchildren? Will ice cream continue to be the solution to everybody’s problems? I know the answer to the last question. The jury is still out on the former two.</div><div><div style="text-align: justify;"><br /></div><div><br /></div><div><br /></div><div style="text-align: left;"><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-size: x-small;"><span style="font-family: inherit;"><span style="text-align: justify;">e</span>laine cohen, <b>GCB.D</b>: <a href="https://competentboards.com" target="_blank">ESG Competent Boards Certified (2021)</a>, <b>Sustainability Strategy and Disclosure Specialist</b>, former HR Professional, Ice Cream Addict. Owner/Manager of <span style="color: blue; text-align: justify;"><a href="http://www.b-yond.biz/" style="color: #0066cc;" target="_blank"><b>Beyond Business Ltd</b></a></span><span style="text-align: justify;">, </span>an inspired Sustainability Strategy and Reporting firm having supported <b>>140 </b></span></span><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333; font-size: x-small;"><span style="font-family: inherit;"><a href="http://www.b-yond.biz/clients-reports" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;"><b>client reports</b></span></a><span style="text-align: justify;"> to date; </span><b style="text-align: justify;">author </b><span style="text-align: justify;">of </span><a href="http://www.b-yond.biz/our-books" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">three books and several chapters</span></a><span style="text-align: justify;"> on Sustainability Reporting and the Human Resources connection to CSR; frequent </span><b style="text-align: justify;">chair and speaker </b><span style="text-align: justify;">at sustainability events and </span><b style="text-align: justify;">judge</b><span style="text-align: justify;"> in several sustainability awards programs each year. Contact me via </span><a href="http://www.twitter.com/elainecohen" style="color: #0066cc; text-align: justify;" target="_blank">Twitter</a><span style="text-align: justify;"> , </span><a href="https://www.linkedin.com/in/elainecohen/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">LinkedIn</span></a><span style="text-align: justify;"> or via </span><a href="http://www.b-yond.biz/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">Beyond Business</span></a></span></span></div></div>elainehttp://www.blogger.com/profile/07433863039389159395noreply@blogger.com0tag:blogger.com,1999:blog-8008724049496903547.post-74586896404705885122021-11-01T09:42:00.000+02:002021-11-01T09:42:17.741+02:00Going for G in ESG<div style="text-align: justify;">For too long, governance has been a grudging afterthought in sustainability disclosure. It’s probably the most boring part of any Sustainability Report. Like gruellingly yawnful. More often than not, it’s selective copy/paste from the Annual Report, with links to the full report. Occasionally, you get a more compelling disclosure from a company that actually injects some passion into the governance arena. You might be forgiven for thinking that the trend of ESG reporting might actually indicate that governance disclosures would be more extensive than in plain sustainability reporting. Not so. In most cases, the governance elements are sparse. Most ESG Reports should be called “<b>ES and a little bit of G Report</b>” or even “<b>ES and hardly any G Report</b>”. </div><div style="text-align: justify;"><br /></div><div><div style="text-align: justify;">Not surprising then that the forthcoming fifth <a href="https://csrworks.com/summit/ " target="_blank"><b>Asia Sustainability Reporting Summit</b></a>, always at the cutting edge of tough sustainability topics, on December 9 and 10 (virtual), will focus on <b><span style="color: red;">Spicing up the G in ESG</span></b>. Two half-days of learning and lively debate, with a global speaker line-up and your regular co-chair team of Rajesh Chhabara and Elaine Cohen (me 😊). We will be delighted to hear from <a href="https://competentboards.com/leader/helle-bank-jorgensen/" target="_blank"><b>Helle Bank Jorgensen</b>, CEO of Competent Boards</a>, the Board and Business Professionals ESG certification program, <a href="https://sancroft.com/team/judy-kuszewski/" target="_blank"><b>Judy Kuszewski</b>, CEO of Sancroft and Chair of GRI’s GSSB</a> (Global Sustainability Standards Board), <a href="https://rajeevpeshawaria.com/about/" target="_blank"><b>Rajeev Peshawaria</b>, CEO of Stewardship Asia Centre, Singapore</a> as well as from several senior leaders and governance specialists in Asia. See the speaker line-up so far <a href="https://csrworks.com/summit/speakers-2021/ " target="_blank">here</a>. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">As many of you will have noticed, the new <a href="https://www.globalreporting.org/standards/standards-development/universal-standards/" target="_blank"><b>GRI Universal Standards</b></a> published last month expand the governance disclosures required for reporting companies to remain In Accordance with GRI Standards. I covered the changes to governance disclosures when the Exposure Draft was published back in July 2020 in this post: <a href="http://csr-reporting.blogspot.com/2020/07/gri-standards-governance-galore.html" target="_blank">GRI Governance Galore</a>. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Let’s recap: </div><div style="text-align: justify;">In the current GRI Standards, at Core level, all you need to do is report Disclosure 102-18 covering governance structure and Board Committees, including those with responsibility for economic, environment and social topics. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><i>“The reporting organization shall report the following information: </i></div><div style="text-align: justify;"><i>• Governance structure of the organization, including committees of the highest governance body. </i></div><div style="text-align: justify;"><i>• Committees responsible for decision-making on economic, environmental, and social topics.” </i></div><div style="text-align: justify;"><i><br /></i></div><div style="text-align: justify;">With the elimination of the Core and Comprehensive options with the new Universal Standards, companies will be required to disclose ALL governance disclosures in order to be In Accordance.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Most Core option reporting companies report 102-18 minimalistically. The other non-Core governance disclosures – all 21 of them – are mandatory for companies reporting In Accordance at the Comprehensive level – around 20% of reporters according to GRI data. <b>Conclusion:</b> When the Universal Standards kick in in January 2023, 80% of those currently In Accordance at Core level will have to up their game. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">My personal view is that it’s rather overkill and that required disclosures are nauseatingly detailed and go beyond the specific elements of corporate governance that are not addressed by other corporate disclosures. After all, sustainability reporting has a unique purpose. It’s not simply a place to repeat what you have already reported elsewhere. I’d have preferred to see a middle ground – more than now but less than new – as well as a requirement to report changes in (sustainability-related) corporate governance that have occurred in the reporting year. Most of the (old and new) governance disclosure requirements are evergreen policy and approaches, rather than reporting on what’s happened or what’s planned. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">There are 13 governance disclosures in the new Universal Standards (compared to 22 in the current standards) But don’t be fooled. This reduction in the number of separate disclosure items is the result of combining several current disclosures into single disclosures in the Universal Standards. In fact, little has changed, except reordering and tidying up of the language. Companies reporting GRI Comprehensive option (and reporting in full) will not be challenged by the new Universal Standards on governance. Companies reporting Core may well be. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Here’s my summary of the new governance disclosures in the updated Universal Standards: </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">My shorthand: </div><div style="text-align: justify;"><ul><li>Current GRI General Disclosures (102 series): <b>GD2016</b> </li><li>New Universal Standards: <b>UD2021 </b></li><li>Board of Directors (highest governance body): <b>BOD </b></li></ul></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><span style="color: red;"><b>Disclosure 2-9 Governance structure and composition:</b></span> This is the same as 102-18 and 102-22 combined. But the combinations now means reporters must add six sub-clauses that require details of composition of the BOD AND its committees according to various parameters including gender, stakeholder representation, under-represented social groups, competencies relating to the organizations impacts. Oh my, this is almost report all in itself. </div><div style="text-align: justify;"><b><span style="color: red;">Disclosure 2-10 Nomination and selection of the highest governance body:</span></b> Description of how BOD and committee members are nominated and selected, including diversity and other considerations. Minor wording changes from GD2016. </div><div style="text-align: justify;"><b><span style="color: red;">Disclosure 2-11 Chair of the highest governance body:</span></b> UD2021 includes the requirement to explain, if the chair and the senior exec are one and the same, the how conflicts of interest are mitigated. Split personalities is not an acceptable response (I assume). </div><div style="text-align: justify;"><b><span style="color: red;">Disclosure 2-12 Role of the highest governance body:</span> </b>This UD2020 requirement combines five GD2016 disclosures (102-21,102-26,102-29, 102-30 102-31) and relates to the BOD role in setting purpose, values, mission and strategy relating to sustainable development and overseeing due diligence regarding management of impacts. Due diligence has snuck into UD2021 quite a lot so you had better start integrating due diligence wording into your reporting. Quite a lot. </div><div style="text-align: justify;"><b><span style="color: red;">Disclosure 2-13 Delegation of responsibility for managing impacts:</span> </b>This UD2021 requirement combines two GD2016 disclosures (102-19, 102-20). Companies often report this as the sustainability management structure, or sustainability governance. </div><div style="text-align: justify;"><b><span style="color: red;">Disclosure 2-14 Role of the highest governance body in sustainability reporting:</span></b> This replaces GD2016 102-32 with a report or explain requirement i.e., if the BOD does not approve the report and material topics, explain the reason. Lack of interest, time, energy, ability to read or watching Grey’s Anatomy are not trust-building reasons. </div><div style="text-align: justify;"><b><span style="color: red;">Disclosure 2-15 Conflicts of interest: </span></b>This replaces GD2016 102-25 with slightly revised language and covers prevention, mitigation and disclosure to stakeholders of conflicts of interest. </div><div style="text-align: justify;"><b><span style="color: red;">Disclosure 2-16 Communication of critical concerns: </span></b>This UD2021 requirement combines two GD2016 disclosures (102-33,102-34) with slightly revised language. It includes reporting the total number and the nature of critical concerns that were communicated to the highest governance body during the reporting period. Just so that the BOD can’t say they didn’t know, right? </div><div style="text-align: justify;"><b><span style="color: red;">Disclosure 2-17 Collective knowledge of the highest governance body:</span></b> Replaces 102-27 and requires reporting report measures taken to advance the collective knowledge, skills, and experience of the highest governance body on sustainable development. Reading their own company’s sustainability report might be a good start. </div><div style="text-align: justify;"><b><span style="color: red;">Disclosure 2-18 Evaluation of the performance of the highest governance body:</span></b> Replaces GD2016 102-28 and covers the BOD’s evaluation of its performance in overseeing the management of the organization’s impacts on the economy, environment, and people. </div><div style="text-align: justify;"><b><span style="color: red;">Disclosure 2-19 Remuneration policies:</span></b> Replaces 102-35 with little change. This is the place to show how the remuneration of your BOD actually aligns with your sustainability objectives. </div><div style="text-align: justify;"><span style="color: red;"><b>Disclosure 2-20 Process to determine remuneration: </b></span>This UD2021 disclosure combines 102-36 and 102-37 and covers the process of designing BOD remuneration policies and who is involved and stakeholder voting on remuneration. </div><div style="text-align: justify;"><b><span style="color: red;">Disclosure 2-21 Annual total compensation ratio:</span></b> This UD2021 disclosure combines 102-38 and 102-39 and requires reporting of the ratio of the annual total compensation for the organization’s highest-paid individual to the median annual total compensation for all employees and the percentage increase of same to the median percentage increase of same for all employees. This is a much simplified version of former requirements which referenced not only the top dog but also the top dogs in each country of significant operations. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Now for some examples:</div><div style="text-align: justify;"><p class="MsoNormal"><span lang="EN-US" style="background-attachment: initial; background-clip: initial; background-color: white; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial;"><a href=" https://corporate.dow.com/documents/about/066-00338-01-2020-esg-report.pdf" target="_blank"><b><span style="font-size: medium;">Dow Corporation 2020 ESG Report</span></b></a></span><span lang="EN-US"><o:p></o:p></span></p><p class="MsoNormal">This is one of the few reports that applies the Comprehensive option of the GRI Standards. Dow reports on each governance disclosure with due attention and completeness in the body of the report – not sliced and diced from different publications.</p>
<p class="MsoNormal"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEi_tHf5LqOR-KySOiaQUuoapnyxwpDBYmYpfsHbLLLWNqG8WtgC1rPl0HLpln_8XL5wwYMeWLKGdXBuMhU5OL_EguRsnK1js1AgX4a71f8utpjmrfKNoxiK0oUU3rsVW378QFiSpBSW3kjweCopkRefdpIRb91lIBDdH2bosjyXAYqzpP0V8v5M6-ca=s1481" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="685" data-original-width="1481" height="228" src="https://blogger.googleusercontent.com/img/a/AVvXsEi_tHf5LqOR-KySOiaQUuoapnyxwpDBYmYpfsHbLLLWNqG8WtgC1rPl0HLpln_8XL5wwYMeWLKGdXBuMhU5OL_EguRsnK1js1AgX4a71f8utpjmrfKNoxiK0oUU3rsVW378QFiSpBSW3kjweCopkRefdpIRb91lIBDdH2bosjyXAYqzpP0V8v5M6-ca=w493-h228" width="493" /></a></div><div class="separator" style="clear: both; text-align: left;"><span style="text-align: justify;"><br /></span></div><div class="separator" style="clear: both; text-align: left;"><span style="text-align: justify;">For example, current GRI 102-22, soon to be Disclosure 2-9, includes detailed composition of the Board of Directors by age, role, experience and expertise. There are even headshots for good measure.</span></div><p></p><p class="MsoNormal"><span lang="EN-US"></span></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEgjgYDxKoDMnMFttmX5WgTbC65T0bExAEyvUIU8aZwA4_Vy4iiOBxM6LLu2H0KvjXceLcY-lhwQLBv_422a4_BYeCaV4PuJEQkUz_DIQwNnsf4e_pttOvWdcodfpAEm6cz93Ie1rOjkl5oKMNIxHEuJ-SefkYAAt69fWJagxURAOvL2gW0VhNghfWpH=s1972" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1333" data-original-width="1972" height="318" src="https://blogger.googleusercontent.com/img/a/AVvXsEgjgYDxKoDMnMFttmX5WgTbC65T0bExAEyvUIU8aZwA4_Vy4iiOBxM6LLu2H0KvjXceLcY-lhwQLBv_422a4_BYeCaV4PuJEQkUz_DIQwNnsf4e_pttOvWdcodfpAEm6cz93Ie1rOjkl5oKMNIxHEuJ-SefkYAAt69fWJagxURAOvL2gW0VhNghfWpH=w471-h318" width="471" /></a></div><p></p><p class="MsoNormal"><span lang="EN-US">Pay ratios, one of the more sensitive elements
of sustainability reporting, is also clearly reported.<o:p></o:p></span></p><p class="MsoNormal"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEh5h4EBBO6xLaZsIdWq85FKu1AThXj0HJvAoSNoODaN82HF6dLMdVI17zAAgptbLmpHhIQiS1LWZaAz23k6xcIO0x6ZreUXIUHPYnN4Oq-4gkjLbDPY3yuv0mm9usqrSGBicJpsq3YsFUuc_K3S7XTNnaIHUq74x_EFBd872ge7fCPbTuq7W96ozM5V=s1959" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1328" data-original-width="1959" height="302" src="https://blogger.googleusercontent.com/img/a/AVvXsEh5h4EBBO6xLaZsIdWq85FKu1AThXj0HJvAoSNoODaN82HF6dLMdVI17zAAgptbLmpHhIQiS1LWZaAz23k6xcIO0x6ZreUXIUHPYnN4Oq-4gkjLbDPY3yuv0mm9usqrSGBicJpsq3YsFUuc_K3S7XTNnaIHUq74x_EFBd872ge7fCPbTuq7W96ozM5V=w446-h302" width="446" /></a></div><p class="MsoNormal"><br /></p><p class="MsoNormal"><b><span lang="EN-US"><a href="https://www.infosys.com/sustainability/documents/infosys-esg-databook-2020-21.pdf" target="_blank"><span style="font-size: medium;">Infosys ESG 2020-2021 Data Book</span></a></span></b></p><p></p><p class="MsoNormal">Infosys also reports GRI Comprehensive option
and the governance disclosures are partly in the <a href="https://www.infosys.com/sustainability/documents/infosys-esg-report-2020-21.pdf" target="_blank">ESG Report</a>, partly in the
separate <a href="https://www.infosys.com/sustainability/documents/infosys-esg-databook-2020-21.pdf" target="_blank">ESG Data Book</a> and partly in the <a href="https://www.infosys.com/investors/reports-filings/annual-report/annual/documents/infosys-ar-21.pdf" target="_blank">Annual Report.</a> </p></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEisNKd3jt9_0_1MlzbD4DEcfDOAxmcuSJfPvJibSJ6fL69EesjAOhxzPi6GHe--cfRBCVx6_TwSJnouhwbi8yAp4z0VC87CGrtudRYwvbp7cGoEjNqvmN3-K--k-mS2zoh4vvyDXVaq3mGoEdk4AXhWJvedXxiCq_cXf2B1j0UyuW-BmUu3lxMykjJ9=s1591" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1103" data-original-width="1591" height="303" src="https://blogger.googleusercontent.com/img/a/AVvXsEisNKd3jt9_0_1MlzbD4DEcfDOAxmcuSJfPvJibSJ6fL69EesjAOhxzPi6GHe--cfRBCVx6_TwSJnouhwbi8yAp4z0VC87CGrtudRYwvbp7cGoEjNqvmN3-K--k-mS2zoh4vvyDXVaq3mGoEdk4AXhWJvedXxiCq_cXf2B1j0UyuW-BmUu3lxMykjJ9=w435-h303" width="435" /></a></div><p class="MsoNormal" style="text-align: justify;"><span lang="EN-US">The Annual Report includes a 40-page Governance
Report which is incredibly detailed. It took me quite some time to locate one
or two of the specific GRI-based disclosures, but I got there in the end.
Mostly, it was easy, even if it meant straddling three different documents.</span></p><p class="MsoNormal" style="text-align: justify;"><b><span lang="EN-US"><a href="https://www.hankooktire.com/global/files/sustainability/csr_reports/ESG_Report_2020-21_English.pdf" target="_blank"><span style="font-size: medium;">Hankook Tire 2021 ESG Report</span></a></span></b></p>
<p class="MsoNormal" style="text-align: justify;">Hankook always delivers detailed, clear and
meticulous reports, using the GRI Comprehensive option. This is the only company
I have observed actually publishing a set of governance targets in its three-page
governance coverage in its ESG report. </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEg6bRWPNcNraRAUMxDxZq_ai75q6GEZtcyODUMmzunzME6WxQDewm6DUGXtqIHRSj7btoBCCLJqvUwuiwaEK1ZSEkrDjGr0nS30_wrONMVsjP5yzB8w2AIgA3DjyCV0f6ohngevBmUYMy-8dduPnmYo4GfK24p-qNmAOem3PZ_9QO8jMbjUCIC703UE=s2048" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1131" data-original-width="2048" height="240" src="https://blogger.googleusercontent.com/img/a/AVvXsEg6bRWPNcNraRAUMxDxZq_ai75q6GEZtcyODUMmzunzME6WxQDewm6DUGXtqIHRSj7btoBCCLJqvUwuiwaEK1ZSEkrDjGr0nS30_wrONMVsjP5yzB8w2AIgA3DjyCV0f6ohngevBmUYMy-8dduPnmYo4GfK24p-qNmAOem3PZ_9QO8jMbjUCIC703UE=w433-h240" width="433" /></a></div><br /><p class="MsoNormal" style="text-align: justify;"><span lang="EN-US">I looked at more than 100 reports from global, large,
small and unlisted companies in preparing this post to see if I could find a
really exciting or impressive disclosure on corporate governance. Nada. There
are some that are nicely designed with graphs and pie charts, a few with Board
photos, a few with tables and charts. This one from <a href="https://www.gentingplantations.com/wp-content/uploads/2021/04/GENP_SR20_Final.pdf" target="_blank">Genting Plantations Berhad</a>
is a little more pleasing to the eye than plain words on a page. <o:p></o:p></span></p><p class="MsoNormal" style="text-align: justify;"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEht67PNzBHiKkANFPExiHB5Yvkbl26V3mNnPvH_aGsyEQwuPh7cZYswVsNzB_VLwDkegIQpHI9v4izayaqtBKQkPfCsY8ZnTCr7p-Bpxtu_prHwBfhfR_RSM2k_MPWJ7SpHSvQ3TrnUGH5UbaKXotC-z18g4AlKGnPj7bt4pOvxq1_xkjATTVGT9d1s=s2048" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1415" data-original-width="2048" height="285" src="https://blogger.googleusercontent.com/img/a/AVvXsEht67PNzBHiKkANFPExiHB5Yvkbl26V3mNnPvH_aGsyEQwuPh7cZYswVsNzB_VLwDkegIQpHI9v4izayaqtBKQkPfCsY8ZnTCr7p-Bpxtu_prHwBfhfR_RSM2k_MPWJ7SpHSvQ3TrnUGH5UbaKXotC-z18g4AlKGnPj7bt4pOvxq1_xkjATTVGT9d1s=w413-h285" width="413" /></a></div><br /><p></p><p class="MsoNormal" style="text-align: justify;"><span lang="EN-US"></span></p><p class="MsoNormal" style="text-align: justify;"><span lang="EN-US">Most governance disclosures remain general, minimal and uninspiring. Going for G in ESG will require a
step change in transparency for many companies. Spicing up the G will require a step change in thinking. I foresee a global shortage of ice cream as companies
struggle to get more transparent on governance. Everything is better with ice cream.<o:p></o:p></span></p><div><br /></div><div><br /></div><div><br /></div><div><br /></div><span style="background-color: white; font-size: x-small;"><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333;"><span style="font-family: inherit;"><span style="text-align: justify;">e</span>laine cohen, CSR consultant, Sustainability Reporter, HR Professional, Ice Cream Addict. Owner/Manager of <span style="color: blue; text-align: justify;"><a href="http://www.b-yond.biz/" style="color: #0066cc;" target="_blank"><b>Beyond Business Ltd</b></a></span><span style="text-align: justify;">, </span>an inspired Sustainability Strategy and Reporting firm having supported <b>119 </b></span></span><span face="Arial, Tahoma, Helvetica, FreeSans, sans-serif" style="color: #333333;"><span style="font-family: inherit;"><a href="http://www.b-yond.biz/clients-reports" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;"><b>client reports</b></span></a><span style="text-align: justify;"> to date; </span><b style="text-align: justify;">author </b><span style="text-align: justify;">of </span><a href="http://www.b-yond.biz/our-books" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">three books and several chapters</span></a><span style="text-align: justify;"> on Sustainability Reporting and the Human Resources connection to CSR; frequent </span><b style="text-align: justify;">chair and speaker </b><span style="text-align: justify;">at sustainability events and </span><b style="text-align: justify;">judge</b><span style="text-align: justify;"> in several sustainability awards programs each year. Contact me via </span><a href="http://www.twitter.com/elainecohen" style="color: #0066cc; text-align: justify;" target="_blank">Twitter</a><span style="text-align: justify;"> , </span><a href="https://www.linkedin.com/in/elainecohen/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">LinkedIn</span></a><span style="text-align: justify;"> or via </span><a href="http://www.b-yond.biz/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">Beyond Business</span></a></span></span></span></div>elainehttp://www.blogger.com/profile/07433863039389159395noreply@blogger.com0tag:blogger.com,1999:blog-8008724049496903547.post-7513964904037206392021-01-05T22:55:00.000+02:002021-01-05T22:55:59.158+02:0021 Sustainability Reporting Nuggets for 2021<div style="text-align: justify;">
So, 2020 is now over (YAY!!!) and we all eagerly await a reportful 2021 that will bring us closer to peace and harmony, the eradication of COVID-19 and achievement of the 17 Sustainable Development Goals. Everyone is publishing summaries, <a href="https://www.msci.com/documents/10199/a7a02609-aeef-a6a3-1968-4000f1c8d559" target="_blank">trends and predictions</a>, so the CSR Reporting Blog will stay clear of that. Instead, we will start off the New Year with some interesting things about Sustainability Reports that may provide inspiration or perspiration for all reporters planning their first or next cycle. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">I will draw my examples from about 100 recent reports from the U.S., UK, Japan and Germany - reports delivered to me as part of an excellent service provided by <a href="http://ESGSpectrum.com"><b>ESGSpectrum.com</b></a> - a fabulous organization that provides all forms of analysis, research and a range of customized information relating to my second favorite topic - reporting! (You all know what my FIRST favorite topic is. No hints. 🍦). </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">I will also include a few nuggets from my recent review of about 130+ sustainability reports from Asia - having spent quite some time over the past couple of weeks in my regular annual role as a judge in the <a href="https://csrworks.com/asra/" target="_blank"><b>Asia Sustainability Reporting Awards</b></a>, now in its sixth year. I judge all categories (except digital reports, because I always prefer to read a PDF rather than a website, and integrated reports, because I don't like to fish for sustainability content). While judging so many reports is a big investment in time, it's also an entire education and a source of much inspiration - the dedication, effort, creativity and innovative thinking that goes into every report (yes, some more than others) always inspires me. First reports today are getting slicker than ever, SME reports are more mature, and some of the leading reports are just plain awesome - not only because of the quality of the reporting, but because of the depth and breadth of performance they reflect. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">You cannot deliver a meaningful sustainability report if you have not completed meaningful thinking about your approach and started to take meaningful action, whether you have been reporting for 20 years or just one or two. I believe the value of sustainability reporting is grossly underestimated (more on that another time) and whatever the outcome of the <a href="https://drcaroladams.net/issues-solutions-and-options-for-ifrs-on-sustainability-reporting/" target="_blank">MegaWars on ESG Disclosure</a> (more on that another time too), sustainability reporting is a catalyst for performance, a platform for dialogue and an empowering process. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b><span style="color: red; font-size: medium;">Nugget #1: Make targets your target</span></b></div><div style="text-align: justify;">The more reports I read, the more it astounds me how companies can produce pages of strategy, materiality assessments, stakeholder engagement and inspiring declarations about their dedication to sustainability in the CEO letter and other sections of their report and yet, there is a conspicuous lack of concrete commitments in the form of targets. A strategy with no targets has no substance. A commitment to sustainability with no specific path to deliver on those commitments has no credibility. A report that only looks back at what was done is a history book. Today's reporting must be responsive the needs of users to understand how companies will make progress, improve their impacts and contribute to a sustainable future. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Here's an example from <a href="https://www.whsmithplc.co.uk/sites/whsmith-corp/files/Reports/2020/WHSmith%20Sustainability%20Report%202020_Web.pdf" target="_blank"><b>WH Smith plc's 2020 Sustainability Report</b></a>:</div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjr0ASypy9jKDqgiZGVUOlLaGlz8LFcEHp6O6ZD7piyErQsMJwgY8ywkj3YR7IpnjW0XEakg60ZOuF5mAzm98H_OSs7OewkhrZotERgee4lJ9Otc4pFVHdHqY9Cth6v9rtJqaHq1OpnjJQ/s1509/WHSMITH+20+targets.PNG" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1509" data-original-width="1237" height="456" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjr0ASypy9jKDqgiZGVUOlLaGlz8LFcEHp6O6ZD7piyErQsMJwgY8ywkj3YR7IpnjW0XEakg60ZOuF5mAzm98H_OSs7OewkhrZotERgee4lJ9Otc4pFVHdHqY9Cth6v9rtJqaHq1OpnjJQ/w374-h456/WHSMITH+20+targets.PNG" width="374" /></a></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">WH Smith has 15 specific targets supporting 8 broad issue categories. The nice thing about this presentation is that WH Smith defines each target and how it will be measured. Some targets are explicit - for example, "<i>purchase 100% of electricity from renewable sources by 2021 in the UK and by 2025 internationally</i>" while some are less so, for example, "<i>increase the diversity of our senior management team across race and gender</i>" (as measured by % of positions held). WH Smith does not specify a target percentage of diversity to be achieved, but this is nonetheless a clear, measurable commitment. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><a href="https://static1.squarespace.com/static/5f884ded5f0d143dfaa49715/t/5fbb9e0791a4ea000ee76837/1606131251236/Greencore-sustainability-report-2020.pdf%C2%A0" target="_blank"><b>Greencore's inaugural 2020 Sustainability Report</b></a> also demonstrates clear commitments through a set of measurable targets.</div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhhRbkO_stlMPnYvntbA4nqSJI4uJUN8-VcRniOBDfmc7wLrMkMgEjXTQ-q_WEONkAPyphtYD1i4z4qyy2q59vWyvGFtoj3pQ25Mpi2YzWVNpBns43s2hoCliuVKHDRXswbfhWcvbnCIg4/s2048/greencore+2019+targets.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1439" data-original-width="2048" height="281" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhhRbkO_stlMPnYvntbA4nqSJI4uJUN8-VcRniOBDfmc7wLrMkMgEjXTQ-q_WEONkAPyphtYD1i4z4qyy2q59vWyvGFtoj3pQ25Mpi2YzWVNpBns43s2hoCliuVKHDRXswbfhWcvbnCIg4/w400-h281/greencore+2019+targets.JPG" width="400" /></a></div><br /><div style="text-align: justify;">Some companies commit to environmental targets only - which I find strange. While environmental topics are generally more readily quantifiable, social aspects are also concrete and measurable and we should expect them to be treated with the same degree of robust planning and commitment. Perhaps the new enlightenment that COVID-19 has brought will elevate people and social commitments and targets in 2021 publications.</div><div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b><span style="color: red; font-size: medium;">Nugget #2: Google Translate is wonderful. But not that wonderful.</span></b></div><div style="text-align: justify;">First, I have great respect for companies that translate their reports for us English speakers, and some translate into other languages as well. But, if you are going to make all that effort to provide a translation, then Google Translate just doesn't cut it. Invest in a proofer whose mother tongue is the language you are serving up to your readers. Although language bloops are amusing, sometimes even charming, they project a lack of professionalism or thoroughness. Here are some from reports I have recently looked at - I'll not mention any names.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">"<i>Commitment to infrastructure development and construction world to the outskirts and remote areas, shows that the construction business opportunity
is wide open and long term.</i>" </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">"<i>Input water is used for domestic and industrial purposes. For industrial purposes, the supply water has been always
saved as XXX has been using Italian top-notch machines and technology which enable water consumption minimization.
For domestic use, XXX has constantly propagandized all staff members about the role of water resources and water
saving, at the same time, delivers water saving slogans at tapping pointsand takes measures to warn violations or
acts of wasting water.</i>"</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">"<i>Adapting
to family culture, it is the dependence, the maintenance of
stagnant manners, creating obstacles for the development
momentum. Besides the defensive mentality, rudimentary
thinking, afraid of risk, leading to afraid of change.</i>" </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b><span style="color: red; font-size: medium;">Nugget #3: Navigation tools are not optional </span></b></div><div style="text-align: justify;">With PDF's today being read primarily online, it's critical that that they are easy to navigate, especially if they are loooooong. Reports that enable you to flit around from section to section with ease are a delight; they make you feel that the report designers and reporting managers have truly considered you as a report user. Here are some great examples:</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b><a href="https://www.yokogawa.com/about/sustainability/report/" target="_blank">Yokogawa Electric Corporation's 2020 Sustainability Report</a></b> has a fantastic top menu and home button that takes you to the contents page from wherever you are in the report. Each section landing page has its own internal menu, and each topic is hyperlinked. So within a couple of clicks in the PDF, you can get to anywhere or back to anywhere. A pleasure to use this report. </div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhnLlIZOQIy1IgPx-XqcZ86vY8BfxHvSMCn12MZ5CbuaB56BAnIfh3uMGfguFFwyTdBT5KmCP2H3LM6VMs9UtGYPHs8L6uI9Ii_PFMiNYtOqm4wYypKMNxzXquZRGY4Bn0xNxLBReFVaX4/s2048/yokogawa+2020+contents.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1469" data-original-width="2048" height="288" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhnLlIZOQIy1IgPx-XqcZ86vY8BfxHvSMCn12MZ5CbuaB56BAnIfh3uMGfguFFwyTdBT5KmCP2H3LM6VMs9UtGYPHs8L6uI9Ii_PFMiNYtOqm4wYypKMNxzXquZRGY4Bn0xNxLBReFVaX4/w400-h288/yokogawa+2020+contents.JPG" width="400" /></a></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjzY3CK5qhKzE30qmGa2mpkiUKu5J3ySH1TrLMY4JwXfo67H2YdFSA9kbsjXqmE2dKX7H4t1ak7Bo1mwL1U9yDgIic2-NTmnK3rlGfINFlX4jhh_OV-BKALtvzOpwcKfvh1djVrQQDe9lo/s2048/yokogawa+2020+hr+contents.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1449" data-original-width="2048" height="283" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjzY3CK5qhKzE30qmGa2mpkiUKu5J3ySH1TrLMY4JwXfo67H2YdFSA9kbsjXqmE2dKX7H4t1ak7Bo1mwL1U9yDgIic2-NTmnK3rlGfINFlX4jhh_OV-BKALtvzOpwcKfvh1djVrQQDe9lo/w400-h283/yokogawa+2020+hr+contents.JPG" width="400" /></a></div><div class="separator" style="clear: both; text-align: center;"><br /></div><a href="https://www.ifm.com/il/en/shared/company/sustainability/sustainability-report" style="font-weight: bold;" target="_blank">IFM Electronics' 2019 Sustainability Report</a>, another first report, takes a similar design approach, but this time, it's a bottom menu. Here again, the landing pages contain hyperlinks to the individual sections within the chapter. The 8-blocks icon takes you back to the Contents page. Navigating this report is a breeze.</div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh8ON2thwagfZQRMVMIfzUI8HGZwD7Qf1zCf3Fj3paAFMdEPuWHPdX6qV00aekoE_H3hVub1M-lh-0Su0l5bX817w5JrU5k0uzscZWiY94qGnPhtrJRNVebvce2Wii0uKDzMuC6_i5nFqg/s1912/IFM+2019+contents.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1355" data-original-width="1912" height="284" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh8ON2thwagfZQRMVMIfzUI8HGZwD7Qf1zCf3Fj3paAFMdEPuWHPdX6qV00aekoE_H3hVub1M-lh-0Su0l5bX817w5JrU5k0uzscZWiY94qGnPhtrJRNVebvce2Wii0uKDzMuC6_i5nFqg/w400-h284/IFM+2019+contents.JPG" width="400" /></a></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgnXu0vjr1Ttey7A-cWdksn_Grr6cZGoxqBdAwnocep-uFNaqeT5CKcRJzf_eyESsOP-pXO8LOYsHFeoSsg-7VSo7iWs0vPc786bBY8BzcKqMZDie4BofF_hFDlSqNnbBdApQKnn8WUnVs/s1913/ifm+2019+employees.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1354" data-original-width="1913" height="283" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgnXu0vjr1Ttey7A-cWdksn_Grr6cZGoxqBdAwnocep-uFNaqeT5CKcRJzf_eyESsOP-pXO8LOYsHFeoSsg-7VSo7iWs0vPc786bBY8BzcKqMZDie4BofF_hFDlSqNnbBdApQKnn8WUnVs/w400-h283/ifm+2019+employees.JPG" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: justify;"><b><a href="https://www.viacomcbs.com/sustainability" target="_blank">Viacom CBS' 2019 ESG Report</a></b> goes even further. Not only is there a top menu and a hyperlinked contents page, the GRI Content Index is also hyperlinked, and each of the GRI disclosure labels within the report are hyperlinked back to the Index. Now<b> this</b> is a designer that understands report users and has gone the extra mile to make the content fully accessible. Great navigation does not compete with great content, but it does make you more inclined to discover the great content. This is a first report from Viacom CBS - impressive!</div><div class="separator" style="clear: both; text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg7jnR37ZFWgVlIo-0fMgM7vib1fmjDSm6MEjFjUbId-afd4iVNHCzX4nCGpMVvfeqqS000iBwGtJegRnKVmagH8UkQoF9p2thzeSlxar59Vurf5X5dASukrJgys0ml_Zl7DjJHGgd-0p4/s1879/viacom2019+CONTENTS.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1879" data-original-width="1419" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg7jnR37ZFWgVlIo-0fMgM7vib1fmjDSm6MEjFjUbId-afd4iVNHCzX4nCGpMVvfeqqS000iBwGtJegRnKVmagH8UkQoF9p2thzeSlxar59Vurf5X5dASukrJgys0ml_Zl7DjJHGgd-0p4/w303-h400/viacom2019+CONTENTS.JPG" width="303" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEji2-PDLAWRP5FEWGt9zcqhA3cCKOBArVfI125deK_UhxJgx5TNEp5Dlk3suPpSoKnq6YKxOMoSZyBEbwR5VKEl-6gsnNgXbzEq9NSyg3ir0O9MNbFrZ2k1Z9e32cagGLX5Apkx4NToCrI/s1454/viacom+2019+gri.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1098" data-original-width="1454" height="303" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEji2-PDLAWRP5FEWGt9zcqhA3cCKOBArVfI125deK_UhxJgx5TNEp5Dlk3suPpSoKnq6YKxOMoSZyBEbwR5VKEl-6gsnNgXbzEq9NSyg3ir0O9MNbFrZ2k1Z9e32cagGLX5Apkx4NToCrI/w400-h303/viacom+2019+gri.JPG" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjl9tUMLU6iDe5KdrdusdLNGWiDLl2xtOJQZ4fL5jlGW_PAbuttdicr62y_1r5gMp1mWSvGdlJKWTQL4t503FzlCXFomDFktYqu3OG3RASEovlYU1nb9SNHh9_Mx0SqGxSTvalFXSkaHs4/s1605/viacom+2019+INTENRAL+PAGE.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1605" data-original-width="1445" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjl9tUMLU6iDe5KdrdusdLNGWiDLl2xtOJQZ4fL5jlGW_PAbuttdicr62y_1r5gMp1mWSvGdlJKWTQL4t503FzlCXFomDFktYqu3OG3RASEovlYU1nb9SNHh9_Mx0SqGxSTvalFXSkaHs4/w360-h400/viacom+2019+INTENRAL+PAGE.JPG" width="360" /></a></div><br /><div class="separator" style="clear: both; text-align: justify;"><br /></div><div>
<div style="text-align: justify;"><b><span style="color: red; font-size: medium;">Nugget #4: Great design makes a difference</span></b></div><div style="text-align: justify;">And, since we are with the designers, let's go on to talk about how great design really does encourage you to discover more of the report content. This always stands out for me as I review more than a hundred reports in a short space of time for the Asia Sustainability Reporting Awards each year. Reports that are appealing from a design point of view are so much easier to review and make my judgy job much more pleasant.<b> </b>I won't give examples from this years' entries so as not to preempt the results but last years report winners in the design category were:</div><div style="text-align: justify;"><b><br /></b></div><div style="text-align: justify;"><b><a href="https://www.cpfworldwide.com/en/sustainability/report" target="_blank">Charoen Popkand's 2018 Sustainability Report</a>, </b>with tasteful use of images and visuals throughout the report that make the text come alive. Side navigation makes it easy to use.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhz6XHRnfUekNFwvk1ESgEm59xrPtKHl8ssnGsjhyTbJphdRMwiIJ91OynIsWmgoOJh_VmC7FYNPP3b0eJZKWkWIuuelDO_KFem1hKVfJ0I6ZhRFRI-E5sh2E864ZPIfIjyCM6N_xcgv6M/s906/Charoen18+cover.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="906" data-original-width="754" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhz6XHRnfUekNFwvk1ESgEm59xrPtKHl8ssnGsjhyTbJphdRMwiIJ91OynIsWmgoOJh_VmC7FYNPP3b0eJZKWkWIuuelDO_KFem1hKVfJ0I6ZhRFRI-E5sh2E864ZPIfIjyCM6N_xcgv6M/w333-h400/Charoen18+cover.JPG" width="333" /></a></div><br /><b><br /></b></div><div style="text-align: justify;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg4Ud-ePUaal2WE8GD2XPYr_6_dxjDF_8hRgYzdcFtke4zDBOTuMLqLojC5Bmz3NGHq1CB6Zy0YCHEJRhdEVovFmBxfJMNT0c8sJLhDlMp5uiPTBdUdZmclV9P5pzSrPh5nzC2-l0rWJDA/s2048/charouen18+climate.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1224" data-original-width="2048" height="239" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg4Ud-ePUaal2WE8GD2XPYr_6_dxjDF_8hRgYzdcFtke4zDBOTuMLqLojC5Bmz3NGHq1CB6Zy0YCHEJRhdEVovFmBxfJMNT0c8sJLhDlMp5uiPTBdUdZmclV9P5pzSrPh5nzC2-l0rWJDA/w400-h239/charouen18+climate.JPG" width="400" /></a></div><br /><b><br /></b></div><div style="text-align: justify;"><b><a href="https://cdlsustainability.com/reports-press-releases/sustainability-reports/" target="_blank">City Developments Ltd 2019 Integrated Sustainability Report</a> </b>takes a clean design approach, with use of color and clear charts and design formats. With hardly any imagery, this report is laid out in a way that is easy to read and navigate.</div><div style="text-align: justify;"><b><br /></b></div><div style="text-align: justify;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEit-A20_iP-dEkbceugK7v6dJlx8MmIiJL-UnifA3bvgeeYLO0gwSePnqPDMBQTshEJUEURPnCDRECPGC9eZAcWYdDw22GFB3WM5ytjud9oQWViHafVZ7dASbFq1ozXgIppw9_vzF1P9lE/s1914/CDL18+cover.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1336" data-original-width="1914" height="279" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEit-A20_iP-dEkbceugK7v6dJlx8MmIiJL-UnifA3bvgeeYLO0gwSePnqPDMBQTshEJUEURPnCDRECPGC9eZAcWYdDw22GFB3WM5ytjud9oQWViHafVZ7dASbFq1ozXgIppw9_vzF1P9lE/w400-h279/CDL18+cover.JPG" width="400" /></a></div><br /><b><br /></b></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgud9rVRdzigxKUzhGqs7N_9qN_3RDbt5E01_rQp8qoGLF6213xbbi8dw5ZgouOtu7CV46UZJ2DCqSGtFI2MJdKG3MKMxMYqBJPrSIncP9G9Dc7stw5AD0oKgDc79NRLOrmYwQcW57jvVA/s1898/CDL19+page.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1334" data-original-width="1898" height="281" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgud9rVRdzigxKUzhGqs7N_9qN_3RDbt5E01_rQp8qoGLF6213xbbi8dw5ZgouOtu7CV46UZJ2DCqSGtFI2MJdKG3MKMxMYqBJPrSIncP9G9Dc7stw5AD0oKgDc79NRLOrmYwQcW57jvVA/w400-h281/CDL19+page.JPG" width="400" /></a></div><br /><div style="text-align: justify;"><a href="https://www.oright.inc/en/sustainability" style="font-weight: bold;" target="_blank">Hair O' Right's 2018 Corporate Sustainability Report</a><b> </b>is a beautiful report, reflecting the spirit and promise of the brand, using creative imagery and photos to reflect the clear link between the brand approach and sustainability themes. Easily navigable, this report that has<b> </b>appeal to consumers as well as professional users.</div><div style="text-align: justify;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgCf2gj4q1EusI1iLhSf4tGK9Ok0kp0D7tzy5Nb31K0EUBp6bBZgDVICrSNHHGJynA_Sa1mhMboAKERLqhPss1W_1lnMh3qh81ZRiDTUJTas13KK549q0QqsnweiEwvTW7gvhbzT_5Xc98/s2048/HAIRORIGHT18+cover.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1159" data-original-width="2048" height="226" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgCf2gj4q1EusI1iLhSf4tGK9Ok0kp0D7tzy5Nb31K0EUBp6bBZgDVICrSNHHGJynA_Sa1mhMboAKERLqhPss1W_1lnMh3qh81ZRiDTUJTas13KK549q0QqsnweiEwvTW7gvhbzT_5Xc98/w400-h226/HAIRORIGHT18+cover.JPG" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhm4T3-MeQMG-rzMaMPABSN3q_M7Zs65Jkwn8qrKyNojnhtfkoxlxcffcEPv38LLvJ6Ky9wCLm2cBctK758uujyyVwkIqwoNxsXlY2tJczaMMB-cQJkfl_XHyhlsyAkNCzlPk72eSvy7j4/s2048/HAIRORIGHT18+page.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1159" data-original-width="2048" height="226" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhm4T3-MeQMG-rzMaMPABSN3q_M7Zs65Jkwn8qrKyNojnhtfkoxlxcffcEPv38LLvJ6Ky9wCLm2cBctK758uujyyVwkIqwoNxsXlY2tJczaMMB-cQJkfl_XHyhlsyAkNCzlPk72eSvy7j4/w400-h226/HAIRORIGHT18+page.JPG" width="400" /></a></div><div class="separator" style="clear: both; text-align: center;"><br /></div><br /><b><br /></b></div><div style="text-align: justify;">And a few nicely designed recently published reports:</div><div style="text-align: justify;"><b><br /></b></div><div style="text-align: justify;"><b><a href="https://www.citrix.com/about/sustainability/" target="_blank">Citrix Systems Sustainability Report 2019</a> </b>is designed in a most engaging way, using big bold messaging and color and imagery to help the narrative make an impression. You cannot fail to notice the strong statements in this report, and reading the detail then becomes compelling. Nicely navigable, optimistically colorful, carefully crafted, this report design is a credit to Citrix.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgtsRinjFlr76n0LfKao_VZ9nYad13hUmS-3bNUznnEsTqHvalFcq_fHlJNGIurbW0K9bHtdGyEvHnH1G6ckOh7oU7dK25jpbQqUpWDsqxDvCLbzYaszKvzoQeu-M6mBzIx6bd9A7ACDiw/s1969/citrix19+cover.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1100" data-original-width="1969" height="215" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgtsRinjFlr76n0LfKao_VZ9nYad13hUmS-3bNUznnEsTqHvalFcq_fHlJNGIurbW0K9bHtdGyEvHnH1G6ckOh7oU7dK25jpbQqUpWDsqxDvCLbzYaszKvzoQeu-M6mBzIx6bd9A7ACDiw/w384-h215/citrix19+cover.JPG" width="384" /></a></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><br /></div></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhJXaPFgBOi8u_8FGFB2jo-RbjJ6dH-nplr_ZqRGICnv-E71iwUCyazOw69IeDoPl7odv-rta_7n_crPX50hK7C1piRNNHZuuXH4IpZzRRAp45wv10o2k8Uyyd8qKTEG4OnbrtVKXf_NQw/s1985/citrix19+diversity.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1116" data-original-width="1985" height="225" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhJXaPFgBOi8u_8FGFB2jo-RbjJ6dH-nplr_ZqRGICnv-E71iwUCyazOw69IeDoPl7odv-rta_7n_crPX50hK7C1piRNNHZuuXH4IpZzRRAp45wv10o2k8Uyyd8qKTEG4OnbrtVKXf_NQw/w400-h225/citrix19+diversity.JPG" width="400" /></a></div><br /><div style="text-align: justify;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhw-1o3Ks-967HfSMqSvR6pdZWbjeL_9Vt7asakW9KnSQYOnFDPrDM1b71a1i4HN92093Bmfb5bjo-0RNclMULTRdHiwUDafd6bXOQaqn4j6_DXI3dADV-knF4FglizOqgcc6Lv9Bi6Aus/s1972/citrix19+blm.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1106" data-original-width="1972" height="224" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhw-1o3Ks-967HfSMqSvR6pdZWbjeL_9Vt7asakW9KnSQYOnFDPrDM1b71a1i4HN92093Bmfb5bjo-0RNclMULTRdHiwUDafd6bXOQaqn4j6_DXI3dADV-knF4FglizOqgcc6Lv9Bi6Aus/w400-h224/citrix19+blm.JPG" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjqqPBdrqyC75lOxRg06Krz3O7LCoc0738Oc1JKOeqB3TybZ7x77ZBDQV_j4GHzQ03X6ODKkjcph3XBbmnbXqZSaLqIqsWi_07wNXuwiV5PJO0V6jnC21OWdaKVuFUQaE5-T4Qq6W9ORKY/s1956/CITRIX19+butterfly.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1097" data-original-width="1956" height="224" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjqqPBdrqyC75lOxRg06Krz3O7LCoc0738Oc1JKOeqB3TybZ7x77ZBDQV_j4GHzQ03X6ODKkjcph3XBbmnbXqZSaLqIqsWi_07wNXuwiV5PJO0V6jnC21OWdaKVuFUQaE5-T4Qq6W9ORKY/w400-h224/CITRIX19+butterfly.JPG" width="400" /></a></div><br /><br /></div><div style="text-align: justify;"><b><a href="https://www.morgan-motor.com/wp-content/uploads/2020/11/Morgan-Sustainability-Report-2020-4.pdf" target="_blank">Morgan Motor Company Sustainability Report 2020</a> </b>takes your breath away, whether you are a car lover or not. The images are incredible and all closely curated to align well with the narrative and make this report a pleasure to read. This report has big pages and bold statements in a clear design language that makes reporting an art as much as a piece of disclosure.</div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhYA2sWpu0pyO3zF2VKhKbg_QfjQ84BrZYiZ2Wf23selsnyRSuRVrGgSRGsqIvghhne32URE3sY4BPWJktE-V-bl1NLs5-y-QVwOFOfVBq8p9Y0Odu6_d-qqyvdP3MwhCmC2eHMHthUr10/s2048/MORGAN+MOTOR+20+cover.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1446" data-original-width="2048" height="283" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhYA2sWpu0pyO3zF2VKhKbg_QfjQ84BrZYiZ2Wf23selsnyRSuRVrGgSRGsqIvghhne32URE3sY4BPWJktE-V-bl1NLs5-y-QVwOFOfVBq8p9Y0Odu6_d-qqyvdP3MwhCmC2eHMHthUr10/w400-h283/MORGAN+MOTOR+20+cover.JPG" width="400" /></a></div><br /><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiC-7g02gX_SaDXYkQMl47OfZNU9TV4gtgMnxcedmcSz4uOZG0p09F0AQJNYwZ_0UYrhtdHGyU-0FbiQSgQ4sGxvJvReFkQvMZJShqHFB5ygRh2t-MGd47MoL-C1radRnub1Y0dkBri0Zs/s2048/MORGAN+MOTOR+20+page25.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1435" data-original-width="2048" height="280" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiC-7g02gX_SaDXYkQMl47OfZNU9TV4gtgMnxcedmcSz4uOZG0p09F0AQJNYwZ_0UYrhtdHGyU-0FbiQSgQ4sGxvJvReFkQvMZJShqHFB5ygRh2t-MGd47MoL-C1radRnub1Y0dkBri0Zs/w400-h280/MORGAN+MOTOR+20+page25.JPG" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjnOq7xWlo4VJi-RnJI-BU7jLr3HgJrtRYkv2jQoeVPrPzfbWi6ik4HdnTnrcA4zKabHBcwdp-UiL8UGr_LGNDF4gHjnR4BCGEzV_T06bLqhyphenhyphenBQIbWsFKCe4Rfc8hL24pAFcV0V0nyjx5o/s2048/MORGAN+MOTOR+20+page40.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1455" data-original-width="2048" height="284" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjnOq7xWlo4VJi-RnJI-BU7jLr3HgJrtRYkv2jQoeVPrPzfbWi6ik4HdnTnrcA4zKabHBcwdp-UiL8UGr_LGNDF4gHjnR4BCGEzV_T06bLqhyphenhyphenBQIbWsFKCe4Rfc8hL24pAFcV0V0nyjx5o/w400-h284/MORGAN+MOTOR+20+page40.JPG" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiUj-_6N3hQe1wuxbOxp5bHyqf6mQGf7blQoUXnZpSLGAgQ6E8-2wMy3HRosmaUESOkJdDCOQg0WycFfsyBtDK2PqRcIimNZeC3OUXQvrOZAa4n-KB8voZLw-PWyt7xBE4kLGSPJRAoZOo/s2048/MORGAN+MOTOR+20+page.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1447" data-original-width="2048" height="283" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiUj-_6N3hQe1wuxbOxp5bHyqf6mQGf7blQoUXnZpSLGAgQ6E8-2wMy3HRosmaUESOkJdDCOQg0WycFfsyBtDK2PqRcIimNZeC3OUXQvrOZAa4n-KB8voZLw-PWyt7xBE4kLGSPJRAoZOo/w400-h283/MORGAN+MOTOR+20+page.JPG" width="400" /></a></div><br /><b><br /></b></div><div style="text-align: justify;"><a href="https://alstria.com/wp-content/uploads/2020/11/alstria_Sustainability_Report_2019_2020.pdf" target="_blank"><b>Alstria REIT AG Sustainability Report 2019/2020</b></a> is creatively designed, using an appealing design language throughout the report - with infographics, creative charts and graphs and photos of Alstria's employees and offices. It's super navigable with hyperlinks throughout that get you from place to place easily. Alstria's prior reports are also a delight to read and use.</div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgr0ZdLVVtiYcWYzXhiuSlHKRv22sJfCIEKAXvKUWXt8PJplQQfx-dNxc5NDiJ9HrbCoVHL-HvpDLJnpT-ouyNFb2BsTynFclUm9UmW-iNfUC6mgbEpMCIoCwrx0oIIL5QYQKvqtpSKkQ4/s2048/ALSTRIa+2019+cover.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1424" data-original-width="2048" height="278" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgr0ZdLVVtiYcWYzXhiuSlHKRv22sJfCIEKAXvKUWXt8PJplQQfx-dNxc5NDiJ9HrbCoVHL-HvpDLJnpT-ouyNFb2BsTynFclUm9UmW-iNfUC6mgbEpMCIoCwrx0oIIL5QYQKvqtpSKkQ4/w400-h278/ALSTRIa+2019+cover.JPG" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgfEOlGPQ4-umZ5bRDFXm7ucgPwkI43Bpy6pRF93fHBHG0JmxvEnZV7KiHnfeLfiZGdAVZ0wl4j1TxPcB0bdCijxSE5ay736bNyb8gCLccbeF_dgc803WT0o2VpIg2KKp_5KMFbgdc2xek/s2048/Alstria+2019+page17.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1461" data-original-width="2048" height="285" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgfEOlGPQ4-umZ5bRDFXm7ucgPwkI43Bpy6pRF93fHBHG0JmxvEnZV7KiHnfeLfiZGdAVZ0wl4j1TxPcB0bdCijxSE5ay736bNyb8gCLccbeF_dgc803WT0o2VpIg2KKp_5KMFbgdc2xek/w400-h285/Alstria+2019+page17.JPG" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhtl4DVnJR0foyhi356jT_XsXG2qb0aD13G_k_DQLjVrTX66xeiAS7D0x8262wCVKmldnVg1JYPcwY3kN0IPw5T6LsuBqYm3bS-0hfHDmLL8WQoJpjBZ2Ccqqb5XuWxMN0663MoMTxxMVA/s2048/ALSTRIA+2019+page38.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1457" data-original-width="2048" height="285" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhtl4DVnJR0foyhi356jT_XsXG2qb0aD13G_k_DQLjVrTX66xeiAS7D0x8262wCVKmldnVg1JYPcwY3kN0IPw5T6LsuBqYm3bS-0hfHDmLL8WQoJpjBZ2Ccqqb5XuWxMN0663MoMTxxMVA/w400-h285/ALSTRIA+2019+page38.JPG" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj0Ow4uAkCJx9o7LrE3FXZbkmjXNREtbVj5EkrFb54yMVcqDUPDTeJoLmhJL2FkLSFgiebDjsK4JCUWZyxKD8Wu1GRLDMFC08wsb2IdDzJb36PkXIKQJokLPu3LkaN-8L-KYgONUH7aKno/s2048/Alstria+2019+page+34.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1459" data-original-width="2048" height="285" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj0Ow4uAkCJx9o7LrE3FXZbkmjXNREtbVj5EkrFb54yMVcqDUPDTeJoLmhJL2FkLSFgiebDjsK4JCUWZyxKD8Wu1GRLDMFC08wsb2IdDzJb36PkXIKQJokLPu3LkaN-8L-KYgONUH7aKno/w400-h285/Alstria+2019+page+34.JPG" width="400" /></a></div><br /><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><a href="https://www.nttdocomo.co.jp/english/corporate/csr/about/pdf/" target="_blank"><b>NTT Docomo Group 2020 Sustainability Report</b></a> is well set out and easy to navigate with a detailed top menu and plenty of hyperlinks within the document. There something cultural about Japanese sustainability reporting that demands density of content - no centimeter of space on a page is ever left empty! - and the use of diagrams, charts, process flows and all forms of visuals to illustrate different concepts and programs seems to be mandatory. Some layouts are so dense that you need sunglasses just to look at them. As Japanese reports go, this one is easier on the eye, it's well laid out and nicely spaced, and uses imagery and photography throughout. </div><div style="text-align: justify;"> </div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjKmU4NqjkJdJtVJNm-xKhCgSTWI2sf-QU8QAJFO_PBP4tj7lsnY1lNFYEQZBOlcpM8slm-F4b09I70F8DtMi1vwMnX9UAloRcIVuUrsk1Zjaqg6gaTvgq2H9q0qaaxEZus4Bo8NKsMSVU/s1896/NTT+DOCOMO+2020+cover.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1328" data-original-width="1896" height="280" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjKmU4NqjkJdJtVJNm-xKhCgSTWI2sf-QU8QAJFO_PBP4tj7lsnY1lNFYEQZBOlcpM8slm-F4b09I70F8DtMi1vwMnX9UAloRcIVuUrsk1Zjaqg6gaTvgq2H9q0qaaxEZus4Bo8NKsMSVU/w400-h280/NTT+DOCOMO+2020+cover.JPG" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiG4IKZ45HhVnvaWyH9YiWOWnHe4bXmgKhtpA05yEFI77Dq2R6CcaNfq8IYIAHnpuYfW4pFjNcNTEGW0psVQjI4j3SzjOCc-IR0WZLAjkpJRYvNa7aUCb8_TBPi2YYWwK1PY8hlTq9IUFM/s1928/NTT+DOCOMO+2020+page3.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1366" data-original-width="1928" height="284" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiG4IKZ45HhVnvaWyH9YiWOWnHe4bXmgKhtpA05yEFI77Dq2R6CcaNfq8IYIAHnpuYfW4pFjNcNTEGW0psVQjI4j3SzjOCc-IR0WZLAjkpJRYvNa7aUCb8_TBPi2YYWwK1PY8hlTq9IUFM/w400-h284/NTT+DOCOMO+2020+page3.JPG" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhKXaKLuBAFEyrWGl4rdAZ9Y2kg7j8X2CPot5FKGWAFqHBieFhyphenhyphencFkGCkHEMbR-0Z-s6Aid0CjBTE2df4QDhoDbOuSkORgDgw6RSG6KiIcbNGMXUZItpchDmPST8Tp_jcvJX34To2E3i8I/s1918/NTT+DOCOMO+2020+page103.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1353" data-original-width="1918" height="283" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhKXaKLuBAFEyrWGl4rdAZ9Y2kg7j8X2CPot5FKGWAFqHBieFhyphenhyphencFkGCkHEMbR-0Z-s6Aid0CjBTE2df4QDhoDbOuSkORgDgw6RSG6KiIcbNGMXUZItpchDmPST8Tp_jcvJX34To2E3i8I/w400-h283/NTT+DOCOMO+2020+page103.JPG" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjGHAyiQhyphenhyphenG_R_DS-3sikFTkgzzP875VgV4a3tviCe29UGLckcAFpaGOsZmLrjc5FEfmhMOnGmyegpLmB-Mx36eNgpVDVMc77EZzZd3LdYtGY0MiYycBfQwoEUkglrlmNW7DEBdjQEEBHw/s1923/NTT+DOCOMO+2020+page115.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1351" data-original-width="1923" height="281" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjGHAyiQhyphenhyphenG_R_DS-3sikFTkgzzP875VgV4a3tviCe29UGLckcAFpaGOsZmLrjc5FEfmhMOnGmyegpLmB-Mx36eNgpVDVMc77EZzZd3LdYtGY0MiYycBfQwoEUkglrlmNW7DEBdjQEEBHw/w400-h281/NTT+DOCOMO+2020+page115.JPG" width="400" /></a></div><br /><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><span style="color: red; font-size: medium;"><b>Nugget #5: Yes, we want to hear from the Board</b></span></div><div style="text-align: justify;">Governance has become a significant part of sustainability disclosure these days, and it goes beyond simply stating the Board structure and Committee composition. There is a growing realization that the role of Boards is pivotal to corporate purpose and sustainability strategy, and that it's time for Boards to be more present and visible in guiding sustainability performance and disclosure. No surprise then that the <a href="http://csr-reporting.blogspot.com/2020/07/gri-standards-governance-galore.html" target="_blank">GRI Exposure draft for the General Disclosures includes more governance content</a> than ever before. Reports that introduce the Board, as well as the Board involvement and processes are becoming more prominent. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Here's a nice example from <a href="https://www.acuitybrands.com/about-us/sustainability" target="_blank"><b>Acuity Brands' 2020 Sustainability Report</b>.</a> The Board is presented in its entirety, and a commentary from the Corporate Secretary explains how the board has supported sustainability programs in the reporting year.</div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiybCepxMYKa1z98R63VTgEzZ4fdTlGWugbQsaTdpC6yalrbNQoWyqsBYu7a13Aml-vGEazu6YPMhg-xe3EQVK3y8YGWHBZLGd1UKb_FxWCIcCGpWry53aoAkWf5xGnzTTjMRHpZ4kb4ec/s2048/acuity2020+board1.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1286" data-original-width="2048" height="251" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiybCepxMYKa1z98R63VTgEzZ4fdTlGWugbQsaTdpC6yalrbNQoWyqsBYu7a13Aml-vGEazu6YPMhg-xe3EQVK3y8YGWHBZLGd1UKb_FxWCIcCGpWry53aoAkWf5xGnzTTjMRHpZ4kb4ec/w400-h251/acuity2020+board1.JPG" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjvDioh5cB-ykuKfSB7mwQ1snC5xkXkLT9g6v4mc36ydph7ZP7LKleoX9pZShUkizi5uenutItijwfVAAcXqrKzQVW2N7lt1NHVdg3ZBVayhMdclHh7zKtvPOVjN1axMAxecvipqHACorw/s2048/acuity2020+board2.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1287" data-original-width="2048" height="251" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjvDioh5cB-ykuKfSB7mwQ1snC5xkXkLT9g6v4mc36ydph7ZP7LKleoX9pZShUkizi5uenutItijwfVAAcXqrKzQVW2N7lt1NHVdg3ZBVayhMdclHh7zKtvPOVjN1axMAxecvipqHACorw/w400-h251/acuity2020+board2.JPG" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiSXr3Wlxt4Xw7BII4NjgeqSMxlSvsO-2PJpsZ50xKo7zqRXvacJNJHKVXaIMfDCFac4wSg603AfdogVzwkR13cmqu_4axgf6Rf1zSqRkycjH_VME8NEzyd9P23epY3rg1fT0ZVqmEqKk4/s2048/acuity2020+board3.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1305" data-original-width="2048" height="255" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiSXr3Wlxt4Xw7BII4NjgeqSMxlSvsO-2PJpsZ50xKo7zqRXvacJNJHKVXaIMfDCFac4wSg603AfdogVzwkR13cmqu_4axgf6Rf1zSqRkycjH_VME8NEzyd9P23epY3rg1fT0ZVqmEqKk4/w400-h255/acuity2020+board3.JPG" width="400" /></a></div><br /><div style="text-align: justify;"><b><span style="color: red; font-size: medium;">Nugget #6: Too long is too much</span></b></div><div style="text-align: justify;">No-one wants a sustainability report that is soooooooooo long, just the thought of wading through hundreds of pages is a nightmare, even if it's a downloadable PDF that's not going to be printed. A report should be a reflection of a year of activity, not your entire corporate history. I am not interested, frankly, in seeing the covers of your last 20 reports, and I am not really interested in your sustainability timeline (unless it's a first report, where we can allow a little more leeway!). What matters is how you improved your impacts in the reporting year and how you will continue going forward. So, clear out all the clutter. Make a nice home for all the non-essential, not-material, not-in-focus information on your website, and link to that. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Clutter, for me, also includes long sections on management approach. Management approach statements are what I call evergreen content; it changes rarely from year to year. Far better to house your management approaches, policies and position statements on the website, making them accessible to anyone who needs them, and avoiding repetition of this content in every annual sustainability report. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">See this <a href="https://www.jnj.com/about-jnj/policies-and-positions" target="_blank">ESG Policy and Positions page on the Johnson & Johnson website</a> (Disclosure: I am proud to count Johnson & Johnson as a client). See some more examples:</div><div style="text-align: justify;"><ul><li><a href="https://www.sempra.com/Investors/governance/policies-position-statements" target="_blank">Sempra Energy</a></li><li><a href="https://www.3m.com/3M/en_US/sustainability-us/annual-report/past-reports-policies/" target="_blank">3M</a></li><li><a href="https://www.pepsico.com/sustainability/esg-topics-a-z" target="_blank">PepsiCo</a></li><li><a href="https://corporate.lowes.com/our-responsibilities/corporate-responsibility-reports-policies" target="_blank">Lowe's</a></li></ul></div><div style="text-align: justify;">Some companies also house sustainability case studies and stories on their website or corporate blog - see these examples from <a href="https://www.abbott.com/responsibility/sustainability/sustainability-stories.html" target="_blank">Abbott </a>and <a href="https://www.ansell.com/eu/en/about-us/sustainability/sustainability-stories?page=1&page_size=4&sort=Date&sort_type=desc" target="_blank">Ansell </a>. Such stories can also be referenced in the sustainability report without having to include the full content, thereby enabling a shorter, more compact report.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><br /></div>
<div style="text-align: justify;"><span style="color: red; font-size: medium;"><b>
Nugget #7: Don't forget COVID-19. As if anyone could.</b></span></div><div style="text-align: justify;">Many sustainability reports published in 2020 already included detailed sections on COVID-19 and the company's response and actions during the pandemic. In fact, hardly any reports published after April 2020 did not include a reference to the company's COVID-19 response. (I purchased a fantastic analysis of <a href="https://esgspectrum.com/measures-for-covid-19/by-industry-groups/" target="_blank">COVID-19 in sustainability reports</a> published in 2020 from ESG Spectrum to get a sense of how early treatment of COVID-19 was developing in reporting.)</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Here's an example from the<a href="https://www.colesgroup.com.au/FormBuilder/_Resource/_module/ir5sKeTxxEOndzdh00hWJw/file/Sustainability_Report.pdf" target="_blank"> 2020 Sustainability Report of Coles Group Supermarkets in Australia</a></div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjEG2w0OIovU8SIrS6sKKjo0MDlSmDqSPTVHnM5XIr0B1RAnMTE6iANdg6TEG3qDKjBPc8XbKBOwKy0ls_eH8i30CtCzcUWgGjdfRvxe5nWytAJUzaiv43TmPOFM4LpqDhEDAavM1qmoOI/s1860/COLES+2020+covid1.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1860" data-original-width="1262" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjEG2w0OIovU8SIrS6sKKjo0MDlSmDqSPTVHnM5XIr0B1RAnMTE6iANdg6TEG3qDKjBPc8XbKBOwKy0ls_eH8i30CtCzcUWgGjdfRvxe5nWytAJUzaiv43TmPOFM4LpqDhEDAavM1qmoOI/w271-h400/COLES+2020+covid1.JPG" width="271" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjOlQeuvSrLYLymFEj-XlvjHrDdoj-YlaUKli8VEBT0jg53YwNJlJWOp2u8U9CSV8eZU7Bd4zdyUhJGR_iRwdmMN-jFaypzoBhKKYsgaqX8FUH9wEzHLXxWacybdmiQnTgFWPTVQjUuwXQ/s2048/COLES+2020+covid2.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1409" data-original-width="2048" height="275" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjOlQeuvSrLYLymFEj-XlvjHrDdoj-YlaUKli8VEBT0jg53YwNJlJWOp2u8U9CSV8eZU7Bd4zdyUhJGR_iRwdmMN-jFaypzoBhKKYsgaqX8FUH9wEzHLXxWacybdmiQnTgFWPTVQjUuwXQ/w400-h275/COLES+2020+covid2.JPG" width="400" /></a></div><br /><div style="text-align: justify;">In 2020, COVID-19 responses were primarily anecdotal and covered the ways in which companies responded to lockdowns, started to Zoom and protected their employees, as well as supporting donations of PPE and other items in their communities. I suspect that reports published in 2021 will address COVID-19 from a more strategic standpoint, encompassing the learning gained in this first year of pandemic response, and new or refreshed programs being put in place to address business continuity, employee health and safety (including mental health) and virtual working, among other things. While it still may be too early to do a full materiality assessment, many companies will be able to draw some conclusions and incorporate this new COVID-impacted thinking into their 2021 planning and disclosure. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><span style="color: red; font-size: medium;"><b>Nugget #8: Disclosure frameworks.. take a deep breath</b></span></div><div style="text-align: justify;">How many disclosure frameworks can you cram into one sustainability report? Today, companies are disclosing against several frameworks such as GRI, SASB, CDP, TCFD, SDG, UNGC, ISO26000 and/or other local reporting frameworks required by legislators such as the <a href="https://www.hkex.com.hk/Listing/Rules-and-Guidance/Environmental-Social-and-Governance?sc_lang=en" target="_blank">Hong Kong Stock Exchange</a>, and/or sector frameworks such as <a href="https://www.ipieca.org/media/5108/ipieca_sustainability-guide_2020_mod1-rep.pdf" target="_blank">IPIECA</a> for the oil and gas industry. And this is without even mentioning the <a href="https://integratedreporting.org/resource/international-ir-framework/" target="_blank"><IR> Integrated Reporting</a> framework that includes sustainability information as part of an investor-focused annual report. How do you decide which of these frameworks to use? <a href="https://home.kpmg/xx/en/home/insights/2020/11/the-time-has-come-survey-of-sustainability-reporting.html" target="_blank">The KMPG 2020 Survey of Sustainability Reporting</a> confirmed that GRI is the most widely used framework by reporters across the world (84% of the world's largest 250 companies), so that's a good place to start. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg1CFcDBCbywMGVCkwJ1hWheU-xm2f7LakEKQz7-oj-yoKD1WPQoUrWTgur9HoWMEK8Sq_MtUJVqzfw7x_tzd_tHUxFZ9EWzYqFNSdnRw7lT3aAoBvOCyyLUF1HmDpZO8EIMOAOXChs4ko/s2048/KPMG20+GRI.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1438" data-original-width="2048" height="281" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg1CFcDBCbywMGVCkwJ1hWheU-xm2f7LakEKQz7-oj-yoKD1WPQoUrWTgur9HoWMEK8Sq_MtUJVqzfw7x_tzd_tHUxFZ9EWzYqFNSdnRw7lT3aAoBvOCyyLUF1HmDpZO8EIMOAOXChs4ko/w400-h281/KPMG20+GRI.JPG" width="400" /></a></div><br />As for the rest, you can prioritize them according to (1) what your stakeholders demand (2) what will most usefully help you manage your impacts and (3) what will help improve your competitive standing, reputation and trust. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b><span style="color: red; font-size: medium;">Nugget #9: Diversity is more than gender</span></b></div><div style="text-align: justify;">I am not even sure why gender equity is even a part of the diversity discourse. Gender is a topic in its own right, and dumping gender in the diversity bucket seems to me to be an insult to women everywhere. With women representing around 50% of the population in most countries, the opportunities to advance women are there for the taking. I believe the focus of gender equity is now less on the number of women in the workforce or in management. I think it's more about the number of women that are actually making a difference in the business at the highest levels in revenue generating or technical roles - not only Human Resources Managers or administrators - and its about the processes in place to ensure women are heard and counted and, of course, paid on the same scale as male counterparts in similar roles. It's interesting that the <a href="https://www.gov.uk/guidance/gender-pay-gap-reporting-overviewhttps://www.gov.uk/guidance/gender-pay-gap-reporting-overview">UK gender pay gap reporting law </a>has caused global companies to share their data for UK operations only; for companies that are serious about gender equity and pay parity, I would expect them to disclose this across their global operations, not just in the UK. I think this may be a differentiating factor in future. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">But, diversity is more than gender. And I don't care how many nationalities work at your company either. It sort of stands to reason that global companies will employ a global workforce; the fact that you employ people born in different places is rather meaningless to me. Racial equity has now become an agenda item, given events of 2020, and sustainability reports have now become home to new and stronger declarations in this respect, especially in the U.S. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><a href="https://www.charlesrussellspeechlys.com/globalassets/pdfs/crs-responsible-business-report-2020v2.pdf" target="_blank"><b>Charles Russell Speechlys' first Responsible Business Report</b></a> includes a page on religious and ethnic diversity. </div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjdFW4fMV0QM0Sh7BAOFL44eZDlndvM_nD4mWGTHgjdwz4rzmUoYEuvaEO36V7IZSl7_ByoLRqsnMebcdYA-v79JZ47C7lqvWA-4rFN_On0VEyA4VPo1XRnRE46BTpYks3m-y1ntybjBpU/s2048/CHARLES+RUSSEL+SPLEECHLYS+diversity.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1450" data-original-width="2048" height="284" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjdFW4fMV0QM0Sh7BAOFL44eZDlndvM_nD4mWGTHgjdwz4rzmUoYEuvaEO36V7IZSl7_ByoLRqsnMebcdYA-v79JZ47C7lqvWA-4rFN_On0VEyA4VPo1XRnRE46BTpYks3m-y1ntybjBpU/w400-h284/CHARLES+RUSSEL+SPLEECHLYS+diversity.JPG" width="400" /></a></div><div><br /></div><a href="https://media.elcompanies.com/files/e/estee-lauder-companies/universal/our-commitments/2020-cs-report/elc-fy20-citizenship-sustainability-report.pdf?_gl=1*4ulwo2*_ga*MTc4NjYyMzY2Mi4xNjA2NTY1Mjc1*_ga_V9QZ4PSDRY*MTYwODk4MTk5OC4xLjAuMTYwODk4MTk5OC42MA.." target="_blank"><b>Estee Lauder's 2020 Citizenship and Sustainability Report</b></a> commits to act on racial equity.</div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhtnaIYSln5X5CH8udvQUzOObb3ENSlDr6-n-6OHPoWUcAarc40fJFwzDleFkCG9dWf2XG6rBMdqMLEzqjm0kjsO9Z9Vvp0UrZR_5al37Ecs4N3gr4P7mr-nP9eciGRC3neMR3pLTQU64g/s1868/esteelauder2020+diversity.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1868" data-original-width="1455" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhtnaIYSln5X5CH8udvQUzOObb3ENSlDr6-n-6OHPoWUcAarc40fJFwzDleFkCG9dWf2XG6rBMdqMLEzqjm0kjsO9Z9Vvp0UrZR_5al37Ecs4N3gr4P7mr-nP9eciGRC3neMR3pLTQU64g/w311-h400/esteelauder2020+diversity.JPG" width="311" /></a></div><div><br /></div><a href="https://avisbudgetgroup.com/wp-content/uploads/2020/11/CSR2020_Brochure_23.10.20.pdf" target="_blank"><b>Avis Budget Group 2020 Sustainability Report</b></a> also devotes a section to BLM: <div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEisSHKi1mPtyEq1l9GEKMegdkf76R6ZvEHdz8TASZUjlkAvGUrzrO9hFla-0AC_-PxsXSDikgNJzWBuaNHU3zJlcCZG70YqZHjiNOsWE7uVs31h5XmtNSVD19u3v0wNC59fMqWZJB1NKfg/s1917/AVIS+2019+BLM.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1358" data-original-width="1917" height="284" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEisSHKi1mPtyEq1l9GEKMegdkf76R6ZvEHdz8TASZUjlkAvGUrzrO9hFla-0AC_-PxsXSDikgNJzWBuaNHU3zJlcCZG70YqZHjiNOsWE7uVs31h5XmtNSVD19u3v0wNC59fMqWZJB1NKfg/w400-h284/AVIS+2019+BLM.JPG" width="400" /></a></div><br /><div><div><div class="separator" style="clear: both; text-align: center;"><br /></div><br /><div style="text-align: justify;"><b style="color: red; font-size: large;">Nugget #10: The CEO is not a puppet</b></div><div style="text-align: justify;">Don't let the CEO statement be a plastic PR piece. Make it count. The CEO Statement sets the tone for the entire report, some people may read only the CEO letter. Don't make it full of clichés and platitudes and inane statements about how proud everyone is and how embedded sustainability is. As a business leader, the CEO is expected to address sustainability both from a business perspective as well as from a purpose perspective. A CEO letter that talks only about sustainability strategy and aligning with GRI just doesn't ring true. And if it's true, the CEO is not doing her job. And a little personal insight goes a long way here too. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The Brand President of Icebreaker sends a very personal and seemingly authentic message about the role its company is playing to advance sustainable fashion in <a href="https://res.cloudinary.com/icebreakernz/image/upload/v1595812748/ourstory/reports/transparency_report_lowres_2019.pdf" target="_blank">Icebreaker's 2019 Transparency Report</a>.</div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh-iFvoUfe4dteq1Z_iVNZTdr6hUsEFGdSriK0AM8srUTR6Cw60HMht4ppxM2wtSoRy4e1DE9BZlRVLcMDf8d5CAOT-mlyQDVph18v_FxbIxNKaLHWm59T44p-h4kAsHMPau6XBUX5qkP0/s2048/icebreaker+2019+ceo.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1378" data-original-width="2048" height="269" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh-iFvoUfe4dteq1Z_iVNZTdr6hUsEFGdSriK0AM8srUTR6Cw60HMht4ppxM2wtSoRy4e1DE9BZlRVLcMDf8d5CAOT-mlyQDVph18v_FxbIxNKaLHWm59T44p-h4kAsHMPau6XBUX5qkP0/w400-h269/icebreaker+2019+ceo.JPG" width="400" /></a></div><br /><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><span style="color: red; font-size: medium;"><b>Nugget #11: Stock images should be left in stock</b></span></div><div style="text-align: justify;">If there is anything that crushes the credibility of sustainability reports, it's stock images of plastic people in a range of plastic poses. They do not represent your company, and in that sense, they are misleading. Stock imagery, in my view, erodes the credibility of your reporting. Far better to use images of real people in your business, real operations, real business and real life. If you have no images, then use a few icons and some design elements - there are many great reports that have no photos at all - but do not sink to the depths of imagery that destroys your message. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Here are some real-people images from recent reports</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><br /></div><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto;"><tbody><tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj92wo0aJeHPGu-RolbFkKayPv-2e64mSIVwxH0xhCCz9_rKakMJPWSpF5rpQuNShMM5LGsoCFQzEjaqOSdh7a2jIskhaL9tKr_M7OEH09NJ7d-ohTPU7QF8JzGCcK4G5CJ6XvgrcBfZFc/s928/AVIS+2019+people+p19.JPG" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="829" data-original-width="928" height="358" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj92wo0aJeHPGu-RolbFkKayPv-2e64mSIVwxH0xhCCz9_rKakMJPWSpF5rpQuNShMM5LGsoCFQzEjaqOSdh7a2jIskhaL9tKr_M7OEH09NJ7d-ohTPU7QF8JzGCcK4G5CJ6XvgrcBfZFc/w400-h358/AVIS+2019+people+p19.JPG" width="400" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;"><a href="https://avisbudgetgroup.com/wp-content/uploads/2020/11/CSR2020_Brochure_23.10.20.pdf" style="text-align: left;" target="_blank"><b>Avis Budget Group 2020 Sustainability Report</b></a></td></tr></tbody></table><br /><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto;"><tbody><tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhhDIXJHLHspMrYxJeFp6ABNc4bHUWX6vKzBeAv4n-lYFg_Sh7-RHDHe-6IWmyM7uOcF8WaN3ugTrG3VGMUphkGupcae28IV0OQny6-DGoeG9obh1XXx7kx7TGuca6AuAo6x2yPvLEjkqI/s2048/MORGAN+MOTOR+20+page55.JPG" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1441" data-original-width="2048" height="281" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhhDIXJHLHspMrYxJeFp6ABNc4bHUWX6vKzBeAv4n-lYFg_Sh7-RHDHe-6IWmyM7uOcF8WaN3ugTrG3VGMUphkGupcae28IV0OQny6-DGoeG9obh1XXx7kx7TGuca6AuAo6x2yPvLEjkqI/w400-h281/MORGAN+MOTOR+20+page55.JPG" width="400" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;"><a href="https://www.morgan-motor.com/wp-content/uploads/2020/11/Morgan-Sustainability-Report-2020-4.pdf" target="_blank"><b>Morgan Motor Company Sustainability Report 2020</b></a><br /><br /></td></tr></tbody></table><br /><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto;"><tbody><tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiMmtl5yiTvhjeeg4S9vyGyxhfr-fWDxgC3NpRkrlEd0818L88WMYcYlRXqmZHkuYoU7SRXPoWAAvitLblsvIRFzfCPimqsfAWUrEJLUlqLUpOkl-56ZMy3Cp6HtFtDej2CahD19oUlctA/s1831/Mauser19+people.JPG" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1095" data-original-width="1831" height="239" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiMmtl5yiTvhjeeg4S9vyGyxhfr-fWDxgC3NpRkrlEd0818L88WMYcYlRXqmZHkuYoU7SRXPoWAAvitLblsvIRFzfCPimqsfAWUrEJLUlqLUpOkl-56ZMy3Cp6HtFtDej2CahD19oUlctA/w400-h239/Mauser19+people.JPG" width="400" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;"><a href="https://www.mauserpackaging.com/en/Site-components/News/News/121820-Sustainability-Report" target="_blank"><b>Mauser 2019 Sustainability Report</b></a></td></tr></tbody></table><br /><div style="text-align: justify;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhA8oTbKrgovZ_GEUgGOp170Rcu4bP-2Piv27SjHDCYmmZH1iRqXuTrDtZa_gyOjrrkzgM1tj5quBUNwilwq0N7uqYNkdJXqaiMTjwN1tZH2YiGzdsWH14v8aLnS4twkd-PvrsG9V8eeTk/s1350/ibstock+2019+people.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1284" data-original-width="1350" height="380" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhA8oTbKrgovZ_GEUgGOp170Rcu4bP-2Piv27SjHDCYmmZH1iRqXuTrDtZa_gyOjrrkzgM1tj5quBUNwilwq0N7uqYNkdJXqaiMTjwN1tZH2YiGzdsWH14v8aLnS4twkd-PvrsG9V8eeTk/w400-h380/ibstock+2019+people.JPG" width="400" /></a></div><div class="separator" style="clear: both; text-align: center;"><a href="https://www.agg-net.com/files/aggnet/attachments/news/sustainability-report-2019.pdf" target="_blank"><b>Ibstock plc 2019 Sustainability Report</b></a></div><div class="separator" style="clear: both; text-align: center;"><br /></div></div><div style="text-align: justify;"><b><span style="color: red; font-size: medium;">Nugget #12: Don't make your report a danger zone</span></b></div><div style="text-align: justify;">If there's anything that frustrates me when reading reports it's vertical text. I can't read vertical text. It hurts my neck. Once, I tried to stand my computer screen on its end so that I could read vertical narrative, and ended up dislocating my shoulder as well. I know that Chinese and other Asian languages are written vertically, and that obviously works for reports in those languages. But if your report is in English, please do not make me stand on my head to read it. A recent example...</div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjj0huZcPBrYQhvKc4ct-53B_rVKB9tm8wGF2KXOYP515dks1AErS7eyitaUXRT5YvY5TFwcplzYj429E0ZDOV4nY9DHwzjsQ0pD40kzEq8l_J2aoi2IaC9qhrKU9PlEEEXrfvLStKlxKA/s745/NTT+DOCOMO+2020+vertical.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="662" data-original-width="745" height="355" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjj0huZcPBrYQhvKc4ct-53B_rVKB9tm8wGF2KXOYP515dks1AErS7eyitaUXRT5YvY5TFwcplzYj429E0ZDOV4nY9DHwzjsQ0pD40kzEq8l_J2aoi2IaC9qhrKU9PlEEEXrfvLStKlxKA/w400-h355/NTT+DOCOMO+2020+vertical.JPG" width="400" /></a></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><span style="color: red; font-size: medium;"><b>Nugget #13: Make materiality material</b></span></div><div style="text-align: justify;">Oh, that materiality thing again. It's simple. If materiality is so material, it needs to be obvious. If you have gone to great lengths to develop a materiality matrix, or a list of material topics, then these topics need to be discussed in your report. The materiality assessment is not conducted in a vacuum. Originally, it was intended to provide the basis for disclosure - although now it's seen as a tool to develop strategy as well. But if you indicate material topics, make sure we know where to find your disclosure on material topics in your report. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">This <a href="https://www.zf.com/master/media/corporate/m_zf_com/company/sustainability/sustainability_reports/ZF-SustainabilityReport2019_EN.pdf" target="_blank"><b>2019 Sustainability Report from ZF Friedrichshafen</b></a> does it very clearly - by listing the material topics using GRI Standards. The report itself is mainly one long GRI Content Index with all disclosures ordered in the way they appear in the GRI Standards. This is an approach occasionally used by reporters; it's not my preferred approach (what if you have a material topic that doesn't quite fit the GRI prescribed set of topics?) but it does demonstrate rigor and makes it easy to find the disclosures in the report</div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjBkuF5QRbaOQFNfGZv-O3yvWSMK_AAtD5C8hfbkeiMn-bOtzfxNVoOWI4DsbtdqCChfBi1CDiVTTQjg4KAOBlY9jJ8hlffYxEFjPhB7Y9O5zgOUdzhgGhtpVr5CCefj023BTlEbQHASWU/s986/ZF+2019+materiality.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="986" data-original-width="692" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjBkuF5QRbaOQFNfGZv-O3yvWSMK_AAtD5C8hfbkeiMn-bOtzfxNVoOWI4DsbtdqCChfBi1CDiVTTQjg4KAOBlY9jJ8hlffYxEFjPhB7Y9O5zgOUdzhgGhtpVr5CCefj023BTlEbQHASWU/w281-h400/ZF+2019+materiality.JPG" width="281" /></a></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div style="text-align: justify;"><b><span style="color: red; font-size: medium;">Nugget #14: Ice cream is critical to sustainability reporting</span></b></div><div style="text-align: justify;">Yes, stock up and make sure you consume lots of ice cream during the reporting season. How else will your report turn out to be fantastic?</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><span style="color: red; font-size: medium;"><b>Nugget #15: Your employees are your audience</b></span></div><div style="text-align: justify;">Before the launch of any sustainability report, you should have an internal communication and activation plan that ensures that employees not only know your report exists, but actually take some time to dip into it, and even discuss its contents. In today's world, employees want more than a career, they want a career that helps them make a difference. <a href="https://www.raconteur.net/hr/corporate-culture/attract-talent-company-purpose/" target="_blank">Research from Glassdoor </a>shows how prevalent this has become.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiPktoW_LwVgXoi0eTh-iDKt234PgWJNFmd0uefWoNJxczu0AdSSQnnv04qQbASOSgVsBJlN1GlfF_nmfGqOOQYy6pCDYT9vTzRE_sqNwujOxVOdCoEpY2jgJoRFzqV1CI2I8O2H2EsmJ8/s1079/glassdoor+purpose.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="602" data-original-width="1079" height="224" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiPktoW_LwVgXoi0eTh-iDKt234PgWJNFmd0uefWoNJxczu0AdSSQnnv04qQbASOSgVsBJlN1GlfF_nmfGqOOQYy6pCDYT9vTzRE_sqNwujOxVOdCoEpY2jgJoRFzqV1CI2I8O2H2EsmJ8/w400-h224/glassdoor+purpose.JPG" width="400" /></a></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: justify;">So engaging your employees with your sustainability reporting can support attraction of new employees, retention of existing ones and motivation and productivity across the organization. Employees are also your ambassadors, and the millions of touchpoints they manage each day with external stakeholders are opportunities to get your message through. It can be something as simple as "Read our latest sustainability report" in an email signature, or something more invested such as a proactive discussion with a client or NGO or supplier on what matters most. Remember that employees are also consumers, neighbors, activists and many are also investors, directly or indirectly, so the report is for them on more than one level. </div><div class="separator" style="clear: both; text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: justify;">But, most importantly, employees are the ones who really know what's going on. They live your company day-in day-out. If your sustainability report presents a picture of a company they do not recognize, Houston, you have a problem. The more you engage employees in activating your report, the more value you as a company, and they as individuals, will gain from it. </div><div class="separator" style="clear: both; text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: justify;">Some reports include a commentary from the Human Resources leader in the company. </div><div class="separator" style="clear: both; text-align: justify;"><br /></div><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto;"><tbody><tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhfkS5ADqURVMgTKY0cNEFqMWafxmd_yPwGPKfoQLK0ePs_cYqjEQRDHJyviI3ENdSR_xytykL5nt_8BrnI62G2s1imUz5yPUVuXyeVwHyvThuaIJi2eg22oUZ37_q_AOXUMvHy1Ce4yWo/s2048/armacell+2019+HR.JPG" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1425" data-original-width="2048" height="279" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhfkS5ADqURVMgTKY0cNEFqMWafxmd_yPwGPKfoQLK0ePs_cYqjEQRDHJyviI3ENdSR_xytykL5nt_8BrnI62G2s1imUz5yPUVuXyeVwHyvThuaIJi2eg22oUZ37_q_AOXUMvHy1Ce4yWo/w400-h279/armacell+2019+HR.JPG" width="400" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;"><b><a href="https://www.armacell.com/report/4026/download" target="_blank">Armacell Sustainability Report 2019</a><br /><br /></b></td></tr></tbody></table><br /><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto;"><tbody><tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjuA5Z61ernmsro3J-ednV3OQ6wUYFzK1XJo_l-UfHqaQSibDn8_Hn91BSb9aC0Y3HY0jRpZTrZHpf95zq9fkiyJAEQdMELXiXyVBJH7y_aGPrTJn4vayy1vDeCKgGKtQqVb_r6jN9z__s/s1880/cisco+2020+HR+p4.JPG" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1880" data-original-width="1452" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjuA5Z61ernmsro3J-ednV3OQ6wUYFzK1XJo_l-UfHqaQSibDn8_Hn91BSb9aC0Y3HY0jRpZTrZHpf95zq9fkiyJAEQdMELXiXyVBJH7y_aGPrTJn4vayy1vDeCKgGKtQqVb_r6jN9z__s/w309-h400/cisco+2020+HR+p4.JPG" width="309" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;"><a href="https://www.cisco.com/c/dam/m/en_us/about/csr/csr-report/2019/_pdf/csr-report-2019.pdf" target="_blank"><b>Cisco CSR Impact Report 2020</b></a></td></tr></tbody></table><br /><div class="separator" style="clear: both; text-align: justify;">I always appreciate Human Resources leaders starring in sustainability reports, because, since the publication of my book on <a href="https://www.routledge.com/CSR-for-HR-A-Necessary-Partnership-for-Advancing-Responsible-Business-Practices/Cohen/p/book/9781906093464" target="_blank">CSR for HR</a>, many moons ago, and the mantra I developed at that time: It is time for HR to wake up to CSR!" , not an awful lot has changed. Human Resources should be proactive partners in advancing sustainable practice; instead, many are laggards and blockers. Noticing HR leaders in sustainability reports is always a little glimmer of optimism.</div><div class="separator" style="clear: both; text-align: justify;"><br /></div></div><div style="text-align: justify;"><span style="color: red; font-size: medium;"><b>Nugget #16: Defining the process is more than saying there is a process</b></span></div><div style="text-align: justify;">GRI reporters know that the Standards require not only a list of material topics, but also a description of the process through which those topics were developed. And here we have the biggest hole in sustainability reporting that was ever dug. What are the key elements of a process? What are the criteria used for decision making at each stage of the process? How are topics prioritized? What is the relative weighting given to different stakeholder voices? So many questions about process ... and very few are answered in sustainability reports. At best, the process tends to be summed up in ways that basically amount to: </div><div style="text-align: justify;"><ul><li>We mapped the universe and came up with xxx (some very high number) total topics</li><li>We surveyed our stakeholders and incorporated their input</li><li>We had a management discussion and prioritized the topics</li></ul></div><div style="text-align: justify;">In most cases, we are left with no understanding of whether there was an actual process, who was involved, who influenced and how decisions were made. And yet, materiality is so pivotal to sustainability reporting. I look for companies that provide greater insight into the development of the list of material topics they are reporting against. Here are two examples:</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Ferrero provides a robust description in its<b> <a href="https://www.ferrerosustainability.com/int/sites/ferrerosustainability_int/files/2020-12/ferrero_sr19_final.pdf" target="_blank">2019 Sustainability Report</a>. </b>Ferrero uses <a href="https://www.datamaran.com/" target="_blank"><b>Datamaran</b></a> (the innovative software ESG and risk analytics platform) to scan the topics universe. What's nice about this process is the combination of technology to identify and validate topics, as well as internal discussion and judgement. There is a high-level description of how topics were prioritized, and that's good to see. The materiality assessment is also approved by the Audit Committee of the Board of Directors. (As a bonus, Ferrero confirms using this materiality assessment as the basis for its sustainability strategy, not only for its reporting. They must have read Nugget #13!)</div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgm-kvi1PxAyrnZewrylqZY3x9rZKYaf8EWDEP9BoGBy4sloEY86Yb10OlthsvoC2S01ebFani7yEUCF8pqtEpmD278HX-XHMhi1P6VRtdu4RzD0zXMaNqtyFsETEzH59JWmzMrgorop68/s2048/FERERRO+2019+maeriality.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1449" data-original-width="2048" height="283" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgm-kvi1PxAyrnZewrylqZY3x9rZKYaf8EWDEP9BoGBy4sloEY86Yb10OlthsvoC2S01ebFani7yEUCF8pqtEpmD278HX-XHMhi1P6VRtdu4RzD0zXMaNqtyFsETEzH59JWmzMrgorop68/w400-h283/FERERRO+2019+maeriality.JPG" width="400" /></a></div><div><br /></div><div><br /></div><div style="text-align: justify;"><a href="https://www.telstra.com/sustainability/report" style="font-weight: bold;" target="_blank">Telstra's 2020 Sustainability Report</a><b> </b>also provides a detailed discussion on the way material topics were evaluated and prioritized this year<b> </b><span style="text-align: justify;">including (already!) the impact of COVID-19. The discussion also provides a perspective on the change in methodology and the differences from the previous materiality assessment. </span></div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiUus4CUfn7eE7fhZSF01KnLNdw8EAjbk5lO3Bcdj5Ab5jN4rjVeAJE3mIN3ORokZ-YXByWHI51WgvFlwablzsRagrjPseh7oUDsogvtpnQk-8Wrsy0THIDQ8g9RCWKOiFS1HV2wwrWgN0/s1785/telstra+2020+materiality.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1785" data-original-width="1294" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiUus4CUfn7eE7fhZSF01KnLNdw8EAjbk5lO3Bcdj5Ab5jN4rjVeAJE3mIN3ORokZ-YXByWHI51WgvFlwablzsRagrjPseh7oUDsogvtpnQk-8Wrsy0THIDQ8g9RCWKOiFS1HV2wwrWgN0/w290-h400/telstra+2020+materiality.JPG" width="290" /></a></div><br /><div><br /></div><div style="text-align: justify;"><span style="color: red; font-size: medium;"><b>Nugget #17: Format makes a difference</b></span></div><div style="text-align: justify;">Remember that most of the time, your report will be read on a screen and not as a printed document. Therefore, your design should be screen friendly. To me, that means that it's easy to scroll page by page, and that the font should be big enough (but not oversized) to read at 100% scale without having to keep enlarging the document. A horizontal A4 format seems to work best. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">This is a page from <a href="https://www.kingfisher.com/content/dam/kingfisher/Corporate/Documents/Sustainability/our-responsible-business/KF_Responsible_Business_report_19-20_3.pdf" target="_blank"><b>Kingfisher's 2019/20 Responsible Business Report</b></a> at 100% on my screen. It scrolls nicely page by page, and the clever use of font sizes makes for a positive reading experience.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhb3g6ABDN83b4d9grG-YUhsMffYQyUtmbITfVoFlF5HWiCat2UnsVXMktqn3OXZEG652DqiO3Qhipk9shggq-balPEsOZdy8ax5oXhPCWj1PQoOf88pPrw-mgeAWjsfGVtpPiKX7hoctI/s1916/kingfisher19+p14.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1362" data-original-width="1916" height="284" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhb3g6ABDN83b4d9grG-YUhsMffYQyUtmbITfVoFlF5HWiCat2UnsVXMktqn3OXZEG652DqiO3Qhipk9shggq-balPEsOZdy8ax5oXhPCWj1PQoOf88pPrw-mgeAWjsfGVtpPiKX7hoctI/w400-h284/kingfisher19+p14.JPG" width="400" /></a></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><span style="color: red; font-size: medium;"><b>Nugget #18: Let them tell your story</b></span></div><div style="text-align: justify;">I like to see external stakeholder voices in sustainability reports. I know how difficult it is to get external quotes and commentaries approved, and I always think that companies who manage to do that are showing the strength of trust in them and the relationships they maintain. External voices should not be gushingly flattering, but should be pertinent and insightful. Most companies will include quotes from customers or community partners or commentaries from third parties. An example is that for several years now, I have been reviewing and providing commentary to a fabulous company in the food sector - Ajinomoto of Japan. Together with those of other commentators, my commentary is published in full. I submit my independent commentary (for which I am paid, for the sake of full disclosure) and it is published in full with no edits or changes. No-one tries to influence my commentary in any way. I write what I think is a fair review and include areas that I feel could be explored in more depth in Ajinomoto's disclosure. I find it very interesting to read the commentaries of the other three or four experts that provide them in each annual report. Here are my commentaries from the <a href="https://www.ajinomoto.co.jp/company/en/ir/library/databook/main/07/teaserItems1/0/linkList/0/link/SDB2020_all_en.pdf" target="_blank"><b>2020 Ajinomoto Sustainability Data Book</b></a>.</div><div class="separator" style="clear: both; text-align: center;"><br /></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhYMQjkqKe_TKXXmp-e9MTL_b2a4JMhrqwHxvQIjEB0C2IFu3tQQHguoEnS_qKKCYb1_w1vYfHQA0dszvDm3R74JaQxpAP4YuGYLD3bRVhyphenhyphenNix-xOoAfG8tT3xzW09BZPuiErmo4IiSQZ0/s1438/ajino20+covid.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1438" data-original-width="1161" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhYMQjkqKe_TKXXmp-e9MTL_b2a4JMhrqwHxvQIjEB0C2IFu3tQQHguoEnS_qKKCYb1_w1vYfHQA0dszvDm3R74JaQxpAP4YuGYLD3bRVhyphenhyphenNix-xOoAfG8tT3xzW09BZPuiErmo4IiSQZ0/w323-h400/ajino20+covid.JPG" width="323" /></a></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEguh51fk-_g-J6p9CSwvdac888LQFxNvv5iRbbogJwpl-NnuXkV0a-4PKGKTpes-b1PhsodnD31WUri7DVYIbXA6eGDcdRUmI_IUumg74DIb68c90fotuN5xFhtbajWSHEYgmDGx9POCUc/s1583/ajino20+review1.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1583" data-original-width="1097" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEguh51fk-_g-J6p9CSwvdac888LQFxNvv5iRbbogJwpl-NnuXkV0a-4PKGKTpes-b1PhsodnD31WUri7DVYIbXA6eGDcdRUmI_IUumg74DIb68c90fotuN5xFhtbajWSHEYgmDGx9POCUc/w278-h400/ajino20+review1.JPG" width="278" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><br /></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjCNjN3Y9IUq8HahmbqBfAPpWDjxTw3-1yv7PhdjTvhZL9GyxTyHvxKhM6NypT-joTC7TR85BayHUVub-ahQ84JY5YaPWmXq1WwhwEGnXkAJn8-tX-sPZZKsDqYuJQ5VAneg7g5CKuG_No/s1075/ajino20+review2.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="911" data-original-width="1075" height="339" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjCNjN3Y9IUq8HahmbqBfAPpWDjxTw3-1yv7PhdjTvhZL9GyxTyHvxKhM6NypT-joTC7TR85BayHUVub-ahQ84JY5YaPWmXq1WwhwEGnXkAJn8-tX-sPZZKsDqYuJQ5VAneg7g5CKuG_No/w400-h339/ajino20+review2.JPG" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><br /></div><div style="text-align: justify;"><span style="color: red; font-size: medium;"><b>Nugget #19: SDGs are more than goals</b></span></div><div style="text-align: justify;">I know it's popular to report your alignment and support for the SDGs. Generally companies select a small number of SDGs and show how they contribute to sustainable development. There is a wide variation in how this is done, though it inevitably always involves many icons. The point here is that I think we are getting beyond the stage of simply saying that because you are a food producer, you are contributing to SDG#2, Zero Hunger, or a healthcare company contributing to SDG#3, Health and Wellbeing, or even better, because you employ women in your business, you are contributing to SDG#5, Gender Equality. More than 5 years into Agenda 2030, I think we are expecting a more considered disclosure from companies, at the level of SDG targets not goals, and at the level of specific actions being taken to advance sustainable development, beyond business as usual. <a href="https://www.hslpathology.com/wp-content/uploads/2020/11/Sonic-Corporate-Responsibility-Report_2020_2.pdf" target="_blank"><b>Sonic Healthcare's 2020 Sustainability Report</b></a> shows how it's done.</div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgl8fygTXGtFfKPHn85HfQxzbwyRSgT8Zgkwd9rE0t_Os8KNu29sIyFAQhHv03ccfnZjbjUuSc17AkUDLcpVUze-Kb7UsQmW6Zyum1MnxATw_ggScTRdlqtYkDu5SVrLlRAt9yq-H_uT1o/s1624/sonic2020+sdg.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1624" data-original-width="1117" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgl8fygTXGtFfKPHn85HfQxzbwyRSgT8Zgkwd9rE0t_Os8KNu29sIyFAQhHv03ccfnZjbjUuSc17AkUDLcpVUze-Kb7UsQmW6Zyum1MnxATw_ggScTRdlqtYkDu5SVrLlRAt9yq-H_uT1o/w275-h400/sonic2020+sdg.JPG" width="275" /></a></div><br /><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b><span style="color: red; font-size: medium;">Nugget #20: Avoid reportspeak</span></b></div><div style="text-align: justify;">What's the most overused meaningless catchphrase in Sustainability Reports ever? EDF Energy even put it on the cover of its <a href="https://www.edfenergy.com/sites/default/files/our_sustainability_commitments_-_progress_report_2011.pdf" target="_blank">Sustainability Report</a> ten years ago.</div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgGgTKVxqTIkgC7GV3mvFlviGz3aUoDIgZkV7k0aRdqYcveZlPZXZqAEeuWnLfQgElek6ucopPYH0EPO1pNGaYsuCiiq1rKAJyXQhKZ6cGXjxpspunAPLwKDRTU90qvePFDNbTlaSuRgho/s1680/EDF+2011+cover.PNG" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1680" data-original-width="1186" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgGgTKVxqTIkgC7GV3mvFlviGz3aUoDIgZkV7k0aRdqYcveZlPZXZqAEeuWnLfQgElek6ucopPYH0EPO1pNGaYsuCiiq1rKAJyXQhKZ6cGXjxpspunAPLwKDRTU90qvePFDNbTlaSuRgho/w283-h400/EDF+2011+cover.PNG" width="283" /></a></div><br /><div style="text-align: justify;">And it's still going strong:</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">"<i>I am proud of our achievements so far and optimistic about our future</i>." <a href="https://www.luxfer.com/Data/About_Downloads/201116-Luxfer2020ESGReportFINAL.pdf?date=17/11/2020%2007:40:58" target="_blank"><b>Luxfer 2020 ESG Report</b></a>, CEO letter</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">"<i>As ENERCON’s Management we are proud of the
company’s success so far. However, we acknowledge
that great challenges lie ahead</i>." <a href="https://www.enercon.de/fileadmin/Redakteur/Medien-Portal/broschueren/ENERCON_Sustainability_Report_2019_Rev000.pdf" target="_blank"><b>Enercon Sustainability Report 2019</b></a>, Management Statement </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">"<i>We are proud of what
ARA has achieved over the past few years, and we have ambitious plans
going forward...</i>" <b><a href="https://aradunedin.com/wp-content/uploads/2020/10/ARA-Sustainability-Report-2019.pdf" target="_blank">ARA Sustainability Report 2019</a></b>, CEO Statement</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Let's not forget another old favorite that comes in several variants: Sustainability is in our DNA, or, sustainability is embedded in our company</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><i>"Sustainability is embedded in our everyday work Armacell.</i>" <b><a href="https://www.armacell.com/report/4026/download" target="_blank">Armacell Sustainability Report 2019</a></b>, CEO Statement</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">"<i>As a global insurer and responsible investor,
sustainability is part of Allianz’s DNA.</i>" <b><a href="https://www.allianz.com/content/dam/onemarketing/azcom/Allianz_com/sustainability/documents/Allianz_Group_Sustainability_Report_2019-web.pdf" target="_blank">Allianz Sustainability Report 2019</a></b></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><i>"Epson is well placed for all these new challenges. Sustainability
is in our DNA.</i>" <b><a href="https://neon.epson-europe.com/files/repo/2020/TheGreenChoice13224/pdf/A11341-brochure-lores-en-GB,IE-Green_report_2019-2020_digital.pdf" target="_blank">Epson Europe Sustainability Report 2019/2020</a></b></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">"<i>Whether it’s a natural disaster or a global pandemic, being on the frontlines
of serving our communities through crises is in our DNA</i>." <b><a href="https://corporate.lowes.com/our-responsibilities/corporate-responsibility-reports-policies" target="_blank">Lowe's 2019 Corporate Responsibility Report</a></b>, CEO letter</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><div>"<i>Environmental stewardship is embedded in the Trex DNA..</i>." <b><a href="https://www.trex.com/our-company/esg-report/" target="_blank">TREX ES&G Report 2019</a></b>, CEO letter</div><div><br /></div><div>"<i>For Marimekko,
sustainability is part of our DNA</i>" <a href="https://company.marimekko.com/wp-content/uploads/2020/06/mm_sustainability_2019_FINAL.pdf" target="_blank"><b>Marimekko 2019 Sustainability Report</b></a></div></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Phrases like these have been used so many times that they are, frankly, a bit of a turnoff. I don't think companies have a DNA, despite <a href="https://hbr.org/2016/12/how-to-discover-your-companys-dna" target="_blank">practitioners that might think otherwise</a>. I think a company's culture is only as strong as its current leadership and the process in place to sustain it. For me, talking about what's in our DNA is an invitation to prove it is not. Similarly, "we are proud of what we have achieved but there is more to do" is a waste of space. Who cares? We know there is more to do, there is always more to do. Being proud is nice (check out how many times the word proud appears in Sustainability Reports), but I find it a little out of place. As report users, we are less interested in how proud you are and more interested in how productive you are. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">There are hundreds of other <a href="http://csr-reporting.blogspot.com/2009/07/can-you-speak-csr-report.html" target="_blank">reportspeak</a> phrases that reduce the credibility of your report. Best to avoid them. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b><span style="color: red; font-size: medium;">Nugget #21: Behind every report is a reporter</span></b></div>
<div style="text-align: justify;">
I believe that every report is an achievement and is the product of significant investment in time, resources and usually, one individual that really makes it all come together. It may be a team effort, but the reporter is the team leader. That person deserves admiration and respect. S/he is probably working under many constraints, possibly many areas of sensitivity and disagreement, maybe inadequate data collection processes and probably limited resources. Leading the development of a sustainability report is a major accomplishment, as any reporter will tell you, and requires a very unique skillset. I admire everyone who does this and I value every report both for its content and also for the efforts made to deliver it. I have learned not to dismiss any report that I find less impressive or below standard, because I believe the reporter did the best s/he could in whatever context the report was developed. Thank you to all the reporters from whom I took inspiration for this post.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">I'd like to see more reporters named in reports, both as a measure of recognition and also as a way of reinforcing accountability. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Ineos Styrolution Company goes the full Monty in its <a href="http://www.ineos-styrolution.com/INTERSHOP/static/WFS/Styrolution-Portal-Site/-/Styrolution-Portal/en_US/INEOS-Styrolution-sustainability-report-2019.pdf" target="_blank"><b>2019 Sustainability Report</b></a> by naming all those involved in the sustainability committee. </div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2_bsU4jhXLncFygQyRyQ-pnlC7l2E6pSpJ7bfpkRKk7jKfV3AKJZAfs74_MVZ0jlS8NVDQOQDZotYuTD2Q3n0AHEQljwn4VzqNlzmJpcR5Hv-TFurCNUsilux-Amw9hEL0lFfZzwdBq4/s2048/INEOS+2019+sust+team.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1441" data-original-width="2048" height="281" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2_bsU4jhXLncFygQyRyQ-pnlC7l2E6pSpJ7bfpkRKk7jKfV3AKJZAfs74_MVZ0jlS8NVDQOQDZotYuTD2Q3n0AHEQljwn4VzqNlzmJpcR5Hv-TFurCNUsilux-Amw9hEL0lFfZzwdBq4/w400-h281/INEOS+2019+sust+team.JPG" width="400" /></a></div><br /><div style="text-align: justify;"><br /></div><div style="text-align: center;"><span style="color: red; font-size: large;"><b>*******</b></span></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Well. That was a long post! I think I almost broke Blogger. Congratulations if you got this far. Even I almost gave up half way through. <strike>We </strike>Me at the CSR Reporting Blog hopes there is something here that might be of use in the 2020-2021 reporting cycle to some of you out there. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">In the meantime, stay healthy, stay safe and stay optimistic!</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><br /></div>
<div style="text-align: justify;"><br /></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;"><span face="arial, tahoma, helvetica, freesans, sans-serif" style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: left;"><span style="font-family: inherit;"><span style="text-align: justify;">e</span>laine cohen, CSR consultant, Sustainability Reporter, HR Professional, Ice Cream Addict. Owner/Manager of <span style="color: blue; text-align: justify;"><a href="http://www.b-yond.biz/" style="color: #0066cc;" target="_blank"><b>Beyond Business Ltd</b></a></span><span style="text-align: justify;">, </span>an inspired Sustainability Strategy and Reporting firm having supported <b>119 </b></span></span><span face="arial, tahoma, helvetica, freesans, sans-serif" style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: left;"><span style="font-family: inherit;"><a href="http://www.b-yond.biz/clients-reports" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;"><b>client reports</b></span></a><span style="text-align: justify;"> to date; </span><b style="text-align: justify;">author </b><span style="text-align: justify;">of </span><a href="http://www.b-yond.biz/our-books" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">three books and several chapters</span></a><span style="text-align: justify;"> on Sustainability Reporting and the Human Resources connection to CSR; frequent </span><b style="text-align: justify;">chair and speaker </b><span style="text-align: justify;">at sustainability events and </span><b style="text-align: justify;">judge</b><span style="text-align: justify;"> in several sustainability awards programs each year. Contact me via </span><a href="http://www.twitter.com/elainecohen" style="color: #0066cc; text-align: justify;" target="_blank">Twitter</a><span style="text-align: justify;"> , </span><a href="https://www.linkedin.com/in/elainecohen/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">LinkedIn</span></a><span style="text-align: justify;"> or via </span><a href="http://www.b-yond.biz/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">Beyond Business</span></a></span></span></div>
<div style="text-align: justify;"><br /></div>
</div><br /><div class="separator" style="clear: both; text-align: center;"><br /></div><br /><div class="separator" style="clear: both; text-align: center;"><br /></div></div>elainehttp://www.blogger.com/profile/07433863039389159395noreply@blogger.com0tag:blogger.com,1999:blog-8008724049496903547.post-43237789595650516982020-12-21T12:28:00.000+02:002020-12-21T12:28:39.293+02:00 Santa Claus Inc. 2020 ESGC Report<div style="text-align: justify;">I am delighted to present a preview of Santa Claus Inc.’s ESGC (Environmental, Social, Governance and COVID) Report for the year 2020. <a href="http://csr-reporting.blogspot.com/2017/12/santa-claus-inc-2017-harmonized-report.html" target="_blank">As in past years</a>, Santa has kindly allowed me to share her annual disclosure to all stakeholders, ESPECIALLY investors, and hopes that everyone, ESPECIALLY investors, will take a keen interest in how Santa has made a positive contribution to sustainable development; health and wellbeing; diversity, equity and inclusion; biodiversity; reducing water stress; economic prosperity and oh yes, what was that again, climate change. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>Dear Stakeholders, ESPECIALLY investors, </b></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">2020 was a very challenging year. I am proud of what we have achieved so far, but there is much more to do. Oops. Scratch that. 2020 was the crappiest year ever, and the thought of sliding down chimneys in a face shield and splashing myself with sanitizer after every home visit continues to fill me with dread. In fact, I am so full of dread, anxiety and depression that that I have taken to consuming a snack before bedtime, in the hope that this will boost my sugar levels and regulate my hormones. Now, much more of me is full of dread as I have gained 130 lbs. in weight over the past year and I have needed to order Santa suits two sizes bigger. Due to mobility restrictions, I was not able to go to the fittings, so I had a team of elves take my measurements and send them to the Santa tailor. Unfortunately, the elves were already high with festive spirit and now it looks like I am wearing red swimsuits with furry white trim. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Just as so many things moved to Zoom in 2020, I considered sending out all my Christmas Gifts via Zoom this year as well. However, I quickly realized this would not be possible as my Zoom account has been suspended on account of repeated offenses to their content policy. All I ever said was that I believe a harmonized ESG reporting system is not the Holy Grail that will save people and the planet, and boom, I was bumped from Zoom, LinkedIn and Facebook. Fortunately, I can still express my views on Instagram, where posting images of suckling reindeer babies, Sustainability Report covers with smiling children holding the globe and elves wrapping Christmas gifts are still allowed. Even if the elves are wearing Accountants will Not Save the Planet T-Shirts. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Anyway, on to more positive things, as ESGC Reports must not be too depressing, or our entire financial system will collapse. Let’s start with our COVID-19 Response. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><span style="color: red;"><b>COVID-19 Response </b></span></div><div style="text-align: justify;">Of course, no self-respecting ESGC Report can omit the obligatory COVID-19-we-are-the-greatest section. At Santa Claus Inc. we have maintained a business continuity plan for several thousand years, and in 2020, we dusted it off and put it into play. Of course, when the plan was written, there was no internet, no iPhone 12, not even an iPhone 1, no Tesla cherry-red Roadster for fast intergalactic travel and no electric reindeer. Of course, there were far fewer people on the planet needing gifts, so the overall workload was manageable. Our Business Continuity Plan (BCP) consisted of just two elements (1) Form a Task Force and (2) Make the Task Force continue the business. In 2020, we upgraded our BCP and it now includes three elements: (1) Form a Task Force and (2) Make the Task Force continue the business and (3) Make them wear masks. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>PPE:</b> In 2020, we quickly converted our gift-wrapping factory to a PPE production station for the benefit of elves and their families all around the world. During this period, we donated to the Global Elf Association more than 2.3 million reusable face masks designed specially to fit typical elf facial features, including a special reinforced middle section to prevent piercing by those little elfy upturned noses. Unfortunately, this middle section also seriously hindered elf respiration, and to this day, we are not sure if the 34,763 elves who passed away were sick with COVID-19 or simply suffocated. We subsequently modified our design to ensure the masks are elf-safe and we even included a designer label. </div><div style="text-align: justify;"><b>WFH:</b> In March 2020, we instructed our elves to work from home. To facilitate this, we had to rehome many elf migrant workers who had no home to work from. This was a significant challenge but with help from Habitat for Elves, we were able to appropriate 342,202 elf homes. Unfortunately, this meant displacing the entire population of Iceland which has now moved to Mexico in the hope that the new Biden administration will reverse the immigration ban. In the meantime, we have equipped the new elf homes with all necessary PPE and conducted more than 300 Wrapping Gifts while Wearing Masks training sessions. In the early days we found many gifts that were wrapped with disposable masks while elves were seen with wrapping paper covering their mouths and noses. Oops. Another 26,458 elf fatalities. </div><div style="text-align: justify;"><b>Social Distancing:</b> During 2020, we practiced social distancing as guided by the WHO, the Centers for Disease Control and Prevention (CDC) and local Lapland regulation. This has been particularly hard for our reindeers, fun-loving beings who enjoy close relationships and work well in teams. Several reindeer suffered from hypertension and can now work only under sedation. Fortunately, we had enough foresight to stockpile Xanax before lockdowns started and were able to calm them all down. However, due to social distancing, our annual reindeer sleigh-pulling training was conducted virtually and was probably less effective than classroom training events. Once back at work, we planned a practice sleigh journey from Riisitunturi National Park to Pyhä-Nattanen. I think some of the reindeer were wearing masks over their eyes as we ended up in Finland, a reindeer migration destination that they can reach blindfold. All was not lost, however, as all the people of Finland received their gifts early, a large contributor, we believe, to Finland consistently being ranked as the <a href="https://www.usatoday.com/story/travel/news/2019/03/20/finland-worlds-happiest-country-2019/3221328002/" target="_blank">happiest country in the world</a>!</div><div style="text-align: justify;"><b>YOM: </b>As you might expect, all our elf communications were conducted via Zoom starting in March 2020. We held a special all-elf mandatory unmuting training session because Santa got so sick of hearing You’re On Mute (YOM) that she wrote a special letter asking Zoom to remove the mute button from our Zoom Plan. Regrettably, Zoom was not able to do this, so we persevered. Today, I am pleased to report that we have how replaced YOM with a selection of phrases such as WCHY (We Can’t Hear You), UY (Unmute Yourself), Is your Microphone Working (IYMW) and <a href="https://dictionary.cambridge.org/dictionary/english/has-the-cat-got-your-tongue" target="_blank">Has the Cat Got your Tongue</a> (HTCGYT), as well as some less publishable phrases. Now, we eventually get to hear all the elves, although, in fact, some of them should probably remain on mute their entire lifetime anyway. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><span style="color: red;"><b>Diversity, Equity and Inclusion</b></span> </div><div style="text-align: justify;">In a year when the pandemic brought racial and social justice to the fore, and exposed the systemic inequities in our society, we at Santa Claus Inc. rose to the challenge of creating a world of reduced inequalities (SDG 10). To do this, we decided to establish a gift means test, and apply an inclusive equity formula. Therefore in 2020, everyone will receive a gift just like they always have done. Except some people will receive bigger gifts than others. Additionally, we upgraded our Plan for Elf Equity (PEE) to empower diverse elves. We formed several Elf Affinity Groups which have been a great success, including: </div><div style="text-align: justify;"><b>Elf Out:</b> For LGBTQIA elves </div><div style="text-align: justify;"><b>Elf In:</b> For elves who are not yet out </div><div style="text-align: justify;"><b>ELF Self: </b>For elves who are rather introvert </div><div style="text-align: justify;"><b>ELF Healf:</b> For elves who want to live a healthier lifestyle </div><div style="text-align: justify;"><b>ELF Women:</b> For elf women who want the same rights as elf men </div><div style="text-align: justify;"><b>ELF Men:</b> For elf men who do not want to share their rights with elf women </div><div style="text-align: justify;"><b>ELF Shelf:</b> For spinster elves </div><div style="text-align: justify;"><b>ELFO:</b> For Hispanic elves </div><div style="text-align: justify;"><b>ELF Vets:</b> For elves who have passed their veterinarian qualifications </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Finally, this year all elves were trained in unconscious bias, conscious inclusion, and subconscious consciousness. We can now affirm that 100% of elves are conscious. Although this was probably due to our ban on medical-grade cannabis, which, after it was legalized, became the staple elf diet. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><span style="color: red;"><b>Climate Resilience </b></span></div><div style="text-align: justify;">As always, Santa Claus Inc. continues to endorse the Precautionary Principle, support climate change mitigation, and advance a circular economy. For the first time this year, we are publishing our disclosure in line with the Task Force on Climate-related Financial Disclosures (TCFD) framework. Here it is:</div><div style="text-align: justify;"> </div><div style="text-align: justify;"><b>Governance:</b> Our governance of climate risks is overseen by our Board of Directors which has assessed our key risk to be extreme weather patterns that destroy the world’s chimneys, making it impossible for Santa to continue her good work. In order to govern this effectively, the Board has established a <b>C</b>himney <b>H</b>ole <b>I</b>ntegrity <b>M</b>apping <b>P</b>rogram (CHIMP) to monitor chimneys affected by hurricanes, earthquakes, snow blockages and brick-melting high temperatures. The CHIMP Committee reports on the status of our climate resilience to the Board every year. </div><div style="text-align: justify;"><b>Strategy:</b> In order to effectively assess and develop our climate-risk strategy, we created 1.5, 2 and 2.5 degree scenarios based on guidance from the IPCC. In each scenario, the result was the same: the Santa Retirement Fund needs significant inputs in order to protect Santa’s heritage and long-term ice cream supply. You can donate to the Santa Retirement Fund by clicking on this <a href="http://csr-reporting.blogspot.com/" target="_blank">link</a>. </div><div style="text-align: justify;"><b>Risks:</b> As mentioned, our key risk is chimney integrity, and the CHIMP Committee ensures we have mitigation or alternative plans in place. For example, in China, we use hydraulic rising rickshaws to access homes. In Venice, we now access homes through underground water channels. In the U.S., we have engaged a Chimney Repair Service that is on call 24/7 over the holiday season, staffed by millions of people who lost their jobs during the pandemic. We have also patented our new Santa-safe climate-proof chimney, made from 100% post-consumer recycled organic waste, that was tested in Turkey, Mexico, Iran and Alaska during 2020 earthquakes in those countries. The chimney retained its form and function and was commercialized this year. Unfortunately, the new factory we built to manufacture the Santa-safe chimney was destroyed by an earthquake, so availability is currently restricted. </div><div style="text-align: justify;"><b>Metrics: </b>Chimney integrity is our key metric. In 2019, it was 98.8%, unaffected by climate change. The only issue we found in a small percentage of chimneys was a concentration of combustible deposits, meaning that when Santa slides down the chimney, her posterior may set alight. This is not such a problem for Santa, as it could help burn off those extra pounds gained during COVID-19. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><span style="color: red;"><b>Transparency, Reporting, Disclosure and ESG Metrics </b></span></div><div style="text-align: justify;">In 2020, we have been watching on the sidelines in the Metrics Wars as the Big Galactical Powerhouse Forces of ESG Metrics wage battle against the Resistance for the Greater Good of Sustainability Impacts in the fight between, on the ESG side, double dynamic materiality, interoperability and an international governing authority for sustainability reporting that would aim to make disclosures consistent, comparable and decision-useful for investors, and on the Greater Good side, accountability for impacts on people and planet and delivering the SDGs. The apparent subordination of sustainability disclosures to value creation in the ESG Metrics camp, value that is intended to trickle through to all stakeholders (excuse me while I retrieve my eyeballs), does not sit well with those in the Greater Good camp. </div><div style="text-align: justify;">At Santa Claus Inc, we take a simple view. We believe that sustainability reporting is about people not about numbers. Well, it’s also about elves and reindeers. And it’s about the gifts we give to our billions of clients that make them superhappy every festive season. And it’s about the accountability we willingly accept as an organization to ensure we live up to our values and the principles of sustainable development. </div><div style="text-align: justify;">We conducted a little bit of stakeholder engagement on our own, to inform our next <strike>double triple</strike> single sustainability materiality assessment. We asked our reindeer if they believe that a consistent standard for investor-useful ESG metrics will ensure the biodiversity required to maintain their food supply for the next 50 years. We asked our elves if a more robust universal standard for ESG metrics would ensure they are paid a living wage so they can secure their grandkids’ future. We asked our clients if they felt that a better standard of ESG metrics would ensure they receive good quality gifts, not manufactured using child labor or unsafe working conditions and not using tons of excess packaging materials. And we asked reporting companies if they felt the proposal to create a new IFRS-led Sustainability Standards Board would continue to ensure global ice cream supplies for reporters everywhere. In all cases, the response was outstandingly "errrrrr duh". Then we asked our Board of Directors if they are prepared to disclose ESG metrics against a single new investor-useful reporting system. Their response was: What’s ESG metrics? </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Unwilling to remain at the mercy of all those who think they can monetize sustainability and force-fit sustainable development into capital market competitiveness, we decided to be proactive. We have created a new blueprint sustainability reporting standard that we will publish in early January as a public good. We call it the <b>S</b>anta <b>C</b>laus <b>R</b>egenerative <b>E</b>nterprise <b>W</b>orldwide <b>I</b>nteroperable <b>T</b>ransparency standard (<b>SCREWIT Standard</b>) and it will be freely available to all in return for a small donation to the Santa Retirement Fund. The Standard contains 468 metrics covering every possible impact ever invented and embeds value creation metrics against the six capitals:</div><div style="text-align: justify;"><ul><li>Elf Capital</li><li>Reindeer Capital</li><li>Santa Capital</li><li>Santa Capital</li><li>Santa Capital</li><li>Everything Else Capital </li></ul></div><div style="text-align: justify;">It also includes sector standards, country standards and SME standards as well as an optional annex for companies who want to use SCREWIT for PR purposes only. We believe the SCREWIT Standard will usher in a new age of corporate transparency that will respond to investor demand for consistent, comparable, reliable sustainability information that will be entirely auditable by the Big Four and rankable by ISS, MSCI and Sustainalytics. In this way, SCREWIT supports SDG 8 by leading to the creation of thousands more jobs in the disclosure sector. </div><div style="text-align: justify;">SCREWIT will also provide a basis for engagement with regulators, activists and NGOs such as Greenpeace, Amnesty International and the Access to Ice Cream Foundation. The SCREWIT taxonomy will incorporate technical screening criteria for all sustainability metrics and will prioritize anything to do with Santa wellbeing (which is the ultimate public good). SCREWIT will be administered by the <b>G</b>lobal <b>O</b>verseer of <b>S</b>CREWIT <b>S</b>tandards (GLOSS) which will be a multi-stakeholder body comprised of Santa Claus and allies. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">We are fully expecting all global reporters to adopt SCREWIT. In fact, the interoperability of SCREWIT makes it extremely compatible with other standards, if they survive. For example, you can also use other standards by including an appropriate content reference table, for example, SCREWIT SASB or SCREWIT GRI or even SCREWIT IIRC. The versatile, comprehensive SCREWIT Standard will revolutionize corporate sustainability reporting and finally deliver a tool that will enable us to save the planet and make more money. In this way, Santa Claus is taking the politics out of disclosure by putting it back into the public interest. To incentivize the unconvinced, all new early adopters of SCREWIT will receive a <b>free prize</b>: a coaching session with GRI on how to recruit CEOs. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><span style="color: red;"><b>Feedback on this Report
</b></span></div><div style="text-align: justify;">We will be happy to receive your feedback on this report, as long as it's positive. For those of you who are unable to create your own feedback, you can use this short poll: </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Please select the response you feel is most appropriate (multiple responses accepted) </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Isn’t this the best report you have ever read? </div><div style="text-align: justify;"><ul><li>Yes</li><li>Yes</li><li>Yes</li><li>Who reads reports?</li></ul></div><div style="text-align: justify;"><br /></div><div><br /></div><div>So, until we Zoom again..... </div><div><br /></div><div><br /></div><div style="text-align: center;"> <b><span style="color: red; font-size: medium;">We Wish You and Everyone in the World </span></b></div><div style="text-align: center;"><b><span style="font-size: x-small;"><span style="color: red;">(especially INVESTORS)</span><span style="color: red;"> </span></span></b></div><div style="text-align: center;"><b><span style="color: red; font-size: medium;">a Happy Holiday Season and a Happy New Year </span></b></div><div style="text-align: center;"><br /></div><div style="text-align: center;"> 🎄🎄🎄🎅🎅🎅🎅🎅🎅🎅🎅🎅🎅🎅🎄🎄🎄
</div><div style="text-align: center;"><br /></div><div style="text-align: center;"><br /></div><div style="text-align: center;"><br /></div><div style="text-align: left;"><span style="background-color: white;"><span face="arial, tahoma, helvetica, freesans, sans-serif" style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: left;"><span style="font-family: inherit;"><span style="text-align: justify;">e</span>laine cohen, CSR consultant, Sustainability Reporter, HR Professional, Ice Cream Addict. Owner/Manager of <span style="color: blue; text-align: justify;"><a href="http://www.b-yond.biz/" style="color: #0066cc;" target="_blank"><b>Beyond Business Ltd</b></a></span><span style="text-align: justify;">, </span>an inspired Sustainability Strategy and Reporting firm having supported <b>119 </b></span></span><span face="arial, tahoma, helvetica, freesans, sans-serif" style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: x-small; text-align: left;"><span style="font-family: inherit;"><a href="http://www.b-yond.biz/clients-reports" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;"><b>client reports</b></span></a><span style="text-align: justify;"> to date; </span><b style="text-align: justify;">author </b><span style="text-align: justify;">of </span><a href="http://www.b-yond.biz/our-books" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">three books and several chapters</span></a><span style="text-align: justify;"> on Sustainability Reporting and the Human Resources connection to CSR; frequent </span><b style="text-align: justify;">chair and speaker </b><span style="text-align: justify;">at sustainability events and </span><b style="text-align: justify;">judge</b><span style="text-align: justify;"> in several sustainability awards programs each year. Contact me via </span><a href="http://www.twitter.com/elainecohen" style="color: #0066cc; text-align: justify;" target="_blank">Twitter</a><span style="text-align: justify;"> , </span><a href="https://www.linkedin.com/in/elainecohen/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">LinkedIn</span></a><span style="text-align: justify;"> or via </span><a href="http://www.b-yond.biz/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">Beyond Business</span></a></span></span></span></div>elainehttp://www.blogger.com/profile/07433863039389159395noreply@blogger.com0tag:blogger.com,1999:blog-8008724049496903547.post-16423932345979553652020-09-28T17:59:00.001+03:002020-10-02T17:40:34.959+03:00The Enlightenment According to the Big Four. Not.<div style="text-align: justify;">I wish I were an accountant. Clearly, I'd have so much time on my hands that all I would do is prepare new frameworks for sustainability metrics. I would spend my mornings dreaming up some new framework that looks just enough different from what's already out there to make it Big News, and spend my afternoons convincing everybody why it solves all their problems. Then I would make a ton of money when people are so bewildered and confused that they adopt my framework and ask me to check it over.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">This was my first reaction to the new WEF publication: <a href="https://www.weforum.org/reports/measuring-stakeholder-capitalism-towards-common-metrics-and-consistent-reporting-of-sustainable-value-creation" target="_blank">Measuring Stakeholder Capitalism: Towards Common Metrics and Consistent Reporting of Sustainable Value Creation</a> which can't have helped escape your attention if you are on the sustainability circuit. (OK, I don't really wish I were an accountant. I don't think I could handle all the <a href="https://www.emailstopwatch.com/88-accounting-jokes/" target="_blank">accountant jokes</a>.) </div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhqDmrIw0VQiPg53xUdE2Hi16IzVwKO7CfrblzmZf3ntAzm48GMwSqkCJyWdgVTBpqHyDKY3g8z77TflUKzoBAOAcD-2O2vtsPGCVrY0sNGW895TkZ1WvD980P2PylbEEKvNhaBRgYQxvs/s1734/wef+cover.PNG" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1734" data-original-width="1282" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhqDmrIw0VQiPg53xUdE2Hi16IzVwKO7CfrblzmZf3ntAzm48GMwSqkCJyWdgVTBpqHyDKY3g8z77TflUKzoBAOAcD-2O2vtsPGCVrY0sNGW895TkZ1WvD980P2PylbEEKvNhaBRgYQxvs/w296-h400/wef+cover.PNG" width="296" /></a></div><br /><div style="text-align: justify;"><br /></div><div style="text-align: justify;">I can't tell you how many clients and colleagues have asked me what I think about the WEF metrics framework, meaning, is it good or is it bad? GRI has published a <a href="https://www.globalreporting.org/about-gri/news-center/2020-09-24-sustainability-metrics-debate-must-include-multi-stakeholder-input/" target="_blank">diplomatic response</a> saying they "cautiously welcome" this approach but that it doesn't go far enough. <a href="https://drcaroladams.net/a-response-to-the-wef-and-big-4/" target="_blank">Prof. Carol Adams has also weighed in:</a> <i>"Once upon a time there was a glimmer of hope that accountants could save the planet. The motivation for this report is unclear and expressed differently in different parts. But it is not going to save the planet and could well do more harm than good." </i>And no less a <a href="https://www.responsible-investor.com/articles/comment-waiter-there-is-a-fly-in-my-esg-alphabet-soup" target="_blank">scathing reaction from Carlos Tornero at Responsible Investor</a>: "<i>As for reforming capitalism, I’m afraid the Big Four are not the best ambassadors for that.</i>"</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">For those who haven't yet studied the WEF paper, here's 96 pages distilled (followed by my commentary):</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The proposal was developed as part of the WEF's International Business Council (IBC) and led by the Bank of America, who chairs the IBC, and the Big Four accounting firms: Deloitte, EY, PwC and KPMG. The IBC is a community of CEOs of around 140 companies, as far as I can gather, but I cannot find a list of the specific companies that are members of this group. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The objective of developing this disclosure framework was "<i>to
identify a set of universal, material ESG metrics and recommended disclosures that could be reflected
in the mainstream annual reports of companies on a consistent basis across industry sectors
and countries. The metrics should be capable of verification and assurance, to enhance transparency
and alignment among corporations, investors and all stakeholders.</i>" </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The hope is to encourage "<i>IBC companies to begin reporting
collectively on this basis in an effort to encourage greater cooperation and alignment among existing standards as well as to catalyse progress towards
a systemic solution, such as a generally accepted international accounting standard in this respect.</i>"</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>And an important point:</b> "<i>This effort is not intended to diminish the value of the separate sustainability/ESG/impact reports, which often provide more comprehensive information at the industry- and company-specific levels, tailored to the interests of stakeholders beyond investors.</i>"</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">The proposed metrics are intended to be universal, <b>industry agnostic</b> ESG metrics/disclosures. There are two types:</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><span style="color: red;"><b>Core Metrics:</b></span> 21 metrics and reporting requirements. "<i>These are primarily quantitative metrics for which information is already being reported by many firms (albeit often in different formats) or can be obtained with reasonable effort. They focus primarily on activities within an organization’s own boundaries</i>." </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><span style="color: red;"><b>Expanded metrics:</b></span> 34 metrics. "<i>The expanded metrics and disclosures encourage companies to move from reporting outputs alone to capturing the impacts of their operations on nature
and society across the full value chain, in more tangible, sophisticated ways, including the monetary
value of impacts. These tend to be less well established in existing practice and standards...They represent a more advanced way of measuring and communicating sustainable value creation, and companies are encouraged to report against them as well, when material and appropriate.</i>"</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Below is an overview of the metrics (reproduced from <a href="https://www.iasplus.com/en/news/2020/01/wef" target="_blank">IAS PLUS</a> )</div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh-x1SeInl-6yAvywrWJUjC5nN35x1O8XajdPQixO2u19wWZWc8TovlBjHUY4nnCmMdmPutGT6SUqBfXeTpMON84oC3f6RAqeYYh57oaMnBRtPzP0va63Xt73WJ9dZzAe4Xqy5Y_s2uVrU/s1252/WEF+metrics.PNG" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="426" data-original-width="1252" height="136" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh-x1SeInl-6yAvywrWJUjC5nN35x1O8XajdPQixO2u19wWZWc8TovlBjHUY4nnCmMdmPutGT6SUqBfXeTpMON84oC3f6RAqeYYh57oaMnBRtPzP0va63Xt73WJ9dZzAe4Xqy5Y_s2uVrU/w400-h136/WEF+metrics.PNG" width="400" /></a></div><div><br /></div><div style="text-align: justify;"><b><span style="color: red;">Governance Core Metrics include: </span></b>Company purpose statement, governance overview, material topics, anti-corruption, ethical reporting mechanisms and risk management. </div><div style="text-align: justify;"><b><br /></b></div><div style="text-align: justify;"><b>Expanded metrics include:</b> </div><div style="text-align: justify;"><ul><li>How the company’s stated purpose is embedded in company strategies, policies and goals</li><li>Disclosure of the material strategic economic, environmental and
social milestones</li><li>How performance criteria in the remuneration policies relate to the highest governance body’s and senior executives’ objectives for economic, environmental and social topic and details of Board and executive remuneration</li><li>The significant issues that are the focus of the company’s
participation in public policy development and lobbying</li><li>Total amount of monetary losses as a result of legal proceedings
associated with fraud, insider trading, anti-trust, anti-competitive behavior, market manipulation, malpractice or violations of other related industry laws or regulations</li><li>How the highest governance body considers economic,
environmental and social issues when overseeing major
capital allocation decisions, such as expenditures,
acquisitions and divestments</li></ul></div><div style="text-align: justify;"><b><span style="color: red;">Planet Core Metrics include:</span></b> GHG emissions, TCFD implementation, land use, water consumption in water stressed areas.</div><div style="text-align: justify;"><b><br /></b></div><div style="text-align: justify;"><b>Expanded metrics include:</b></div><div style="text-align: justify;"><ul><li>Paris-aligned GHG emissions targets (science-based)</li><li>Impact of GHG emissions - the estimate of the societal cost of carbon used</li><li>Land use and ecological sensitivity </li><li>Impact of land use and conversion </li><li>Impact of freshwater consumption and withdrawal</li><li>Air pollution and impact of air pollution </li><li>Water pollution and impact of water pollution</li><li>Single-use plastics </li><li>Impact of solid waste disposal</li><li>Resource circularity - potential metrics include (but are not limited to) the
Circular Transition Indicators (WBCSD), indicators developed by the Ellen MacArthur Foundation and company developed metrics. </li></ul></div><div style="text-align: justify;"><span style="color: red;"><b>People Core Metrics include:</b></span> Diversity and inclusion, pay equality, pay levels, risks of child, forced and compulsory labor, health and safety, training</div><div style="text-align: justify;"><b><br /></b></div><div style="text-align: justify;"><b>Expanded metrics include:</b></div><div style="text-align: justify;"><ul><li>Mean pay gap of basic salary and remuneration of full-time relevant employees based on gender (women to men) and indicators of diversity (e.g. BAME to non-BAME) at a
company level or by significant location of operation</li><li>Ratio of the annual total compensation for the organization’s highest-paid individual in each country of significant operations to the median annual total compensation for
all employees</li><li>Discrimination and harassment incidents (#) and the total
amount of monetary losses ($)</li><li>Freedom of association and collective bargaining at risk (%) </li><li>Human rights review, grievance impact & modern slavery (#, %) - total number and percentage of operations that have been
subject to human rights reviews or human rights impact assessments, by country.</li><li>Living wage (%) - current wages against the living wage for employees and contractors in states and localities where the company is operating. </li><li>Monetized impacts of work-related incidents on organization (#, $) </li><li>Employee well-being (#, %)
- the number of fatalities as a result of work-related ill-health,
recordable work-related ill-health injuries, and the main types
of work-related ill-health for all employees and workers, and percentage of employees participating in “best practice”
health and well-being programmes, and Absentee rate (AR) of all employees.</li><li>Number of unfilled skilled positions (#, %) </li><li>Monetized impacts of training – increased earning capacity as a
result of training intervention (%, $)
- investment in training as a percentage (%) of payroll and effectiveness of the training and development through
increased revenue, productivity gains, employee
engagement and/or internal hire rates</li></ul></div><div style="text-align: justify;"><span style="text-align: left;"><span style="color: red;"><b>Prosperity</b></span></span><b><span style="color: red;"> Core Metrics include:</span></b> Employment, economic contribution, financial investments, R&D expenditure, tax payments </div><div style="text-align: justify;"><b><br /></b></div><div style="text-align: justify;"><b>Expanded metrics include:</b></div><div style="text-align: justify;"><ul><li>Infrastructure investments and services supported </li><li>Significant indirect economic impacts
- examples of significant identified indirect economic impacts
of the organization, including positive and negative impacts.</li><li>Social value generated (%) - percentage of revenue from products and services designed
to deliver specific social benefits or to address specific
sustainability challenges</li><li>Vitality Index - percentage of gross revenue from product lines added in last
three (or five) years calculated as the sales from products that
have been launched in the past three (or five) years divided
by total sales, supported by narrative that describes how the
company innovates to address specific sustainability challenges.</li><li>Total Social Investment ($) - Total Social Investment (TSI) sums up a company’s resources
used for “S” in ESG efforts defined by CECP Valuation Guidance.</li><li>Additional tax remitted
- total additional global tax collected by the company on
behalf of other taxpayers, including VAT and employee-related
taxes that are remitted by the company on behalf of customers
or employees, by category of taxes</li><li>Total tax paid by country for significant locations
</li></ul><div style="text-align: center;"><span style="color: red;"><b>********</b></span></div></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">So, take a deep breath, and let's summarize: </div><div style="text-align: justify;"><b><span style="color: red;">First</span></b>, the accountants have decided (with input via a survey from some of the IBC companies) what represents a set of universal core metrics that every company should report on - whatever their shape or size. These metrics reflect largely DIRECT IMPACTS which each company can measure, control, and improve. </div><div style="text-align: justify;"><span style="color: red;"><b>Second</b>,</span> the framework offers an additional set of metrics that represent mainly INDIRECT IMPACTS - the ways in which the company impacts the world through its value chain. </div><div style="text-align: justify;"><b><span style="color: red;">Third</span></b>, it uses metrics that largely already exist in different frameworks.. a pick'n'mix from well known and lesser known frameworks, heavily leaning on GRI and to a lesser extent on SASB. Interestingly, although CDP is cited, none of the metrics are directly taken from the CDP questionnaires. </div><div style="text-align: justify;"><b><span style="color: red;">Fourth</span></b>, it incorporates some new concepts such as living wage (not new but not covered by existing frameworks), inclusion of corporate purpose (the new sexy), "vitality index" (heard of that one?), WCBSD Circular Transition Indicators, monetized impacts of training and others. Two new metrics have been invented - one for single use plastics and one for land use.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">What do I think?</div><div style="text-align: justify;"><b>Although the WEF metrics-team may have tried not to reinvent the wheel, they have actually reinvented the bicycle</b>. The proposal moves away from the GRI approach of materiality by applying a common measurement system to all companies at a fundamental level - the things any company anywhere should be taking into account in the management of its own operations. The second set of (expanded) metrics also ignores the materiality approach and prescribes a range of measurements reflecting what the WEF team feel are the most relevant universal social and environmental issues - linking their selection to SDGs. After companies have done all of this, they have the option of applying a materiality lens and adding whatever crumbs are relevant for their "other" stakeholders, i.e. not investors. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Actually, this approach has some elements of something I have been advocating for years - see my post from 2017: <a href="http://csr-reporting.blogspot.com/2017/08/materiality-from-meaningless-to.html" target="_blank">Materiality - from meaningless to differentiating</a> in which I wrote:</div><div style="text-align: justify;"><ul><li>There should be a harmonized standard baseline of disclosures that are relevant to all companies - some will be more critical than others for different companies - but they are relevant - and material - for all. I call this <b>Operational Materiality.</b> </li><li>Then we should have materiality that is precise enough to differentiate - focusing on the specific aspects of a company's impacts that are a directly relevant to its business, the locations it operates in and the influence it has on society. Let's call that <b>Precision Materiality.</b> </li></ul></div><div style="text-align: justify;">The WEF metrics partly go this route. WEF Core Metrics represent operational ESG performance. Expanded Metrics represent broader impacts - but remain any industry, and not specifically relative to what might be considered material for a specific company. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b>So back to the question, is it good or is it bad? </b></div><div style="text-align: justify;">Coming just on the heels of the <a href="https://www.globalreporting.org/about-gri/news-center/2020-09-11-a-powerful-interim-step-towards-a-single-coherent-global-set-of-reporting-standards/" target="_blank">"standard setters' " proud declaration</a> of how well they all fit in with each other and that no-one needs to be confused any more (and that's another (long) story 😜), here is yet another framework for ESG disclosure. I have to say that I rolled my eyes so hard that they almost stuck to my skull when I read the Press Release: <i>“This is a unique moment in history to walk the talk and to make stakeholder capitalism measurable,” says Klaus Schwab, Founder and Executive Chairman, World Economic Forum. “Having companies accepting, not only to measure but also to report on, their environmental and social responsibility will represent a sea change in economic history.” </i>Seriously? A unique moment in history? A sea change? Excuse me... with all due respect, where has Mr Schwab been for the past 25 years? This is not a unique moment, it's one of hundreds and hundreds (arguably regrettably) similar moments that have occurred in the past several years, with the publication of every new sustainability disclosure framework, and having companies report on their environmental and social responsibility is actually current practice for most of the large companies in the world - there may be inconsistencies, there may be gaps, but it is happening, and it has consistently been getting better. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">I also had a bit of a laugh at the visual in the WEF report's final section... rainbows galore!</div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhAfeRz_i0zfzfFAOHtHaZ4FZphoQ8zBwSn3bbsH12bnb9S_q-n4LcxszaoQOo9QRvyoF3xLeL4PFMYsuOXsww03A-5_pZnvdcAZTqsEUEVTF5zJ1vD8OsNGXMFZfqJbjAa_tMlKE9pX0w/s1805/wef+metrics+conclusion.PNG" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1805" data-original-width="1270" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhAfeRz_i0zfzfFAOHtHaZ4FZphoQ8zBwSn3bbsH12bnb9S_q-n4LcxszaoQOo9QRvyoF3xLeL4PFMYsuOXsww03A-5_pZnvdcAZTqsEUEVTF5zJ1vD8OsNGXMFZfqJbjAa_tMlKE9pX0w/w281-h400/wef+metrics+conclusion.PNG" width="281" /></a></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: justify;">The conclusion is also a Call to Action to IBC members. "<i>Given the urgency of this agenda, we invite all IBC members to declare their intention to report on these metrics and disclosures; collectively, we will present a timeline for that process at the IBC’s Winter Meeting in January 2021. Finally, we encourage the wider corporate community to join us in this collective endeavour.</i>" Watch this space, apparently. But you have time for a quick nap before January 2021.</div><br /><div style="text-align: justify;"><b>My answer to the question, then, is that the wheels are good but the bicycle is bad</b>. </div><div style="text-align: justify;">I'll explain.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">I agree with the concept of having a set of metrics that are relevant for all companies, as I have said. And the core metrics are a reasonable selection (with some exceptions - see below). BUT, why on earth did the accountants think they needed to create yet another framework? As I have said several times, <a href="http://csr-reporting.blogspot.com/2019/09/sasb-hot-air-gri-cold-shower.html" target="_blank">we do not need new frameworks, we need consistent implementation of existing framework</a>s. Take materiality as a case in point. Everyone is now swooning over the new concept of <a href="https://www.forbes.com/sites/bobeccles/2020/01/17/dynamic-materiality-and-core-materiality-a-primer-for-companies-and-investors/#59a457442e6a" target="_blank">dynamic materiality</a> - which in my view is a poor compromise to enable everyone to have a seat at the table without resolving underlying issues of how materiality is determined. Instead of creating yet another way to describe what materiality is, why has no-one one come up with a fool-proof comparable auditable methodology to help companies determine what represents material impacts from a sustainability standpoint? <a href="http://csr-reporting.blogspot.com/2020/07/gri-standards-materiality-youve-been.html" target="_blank">The new iteration of the GRI Standards, that has recently been in Exposure Draft did not do this,</a> and GRI has never done this. "GRI is the disclosure tool, we do not prescribe the methodology" said GRI. But heck, if your entire disclosure concept is based on materiality, why wouldn't you offer a methodology for how to create it? And this, in my view, has been the single biggest gap in sustainability reporting standards to date, and is the reason that so many other standards have sprung up. By asking companies to disclose material topics, without understanding or being able to reasonably audit what those material impacts are, comparability and rigor in sustainability disclosure were effectively destroyed. SASB stepped in and said, hey, we can do it. And they spent millions of hours and dollars creating sets of prescriptive metrics for different sectors, but even that doesn't do the job, as companies still select from SASB metrics based on their own, possibly arbitrary, definition of material topics. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Back to square one. Cue the accountants. Forget materiality. Everyone should be accountable for certain things in the same way. Let's cut and paste from as many existing frameworks as we can find, and call it The Enlightenment. So I think that's bad. I think it's a perpetuation of all that's wrong in the current sustainability disclosure landscape where every player is focused more on differentiating their own approach than on taking the higher view of how we can work together and build on what is and agree to make real change for the greater good. The WEFers may have pick'n'mixed from GRI, SASB, and all the rest. So what. The bicycle is new. Companies will have to learn how to ride it. Just when they were getting used to riding their current model. All we need now is for Larry Fink to send a letter to all the CEOs of companies in Blackrock's portfolio saying they must report disclose using SASB, TCFD AND the WEF metrics. Won't that be fun? So much for alignment, harmonization, simplification. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">And as for the core metrics, well, they are almost all based on GRI General or Topic-specific Disclosures. Why just not direct IBC members to report those GRI metrics? What was the point of creating an entirely new framework that just recycles the current best practice? Also, why some metrics were selected and others omitted is not so clear. Waste, for example, is not included in the Planet Core Metrics. But I would have thought that waste is absolutely core for most companies. And some metrics are rather useless. For example, in the People category, under "Skills for the Future", the metrics are average number of training hours and training expenditure. This is so old school. The number of training hours or the amount you spend on training is hardly an indicator of whether you are building skills for the future. In any event, many companies are moving away from formal traditional training programs in favor of other types of personal and professional development, so training hours is becoming an increasingly incomplete measure. So, by picking and mixing, the accountants may have come up with a set of core metrics that are comparable and auditable up to a point, but, frankly, what's the value add here? Not much.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">And what are metrics? Hint: Only a part of the story of a company's impacts and overall role in society. The context, the journey, the strategy, the targets, the process, the culture, the examples of practice, the insight, the accountability, the people .... all these are important in sustainability disclosure. This framework is an accounting tick-box by accountants for accountants. Something that makes sense to them because it can be quantified, stuck into categories, computed and converted into theoretical evaluations and risk assessments that may help investors know how rich they can get. Is this what sustainable development has become? A set of monetizable compartmentalized scores? This may be the story of sustainability disclosure promoting itself into obsolescence. Precisely because sustainability has been so successfully (yes, not perfectly) addressed and disclosed over the years, the money markets woke up. Now, they are trying to reframe it in ways that fit with what they know. Like the country farmer who visited the Empire State Building and asked: how many sheep does it hold? Well, not everything that glitters is gold and not everything that's a number is meaningful. </div><div style="text-align: justify;"> </div><div style="text-align: justify;">My assessment is that the WEF framework will not go mainstream as such, beyond the IBC members, if they even bother to apply it, even though the accountants will hype it.
Companies that already disclose GRI, SASB, CDP and TCFD may well find themselves hitting many of the WEF metrics in any case, so they will sort of deliver the WEF indicators by default.
If Larry Fink suddenly decides that this is the new Holy Grail, then he can probably get it without companies adding too much in the way of new disclosures. Some eager-beavers may start including a WEF index alongside all their other indices that support their reporting. What's another download, anyway? And let's not get started on the competitive scramble around Core and Expanded....can't you just see the Press Releases? <i><b>"XXX company demonstrates global leadership in radical transparency in its new Sustainability / Annual Report by meeting all the requirements of the Expanded Metrics of the WEF ESG disclosure framework."</b></i> Wowee.</div><div style="text-align: justify;"> </div><div style="text-align: justify;">If only the humanity could be saved by the proliferation of reporting frameworks…. 😂🤣😂 … we would all be able to spend more time trying out new ice cream flavors and enjoying days on the beach, wearing an "SDG Been There Done That" T-shirt.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><span style="background-color: white; font-size: x-small;"><b>Note:</b> October 2, 2020: This post originally stated in error that there were 22 core indicators - there are 21. This has been corrected.</span></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><span face="arial, tahoma, helvetica, freesans, sans-serif" style="color: #333333; font-size: x-small; text-align: left;"><span style="font-family: inherit;"><span style="text-align: justify;">e</span>laine cohen, CSR consultant, Sustainability Reporter, HR Professional, Ice Cream Addict. Owner/Manager of <span style="color: blue; text-align: justify;"><a href="http://www.b-yond.biz/" style="color: #0066cc;" target="_blank"><b>Beyond Business Ltd</b></a></span><span style="text-align: justify;">, </span>an inspired Sustainability Strategy and Reporting firm having supported <b>107 </b></span></span><span face="arial, tahoma, helvetica, freesans, sans-serif" style="color: #333333; font-size: x-small; text-align: left;"><span style="font-family: inherit;"><a href="http://www.b-yond.biz/clients-reports" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;"><b>client reports</b></span></a><span style="text-align: justify;"> to date; </span><b style="text-align: justify;">author </b><span style="text-align: justify;">of </span><a href="http://www.b-yond.biz/our-books" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">three books and several chapters</span></a><span style="text-align: justify;"> on Sustainability Reporting and the Human Resources connection to CSR; frequent </span><b style="text-align: justify;">chair and speaker </b><span style="text-align: justify;">at sustainability events and </span><b style="text-align: justify;">judge</b><span style="text-align: justify;"> in several sustainability awards programs each year. Contact me via </span><a href="http://www.twitter.com/elainecohen" style="color: #0066cc; text-align: justify;" target="_blank">Twitter</a><span style="text-align: justify;"> , </span><a href="https://www.linkedin.com/in/elainecohen/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">LinkedIn</span></a><span style="text-align: justify;"> or via </span><a href="http://www.b-yond.biz/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">Beyond Business</span></a></span></span></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><br /></div><div> </div>elainehttp://www.blogger.com/profile/07433863039389159395noreply@blogger.com0tag:blogger.com,1999:blog-8008724049496903547.post-8979324076293711872020-08-24T20:10:00.000+03:002020-08-24T20:10:52.436+03:00Reporting is fun with Virgin Media<div style="text-align: justify;">I have long been an admirer of Virgin Media's approach to responsible business, sustainability practice and reporting. It's smacks of personality, completely fits the brand presence and uses plain language and a range of creative mechanisms to get the message through, equally targeting the internal employee population and the customers who use Virgin Media's services, as well as others who are interested, including me, a reporting geek. (I'll disclose that I have worked with <a href="https://www.libertyglobal.com/responsibility/reporting-and-performance/" target="_blank">Liberty Global</a>, Virgin Media's parent company, on Liberty Global's global reports over many years, but I have not worked directly with Virgin Media.)</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">This year, <a href="https://assets.virginmedia.com/resources/pdf/2019_Sustainability_Report_FINAL.pdf" target="_blank">Virgin Media's Sustainability Performance Report for 2019</a> is a wrap-up of five years of consistent implementation of the strategy the company set for itself in 2015, based on a concept of five goals in five years. </div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjYZwCq2AGXIx4ntHNUGTul9gwABRY_n2QTtEH5lm8GF9cQVsq1XCIvyJw3mO5jQ7giBzn7qtGJKIuQfPI32ypviUf-bFxQjp_3hyr_9UtblFMSXnj_ZzpKxKrC32aqcs7AlQ62OaYhZEI/s1869/VM19+cover.JPG" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="834" data-original-width="1869" height="179" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjYZwCq2AGXIx4ntHNUGTul9gwABRY_n2QTtEH5lm8GF9cQVsq1XCIvyJw3mO5jQ7giBzn7qtGJKIuQfPI32ypviUf-bFxQjp_3hyr_9UtblFMSXnj_ZzpKxKrC32aqcs7AlQ62OaYhZEI/w400-h179/VM19+cover.JPG" width="400" /></a></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">Today, in 2020, Virgin Media has achieved four of the five goals, and made important progress on the fifth. Let's have a quick look at some of the milestones on this journey.</div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"> <div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhyYWOABZH6bXth8SbRKlxO_pxmCcXFPr2xTTgC2xlRrT-wItGMVbnjSdMit2V8moNa_oDW1i2SMczN4NCQIauaP9uBGGxqFS0HfTsujLf96Hlp0TawpScBtmwS15U0WXsN227Rpkwqztc/s769/VM19+goals.JPG" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="363" data-original-width="769" height="189" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhyYWOABZH6bXth8SbRKlxO_pxmCcXFPr2xTTgC2xlRrT-wItGMVbnjSdMit2V8moNa_oDW1i2SMczN4NCQIauaP9uBGGxqFS0HfTsujLf96Hlp0TawpScBtmwS15U0WXsN227Rpkwqztc/w400-h189/VM19+goals.JPG" width="400" /></a></div></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">I took the opportunity to pose a few short questions to Katie Buchanan, Virgin Media's Head of Sustainability and the mastermind of the five year strategy and implementation. </div><div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><span style="color: red;"><b>ME:</b></span> <b>Remind me how you developed your 2015-2020 strategy. You describe it as focusing “on where we should and can have the most impact”. </b></div><div style="text-align: justify;"><span style="color: red;"><b>KATIE:</b></span><span style="color: red;"> </span>Before we developed our 2015-2020 strategy and our 5-in-5 goals, we had relationships with 31 charities and 25 sustainability targets. It meant our work wasn’t focused and we weren’t able to make a significant impact – both inside our business or with the communities we operate in.
That’s why I took the decision to simplify to achieve a more significant social impact. I knew that if we achieved these big goals we would transform our business and people’s lives. And by having a more targeted approach, it gave us the head-room to focus on creating lasting impact, and I’m really proud to say we’ve done that.</div><div style="text-align: justify;">
</div><div style="text-align: justify;"><b style="color: red;">ME: </b><b>How did you determine what “the most impact” is? How was this strategy developed?</b></div><div style="text-align: justify;"><b style="color: red;">KATIE: </b>When setting our 5-in-5 goals, I went through a lengthy process to determine the right areas of focus. This involved listening to our customers, people and experts to identify what was most material to our business. The idea of exploring <b>digital</b> as an enabler became our vision (‘digital that makes good things happen’) and ‘<b>independence</b>’ emerged as the top theme to address. We then identified disabled people as the audience who could benefit from this combined focus. Importantly, we also looked at how we could have the greatest impact with our brand, connectivity and UK-wide footprint: our strategy had to have our core capabilities at its heart and be authentic to our brand. </div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh6R6S6H-AFiDpfEPWJcpU6lJGXQNwh_VOkDwcTbWM5OedJXMeFfuQQJ3uia4fv9tnLI0Yfz855WEggS1YQASdnHLPR6sgL8ywzSl1u85C9EI9yu2uT31-9WvaJONealQ1QK-rrwI2Epeg/s1246/VM19+p2.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="620" data-original-width="1246" height="203" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh6R6S6H-AFiDpfEPWJcpU6lJGXQNwh_VOkDwcTbWM5OedJXMeFfuQQJ3uia4fv9tnLI0Yfz855WEggS1YQASdnHLPR6sgL8ywzSl1u85C9EI9yu2uT31-9WvaJONealQ1QK-rrwI2Epeg/w410-h203/VM19+p2.JPG" width="410" /></a></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><b style="color: red;">ME: </b><b>What has been the impact for the disabled communities you have supported?</b></div><div style="text-align: justify;"><b style="color: red;">KATIE: </b>Five years on, with our Transforming Lives goal, I’m proud that we are on track with our charity partner, Scope, to support 1 million disabled people with the skills and confidence to get into and stay in work by the end of 2020. We’ve also taken steps to become a better employer of disabled people, such as offering dedicated training for our line-managers so they can better support disabled colleagues and, via our #WorkWithMe programme, we’re supporting businesses across the UK to become better employers of disabled people too - creating an online community where peers can learn disability employment best practice from each other.
This goal has helped us achieve positive social change for disabled people across the UK – whether they're looking for employment or are employed via Virgin Media or other brands.</div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgMe_ISEoPPK2LYhNOvNv3sBjwwgzJTc1O10Yj82tXGgaTMHuq_ZLt2PXcw_-Ck6DhJmm-IR3XQdQE5w0P7bozzaxtRst2QEdHQAG26GLgU5IlW4XQVwWcQnESpRKxQkZdREpfjzxYdPqY/s1255/VM19+p1.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="644" data-original-width="1255" height="205" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgMe_ISEoPPK2LYhNOvNv3sBjwwgzJTc1O10Yj82tXGgaTMHuq_ZLt2PXcw_-Ck6DhJmm-IR3XQdQE5w0P7bozzaxtRst2QEdHQAG26GLgU5IlW4XQVwWcQnESpRKxQkZdREpfjzxYdPqY/w400-h205/VM19+p1.JPG" width="400" /></a></div><div style="text-align: justify;"><br /></div>
<b><div style="text-align: justify;"><b><span style="color: red;">ME:</span></b> <b>Well done on nailing four out of your five 2020 goals. Which of these gives you the greatest satisfaction and why?</b> </div></b><div style="text-align: justify;"><span style="color: red;"><b>KATIE: </b></span>There has been a lot of work over the past five years that I’m really proud of.
One of the biggest highlights has been how we’ve taken Virgin Media’s sustainability programmes mainstream, from donating our shirt-sponsorship of Southampton FC to Scope for two Premier League matches, to seeing our Chief Operating Officer, Jeff Dodds, take to the stage at One Young World conference.
I am also proud of how we’ve engaged and supported our people. For example, we have created a unique product scorecard which is a practical guide for enabling teams across our business on how to make each of our products more sustainable than the last. For our example, our Hub 4 router is 39% more power efficient than our previous hub when in use (when adjusted for functionality), and it uses 36% less plastic.
In addition, our ‘squad selector’ tool – which we created in 2018 - helped our employees to understand how they can get involved in sustainability in their everyday roles.
We’re a small but mighty team whose work is having an impact across our business – from our Board to our engineers. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><span style="color: red;"><b>ME:</b></span> <b>The one goal you did not fully achieve was being more inclusive, focusing on gender and disability. What’s the learning from this as you move forward into the next phase? </b></div><div style="text-align: justify;"><span style="color: red;"><b>KATIE: </b></span> Although we didn’t quite achieve our ‘inclusion’ goal, we actually had a greater impact on driving positive change in this area thanks to our work with Scope, which took us in a more focused direction. Our #WorkWithMe programme – launched two years after we set our inclusion goal – has helped transform the lives of disabled people, and improved the way Virgin Media and other big businesses employ and support disabled people. Ironically, it’s the one goal we didn’t achieve that has perhaps given me the greatest satisfaction. Under this goal we’ve driven lasting positive change both inside and outside of our business despite not quite hitting the mark. In terms of moving forward, here is the learning I’ll carry forward: </div><div style="text-align: justify;"><b># Partnerships power change:</b> We’ve made huge progress on transforming our business for disabled employees and customers. While there is more to do, a lot of this success is down to our partnership with Scope. I think we have achieved this by leveraging their skills, so I think our future inclusion strategy will include partners who can help guide us and hold us to account as deep subject matter experts </div><div style="text-align: justify;"><b># Long term focus:</b> We need teams that have difference and togetherness, this is not only the right thing to do but it helps us to drive business growth. But it takes time. Setting goals that give you the ability and time to get underneath an issue is important. Significant change does not happen overnight especially when a culture change is required. </div><div style="text-align: justify;"><b># Make it part of your everyday:</b> The way we talk about sustainability or inclusion matters. We’ve worked hard to make it something everyone can understand and get behind (i.e. no jargon). It’s not something that the People team or Sustainability team is responsible for – enabling your people to know how to get involved and take part is important. The same goes for finding opportunities to talk about our work – we took disability to the Premier League through our Shirt Swap donation activation. Going forward we will continue to find ways to make these thorny issues part of the everyday. </div><div style="text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEin6_PkDfkOWLLg3ek6cp0ePXUqM84EfSbHrJy36h5lfIgDDogyv4krl6FxBjtdidVuQSBYKT00vSU-rBggguh4JTAg3RvTMEzhY0Oc7bebty1dJ11GarDCcln9t57hPtciFuxoKXari4s/s1260/VM19+p26.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="682" data-original-width="1260" height="216" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEin6_PkDfkOWLLg3ek6cp0ePXUqM84EfSbHrJy36h5lfIgDDogyv4krl6FxBjtdidVuQSBYKT00vSU-rBggguh4JTAg3RvTMEzhY0Oc7bebty1dJ11GarDCcln9t57hPtciFuxoKXari4s/w400-h216/VM19+p26.JPG" width="400" /></a></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><span style="color: red;"><b>ME:</b></span> <b>You deliberately deliver a report that is fun, creative, uses everyday language... one that can appeal to your employees and consumer base, as well as other stakeholders. In developing your 2020 strategy, did you also have a reporting strategy? If so, what were the objectives for that and how did you do?</b></div><div style="text-align: justify;"><b style="color: red;">KATIE: </b>We have consistently evolved our reporting – we’ve gone from disclosure, to engagement and now enablement. We want to make sustainability accessible for everyone – our people, customers or other industry professionals. That’s why we introduced the world’s first 360° corporate sustainability experience, had a football-themed report, and have used funny cat GIFS. Our reports not only focus on the "what" we’ve done’ but also the "how we’ve done it" as we want to show that sustainability storytelling can be engaging, insightful and fun. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><span style="color: red;"><b>ME:</b></span> <b>And digital is a big part of your reporting strategy, right?</b></div><div style="text-align: justify;"><b style="color: red;">KATIE: </b>Yes, absolutely!<b style="color: red;"> </b>Over the past decade, we have embraced digital storytelling so the reporting of our performance is accessible. It’s my vision that we use our reporting as an opportunity to engage with all of our people in order to bring them along with us, as of course, everyone has a role to play in ensuring we operate as a responsible business. In addition, we want the report to engage AND enable our industry colleagues so they can take our learning and make a positive difference in their organisations, too.
With this 2019 report, we’ve incorporated our team’s reflection on our performance as we want to share our learning with other industry colleagues. We’re encouraging other sustainability professionals to learn from our tips and slip-ups so they can apply them in the delivery of their own sustainability strategy, or consider them as part of their own strategy setting exercise.
Also, we make a real effort to ensure our reports are clear and understandable as sustainability should open to everyone. We don’t want our report to passively live on a webpage – we want to use it as a tool to connect with our audiences, and drive environmental and social impact in the same way our core strategic programmes do.
Ultimately, nobody wants to read an 80-page document, and we as sustainability professionals have a role to play in engaging and enabling our key stakeholders – whether they are employees or customers. People are increasingly becoming in tune to sustainability issues – from protecting the environment to how you treat your employees. Therefore, we aim to enable people to engage, understand, learn and act from our reporting.</div><div><div style="text-align: justify;"> </div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgtOCC4sWXVjgkNkM3QATFEZCtuMjrwA3LrUL1PCwZ-9HU-q6b9yX_iNWYq28zxwsWlgo_jJTyVZe4im-uwChVDnRqNX2F3W4AiCoJXfu9S-OLJf6ed2UCLsRkxFN-ByUeXfmoPli2DxF4/s1268/VM19+p32.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="706" data-original-width="1268" height="228" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgtOCC4sWXVjgkNkM3QATFEZCtuMjrwA3LrUL1PCwZ-9HU-q6b9yX_iNWYq28zxwsWlgo_jJTyVZe4im-uwChVDnRqNX2F3W4AiCoJXfu9S-OLJf6ed2UCLsRkxFN-ByUeXfmoPli2DxF4/w410-h228/VM19+p32.JPG" width="410" /></a></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><span style="color: red;"><b>ME:</b></span> <b>Can you explain your choice not to follow a widely-used reporting standard such as GRI? </b></div><div style="text-align: justify;"><span style="color: red;"><b>KATIE: </b></span>We follow the principles of GRI reporting – for example transparency and a clear governance framework is incredibly important for underpinning our strategy. Our parent company Liberty Global takes responsibility for standards such as GRI, DJSI and CDP etc. We work very closely with them – for example they lead the data collection and assurance approach with KPMG. Our efforts (and budget) at Virgin Media go towards engaging and bringing to life our story for our people and our customers. I have a small (but mighty) team and know that this combination is powerful – we have the best of both worlds! </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><span style="color: red;"><b>ME:</b></span> <b>And the question everyone is asking right now, the COVID-19 differential. How do you think the COVID19 experience will influence your sustainability strategy going forward? </b></div><div style="text-align: justify;"><b style="color: red;">KATIE:</b> As a company we’ve been working really hard during the pandemic to provide the best connectivity – whether that’s to support NHS workers on the front line or to help our customers stay connected to the people they love – which is more vital now than ever.
We’re in the process of setting our next five year sustainability strategy and connectivity is at the heart of it. We are looking at how we can use our connectivity to connect communities across the UK.
The past few months have been horrific for many, yet, we’ve seen communities come together and people looking out for one another – something that we’ve not experienced for decades. So we’re assessing how we can harness that as we know that life will be different once the pandemic ends and communities will need businesses to play a role in supporting them. We want to be in that space and it’s a really interesting time for my team and I as we develop our plans. Stay tuned!
And when it came to reporting, there was never a question in our mind about delaying reporting this year. It’s business as usual, perhaps more so than ever for Virgin Media, as we work really hard to keep communities connected. Working virtually hasn’t changed our ability to wrap-up our five year strategy in a way that our people can particularly be proud of. But we have made some adjustments, for example, our videos and GIFs have been filmed at home – rather than out and about – in order to keep people safe. </div><div style="text-align: justify;"> </div><div style="text-align: justify;"><b><span style="color: red;">ME:</span> Finally, your top three tips for people writing sustainability reports?</b> </div><div style="text-align: justify;"><b><span style="color: red;">KATIE:</span></b> </div><div style="text-align: justify;"><b># The ‘how’ as well as the ‘what’:</b> As mentioned earlier, we have embraced digital storytelling for a more than a decade. From hand-held video cam recordings (before smart phones were around), to the world’s first 360° corporate sustainability experience, a tool to show our people their role in helping us to operate a responsible business, to sharing funny GIFS - we want to make our reporting is accessible and enjoyable for everyone. Therefore, it’s equally important to think about the ‘how’ when highlighting your performance, as well as ‘what’ you have done. </div><div style="text-align: justify;"><b># Sustainability for all:</b> Reporting your performance should be engaging, insightful and fun. Ultimately, nobody will read an 80 page PDF – so really focus on the design, language and length of the report. Reports should be aimed at your customers, employees, and as a tool for your peers to take learning. As sustainability professionals, we are all striving to create an impact with our work and we should be proactive and proud to learn from each other – which ultimately will have a positive effect on where we work and the communities we serve. </div><div style="text-align: justify;"><b># Think about your audience:</b> Establish the principles which are unique or fundamental to your brand (I call them your consistency compass). Ensure your communications are authentic and engaging. Understand who your key stakeholders are and how they want to consume information.
</div></div></div><div style="text-align: justify;"><br /></div><div style="text-align: center;"><b><span style="color: red;">******</span></b></div><div style="text-align: justify;"><b><span style="color: red;"><br /></span></b></div><div style="text-align: justify;">These are amazing insights from Katie and both strong performance and commitment to transparency with the delivery of the five in five strategy. As you will have read, Katie stresses that reporting should be engaging, insightful and fun. And, I fully agree. Sustainability information should be accessible, in language that people can relate to and it has value in teaching others in the industry about what can be done. I always talk about reporting as an empowering experience, and I think Katie demonstrates how this can work optimally. </div><div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">And there's another insight here that's so important. As a part of a global organization which takes care of the more formal disclosure elements of transparency (reporting to GRI Standards, CDP submissions, engaging with sustainability indices such as DJSI and rankers and raters), the local business can focus on making it happen in its own unique way in its own unique context. This is a wonderful example of how a global organization can be super-relevant and less constrained by formal frameworks and language at the local level while managing resources efficiently across the enterprise. This is a model that any global business can apply, and some do so very well. I have always loved, for example, <a href="https://www.theheinekencompany.com/sites/theheinekencompany/files/sustainability/our-progress/reporting-center/global-reports/HEINEKEN-Local-Reporting-2018-Message-in-a-Bottle-full.pdf" target="_blank">Heineken's Message in a Bottle</a>, and <a href="https://blogs.intel.com/csr/2020/07/intel-israel-publishes-its-localized-corporate-social-responsibility-report-for-2019-2020/#gs.ddg113" target="_blank">Intel Israel has for years published a local report</a> with a similar approach of local relevance backed up by the formal disclosures of the global parent company (disclosure: Intel Israel is a client). </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;">At local level, reporting is not just about transparency, it's far more about empowerment, impact, and, as Katie says, enablement. Reporting is not just a report. The Virgin Media journey is proof. </div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><br /></div><div style="text-align: justify;"><span style="background-color: white;"><span style="font-family: inherit; font-size: x-small;"><span style="color: #333333; text-align: left;"><span style="text-align: justify;">e</span>laine cohen, CSR consultant, Sustainability Reporter, HR Professional, Ice Cream Addict. Owner/Manager of <span style="color: blue; text-align: justify;"><a href="http://www.b-yond.biz/" style="color: #0066cc;" target="_blank"><b>Beyond Business Ltd</b></a></span><span style="text-align: justify;">, </span>an inspired Sustainability Strategy and Reporting firm having supported <b>100+ </b></span><span style="color: #333333; text-align: left;"><a href="http://www.b-yond.biz/clients-reports" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;"><b>client reports</b></span></a><span style="text-align: justify;"> to date; </span><b style="text-align: justify;">author </b><span style="text-align: justify;">of </span><a href="http://www.b-yond.biz/our-books" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">three books and several chapters</span></a><span style="text-align: justify;"> on Sustainability Reporting and the <b>Human Resources</b> connection to CSR; frequent </span><b style="text-align: justify;">chair and speaker </b><span style="text-align: justify;">at sustainability events and </span><b style="text-align: justify;">judge</b><span style="text-align: justify;"> in several sustainability awards programs each year. Contact me via </span><a href="http://www.twitter.com/elainecohen" style="color: #0066cc; text-align: justify;" target="_blank">Twitter</a><span style="text-align: justify;"> , </span><a href="https://www.linkedin.com/in/elainecohen/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">LinkedIn</span></a><span style="text-align: justify;"> or via </span><a href="http://www.b-yond.biz/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">Beyond Business</span></a></span></span></span></div><div style="text-align: justify;"><br /></div></div>elainehttp://www.blogger.com/profile/07433863039389159395noreply@blogger.com0tag:blogger.com,1999:blog-8008724049496903547.post-79561439433350637532020-07-29T22:51:00.000+03:002020-07-29T22:51:40.540+03:00GRI Standards: And Now For The Fine Print<div style="text-align: justify;">
If you have read all my posts on the <a href="https://www.globalreporting.org/standards/work-program-and-standards-review/review-of-gris-universal-standards/" target="_blank"><span style="color: blue;">Exposure Draft of the new GRI Universal Standards</span></a> in this past fortnight, you are probably more boggly-minded than I am, and GRI Standards overload may have caused you to deplete all your stock of mint choc chip ice cream. I am predicting an ice cream world shortage as people start delving into the Exposure Draft and considering their positions. But don’t worry, we can always move to frozen yogurt as a stop gap. And, you will be pleased to know that this is the last post in this series, so you can get back to Netflix and home schooling.<br />
<br />
A quick recap of what we covered so far:<br />
<span style="color: blue;"><a href="http://csr-reporting.blogspot.com/2020/07/gri-standards-shape-up-or-shape-out.html" target="_blank"><span style="color: blue;">Shape up or Shape Out:</span></a> </span>An overview of the proposed changes with a focus on the new In Accordance rules<br />
<a href="http://csr-reporting.blogspot.com/2020/07/gri-standards-human-rights-quadrupled.html" target="_blank"><span style="color: blue;">Human Rights Quadrupled:</span></a> A look at the way human rights have infiltrated the GRI Standards better than than stray cats in a fish farm<br />
<a href="http://csr-reporting.blogspot.com/2020/07/gri-standards-materiality-youve-been.html" target="_blank"><span style="color: blue;">Materiality: You've been doing it all wrong:</span></a> Description of the new materiality definition and its implications<br />
<a href="http://csr-reporting.blogspot.com/2020/07/gri-standards-governance-galore.html" target="_blank"><span style="color: blue;">Governance Galore</span></a>: An overview of the way governance now governs<br />
<a href="http://csr-reporting.blogspot.com/2020/07/gri-standards-sector-standards-back-on.html" target="_blank"><span style="color: blue;">Sector Standards: Back on the Map:</span></a> The re-entry of sector differentiation to underpin material disclosures<br />
<br />
And if that's not enough, here is the fine print. This post will cover a few changes that I thought were a little odd, outside of the main changes I have highlighted so far.<br />
<br />
<span style="color: red;"><b>Disclosure Requirement A-7: Provide a statement of use</b></span><br />
This In Accordance mandatory disclosure requires reporting organizations to include a statement from someone on the highest governance body or most senior executive, using the wording in this example:<br />
<i>“The Board of Directors (or CEO) acknowledges responsibility for the following statement of use: The information reported by ABC Limited for the year ending 31 December 2020 has been prepared in accordance with the GRI Standards.”</i><br />
<br />
In other words, the Chair or CEO must confirm that the report has been prepared in accordance with the GRI Standards.
What’s the purpose of this? Isn’t the CEO statement that is a mandatory part of the report enough of an endorsement? I can understand a statement that requires the CEO to accept responsibility for the information contained in the report as an accurate reflection of the organization’s impacts and performance. Why make it about adherence to GRI Standards? Is it really expected that CEOs will go into detail about the way the Standards have been used? If this type of statement is required, then the Reporting Manager or Sustainability Lead should sign off. Or the assurers – isn’t that what they are paid for?<br />
<br />
GRI virtuoso <a href="https://www.globalreporting.org/information/about-gri/governance-bodies/secretariat/Pages/reporting-standards.aspx" target="_blank">Bastian Buck,</a> Chief of Standards explained:<br />
<b><span style="color: red;">BASTIAN:</span></b> “There are a couple of trends here, and honestly, we are not sure if we have landed in the right place with this one – the GSSB has discussed this issue at length and would like to hear from stakeholders on this. GRI-based reporting is increasingly regulated in different ways, for example, for listing on Stock Exchanges. Many jurisdictions are using GRI as recommended options for compliance with reporting requirements. Stakeholders and regulators want to know what this means and whether company’s GRI reporting is living up to expectations. They want clarity that the reporting standards have been applied in the way organizations promise, including application of the reporting principles and disclosure of material impacts. This Statement of Use requirement is modeled after what other standard setters have done. Often it can be achieved through the involvement of a third party who performs all the checks and enables the Board or CEO to make such a statement. But I agree this is an area where we need more discussion. There was not 100% consensus on this. On the one hand, we need to respond to the expectation of regulators; on the other hand, we do not want to overburden reporting companies with disclosure that does not add value.”<br />
<br />
My view is that if a company is publishing a report, the CEO, who reports to the Board of Directors, must stand by the fact that this report is published in their name and that the claims made in the report are accurate. The CEO introductory message, which is part of the report, reinforces the CEO’s accountability for the report content. I do not think we need the CEO to say: “Just in case you were wondering, we have done what we claimed to have done.”<br />
<br />
<span style="color: red;"><b>The contact point has disappeared </b></span><br />
In the current GRI Standards, Disclosure 102-53 requires the organization to state a contact point for questions regarding the report. The new Universal Standards Exposure Draft removes this. I found this really weird. Reporting is an engagement tool. Surely reporters must provide a channel for engagement - somewhere to direct your inquiries to? I occasionally write to companies about things I notice in their reports, and I do so using the contact point they publish. More often than not, I get a response.<br />
<br />
Now, some companies offer a generic email address – such as <span style="color: blue;"><u>sustainability@icecream.com</u></span> or <span style="color: blue;"><u>responsibility@mintchocchip.com</u></span>. This is fine, and assumes these emails will be monitored by members of the reporting team. Not everyone wants to make their individual work email public, given the amount of spam and other rubbish you get via email. Ideally, I like to see the name of a person and a job title. Take this good example from <a href="https://www.cr-report2019.man/" target="_blank">Man’s 2019 CR Report</a>:<br />
<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjDlkfe55cMXMV0mys8feL8YPKU10sUYU9Uwg7BCseCTyk51jLIGDIZdUQ4WIW2jUMu_ldUNJbdnXwwAY4dEUrs6AoPUp1KZag0ceWm6RqlKM_os7M6p_XdyRBh0bpp4Uk0GzTbCJ8ynPs/s1600/MAN19+contact.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="332" data-original-width="288" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjDlkfe55cMXMV0mys8feL8YPKU10sUYU9Uwg7BCseCTyk51jLIGDIZdUQ4WIW2jUMu_ldUNJbdnXwwAY4dEUrs6AoPUp1KZag0ceWm6RqlKM_os7M6p_XdyRBh0bpp4Uk0GzTbCJ8ynPs/s320/MAN19+contact.JPG" width="276" /></a></div>
Although the email is generic, the name of the senior person accountable for the report is included.<br />
<br />
GRI maestro Bastian Buck, Chief of Standards explained:<br />
<span style="color: red;"><b>BASTIAN:</b></span> “We removed the contact point disclosure because we didn’t feel it was serving the purpose as intended. Most companies include generic emails. Feedback we have received indicates that it is often difficult for stakeholders to get through to the relevant contact in the reporting organization The information can be found on the organization's website and organizations can still report it if they wish.”<br />
<br />
I say: BRING THE CONTACT POINT BACK! I think it is both useful and a signal that companies invite feedback and queries.<br />
<br />
<span style="color: red;"><b>Disclosure REP-3 Reporting period and frequency </b></span><br />
This disclosure in the Exposure Draft requires organizations to specify the reporting period, and the reporting frequency (both are in the current standards) and also “<i>if the organization has audited consolidated financial statements or financial information filed on public record, specify the reporting period for its financial reporting and provide an explanation if it does not align with the period for its sustainability reporting”</i>.<br />
This last part is new. The additional guidance states: <i>"The organization should align the reporting period for its sustainability reporting with the reporting period for its other statutory and regulatory reporting, in particular, its financial reporting." </i><br />
<br />
I see this as another troubling consequence of force-fitting sustainability reporting into financial reporting frameworks to meet the needs of money markets. The timescale required for sustainability reporting may not align with financial accounting for many and varied reasons. As long as a company is reporting consistently, and on a regular frequency, and within a reasonable time-frame after the close of the reporting period, that works for me. While there is obviously a linkage (usually created by investors or investment analysts, for example, who analyze environmental performance normalized to revenue – a useless comparison, in my view), I think sustainability reporting serves different needs and is subject to different review and approval pressures, and does not need to be dictated by the money market calendars. On the contrary, there is benefit in all companies reporting a calendar year on sustainability, which is far more comparable than different financial year periods.<br />
<br />
What is vastly more important, in my view, is the publication date. Companies should be encouraged to improve their reporting efficiency and ensure they publish within a reasonable time after the end of the sustainability reporting period – ideally six months. I think that the requirement of a disclosed publication date should be included in the new Universal Standards, pretty much like the example of Man’s report shown above. Their sustainability reporting year is calendar 2019, the report was published June 2020. Their Annual Report was published in March 2020.<br />
<br />
GRI guru Bastian Buck, Chief of Standards explained:<br />
<span style="color: red;"><b>BASTIAN: </b></span>“Companies have numerous reporting requirements. All this information only makes a lot of sense if stakeholders have comprehensive information available. We have to bring this whole practice into a regular rolling schedule and that may include the integration of non-financial into financial reporting. We see it as a necessity to co-locate these disclosures. It’s not about monetizing everything, but it’s important that stakeholders have the whole picture.”<br />
<br />
I disagree. But you know why. I said so above. But what do YOU think? <a href="https://r1.dotmailer-surveys.com/754j59b-144lblee" target="_blank"><span style="color: blue;"><b>Have your say</b></span></a> on this point and other points made in this post and other posts, and anything else in the Exposure Draft that I didn’t get to in this series of reviews. The Exposure Draft is open for comments until <b>9th September 2020.</b><br />
<br />
And that’s a wrap for the time being. This concludes six aspects of the new GRI proposals, all of which have implications for reporters and report users. Overall, I welcome this initiative, the new structure of the 101,102,103 Standards makes sense to me, key principles and definitions have been clarified in useful ways and some new areas of emphasis will support improved reporting on different topics. On the other hand, some of the proposals place unnecessary burden on reporting companies, and some don’t go far enough. It will be interesting to see how this plays out and what makes the final cut.<br />
<br />
I’d like to thank Bastian Buck and Laura Espinach for their time and insights and their endless patience with me in a discussion with covered even more ground that I have been able to record in these posts. It’s been a fascinating exercise for me, a self-professed reporting geek, and I hope it’s useful for you.<br />
<br />
Stay safe, stay well, stay optimistic! </div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
</div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-GB" style="mso-ansi-language: EN-GB;"><br /></span>
<span lang="EN-GB" style="mso-ansi-language: EN-GB;"><br /></span></div>
<div class="MsoNormal">
<span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: x-small;"><span style="font-family: inherit;"><span style="text-align: justify;">e</span>laine cohen, CSR consultant, Sustainability Reporter, HR Professional, Ice Cream Addict. Owner/Manager of <span style="color: blue; text-align: justify;"><a href="http://www.b-yond.biz/" style="color: #0066cc;" target="_blank"><b>Beyond Business Ltd</b></a></span><span style="text-align: justify;">, </span>an inspired Sustainability Strategy and Reporting firm having supported <b>107 </b></span></span><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: x-small;"><span style="font-family: inherit;"><a href="http://www.b-yond.biz/clients-reports" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;"><b>client reports</b></span></a><span style="text-align: justify;"> to date; </span><b style="text-align: justify;">author </b><span style="text-align: justify;">of </span><a href="http://www.b-yond.biz/our-books" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">three books and several chapters</span></a><span style="text-align: justify;"> on Sustainability Reporting and the Human Resources connection to CSR; frequent </span><b style="text-align: justify;">chair and speaker </b><span style="text-align: justify;">at sustainability events and </span><b style="text-align: justify;">judge</b><span style="text-align: justify;"> in several sustainability awards programs each year. Contact me via </span><a href="http://www.twitter.com/elainecohen" style="color: #0066cc; text-align: justify;" target="_blank">Twitter</a><span style="text-align: justify;"> , </span><a href="https://www.linkedin.com/in/elainecohen/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">LinkedIn</span></a><span style="text-align: justify;"> or via </span><a href="http://www.b-yond.biz/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">Beyond Business</span></a></span></span></div>
elainehttp://www.blogger.com/profile/07433863039389159395noreply@blogger.com0tag:blogger.com,1999:blog-8008724049496903547.post-186058511429206612020-07-28T16:12:00.000+03:002020-07-28T16:12:01.473+03:00GRI Standards: Sector Standards: Back on the Map<div style="text-align: justify;">
This is another short(!) post in the GRI Standards series – an anatomical dissection of the <a href="https://www.globalreporting.org/standards/work-program-and-standards-review/review-of-gris-universal-standards/" target="_blank"><span style="color: blue;">Exposure Draft of the new GRI Universal Standards</span></a> and what it means for reporters and report users. This fifth post is all about sectors. You’ll recall that Sector Standards were a thing a long while ago at GRI, and a number of Sector Standards were developed. Then it stopped. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
It’s clear that sectors enable segregation of companies into categories that often share the same context and same issues. That’s why there are so many sector associations, several of which have developed their own sustainability and reporting standards (in addition to bespoke Codes of Conduct and sustainability initiatives). IPIECA, for example, the oil and gas industry association, has a <a href="https://www.ipieca.org/our-work/sustainability-reporting/sustainability-reporting-guidance/" target="_blank">sustainability reporting manual</a> for its members, now in its fourth edition. The World Steel Association has a <a href="https://www.worldsteel.org/en/dam/jcr:e145ec84-63cf-4bb3-b35a-db6e98edc4e6/worldsteel%2520Sustainability%2520Indicators%2520Data%2520Collection%2520User%2520Guide%2520-%2520May2020.pdf" target="_blank">sustainability reporting indicators guide</a> for its members. The Responsible Business Alliance (for companies from the electronic, retail, toy and auto sectors) has a <a href="https://www.responsiblebusiness.org/media/docs/RBAPracticalGuideProcurement.pdf" target="_blank">guide for transparency in procurement</a> for its members. Cosmetics Europe has a <a href="https://www.cosmeticseurope.eu/files/4214/6521/4452/GSP_Brochure.pdf" target="_blank"><span style="color: blue;">sustainability guide</span></a> for its members, that includes sustainability reporting with recommended indicators.The Better Buildings Partnership in the UK has a <a href="https://www.betterbuildingspartnership.co.uk/sites/default/files/media/attachment/bbp-sustainability-benchmarking-toolkit.pdf" target="_blank"><span style="color: blue;">guide on reporting and metrics</span></a> for its members. And the list goes on. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
(By the way, the High Meadows Institute recently released a super-useful <a href="https://rgsciences.shinyapps.io/Business_In_Society_Database/#section-blis-database" target="_blank"><span style="color: blue;">Business Leadership in Society Database</span></a> of global partnerships and industry associations with detailed profiles of each that can help you check out what’s happening in your sector anywhere in the world, and companies that subscribe to these initiatives.) </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Sectors is definitely a thing. And Larry Fink did not mince words when <a href="https://www.blackrock.com/corporate/investor-relations/larry-fink-ceo-letter" target="_blank">he wrote</a> to companies that Blackrock is investing in, requiring them to publicly disclose using <a href="https://www.sasb.org/" target="_blank"><span style="color: blue;">SASB</span></a> Standards. SASB (Sustainability Accounting Standards Board) as you probably know, was established in 2011 and has developed a list of 77 sector-aligned Standards designed to encourage companies to report on financially material sustainability topics within their corporate reporting for investors. Originally targeted at the U.S. market, SASB believes you cannot get enough of a good thing and therefore now promotes these standards globally. With 77 Standards, they pretty much cover the sector spectrum.
</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Time to let GRI have their say. I directed a few innocent questions to GRI expert-in-chief, <a href="https://www.globalreporting.org/information/about-gri/governance-bodies/secretariat/Pages/reporting-standards.aspx" target="_blank">Bastian Buck</a>, Director of Standards. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<b><span style="color: red;">ME:</span> What’s the point in developing sector standards? Hasn’t SASB already done this work? </b></div>
<div style="text-align: justify;">
<b><span style="color: red;">BASTIAN:</span></b> "The Sector Standards complete and strengthen the GRI Standards. One of the main criticisms of sustainability reporting and of GRI has been the lack of detailed guidance for determining materiality, so we are addressing that through the Sector Standards. It’s important to remember that we are not changing the approach on stakeholder engagement, and companies should continue consulting stakeholders on materiality. Our Standards will define what is likely to be material in each sector. We don’t want to prescribe, but there is evidence that certain topics will be material by sector and GRI wants to ensure that these will be considered as part of any materiality assessment." </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<b><span style="color: red;">ME:</span> Why not simply reference the SASB Standards and not waste a whole lot of money and time reinventing the wheel?</b> </div>
<div style="text-align: justify;">
<b><span style="color: red;">BASTIAN:</span></b> "It’s not about entering into a competition about what’s financially material, we see ourselves as building on what others have done in this space. We don’t want to start with a blank sheet of paper and that is why there is stronger emphasis on research and existing sources in this program. At the heart of the whole rationale for GRI’s standard setting and therefore also the sector program is the point that GRI focuses on impacts on others, not primarily on the risks to companies or issues that affect them. This necessitates the consideration of a wider set of topics than ESG topics considered by SASB. It is likely that we will observe that the gap between the two offerings in terms of topics covered is considerable. The reason is a fundamental difference: we look at a much wider set of considerations. To ensure we don’t lose sight of the potential overlaps and alignments, we have included SASB in our first pilot project which looks to resources such as SASB as an input to the process. We expect to see considerable if not complete overlap for most sectors and a SASB representative was included in the first pilot project for the GRI Oil and Gas Sector Standard." </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<b><span style="color: red;">ME:</span></b> <b>There are also several sector standards developed by industry associations such as IPIECA. Why not simply refer to those where they exist and/or encourage associations to develop these where they do not? </b></div>
<div style="text-align: justify;">
<b><span style="color: red;">BASTIAN:</span></b> “We recognize the strong work done in this space by many sectors, and we hope to collaborate with them as we do with SASB, IPIECA and other relevant players. It’s important to remember that industry associations may not have the same multi-stakeholder impact-driven focus. Often their reference point is regulatory considerations. Remember, industry associations are industry led. Our role is to ensure balance across all stakeholder expectations with our Sector Standards.” </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<b><span style="color: red;">ME:</span> How long will it take to develop a full set of Sector Standards? How many sectors are expected to be covered?</b> </div>
<div style="text-align: justify;">
<b><span style="color: red;">BASTIAN:</span></b> “We are currently piloting three sector standards – Oil and Gas , Coal , and Agriculture and Fishing. The idea is to scale relatively quickly with 5 – 10 standards being developed concurrently at any given time to deliver a total of around 45 once the program is complete.” </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<b><span style="color: red;">ME: </span>Why make Sector Standards mandatory to be In Accordance? That means that some companies must report with the Sector Standards while others will not have to because they have not been developed yet. This is creating an uneven playing field for reporting over a long period of time. Why not make them optional / recommended? </b></div>
<div style="text-align: justify;">
<span style="color: red;"><b>BASTIAN</b>:</span> “We believe we need to address one of the shortcomings of sustainability reporting, and that is that it’s too easy to avoid reporting on certain things. The Standard Setter has to play a role in this. We are not mandating the use of all the topics but only the use of the Sector Standard. At the end of the day, the requirement is for an organization to consider the topics described in the applicable Sector Standard. Each Standard will apply to all companies in a certain sector - so all companies in the same sector will be equal. This will make sustainability reporting more comprehensive and complete and help to address the the issue of underreporting of material topics. It can also be used as an engagement tool. We believe that having a reference point for the dialogue between stakeholders and companies is pivotal to leverage the true value of the transparency exercise for all stakeholders and society at large. It will be interesting also to see how the sector standards fuel further dialogue across industries – elevating certain issues so that they are not only a struggle for an individual company, but part of a wider set of considerations. The EU and OECD are already driving work in this direction.”
</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
And that concludes the Sector story for now. And if you want to see what the first one looks like, the <a href="https://www.globalreporting.org/standards/work-program-and-standards-review/development-of-sector-standard-oil-gas-and-coal/" target="_blank">Oil and Gas Sector Standard Exposure Draft</a> is now open for consultation (until 6th October). It’s only an 87-page document including glossary and bibliography with 22 material topics for the sector to consider, so working through it should be a piece of cake. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
What do you think about Sector Standards? Is the rationale for a whole load of time and investment in this area entirely justified? Will it add value? Will this ensure that companies report on topics they have conveniently (or unwittingly) avoided in the past? <a href="https://r1.dotmailer-surveys.com/754j59b-144lblee" target="_blank"><span style="color: blue;"><b>Have your say</b></span></a> before Sectors get locked down with the new Universal Standards. The Exposure Draft is open for comments until <b>9th September 2020</b>. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Stay tuned for loads of Sector Exposure Drafts coming your way in the not too distant future. In the meantime, don't go anywhere as I will soon be publishing the next and final post in this series on the Universal Standards and a few other changes that may not appear obvious at first glance. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Stay safe, stay well, stay optimistic!
</div>
<br />
<span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: x-small;"><span style="font-family: inherit;"><span style="text-align: justify;"><br /></span></span></span>
<span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: x-small;"><span style="font-family: inherit;"><span style="text-align: justify;">e</span>laine cohen, CSR consultant, Sustainability Reporter, HR Professional, Ice Cream Addict. Owner/Manager of <span style="color: blue; text-align: justify;"><a href="http://www.b-yond.biz/" style="color: #0066cc;" target="_blank"><b>Beyond Business Ltd</b></a></span><span style="text-align: justify;">, </span>an inspired Sustainability Strategy and Reporting firm having supported <b>107 </b></span></span><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: x-small;"><span style="font-family: inherit;"><a href="http://www.b-yond.biz/clients-reports" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;"><b>client reports</b></span></a><span style="text-align: justify;"> to date; </span><b style="text-align: justify;">author </b><span style="text-align: justify;">of </span><a href="http://www.b-yond.biz/our-books" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">three books and several chapters</span></a><span style="text-align: justify;"> on Sustainability Reporting and the Human Resources connection to CSR; frequent </span><b style="text-align: justify;">chair and speaker </b><span style="text-align: justify;">at sustainability events and </span><b style="text-align: justify;">judge</b><span style="text-align: justify;"> in several sustainability awards programs each year. Contact me via </span><a href="http://www.twitter.com/elainecohen" style="color: #0066cc; text-align: justify;" target="_blank">Twitter</a><span style="text-align: justify;"> , </span><a href="https://www.linkedin.com/in/elainecohen/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">LinkedIn</span></a><span style="text-align: justify;"> or via </span><a href="http://www.b-yond.biz/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">Beyond Business</span></a></span></span>elainehttp://www.blogger.com/profile/07433863039389159395noreply@blogger.com0tag:blogger.com,1999:blog-8008724049496903547.post-213316998068170832020-07-27T16:15:00.000+03:002020-07-27T16:15:10.538+03:00GRI Standards: Governance Galore<div style="text-align: justify;">
This is the fourth post in the exclusive read-only-on-the-CSR-Reporting-Blog unraveling of the <a href="https://www.globalreporting.org/standards/work-program-and-standards-review/review-of-gris-universal-standards/" target="_blank"><span style="color: blue;">GRI Universal Standards Exposure Draft</span></a> that is now open for public comment. At 106 pages, the draft may seriously turn lockdown into meltdown. That is, of course, unless you give the technobabble a miss and skip to the juicy nuggets. Thanks to Wes Gee for this tweet.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiunJw3rOqYDFHxMZ1Pb06kcZE2NDs1jgfG7v_N_XMP2B1uzxhcweG_O41ByF5LNMZfB7phhyphenhyphenrw2r_3ABn4ibdWgZt2qjD2OcjkQv0B6rCRK4uvgKCU0XREAQEgJnneDvS-9Dzv_XIhHF8/s1600/200725+wesley.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="288" data-original-width="594" height="193" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiunJw3rOqYDFHxMZ1Pb06kcZE2NDs1jgfG7v_N_XMP2B1uzxhcweG_O41ByF5LNMZfB7phhyphenhyphenrw2r_3ABn4ibdWgZt2qjD2OcjkQv0B6rCRK4uvgKCU0XREAQEgJnneDvS-9Dzv_XIhHF8/s400/200725+wesley.JPG" width="400" /></a></div>
<br />
Check out the first posts here:<span style="color: blue;"> <a href="http://csr-reporting.blogspot.com/2020/07/gri-standards-shape-up-or-shape-out.html" target="_blank"><span style="color: blue;">The overview</span></a>. <a href="http://csr-reporting.blogspot.com/2020/07/gri-standards-human-rights-quadrupled.html" target="_blank"><span style="color: blue;">The human rights spotlight</span></a>. <a href="http://csr-reporting.blogspot.com/2020/07/gri-standards-materiality-youve-been.html" target="_blank"><span style="color: blue;">The materiality clarity</span>.</a></span> Or dive straight into today's ton of juicy nuggets ... all about probably the part of sustainability reporting that most reporters find intensely boring...governance! How many really exciting and fun governance disclosures have you spotted in sustainability reports?<br />
<br />
(One of the most colorful and human presentations of governance disclosures I have seen recently is in the <a href="https://www.delmontepacific.com/hubfs/pdf/19_0135%20Del%20Monte%20SR2019%20spreads%20low.pdf" target="_blank"><span style="color: blue;">Del Monte Pacific 2019 Sustainability Report</span></a> - makes you think that governance might not be so boring after all!)<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg6qrAnq_pLJL5CHAc9XYq6dmcv6_TAtl8O9MViOEeVoZXSYN__psQ58SriwBfiRBUInjf_90QW1hRQ2vs7BCnPYmf0_R0dacGGz0T8NNsae9RsqxMVeVmPQDibJZZal5Dy8aMJxrlpLPY/s1600/DELMONTEPAC19+governance1.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="628" data-original-width="947" height="265" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg6qrAnq_pLJL5CHAc9XYq6dmcv6_TAtl8O9MViOEeVoZXSYN__psQ58SriwBfiRBUInjf_90QW1hRQ2vs7BCnPYmf0_R0dacGGz0T8NNsae9RsqxMVeVmPQDibJZZal5Dy8aMJxrlpLPY/s400/DELMONTEPAC19+governance1.JPG" width="400" /></a></div>
<br />
<br />
Anyhow, the thing you might unwittingly overlook if you have been a regular GRI Standards Core Level reporter, is that the new proposed In Accordance rule now includes ALL the general disclosures on governance. Currently, at Core level, all you need to do is report Disclosure 102-18 on covering governance structure and Board Committees, including those with responsibility for economic, environment and social topics. Generally, this information is reported anyway by public companies in their annual reports, so a brief reference in the sustainability report often did the trick. Not overly stretching, and not overly transparent either.<br />
<br />
The new <a href="https://www.globalreporting.org/standards/work-program-and-standards-review/review-of-gris-universal-standards/" target="_blank"><span style="color: blue;">Universal Standards Exposure Draft</span></a> changes all that. There are no less than 15 governance disclosures that organizations wishing to remain In Accordance must report, with no acceptable omissions.<br />
<br />
<ul>
<li>GOV-1 Governance structure and composition </li>
<li>GOV-2 Nomination and selection of the highest governance body</li>
<li>GOV-3 Responsibilities for sustainable development topics and delegation</li>
<li>GOV-4 Stakeholder consultation on sustainable development topics</li>
<li>GOV-5 Chair of the highest governance body</li>
<li>GOV-6 Conflicts of interest</li>
<li>GOV-7 Role of the highest governance body in setting purpose, values, and strategy</li>
<li>GOV-8 Collective knowledge of the highest governance body</li>
<li>GOV-9 Evaluation of the performance of the highest governance body</li>
<li>GOV-10 Identification and management of impacts</li>
<li>GOV-11 Role of the highest governance body in sustainability reporting</li>
<li>GOV-12 Communication of critical concerns</li>
<li>GOV-13 Remuneration policies</li>
<li>GOV-14 Process for determining remuneration</li>
<li>GOV-15 Annual total compensation ratio </li>
</ul>
<br />
<br />
All these disclosures require more than easy-to-draft one-liner responses – they almost all have several parts requiring comprehensive responses. (There is a little loophole here, that is, if you do not have something in place such as a policy or committee or process, then you can report that this does not exist, and that would meet the requirement for disclosure. The disclosure does not come with an obligation to implement new actions, but to report those that are in place. A bit of a double-edged sword, but it may provide some relief to those who do not have extensive governance structures in place, maybe suitable for smaller or privately-owned companies.) <br />
<br />
Now, although GRI is saying that this is a simplification from 22 separate disclosures in the current Standards to 15 disclosures, in practice, several have been combined, resulting in a governance section that is almost a report in itself. In my view, many of these disclosures are part of mandated corporate financial reporting, and rather superfluous to sustainability reporting.<br />
For example, <b>GOV-6 Conflicts of interest</b>:
<i>The organization shall: </i><br />
<i><b>a.</b> describe the processes for the highest governance body to ensure that conflicts of interest are avoided and managed; </i><br />
<i><b>b.</b> report whether conflicts of interest are disclosed to stakeholders, including, as a minimum, the following conflicts of interest:
<b>i</b>. Cross-board membership;<b>
ii.</b> Cross-shareholding with suppliers and other stakeholders;
<b>iii.</b> Existence of controlling shareholder;
<b>iv. </b>Related parties, their relationships, transactions, and outstanding balances. </i><br />
<br />
For a sustainability-focused stakeholder who assumes that conflicts of interest are addressed and disclosed as part of fundamental corporate governance, this is just noise. I think it’s unnecessary to burden the sustainability reporting process with this additional content.<br />
<br />
Or this one: <b>GOV-7 Role of the highest governance body in setting purpose, values, and strategy: </b><i>The organization shall: a. describe the role of the highest governance body and of senior executives in the development, approval, and updating of the organization’s purpose, value or mission statements, strategies, policies, and goals related to sustainable development topics.</i><br />
<i><br /></i>
Sorry, but, frankly, who cares? Do we really need a load of unnecessary verbiage saying the Exec Team had a discussion and then the Board had a discussion and then they all had a discussion and then they agreed on the purpose, values and strategy? Since Disclosure GOV-11 covers the role of the highest governance body in sustainability reporting in which the purpose, values and strategy are disclosed, what’s the point of another disclosure adding who said what and who agreed?<br />
<br />
GOV 13 and GOV 14 require detailed descriptions of remuneration processes for the Board – all this is covered in other corporate governance reporting. I think it’s irrelevant here.<br />
<br />
Similarly, what does it help us to know “<i>the ratio of the annual total compensation for the organization’s highest-paid individual in each country of significant operations to the median annual total compensation for all employees (excluding the highest-paid individual) in the same country</i>” (GOV-15). It’s all very nice for those who want to cap CEO compensation (and there is some merit in this thinking) but frankly, this is not about sustainability impacts and not even really about ethical conduct. It’s about capital market forces that enable or even encourage these types of compensation processes. I would leave this to other corporate reporting platforms and leave it out of the sustainable development dialogue at this level of detail.<br />
<br />
Personally, I suggest slimming down the mandated governance content to three or four disclosures related to Board accountability for sustainability topics that are not typically reported anywhere else.<br />
<br />
I covered this in my conversation with GRI experts, <a href="https://www.globalreporting.org/information/about-gri/governance-bodies/secretariat/Pages/reporting-standards.aspx" target="_blank">Bastian Buck</a>, Chief of Standards and <a href="https://www.linkedin.com/in/lauraespinach/en" target="_blank">Laura Espinach</a>, Head of Technical Development.<br />
<br />
<span style="color: red;"><b>ME: </b></span><b>Does this now significantly increase the reporting requirement for companies who reported Core to date? Is this a deliberate new focus on governance? Won’t this make reports longer 😟?</b><br />
<b><span style="color: red;">BASTIAN:</span></b> “When we first introduced the governance disclosures, in G4, I think we were ahead of the curve. At the time virtually no company was disclosing this information. But today, many already disclose more than what’s required to be In Accordance at Core level. If you look at all the data providers that send ESG queries to companies and at the regulatory domain where governance disclosure has become a lot more comprehensive, you see a clear trend of investor interest and demand towards more structured governance disclosure in both the financial and ESG reporting domains. As this became a more commonplace expectation, so companies went beyond the minimum disclosure. The GRI Global Sustainability Standards Board (GSSB) often wrestled with the question of whether this is too much – but input we received confirmed that this is important from a governance best practice perspective and interestingly enough, none of the other standards in the ESG space features these disclosures.
It still holds true that you can reference other reporting you already publish – as long as this adequately fulfills the requirement of the GRI governance disclosures.”<br />
<br />
<span style="color: red;"><b>ME:</b></span> <b>As GRI Standards are supposed to apply for all organizations, including private companies, SMEs, nonprofits etc., is it reasonable to expect that all organizations will report on all these governance disclosures? Some of these disclosures will be extremely awkward for all but the largest corporations - is it GRI’s intention to reduce the number of companies that can report In Accordance?</b><br />
<span style="color: red;"><b>BASTIAN:</b></span> “Let’s be clear that the requirement to disclose does not mean you have to put in place mechanisms that do not currently exist. It’s perfectly acceptable to disclose the absence of certain governance aspects. It’s understandable that certain organizations may not have all these governance processes in place that are required for large companies.”<br />
<br />
<b><span style="color: red;">ME:</span></b> <b>Another point: I note that many continue to include governance as a material topic. But, as the materiality definition has changed to focus on impacts of the organization, does it follow that governance should not be included as an IMPACT but part of the organizational approach and due process? Would a company including governance as a material topic then not be In Accordance with the Standards? </b><br />
<span style="color: red;"><b>LAURA:</b></span> “What is important is that in the GRI Standards as proposed, governance is relevant to all organizations and all will therefore have to report all governance disclosures. Governance cannot be subject to a materiality assessment. But there is nothing that prevents an organization identifying governance as material (in addition to reporting the disclosures in GRI 102) as long as they can identify the impacts of governance and can justify the impacts in the context of the GRI standards.”<br />
<br />
Let’s do a little poll: please read the question below and select the response that most reflects your view:<br />
<br />
<b><span style="color: #38761d;">Question:</span></b> Do you think several of the governance disclosures in the Exposure Draft are unnecessarily detailed and nitpickingish and do little to enhance our understanding of an organization’s commitment or capability to manage its impacts?<br />
<b><span style="color: #38761d;"><br /></span></b>
<b><span style="color: #38761d;">Answers:</span><span style="color: #274e13;"> </span></b><br />
<br />
<ul>
<li>Yes </li>
<li>Affirmative </li>
<li>Definitely </li>
<li>Absolutely </li>
</ul>
<br />
<br />
Good, glad we got that sorted. Prepare for governance galore in the next iteration of the GRI Standards. If you like this, or do not like it, <a href="https://r1.dotmailer-surveys.com/754j59b-144lblee" target="_blank"><span style="color: blue;"><b>have your say</b></span></a> before it gets locked down in the publication of the new Universal Standards sometime in the near future. The Exposure Draft is open for comments until <b>9th September 2020</b>.<br />
<br />
Stay tuned for the next post in this series which is all about the rebirth of Sector Standards. YAY!<br />
<br />
Stay safe, stay well, stay optimistic! And eat lots of ice cream 🍦🍧🍨🍦 </div>
<div style="text-align: justify;">
<br /></div>
<br />
<br />
<span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: x-small;"><span style="font-family: inherit;"><span style="text-align: justify;">e</span>laine cohen, CSR consultant, Sustainability Reporter, HR Professional, Ice Cream Addict. Owner/Manager of <span style="color: blue; text-align: justify;"><a href="http://www.b-yond.biz/" style="color: #0066cc;" target="_blank"><b>Beyond Business Ltd</b></a></span><span style="text-align: justify;">, </span>an inspired Sustainability Strategy and Reporting firm having supported <b>107 </b></span></span><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: x-small;"><span style="font-family: inherit;"><a href="http://www.b-yond.biz/clients-reports" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;"><b>client reports</b></span></a><span style="text-align: justify;"> to date; </span><b style="text-align: justify;">author </b><span style="text-align: justify;">of </span><a href="http://www.b-yond.biz/our-books" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">three books and several chapters</span></a><span style="text-align: justify;"> on Sustainability Reporting and the Human Resources connection to CSR; frequent </span><b style="text-align: justify;">chair and speaker </b><span style="text-align: justify;">at sustainability events and </span><b style="text-align: justify;">judge</b><span style="text-align: justify;"> in several sustainability awards programs each year. Contact me via </span><a href="http://www.twitter.com/elainecohen" style="color: #0066cc; text-align: justify;" target="_blank">Twitter</a><span style="text-align: justify;"> , </span><a href="https://www.linkedin.com/in/elainecohen/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">LinkedIn</span></a><span style="text-align: justify;"> or via </span><a href="http://www.b-yond.biz/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">Beyond Business</span></a></span></span>elainehttp://www.blogger.com/profile/07433863039389159395noreply@blogger.com0tag:blogger.com,1999:blog-8008724049496903547.post-27932923206829060422020-07-24T19:47:00.000+03:002020-07-24T19:47:23.264+03:00GRI Standards: Materiality: You’ve Been Doing It All Wrong<span style="text-align: justify;">There you have it. The infamous materiality matrix has disappeared from the GRI Standards (in the new </span><a href="https://www.globalreporting.org/standards/work-program-and-standards-review/review-of-gris-universal-standards/" style="text-align: justify;" target="_blank"><span style="color: blue;">Exposure Draft of the Universal Standards</span></a><span style="text-align: justify;">). Haha. About time. I have always maintained that the matrix and the plotting of dots was nothing but a distraction. (Check out my post from 2014, “</span><a href="http://csr-reporting.blogspot.com/2014/12/why-materiality-matrix-is-useless.html" style="text-align: justify;" target="_blank"><span style="color: blue;">Why the materiality matrix is useless</span></a><span style="text-align: justify;">”, before GRI Standards became G4, and another from 2016, “</span><a href="http://csr-reporting.blogspot.com/2016/11/the-missing-piece-of-materiality-puzzle.html" style="text-align: justify;" target="_blank"><span style="color: blue;">The missing piece of the materiality puzzle</span></a><span style="text-align: justify;">”.) </span><br />
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Is this a total U-turn by GRI or is it an attempt to realign reporters with what’s really important, that is, defining the material topics, rather than developing creative visualizations of arbitrarily prioritized dots? I am reminded of a quote by the late Stephen R. Covey, the Seven Habits creator, <a href="https://www.goodreads.com/quotes/194341-if-the-ladder-is-not-leaning-against-the-right-wall" target="_blank">who said</a>: “If the ladder is not leaning against the right wall, every step we take just gets us to the wrong place faster.” </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
And so it has been with materiality matrices, where most companies have taken to plotting material topics on two axes – importance to stakeholders and importance to the business, and prioritizing the topics that scored high on both axes. This was never the intention of GRI and it’s rather odd actually that the practice developed in this way. The intention of GRI Standards was that (1) companies should list the priority material topics (2) topics are most material if they score high on EITHER axis, not necessarily on both of them and most importantly, (3) that the horizontal axis represents the significance of the impact OF the business, not ON the business. Such a lot of companies reporting for such a long time on topics that were all prioritized against the wrong wall. How weird is that? </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
I asked the GRI experts, <a href="https://www.globalreporting.org/information/about-gri/governance-bodies/secretariat/Pages/reporting-standards.aspx" target="_blank">Bastian Buck</a>, Chief of Standards and <a href="https://www.linkedin.com/in/lauraespinach/en" target="_blank">Laura Espinach</a>, Head of Technical Development, about this. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<b><span style="color: red;">ME:</span> What are companies going to do now with all their materiality matrices? Many have invested loads of time and money perfecting the dots. Has this all been a waste of time? </b></div>
<div style="text-align: justify;">
<b><span style="color: red;">LAURA: </span></b> “Let’s be clear that the use of the matrix was never a requirement. It became the practice that companies were including the matrix. We have now removed it <u>first and foremost </u>because the definition of material topics has changed. This also helps us address issues of how the matrix was applied in practice, with companies prioritizing topics that ranked high on BOTH axes, even though GRI Standards say that topics are material if they score high on one dimension. Will companies continue to use the matrix? Well, we don’t know. They can still choose to display the selection of material topics visually. What’s important is that if they opt to use a matrix, they must include the topics as required in the new GRI 103 Standard.” </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<b><span style="color: red;">ME: </span>Is the expectation that companies will now redo all their materiality assessments in order to align with the new definition of materiality? </b></div>
<div style="text-align: justify;">
<b><span style="color: red;">LAURA:</span></b> “The answer is no, if they have been following the materiality principle as intended, that is, based on significant impact. That’s still the case. What’s different is that we recommend the approach to prioritizing impacts based on severity and likelihood but this method is not specifically required and organizations can select their own method and explain it. This may not therefore result in many changes to the material topics. But, if the company did not use a method that is aligned with the intention of expressing impacts through the material topics, then the new definition may require some changes.” </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<b><span style="color: red;">ME:</span> But what about all this new guidance on assessing the scale, scope and likelihood of topics? Wouldn’t it be better if GRI had provided some more specific guidance here? It’s still rather vague</b>.</div>
<div style="text-align: justify;">
<b><span style="color: red;">BASTIAN:</span></b> “It’s important to note that the identification and assessment of material topics is not done for reporting purposes. The report reflects the impacts and actions of the companies throughout their activities. We offer options to use different methodologies and dimensions to assess material topics, but actually, GRI is not the tool that determines this. GRI is the disclosure tool, and we require companies to report their approach and methodology. The Standards do not prescribe the methodology.” </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
I am pleased to see the revised definition of materiality in the proposed Universal Standards and new guidance – minus matrix. Material topics are redefined as topics "that reflect the organization’s most significant impacts on the economy, environment, and people, including impacts on human rights." This is clear enough. (See my post entitled <span style="background-color: white; color: blue;"><a href="http://csr-reporting.blogspot.com/2020/07/gri-standards-human-rights-quadrupled.html" target="_blank"><span style="color: blue;">GRI Standards: Human Rights: Quadrupled</span></a></span> for a discussion on how human rights snuck into that definition). </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
The proposed new standard GRI 103: Material Topics includes guidance for identifying material topics and related disclosures. There are three required disclosures in the new GRI 103 (all mandatory for reporters wishing to claim “In Accordance”): </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<span style="color: red; font-weight: bold;">Disclosure 1: </span>(MT-1 Identification of material topics and related impacts) Includes the way an organization has identified its material topics and prioritized them, as well requiring disclosure of the stakeholders whose views informed the identification of material topics. Also, organizations should point out changes in materiality from the prior reporting period.</div>
<div style="text-align: justify;">
<span style="color: red; font-weight: bold;">Disclosure 2: </span>(MT-2 Material topics and related impacts) Includes listing the material topics, describing the impacts related to each topic and whether the organization is involved in negative impacts directly through its activities or as a result of its business relationships. </div>
<div style="text-align: justify;">
<span style="color: red; font-weight: bold;">Disclosure 3: </span>(MT-3 Management of material topics and related impacts)<span style="color: red; font-weight: bold;"> </span>Replaces and extends the scope of the Management Approach Disclosures of the former GRI 103 Standard. It requires for each material topic a whole load of information: </div>
<div style="text-align: justify;">
<ul>
<li>Policies or commitments </li>
<li>Actions taken to manage the topic and its related impacts </li>
<li>Actions taken to prevent or mitigate <u>potential</u> negative impacts, or address <u>actual</u> negative impacts through remediation </li>
<li>Effectiveness of actions taken </li>
<li>Process for tracking the effectiveness of actions taken including goals and targets, evidence of effectiveness and lessons learned </li>
<li>Ways stakeholder engagement has informed the actions taken and if the actions have been effective</li>
<li>Reason for not addressing a material topic if the organization does not do anything at present and plans to manage it in the future if there are any. </li>
</ul>
</div>
<div style="text-align: justify;">
There are a few things worth noting here. Most of these requirements were already part of GRI Standards, but some bits that stand out are:<br />
<br /></div>
<div style="text-align: justify;">
<span style="color: red;"><b>First:</b></span> Change materially. Do you find yourself scrambling around to see what companies said were material last time? Ever since the G4 Framework, a disclosure requirement was for companies to report <u>significant</u> changes in material topics from previous reporting periods. Although, honestly, I have noticed only a few companies actually including explicit information about what changed. So you had to do a bit of scrambling around. The new requirement in MT-1 requires organizations to report changes in the material topics compared to the previous reporting period. That is, <u>all</u> changes. I suspect this won’t be such a burden as most companies revise their material topics every few years, and even then, not much actually changes. But it's worth reminding organizations of this requirement, as no report is standalone, it's always part of a disclosure continuum and changes in materiality by definition are not incidental. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<b><span style="color: red;">Second: </span></b>Get descriptive. In addition to the requirement to report how the organization has <u>identified</u> actual and potential, negative and positive material impacts and how it has <u>prioritized</u> them, the new requirement is to <u>describe </u>the impacts for each material topic. Currently the requirement is to report why the topic is material - which can be a bit repetitive as most companies are fairly generic about why child labor is not good or why diversity is fantastic. The move to describing impacts could lead to greater specificity in what material actually means in terms of how the organization affects our lives.<br />
<br />
<span style="color: red;"><b>Third:</b> </span>Preventive precaution. The requirement to state how you uphold the precautionary principle (currently General Disclosure 102-11), which most reporters didn’t really understand anyway, has now been changed. The proposed Standard (RBC-2) asks companies to state whether the precautionary principle is applied as part of its policy commitments. The precautionary principle is seen as one form of prevention of negative impacts, which applies in specific situations (where there is sufficient reason to expect serious or irreversible damage even though there is no complete scientific understanding or evidence of that). So maybe it's time to revisit how you talk about this and update your policies to bring precaution into the frame.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<span style="color: red;"><b>Fourth: </b></span>Get authentic. You can not report any of the above on any material topic as long as you explain why you are not doing so. Hah! I don't recall seeing many reports saying we have loads of material impacts but we are not doing anything about them. But, the “report or explain” principle has been fairly effective in some jurisdictions, e.g. Denmark, in catalyzing action, so it worth reminding organizations of this requirement, which was included in current and prior GRI iterations. It's a recognition that not every company has all the answers all the time, and that it is better to disclose that this is the case than simply omitting reference to what might be an important impact of the company. It's rather uncomfortable to do this, and I suspect it's easier to conveniently deprioritize an impact which you are not prepared to deal with. The optimistic view is that companies will realize there's value in telling it like it is and will use this as a way to either report more authentically or get a meaningful approach and an action plan in place before their report is published.<br />
<br />
<br /></div>
<div style="text-align: justify;">
In general, while there is still a lack of more explicit methodology for defining materiality, I am confident the new materiality definition will help improve the quality and relevance of disclosure. If you agree, or disagree, <a href="https://r1.dotmailer-surveys.com/754j59b-144lblee" target="_blank"><span style="color: blue;">have your say</span></a> before it gets locked down in the publication of the new Universal Standards sometime in the near future. The Exposure Draft is open for comments until <b>9th September 2020</b>.
</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Stay tuned for the next post in this series which focuses on the changes in disclosures on governance.
</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Stay safe, stay well, stay optimistic! </div>
<span style="background-color: white; font-size: x-small;"><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; text-align: left;"><span style="font-family: inherit;"><span style="text-align: justify;"><br /></span></span></span></span><span style="background-color: white; font-size: x-small;"><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; text-align: left;"><span style="font-family: inherit;"><span style="text-align: justify;"><br /></span></span></span></span>
<span style="background-color: white; font-size: x-small;"><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; text-align: left;"><span style="font-family: inherit;"><span style="text-align: justify;">e</span>laine cohen, CSR consultant, Sustainability Reporter, HR Professional, Ice Cream Addict. Owner/Manager of <span style="color: blue; text-align: justify;"><a href="http://www.b-yond.biz/" style="color: #0066cc;" target="_blank"><b>Beyond Business Ltd</b></a></span><span style="text-align: justify;">, </span>an inspired Sustainability Strategy and Reporting firm having supported <b>107 </b></span></span><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; text-align: left;"><span style="font-family: inherit;"><a href="http://www.b-yond.biz/clients-reports" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;"><b>client reports</b></span></a><span style="text-align: justify;"> to date; </span><b style="text-align: justify;">author </b><span style="text-align: justify;">of </span><a href="http://www.b-yond.biz/our-books" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">three books and several chapters</span></a><span style="text-align: justify;"> on Sustainability Reporting and the Human Resources connection to CSR; frequent </span><b style="text-align: justify;">chair and speaker </b><span style="text-align: justify;">at sustainability events and </span><b style="text-align: justify;">judge</b><span style="text-align: justify;"> in several sustainability awards programs each year. Contact me via </span><a href="http://www.twitter.com/elainecohen" style="color: #0066cc; text-align: justify;" target="_blank">Twitter</a><span style="text-align: justify;"> , </span><a href="https://www.linkedin.com/in/elainecohen/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">LinkedIn</span></a><span style="text-align: justify;"> or via </span><a href="http://www.b-yond.biz/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">Beyond Business</span></a></span></span></span><br />
<br style="text-align: justify;" />elainehttp://www.blogger.com/profile/07433863039389159395noreply@blogger.com0tag:blogger.com,1999:blog-8008724049496903547.post-44492881895017361972020-07-21T20:48:00.000+03:002020-07-21T20:48:02.608+03:00GRI Standards: Human Rights - Quadrupled<div style="text-align: justify;">
It can’t help but strike you when you review <a href="https://www.globalreporting.org/standards/work-program-and-standards-review/review-of-gris-universal-standards/" target="_blank"><span style="color: blue;">GRI’s Exposure Draft of the new Universal Standards</span></a> (See my first post on this topic<span style="background-color: white;">: <a href="http://csr-reporting.blogspot.com/2020/07/gri-standards-shape-up-or-shape-out.html" target="_blank"><span style="color: blue;">GRI Standards: Shape Up or Shape Out</span></a>)</span> that human rights is just everywhere. A quick PDF search shows that in the new proposed revised Standards 101, 102 and 103, the term human rights appears more than 90 times, whereas in the 2016 version of these standards, the term appears less than 25 times. That’s an almost quadrupled helping of human rights in these new Standards. Now, if anyone offers me quadruple ice cream, I say: Yes please! But a disclosure Standard that’s so totally human rights flavored, well, that might just give you a little bit of indigestion.<br />
<br /></div>
<div style="text-align: justify;">
If you read the <a href="https://www.globalreporting.org/standards/media/2604/universal-explanatory-memorandum.pdf" target="_blank"><span style="color: blue;">Explanatory Memorandum</span></a> that GRI published to accompany the Exposure Draft, you will have noticed that it started out with the sentence: “<i>The primary objective in reviewing the Universal Standards is to address the recommendations from the GRI Technical Committee on Human Rights Disclosure.</i>” Human rights even snuck into the new definition of materiality: <i>“a topic that reflects the organization’s most significant impacts on the economy, environment, and people, including impacts on human rights”</i>.<br />
<br /></div>
<div style="text-align: justify;">
A quick glance at the <a href="https://www.corporatebenchmark.org/sites/default/files/2019-11/CHRB2019KeyFindingsReport.pdf" target="_blank"><span style="color: blue;">2019 Corporate Human Rights Benchmark</span></a> shows that “More than half of the 200 benchmarked companies score less than 20% and only 1 in 10 companies score more than 50%. These extremely low scores reveal poor levels of implementation of the UNGPs by the vast majority of companies assessed.” So there is clearly more work to be done.<br />
<br /></div>
<div style="text-align: justify;">
<div class="separator" style="clear: both; text-align: center;">
<img border="0" data-original-height="391" data-original-width="847" height="183" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhLmoyhAH-97Niditsj5lXdeZ3ORJCq64iQMgbPnYguY4rgojySYlZe5qJztlPB_TH5JTu4PRQoDEFEZRFLFOEJadUY6EhrS53pye9ardomtZHfhkUFkMF0WH1GBg76gbTvnn1rAeIeAww/s400/CHRB+scores.JPG" width="400" /></div>
<br /></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
I asked <a href="https://www.globalreporting.org/information/about-gri/governance-bodies/secretariat/Pages/reporting-standards.aspx" target="_blank">Bastian Buck</a>, GRI Standards Guru-in-Chief and <a href="https://www.linkedin.com/in/lauraespinach/en" target="_blank">Laura Espinach</a>, GRI Standards Technical Development Guru-ess-in-Chief, about the human rights changes in the Exposure Draft. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<b><span style="color: red;">ME:</span></b> <b>Why the need to explicitly add human rights in this definition? Does impacts on people not automatically assume human rights? </b></div>
<div style="text-align: justify;">
<span style="color: red;"><b>BASTIAN:</b></span> “Even ten years after the publication of the UN Guiding Principles on Business and Human Rights, we are seeing that is still deeply uncomfortable for companies to disclose in this area.” </div>
<div style="text-align: justify;">
<b><span style="color: red;">LAURA: </span></b>“Impacts on people should automatically assume human rights, but this has often been underreported by organizations. One of the main challenges the Human Rights Technical Committee grappled with as they were making these revisions was how to drive more reporting on human rights. They discussed some of the reasons for lack of reporting, for example, many companies do not think of their activities as having human rights impacts either because they don’t know what a human rights impact is or because they only think of human rights impacts as gross violations or issues that are life threatening. There has also been a historic masking of human rights within the economic, environmental and social framing of disclosure, so human rights issues were often overlooked. In fact, this is the reason we have moved from referring to social impacts to referring to impacts on people.” </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<b><span style="color: red;">ME:</span></b> <b>Does this all imply that human rights are more material than everything else?</b> </div>
<div style="text-align: justify;">
<span style="color: red;"><b>LAURA:</b> </span>“The normative expectation in the UN Guiding Principles is quite unique. Human rights is one of the few areas that has been elaborated in this high level of detail about companies’ expectations and responsibilities, so we thought it was important to highlight that in the definition of material topics. This doesn’t mean that human rights are more material than anything else. We are trying to signal, of the impacts companies can have on people, human rights are the most acute / important ones. While it should be automatically assumed that impacts on people include human rights, this is not generally understood. By signaling this we hope to drive more reporting against the normative expectation that exists.” </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
The Glossary in the Exposure Draft includes a definition of internationally recognized human rights, which is an addition to the current glossary.
“These rights are understood, at a minimum, to include the rights set out in the International Bill of Human Rights (consisting of the Universal Declaration of Human Rights and the main instruments through which it has been codified: the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights), coupled with the principles concerning fundamental rights in the eight International Labour Organization (ILO) core conventions as set out in the Declaration on Fundamental Principles and Rights at Work.”<br />
<br /></div>
<div style="text-align: justify;">
I think many companies have become familiar with reporting labor rights (based on the ILO core conventions), although not necessarily doing so under the banner of human rights. The same, I think, applies to supply chain standards – companies report practices on Supplier Codes of Conduct, or ethical procurement etc., without necessarily referencing human rights. There are some areas of human rights that I believe have not benefited from broad disclosure, such as impacts on indigenous peoples, land rights etc. And of course, the International Convention on the Human Right to Ice Cream has been virtually ignored.<br />
<br /></div>
<div style="text-align: justify;">
But by making everything about human rights, there’s a danger that we focus on the rights and not on the people – a bit like saying, the operation succeeded but the patient died. There just might be cases where the rights were upheld but the people were not. For example, non-discrimination. Companies declare they are non-discriminatory and list all the ways in which they are upholding equal opportunity for all. Then you look at their Board of Directors and Executive Teams, and they are predominantly white, male and middle aged. Somewhere in the system, therefore, discrimination is present, even though it might be tough to admit. In promoting human rights disclosures, we must be careful not to forget the people - which means that disclosures need to be underpinned with relevant practice.<br />
<br />
I shared this concern with the GRI Standards experts, and Laura responded as follows:<br />
<span style="color: red;"><b>LAURA:</b></span> "Human rights is all about outcomes for people. I think the issue in the example may have more to do with how these issues are dealt with in practice, than with how this is framed in the Exposure Draft. The overall framing in the Exposure Draft is ‘impacts on people’ which include human rights-related impacts. And the changes to the definition of stakeholder also aim to focus reporting on individuals or groups that are or could be affected."<br />
<br />
(Note here that the revised definition of stakeholder is: "individual or group that has an interest that is, or could be, affected by the organization’s activities and decisions". This is different from the previous definition which reflected a dual interaction - referring to stakeholders as being both <b>affected by</b> the organization and <b>affecting</b> the organization. The new definition aligns more closely with the focus on impacts of the organization on stakeholders, people, environment and society.) </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Nonetheless, the intention of GRI is clear and it’s helpful. I believe it will drive greater awareness, action and reporting. Now is the time to start assessing your organization’s impacts on human rights and the people who have them, if you haven’t already done so. If you think this is a great new direction, or excessive in emphasis, <span style="color: blue;"><a href="https://r1.dotmailer-surveys.com/754j59b-144lblee" target="_blank"><span style="color: blue;">have your say</span></a> </span>before it gets locked down in the publication of the new Universal Standards sometime in the near future. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
The Exposure Draft is open for comments until <b>9th September 2020</b>.
The next post in this series will cover the new definition of materiality and what that means for the infamous materiality matrix.<br />
<br />
Stay safe, stay well, stay optimistic!</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<br /></div>
<br />
<br />
<span style="background-color: white; font-size: x-small;"><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif;"><span style="font-family: inherit;"><span style="text-align: justify;">e</span>laine cohen, CSR consultant, Sustainability Reporter, HR Professional, Ice Cream Addict. Owner/Manager of <span style="color: blue; text-align: justify;"><a href="http://www.b-yond.biz/" style="color: #0066cc;" target="_blank"><b>Beyond Business Ltd</b></a></span><span style="text-align: justify;">, </span>an inspired Sustainability Strategy and Reporting firm having supported <b>107 </b></span></span><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif;"><span style="font-family: inherit;"><a href="http://www.b-yond.biz/clients-reports" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;"><b>client reports</b></span></a><span style="text-align: justify;"> to date; </span><b style="text-align: justify;">author </b><span style="text-align: justify;">of </span><a href="http://www.b-yond.biz/our-books" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">three books and several chapters</span></a><span style="text-align: justify;"> on Sustainability Reporting and the Human Resources connection to CSR; frequent </span><b style="text-align: justify;">chair and speaker </b><span style="text-align: justify;">at sustainability events and </span><b style="text-align: justify;">judge</b><span style="text-align: justify;"> in several sustainability awards programs each year. Contact me via </span><a href="http://www.twitter.com/elainecohen" style="color: #0066cc; text-align: justify;" target="_blank">Twitter</a><span style="text-align: justify;"> , </span><a href="https://www.linkedin.com/in/elainecohen/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">LinkedIn</span></a><span style="text-align: justify;"> or via </span><a href="http://www.b-yond.biz/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">Beyond Business</span></a></span></span></span><br />
<br style="text-align: justify;" />
<br />
<br />elainehttp://www.blogger.com/profile/07433863039389159395noreply@blogger.com0tag:blogger.com,1999:blog-8008724049496903547.post-72972437964050613592020-07-20T14:20:00.000+03:002020-07-20T14:20:25.585+03:00GRI Standards: Shape Up or Shape Out<div style="text-align: justify;">
The <a href="https://www.globalreporting.org/standards/work-program-and-standards-review/review-of-gris-universal-standards/" target="_blank"><span style="color: blue;">Exposure Draft of the new GRI Universal Standards</span></a> looks quite innocuous at first glance. Seems to put things in order and chop out a bunch of irrelevant/irritating stuff. Puts them back together again in a fairly logical way. At first glance, it seems super-duper. Then you read the fine print and consider the changes that reporters will face and wonder if they are a help or a hindrance, and in some cases, why on earth they were even considered.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgp1W6bHjXmL-M9AMCklNM2oCovzeBIbJ5-xQkUOaJfF8cUW_dewOscaPly5CHg2UXjhVmVuLelJSlqfO746VEo5KaZWUKByYGlb84uoC9_3qA020iDYoYYO0ePWYdXK_RvpVyY4Cb2Gb0/s1600/EXPDRAFT+2020.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="847" data-original-width="563" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgp1W6bHjXmL-M9AMCklNM2oCovzeBIbJ5-xQkUOaJfF8cUW_dewOscaPly5CHg2UXjhVmVuLelJSlqfO746VEo5KaZWUKByYGlb84uoC9_3qA020iDYoYYO0ePWYdXK_RvpVyY4Cb2Gb0/s400/EXPDRAFT+2020.JPG" width="265" /></a></div>
<br /></div>
<div style="text-align: justify;">
I was fortunate to be able to chat about the Universal Standards revision with long time architect of GRI Standards, and occasional sparring partner, <a href="https://www.globalreporting.org/information/about-gri/governance-bodies/secretariat/Pages/reporting-standards.aspx" target="_blank">Bastian Buck</a>, Chief of Standards, probably the most knowledgeable person on the planet on the topic of sustainability reporting standards, and a most patient and attentive responder to all of my niggly questions and observations, and someone I always tremendously respect. Joining us was <a href="https://www.linkedin.com/in/lauraespinach/en" target="_blank">Laura Espinach</a>, GRI’s Head of Technical Development, an experienced and accomplished GRI specialist who has been instrumental in standards revisions for over a decade and specifically in guiding the current proposed Universal Standards revision. Both took on the call of responding to 5 pages of questions and observations I had prepared for them on the new revisions. </div>
<div style="text-align: justify;">
In a series of posts, I will be sharing their insights and my thoughts about the aspects of the revisions that seem to me to be the most meaningful. This is by no means an exhaustive review. I have been a little selective. As usual, my purpose is to help people (including myself) understand the GRI technobabble (which has become a little less techno over the years, even though there’s still a lot of babble), and also to encourage you to navigate the changes and provide your input to the Exposure Draft through the formal GRI survey. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
But first: the cheat sheet. What’s changed? </div>
<div style="text-align: justify;">
Here’s a quick summary of the proposals: </div>
<div style="text-align: justify;">
</div>
<ul>
<li style="text-align: justify;"><b>New alignment of three Universal Standards:</b> 101, 102 and 103 where: </li>
<li><b>101:</b> contains information about how to use the GRI Standards </li>
<li><b>102:</b> contains disclosures about the reporting organization and </li>
<li><b>103:</b> contains guidance and disclosures relating to material topics (and supplemented by Sector Standards and Topic Specific Standards, where applicable). It’s sort of a revised, expanded Management Approach Disclosure standard.</li>
<li style="text-align: justify;"><b>In Accordance options Core and Comprehensive have been shelved.</b> Now it’s In Accordance only with an option to reference the Standards if you can’t go the Full Monty. </li>
<li style="text-align: justify;"><b>Human Rights have been elevated</b> to become omnipresent in every part of the Standard, including in the definition of materiality. This is to compensate for the underreporting of human rights over the years, as companies have sidestepped key human rights disclosures for different reasons. </li>
<li style="text-align: justify;"><b>Materiality definition has been revised</b> to re-emphasize the focus on impacts of the business on economies, environment and people – making it clearer that reporting is not about what’s affecting the business but rather what or whom the business affects. Oops! Get ready to revise that materiality matrix. Or even ditch it. </li>
<li style="text-align: justify;"><b>Governance disclosures have been revised</b> and a full set of sustainability-related governance disclosures have become part of the mandatory requirements for compliance with the In Accordance option. For those companies who have not reported governance extensively, or who have referenced Annual Reports (often misleadingly, as the Annual Reports do not generally contain the specific aspects of governance important for sustainability reporting), this will require companies to buckle down and publish more relevant information on governance. </li>
<li style="text-align: justify;"><b>Sector Standards are now mandatory</b> for In Accordance disclosures, even though none of them yet exist. But, as they are developed, companies in the relevant sectors will be required to use them for their reporting to be In Accordance. </li>
</ul>
<span style="text-align: justify;">And some very specific changes you might miss if you speed-read the new proposals. </span><br />
<div style="text-align: justify;">
</div>
<ul>
<li style="text-align: justify;"><b>Alignment of reporting timelines</b> is a new proposal (guidance, not required to be In Accordance), whereby companies are asked to align the sustainability reporting period with that of the annual report. Hmph. Nothing more useful than treating apples and oranges in exactly the same way. </li>
<li style="text-align: justify;"><b>CEO Statement of Use</b> is a new requirement, asking the CEO (officially: the highest governance body or the most senior executive) to publicly confirm that the GRI Standards have been applied correctly. Seriously? I thought that’s what assurers were paid for.
</li>
<li style="text-align: justify;"><b>Contact Point</b> is now not contactable. The requirement to list a contact point for queries (currently General Disclosure 102-53) has been removed. Apparently, no one felt it was important. Clearly one of the main tools for stakeholder dialogue does not need to identify how to reach the people to dialogue with. </li>
</ul>
<span style="text-align: justify;">And in addition there are some revisions to other existing disclosures and some tightening up of the reporting principles etc. </span><br />
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
All in all, quite a big job, meaning that when these new Universal Standards are approved and published, and enter into force (I guess that will be in 2022 - on average the transition period for GRI Standards revisions is 2 years), reporters will have a much reduced use for the copy-paste button. (Don’t you wish all keyboards had one of those? Specially for Sustainability Reports.)<br />
<br />
But, before we delve into the changes in detail (in a series of subsequent posts), I wanted to share the views of the experts on the revision of the In Accordance rules. To remind you, in earlier GRI iterations, there was the A, B,C system, where A was more extensive disclosure and C covered the basics. A-level reporters puffed up their chests and issued glorious Press Releases while C-level reporters were relieved they were able to issue a Press Release at all. The misleading nature of this system led GRI to adopt the Core and Comprehensive differentiation with G4, which was actually very similar. The tiered system has not proven useful, as transparency for the sake of transparency was not adding value. Transparency must be relevant, which in GRI jargon is about the focus on material topics.<br />
<br />
The new In Accordance framework requires the following:<br />
<ul>
<li><b>Applying the Reporting Principles</b> (no need for proof of this – the report itself should be proof) </li>
<li><b>Reporting ALL the General Disclosures in Standard 102</b> (same as current but now there are more – specifically in the area of Governance)</li>
<li><b>Identifying and listing material topics </b>(using available Sector Standards) and reporting GRI 103 which is all about materiality (similar to the current Management Approach Disclosures)</li>
<li><b>Reporting appropriate disclosures from the GRI Topic Standards</b> that correspond to each the material topic – the operative word here being “appropriate”. Currently Core requires minimum of one indicator and Comprehensive requires all. With the new definition, companies must select the indicators that are relevant and report those. For example, no point in selecting the hazardous waste indicator if you do not generate any hazardous waste. Duh. But, if all the indicators are relevant for a particular material topic, then you cannot just select the easiest one to report as you might have done with the one-per-topic rule in the current Core option. As with the current system, if GRI does not have a ready-made indicator, you can make one yourself. Or draw on other existing standards and reporting guidelines </li>
</ul>
I asked guru Bastian about the new In Accordance rules:<br />
<br />
<b><span style="color: red;">ME:</span></b> <b>With the removal of the Core and Comprehensive “In Accordance” options, how can companies signal that they have been “more transparent” than other companies? Is this not seen as important? </b><br />
<b><span style="color: red;">BASTIAN:</span></b> “I think there is a historical perspective to the decision to remove Core and Comprehensive. We have this history of trying to take everyone and everything with us as we move forward, and there was always a tiered system. But eventually we knew that we would have to consider having a clear threshold, and now is the right time to do that. First, this aligns with the approach of standards such as the <a href="https://www.ifrs.org/" target="_blank"><span style="color: blue;">IFRS</span></a> and many others. Either you are or you are not. Reporters need to make a clear commitment to stakeholders on where they stand. Second, it was confusing. In many cases, companies published a Core report, but reported far beyond the minimum Core requirements - by declaring Core, they were not setting an accurate expectation for their report.”<br />
<br />
<b><span style="color: red;">ME:</span> That sounds fine, but what about omissions. You can still be In Accordance while not reporting performance and simply stating omissions. How will that work?</b><br />
<b><span style="color: red;">BASTIAN:</span></b> “We have revised the acceptable language for noting omissions and how to include them in the disclosure. Some degree of omission is always possible – it’s far better to say that you are not able to provide certain information and explain the challenges you face, and when you plan to report in the future, if relevant. This is why the feedback loop with stakeholders is so important. They should challenge companies on what they said they would report at a future date. In some cases, systems simply don’t exist to gather the relevant data, but if you commit to resolving this, then stakeholders should check that you follow through.”<br />
<br />
<b><span style="color: red;">ME:</span> So where does In Accordance now sit? At Core or Comprehensive?</b><br />
<b><span style="color: red;">BASTIAN:</span> </b>“The fact is that In Accordance will always deliver a high level of transparency across a broad range of general disclosures and across material topics. Companies themselves define what is material and therefore what they report. But we have also retained the reference approach, so that companies can use certain disclosures from GRI Standards. This continues to be relevant for us as a global standard because of regulatory regimes across the global system – the reference approach continues to cater to regulators and reporters who require or recommend / disclose a narrower set of topics.”<br />
<br />
<br />
<br />
I believe current Core reporters will find the new approach a little stretching. First, there are more general disclosures. Second, they will have to think more deeply about the topic-specific indicators they commit to reporting. But, that’s a good thing. Somewhere in GRI’s purpose is improving the quality of reporting, I think, and this means raising the bar and challenging companies as stakeholder expectations change.<br />
<br />
So, that just about covers it for this post. And this is only the overview 😊. Brace yourself for more posts on the Universal Standards Exposure Draft if you are really keen to understand how these changes might affect your reporting. If you agree, disagree, or have any better ideas, take some time to provide your feedback in the <a href="https://r1.dotmailer-surveys.com/754j59b-144lblee" target="_blank"><span style="color: blue;">GRI Survey</span></a> between now and 9th September.<br />
<br />
In the meantime, you had better stock up on ice cream.<br />
<br />
Stay safe, stay well, stay optimistic!
<br />
<br />
<span style="background-color: white; font-size: x-small;"><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; text-align: left;"><span style="font-family: inherit;"><span style="text-align: justify;">e</span>laine cohen, CSR consultant, Sustainability Reporter, HR Professional, Ice Cream Addict. Owner/Manager of <span style="color: blue; text-align: justify;"><a href="http://www.b-yond.biz/" style="color: #0066cc;" target="_blank"><b>Beyond Business Ltd</b></a></span><span style="text-align: justify;">, </span>an inspired Sustainability Strategy and Reporting firm having supported <b>107 </b></span></span><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; text-align: left;"><span style="font-family: inherit;"><a href="http://www.b-yond.biz/clients-reports" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;"><b>client reports</b></span></a><span style="text-align: justify;"> to date; </span><b style="text-align: justify;">author </b><span style="text-align: justify;">of </span><a href="http://www.b-yond.biz/our-books" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">three books and several chapters</span></a><span style="text-align: justify;"> on Sustainability Reporting and the Human Resources connection to CSR; frequent </span><b style="text-align: justify;">chair and speaker </b><span style="text-align: justify;">at sustainability events and </span><b style="text-align: justify;">judge</b><span style="text-align: justify;"> in several sustainability awards programs each year. Contact me via </span><a href="http://www.twitter.com/elainecohen" style="color: #0066cc; text-align: justify;" target="_blank">Twitter</a><span style="text-align: justify;"> , </span><a href="https://www.linkedin.com/in/elainecohen/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">LinkedIn</span></a><span style="text-align: justify;"> or via </span><a href="http://www.b-yond.biz/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">Beyond Business</span></a></span></span></span><br />
<br />
<br /></div>
elainehttp://www.blogger.com/profile/07433863039389159395noreply@blogger.com0tag:blogger.com,1999:blog-8008724049496903547.post-3802353561362878482020-07-06T09:26:00.000+03:002020-07-06T09:28:46.999+03:00CSR for HR in the Big Pandemic<div style="text-align: justify;">
Last week I had the honor and pleasure to contribute to the Live Interactions Program of the <a href="https://www.iicsr.com/" target="_blank"><span style="color: blue;">International Institute for Corporate Social Responsibility</span></a> (IICSR) and share my thoughts about CSR for HR (human resources). Many thanks to <a href="https://www.linkedin.com/in/harshas1/" target="_blank"><span style="color: blue;">Harsha Mukherjee</span></a>, IICSR founder, for her kind invitation. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Since the publication of my book, <a href="https://www.amazon.com/dp/B005HQMUBE/ref=dp-kindle-redirect?_encoding=UTF8&btkr=1" target="_blank"><span style="color: blue;">CSR for HR: A necessary partnership for advancing responsible business practices</span></a> in 2010, which now seems like a lifetime ago, I have written and collaborated on several papers, briefings, book chapters and articles on this topic, delivered talks, workshops and facilitated discussions and engaged with HR leaders. Overall, while there has been some shift in approach, I think my mantra: <span style="color: red;"><b>It's time for HR to wake up to CSR</b></span> is still relevant today. I believe the HR function in general is lagging in its understanding of sustainable business, its willingness to think beyond the traditional HR role and its openness to be a partner in leading sustainable business transformation. A few months back, I gave a talk to a large group of HR professionals in a global company about the connection between HR and the Sustainable Development Goals. For many, it was the very first time they were seeing the broader picture. The arguments are compelling. Companies with progressive HR leadership are undoubtedly, for me, the ones that will be the most agile, resilient and successful over time. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
And then came the Big Pandemic. And with it, an entirely new level of understanding of that well-worn and not entirely true-ringing phrase "our employees are our greatest assets". Now, corporate leaders are using this phrase like they actually mean it, with a new kind of respect in their tone and a degree of compassion in their heart. Through this pandemic, employees have been in focus - both because of their new vulnerability in the workplace and because of their flexibility, creativity and willingness to go the extra mile in a time of crisis. Beyond the essential workers, who in every market have been risking their lives to keep work going, keep people connected, protected and motivated, the rank and file of our global corporations have suddenly become the center... really the center.. not just lip-service to being at the center. I believe a new level of respect for employees by corporate leaders is one of the positive outcomes of COVID-19. I call it a leadership awakening, and if the Human Resources function does not emerge from its comfort zone, embrace this awakening and leverage it to drive a new kind of HR leadership, in a new kind of world, then it will be one of the biggest failures of business today. (I won't dwell here on the Black Lives Matter movement, which is combining with COVID-19 to amplify the need for proactively inclusive business in an inclusive and equitable society. This is of course no less important.) </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Anyway, despite a few technical hitches on the Zoom platform, I delivered an overview of <span style="color: red;"><b>CSR for HR: The COVID-19 Differential</b></span>, covering the following points:</div>
<div style="text-align: justify;">
<br />
<ul>
<li>CSR for HR: An overview </li>
<li>The impact of COVID-19 on the management of work </li>
<li>The new challenges for HR leaders managing workplaces in light of the COVID-19 pandemic </li>
<li>The new focus for HR Leaders post COVID-19 </li>
<li>The CSR opportunities for HR leaders post COVID-19
</li>
</ul>
<div>
<br />
Here it is:</div>
<div>
<br /></div>
<div>
<br /></div>
</div>
<div style="text-align: justify;">
<div class="separator" style="clear: both; text-align: center;">
<iframe allowfullscreen="" class="YOUTUBE-iframe-video" data-thumbnail-src="https://i.ytimg.com/vi/i7SIVJQcceo/0.jpg" frameborder="0" height="266" src="https://www.youtube.com/embed/i7SIVJQcceo?feature=player_embedded" width="320"></iframe></div>
<br /></div>
<div style="text-align: justify;">
<br />
Stay well, stay safe, stay optimistic!<br />
<br /></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<span style="color: #333333; text-align: left;"><span style="font-family: inherit; font-size: x-small;"><span style="text-align: justify;">e</span>laine cohen, CSR consultant, Sustainability Reporter, HR Professional, Ice Cream Addict. Owner/Manager of <span style="color: blue; text-align: justify;"><a href="http://www.b-yond.biz/" style="color: #0066cc;" target="_blank"><b>Beyond Business Ltd</b></a></span><span style="text-align: justify;">, </span>an inspired Sustainability Strategy and Reporting firm having supported <b>107 </b></span></span><span style="color: #333333; text-align: left;"><span style="font-family: inherit; font-size: x-small;"><a href="http://www.b-yond.biz/clients-reports" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;"><b>client reports</b></span></a><span style="text-align: justify;"> to date; </span><b style="text-align: justify;">author </b><span style="text-align: justify;">of </span><a href="http://www.b-yond.biz/our-books" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">three books and several chapters</span></a><span style="text-align: justify;"> on Sustainability Reporting and the Human Resources connection to CSR; frequent </span><b style="text-align: justify;">chair and speaker </b><span style="text-align: justify;">at sustainability events and </span><b style="text-align: justify;">judge</b><span style="text-align: justify;"> in several sustainability awards programs each year. Contact me via </span><a href="http://www.twitter.com/elainecohen" style="color: #0066cc; text-align: justify;" target="_blank">Twitter</a><span style="text-align: justify;"> , </span><a href="https://www.linkedin.com/in/elainecohen/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">LinkedIn</span></a><span style="text-align: justify;"> or via </span><a href="http://www.b-yond.biz/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">Beyond Business</span></a></span><span style="font-family: inherit; font-size: xx-small; text-align: justify;"> </span><span style="font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: xx-small; text-align: justify;"> </span><span style="font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: xx-small; text-align: justify;"> </span></span></div>
elainehttp://www.blogger.com/profile/07433863039389159395noreply@blogger.com0tag:blogger.com,1999:blog-8008724049496903547.post-4485991501995498652020-06-29T18:07:00.002+03:002020-06-29T18:07:16.905+03:00ESG Reports. The new gimmick?<div style="text-align: justify;">
Anyone in the sustainability reporting world cannot help but have noticed the trend towards ESG Reporting we have been witnessing in the past year or so. ESG is the term of choice for investors apparently, and therefore, if you do not report on ESG rather than plain old sustainability or even plainer older CSR, then apparently, you are also plain and old, and unattractive to investors.<br />
<br /></div>
<div style="text-align: justify;">
I know that I harp on quite a lot about sustainability disclosure becoming the new toy-tool of financial analysts, serving money markets rather than real people and people's lives, but this move to ESG disclosure, ESG indicators, ESG reporting, ESG Everything (please Ben & Jerry's - do not bring out an ESG flavored ice cream) is rather disappointing. I can overlook Integrated Reporting as a tool that helps companies include sustainability information as part of the way they create (financial) value, but sustainability reporting was always about impacts, not financially material impacts that help stock-owners and investors decide how to make more money, but real-life impacts that affect you, me, human beings, animals, all of us on the planet and the planet itself. When did the core values that drove sustainability and sustainability reporting get lost on Wall Street and other financial hubs? When did we start to care about the planet only if it represents a climate-related financial risk? When did reporting managers start to wear dollar-tinted glasses instead of real-life lenses? </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
So what exactly is an ESG Report and how does it differ from a Sustainability Report except in its name? And with ESG reporting, have we seen a switch away from stakeholder disclosure in favor of add-on financial disclosure? Is this just the new gimmick of the day? It seems to be getting farther away from the true sustainability agenda, just when 181 U.S-based leaders of large corporations committed to lead their companies for the benefit of all stakeholders – customers, employees, suppliers, communities and shareholders in the new <a href="https://www.businessroundtable.org/business-roundtable-redefines-the-purpose-of-a-corporation-to-promote-an-economy-that-serves-all-americans" target="_blank"><span style="color: blue;">Statement on the Purpose of a Corporation from the Business Roundtable</span></a>.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Of course, I couldn't resist taking a look. Let's start with a small company that most of you have probably never heard of: Walmart. 😁 In the 2019 ESG Report, Walmart makes the point: <i>"This ESG Report responds
to stakeholder requests for a more concise
and focused view of our priority topics — how
we define them and the long-term strategy to
manage them; our aspirational goals and targets;
and progress to date.</i>"(page 8).</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Walmart's first <a href="https://corporate.walmart.com/media-library/document/2019-environmental-social-governance-report/_proxyDocument?id=0000016c-20b5-d46a-afff-f5bdafd30000" target="_blank">ESG Report for 2019</a> follows the <a href="https://corporate.walmart.com/media-library/document/2018-global-responsibility-report/_proxyDocument?id=00000170-ac54-d808-a9f1-ac7e9d160000" target="_blank">2018 Global Responsibility Report</a>, which was published annually since 2009. Prior to that, the <a href="https://corporate.walmart.com/global-responsibility/global-responsibility-report-archive" target="_blank">report archive</a> shows a "Sustainability Progress Report" and before that, two "Ethical Sourcing" Reports.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiXUsi_wfBlc5_fxt_i4x7Sl1KEBsvKL71DWixJua8R1zbPG7uNEriHiDD4PDpLavomChg1I0QoR-SDHYOHAIpsvw760Gct6f6E3W6MhaG-1jP_XJ8h78x4YWB5ZDBVElydCAPWGYDk4IQ/s1600/WALMART19+cover.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="723" data-original-width="945" height="244" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiXUsi_wfBlc5_fxt_i4x7Sl1KEBsvKL71DWixJua8R1zbPG7uNEriHiDD4PDpLavomChg1I0QoR-SDHYOHAIpsvw760Gct6f6E3W6MhaG-1jP_XJ8h78x4YWB5ZDBVElydCAPWGYDk4IQ/s320/WALMART19+cover.JPG" width="320" /></a></div>
<div class="separator" style="clear: both; text-align: center;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<br /></div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj7T4SmV244pVbMM8NQxK4mrGK9LGxLOPAf8Q-iABUqsIxxLgYRh4vFAbhMh_GCUQGlHV9Z2T6ZYy60vz7VdIdglKxK9LDUmn5HNcXx0CUBNYKULX3Qg1cUfWoCk2pvpDJcLZMZh-cMEzQ/s1600/WALMART+2018+cover.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="792" data-original-width="599" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj7T4SmV244pVbMM8NQxK4mrGK9LGxLOPAf8Q-iABUqsIxxLgYRh4vFAbhMh_GCUQGlHV9Z2T6ZYy60vz7VdIdglKxK9LDUmn5HNcXx0CUBNYKULX3Qg1cUfWoCk2pvpDJcLZMZh-cMEzQ/s320/WALMART+2018+cover.JPG" width="242" /></a></div>
<br />
A key change is the weight-loss (haha, wish I could do so well losing weight): the 2018 report was <b>232</b> pages (including the GRI Content Index) while the 2019 report is just <b>95</b> pages (excluding the GRI Content Index). Apparently when you talk ESG you say a lot less than when you talk responsibility!<br />
<br />
<b>Report structure:</b><br />
<b><span style="color: red;">2019:</span></b> <span style="color: red;">Four core sections: </span>Our Approach and then one for each E, S and G. There is an additional section grouping metrics called ESG Data.<br />
<b><span style="color: red;">2018:</span></b> <span style="color: red;">Five core sections:</span> Welcome, Opportunity, Sustainability, Community, Governance. These are followed by a summary of ESG Priorities and the GRI Content Index.<br />
<br />
Aside from the words, not too much has changed. Sustainability has become Environment, Community has become Social and Governance stays Governance. But in moving to ESG, the report has lost a section called Opportunity! Unfortunate, maybe?! Although not really, because the content in this section has been moved to the Social content of the 2019 ESG Report. Same content, different place.<br />
<br />
But some new language? See this opening paragraph from the Chief Sustainability Officer (red highlight is mine) from the 2018 and 2019 reports:<br />
<br />
<span style="color: red;"><b>2019:</b></span> "<i>Business exists to serve society.
For Walmart, this is true in many ways: providing
customers with convenient access to affordable
food and other products; employing associates;
helping suppliers grow their businesses that in turn
employ others; generating tax dollars that help
support community life; <span style="color: red;">providing a return
to shareholders</span>.</i>"<br />
<span style="color: red;"><b>2018:</b></span> "<i>Business exists to serve society. For Walmart,
this is true in many ways. We’re providing
customers with convenient access to safe,
affordable food and other products, creating
job opportunities for our associates; helping
suppliers grow their businesses that, in turn,
employ others; and generating tax dollars that
help support community life.</i>"<br />
<br />
Now, to be fair, in both reports there is a section entitled "Our Approach to ESG" and they are exactly the same in both reports .. with the exception of a date or number update here and there.<br />
<br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjU6C5eV7TrC_Vb_nqhe8sdBv7rp2AncIIWS1VbiTMTRH46T6jSFwJlF7zM-Ro6_CeZ3mb5cbbwyit_52ISiwBRYOFBkwCpNSRvg-sBx7mJ8ACJBNRes-jjgDzvax0f6flXD7l_uWryAoY/s1600/Walmart18+shared+value.JPG" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="858" data-original-width="640" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjU6C5eV7TrC_Vb_nqhe8sdBv7rp2AncIIWS1VbiTMTRH46T6jSFwJlF7zM-Ro6_CeZ3mb5cbbwyit_52ISiwBRYOFBkwCpNSRvg-sBx7mJ8ACJBNRes-jjgDzvax0f6flXD7l_uWryAoY/s400/Walmart18+shared+value.JPG" width="297" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Shared Value from Walmart in the 2018 Global Responsibility Report (page 7), same text as in the 2019 ESG Report</td></tr>
</tbody></table>
In general, I can't see any major changes in content, except that the 2018 Report is much shorter. This is in part due to the omission of several case studies - we all know that investors and analysts are so busy that they do not have time to read stories or look at anything that does not contain a number. So helpful and interesting content in the 2018 Report found no place under the ESG banner.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj5yyqJbBhKdNL7epNdYwKeUI36_u6b6n3lCQrur9Gm278as6cU1tvLT5V7jMsjSrWFoKWBqMotUfCdi35K_MmNWDO359OzssxF9OQZNW2H-qqdvcatZFC3GKxmSLMEcSRw51d6m6YZbOQ/s1600/Walmart+2018+impact+1.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="726" data-original-width="333" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj5yyqJbBhKdNL7epNdYwKeUI36_u6b6n3lCQrur9Gm278as6cU1tvLT5V7jMsjSrWFoKWBqMotUfCdi35K_MmNWDO359OzssxF9OQZNW2H-qqdvcatZFC3GKxmSLMEcSRw51d6m6YZbOQ/s400/Walmart+2018+impact+1.JPG" width="182" /></a></div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiEFPEnx-Cn1SnVaT2JUuAG1Rt-upiHUDuiiNbqcZ0TQbmhcYt8Dc6H53LsEr79PeinsouVlY5cJdP8c5Mtuz_7lqUxazJ_EENy3vchAyKIgiwyRqwystlt1P5dGuWnSMeQCPlQsH8qsK0/s1600/Walmart+2018+impact+2.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="570" data-original-width="311" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiEFPEnx-Cn1SnVaT2JUuAG1Rt-upiHUDuiiNbqcZ0TQbmhcYt8Dc6H53LsEr79PeinsouVlY5cJdP8c5Mtuz_7lqUxazJ_EENy3vchAyKIgiwyRqwystlt1P5dGuWnSMeQCPlQsH8qsK0/s400/Walmart+2018+impact+2.JPG" width="217" /></a></div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhjGcoMIGiD8EFyogBDf3zYWVoN-7kMTvXQ8EsCPUu7QtaoI_D7ceVeCQJajN_uOpuDszse3I3-4TQjawk3Gf-Dg_G_8L9PWmBDiXemWrN3bzk1gLwD60Qcw_lOxiIgKi9QPYW0qnldnfQ/s1600/Walmart+2018+impact+3.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="709" data-original-width="289" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhjGcoMIGiD8EFyogBDf3zYWVoN-7kMTvXQ8EsCPUu7QtaoI_D7ceVeCQJajN_uOpuDszse3I3-4TQjawk3Gf-Dg_G_8L9PWmBDiXemWrN3bzk1gLwD60Qcw_lOxiIgKi9QPYW0qnldnfQ/s400/Walmart+2018+impact+3.JPG" width="162" /></a></div>
<br />
Finally, the other big difference is the use of color. The 2018 Global Responsibility Report is bright, colorful, optimistic. The ESG Report is a little more "formal" - blue on white with images and icons. See the different ways, in the governance sections, that Board Composition is represented:<br />
<br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhyj1T7hyf45qwhQcP0yMpYsYaQHF8-gpYvLlRPRT-THcGVTNHPKSy5C4FswmXESKsjAjZkWABKAqmJJeqmy8Dyiz-QxIqDIKV3nbEFtiYtHVatsHWidVZTgKn6wzNRBWG9GVRkTC9FBdk/s1600/Walmart+2018+board+composition.JPG" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="313" data-original-width="632" height="158" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhyj1T7hyf45qwhQcP0yMpYsYaQHF8-gpYvLlRPRT-THcGVTNHPKSy5C4FswmXESKsjAjZkWABKAqmJJeqmy8Dyiz-QxIqDIKV3nbEFtiYtHVatsHWidVZTgKn6wzNRBWG9GVRkTC9FBdk/s320/Walmart+2018+board+composition.JPG" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Board Composition in 2018</td></tr>
</tbody></table>
<br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhejPizercDw739vBHPf3Ryzbx7kNhe7fNstkqXB80aLnxz7CoTIzQwVIbA6NpLp1lZGsREckxxD9qaJh-1KuhOeqtgf7VYd8RPznCGK0j7V64t6f1Sl-EzRmc29C3_kMubFzhp_WFMk9U/s1600/Walmart+2019+board+composition.JPG" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="272" data-original-width="880" height="98" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhejPizercDw739vBHPf3Ryzbx7kNhe7fNstkqXB80aLnxz7CoTIzQwVIbA6NpLp1lZGsREckxxD9qaJh-1KuhOeqtgf7VYd8RPznCGK0j7V64t6f1Sl-EzRmc29C3_kMubFzhp_WFMk9U/s320/Walmart+2019+board+composition.JPG" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Board Composition in 2019</td></tr>
</tbody></table>
Bottom line: While Walmart may be saving time and energy in delivering the new-style weight-conscious ESG Report, nothing of substance has changed, only moved around or omitted. I suppose that's what concise and focused means. I guess.<br />
<br />
Got time for another one?<br />
<br />
Here is one that represents a change not in name only.<br />
<br />
<b>Alliance Data</b> published its <a href="https://s23.q4cdn.com/525801907/files/doc_downloads/sustainability/ADS-2019-ESG-Performance-Report.pdf" target="_blank"> 2019 ESG Performance Report</a>, following its <a href="https://s23.q4cdn.com/525801907/files/doc_downloads/cr-downloads/2018/Alliance_Data_2018_Sustainability_Report.pdf" target="_blank">2018 Sustainability Report</a> and several prior years of "CR" reporting. And the difference is quite interesting. In fact, it could be two different companies (except for the fact that the <a href="https://s3.us-east-2.amazonaws.com/alliance-data-adcom/AllianceData-CR-Materiality-2016.pdf" target="_blank">materiality analysis from 2017</a> has not changed - apparently the move to ESG did not affect material topics!)<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjkpKPe7d85xrD58Qn3d7R0zLqrTSGLu-Ezit6N_x8tCit6D7jck0YTmf3x9CmVMNowAQ-vONijKylJM69kj6_Fbl1lwY74qXGIF0asSe6FZn0vZjQ1rjCym0weh5_oTSX8jmnTafJJwxo/s1600/ALlIANCEDATA+2018+cover.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="725" data-original-width="938" height="308" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjkpKPe7d85xrD58Qn3d7R0zLqrTSGLu-Ezit6N_x8tCit6D7jck0YTmf3x9CmVMNowAQ-vONijKylJM69kj6_Fbl1lwY74qXGIF0asSe6FZn0vZjQ1rjCym0weh5_oTSX8jmnTafJJwxo/s400/ALlIANCEDATA+2018+cover.JPG" width="400" /></a></div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi-vdiVhSX0odn6UsJ-_vg-HsA0w92_MYu7Dn0S4o3Rb0BiCo0Wv09QjRbg243RJPwfXL31dSxxUzjBL8fwNKRLkOsBhvlOrHlucCfC4rtPm3q02XVYYgKpFNFWGKXhoTNpbut6PrK7Gbw/s1600/ALlIANCEDATA+2019+cover.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="724" data-original-width="940" height="307" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi-vdiVhSX0odn6UsJ-_vg-HsA0w92_MYu7Dn0S4o3Rb0BiCo0Wv09QjRbg243RJPwfXL31dSxxUzjBL8fwNKRLkOsBhvlOrHlucCfC4rtPm3q02XVYYgKpFNFWGKXhoTNpbut6PrK7Gbw/s400/ALlIANCEDATA+2019+cover.JPG" width="400" /></a></div>
<b><br /></b>
As you can see, Alliance Data goes from multi-color to monochrome and from design creativity to design minimalism - all the while thinning down the report from <b>78</b> pages in 2018 to <b>21</b> pages in 2019. The 2019 ESG Report "references" GRI and SASB disclosures, while the 2018 Report was prepared in accordance with GRI Standards (core).<br />
<br />
<b>Report structure:</b><br />
<b><span style="color: red;">2019:</span></b> <span style="color: red;">Two core sections: </span>(1) Management Approach Disclosures describing policies and programs and brief updates across 10 topics (which broadly represent the topics listed in the Materiality Matrix, although clustered slightly differently) and (2) ESG Data tables covering three years of activities and referencing GRI and SASB disclosures.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh-CzKPDxVpXbw9jklQ9GafjnuxaR_VJS0E7B38IsnZwrmXQwFzR8fOc6aZShzjwczJQSMnHlvlYj_YL9eW25tzJjMacWuYLbFnCUBN4GNBF31CNiBHO6UwVORe2-UMeHJVOxe9XJ-zh4E/s1600/ALLIANCEDATA+2019+responsiblemarketing.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="603" data-original-width="836" height="287" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh-CzKPDxVpXbw9jklQ9GafjnuxaR_VJS0E7B38IsnZwrmXQwFzR8fOc6aZShzjwczJQSMnHlvlYj_YL9eW25tzJjMacWuYLbFnCUBN4GNBF31CNiBHO6UwVORe2-UMeHJVOxe9XJ-zh4E/s400/ALLIANCEDATA+2019+responsiblemarketing.JPG" width="400" /></a></div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhcjXOB4-oB_DzPKrGYGu37ywqdp1epRHnHtZxdIKvyFmTaFiEfzPIvc45H1mtl4sbNM_ec1ME0TeUJyEzte7MEshCqqV93Z9-pCGMTEvTn6u5V8LIJmzro8ETOMlnR9tE1_l7bjMDw8Vc/s1600/ALLIANCEDATA+2019+data+tables.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="640" data-original-width="841" height="303" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhcjXOB4-oB_DzPKrGYGu37ywqdp1epRHnHtZxdIKvyFmTaFiEfzPIvc45H1mtl4sbNM_ec1ME0TeUJyEzte7MEshCqqV93Z9-pCGMTEvTn6u5V8LIJmzro8ETOMlnR9tE1_l7bjMDw8Vc/s400/ALLIANCEDATA+2019+data+tables.JPG" width="400" /></a></div>
<br />
<br />
<b><span style="color: red;">2018:</span></b> <span style="color: red;">Five core sections:</span> Ethics, Excellence, Associated, Communities, Environment. These are preceded by a section on Our Approach and followed by a GRI Content Index. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizcMUV5RZMy4JJtkFdPSQCb9qjODVyg8lLRz3yaJpjQbMxzbe2iYHzj-JKLeB2jBH8hhPUqC1RaDbLwVGjLcwvFWBMg04WakJdV3Ltb3aJa5-FleHkvXO8aCGBiTug0oDH35Y8chBZN54/s1600/ALlIANCEDATA+2018+contents.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="598" data-original-width="787" height="303" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizcMUV5RZMy4JJtkFdPSQCb9qjODVyg8lLRz3yaJpjQbMxzbe2iYHzj-JKLeB2jBH8hhPUqC1RaDbLwVGjLcwvFWBMg04WakJdV3Ltb3aJa5-FleHkvXO8aCGBiTug0oDH35Y8chBZN54/s400/ALlIANCEDATA+2018+contents.JPG" width="400" /></a></div>
<div class="separator" style="clear: both; text-align: center;">
<br /></div>
<div class="separator" style="clear: both; text-align: justify;">
The diet plan included, for example, exclusion of all case studies and appealing graphics. So, the section on information security and data privacy went from 5 pages of text in 2018 with icons, imagery, charts quotes to one page of monochromatic text.</div>
<div class="separator" style="clear: both; text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: left;">
<br /></div>
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiZY7NaAb5O9bo4bxs9kCbuGv5eZH7kSnyYzqUUJH86ISjUUsYJeIq188mTNbgls7YU1MKRVnKrSk_ao4mj9sQSk98IiALd7LFgb-cqfzUOdT5Yq7kbWS0GgOsazsWkoR0HSRJuoc0KdqE/s1600/ALLIANCEDATA+2018+dataprivacy.JPG" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="775" data-original-width="760" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiZY7NaAb5O9bo4bxs9kCbuGv5eZH7kSnyYzqUUJH86ISjUUsYJeIq188mTNbgls7YU1MKRVnKrSk_ao4mj9sQSk98IiALd7LFgb-cqfzUOdT5Yq7kbWS0GgOsazsWkoR0HSRJuoc0KdqE/s400/ALLIANCEDATA+2018+dataprivacy.JPG" width="391" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">2018 report - sustainability in party colors</td></tr>
</tbody></table>
<div class="separator" style="clear: both; text-align: center;">
<br /></div>
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj_8pK_RQ06zwouEADHzm8QWkLpWnEuSs2tHz2f0tWh2HUaz8BdouTE3WWMXBaGpn1nbD3gYxP_2zggQGS0fIscxjk4C8Q4kHUU7_n3wHOvrs8lZA4w0XJU5T7eQpwdrM8TXJQ_aOesee4/s1600/ALLIANCEDATA+2019+dataprivacy.JPG" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="664" data-original-width="876" height="302" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj_8pK_RQ06zwouEADHzm8QWkLpWnEuSs2tHz2f0tWh2HUaz8BdouTE3WWMXBaGpn1nbD3gYxP_2zggQGS0fIscxjk4C8Q4kHUU7_n3wHOvrs8lZA4w0XJU5T7eQpwdrM8TXJQ_aOesee4/s400/ALLIANCEDATA+2019+dataprivacy.JPG" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">2019 Report - ESG in funeral colors</td></tr>
</tbody></table>
<div class="separator" style="clear: both; text-align: center;">
<br /></div>
<div class="separator" style="clear: both; text-align: justify;">
Overall, this 2019 ESG Report is useful in presenting policies and data. It's definitely not a report you read - it's a disclosure document, nothing more. If this is what the super-serious, busy and story-challenged investment community is looking for, it might do the job. Neither report is externally assured, by the way. </div>
<div class="separator" style="clear: both; text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: justify;">
On the other hand, the 2018 Sustainability Report gets a message through - starting with the report title of Embracing Change and continuing through the insights of company leaders, case studies and more extensive descriptions of processes that underpin the disclosure and enhance credibility with a broader range of stakeholders. It's also appealing, you do more than just cherry-pick data-bytes, you actually read the narrative selectively and some of it is quite inspiring. </div>
<div class="separator" style="clear: both; text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
********</div>
<div class="separator" style="clear: both; text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: justify;">
I can certainly understand the appeal to company leadership of boarding the ESG train .. it's short, it's focused, it's lower budget and it plays to the demands of people who hold the money. And I am no means an advocate for tediously looooong sustainability reports. But in converting to ESG, perhaps something is getting lost en route - exactly what the CSR, Sustainability, Social Impact, Conscious Business, Accountability, Sustainable Impact etc Reports aimed to do: speak to all stakeholders in language all stakeholders understand in ways that help all stakeholders stay informed and engaged beyond computing facts and figures. </div>
<div class="separator" style="clear: both; text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: justify;">
I think this is symptomatic of the ongoing tension (and increasing complexity) in the sustainability space as investor interest has finally woken up to the fact that the impacts of companies are not just about traditional financial materiality. The challenge in this awakening is a bit like the old adage: <b>When you are an ice cream, everything you see is a cone and chocolate sprinkles.</b> (OK, I adapted that old adage). With investors, everything they are seeing in sustainability is now reframed as new financial risk (rather than a non-financial one) and monetized to assess its effect on shareholder value. We just might be in danger of coming full circle. I appreciate that corporations are struggling with this and how to best meet the needs of investors while continuing to place value in values. </div>
<div class="separator" style="clear: both; text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: justify;">
An example of a company that does it well, in my view, is <a href="https://corporate.ford.com/microsites/sustainability-report-2020/index.html" target="_blank">FORD's Sustainability microsite</a>.</div>
<div class="separator" style="clear: both; text-align: justify;">
<br /></div>
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiTN6Z82J5CTanT2eDx_5fhy-fPTwoVwO9GqMxB13nTXniNa6Ww_zW4m3eUd3UOT8mPJ6VVCxlDRUbswfnFkipPsEz0WERGKYlxMad1CSbN63oad1Yuo9t9ycjQOHu8QhL_NZPblZnbd78/s1600/FORD+2020+sust+website.JPG" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="786" data-original-width="1495" height="210" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiTN6Z82J5CTanT2eDx_5fhy-fPTwoVwO9GqMxB13nTXniNa6Ww_zW4m3eUd3UOT8mPJ6VVCxlDRUbswfnFkipPsEz0WERGKYlxMad1CSbN63oad1Yuo9t9ycjQOHu8QhL_NZPblZnbd78/s400/FORD+2020+sust+website.JPG" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Ford 2020 Sustainability microsite home page</td></tr>
</tbody></table>
<div class="separator" style="clear: both; text-align: justify;">
Ford's online and downloadable Sustainability Report clearly states all the different frameworks that Ford reports against. It's a packed 54 page report that includes strategy, material topics, quotes, images, case studies and super interesting perspectives on all aspects of sustainable mobility and responsible practices.</div>
<div class="separator" style="clear: both; text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhjzamKmb4IeFVZK66N4_FkxNaGO7eySYTqQkwMRAK1MwBtvaV1bxJ5PBUKbEhNgjcfDWK0Qn1VkuP41QZ7z3y76yyxEmHg7zt7BNDWjgGVLkQ1jtGCESFvQTSgpetzfOiXS-OjjgOFTbE/s1600/FORD2020+welcome.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="732" data-original-width="947" height="308" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhjzamKmb4IeFVZK66N4_FkxNaGO7eySYTqQkwMRAK1MwBtvaV1bxJ5PBUKbEhNgjcfDWK0Qn1VkuP41QZ7z3y76yyxEmHg7zt7BNDWjgGVLkQ1jtGCESFvQTSgpetzfOiXS-OjjgOFTbE/s400/FORD2020+welcome.JPG" width="400" /></a></div>
<div class="separator" style="clear: both; text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: justify;">
And for the ESGerati, wow, there is also an <a href="https://corporate.ford.com/microsites/sustainability-report-2020/esg-reporting-hub.html" target="_blank">ESG Reporting Hub</a>. This contains not only the Sustainability Full and Summary Reports, but also downloadable indices for no less than 8 reporting frameworks, including GRI, SASB, UNGC, CDP and others. </div>
<div class="separator" style="clear: both; text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiA_LhAkidURem9PuHEa3yJa_eawijNE2axpc0qkm2ytnrX9xN6I3FgFVJ8JjV5ufoLmYE1dKU-raUbYGecZ7ru9-72iDf2wUoNXyTtd-yhsEvj9m_UKtoYpInYCUp8S7NU0PnYNNBKg3c/s1600/FORD+2020+ESG+hub.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="874" data-original-width="1120" height="311" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiA_LhAkidURem9PuHEa3yJa_eawijNE2axpc0qkm2ytnrX9xN6I3FgFVJ8JjV5ufoLmYE1dKU-raUbYGecZ7ru9-72iDf2wUoNXyTtd-yhsEvj9m_UKtoYpInYCUp8S7NU0PnYNNBKg3c/s400/FORD+2020+ESG+hub.JPG" width="400" /></a></div>
<div class="separator" style="clear: both; text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: justify;">
The ESG Hub continues with a suite of policies and positions and ESG highlights, for those who have an extra few minutes to scroll down the page.</div>
<div class="separator" style="clear: both; text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: justify;">
It appears to me that Ford has invested in developing detailed disclosures and organizing them in a way that enables different stakeholders to get the information they want and need quickly and efficiently, without compromising on the richness of insight we seek from sustainability reporting. I like this. I feel that Ford is respecting all its stakeholders. </div>
<div class="separator" style="clear: both; text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: justify;">
In summary, I hope ESG does not become a poor proxy for sustainability reporting. I hope companies will not use ESG reporting as an opportunity to turn sustainability reporting into skeleton disclosure about whose numbers are bigger.</div>
<div class="separator" style="clear: both; text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: justify;">
Resonate, anyone? </div>
<div class="separator" style="clear: both; text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: justify;">
<span style="background-color: white;"><span style="font-size: x-small;"><span style="color: #333333; font-family: inherit; text-align: left;"><span style="text-align: justify;">e</span>laine cohen, CSR consultant, Sustainability Reporter, HR Professional, Ice Cream Addict. Owner/Manager of <span style="color: blue; text-align: justify;"><a href="http://www.b-yond.biz/" style="color: #0066cc;" target="_blank"><b>Beyond Business Ltd</b></a></span><span style="text-align: justify;">, </span>an inspired Sustainability Strategy and Reporting firm having supported <b>100+ </b></span><span style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; text-align: left;"><span style="font-family: inherit;"><a href="http://www.b-yond.biz/clients-reports" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;"><b>client reports</b></span></a><span style="text-align: justify;"> to date; </span><b style="text-align: justify;">author </b><span style="text-align: justify;">of </span><a href="http://www.b-yond.biz/our-books" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">three books and several chapters</span></a><span style="text-align: justify;"> on Sustainability Reporting and the Human Resources connection to CSR; frequent </span><b style="text-align: justify;">chair and speaker </b><span style="text-align: justify;">at sustainability events and </span><b style="text-align: justify;">judge</b><span style="text-align: justify;"> in several sustainability awards programs each year. Contact me via </span><a href="http://www.twitter.com/elainecohen" style="color: #0066cc; text-align: justify;" target="_blank">Twitter</a><span style="text-align: justify;"> , </span><a href="https://www.linkedin.com/in/elainecohen/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">LinkedIn</span></a><span style="text-align: justify;"> or via </span><a href="http://www.b-yond.biz/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">Beyond Business</span></a><span style="text-align: justify;"> </span></span><span style="font-family: arial, tahoma, helvetica, freesans, sans-serif; text-align: justify;"> </span><span style="font-family: arial, tahoma, helvetica, freesans, sans-serif; text-align: justify;"> </span></span></span></span></div>
<div class="separator" style="clear: both; text-align: justify;">
<br /></div>
</div>
elainehttp://www.blogger.com/profile/07433863039389159395noreply@blogger.com0tag:blogger.com,1999:blog-8008724049496903547.post-51726934927486061352020-06-13T13:19:00.000+03:002020-06-13T13:19:14.352+03:00Reporting in CoronaWorld<div style="text-align: justify;">
The question on everyone's (masked) lips.😷 Although we are currently publishing a 2019 Sustainability Report, should we include our response to COVID-19, even though it occurred in 2020? </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
In my view, the answer is unequivocally <span style="color: red;"><b>yes</b></span>. Reporting is never in a vacuum, and when reality has changed so starkly between the time of preparation and the date of publication of a sustainability report, I believe it's fairly obtuse not to include a reference or update. In fact, many are referring to a company's COVID-19 response as a sort of litmus test of its seriousness about sustainability. If core values of positive social impact and responsible employment are not demonstrated in times of crisis, when they are most needed, then they are apparently not truly embedded. Check out <a href="http://vigeo-eiris.com/wp-content/uploads/2020/04/Corporate-Social-Responsibility_The-COVID-19-Stress-Test1.pdf" target="_blank"><b><span style="color: blue;">the COVID-19 Stress Test by Vigeo Eiris</span></b></a>, which concludes with the words: <i>"CSR presents a pathway to protect consumer trust, investor confidence and workforce loyalty. If there is a simple lesson that we can relearn, it is that CSR practices can act as powerful tools when responding to a crisis."</i></div>
<div style="text-align: justify;">
<br />
I reviewed 30 Sustainability Reports that were published in the last few weeks (those that have crossed my radar through announcements and alerts) and produced the following analysis:<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgNRunye_UuL8sWBqEBws4IDucD0tGItH_pv1i5PkeHD3gpSOaTIw6n55L2AKN7V4UNEnU9giPEY1w5cAKv2UJTphjDSeg0iVcHwtuk2_shwmnHa1h7drF2ZqmxnYE1f2aQxj_SlXk9DcI/s1600/COVID+reports3.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="346" data-original-width="1223" height="112" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgNRunye_UuL8sWBqEBws4IDucD0tGItH_pv1i5PkeHD3gpSOaTIw6n55L2AKN7V4UNEnU9giPEY1w5cAKv2UJTphjDSeg0iVcHwtuk2_shwmnHa1h7drF2ZqmxnYE1f2aQxj_SlXk9DcI/s400/COVID+reports3.JPG" width="400" /></a></div>
<div class="separator" style="clear: both; text-align: center;">
</div>
<div class="separator" style="clear: both; text-align: center;">
</div>
<div class="separator" style="clear: both; text-align: center;">
</div>
<br />
<ul>
<li>The majority of companies include references to COVID-19 in their 2019 Sustainability Reports, though a third of them are only doing so via a brief mention in the leadership (Chair, CEO or other senior leaders) letters. </li>
<li>The number of companies providing extensive updates about their actions to support their stakeholders during the COVID-19 challenges are few - just 8 companies out of 30 specifically reference more than a single stakeholder group (e.g. employees, customers, suppliers, communities or new business activities). </li>
<li>Most of the companies that have included COVID-19 references in their Sustainability Reports also have a COVID-19 update on their website homepage.</li>
<li>Three companies that do not provide COVID-19 updates in the 2019 Sustainability Report include a reference on the company homepage. </li>
<li>Five companies - radio silence.</li>
</ul>
<br />
These results surprised me a little. There has been no greater global social or economic crisis in recent years than the coronavirus pandemic, affecting billions of lives, forcing businesses around the world to a standstill, a slowdown, or for many, bankruptcy. There has never been a period in our lifetime when the ability to work and deliver economic output has been so drastically affected. There have never been so many layoffs in such a short period, nor so many employees affected by the virus or by sickness or deaths of loved ones, neighbors or colleagues. Never has "materiality" been subordinated to a single overriding issue that affects everything corporations are doing.<br />
<br />
In this unprecedented scale of crisis, all corporations face both risk and opportunity - the familiar duality of CSR or sustainability. The annual Sustainability Report is a core communication tool to disclose the impacts of companies on people and the environment, as well as the sustainability risks and opportunities companies face, and how they are dealing with them. By the time the next report is published, in 2021, although companies may still be navigating the "new normal", whatever that looks like, their actions <b>now</b> are what counts and what stakeholders seek to understand. A page on a website may get lost in time, a Sustainability Report is a permanent attestation to a company's commitment. Business is not currently "as usual". Sustainability Reports published in 2020 should also not be "as usual".<br />
<br />
Yet, in more than a quarter of the recent reports I reviewed, companies say nothing at all - not even: "Hey folks, stay safe." For many others, the mention is cursory. On the positive side, there are examples of comprehensive disclosure such as Infosys, Samsung and Moody's (see below).<br />
<br />
Here are a few examples from the 30 reports I reviewed (alpha order):<br />
<br />
<b><a href="https://www.b2gold.com/" target="_blank">B2Gold</a>: <a href="https://www.b2gold.com/_resources/reports/B2Gold-Responsible-Mining-Report-2019.pdf" target="_blank">2019 Sustainability Report - Raising the Bar</a></b><br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjUeE1gyjLO2wYxtNg_0xevEDI9kmbdpuBvH4Q7oHbVyRDg_MoMwGUUtCcUjVuasL_cXSO34ePLA6PsnvcJsNHVnFgzMV_xuMJv6oqm94fYYQ-IA_Sf1F3al8tSsi5aQf61ebYRlIIkiCk/s1600/B2GOLD+2019+COVER.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="790" data-original-width="1114" height="226" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjUeE1gyjLO2wYxtNg_0xevEDI9kmbdpuBvH4Q7oHbVyRDg_MoMwGUUtCcUjVuasL_cXSO34ePLA6PsnvcJsNHVnFgzMV_xuMJv6oqm94fYYQ-IA_Sf1F3al8tSsi5aQf61ebYRlIIkiCk/s320/B2GOLD+2019+COVER.JPG" width="320" /></a></div>
<br />
B2Gold's President and CEO references COVID-19 in his opening letter - not the first thing he addresses, but it is there on the first page of the letter and a commitment to work with governments, health authorities and other players to support navigating the pandemic. Separately, B2Gold includes a half page update of key COVID-19 initiatives and commitments addressing employees, health and safety and community - referencing more details on the company's website.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgRc3kzBsBCRBMbgp_WMXiSyBuTyxQfJ_64YdZ4GmLghEFVPGcydEmIxGIjnwS3fBiFkcaECOUjQiP3HK42XPBVcJjdWqBQY3BCdOztq0qboHk0Mece9Zu6dwtbxG-rrdOqql0jRzLhRfg/s1600/B2GOLD+2019+COVID.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="691" data-original-width="388" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgRc3kzBsBCRBMbgp_WMXiSyBuTyxQfJ_64YdZ4GmLghEFVPGcydEmIxGIjnwS3fBiFkcaECOUjQiP3HK42XPBVcJjdWqBQY3BCdOztq0qboHk0Mece9Zu6dwtbxG-rrdOqql0jRzLhRfg/s400/B2GOLD+2019+COVID.JPG" width="223" /></a></div>
<br />
Notably, all forecasts and data shared for 2020 is footnoted in B2Gold's report with the words: "based on current assumptions, subject to variation due to impacts of COVID-19 pandemic."<br />
<br />
<a href="https://www.gaslogltd.com/" target="_blank"><b>GasLog Ltd:</b></a> <a href="https://www.gaslogltd.com/content/uploads/2019-GasLog-Ltd-ESG-Report.pdf" target="_blank"><b>Sustainability Report 2019</b></a><br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjHQD9s4ATwJHdWUgjae46yH0FwePT3tJb4mSdPoVTi26ojbcTxLPPekaNfGZ9F16MNQ9u2srsNe2ZrXmIYD1zOfNH_P2b83UrmXpti6HsQdYuvDrHs26_i_lf_YePNKrvtLbYI3PkmVj0/s1600/GASLOG+LTD+2019+cover.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="871" data-original-width="613" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjHQD9s4ATwJHdWUgjae46yH0FwePT3tJb4mSdPoVTi26ojbcTxLPPekaNfGZ9F16MNQ9u2srsNe2ZrXmIYD1zOfNH_P2b83UrmXpti6HsQdYuvDrHs26_i_lf_YePNKrvtLbYI3PkmVj0/s400/GASLOG+LTD+2019+cover.JPG" width="281" /></a></div>
<br />
This is a first report from this company, and nothing like a baptism of fire, facing both the challenges of first time reporting AND the COVID-19 pandemic all at the same time. GasLog's Chairman's first words in his opening letter addresses this. In fact, the first paragraph of the Chair's letter includes the word "challenges" three times - a symptom of today's market and reporting environment. In addition to this, GasLog briefly references the measures taken to protect employees and maintain operations.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgr-21mJuwVJa4l-SPeaqx2uRGGDlW8gOgkPU-XER3rEtPfrr-1cp5UwWgG_Ha4gqD5D87cdcLRETd-vGpdV1ValbVrPmJxTz90kiOgwDizDAk13KzCdmTIw7xeF_uUnQbc_AFUM58q3PQ/s1600/GASLOG+LTD+2019+covid.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="224" data-original-width="301" height="236" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgr-21mJuwVJa4l-SPeaqx2uRGGDlW8gOgkPU-XER3rEtPfrr-1cp5UwWgG_Ha4gqD5D87cdcLRETd-vGpdV1ValbVrPmJxTz90kiOgwDizDAk13KzCdmTIw7xeF_uUnQbc_AFUM58q3PQ/s320/GASLOG+LTD+2019+covid.JPG" width="320" /></a></div>
<b><br /></b>
<b><span style="color: blue;"><a href="https://www.infosys.com/" target="_blank">Infosys:</a></span> <a href="https://www.infosys.com/sustainability/documents/infosys-sustainability-report-2019-20.pdf" target="_blank"><span style="color: blue;">Sustainability Report 2019 - 2020</span></a></b><br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiVyjTkeFa18mvo43H0qvoCC1p_cUs71mBfbw4pN1EtTkRG4hxSBnWxdBAZ9K-2Dd0omtAwHYyZ7NV3xDAmZ4kfFoKbf8xBJ4WRT-X77Qbp50TAlpCON2zele_NBgFWJMha6ZcI9CHa1xk/s1600/INFOSYS+2019+cover.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="782" data-original-width="1356" height="230" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiVyjTkeFa18mvo43H0qvoCC1p_cUs71mBfbw4pN1EtTkRG4hxSBnWxdBAZ9K-2Dd0omtAwHYyZ7NV3xDAmZ4kfFoKbf8xBJ4WRT-X77Qbp50TAlpCON2zele_NBgFWJMha6ZcI9CHa1xk/s400/INFOSYS+2019+cover.JPG" width="400" /></a></div>
<div class="separator" style="clear: both; text-align: center;">
<br /></div>
<div class="separator" style="clear: both; text-align: justify;">
Infosys provides detailed coverage of its COVID-19 response, starting with a reference in the COO letter to the contribution made by the Infosys Foundation to support local communities. Later, a dedicated section in the report focuses on Infosys' risk management approach and support for the health and safety of employees and vendors, and business continuity plans for customers.</div>
<div class="separator" style="clear: both; text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjGUhLdC42q8wSjPYy_izcUHx-67_N6R3IvtVbfB69d5QlxGpuiQGIl7zBx4SEi-cXOvF39VgIeC6DItQ5qT3KCaur0Vbt7Q2T1LlxuIzHLOjJNT6IfQNJ9YQObpCjmBYHQzobBAxnXVE4/s1600/INFOSYS+2019+covid1.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="768" data-original-width="1363" height="225" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjGUhLdC42q8wSjPYy_izcUHx-67_N6R3IvtVbfB69d5QlxGpuiQGIl7zBx4SEi-cXOvF39VgIeC6DItQ5qT3KCaur0Vbt7Q2T1LlxuIzHLOjJNT6IfQNJ9YQObpCjmBYHQzobBAxnXVE4/s400/INFOSYS+2019+covid1.JPG" width="400" /></a></div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjWswSzvjEq34nH73m-J5BHnVQcoqZNcccG3nwG3bxXJ-F3UXU2HJdNU5naOdKXg5VSD0RyIhP0GG2jSZ37I5bNW2ukOVO-djGg_d-gxUr-nkioqV29KPMdnzwjEKS0VACZAisAneVHhbA/s1600/INFOSYS+2019+covid2.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="752" data-original-width="1361" height="220" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjWswSzvjEq34nH73m-J5BHnVQcoqZNcccG3nwG3bxXJ-F3UXU2HJdNU5naOdKXg5VSD0RyIhP0GG2jSZ37I5bNW2ukOVO-djGg_d-gxUr-nkioqV29KPMdnzwjEKS0VACZAisAneVHhbA/s400/INFOSYS+2019+covid2.JPG" width="400" /></a></div>
<div class="separator" style="clear: both; text-align: center;">
<br /></div>
<div class="separator" style="clear: both;">
COVID-19 references also appear in different sections of the report, describing, for example, research initiatives on the effects of the pandemic, and a hackathon hosted with IBM to address issues such as crisis communications and remote working. Another example is converting the company's internship program to operate virtually so that interns can stay on course in their careers. There is also a specific case study on smart building automation as a key factor in managing uninterrupted
operations in buildings, including critical infrastructure
like data centers.</div>
<div class="separator" style="clear: both;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjWaNIfP6A-YmLi9JUKmiF4pyYVl7JCBDHYtgVmm8FFT_w_qrOETOJgWyWJmT4UXTyHwQ9u2RjgME201yN5kGyWSzAy4JJhfwXznZh_-KK0OtJPMPVSwbi5WRuPaxwLCsYdDhasgtLuR7M/s1600/INFOSYS+2019+covid4.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="551" data-original-width="706" height="311" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjWaNIfP6A-YmLi9JUKmiF4pyYVl7JCBDHYtgVmm8FFT_w_qrOETOJgWyWJmT4UXTyHwQ9u2RjgME201yN5kGyWSzAy4JJhfwXznZh_-KK0OtJPMPVSwbi5WRuPaxwLCsYdDhasgtLuR7M/s400/INFOSYS+2019+covid4.JPG" width="400" /></a></div>
<div class="separator" style="clear: both;">
<br /></div>
<div class="separator" style="clear: both;">
<br /></div>
<div class="separator" style="clear: both;">
Further, Infosys reports pushing out its climate ambition from its commitment to achieve carbon neutrality in 2020 to 2021 due to COVID related uncertainties. Interesting. With all the travel restrictions, lockdown and virtual working, you might have thought that the carbon neutral commitment would be even easier to achieve in 2020. But apparently it take more than zoom meetings and cancelled flights to deliver a long-term step change in carbon performance. It's notable the the company is acting with a measure of caution and publishing an updated commitment to stakeholders. </div>
<div class="separator" style="clear: both; text-align: justify;">
<br /></div>
<b><a href="https://www.mondelezinternational.com/" target="_blank"><span style="color: blue;">Mondelez International:</span></a></b> <a href="https://www.mondelezinternational.com/-/media/Mondelez/Snacking-Made-Right/SMR-Report/2019_MDLZ_Snacking_Made_Right_Report.pdf" target="_blank"><span style="color: blue;"><b>Snacking Made Right 2019 Report</b></span></a><br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjxscf8elJs9I9gX5i7pYOeS2nAt8HMk_qUbJ60hfIjZjvYuAs3cho3jRorSeP8VyZtEH6gZ7JGUO_CW_luWoOU_kk59oJ4uw5LU-jWeReq9p48zQpoFM_sbXdXwgoDW7rrd7S0Mxv4jMU/s1600/Mondelez19cover.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="907" data-original-width="1173" height="308" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjxscf8elJs9I9gX5i7pYOeS2nAt8HMk_qUbJ60hfIjZjvYuAs3cho3jRorSeP8VyZtEH6gZ7JGUO_CW_luWoOU_kk59oJ4uw5LU-jWeReq9p48zQpoFM_sbXdXwgoDW7rrd7S0Mxv4jMU/s400/Mondelez19cover.JPG" width="400" /></a></div>
<br />
Several references are made in different sections of the report, covering employees, safety, communities in addition to a brief mention by the CEO in his opening letter.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhrH7UziaJnfsXsF6nUCrEAczSDjmPhyphenhyphenHrUQx0Km5iluMeGXJAcHFO9_JmIytba2KPvAWNt5zQRrBFF5uQ0FykGIPeHCseDut7ues6kGwwqRhQpkjZBaOSYFGJ82IfGjKRj8KrVHODyUhA/s1600/MONDELEZ19workplacesafety.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="150" data-original-width="368" height="129" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhrH7UziaJnfsXsF6nUCrEAczSDjmPhyphenhyphenHrUQx0Km5iluMeGXJAcHFO9_JmIytba2KPvAWNt5zQRrBFF5uQ0FykGIPeHCseDut7ues6kGwwqRhQpkjZBaOSYFGJ82IfGjKRj8KrVHODyUhA/s320/MONDELEZ19workplacesafety.JPG" width="320" /></a></div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhyNFV8aUzzQd_f8TXmdRR4yeJ6YXkJEZBzlGKaQ1VgmIOZ_s-gS1JHpTXn29yRkNTEEc5aW6KbbxpYLnpA29tL_G9jk4QaKkt2Wrek5AsidKkCnTJJ5_YXFgTxrDlp2KiGa_ijUhSXHpE/s1600/MONDELEZ19+farmers.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="177" data-original-width="288" height="196" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhyNFV8aUzzQd_f8TXmdRR4yeJ6YXkJEZBzlGKaQ1VgmIOZ_s-gS1JHpTXn29yRkNTEEc5aW6KbbxpYLnpA29tL_G9jk4QaKkt2Wrek5AsidKkCnTJJ5_YXFgTxrDlp2KiGa_ijUhSXHpE/s320/MONDELEZ19+farmers.JPG" width="320" /></a></div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhhs3ZB6H2oUnluq256u3TcRYWQPsZgp-PNwXzS35p3b_19hVFVKzl_cpf7_3UkNZjlvVpMrHQDojTbqhj_XsgeqfpKuKPeo8KJ7gf9FGtmMdurvUVsTlGTkQSh9UXwET3Zwk6XOB0jXag/s1600/MONDELEZ19+community.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="181" data-original-width="293" height="197" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhhs3ZB6H2oUnluq256u3TcRYWQPsZgp-PNwXzS35p3b_19hVFVKzl_cpf7_3UkNZjlvVpMrHQDojTbqhj_XsgeqfpKuKPeo8KJ7gf9FGtmMdurvUVsTlGTkQSh9UXwET3Zwk6XOB0jXag/s320/MONDELEZ19+community.JPG" width="320" /></a></div>
<br />
And this is a final comment from the General Counsel:<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgyLBA4VOqLAKwC6JB_ZlLwAtFP7xXJuoSe2QfG-RyIEIq3ZvavmdDcu35ouy8wJO2w8XjVbHBAufsEB5XXs3xA43YjaD2AKIWr01Gb7i_WNSiSm3DH-U3QIx1QzocdiPEhw6Muay5N4Vc/s1600/MONDELEZ19+closingletter.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="155" data-original-width="290" height="170" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgyLBA4VOqLAKwC6JB_ZlLwAtFP7xXJuoSe2QfG-RyIEIq3ZvavmdDcu35ouy8wJO2w8XjVbHBAufsEB5XXs3xA43YjaD2AKIWr01Gb7i_WNSiSm3DH-U3QIx1QzocdiPEhw6Muay5N4Vc/s320/MONDELEZ19+closingletter.JPG" width="320" /></a></div>
So, not overly detailed, but clearly representing different dimensions of the Mondelez COVID-19 response. Mondelez also maintains <a href="https://www.mondelezinternational.com/coronavirus" target="_blank"><span style="color: blue;">a website page</span></a>, accessible from the homepage, with a detailed list of actions currently being taken across different aspects of the business.<br />
<br />
<a href="https://www.moodys.com/" target="_blank"><span style="color: blue;"><b>Moody's Investor Service</b></span></a>: <a href="https://assets.website-files.com/5a54fd01e519160001e4bbb9/5ea6f7c132df3e302da58875_Moodys_2019_CSR_Report.pdf" target="_blank"><span style="color: blue;"><b>2019 Corporate Responsibility Report</b></span></a><br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi3_f9Q9quDYTZYFuQmjJ5OxLuM_jJrZ8FOZWJS0d0yQl20gl6y2LToSr2XwiY9g6QZLtNIxSNgz5fRQ8x-IZcbG3aDD-WUR-n4Ls2JPCGXlAJULOZEh4T12XnSyuBORSHO64M95isU5nc/s1600/Moodys19.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="803" data-original-width="1040" height="308" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi3_f9Q9quDYTZYFuQmjJ5OxLuM_jJrZ8FOZWJS0d0yQl20gl6y2LToSr2XwiY9g6QZLtNIxSNgz5fRQ8x-IZcbG3aDD-WUR-n4Ls2JPCGXlAJULOZEh4T12XnSyuBORSHO64M95isU5nc/s400/Moodys19.JPG" width="400" /></a></div>
<br />
Moody's covers its response to COVID-19 through its CSR Report across different dimensions of its activities, with a focus on helping customers and markets navigate this pandemic and managing risk.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhPCrNR40IZmeZO_g6k8bz2byFr0g2xVtXB9s3lY0FU2kxz5kRPTpZ9t477fSdCLEUDD6f3748LULwivtfG68F27j83uZ5DGWB7iaqCNp1MpAA9EM35jaOtJwnVzadOm5kwwlTSquBED4Q/s1600/Moodys19+customers.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="271" data-original-width="304" height="284" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhPCrNR40IZmeZO_g6k8bz2byFr0g2xVtXB9s3lY0FU2kxz5kRPTpZ9t477fSdCLEUDD6f3748LULwivtfG68F27j83uZ5DGWB7iaqCNp1MpAA9EM35jaOtJwnVzadOm5kwwlTSquBED4Q/s320/Moodys19+customers.JPG" width="320" /></a></div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh3OfTSalZrGzZtdzecrEyT3XKlKIoreX0SRiobYbYll0jYHPNirYhMLiZtcHLew8foOpQlbmgGXiLSFQ1xSLa0eCI7BtSuYj87Yv6MIvFc2oVne3_a8v1G1lbQjXyKegctylT1YSgG8Qo/s1600/Moodys19community.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="234" data-original-width="307" height="243" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh3OfTSalZrGzZtdzecrEyT3XKlKIoreX0SRiobYbYll0jYHPNirYhMLiZtcHLew8foOpQlbmgGXiLSFQ1xSLa0eCI7BtSuYj87Yv6MIvFc2oVne3_a8v1G1lbQjXyKegctylT1YSgG8Qo/s320/Moodys19community.JPG" width="320" /></a></div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiv4aUWIdSXYjgiFJa4ytDnPzTTWjq8dgKCXyzYKuFvjIOmtKviQZZH2wKfXnlAmIMMVxs9xwG_SH_QcPdfPUmQ8Iq2V6YnUvaiJCUYDFM0_30S1SEzl8nawewVrhlufJwPOddEG5oonxc/s1600/Moodys19smallbiz.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="295" data-original-width="533" height="176" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiv4aUWIdSXYjgiFJa4ytDnPzTTWjq8dgKCXyzYKuFvjIOmtKviQZZH2wKfXnlAmIMMVxs9xwG_SH_QcPdfPUmQ8Iq2V6YnUvaiJCUYDFM0_30S1SEzl8nawewVrhlufJwPOddEG5oonxc/s320/Moodys19smallbiz.JPG" width="320" /></a></div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhJtsOtKrdK9-xq8HwDsmzFR-uQJFy-jrDu1hWiZzg9TfvAgIlO87z_Xn91cOx7EV-jg0DiO1tENpOvNjjtx6UTkvkPg9UCAlPTtLnZBR2hyphenhyphenRnIkoSM8wUjp0KrVXpNuK4MAeRfkAeMc9M/s1600/Moodys19risk.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="164" data-original-width="578" height="112" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhJtsOtKrdK9-xq8HwDsmzFR-uQJFy-jrDu1hWiZzg9TfvAgIlO87z_Xn91cOx7EV-jg0DiO1tENpOvNjjtx6UTkvkPg9UCAlPTtLnZBR2hyphenhyphenRnIkoSM8wUjp0KrVXpNuK4MAeRfkAeMc9M/s400/Moodys19risk.JPG" width="400" /></a></div>
<br />
Interestingly, as an employer of 11,000 people worldwide, Moody's makes no reference to what it's doing to support its employees through the challenges of COVID-19, choosing to focus on market and customer-facing actions. Moody's coverage of its COVID-19 response is prominent on the company's homepage and covered in a <a href="https://about.moodys.io/cvblog" target="_blank"><span style="color: blue;">coronavirus blog</span></a>. You can also download a Moody's <a href="https://assets.website-files.com/5d87764b8de89c66a89d319b/5eb98658a7f227b95c7033b1_BP61229_Moodys%20Response%20to%20COVID-19_11May2020.pdf" target="_blank"><span style="color: blue;">COVID-19 status report</span></a>, an early example of what I suspect will be a flurry of standalone COVID-19 Response Reports that many companies will publish starting in late 2020 and through 2021, supplementing regular annual and sustainability reporting. Sooner or later, someone might even develop a standard for COVID-19 CSR Reports (GRI? Anyone? 😂)<br />
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjRZzjWFZyB0_b7GaClPSyvgX4wFd2NtjSQKOVUyU90GJX-aTP8f9zx4Xy2lYVEudtsIC85vjrWHJarCE_H0Aj3JJjKSNSuXIV3wNWCxmbIh-Pt5BN0yzIjaYnh02SxJcvw3FEXbVr1Cp0/s1600/Moodys+c-19+status.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="811" data-original-width="782" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjRZzjWFZyB0_b7GaClPSyvgX4wFd2NtjSQKOVUyU90GJX-aTP8f9zx4Xy2lYVEudtsIC85vjrWHJarCE_H0Aj3JJjKSNSuXIV3wNWCxmbIh-Pt5BN0yzIjaYnh02SxJcvw3FEXbVr1Cp0/s400/Moodys+c-19+status.JPG" width="385" /></a></div>
<br />
<br />
<b><a href="https://www.regencycenters.com/" target="_blank"><span style="color: blue;">Regency Centers:</span></a> <span style="color: blue;"><a href="https://regcorpweb.blob.core.windows.net/sitefinityfiles/docs/default-source/corporate-responsibility/2019-regency-centers-corporate-responsibility-reportbb14d28521204aabaf9fe0c1c49a6dbe.pdf?sfvrsn=7a349890_2" target="_blank"><span style="color: blue;">2019 Corporate Responsibility Report</span></a></span></b><br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi49MAydVuO_T9Vd7JD_2jyBz4SGXWW74AHwFQy-TATRR9SaAohlYwOlHeseJ9KLMhPIIN_lPJok0cNah7KF9BXT87INCOdp0rFdIN7Z2IwNZyS0TAdkXLhjGdVP3wdJPySVLG3s0m48NA/s1600/REGENCYCCENTERS19+cover.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="808" data-original-width="1082" height="297" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi49MAydVuO_T9Vd7JD_2jyBz4SGXWW74AHwFQy-TATRR9SaAohlYwOlHeseJ9KLMhPIIN_lPJok0cNah7KF9BXT87INCOdp0rFdIN7Z2IwNZyS0TAdkXLhjGdVP3wdJPySVLG3s0m48NA/s400/REGENCYCCENTERS19+cover.JPG" width="400" /></a></div>
<br />
<div style="text-align: justify;">
Recency Centers publishes a strong report that is GRI, SASB and TCFD compliant, well-structured and nicely laid out. This applies also to their COVID-19 response, grouped on one page, covering support for employees, communities and ethical conduct. There's something to be said about grouping COVID-19 updates on one page (or two) - providing a sense of scale and coverage to a company's response, This way, the reader can appreciate the company has a considered response, rather than a fragmented (uncoordinated) one. </div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjLRCi8YpCkvO-L0T8IZ1PYm5AF1vNEKSFys2quhj1dohg8qqYnfJdtCPrT-Mv8HxeotForDm25PlOMXCFEgf53p_Sxdp3MC238uRq6gKthsPg18gkNBddmkbySVez-OGI6sRb9NX3Sbs0/s1600/REGENCYCCENTERS19+covid.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="683" data-original-width="1072" height="253" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjLRCi8YpCkvO-L0T8IZ1PYm5AF1vNEKSFys2quhj1dohg8qqYnfJdtCPrT-Mv8HxeotForDm25PlOMXCFEgf53p_Sxdp3MC238uRq6gKthsPg18gkNBddmkbySVez-OGI6sRb9NX3Sbs0/s400/REGENCYCCENTERS19+covid.JPG" width="400" /></a></div>
<br />
<b><a href="https://news.samsung.com/global/" target="_blank">Samsung Electronics</a>:</b> <a href="https://images.samsung.com/is/content/samsung/p5/uk/aboutsamsung/pdf/Sustainability_report_2020_en_F.pdf" target="_blank"><b>2020 Sustainability Report</b></a><br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiOI0kqIho_E_ctS8OIq4JUJo4VsQQYz2l6vfcL-eT_uteTAiC6n8jFUZ8Ny4LKFP1R2Tnp0VHaHse2JE1uimIKN3yCxpqyZfKIOvY1i9eqDxFX1QKeaTWHEZBzjEiDsbEVqggCDdg8TOc/s1600/SAMSUNG2020+cover.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="868" data-original-width="681" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiOI0kqIho_E_ctS8OIq4JUJo4VsQQYz2l6vfcL-eT_uteTAiC6n8jFUZ8Ny4LKFP1R2Tnp0VHaHse2JE1uimIKN3yCxpqyZfKIOvY1i9eqDxFX1QKeaTWHEZBzjEiDsbEVqggCDdg8TOc/s320/SAMSUNG2020+cover.JPG" width="251" /></a></div>
<br />
<br />
<div style="text-align: justify;">
Samsung Electronics has one of the most extensive (and impressive) examples of coverage on COVID-19, and, in this 13th Sustainability Report, introduces a dedicated chapter covering the COVID response and other mentions throughout the report. Specifically, the CEO opens up with understanding the challenges everyone faces and wishing everyone well. Nice. Then a dedicated chapter covering Samsung's COVID response for employees, suppliers, customers and some stories.</div>
<div style="text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgOMHBQfpiD-PGkMQQz4D2wM9XAGRxsJR_zjwj6tPbn4wVI7x0Joz8DCN9Qlr8gGHYdVi-Z2TVUQXzIWrmxV1Qyu_uEV-v516OjWoccKUn938f7THndewXUZkmipmarWfPuhpwiWO9am4E/s1600/SAMSUNG+2020+covid1.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="811" data-original-width="1353" height="238" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgOMHBQfpiD-PGkMQQz4D2wM9XAGRxsJR_zjwj6tPbn4wVI7x0Joz8DCN9Qlr8gGHYdVi-Z2TVUQXzIWrmxV1Qyu_uEV-v516OjWoccKUn938f7THndewXUZkmipmarWfPuhpwiWO9am4E/s400/SAMSUNG+2020+covid1.JPG" width="400" /></a></div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhYmdmgkf2mCAh-9U-GInXocbJL0GwcZsOjlmBLF3MSKa9BvwuajIo0YY679M7mtGsx5YLARl1XrWDxU_jPPZeIlFq6ect0VRG0jbApKOBJj8bzsSFG_ngEbxYcWYmm-Up7PR-yuD5chzo/s1600/SAMSUNG+2020+covid2.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="806" data-original-width="1362" height="236" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhYmdmgkf2mCAh-9U-GInXocbJL0GwcZsOjlmBLF3MSKa9BvwuajIo0YY679M7mtGsx5YLARl1XrWDxU_jPPZeIlFq6ect0VRG0jbApKOBJj8bzsSFG_ngEbxYcWYmm-Up7PR-yuD5chzo/s400/SAMSUNG+2020+covid2.JPG" width="400" /></a></div>
<br />
<div style="text-align: justify;">
In particular, thanks to COVID, we meet Kim. Kim, I assume, is a fictitious employee and Samsung shares the changes to her day as a result of COVID-19 measures in the work environment. I note she didn't take time for ice-cream, but maybe this wasn't a typical day!</div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjtd1069z35D_tDKr_KycIcVkC0jNTU4Qkjmy4QlhFKXatodjXKf8pQ6zXBs_yt4wbMr_0gPFElaMbCjsUE_V91YRJnP2R2lxq55XH3gB3I86XdtCEJIZvnCgyxpMddk6Oi8_sX0ucb44U/s1600/SAMSUNG2020+KIM.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="888" data-original-width="702" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjtd1069z35D_tDKr_KycIcVkC0jNTU4Qkjmy4QlhFKXatodjXKf8pQ6zXBs_yt4wbMr_0gPFElaMbCjsUE_V91YRJnP2R2lxq55XH3gB3I86XdtCEJIZvnCgyxpMddk6Oi8_sX0ucb44U/s400/SAMSUNG2020+KIM.JPG" width="315" /></a></div>
<div class="separator" style="clear: both; text-align: center;">
<br /></div>
<div style="text-align: justify;">
Beyond this, Samsung shares in the dedicated COVID-19 chapter, (and in a case study later in the report) how the company helped boost mask production in Korea by 51% through deploying support personnel to optimize the production process for local mask-makers, and engaged more than 100,000 employees in brainstorming and debating ideas to address COVID-related challenges. Samsung also references COVID-19 in its risk management section and the establishment of a separate COVID-19 risk monitoring and response organization. All in all, a comprehensive and creative disclosure on COVID from Samsung, demonstrating a holistic approach to protecting different stakeholders.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<b style="text-align: justify;"><a href="https://www.st.com/content/st_com/en.html" target="_blank">STMicroelectronics</a>:</b><span style="text-align: justify;"> </span><b><a href="https://sustainabilityreports.st.com/sr20/_assets/downloads/entire_st_sr20.pdf" style="text-align: justify;" target="_blank">2020 Sustainability Report</a> </b><span style="text-align: justify;"> </span></div>
<div style="text-align: justify;">
Briefest of mentions in the report. Cursory mention by the CEO and a short reference to triggering risk management protocols to support employees and maintain supply chain continuity. One nice touch: Thank you to report contributors who worked to complete the report in lockdown.</div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizr2C-6xt6X6Vi3zO6vTPZxp8gCbDxWmVq_qpw1xwHnr9KgH71SGa97XaOPYws5byAcyFzpHRNtLig5WTrjHU9uCTCSXLFSb0X6Kw8IHm524qg796OpTp7prcxdohaGcw8B1YVe36sAxY/s1600/STM20covidty.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="164" data-original-width="547" height="95" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizr2C-6xt6X6Vi3zO6vTPZxp8gCbDxWmVq_qpw1xwHnr9KgH71SGa97XaOPYws5byAcyFzpHRNtLig5WTrjHU9uCTCSXLFSb0X6Kw8IHm524qg796OpTp7prcxdohaGcw8B1YVe36sAxY/s320/STM20covidty.JPG" width="320" /></a></div>
<br />
There is no mention of COVID-19 on this company's website 😩.<br />
<br />
<br />
<div style="text-align: center;">
********************</div>
<div style="text-align: center;">
<br /></div>
<div style="text-align: justify;">
Reporting is never easy and reporting in CoronaWorld is even less easy. Well done to all these companies and others who are maintaining reporting, with or without references to their COVID response in this period. I have no doubt that the pressures at this time on all businesses could easily turn into an excuse to delay/shelve disclosure. Having said that, the way companies are behaving through this pandemic is a direct reflection of their values. Does no COVID disclosure = no values? Well, that might be going a little far, but no disclosure certainly risks eroding stakeholder trust. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
What's the best way to disclose? Report? Web? Social media? Answer: All of the above. But failing to include any form of COVID response in sustainability reports publishing this year is a missed opportunity and one that stakeholders are not likely to forget. Even ice cream may not help.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<span style="color: #333333; font-family: inherit; font-size: xx-small; text-align: left;"><span style="text-align: justify;">e</span>laine cohen, CSR consultant, Sustainability Reporter, HR Professional, Ice Cream Addict. Owner/Manager of <span style="color: blue; text-align: justify;"><a href="http://www.b-yond.biz/" style="color: #0066cc;" target="_blank"><b>Beyond Business Ltd</b></a></span><span style="text-align: justify;">, </span>an inspired Sustainability Strategy and Reporting firm having supported <b>107 </b></span><span style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: xx-small; text-align: left;"><span style="font-family: inherit;"><a href="http://www.b-yond.biz/clients-reports" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;"><b>client reports</b></span></a><span style="text-align: justify;"> to date; </span><b style="text-align: justify;">author </b><span style="text-align: justify;">of </span><a href="http://www.b-yond.biz/our-books" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">three books and several chapters</span></a><span style="text-align: justify;"> on Sustainability Reporting and the Human Resources connection to CSR; frequent </span><b style="text-align: justify;">chair and speaker </b><span style="text-align: justify;">at sustainability events and </span><b style="text-align: justify;">judge</b><span style="text-align: justify;"> in several sustainability awards programs each year. Contact me via </span><a href="http://www.twitter.com/elainecohen" style="color: #0066cc; text-align: justify;" target="_blank">Twitter</a><span style="text-align: justify;"> , </span><a href="https://www.linkedin.com/in/elainecohen/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">LinkedIn</span></a><span style="text-align: justify;"> or via </span><a href="http://www.b-yond.biz/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">Beyond Business</span></a><span style="text-align: justify;"> </span></span><span style="font-family: arial, tahoma, helvetica, freesans, sans-serif; text-align: justify;"> </span><span style="font-family: arial, tahoma, helvetica, freesans, sans-serif; text-align: justify;"> </span></span></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<br /></div>
<br />elainehttp://www.blogger.com/profile/07433863039389159395noreply@blogger.com0tag:blogger.com,1999:blog-8008724049496903547.post-36891768879061072692020-05-06T14:19:00.000+03:002020-05-06T14:19:51.420+03:00A winning formula for sustainability reporting<div style="text-align: justify;">
Last week, I was delighted to co-host the <a href="https://csrmatters.com/asra-2019-winners/" target="_blank">Asia Sustainability Reporting Awards (2019)</a> annual awards gala. I have been a partner of ASRA since its inception and a judge every year, reading and reviewing almost all report submissions in almost all categories. Usually, I cannot attend the in-person event in Singapore, rather a long trip for me for one evening. But this year, lockdown offered a silver lining, and the virtual event enabled me to both co-host and share reporting insights, and partner with the creator of ASRA, Rajesh Chhabara, to reveal the winning reports in an exciting 2-hour ceremony attended by hundreds of reporters representing companies around Asia. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
In this post, in addition to congratulating 👍all the entrants and winners, I'll focus on the Charoen Pokphand Group, whose team has made obvious efforts to enhance the quality of reporting, winning several awards this year, both as a Group and also through its reporting subsidiaries. In total, the Group won <span style="color: red;"><b>11</b></span> awards across <span style="color: red;"><b>9</b></span> categories - including the coveted Asia's Report of the Year, ASRA's highest honor. Of the total 11 awards, 7 were at the group level and 4 were for two subsidiaries (Charoen Pokphand Foods plc and C.P. Intertrade Co., Ltd)</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
</div>
<span style="text-align: justify;">This year, we simplified the scoring methodology for the judging panel, with a scoring framework in five broad content buckets:</span><br /><div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<span style="color: red;"><b><u>CONTENT:</u></b>
</span>Does the report reflect a strategic approach to sustainability? Is there clear relevance to the business? Are material topics identified and is the materiality process clearly described? Does the (integrated) report describe value creation for all stakeholders?<br />
<b><span style="color: red;"><u>CLARITY:</u></span></b>
Does the report present management approach and multi-year data clearly? Does the report properly use leading reporting standards such as GRI, SASB, UNGC, Integrated Reporting Framework<ir> or other sector guidance? Are graphs and charts clearly presented? Is the report easy to navigate and information quick to locate? </ir><br />
<ir><b><span style="color: red;"><u>COMMITMENT:</u></span> </b>Does the report clearly state targets and performance against targets? Is the report externally assured? Does the report describe challenges and issues rather than only "good news"? Is there evidence of effective stakeholder engagement that underpins strategy and materiality? Is there alignment with the Sustainable Development Goals demonstrating commitment beyond direct impacts? Does the CEO or Chair introduction effectively reflect leadership commitment?</ir><br />
<ir><b><span style="color: red;"><u>CREATIVITY:</u></span></b>
Do creative communication and visual elements make this report stand out from the crowd? Is the overall look and feel appealing? Are case studies effectively used to provide examples of practice? Is this report credible? </ir><br />
<span style="color: red;"><b><u>CATEGORY:</u></b></span> Does the report provide a full and relevant disclosure specifically for the Awards category in which it was entered, covering the key elements comprehensively and transparently?<br />
<br />
For a list of all the 2019 winners, see <a href="https://csrmatters.com/asra-2019-winners/" target="_blank">here</a>.<br />
But now, back to THE winner.<br />
<br /></div>
<div>
<div style="text-align: justify;">
<span style="color: blue;"><a href="https://www.cpgroupglobal.com/about"><span style="color: blue;"><b>Charoen Pokphand Group</b></span></a> </span>is a conglomerate headquartered in Thailand, employing a team of more than 300,000, and operating across many industries including agriculture, food, retail and distribution, media and telecommunications, e-commerce, property development, automotive and industrial, pharmaceutical and finance sectors in 21 countries around the world. </div>
<br />
Let's have a look at what distinguished Charoen Popkhand's reporting in ASRA 2019:</div>
<div>
<br /></div>
<div>
<div style="text-align: justify;">
The Group <a href="https://www.cpgroupglobal.com/portals/0/pdf/CPG-SR2018-ENG.pdf"><span style="color: blue;">Sustainability Report 2018</span></a> goes under the theme of Force for a Sustainable Life. It's the Group's third report, and uses GRI Standards: Core option, and serves as a UNGC Communication on Progress. It's externally assured.</div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiP45MYnb4dI-AegAXcmtYx3U2kgoEhf7YRiub9b7LmbQAJDHxBkcQ4hSFpdrBw3Pg633spiewyL3UWI9DBYgtnShBD_sduMHttUqjONTR83CPb9gPMbmBKj6jcc80u58fivjmYATTT8ws/s1600/Charoen18+cover.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="906" data-original-width="754" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiP45MYnb4dI-AegAXcmtYx3U2kgoEhf7YRiub9b7LmbQAJDHxBkcQ4hSFpdrBw3Pg633spiewyL3UWI9DBYgtnShBD_sduMHttUqjONTR83CPb9gPMbmBKj6jcc80u58fivjmYATTT8ws/s400/Charoen18+cover.JPG" width="332" /></a></div>
<br />
<div style="text-align: justify;">
Several of the Group subsidiaries also report - something that makes sense for a conglomerate that operates in such diverse sectors. While one global report presents aggregated Group performance, stakeholders in different sectors and geographies have more specific information needs. </div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgJ079N5S7Wogw6TiiedxGBdNG5x8S8VwpRqbWk16ndr1KR-Ilkqw0cGTGiS6MrYswe_8wHts80aw7zEBzhdXjyuVriYTJok5mvnC89tKOwkjgHuDGRYPm9Q6BEFnJzz4To4vgXccDfSus/s1600/Charoen+18+subsidiary+reports.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="436" data-original-width="670" height="258" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgJ079N5S7Wogw6TiiedxGBdNG5x8S8VwpRqbWk16ndr1KR-Ilkqw0cGTGiS6MrYswe_8wHts80aw7zEBzhdXjyuVriYTJok5mvnC89tKOwkjgHuDGRYPm9Q6BEFnJzz4To4vgXccDfSus/s400/Charoen+18+subsidiary+reports.JPG" width="400" /></a></div>
<br />
Charoen Pokphand Group's Report of the Year winning formula included:<br />
<br />
<span style="color: red;"><b><u>CONTENT:</u></b></span><br />
A clear strategic approach to sustainability, expressed as the Heath- Health - Home Strategy.<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgqJuo1Q4HfeKb2FyBnK8PAXomGcj5QVKnZJTAUjcBbYVvNKg1XgWnzLBkdFymThtnEHjmLQZJ30NxxvbN7dwZCjpojn7xX1OmEaXWk9ESyvLvuqueC9hiiqWSer2-uqfi9FY_w-741e6M/s1600/CP18+strategic+framework.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="494" data-original-width="721" height="273" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgqJuo1Q4HfeKb2FyBnK8PAXomGcj5QVKnZJTAUjcBbYVvNKg1XgWnzLBkdFymThtnEHjmLQZJ30NxxvbN7dwZCjpojn7xX1OmEaXWk9ESyvLvuqueC9hiiqWSer2-uqfi9FY_w-741e6M/s400/CP18+strategic+framework.JPG" width="400" /></a></div>
<br />
Materiality presented by industry sector (according to the Group's business lines) as well as overall for the Group. The individual matrices show the relative positioning of the Group level sustainability topics - 12 topics in total.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi9RwasphOpQ2PjoFGLHOOU5Q-QNANU9F0RDbfGFKo5O7H6FIXxhfZCnY1IpvLFJoZPazTkuz-6MdlemIbZ9ojC1i5HGtlO8smalX93Ecs03Wzvg4Jk8Y5WJ6AFGwgPwhWoJnxFIUO9bvs/s1600/charoen18+materiality+subsuds.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="855" data-original-width="1444" height="236" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi9RwasphOpQ2PjoFGLHOOU5Q-QNANU9F0RDbfGFKo5O7H6FIXxhfZCnY1IpvLFJoZPazTkuz-6MdlemIbZ9ojC1i5HGtlO8smalX93Ecs03Wzvg4Jk8Y5WJ6AFGwgPwhWoJnxFIUO9bvs/s400/charoen18+materiality+subsuds.JPG" width="400" /></a></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
By now, anyone who follows my writings knows that I am not a fan of the <a href="http://csr-reporting.blogspot.com/2017/08/materiality-from-meaningless-to.html" target="_blank"><span style="color: blue;">materiality matrix</span></a> - I find the time spent in positioning dots in little squares could be better spent creating meaningful change. And if you are going to provide a materiality matrix by sector, then I would expect more sector-specific topics in the individual matrices, rather than a spot-the-dot exercise with all the same dots. Which just goes to show that even the Report of the Year might consider opportunities to further clarify and align reporting content. Notwithstanding, this is evidence of what appears to be serious consideration of sustainability priorities beyond the Group level, and transparency in presentation, and this, I think, is a good thing. </div>
<div style="text-align: justify;">
<b><span style="color: red;"><u><br /></u></span></b></div>
<div style="text-align: justify;">
<b><span style="color: red;"><u>COMMITMENT:</u></span> </b></div>
</div>
<span style="text-align: justify;">The Report is introduced with messages from the Senior Chairman, the Chairman and the CEO. </span><br />
<span style="text-align: justify;"><br /></span>
Multi-year targets are presented in each area, aligned with SDG priorities.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi22bUUVJNCS2rw4B3H4POJW3bHwXkTVqMMc93QlYEW-bwPZRJNWmy5tfPJGLe1TsfH1r-eT19dRiMWw7kHIqwA_Kd43Q3v6fb4iN_UlKVa25BKFaLQAwKJavhb1voQPqzEVR9U_54SI3c/s1600/Charoen18+SDG+alignment.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="707" data-original-width="1203" height="235" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi22bUUVJNCS2rw4B3H4POJW3bHwXkTVqMMc93QlYEW-bwPZRJNWmy5tfPJGLe1TsfH1r-eT19dRiMWw7kHIqwA_Kd43Q3v6fb4iN_UlKVa25BKFaLQAwKJavhb1voQPqzEVR9U_54SI3c/s400/Charoen18+SDG+alignment.JPG" width="400" /></a></div>
<br />
Progress against each of the targets is clearly noted.<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhbzPDENntb2CadPMY_VlOS_qK_JQ81EXZhN0mZqnN9Mby6ZqQd-tyKuagmnUZ2ZvIneWy221973vIMloYrI4-gyNHarOZ6fSTZ48HId7kyPgCVwYk2Umwvlu4sQu9nins5b8AGGG8fG1I/s1600/CHAROEN18+progress.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="818" data-original-width="1421" height="230" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhbzPDENntb2CadPMY_VlOS_qK_JQ81EXZhN0mZqnN9Mby6ZqQd-tyKuagmnUZ2ZvIneWy221973vIMloYrI4-gyNHarOZ6fSTZ48HId7kyPgCVwYk2Umwvlu4sQu9nins5b8AGGG8fG1I/s400/CHAROEN18+progress.JPG" width="400" /></a></div>
<div class="separator" style="clear: both; text-align: justify;">
As well as progress by SDG:</div>
<div class="separator" style="clear: both; text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh1rbXsD0NGGsWRBLnrTm3nLa7JQsdND0OpXxtSS5z6HVSsQpLte-mqgbp3lorIQavQxBKCtUH_9hQ5atq21CQ2WkK8Tv-nct8TvRyQadIqt6qKJi0rdlU00I5XxkVe-R-QnpI1ayBcLZs/s1600/Charoen18+SDG+Performance.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="850" data-original-width="1475" height="230" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh1rbXsD0NGGsWRBLnrTm3nLa7JQsdND0OpXxtSS5z6HVSsQpLte-mqgbp3lorIQavQxBKCtUH_9hQ5atq21CQ2WkK8Tv-nct8TvRyQadIqt6qKJi0rdlU00I5XxkVe-R-QnpI1ayBcLZs/s400/Charoen18+SDG+Performance.JPG" width="400" /></a></div>
<div class="separator" style="clear: both; text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: justify;">
In many sections, a description of the challenges the Group faces in driving improved performance is provided.</div>
<div class="separator" style="clear: both; text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiWDoKBFNDWaF0-3fqpi86txz6yBa6R8KJjlp-8qME_YkqMlEFscFlJQCOhqGHkHuKWrsPeTBw8nrDRl8ZK1mLWXYmQW8DxsolIoA3K-8NqBWVwYUZSBna1isH8rUd_g3tC6lgBhCXsvMc/s1600/Charoen18+challenges.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="446" data-original-width="384" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiWDoKBFNDWaF0-3fqpi86txz6yBa6R8KJjlp-8qME_YkqMlEFscFlJQCOhqGHkHuKWrsPeTBw8nrDRl8ZK1mLWXYmQW8DxsolIoA3K-8NqBWVwYUZSBna1isH8rUd_g3tC6lgBhCXsvMc/s320/Charoen18+challenges.JPG" width="274" /></a></div>
<span style="color: red;"><u><b>CLARITY:</b> </u></span><div>
<div style="text-align: justify;">
This report is GRI Standards, Core Option and UNGC COP compliant. Data is presented visually in dashboards or easy to read aesthetic summaries across all performance dimensions. In some cases, Group data is provided and also data by business line.</div>
<div style="text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjvcmZ2MHzwk4k17nPo-0I9sUEmu2qlr1ZkF8UFOaxSkNK0HdtNJ1QwMwLD0Nm-WV4cSwPHdyseFw3aLaRttXmPdauaUyG4kaI48GO74eBB8K3ge3Vhs7vAN_r_w9y882rtPV28Z2GwzwM/s1600/CHaroen18+HR+dashboard.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="664" data-original-width="555" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjvcmZ2MHzwk4k17nPo-0I9sUEmu2qlr1ZkF8UFOaxSkNK0HdtNJ1QwMwLD0Nm-WV4cSwPHdyseFw3aLaRttXmPdauaUyG4kaI48GO74eBB8K3ge3Vhs7vAN_r_w9y882rtPV28Z2GwzwM/s400/CHaroen18+HR+dashboard.JPG" width="333" /></a></div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg39l339rg5LpHvMxLHW5N0aaCrDCohHDM7EeMqV8dM_Rm8aqlWFnWljH2DorFXGVxrr7rsv6MikKcYTPgVHTwZUBEsypn2mZ7u3gWN0r07OHVc0kgNRHtQoclkBPxcy34KmTaz99uQMJc/s1600/CHaroen18+socialimpact+dashboard.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="715" data-original-width="1190" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg39l339rg5LpHvMxLHW5N0aaCrDCohHDM7EeMqV8dM_Rm8aqlWFnWljH2DorFXGVxrr7rsv6MikKcYTPgVHTwZUBEsypn2mZ7u3gWN0r07OHVc0kgNRHtQoclkBPxcy34KmTaz99uQMJc/s400/CHaroen18+socialimpact+dashboard.JPG" width="400" /></a></div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiMPrNgA3H-_JXyGJ1YVWjjZYHANek4SIkSbslHlKJu6siXKt7OsxRl7-z0mTaolsr7RuciGrOl0wczW1-WpSpsOJxbXfAhr21ocrf3BWrhbdMqEC20zNrAraI1BgljCOg32FJDBXspnE4/s1600/CHaroen18+waste+data.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="825" data-original-width="671" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiMPrNgA3H-_JXyGJ1YVWjjZYHANek4SIkSbslHlKJu6siXKt7OsxRl7-z0mTaolsr7RuciGrOl0wczW1-WpSpsOJxbXfAhr21ocrf3BWrhbdMqEC20zNrAraI1BgljCOg32FJDBXspnE4/s400/CHaroen18+waste+data.JPG" width="325" /></a></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<b><span style="color: red;"><u>CREATIVITY:</u></span></b> </div>
<div style="text-align: justify;">
A colorful and visually creative report, using many design elements across different content areas, ranging from images, thumbnails, infographics and charts.</div>
<div style="text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjDXG8_kBZv7VU5Vd8zaCeGdZYVhEJQa8Hk9_ErwuqsP9I5dcDJ0Ch7N-fy7BFvCY-icO8kSwT4EPSISTSDzZmHG3RjUt0qw59jgolla2TWzdLszRwkprrl9WBzsEK7_PSplnbR247ePi8/s1600/Charoen18+bananaa.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="306" data-original-width="404" height="302" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjDXG8_kBZv7VU5Vd8zaCeGdZYVhEJQa8Hk9_ErwuqsP9I5dcDJ0Ch7N-fy7BFvCY-icO8kSwT4EPSISTSDzZmHG3RjUt0qw59jgolla2TWzdLszRwkprrl9WBzsEK7_PSplnbR247ePi8/s400/Charoen18+bananaa.JPG" width="400" /></a></div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiDs7iAlGpAjrWoVtH0weKmFNqF0U3q-2LOlvls2wgbkE-44E5B48gLdPpFKjTUJJpdZMzVxckifHQllRPktsUbUiHjqOP96hNzwdOIxTrekSjPYQUqtwwJn_vaEhjgKtMUx0aU_6uMPDM/s1600/charoen18+human+rights+approach.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="782" data-original-width="1413" height="221" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiDs7iAlGpAjrWoVtH0weKmFNqF0U3q-2LOlvls2wgbkE-44E5B48gLdPpFKjTUJJpdZMzVxckifHQllRPktsUbUiHjqOP96hNzwdOIxTrekSjPYQUqtwwJn_vaEhjgKtMUx0aU_6uMPDM/s400/charoen18+human+rights+approach.JPG" width="400" /></a></div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjAHN7FSbyk7Le26rf5cnv_F5aAu0zpvUkJ3oYPG7D6t9XaEjoaUOuWw_N3DIlGIELgbUtAQHqV1bW6040K2oiGkFDYpNnFerVW97svEw-nxCnZ4YdUDgomnLbXLXGrYrsoslmhYXbUnew/s1600/Charoen18+rawmats.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="813" data-original-width="675" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjAHN7FSbyk7Le26rf5cnv_F5aAu0zpvUkJ3oYPG7D6t9XaEjoaUOuWw_N3DIlGIELgbUtAQHqV1bW6040K2oiGkFDYpNnFerVW97svEw-nxCnZ4YdUDgomnLbXLXGrYrsoslmhYXbUnew/s400/Charoen18+rawmats.JPG" width="331" /></a></div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi4Ui3R2n7GWeNULevqejVO6wJ_Lm_HPA78T2K2KAbScdSU5dgfitXmCxT5k05zRFbcx_P00qM3BCLw1dt2bCQaalN0AR0RF3EfyWurvic1KM5kacl8kIwo4LR81OKD7yuMGCi9U98_RF4/s1600/Charoen18+social+impact.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="760" data-original-width="668" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi4Ui3R2n7GWeNULevqejVO6wJ_Lm_HPA78T2K2KAbScdSU5dgfitXmCxT5k05zRFbcx_P00qM3BCLw1dt2bCQaalN0AR0RF3EfyWurvic1KM5kacl8kIwo4LR81OKD7yuMGCi9U98_RF4/s400/Charoen18+social+impact.JPG" width="351" /></a></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
The Report is peppered with Case Studies that provide useful examples of practice and note outcomes of different initiatives. (Incidentally, in a poll of attendees at the ASRA Winners Ceremony last week, <b><span style="color: red;">37% </span></b>of respondents said that case studies were the most interesting parts of any Sustainability Report - closely followed by the Materiality Analysis at 29%). </div>
<div style="text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgVqI9J5ykBVy3zjm6oxazTJhsFhYzeLRXmos1ZoGtS1n8ez3Bw2Jh8U0G3B3LJ35dZUiYSPPP6DNjBeAfXRVcu_CUSpeFp2ZirWj6Kc6lEm4tWHCuH1CjyfIKvZzyeSfbMdfxrCufXSaw/s1600/Charoen18+case+study46.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="789" data-original-width="673" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgVqI9J5ykBVy3zjm6oxazTJhsFhYzeLRXmos1ZoGtS1n8ez3Bw2Jh8U0G3B3LJ35dZUiYSPPP6DNjBeAfXRVcu_CUSpeFp2ZirWj6Kc6lEm4tWHCuH1CjyfIKvZzyeSfbMdfxrCufXSaw/s400/Charoen18+case+study46.JPG" width="340" /></a></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhVwuG7xUP2nEwD8uflt5r4rc321gKD23Qpk3BR-LWWId3JuWOaFBagAcyDrWTEMBlDNTaWrIezV5OPgO3oFCpP3YNrb0mDGPbf8S0VMkElUGdESAqHbpf-U3j2uxKLpWW7nPNslft8EMU/s1600/Charoen18+case+study29.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="783" data-original-width="660" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhVwuG7xUP2nEwD8uflt5r4rc321gKD23Qpk3BR-LWWId3JuWOaFBagAcyDrWTEMBlDNTaWrIezV5OPgO3oFCpP3YNrb0mDGPbf8S0VMkElUGdESAqHbpf-U3j2uxKLpWW7nPNslft8EMU/s400/Charoen18+case+study29.JPG" width="336" /></a></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<span style="color: red;"><b><u>CATEGORY:</u></b></span> </div>
<div style="text-align: justify;">
The creative presentation of the Report earned Charoen Pokphand Group the top honor in the Asia's Best Sustainability Report (Design) category. In other categories such as Environmental Reporting and Supply Chain Reporting, in which the Group also earned first place, I'll leave you to delve into these different sections and see the winning formula for yourself.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Sustainability Reporting is no simple task, and it's even less simple when you are reporting as a conglomerate across diverse business lines. Charoen Pokphand settled on a mix of Group-level reporting with a selection of elements by business line, which works well on the whole for key stakeholder groups. And, it certainly was a winning formula that impressed the judges! </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<br /></div>
<span style="text-align: justify;"><br /></span>
<br />
<span style="background-color: white;"><span style="color: #333333; font-family: inherit; font-size: xx-small;"><span style="text-align: justify;">e</span>laine cohen, CSR consultant, Sustainability Reporter, HR Professional, Ice Cream Addict. Owner/Manager of <span style="color: blue; text-align: justify;"><a href="http://www.b-yond.biz/" style="color: #0066cc;" target="_blank"><b>Beyond Business Ltd</b></a></span><span style="text-align: justify;">, </span>an inspired Sustainability Strategy and Reporting firm having supported <b>107 </b></span><span style="color: #333333; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: xx-small;"><span style="font-family: inherit;"><a href="http://www.b-yond.biz/clients-reports" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;"><b>client reports</b></span></a><span style="text-align: justify;"> to date; </span><b style="text-align: justify;">author </b><span style="text-align: justify;">of </span><a href="http://www.b-yond.biz/our-books" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">three books and several chapters</span></a><span style="text-align: justify;"> on Sustainability Reporting and the Human Resources connection to CSR; frequent </span><b style="text-align: justify;">chair and speaker </b><span style="text-align: justify;">at sustainability events and </span><b style="text-align: justify;">judge</b><span style="text-align: justify;"> in several sustainability awards programs each year. Contact me via </span><a href="http://www.twitter.com/elainecohen" style="color: #0066cc; text-align: justify;" target="_blank">Twitter</a><span style="text-align: justify;"> , </span><a href="https://www.linkedin.com/in/elainecohen/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">LinkedIn</span></a><span style="text-align: justify;"> or via </span><a href="http://www.b-yond.biz/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">Beyond Business</span></a><span style="text-align: justify;"> </span></span><span style="font-family: arial, tahoma, helvetica, freesans, sans-serif; text-align: justify;"> </span><span style="font-family: arial, tahoma, helvetica, freesans, sans-serif; text-align: justify;"> </span></span></span></div>
elainehttp://www.blogger.com/profile/07433863039389159395noreply@blogger.com0tag:blogger.com,1999:blog-8008724049496903547.post-38764915943047782372020-04-09T14:46:00.002+03:002020-04-09T14:47:22.110+03:00An Ode to Reporters in CoronaWorld<div style="text-align: justify;">
As the world is in lockdown and the meaning of sustainability has truly hit home, thousands of reporting professionals around the world are battling against all odds to complete and publish their current Sustainability Reports. First and foremost, the CSR Reporting Blog wishes everyone good health! We hope you are all staying safe, staying home and staying optimistic. And if you are challenged to deliver your Sustainability Report at this time, here's a little Ode to Reporters in CoronaWorld everywhere:</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Oh dear, oh my, I don’t know what to do<br />
It’s the height of reporting season and ours is now due<br />
We’re creating a CSR report designed to inspire us<br />
But now, it seems, our report has the virus<br />
<br />
So what should we do when we all are in lockdown?<br />
Not publishing now would be such a letdown<br />
I’ve tried to energize the team to engage<br />
But we can’t even get past the title page<br />
<br />
Our data collection has gone up the spout<br />
To stakeholders, there’s simply no reaching out<br />
The CEO is not interested, she’s in bed with corona<br />
Even the printer has run out of toner<br />
<br />
Reporting is hard when we’re social distancing<br />
Our case studies suddenly don’t seem so interesting<br />
No-one is really quite up to the task<br />
Reporting’s not easy when you’re wearing a mask<br />
<br />
Corona they say mitigates climate change<br />
Even though it’s not great for the stock exchange<br />
When it’s over, the planet may have been saved<br />
But if we’re still solvent, I’ll be quite amazed<br />
<br />
So what should I do with our sustainability report?<br />
Go ahead anyway or decide to abort?<br />
If only working virtually were not such a pain<br />
It seems that everyone has locked down their brain<br />
<br />
I called GRI, SASB and CDP<br />
But whether to report none can agree<br />
Which is hardly surprising as you all know<br />
When defining materiality, consensus is no-go<br />
<br />
I thought I’d get help from TCFD<br />
As corona is saving the planet you see<br />
With no flights, no travel and consumption is capped<br />
Maybe their guidelines can now be scrapped
<br />
<br />
So stressful, so trying, this virus is awful<br />
Even visiting my mom is now not lawful<br />
As always a solution to stress is ice cream<br />
Preferably injected into your bloodstream
<br />
<br />
Our company is closed, our offices shut<br />
At least I can get by without a haircut<br />
But even if we don’t manage to hit the deadline<br />
"Delayed by corona" will be good as our tagline<br />
<br />
So come on reporters, keep your spirits high<br />
It’s time to prepare the copy and verify<br />
With everyone working from home in their room<br />
You can publish your ESG report on ZOOM</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<br /></div>
<span style="font-family: inherit; font-size: x-small;"><span style="background-color: white;"><span style="color: #333333; text-align: justify;">e</span></span>laine cohen, CSR consultant, Sustainability Reporter, HR Professional, Ice Cream Addict. Owner/Manager of <span style="background-color: white;"><span style="color: blue; text-align: justify;"><a href="http://www.b-yond.biz/" style="color: #0066cc; text-align: justify;" target="_blank"><b>Beyond Business Ltd</b></a></span><span style="color: #333333; text-align: justify;">, </span></span>an inspired Sustainability Strategy and Reporting firm having supported <b>107 </b></span><span style="background-color: white; font-size: x-small;"><span style="font-family: inherit;"><a href="http://www.b-yond.biz/clients-reports" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;"><b>client reports</b></span></a><span style="color: #333333; text-align: justify;"> to date; </span><b style="color: #333333; text-align: justify;">author </b><span style="color: #333333; text-align: justify;">of </span><a href="http://www.b-yond.biz/our-books" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">three books and several chapters</span></a><span style="color: #333333; text-align: justify;"> on Sustainability Reporting and the Human Resources connection to CSR; frequent </span><b style="color: #333333; text-align: justify;">chair and speaker </b><span style="color: #333333; text-align: justify;">at sustainability events and </span><b style="color: #333333; text-align: justify;">judge</b><span style="color: #333333; text-align: justify;"> in several sustainability awards programs each year. Contact me via </span><a href="http://www.twitter.com/elainecohen" style="color: #0066cc; text-align: justify;" target="_blank">Twitter</a><span style="color: #333333; text-align: justify;"> , </span><a href="https://www.linkedin.com/in/elainecohen/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">LinkedIn</span></a><span style="color: #333333; text-align: justify;"> or via </span><a href="http://www.b-yond.biz/" style="color: #0066cc; text-align: justify;" target="_blank"><span style="color: blue;">Beyond Business</span></a><span style="color: #333333; text-align: justify;"> </span></span><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; text-align: justify;"> </span><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; text-align: justify;"> </span></span>elainehttp://www.blogger.com/profile/07433863039389159395noreply@blogger.com0tag:blogger.com,1999:blog-8008724049496903547.post-52687690645618565012019-09-23T15:43:00.000+03:002019-09-23T15:43:56.561+03:00GRI: SASB: The Sector Specificity Question<div style="text-align: justify;">
So, since <a href="http://csr-reporting.blogspot.com/2019/09/sasb-hot-air-gri-cold-shower.html" target="_blank"><span style="color: blue;">my last pos</span>t</a> broke the sound barrier with hundreds of reactions which mainly expressed support for the notion that collaboration rather than confrontation wouldn't be such a bad thing, I will delve a little deeper into one aspect of The Great GRI-SASB Showdown which didn't receive that much airtime in the multiple debates about mandatory or voluntary ESG disclosure. It's the question of specificity. Dr Madelyn Antoncic, SASB Chief Executive, made this point:</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<i>"SASB’s unique approach is well aligned with growing consensus among market participants that in order to integrate ESG matters into governance, strategy, risk management and performance monitoring, consistent with the TCFD recommendations, <b>sustainability must be viewed on an industry specific level</b>........ Indeed in order for any approach for corporate sustainability to be useful, it must address idiosyncratic, not systemic, risks. In other words, it must address not just climate change but climate change industry specific manifestations."</i></div>
<div style="text-align: justify;">
<i><br /></i></div>
<div style="text-align: justify;">
Now, I agree with this up to a point. I agree that business is done in industries and sectors, and each has their own specific material impacts. Having said that, business is done primarily by companies, and each company is unique in structure, geography, size, strategy, leadership etc., which means that its material impacts are also unique. So using pre-fab materiality à la SASB may well serve as a safety net to ensure relevant topics by industry are not overlooked, but it may not serve as a comprehensive basis for disclosure for every company in that industry. It also could lead to cutting corners where pre-fab materiality is blindly accepted without due process.<br />
<br />
Nonetheless, SASB has done what GRI failed to do. Sector-based disclosures never reached the top of GRI's to-do list. In fact, I wrote about this back in 2013, in a post entitled "<a href="http://csr-reporting.blogspot.com/2013/09/will-sasb-make-g4-redundant.html" target="_blank"><span style="color: blue;">Will SASB make G4 redundant?</span></a>" where I looked at the implications of the new SASB Standards on a specific sector basis. My closing line in that post is actually no less relevant today than it was then: "<i>.....we perhaps ought to remind ourselves what Sustainability Reporting was designed to do in the first place. Account for company impacts on all stakeholders. Both GRI and SASB have an important contribution, I feel. The shame is that both appear to live on different planets, while the companies that are reporting are all on the same planet, and, more importantly, we are too!</i>" Plus ça change.....<br />
<br />
While SASB has developed standards for 77 industries in 11 sectors, <a href="https://www.globalreporting.org/information/sector-guidance/Pages/default.aspx" target="_blank"><span style="color: blue;">GRI has 10 sector disclosures</span></a>. There are differences in the approach to both - in fact, what GRI calls a sector, SASB mainly calls an industry. Oh dear, and I thought this was going to be easy....<br />
<br />
I decided to see if I could substantiate the intuitive remarks I made in my last post: "<i>Instead of debating which one is less perfect, whether they should be mandated or not and which definition of materiality should apply, GRI and SASB should roll up their sleeves and get down to some serious work with companies and with each other to help drive better implementation of sustainable development practices and disclosure. If we do nothing more than ensure existing standards are fully adopted by all companies, consistently, auditably and comprehensively, perhaps with a few tweaks here and there, we will have done a lot</i>." In other words, let's work together with what we have and make it work. <b>At some point, you just gotta stop checking if the oven works and make a start on the cooking. </b><br />
<b><br /></b>
There is a small number of companies who use SASB Standards. Not quite enough yet to consider whether this enables sector comparability or even use of similar standards, but enough for me to handpick a few reports that cover both. I decided to check a few things out:<br />
<br />
<span style="color: red;">(1) <b>Are SASB Standards really a useful tool? </b></span>To what extent is there more information than that required by a GRI report which is well prepared? In checking the delta when reporting both SASB and GRI, what value does sector-specific SASB add over and above what is already in GRI standards?<br />
<span style="color: red;">(2) </span><b><span style="color: red;">What does sector specificity actually add?</span> </b>Is there a meaningful level of specificity that makes it easy for companies to recognize themselves in the sector?<br />
<span style="color: red;">(3) <b>Who needs to budge to turn this into one Standard that's useful for all?</b></span> Haha. No-one wants to budge. But maybe they should.<br />
<br />
I'll start with Bloomberg. With Bloomberg putting all their weight behind the development of the SASB Standards, it's clear that they would use them, even if as a privately held company, Bloomberg is not required to go the full Monty.<br />
<br />
<a href="https://data.bloomberglp.com/company/sites/48/2019/04/Impact-Report-WEB.pdf" target="_blank"><span style="color: blue;">Bloomberg's 2018 Impact Report</span></a> was prepared in accordance with (1) GRI Standards Comprehensive
Option (including the Media Sector Disclosures) (2) SASB Standards (3) FSB Task Force
on Climate-related Financial Disclosures (TCFD)
guidelines and (4) "select content from CDP". That's four reporting frameworks. Convergence, anyone?<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjMRPzr0_QbxcE2IlJFsJloVZe6Pd-X_BPdLzmkHP2l_Acd9u7UEqOENb4JQtBOIsR751uFZ5mcPMbrFBPzrN_QZAF9sxWmZkhXoLr1DLobeZtvNssUe7C-hf5RNqHC1nJFAQ5bVuM0YeI/s1600/Bloomberg+2018+cover.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="825" data-original-width="684" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjMRPzr0_QbxcE2IlJFsJloVZe6Pd-X_BPdLzmkHP2l_Acd9u7UEqOENb4JQtBOIsR751uFZ5mcPMbrFBPzrN_QZAF9sxWmZkhXoLr1DLobeZtvNssUe7C-hf5RNqHC1nJFAQ5bVuM0YeI/s320/Bloomberg+2018+cover.JPG" width="265" /></a></div>
<br />
Supplementing this report, Bloomberg publishes a <a href="https://data.bloomberglp.com/company/sites/48/2018/03/GRI-Content-Index-.pdf" target="_blank"><span style="color: blue;">GRI Content Index</span></a> (including the Media Sector Disclosures) and a <a href="https://data.bloomberglp.com/company/sites/48/2018/03/SASB-Disclosure.pdf" target="_blank"><span style="color: blue;">SASB Disclosure</span></a>. The SASB disclosure includes metrics from three separate SASB Standards:<br />
<ul>
<li>Internet and Media
Services</li>
<li>Media and Entertainment </li>
<li>Professional and Commercial Services</li>
</ul>
Now, this is where the difference in approach start to show up. GRI's Media Sector Disclosures are integrated throughout the existing GRI Standard with some additional Sector-Specific Disclosures. In various sections throughout the GRI Standards, additional sector-relevant elements are integrated (noted by a little green <b><span style="color: #38761d;">+</span></b> sign) or new elements are added (noted in <span style="color: #6aa84f;"><b>green</b></span>). (NB: This still relates to G4, and has not been updated to reflect the changes in GRI Standards, but the approach is the same).<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEguzI76PJ_SxulpKY5f1iPIXzhcpMmLkISYDUcKyFbT-nyOj7IVpXWIO7-Q9sNK49gtA8fUzQ9CucFpQ5a7AX_JbG6lgshyphenhyphenTm5XyF-FTVax0IQ3oBKrzjeoLQnBz-4kk4e1FDOHuoPoB5M/s1600/MEdia+sector.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="776" data-original-width="717" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEguzI76PJ_SxulpKY5f1iPIXzhcpMmLkISYDUcKyFbT-nyOj7IVpXWIO7-Q9sNK49gtA8fUzQ9CucFpQ5a7AX_JbG6lgshyphenhyphenTm5XyF-FTVax0IQ3oBKrzjeoLQnBz-4kk4e1FDOHuoPoB5M/s400/MEdia+sector.JPG" width="368" /></a></div>
<br />
SASB Standards are all standalone. So, when Bloomberg decides to report against three SASB Standards, it is actually duplicating several pieces of information. For example, you can find data on workforce diversity included <b>three times</b> in the same Bloomberg SASB disclosure document - one for each of the three SASB Standards that Bloomberg identified as relevant to their business.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj3TYl7UM45-lYA5bdDr6VaXKFwNlS9baAKCe8YIMTp0K5wpR0edrQSKJaHSIAJYTUMDJ54OlyB_i6QGd9aSzsZ5x-nVzxelO3E_0FhKRUL2qWjOfP8BFdLNLCE3Dij8zSam27S2-muEDQ/s1600/Bloomberg+SASB1.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="277" data-original-width="993" height="111" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj3TYl7UM45-lYA5bdDr6VaXKFwNlS9baAKCe8YIMTp0K5wpR0edrQSKJaHSIAJYTUMDJ54OlyB_i6QGd9aSzsZ5x-nVzxelO3E_0FhKRUL2qWjOfP8BFdLNLCE3Dij8zSam27S2-muEDQ/s400/Bloomberg+SASB1.JPG" width="400" /></a></div>
<div class="separator" style="clear: both; text-align: center;">
</div>
<br />
And the funny thing is, that all this data is reported as well already in Bloomberg's GRI Content Index:<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjyjElObHAOys_2hqn1wsTnJjgKE3ixXZYzrIZKKyrZHtIsEckaWoSSGkZShRa4npuKHVg_EJPTweYio6stQDSLrZRoFQ0NC1pFDxYypS_autYf7DlHvyZBnQ18d_fqRhrmwqE3ZuI_tTE/s1600/bloomberg+gri+405.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="483" data-original-width="1248" height="153" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjyjElObHAOys_2hqn1wsTnJjgKE3ixXZYzrIZKKyrZHtIsEckaWoSSGkZShRa4npuKHVg_EJPTweYio6stQDSLrZRoFQ0NC1pFDxYypS_autYf7DlHvyZBnQ18d_fqRhrmwqE3ZuI_tTE/s400/bloomberg+gri+405.JPG" width="400" /></a></div>
<br />
I worked through every single Bloomberg SASB disclosure against all three SASB Standards to try to establish the delta. I found that there is extremely little in the SASB disclosures that is not already reported in the GRI Content Index, or would have been reported if the GRI Content Index were applied in full. Environmental data... it's in both; data privacy - it's in both; data security - it's in both - although there are a few metrics that SASB includes that are not in GRI. On the topic of employment, SASB asks for employee engagement measures (that GRI does not specifically cover). All in all, it would take very little to combine these GRI and SASB Standards to achieve sector-specificity with no duplication and enable relevance for all stakeholders including investors.<br />
<br />
Here's another report. <a href="http://www.apachecorp.com/Resources/Upload/file/sustainability/APACHE-Sustainability_Report_2018.pdf" target="_blank"><span style="color: blue;">Apache Corporation 2018 Sustainability Report</span></a><br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhbQsq4rJNZnSyhJ1gYLj6vaFQso5WINXpA7ITRzpcEV7lXIsb7cJrUPEyriBFgeJ9LtP05jCdm-9LTIq09PDyrjTcu5Tr0aF3ztdYiZJysoyajM9KFtw9OOClctrm327uyNkWzau4TyF0/s1600/APACHE18+cover.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="825" data-original-width="632" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhbQsq4rJNZnSyhJ1gYLj6vaFQso5WINXpA7ITRzpcEV7lXIsb7cJrUPEyriBFgeJ9LtP05jCdm-9LTIq09PDyrjTcu5Tr0aF3ztdYiZJysoyajM9KFtw9OOClctrm327uyNkWzau4TyF0/s320/APACHE18+cover.JPG" width="245" /></a></div>
<br />
Apache's report follows (1) GRI Standards, Core Option (2) Oil and Gas Industry Guidance on Voluntary
Sustainability Reporting (2015) developed by <a href="http://www.ipieca.org/our-work/sustainability-reporting/sustainability-reporting-guidance/" target="_blank"><span style="color: blue;">IPIECA</span></a> (3) SASB’s Oil and Gas
Exploration and Production Standard
and (4) the <a href="http://disclosingthefacts.org/" target="_blank"><span style="color: blue;">Disclosing the Facts</span></a>
framework which is an annual investor scorecard ranking of the
30 largest oil and gas companies engaged in hydraulic
fracturing.<br />
<br />
Again, I analyzed the SASB disclosure to assess if it includes more than is delivered by a regular GRI-based Sustainability Report. Note that, in this case, Apache does not use the GRI Oil and Gas Sector Disclosure, which, as with the media sector, integrates disclosures throughout the Standard and adds sector-specific additional topics.<br />
<br />
So, what about the delta? For several metrics, such as GHG emissions, biodiversity impacts, community relations, and health and safety etc., there is no meaningful difference between the Standards. In others, there are differences. For example, on the topic of indigenous peoples: GRI focuses on violations of indigenous rights in the main GRI Standard, and on disputes in the additional sector disclosure:<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj2Mt6RpSVCWh8U3KEf8O-OrmpfGiMVGL9-i-PERFL1EkoHvKyErhdCCuEWgQD2vSWh909GKWzbOmT5iKWLj7V32zQVpoblRQ8UzFaugFgOHixZwchDH4QRdErl_PSX-3cD3QUk3V22nQ4/s1600/GRI+OIL+GS+INDIGENOUS.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="550" data-original-width="854" height="257" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj2Mt6RpSVCWh8U3KEf8O-OrmpfGiMVGL9-i-PERFL1EkoHvKyErhdCCuEWgQD2vSWh909GKWzbOmT5iKWLj7V32zQVpoblRQ8UzFaugFgOHixZwchDH4QRdErl_PSX-3cD3QUk3V22nQ4/s400/GRI+OIL+GS+INDIGENOUS.JPG" width="400" /></a></div>
<br />
<div class="separator" style="clear: both; text-align: center;">
</div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg3HQvvLqThjwfKVLRu7PAUDL5RyZnWiddqUa6eOUSs5AHvS9ngd088xVm22mJpBPYM1hlfNpLnoywRHsPNQLILhFLBYJUbg-L3F0EJMjGkgre0H8hevmEvhMC0lNhJtyA38of1Xb5MRsA/s1600/GRI+OG12.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="887" data-original-width="803" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg3HQvvLqThjwfKVLRu7PAUDL5RyZnWiddqUa6eOUSs5AHvS9ngd088xVm22mJpBPYM1hlfNpLnoywRHsPNQLILhFLBYJUbg-L3F0EJMjGkgre0H8hevmEvhMC0lNhJtyA38of1Xb5MRsA/s400/GRI+OG12.JPG" width="361" /></a></div>
SASB focuses on operations in proximity to indigenous lands and engagement processes.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiQ3UP-zyIU0IqUe78zNUhYT8LHc5DOkTyDtzYlfNtrzXY_4qxTDy77FsPj-GfUSEu7YJjW5EzFsqIMKgoTGU2cXdqA-OlJbmVwKNBQKkPCf7SIn65nWyfe9uY5ZdQgoZHWbfzaUHTf_C8/s1600/SASB+indigenous.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="279" data-original-width="899" height="123" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiQ3UP-zyIU0IqUe78zNUhYT8LHc5DOkTyDtzYlfNtrzXY_4qxTDy77FsPj-GfUSEu7YJjW5EzFsqIMKgoTGU2cXdqA-OlJbmVwKNBQKkPCf7SIn65nWyfe9uY5ZdQgoZHWbfzaUHTf_C8/s400/SASB+indigenous.JPG" width="400" /></a></div>
<br />
Apache does not report these indicators, neither GRI nor SASB. Interestingly, APACHE does report against an IPIECA indicator relating to indigenous peoples, with a <a href="http://www.apachecorp.com/Resources/Upload/file/governance/Apache_Statement_on_Indigenous_Peoples.pdf" target="_blank">Statement on Indigenous Peoples</a> representing Apache's approach.<br />
<br />
So, while Apache has made significant efforts to deliver high-quality transparency, it is clear that the multiple standards and frameworks cause duplication and fragmentation of reporting requirements. However, Apache reports neither Standard in full, disclosing against 13 of the 27 metrics in the SASB Oil and Gas Standard, and 17 of the 33 Topic Specific Standards of GRI and none of the sector-specific topics. The SASB Standard offers some fine-tuning of disclosures for this industry, but nothing that is monumentally significant versus a fully reported GRI Standards-based disclosure.<br />
<br />
One more? Let's try a different sector. Food. I LOVE food (especially ice cream).<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjdM1SckNz8GJF1WRaGpg0rLbmXlUvL-W4_F6EIx5ufHhEYwgLvjWL5L3ceAmEcMdM8ivAIwPAdKxUREtRo3rH3dmyF_Myy7UIQ0M20wVnh2_Uyizdw8JIqsI6ee5cca9N_iHpvzbzSGRE/s1600/KELLOGS+2018+cover.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="912" data-original-width="1172" height="311" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjdM1SckNz8GJF1WRaGpg0rLbmXlUvL-W4_F6EIx5ufHhEYwgLvjWL5L3ceAmEcMdM8ivAIwPAdKxUREtRo3rH3dmyF_Myy7UIQ0M20wVnh2_Uyizdw8JIqsI6ee5cca9N_iHpvzbzSGRE/s400/KELLOGS+2018+cover.JPG" width="400" /></a></div>
<br />
<br />
<a href="http://crreport.kelloggcompany.com/cr-report" target="_blank"><span style="color: blue;">Kellogg's 2018-2019 Corporate Responsibility Report</span> </a>also uses multiple sustainability disclosure frameworks:<br />
<br />
<ul>
<li><a href="http://crreport.kelloggcompany.com/download/2018+Kellogg+GRI+Index.pdf" target="_blank">GRI Standards including the Food Processing Sector Disclosures</a> (downloadable Content Index)</li>
<li><a href="http://crreport.kelloggcompany.com/download/2018+Kellogg+SASB+Disclosure.pdf" target="_blank">SASB Food Processing Standard</a> (downloadable index)</li>
<li>CDP Climate and Water Disclosures</li>
<li>Cross-references in the GRI Index to SDGs and the UN Global Compact Principles</li>
</ul>
<br />
Should we count that as six frameworks?<br />
<br />
Here again, this company has worked hard to address the multiple reporting demands of different frameworks and organize disclosures in the least confusing way for stakeholders. Not an easy task to avoid the duplication and fragmentation that we have already seen in the two reports above.<br />
<br />
Again, my focus here is on the delta between SASB Standards requirements and GRI. In this sector, there are some significant differences. For example:<br />
<br />
<b>Food safety</b>: This is material for Kellogg's, and also highlighted in the GRI Food Sector Disclosures, SASB includes two indicators that link to external audit by the <span style="color: blue;"><a href="https://www.mygfsi.com/" target="_blank"><span style="color: blue;">Global Food Safety Initiative (GFSI)</span></a> </span>GRI on the other hand references external standards certified by an independent third party according to internationally recognized food safety management system standards, leaving companies to choose which certifications.<br />
<b>Food waste:</b> This is noted as material for Kellogg's but appears neither in the GRI Standards nor in the SASB Standard.<br />
<b>Climate change: </b>This is <b>not</b> included in SASB Standards for this sector. Energy management is included, but not climate change impacts. As Kellogg's has noted climate change as material, then GRI Standards requires disclosure on climate change impacts. I find it hard to understand how investors assessing a company such as Kellogg's would not be interested in climate change data.<br />
<b>Diversity and inclusion:</b> This is stated as material for Kellogg's but is not included in the SASB Food Processing Sector Standard. It is part of GRI Standards.<br />
<b>Packaging lifecycle management:</b> This is included in the SASB Standard and is a relevant addition for this sector. It is not included in GRI Standards (beyond regular disclosures about waste) although Kellogg's CR Report contains information about the sustainability of its packaging and lifecycle impacts.<br />
<b>Animal Welfare:</b> The GRI Food Processing Sector disclosure is the only standard that points this out specifically. The SASB standard does not address this and Kellogg's maintain it is not material to their business.<br />
<br />
Across both the SASB and the GRI Food Processing Sector Standards, and Kellogg's own list of material topics, there is a significant degree of overlap, but also some areas of difference. Does the SASB Standard add much? In this sector, the metrics are a little more industry-focused though it strikes me as odd that there are no SASB metrics relating to people, labor or human rights.<br />
<br />
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiXJgUNlNsDY9CkJ-PI3LHVdXQTTx-dVereZ9YHG533hYftJTmKZJ9XZGPOmVECnEZva-goI8r7oCRxA-cazKYTUUhyphenhyphenUiBQKAZRrX520RGcOlz9FolzZX84_4d-lil96niFLxJQSmgUsno/s1600/feed+compare+stndrds.JPG" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="434" data-original-width="1352" height="127" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiXJgUNlNsDY9CkJ-PI3LHVdXQTTx-dVereZ9YHG533hYftJTmKZJ9XZGPOmVECnEZva-goI8r7oCRxA-cazKYTUUhyphenhyphenUiBQKAZRrX520RGcOlz9FolzZX84_4d-lil96niFLxJQSmgUsno/s400/feed+compare+stndrds.JPG" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Kellogg's own material topics, SASB's Food Processing Standard topics and GRI Food Processing Sector Disclosures (additional to and incorporated in the general GRI Standards)</td></tr>
</tbody></table>
<br />
Back to my three questions:<br />
<span style="color: red;">(1) </span><b><span style="color: red;">Are SASB Standards really a useful tool?</span> </b><br />
<span style="color: red;">(2) <b>What does sector specificity actually add? </b></span><br />
<span style="color: red;">(3) <b>Who needs to budge to turn this into one Standard that's useful for all?</b></span><br />
<br />
And my three answers:<br />
<br />
<span style="color: red;"><b>(1)</b></span> I cannot speak for the investor community, for whom SASB standards were devised. If the idea was that all the topics in the SASB Standards are "financially" material, then it's rather odd that very few of the SASB metrics I have seen actually correlate to any sort of financial measure. My observation is that where a company reports GRI in full, including any available sector disclosures, the additional disclosures required by SASB may not add a lot. For a company not using GRI, and using SASB for sustainability disclosures in its annual report, then it may not be enough. Having said that, the overview of what's most important by industry is a useful reference for any company conducting a materiality assessment.<br />
<br />
<span style="color: red;"><b>(2)</b></span> Sector specificity is a worthy pursuit, especially when companies are not rigorous in their materiality assessments. Kellogg's, for example, presents what I feel is a balanced and representative set of material topics, covering both the operational and purpose-driven aspects of its business. Apache's material topics are more generic, so the SASB Standard could be a useful safety net. However, in this case, as is the case in several other sectors, there is another reporting framework developed by the industry itself, IPIECA which tends to address the sector-specific requirements.<br />
<br />
<span style="color: red;"><b>(3)</b></span> I think both GRI and SASB need to budge. As can be seen from just 3 examples, reporting is fragmented, duplicated and yes, confusing. Just working out who reports what against which Standards was a nightmare. All three companies made valiant efforts to navigate these frameworks and deliver robust disclosures. We should not let the question of financial materiality divert us from the real questions of who should report what. There is room to develop a set of jointly-owned GRI-SASB Standards that would include <b>(1)</b> a core of disclosures and metrics on universally critical sustainability topics that <b>every</b> company should report, material or otherwise <b>(2)</b> a menu of core sector specific disclosures that <b>all companies in a particular industry</b> should report <b>(3)</b> a menu of optional metrics and indicators that companies can disclose in addition, if they or their stakeholders define them as material. What's important here is not only what to report but <b>how</b> to report, that is, by prescribing the methodologies required for each metric reported. That would enable the rigor and comparability that SASB maintains is so lacking. And in each industry, the industry associations, such as IPIECA, have an important role to play as well.<br />
<br />
Ultimately, I think we have everything we need - except a spirit of collaboration. Combining the best of GRI, SASB and industry-specific experts can be an exercise in cooperation, not reinvention. By working together, we can totally simplify the landscape and make it much easier for reporters to report and users to use the information. Why is this such a big deal? Why is it so contentious?<br />
<br />
<span style="color: red;"><b>But that's only the first step.</b> </span>The second step is doing more to encourage companies to fully implement these simplified reporting Standards in a consistent and auditable way. I don't mean through external assurance but through internal rigor and accountability. Both GRI and SASB are far too eager to hype up the numbers of how many companies are using their Standards. Neither is prepared to really buckle down and assess the way the Standards are being implemented or call out companies that are doing a pick'n'mix job of reporting what's easy or available or irrelevant.<br />
<br />
The GRI-SASB Game of Thrones Showdown I witnessed at the Asia Sustainability Reporting Summit earlier this month did not offer much hope of collaboration. Apparently, the comfort zone is exactly where they are. Unfortunately, it's a very <b>un</b>comfort zone for everyone having to deal with the fallout.<br />
<br />
<br />
<span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: xx-small;">elaine cohen, CSR consultant, </span><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: xx-small;">Sustainability Reporter, HR Professional, Ice Cream Addict. </span><b style="color: #333333; font-family: arial, tahoma, helvetica, freesans, sans-serif; font-size: small;">Owner/Manager</b><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: xx-small;"> of </span><a href="http://www.b-yond.biz/" style="color: #0066cc; font-family: arial, tahoma, helvetica, freesans, sans-serif; font-size: small;" target="_blank"><span style="color: blue;">Beyond Business Ltd</span></a><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: xx-small;">, an </span><i style="color: #333333; font-family: arial, tahoma, helvetica, freesans, sans-serif; font-size: small;">inspired</i><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: xx-small;"> Sustainability Strategy and Reporting firm having supported 100 </span><a href="http://www.b-yond.biz/clients-reports" style="color: #0066cc; font-family: arial, tahoma, helvetica, freesans, sans-serif; font-size: small;" target="_blank"><span style="color: blue;">client reports</span></a><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: xx-small;"> to date; </span><b style="color: #333333; font-family: arial, tahoma, helvetica, freesans, sans-serif; font-size: small;">author </b><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: xx-small;">of </span><a href="http://www.b-yond.biz/our-books" style="color: #0066cc; font-family: arial, tahoma, helvetica, freesans, sans-serif; font-size: small;" target="_blank"><span style="color: blue;">three books and several chapters</span></a><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: xx-small;"> on Sustainability Reporting and the Human Resources connection to CSR; frequent </span><b style="color: #333333; font-family: arial, tahoma, helvetica, freesans, sans-serif; font-size: small;">chair and speaker </b><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: xx-small;">at sustainability events and </span><b style="color: #333333; font-family: arial, tahoma, helvetica, freesans, sans-serif; font-size: small;">judge</b><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: xx-small;"> in several sustainability awards programs each year. Contact me via </span><a href="http://www.twitter.com/elainecohen" style="color: #0066cc; font-family: arial, tahoma, helvetica, freesans, sans-serif; font-size: small;" target="_blank">Twitter</a><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: xx-small;"> , </span><a href="https://www.linkedin.com/in/elainecohen/" style="color: #0066cc; font-family: arial, tahoma, helvetica, freesans, sans-serif; font-size: small;" target="_blank"><span style="color: blue;">LinkedIn</span></a><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: xx-small;"> or via </span><a href="http://www.b-yond.biz/" style="color: #0066cc; font-family: arial, tahoma, helvetica, freesans, sans-serif; font-size: small;" target="_blank"><span style="color: blue;">Beyond Business</span></a><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: xx-small;"> </span><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: 14px;"> </span><br />
<br />
<br /></div>
elainehttp://www.blogger.com/profile/07433863039389159395noreply@blogger.com0tag:blogger.com,1999:blog-8008724049496903547.post-72741736997083313432019-09-12T10:27:00.000+03:002019-09-12T21:12:41.958+03:00SASB: Hot air. GRI: Cold shower.<div style="text-align: justify;">
The stage at the <a href="https://csrworks.com/summit/" target="_blank">Asia Sustainability Reporting Summit</a> was sizzling last week, despite Arctic temperatures in the conference room, as SASB and GRI battled it out in a fight entitled: <b>My Standards are Bigger and Better than Yours. </b><br />
<b><br /></b>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiG5sPs2Uu4EiaGE3AU_THIWEQ6rh4Fw6MlLCmV5cdDoaUoD-7awNGV-39XSd6TMJxNImZrbaVCD1tXrdyFlAFPoea4CTRB3INzQOWZ1J0DEcFEEp4VSRR7jqTip7FtZWaGj3pe5ZqDSdk/s1600/opening+panel.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="240" data-original-width="391" height="245" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiG5sPs2Uu4EiaGE3AU_THIWEQ6rh4Fw6MlLCmV5cdDoaUoD-7awNGV-39XSd6TMJxNImZrbaVCD1tXrdyFlAFPoea4CTRB3INzQOWZ1J0DEcFEEp4VSRR7jqTip7FtZWaGj3pe5ZqDSdk/s400/opening+panel.JPG" width="400" /></a></div>
<br />
<br />
In contrast to the restrained, optimistic rhetoric we have been used to over the past few years, SASB burst forth with a whoosh of self-aggrandizement, leaving GRI doing a jelly-wobble in disbelief. Of course, we shouldn't be all that surprised. SASB received a setback earlier this year when <a href="https://tax.thomsonreuters.com/news/chairman-clayton-says-companies-should-not-be-required-to-disclose-environmental-and-social-matters/" target="_blank"><span style="color: blue;">U.S. SEC Chairman Jay Clayton rejected ongoing and heightening pressure to make listing contingent upon (SASB-based) ESG disclosure</span></a>:</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<i>"In a blow to several investor groups, SEC Chairman Jay Clayton recently said that he does not believe public companies should be required to disclose information concerning environmental, social, and governance (ESG) matters in a standardized format.
Clayton was especially opposed to requiring publicly-listed companies to use ESG standards developed by organizations like the Sustainability Accounting Standards Board (SASB) and the Global Reporting Initiative (GRI), which some companies voluntarily use.</i>"</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Denied SASB the dream, it was perhaps predicable that SASB, having based its entire strategy on becoming <b>THE</b> ESG disclosure tool for U.S. based companies, would not accept this without a fight. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
At the Summit, which ran under the theme of "Is mandatory better?", both GRI and SASB came out forcefully in opposite corners of the two pivotal questions: Should ESG disclosure be mandatory? and Should ESG disclosure be based on the concept of financial materiality (rather than sustainability materiality)? </div>
<div style="text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjfpBtmMNz8vZEGYPvu7sEId_2mDUrsx1ZYKw7Zpui1ZieMCnM2dr6jSFoSGG8Ocq0P0Dk3BfuWfEMSN7woWyqPXn0VTRfZK_Pm9d31Q-O_071RhLa5uL977YIMlD6aj7gyJgbaZh3fTMM/s1600/GRISASB.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="540" data-original-width="832" height="258" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjfpBtmMNz8vZEGYPvu7sEId_2mDUrsx1ZYKw7Zpui1ZieMCnM2dr6jSFoSGG8Ocq0P0Dk3BfuWfEMSN7woWyqPXn0VTRfZK_Pm9d31Q-O_071RhLa5uL977YIMlD6aj7gyJgbaZh3fTMM/s400/GRISASB.JPG" width="400" /></a></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
The showdown started as Tim Mohin, GRI's Chief Exec, took center stage, presenting GRI's position. He made the case for increasing mandatory instruments around the world, with 544 instruments tracking some form of mandated ESG disclosure in 85 countries and quoted a McKinsey study that showed 82% of investors and 66% of corporate executives surveyed preferred companies to be required to disclose <b>by law.</b> He explained that voluntary mechanisms are seen to work too slowly and don't cover enough of the market. Tim also quoted a study that indicated that mandatory disclosure has led to more efficient boards, less corruption and improved corporate credibility.<br />
<br />
This was all going so well until he reverted to something that sounds like wishful thinking: <i>"There is a belief in the marketplace is that there is confusion (around ESG disclosure standards). In fact, there is a lot of convergence....."</i> Tim explained convergence by referencing the widespread use of GRI standards. But this is not convergence. It's a sort of <a href="https://en.wikipedia.org/wiki/Hobson%27s_choice" target="_blank"><span style="color: blue;">Hobson's Choice</span></a>: there is actually no other general standard for broad-based sustainability disclosures, and in any case, the quality of implementation varies so widely that it's hard to assess just how <b>effectively</b> GRI Standards are being used. At the same time, companies using or sort-of using GRI are also deploying other forms of disclosure, including CDP, TCFD, SASB, UNGC, sector-based standards and even SDG, to mention just a few. So let me be clear. <b>THERE IS NO CONVERGENCE.</b> It's time to stop saying that.<br />
<br />
Tim went on to explain his testimony to the <a href="https://financialservices.house.gov/calendar/eventsingle.aspx?EventID=404000" target="_blank">U.S. House of Representatives Committee on Financial Services earlier this year</a> where he said that (1) ESG information is essential for the operation of capital markets and free trade; (2) This disclosure must be mandated and must be based on international, independent multi-stakeholder standards and (3) The concept of financial materiality does not work for ESG disclosure.<br />
<br />
He said "<i>I don’t think I need to convince anyone in this room that ESG disclosure is essential.
We know that investors are demanding this information as it becomes more critical to investors and free trade.
The last point is most important. We cannot rely solely on the test of financial materiality. <b>If ESG issues were financially material, we would not have ESG issues.</b> In fact, these issues are very hard to monetize. When we do monetize these issues, they often do not make the test of financial materiality.</i>" He has a point.<br />
<br />
Tim Mohin even <a href="https://medium.com/@GlobalReportingInitiative/its-time-for-business-leaders-to-take-off-the-blinders-8925e56b0910" target="_blank"><span style="color: blue;">went into print this week</span></a> (post-summit) to reinforce how increasingly worried he is that SASB has upped the ante:<br />
<br />
<i>"The movement to limit corporate disclosure on environmental, social and governance (ESG) issues to financially material topics (already legally required for public companies), has gained some momentum. If it catches on, it could roll back decades of progress. Even more troubling is that the advocates of this position brand themselves as working for environmental and social causes. Could this be a clever Trojan Horse to put the brakes on corporate responsibility?</i>" Ta-da!<br />
<br />
Following the GRI keynote, the Summit delegates then turned their attention to hear a very different story from Dr Madelyn Antoncic, SASB's new Chief Exec. SASB's proposition is about financial risk, market forces that incentivize corporations to make the choices that will cause investors to allocate capital to them. SASB believes that it is not regulation that will cause companies to improve and disclose ESG performance, but market forces and the promise of investor attention. </div>
<br />
<div style="text-align: justify;">
Madelyn said:<i> "At first flush, it may be easy to jump to the conclusion that companies won't do the right thing when it comes to sustainability, especially when it will have short term negative impact on their bottom line. As an economist, however, I challenge that view. As I know that on occasion, economic agents, people, whether acting as individuals or on behalf of on behalf of organizations, or institutions, are motivated by incentives." </i><br />
<i><br /></i>
According to SASB, current sustainability disclosure does not cut it. (That's not a new assertion by SASB.)</div>
<br />
<div style="text-align: justify;">
Madelyn added:<i> "Yet while sustainability reporting has become near ubiquitous in recent years, the practice has widely been criticized for lacking the rigor of traditional financial reporting. A recent PWC report shows that 100% of corporations polled felt confident in the quality of their ESG information reporting while only 29% of investors polled were confident in the quality of that same information that they were receiving. More than 60% of corporations but only 8% of investors polled by Bank of America and Merrill Lynch during a recent congress thought that the ESG disclosure allowed for comparison among companies and peers.</i>"</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
My summary of SASB's view of the world is:<br />
<br /></div>
<div style="text-align: justify;">
(1) Investors need corporations to provide reliable, consistent, auditable ESG information that is <b>financially</b> material by sector and by industry</div>
<div style="text-align: justify;">
(2) If they get this, they will act to allocate capital most effectively, rewarding good corporate citizens who show they are managing ESG risks</div>
<div style="text-align: justify;">
(3) The carrot of earning investor favor will keep corporations focused on good ESG performance and disclosure while the stick of higher risk and loss of reputation will do the same</div>
<div style="text-align: justify;">
(4) When all this happens, everybody wins.<br />
<br /></div>
<div style="text-align: justify;">
Madelyn summarizes:<i> "When we transform markets, we transform the world. .... What’s needed are incentives. Corporations need to be incentivized, to do the right thing because to do the alternative will negatively hit their bottom line. And only with consistent disclosure of financially material information, can investors be effectively the policing mechanism which will drive positive outcomes for the environment and society at large."</i><br />
<i><br /></i>
Ultimately, my reading of this is: Place your trust in investors. Let the money-makers and the money-takers decide what's best. Let money be the deciding factor in assessing corporate citizenship. If investors incorporate selected ESG factors in their decisions, so they can minimize financial risk, it will be good for everyone.<br />
<br />
Well, sorry, but in my work in sustainability, I missed the bit where money was THE motivator for doing the right thing. I missed the bit where corporate transparency was ONLY about helping people make more money. I missed the bit where sustainability reporting has only ONE stakeholder group. When SASB was first formed, as an organization designed to deliver standards for financially material ESG disclosure in corporate annual reports, I could understand it. It was about helping investors understand and evaluate risk more holistically (even if they still don't quite know how to do it). It seems I am now hearing that voluntarily giving investors better ESG information is the key to delivering sustainable development and solving social and environmental issues. That's rather a lot of responsibility on the shoulders of those who are (only) managing financial assets.<br />
<br />
The debate continued in the opening panel discussion which mainly focused on the chasm between GRI and SASB (sidelining the others present on stage). It went something like this:<br />
<br />
<span style="color: red;"><b>He said: </b></span></div>
<div style="text-align: justify;">
<i>"Let’s face it, this movement started from a very different place – of activism, of trying to do the right thing, we call it corporate responsibility and now, because it has become quite clear that these non-financial matters have financial implications, we have the interest of the financial markets, But as I said, the fact is that externalities are not properly valued, and when they are, a lot of times they are still not financially material. There is a subset of ESG issues that are financially material, and frankly, in every jurisdiction I am aware of, financially material ESG issues ALREADY have to be disclosed, it's the law. Ethics, gender diversity, Scope 2 and Scope 3 carbon, water... many of these things just don’t ring the bell of financial materiality, but we know that they are absolutely critical"</i></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<span style="color: red;"><b>She said:</b></span></div>
<div style="text-align: justify;">
<i>"I would challenge that because at the end of the day, ethics, if you aren’t an ethical company, you go out of business, gender diversity, sooner or later, you go out of business, so that’s why they are called non-financial risks, I think it’s a ridiculous statement, non-financial becomes financial. The reason we look at financial materiality is the comparability – so many reports are now coming out in the ESG space, where investors say we can't make heads or tails out of this, and I can't compare one company versus the other, because they are not tied to some financial metric, that one company can be compared and therefore the capital can allocate to the different companies that are being good corporate citizens."</i></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<span style="color: red;"><b>He said:</b></span></div>
<div style="text-align: justify;">
<i>"The judgement of what is material can't be made by somebody else, it can't be made in the rear view mirror, it has to be made with a multi stakeholder approach, up front, that’s looking at a horizon that is typically much further than companies look at, not next quarter or next year, that’s not what ESG issues are about. We would never have looked at things like gender diversity – how do you value such things?
We don’t have gender diversity in the SASB standards. Scope 2, Scope 3 carbon are not financially material. These are things that if we don’t get a handle on, our society will be so much worse."</i></div>
<br />
<span style="color: red;"><b>She said:</b></span><br />
<div style="text-align: justify;">
<i>"I think there is a misunderstanding. Financial materiality, the way we look at it, it’s not next quarter, that’s the whole point and that’s what I mentioned, it’s about the long term. I think that any one of these issues that you mentioned .. of course.. sooner or later they are financially material.. and you mentioned that something is not in the SASB standards. Well, the SASB standards were only issued last November and now we are going through to look where we can improve.. as you know, these things evolve. I commend what your organization has been doing all these years and that’s great, but I think the world moves on. That doesn’t mean what we are doing today is wrong, it means we have built on the shoulders of what's been done, but we have to look at it now in a different way. Financial materiality and industry specificity makes it comparable .. and that’s why you see all these data providers coming up with their own interpretation and that’s why you see more and more of these so called standard setters - because no one can come up with a way that investors can make use of the information. It’s about how you come to the use of that information so we can mobilize all that capital."</i></div>
<br />
<span style="color: red;"><b>He said:</b></span><br />
<div style="text-align: justify;">
<i>"It’s just not true that this information isn’t getting to corporate boards and CEOs. I have done it personally. If you think Tim Cook doesn’t know about the supply chain issues at Apple, I can tell you I have personally briefed him many times. It is difficult and many companies aren’t in a position to understand this, it’s like trying to teach a fish to ride a bicycle. One of the things we're doing is forgetting about a key player in the marketplace and that’s analysts. Most of the analyst work is done on the back of GRI Standards, and it's used to compare companies."</i></div>
<br />
<span style="color: red;"><b>She said:</b></span><br />
<div style="text-align: justify;">
<i>"I didn’t say that Boards are not aware that they have supply chain issues. I am saying that the reports are not being done under the same standards as financial reports which means they are not signed off. As far as analysts are concerned, yes, there are lots of these data analysts, that’s the point, they are popping up all day, why? Because there are not robust reports that investors can use.. that’s why there is Sustainalytics, and RobecoSam and MSCI… and the list goes on. The reason is that the information is not consistent, it is not comparable, therefore these data providers are making inferences about what companies are doing and using analysts and coming up with the wrong answers. What we say is: use SASB standards, comparable, auditable. If the solution was what we currently have, without naming names, we wouldn’t have all these other things popping up."</i></div>
<br />
<span style="color: red;"><b>He said:</b></span><br />
<div style="text-align: justify;">
<i>"There is a lot of misleading information about the lack of comparability among analysts. In fact, in fact, it’s not meant to be comparable .. you can't just add up ethics, climate change and supply chain and come up with a number .. a lot of analysts cut it one way or another and they come up with different information because they are looking at different things. By design.</i>"</div>
<br />
<div style="text-align: justify;">
And by this time, the hundreds of delegates in the audience are starting to squirm a little at the way GRI and SASB are openly taking shots at each other (especially as the whole public rhetoric to date has been coochy-moochy harmonization and common purpose - remember <span style="color: blue;"><a href="https://www.sasb.org/blog/blog-sasb-gri-pen-joint-op-ed-sustainability-reporting-sychronicity/" target="_blank"><span style="color: blue;">the joint op-ed by Tim Mohin and the former SASB CEO, Jean Rogers</span></a>?</span>) In this dialogue of the deaf, both GRI and SASB are hyping themselves to their own downfall and missing the point. We do not need better standards. <b>WE NEED BETTER IMPLEMENTATION. </b></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
GRI Standards could provide a good degree of comparability IF companies applied the standards in a quality way. The problem has always been that GRI has avoided any form of intervention in the way the standards are actually used and there is no consistent watchdog covering reporting accuracy or quality.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
SASB Standards, which have not yet reached critical mass (any mass?) yet in terms of the number of companies fully using them, will only enable investors to get what they want IF the standards are IMPLEMENTED in a quality way. It's a little early for SASB to sing its own praises. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
And if GRI and SASB and the other parties in the rather useless <a href="https://corporatereportingdialogue.com/better-alignment-project/" target="_blank"><span style="color: blue;">Better Alignment Project of the totally superfluous Corporate Reporting Dialogue</span></a> pooled their resources to help companies apply GRI and/or SASB Standards in a complete and proper way, we would all get much further, much faster. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
And as for mandatory, I think both GRI and SASB are wrong. They see the world too simply. One says YES to mandating ESG disclosure, the other says NO. I believe the answer is in the middle. Some things absolutely have to be mandated or they will never happen consistently across companies, industries and sectors. Others can be left to market forces, peer pressure, competitive appetite, stakeholder demands, investor self-interest. The real question here is not whether mandatory is better, but how much mandatory and which elements of mandatory would be truly effective. But GRI and SASB cannot see past their own ego and beyond their current legacy. GRI's overly positive hype about the status quo won't help us move forward. SASB's dismissal of everything that's not SASB is arrogant and misplaced. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
I think it's time to refocus and reframe. We need to spend more time looking at the quality of what companies are reporting and less time in slanging matches about which standard is better. No current standard is perfect to meet the needs of a broader audience that uses ESG disclosure, not just investors. Instead of debating which one is less perfect, whether they should be mandated or not and which definition of materiality should apply, GRI and SASB should roll up their sleeves and get down to some serious work with companies and with each other to help drive better <b>implementation</b> of sustainable development practices and disclosure. If we do nothing more than ensure existing standards are fully adopted by all companies, consistently, auditably and comprehensively, perhaps with a few tweaks here and there, we will have done a lot. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
GRI, SASB.... gauntlet over to you. </div>
<br />
<br />
<br />
<br />
<br />
<span style="background-color: white;"><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: xx-small; text-align: justify;">elaine cohen, CSR consultant, </span><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: xx-small; text-align: justify;">Sustainability Reporter, HR Professional, Ice Cream Addict. </span><b style="color: #333333; font-family: arial, tahoma, helvetica, freesans, sans-serif; font-size: small; text-align: justify;">Owner/Manager</b><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: xx-small; text-align: justify;"> of </span><a href="http://www.b-yond.biz/" style="color: #0066cc; font-family: arial, tahoma, helvetica, freesans, sans-serif; font-size: small; text-align: justify;" target="_blank"><span style="color: blue;">Beyond Business Ltd</span></a><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: xx-small; text-align: justify;">, an </span><i style="color: #333333; font-family: arial, tahoma, helvetica, freesans, sans-serif; font-size: small; text-align: justify;">inspired</i><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: xx-small; text-align: justify;"> Sustainability Strategy and Reporting firm having supported 100 </span><a href="http://www.b-yond.biz/clients-reports" style="color: #0066cc; font-family: arial, tahoma, helvetica, freesans, sans-serif; font-size: small; text-align: justify;" target="_blank"><span style="color: blue;">client reports</span></a><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: xx-small; text-align: justify;"> to date; </span><b style="color: #333333; font-family: arial, tahoma, helvetica, freesans, sans-serif; font-size: small; text-align: justify;">author </b><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: xx-small; text-align: justify;">of </span><a href="http://www.b-yond.biz/our-books" style="color: #0066cc; font-family: arial, tahoma, helvetica, freesans, sans-serif; font-size: small; text-align: justify;" target="_blank"><span style="color: blue;">three books and several chapters</span></a><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: xx-small; text-align: justify;"> on Sustainability Reporting and the Human Resources connection to CSR; frequent </span><b style="color: #333333; font-family: arial, tahoma, helvetica, freesans, sans-serif; font-size: small; text-align: justify;">chair and speaker </b><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: xx-small; text-align: justify;">at sustainability events and </span><b style="color: #333333; font-family: arial, tahoma, helvetica, freesans, sans-serif; font-size: small; text-align: justify;">judge</b><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: xx-small; text-align: justify;"> in several sustainability awards programs each year. Contact me via </span><a href="http://www.twitter.com/elainecohen" style="color: #0066cc; font-family: arial, tahoma, helvetica, freesans, sans-serif; font-size: small; text-align: justify;" target="_blank">Twitter</a><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: xx-small; text-align: justify;"> , </span><a href="https://www.linkedin.com/in/elainecohen/" style="color: #0066cc; font-family: arial, tahoma, helvetica, freesans, sans-serif; font-size: small; text-align: justify;" target="_blank"><span style="color: blue;">LinkedIn</span></a><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: xx-small; text-align: justify;"> or via </span><a href="http://www.b-yond.biz/" style="color: #0066cc; font-family: arial, tahoma, helvetica, freesans, sans-serif; font-size: small; text-align: justify;" target="_blank"><span style="color: blue;">Beyond Business</span></a><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: xx-small; text-align: justify;"> </span><span style="color: #333333; font-family: "arial" , "tahoma" , "helvetica" , "freesans" , sans-serif; font-size: 14px; text-align: justify;"> </span></span>elainehttp://www.blogger.com/profile/07433863039389159395noreply@blogger.com0tag:blogger.com,1999:blog-8008724049496903547.post-61012034312079738742019-09-01T08:09:00.000+03:002019-09-01T08:09:20.176+03:00GRI: Still in the lead?<div style="text-align: justify;">
GRI remains the most widely used global standard for sustainability reporting - though I find myself wondering if that's something that still counts for something. Are GRI Standards still a worthy leader of sustainability reporting frameworks? Or is it time for a fundamental review of GRI as the baseline set of standards for sustainability reporting (on a timescale that assumes most of us will still be alive before it's complete)?</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
There are several things I would consider revisiting: </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<b><span style="color: red;">The first is that GRI largely remains a standard for measuring direct accountability.</span></b> The concept of material impacts which is so central to GRI standards is not borne out by the overriding focus on measures (topic-specific disclosures) that address mainly direct impacts. Almost all of the 200, 300 and 400 Standards measure direct operational performance and not <b>impacts</b> on stakeholders. Reporting on resource consumption, adherence to labor standards, anti-corruption etc. is all well and good, and necessary, but most of these are not the true currency of sustainable business today. Stating year after year in your sustainability report that you do not employ child or forced labor or that you paid no fines for non-compliance are no longer the key proof points of a sustainable business.<br />
<br /></div>
<div style="text-align: justify;">
The indirect impacts of a business reach much further than their direct impacts. We all know that a pharmaceutical company has a far more meaningful impact on healthcare and access to medicines than the amount of carbon emissions the company saves in its operations. Internet providers have a far greater role to play in keeping children safe online than in managing resource consumption of optic fiber cables. We know that food producers affect how we lead healthy lifestyles in ways that are far more significant than the amount of fuel saved by increasing logistics efficiency. And we probably know that the public expects companies to take a stand on human rights, environmental health and social justice and have an impact on policy in areas where governments are not doing the job.<br />
<br /></div>
<div style="text-align: justify;">
If we want standards that truly reflect how companies are affecting our lives, I think we need to think differently about what such standards ask companies to report. I am reminded of one of the transformational books I read many years ago and often reference: <a href="https://www.amazon.com/High-Purpose-Company-Responsible-Profitable-Changing-ebook/dp/B000SEI4NI" target="_blank">The High Purpose Company, by Christine Arena</a>, one of the first sustainability experts, I believe, to highlight purpose as the core of sustainable business, purpose being the positive impact on society beyond making money. Sustainability then is about two things: driving positive impact (a purpose-driven business) and doing business ethically (an accountable business). GRI focuses on the latter. What about a Standard that focuses on the former? </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Some companies currently make their sustainability reporting about their core social purpose and the bulk of their disclosure is about how they make a difference through the business they do. The GRI Content Index then fills the transparency gap for how companies operate in a resource-efficient, socially responsible and ethically viable manner. Many companies haven't reached this realization yet: they use GRI as a rigid framework, selecting material topics from the limited number of GRI-prescribed options (the Standards), failing to link to their bigger picture. Currently, GRI Standards do not expressly encourage purpose-driven thinking.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<b><span style="color: red;">The second review of GRI Standards that I would consider concerns the challenges of reporting on materiality.</span> </b> GRI Standards offer a definition of a material topic as one that: <i>reflects a reporting organization’s significant economic, environmental and social impacts; or that substantively influences the assessments and decisions of stakeholders</i>. How long is a piece of string?<br />
<br />
Material can mean anything from generic topics, such as climate change, to specific topics, such as increasing use of renewable energy - one being so much broader than the other. If materiality means "what matters most", listing a set of any-company-anywhere sustainability topics as material undermines the intent. With such generic lists,<b> everything </b>matters most. In the early days, it might have made sense for GRI to get materiality on the map with a light touch, by leaving the process for determining materiality wide open and the constituents of materiality somewhat vague. In today's world, where materiality seems to be anything you want it to be, more prescriptive guidance might be worth considering.<br />
<br />
How confident can we be of all those materiality matrices that are floating around out there? What tools do companies use to define materiality and what makes an internal and external stakeholder engagement process robust enough to deliver a materiality outcome that's meaningful, relevant and balanced? Some companies interview select stakeholders. Some conduct broad online surveys. Scoring and ranking mechanisms are a black hole. I think this is one of the big paradoxes of materiality. Despite materiality being the pivot of sustainability disclosure, it's still a black box of often rather arbitrary selections, delivered through an imperfect process, skewed by an often random collection of opinions. And even then, despite the selection of material topics, companies report on everything anyway, except those things that they prefer not to report, and conveniently call not material.<br />
<br />
I think it's time for an overhaul that prescribes a certain number of data points for all companies to report as a baseline (what I call <a href="http://csr-reporting.blogspot.com/2017/08/materiality-from-meaningless-to.html" target="_blank"><span style="color: blue;">Operational Materiality</span></a>) The more meaningful indirect impacts, which are a more effective measure of most companies' impacts (what I call Precision Materiality or Differential Materiality) should be company specific - and companies need to get better at measuring these in some way. GRI calls this <a href="http://csr-reporting.blogspot.com/search?q=mission+effectiveness" target="_blank"><span style="color: blue;">Mission Effectiveness</span></a>, adapting its own guidance on materiality to create something GRI Standards do not reference anywhere. <a href="https://digital.globalreporting.org/public/report/540/" target="_blank">GRI's 2018 Material Topics</a> use the term "other sustainability topics" for those indirect impacts, the most significant in terms of GRI activities, that are not captured in the GRI Standard sets.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjjR6hCjT1U0NwJlT0VAtBAP_tirEmJ8A-WstozEcQZ4TNmDwvhKDiHtILOthcMpA3hkRGS2SDo3tLARgcNoHz2O3y_H6MeTXAmLvt7VAs_LkhD3LQjtucpu2hK146i9xq67Yb3zM9sHL4/s1600/GRI18+matiss.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="395" data-original-width="543" height="290" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjjR6hCjT1U0NwJlT0VAtBAP_tirEmJ8A-WstozEcQZ4TNmDwvhKDiHtILOthcMpA3hkRGS2SDo3tLARgcNoHz2O3y_H6MeTXAmLvt7VAs_LkhD3LQjtucpu2hK146i9xq67Yb3zM9sHL4/s400/GRI18+matiss.JPG" width="400" /></a></div>
<div class="separator" style="clear: both; text-align: justify;">
GRI's Disclosures on Management Approach (GRI 101-103) for these other topics are rather general without precise ways of measuring performance in these areas. GRI's creativity in applying its own framework shows that the standards have not stood the test of time. In its 2015-2016 report, GRI's material topics were entirely direct (see matrix below), indicating that GRI's thinking has moved on (which is good) but the Standards have not.</div>
</div>
<div style="text-align: justify;">
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjvq19-CUmv9oeBuKH88-SXPEhZIUq0yEVEi_ruIAFoaLYbkzrDN4_0HRqRQWQwYZMTuP8C2LMkxw9TnYD8wIsBQwgPu8r-YRWbZCNcqCd0RSauy4FQRflHkcILdkX2hZvNVO_IbYpFR3g/s1600/GRI16+matmax.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="504" data-original-width="788" height="255" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjvq19-CUmv9oeBuKH88-SXPEhZIUq0yEVEi_ruIAFoaLYbkzrDN4_0HRqRQWQwYZMTuP8C2LMkxw9TnYD8wIsBQwgPu8r-YRWbZCNcqCd0RSauy4FQRflHkcILdkX2hZvNVO_IbYpFR3g/s400/GRI16+matmax.JPG" width="400" /></a></div>
<br /></div>
<div style="text-align: justify;">
<span style="color: red;"><b>Another aspect of GRI Standards that could do with a refresh is the way standards reflect the changing dynamics of business.</b></span> In 2016, with the introduction of GRI Standards, we were promised an agile set of standards that could be quickly adapted to changing realities and new requirements. Since then, a new Water Standard and a new Standard on Occupational Health and Safety have been published. One new Standard on taxes is scheduled to be published in 2019, and some additional Standards revisions are scheduled for 2020. This may be progress, but it's slow progress. And in the meantime, realities are changing. For example, one of the issues I frequently encounter in reporting on employees is that gender can no longer be a simple reference to women or men. Today, <a href="https://www.hrc.org/resources/sexual-orientation-and-gender-identity-terminology-and-definitions" target="_blank"><span style="color: blue;">gender identity includes, for example, transgender</span></a>. All of GRI's employee demographics reporting requirements are based on a gender split, and in some cases, specifically women and men. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhLLrRTOFgiPr2XeAkPcZ-1tE-hzR459qrENNm8MjyiOjMFByAHGopQrrnLhqjbBmigM_BlsGR9263ciCSVQ-yyi7jb_7YrbKHhqLC3WRwKHJg1pv0N4w-VlowsbZ9uAjcn5dDm2dLH_NI/s1600/GRI+gender.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="358" data-original-width="834" height="171" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhLLrRTOFgiPr2XeAkPcZ-1tE-hzR459qrENNm8MjyiOjMFByAHGopQrrnLhqjbBmigM_BlsGR9263ciCSVQ-yyi7jb_7YrbKHhqLC3WRwKHJg1pv0N4w-VlowsbZ9uAjcn5dDm2dLH_NI/s400/GRI+gender.JPG" width="400" /></a></div>
<br /></div>
<div style="text-align: justify;">
In general, GRI's Diversity and Equal Opportunity (Standard 405) may not go far enough to reflect today's higher aspiration of <a href="https://eige.europa.eu/thesaurus/terms/1175" target="_blank"><span style="color: blue;">equity</span></a> rather than equal opportunity. Other aspects of doing business today come to mind, such as the circular economy, regenerative business, democratization of technology, data security and more, that are hardly addressed by GRI Standards. For GRI Standards to remain in the lead, the pace of change must accelerate to create standards that show how companies are responding to today's sustainability challenges, not only those that were identified 20 years ago.<br />
<br />
<br />
I am an admirer of the work of Dan Esty, Hillhouse Professor of Environmental Law & Policy at Yale, whose research has exposed shortcomings in corporate sustainability disclosure. Developed from a perspective on sustainable finance with a focus on investors (but don't let that put you off 😉), his paper on <a href="https://cbey.yale.edu/sites/default/files/Corporate%20Sustainability%20Metrics%20-%20What%20Investors%20Need%20and%20Don%E2%80%99t%20Get.pdf" target="_blank"><span style="color: blue;">Corporate Sustainability Metrics: What Investors Need and Don’t Get</span> </a> is a sensible approach to sustainability disclosure. While I may not agree with everything, the following summary of issues in current sustainability disclosure makes sense to me.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj5e-fuiyIOxDaH1E4aMiPrBSCLRxZXdWD3YrE47Yq6XEAXONih2h7KaY51ujCEXTWzjvkynC3gQrFjIq85s4v4f6m_bTJyVLhHN-mQVJ3-qJoGbT1lSvKUZHeRA7zbZvzdjXcstMKx3CE/s1600/esty+new+metrics.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="764" data-original-width="576" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj5e-fuiyIOxDaH1E4aMiPrBSCLRxZXdWD3YrE47Yq6XEAXONih2h7KaY51ujCEXTWzjvkynC3gQrFjIq85s4v4f6m_bTJyVLhHN-mQVJ3-qJoGbT1lSvKUZHeRA7zbZvzdjXcstMKx3CE/s400/esty+new+metrics.JPG" width="300" /></a></div>
<br />
Dan Esty writes:<br />
<br />
"<i>One of our core observations is that repurposing ESG metrics that worked for the “values” investors of the past does not work for the sustainable investors of today. Mainstream investors now want a more comprehensive and carefully curated perspective on the companies in their portfolios – which existing ESG data sets so often cannot provide</i>."<br />
<br />
<div style="text-align: justify;">
He also recommends a government-mandated framework of ESG methodologies to underpin disclosures that are common to all or most companies. It's not by chance that I am pondering this question at this time, because, next week, the third annual Asia Sustainability Reporting Summit (<a href="https://csrworks.com/summit/" target="_blank">register here</a> 😀 ) which I co-chair, will run under the theme of <b>Is mandatory better? </b>Among other things, I will facilitate two panel discussions with prominent and accomplished Chief Sustainability Officers, regulators, analysts and academics on this subject.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEioufwYh5G-avDcpRjWT4h0qzZBh7Bm-M2IVocp7ClAK_zY0Nd_bVLIEUdyinf2PvykHXEhZhggsOqC-k0sZULUexTnqk1wEbzTPE6RA89gC8hmFkUZIae_Y3L8-LCmUNV1cN588hNeRU0/s1600/Capture.PNG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="556" data-original-width="853" height="260" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEioufwYh5G-avDcpRjWT4h0qzZBh7Bm-M2IVocp7ClAK_zY0Nd_bVLIEUdyinf2PvykHXEhZhggsOqC-k0sZULUexTnqk1wEbzTPE6RA89gC8hmFkUZIae_Y3L8-LCmUNV1cN588hNeRU0/s400/Capture.PNG" width="400" /></a></div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh894GWecQ1Ztgq9Qyd2lpYD1v-fJssF29kETQMhF9fnpJqkpY0OVJrtE4VtudaHwFjbb6PLzCYSoFzFLhDZ5f6tDwlEXd96Rci0mHr_-fKp9h0oTfbu44-bykoa8CAU9lEJJElut-plBU/s1600/panel.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1280" data-original-width="1280" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh894GWecQ1Ztgq9Qyd2lpYD1v-fJssF29kETQMhF9fnpJqkpY0OVJrtE4VtudaHwFjbb6PLzCYSoFzFLhDZ5f6tDwlEXd96Rci0mHr_-fKp9h0oTfbu44-bykoa8CAU9lEJJElut-plBU/s400/panel.jpg" width="400" /></a></div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhpq27WCGa_JQxwpxYGV-e5kzdjIVut1EDvWysR0hEleYdkJhS_peqUuQavFBnYQntvrdlC_MmBvIeFTuoyBqFRRD2uCt-RDwiZ6xa5wMBpgymprCHCC-KwPNJ1W5HFfT93sNxMIm6ZneM/s1600/comparability.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="800" data-original-width="800" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhpq27WCGa_JQxwpxYGV-e5kzdjIVut1EDvWysR0hEleYdkJhS_peqUuQavFBnYQntvrdlC_MmBvIeFTuoyBqFRRD2uCt-RDwiZ6xa5wMBpgymprCHCC-KwPNJ1W5HFfT93sNxMIm6ZneM/s400/comparability.jpg" width="400" /></a></div>
</div>
</div>
<div style="text-align: justify;">
<br />
Another brilliant academic whose work I admire, Professor Guler Aras (Integrated Reporting Network Turkey Executive Chair and Yildiz Technical University Finance Governance and Sustainability Research Center Founding Director), will be an expert voice on a panel next week. She has proposed a multi dimensional sustainability model in her research article which was published in <a href="https://www.sciencedirect.com/journal/journal-of-cleaner-production/vol/185/suppl/C" target="_blank"><span style="color: blue;">Journal of Cleaner Production</span></a>. She says: "<i>In addition to the traditional sustainability components, finance and governance components allow businesses to maintain healthy and continuous performance over a long period of time and provide benefits to all stakeholders.
Hence, apart from the economic, environmental and social dimensions of corporate sustainability, a good governance structure and financial factors should be integrated to properly evaluate firms’ sustainability.</i>" Prof. Aras's diagram below illustrates a multidimensional comprehensive corporate sustainability disclosure model.
<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhi_lZUH0C9J751e_jRGA1dzpo3z6enJ2k9TxPRJlNtGLYubF13c_58Jkz1j-VPcd3AKGxV60MOTKdg2ZI1Aj3tUjA_iqNqFQs7luF8234PjNtfW00mRe4JNBYqMq528f9MO5vj5k4WB2k/s1600/1567233526723blob.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="498" data-original-width="525" height="377" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhi_lZUH0C9J751e_jRGA1dzpo3z6enJ2k9TxPRJlNtGLYubF13c_58Jkz1j-VPcd3AKGxV60MOTKdg2ZI1Aj3tUjA_iqNqFQs7luF8234PjNtfW00mRe4JNBYqMq528f9MO5vj5k4WB2k/s400/1567233526723blob.jpg" width="400" /></a></div>
This is worth mentioning because, mostly, the link to overall business results is a missing element in sustainability reporting. While finance (Economic Performance GRI Standards 200), and governance (GRI General Disclosures 102-18 - 102-39) are part of GRI-based reporting, there is often a disconnect in reporting between economic and governance factors from a sustainability perspective and actual business results. More direction in sustainability reporting standards could be considered to help companies define <b>how sustainable practice impacts their own business</b> through risk mitigation, employee engagement, customer loyalty, cost benefit and new business opportunities, to name just a few. But that's probably a whole other discussion....<br />
<br />
Voluntary or mandated, corporate sustainability disclosure needs to get with the times, deliver the need and be more useful to not only investors, but to all of us whose lives are affected by the actions of corporations, in positive and less positive ways. Whether the <a href="https://www.businessroundtable.org/business-roundtable-redefines-the-purpose-of-a-corporation-to-promote-an-economy-that-serves-all-americans" target="_blank"><span style="color: blue;">new declaration of the Business Roundtable on the Purpose of a Corporation</span>,</a> that commits to delivering value to ALL stakeholders inspires or depresses you, there seems to be a consensus that we need better frameworks for measuring and disclosing sustainability impacts. With leadership comes responsibility to stay in the lead. As an established leader in driving sustainability disclosure, GRI has the capability to help transform sustainability reporting standards into more meaningful, comparable and useful tools for sustainable development.<br />
<br />
<br />
<br />
P.S. I you got to this point, you deserve a double ice cream. 🍦🍦 </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<span style="font-size: x-small;">elaine cohen, CSR consultant, </span><span style="font-size: x-small;">Sustainability Reporter, HR Professional, Ice Cream Addict. </span><b style="font-size: small;">Owner/Manager</b><span style="font-size: x-small;"> of </span><a href="http://www.b-yond.biz/" style="font-size: small;" target="_blank"><span style="color: blue;">Beyond Business Ltd</span></a><span style="font-size: x-small;">, an </span><i style="font-size: small;">inspired</i><span style="font-size: x-small;"> Sustainability Strategy and Reporting firm having supported 100 </span><a href="http://www.b-yond.biz/clients-reports" style="font-size: small;" target="_blank"><span style="color: blue;">client reports</span></a><span style="font-size: x-small;"> to date; </span><b style="font-size: small;">author </b><span style="font-size: x-small;">of </span><a href="http://www.b-yond.biz/our-books" style="font-size: small;" target="_blank"><span style="color: blue;">three books and several chapters</span></a><span style="font-size: x-small;"> on Sustainability Reporting and the Human Resources connection to CSR; frequent </span><b style="font-size: small;">chair and speaker </b><span style="font-size: x-small;">at sustainability events and </span><b style="font-size: small;">judge</b><span style="font-size: x-small;"> in several sustainability awards programs each year. Contact me via </span><a href="http://www.twitter.com/elainecohen" style="font-size: small;" target="_blank">Twitter</a><span style="font-size: x-small;"> , </span><a href="https://www.linkedin.com/in/elainecohen/" style="font-size: small;" target="_blank"><span style="color: blue;">LinkedIn</span></a><span style="font-size: x-small;"> or via </span><a href="http://www.b-yond.biz/" style="font-size: small;" target="_blank"><span style="color: blue;">Beyond Business</span></a><span style="font-size: x-small;"> </span> </div>
elainehttp://www.blogger.com/profile/07433863039389159395noreply@blogger.com0