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CSRCSR
SGS
Systems & Services CertificationSGS
July 28, 2009July 28, 2009
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SGS
SGS 1878
SGS 53,000 , 1000140
- Europe, Middle East & Africa: 24¡400 employees- Americas: 12¡100 employees- Asia/Pacific: 16¡500 employees
SGS ,
SGS 2007 CHF 4.3 Billion
SGS 100%
SGS ,
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SGS
100 105
98 30
422 115
137 39
/
212 54
/
/ /
12,100 24,400 16,500
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¡ .
Inspection
Verification
Testing
Certification
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Systems & Services Certification
SGS 80,000 ISO90
SGS4,600
90
TAF ( ISO 9001ISO 14001 ISO 22000)
http://www.tw.sgs.com/training
e-paper
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Content
CSR History & Background InformationCSR History & Background Information
Logistical Requirements for Reporting
Material Issues in Sustainability Report
Guidance on Reporting Principles
Guidance on Report Content and Underlying Processes
External Assurance
Assurance Process
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History of Reporting
1993 Social ReviewsTraidcraft
Ben & Jerry¡s
1995 Body Shop ¡ Values and Vision Report
1997 Shell ¡ Sustainability Report
Guidance started to be developedGRI
AA1000
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Current Market Situation
Over 3000 CSR reports published in 2008*
* www.corporateregister.com
In some countries regulatory requirements for reporting are being introduced
France
UK
Sweden
Denmark
China
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Types of Reporting
Stand-alone
Part of Annual Report & Accounts
Sustainability (Economic, Environmental and Social)
CSR
Limited scope (Environment or Social only)
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Guidelines for Reporting
Global Reporting Initiative - Sustainability Reporting Guidelines
Provides principles for reporting
Provides content requirements for reporting, including core indicators for economic, environmental and social performance
Sector specific guidelines and additional indicators developed
AA1000 FrameworkProvides methodology for reporting process
Focus on stakeholder engagement
AA1000 Assurance StandardProvides principles for assurance
Provides guidelines for assurance process
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Behaving Responsibly
Leadersh
ipPerformance Gap
Co
mm
un
ica
tion
Ga
p
Reactive
Risk of Lack of Confidence
Ris
k o
f E
xpo
sure
Performance
Tra
nsp
are
ncy
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Content
CSR History & Background Information
Logistical Requirements for ReportingLogistical Requirements for Reporting
Material Issues in Sustainability Report
Guidance on Reporting Principles
Guidance on Report Content and Underlying Processes
External Assurance
Assurance Process
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Motivation for Reporting
Management of reputation
Creating transparency
Meeting stakeholder expectations
Creating or managing change
Continuous improvement
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The Audience - who is interested?
Employees
Shareholders
Customers
Local Community
Pressure Groups& NGOs Media
Government
Regulators
Suppliers
Company
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Deciding on Report Content
Regulatory requirements
Guidelines and standards
Scope of the report
Length of the report
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Putting Together a Team for Reporting
Management of the project
Authors of report sections
Contributors of data and information for inclusion
Use of external organisations and individuals
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Deciding Reporting Format
Options for report publication include:printed
electronic
web-based
video / audio
Formats can include:stand alone report
inclusion in financial report
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Tone and Style of Report
Ensure consistency with company style
Provide sign posting to key information
Use appropriate photographs, diagrams, graphs and pictures
Ensure inclusion of both achievements / progress as well as areas for improvement
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Launching the Report
Timing
Frequency
Processinternal
external
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Feedback
Measurement of the success of the reportwere your objectives in producing the report achieved?
Have audience needs and expectations been met?
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Golden Characteristics of a Good Report
Balanced
Explanatory
Accessible
Tailored subject matter for each audience
Reflective of organisational culture/ image/ style
Interesting - not turgid and over bound with prose and figures
Concise - neither glib nor overly detailed
Easy to read
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Content
CSR History & Background Information
Logistical Requirements for Reporting
Material Issues in Sustainability ReportMaterial Issues in Sustainability Report
Guidance on Reporting Principles
Guidance on Report Content and Underlying Processes
External Assurance
Assurance Process
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Materiality Test
Policy-basedPerformance
Direct,Short-termFinancialImpacts
Societal Norms(regulatory &
non-regulatory
StakeholderBehaviour &
Concerns
BusinessPeer-based
Norms
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Content
CSR History & Background Information
Logistical Requirements for Reporting
Material Issues in Sustainability Report
Guidance on Reporting PrinciplesGuidance on Reporting Principles
Guidance on Report Content and Underlying Processes
External Assurance
Assurance Process
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Global Reporting Initiative
Sustainability Reporting Guidelines
Launched in 1997, 1st exposure draft 1999
Most recently published version ¡ G3 in 2006
Provides a universal structure for non-financial reporting
High take up (1100 reports in 2008)
Presented as guidelines rather than a standard
Relatively easy to understand and implement
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Stakeholder Inclusiveness
GRI Reporting Principles
Defining QualityDefining Content
Completeness
Materiality
Sustainability Context
Comparability
Timeliness
Accuracy
Balance
Clarity
Reliability
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AA1000 Framework
Exposure draft published in 1999process standard focused on securing the quality of social and ethical accounting, auditing and reporting (SEAAR)
SEAAR is the tool used to achieve CSRthe process of measuring and reporting in order to understand and improve social and ethical performance
Applicable to any organisation, not just corporations
AA1000AS ¡ Assurance Standard ¡ launched 2003 and republished in 2008
AA1000 Accountability Principles Standard (2008)Guidance to reporters on content of non-financial reporting and assurance
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AA1000 Framework
AimsAccountability and social responsibility
Quality social and ethical accounting, auditing and reporting
Transparency
Responsiveness to stakeholders
Improved organisational performance
Integration of stakeholder engagement process into daily activities and guidance to generate:
Indicators
Targets
Reporting systems
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Accountability Definition
¡to explain or justify the acts, omissions, risks and dependencies for which one is responsible to people with a legitimate interest.¡
? AA1000 Framework (1999)
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AA1000 Principles
Inclusivity
Materiality Responsiveness
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AA1000 Principles
Inclusivity
Principle:An organisation shall be inclusive
Definition:Participation of stakeholders in developing and achieving an accountable and strategic response to sustainability
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AA1000 Principles
Materiality Responsiveness
Principle:An organisation shall identify its material issues
Definition:Materiality is determining the relevance and significance of an issue to an organisation and its stakeholders
A material issue is one that will influence the decisions, actions and performance of an organisation or its stakeholders
Principle:An organisation shall respond to stakeholder issues that affect its performance
Definition:Responsiveness is an organisation¡s response to stakeholder issues that affect its sustainability performance and is realised through decisions, actions and performance and communications with stakeholders
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ISO/CD 26000
Guidance on Social Responsibility
COMMITTEE DRAFT ISO/CD 26000
Date: 2008-12-15
Reference number ISO/TMB/WG SR N 157
WARNING: This document is not an International Standard. It is distributed for review and comment. It is subject to change without notice and may not be referred to as an International Standard.
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Principles of Social Responsibility
Accountability
Transparency
Ethical behaviour
Respect for stakeholder interests
Respect for the rule of law
Respect for international norms of behaviour
Respect for human rights
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Content
CSR History & Background Information
Logistical Requirements for Reporting
Material Issues in Sustainability Report
Guidance on Reporting Principles
Guidance on Report Content and Underlying Guidance on Report Content and Underlying ProcessesProcesses
External Assurance
Assurance Process
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GRI Standard Disclosures
Strategy and Analysis
Organisational Profile
Report Parameters
Governance, Commitments and Engagement
Management Approach and Performance IndicatorsEconomic
Environmental
Social¡ Labor Practices and Decent Work
¡ Human Rights
¡ Society
¡ Product Responsibility
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Adhering to GRI Principles
MaterialityThe information in a report should cover topics and Indicators that reflect the organization¡s significant economic, environmental, and social impacts, or that would substantively influence the assessments and decisions of stakeholders.
Stakeholder InclusivenessThe reporting organization should identify its stakeholders and explain in the report how it has responded to their reasonable expectations and interests.
Sustainability ContextThe report should present the organization¡s performance in the wider context of sustainability.
CompletenessCoverage of the material topics and Indicators and definition of the report boundary should be sufficient to reflect significant economic, environmental, and social impacts and enable stakeholders to assess the reporting organization¡s performance in the reporting period.
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GRI Principles (continued)
BalanceThe report should reflect positive and negative aspects of the organization¡s performance to enable a reasoned assessment of overall performance
ComparabilityIssues and information should be selected, compiled, and reported consistently. Reported information should be presented in a manner that enables stakeholders to analyze changes in the organization¡s performance over time, and could support analysis relative to other organizations.
AccuracyThe reported information should be sufficiently accurate and detailed for stakeholders to assess the reporting organization¡s performance.
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GRI Principles (continued)
TimelinessReporting occurs on a regular schedule and information is available in time for stakeholders to make informed decisions.
ClarityInformation should be made available in a manner that is understandable and accessible to stakeholders using the report.
ReliabilityInformation and processes used in the preparation of a report should be gathered, recorded, compiled, analyzed, and disclosed in a way that could be subject to examination and that establishes the quality and materiality of the information.
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GRI Standard Disclosures
Strategy and Profile: Disclosures that set the overall context for understanding organizational performance such as its strategy, profile, and governance.
Management Approach: Disclosures that cover how an organization addresses a given set of topics in order to provide context for understanding performance in a specific area.
Performance Indicators: Indicators that elicit comparable information on the economic, environmental, and social performance of the organization.
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GRI Sector Supplements
Available Currently:Financial Services (Social Performance)
Tour Operators
Telecommunications
In Development:Automotive
Financial Services (Environmental Performance)
Logistics
Mining and Metals
Public Agency
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GRI Performance Indicators
Core indicators - relevant to most organisations and of interest to most stakeholders, e.g.
total payroll and benefits (economic)total water use (environmental)average hours of training provided (social)
Additional indicators - represent leading practice, or of interest to key stakeholders, or possible future core indicators, e.g.
indirect impacts (economic)indirect energy use (environmental)employee benefits, beyond legal requirements (social)
Sector Supplements ¡ additional indicators of particular relevance to specific sectors
Financial ServicesLogistics and TransportationMining and MetalsPublic AgencyTour OperatorsTelecommunicationsAutomotive
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GRI Performance Indicators
Integrated indicators Systemic indicators
¡ link performance at the micro-level (e.g. organisational level) with economic, environmental or social conditions at the macro-level (e.g. regional, national or global level)
¡ e.g. wages and benefits, or investments in research and development, at the organisational level expressed in relation to sectoral or national totals
Cross-cutting indicators ¡ bridge information across two or more of the three elements of
sustainability (economic, environmental or social) of an organisation¡s performance
¡ e.g. eco-efficiency; externalised costs of emissions (economic-social or economic-environmental)
Both systematic and cross-cutting¡ e.g. expressing air emissions in relation to regional totals as well
as estimates of human health effects of such emissions combines the systemic (micro-macro) with the cross-cutting (environmental-social) dimensions of integrated indicators
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GRI Performance Indicators
Absolute indicators raw performance data collected in terms of absolute figures
absolute figures provide information on the size of an impact, value, or achievement
Ratio indicators relative figures are ratios between two absolute figures of the same or of a different kind
ratios allow comparisons of similar products or processes with each other
ratio indicators provide information on the efficiency of an activity, on the intensity of an impact, or on the quality of a value or achievement
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Levels of ApplicationGRI requires reporting organisation to declare at what level they have applied GRI
Level can be checked by a third party (ie Assurance Provider) or by GRI
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Companies using GRI
In 2008 there were 1100 reports published using GRI guidelines
A 75
A+ 196
B 130
B+ 105
C 136
C+ 24
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Other Guidelines for Report Content
Eco-Management and Audit Scheme (EMAS)www.emas.org
Business in the Communitywww.bitc.org.uk/resources/toolkit/index.html
UK Government Department for Environment and Rural Affairs
www.defra.gov.uk
Regulatory Requirements
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AA1000 Process Model
Planning
Auditing and reporting Accounting
Stakeholder Engage-
ment
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AA1000 Process Model - Planning
P1 Establish commitment and governance procedures
organisation commits to SEAAR process, governance procedures and inclusion of stakeholders
P2 Identify stakeholdersorganisation identifies stakeholders and characterises relationship with each group
P3 Define / review valuesorganisation defines or reviews its mission and values
Planning
Stakeholder Engage-
ment
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AA1000 Process Model - Accounting
P4 Identify issuesorganisation engages with stakeholders to identify social and ethical issues relating to its activities
P5 Determine process scopeorganisation determines scope of current process, issues & locations to be included and excluded, timing, audit methods
P6 Identify indicatorsorganisation identifies social and ethical indicators through stakeholder engagement to reflect performance
P7 Collect informationorganisation collects info about performance for indicators
Accounting
Stakeholder Engage-
ment
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AA1000 Process Model - Auditing and Reporting
P8 Analyse information, set targets and develop improvement plan
organisation evaluates performance, develops/revises future objectives to improve performance
P9 Prepare report(s)organisation prepares social and ethical report, explaining process and performance vs. targets
P10 Audit report(s)organisation arranges and supports external audit process
P11 Communicate report(s) and obtain feedbackorganisation communicates information on the process and performance to stakeholders and actively seeks feedback
Auditing and reporting
Stakeholder Engage-
ment
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AA1000 Process Model - Embedding
P12 Establish and embed systemsorganisation establishes systems to support SEAAR process:
¡ achievement of objectives
¡ maintaining values
¡ collection and documentation and communication of information
¡ internal audit/ review
Planning
Auditing and reporting
Accounting
Stakeholder Engage-
ment
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Companies using AA1000
Currently 104 reports indicate the use of AA1000 series
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Content
CSR History & Background Information
Logistical Requirements for Reporting
Material Issues in Sustainability Report
Guidance on Reporting Principles
Guidance on Report Content and Underlying Processes
External AssuranceExternal Assurance
Assurance Process
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Aims of Assurance
Build transparency and credibility in to your reporting
Improve stakeholder confidence in your organisation and enable decision-making
Demonstrate your commitment towards Corporate Social Responsibility
Enable monitoring and continuous improvement of management systems
Compliance with legal requirements for reporting
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Why do we need assurance?
¡With very few exceptions, the Top 50 reports fail to address what we consider to be the biggest sustainability issues associated with a company¡s activities¡¡
¡ The Global Reporters, SustainAbility Nov. 2000
¡In considering reporting on ethical issues it is particularly clear that, in selecting what to report, most companies are more concerned about their image than with a genuine desire to be accountable¡
¡ Carol Adams, CIMA
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Why do we need assurance?
glossy, attractive reports
limited content
self-defined indicators
contradictions between what is said and actions
selected stakeholder involvement
empty assurance statements
taken from ¡Challenging Corporate Spin¡Presentation by Deborah Doane, New Economics Foundation April 2001
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Why do we need assurance?
Management standards - are systems in place?
Process Standards - how robust is the implementation?
Compliance standards - does performance reach the requirements?
Assure adherence to the accounting process
Substantiate claims/ reported accounts
Test the robustness of the process
Encourage improvement
Assure consistency in the field of Social and Ethical Accounting, Auditing and Reporting
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Types of Assurance
1st party (internal) auditing -To monitor progress against previously set targets
To ensure maintenance, development and improvement of the accounting process
To increase embeddedness of the process
3rd party (external) assurance -To determine whether an organisation¡s accounts and processes have been implemented in accordance with standards or guidelines
To introduce objectivity and independence into the process
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External Assurance
Assurance Processarranged and supported by the organisation
independent, external assurance of the process and report
Assurance Responsibilitiesexternal assurors responsible for conducting the assurance and assurance reporting
Quality Assuranceaccuracy and validity of data and supporting systems
compliance to requirements of social and ethical standards and guidelines
inclusivity of the process and report
completeness of process and report
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External Assurance
Use of external third party to build credibility in the process and information with all stakeholder groups
Will include a variety of methods to assess:accuracy
validity
compliance
inclusivity
completeness
¡ of reporting, supporting information and systems
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What do the guidelines say?
GRI-G3 (2006)Recommends use of external assurance
Use of competent groups or individuals, who are independent and impartial
Assurance procedures that are systematic, documented and evidence-based
Assurance assesses report for:¡ balanced presentation of performance;
¡ veracity of data;
¡ overall selection of content; and
¡ Extent of application of GRI Reporting Framework
Results in published conclusions on the report
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AA1000 Assurance Standard 2008
Assurance can be undertaken in two ways:Against Principles only (Inclusivity, Materiality, Responsiveness)
Against Principles plus evaluation of accuracy
Assurance can be undertaken at two levels:Moderate
High
A fee of ¢500 per contract is payable to AccountAbility when this new standard is used
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Selection of Independent Assurance Providers
AA1000AS Guidance on selecting assurance providers to provide credibility to the Assurance Process:
Independence
Impartiality
Individual and Organisational Competence
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Content
CSR History & Background Information
Logistical Requirements for Reporting
Material Issues in Sustainability Report
Guidance on Reporting Principles
Guidance on Report Content and Underlying Processes
External Assurance
Assurance ProcessAssurance Process
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Level 1
Assurance of factual accuracy of the report only
Level 2
Assurance of factual accuracy
+ Gap analysis of content against the Global Reporting Initiative Sustainability Reporting Guidelines
Level 3
Assurance of factual accuracy
+ Gap analysis of content against the Global Reporting Initiative Sustainability Reporting Guidelines
+ Evaluation of supporting processes and management systems against AA1000 Framework
Level 4
Assurance of factual accuracy
+ Gap analysis of content against the Global Reporting Initiative Sustainability Reporting Guidelines
+ Evaluation of supporting processes and management systems against AA1000 Framework
+ Real time evaluation of generation of improvement
Overview of SGS SRA Structure
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Overview of Assurance Process
Agree termsofengagement
Understandactivities andvalues oforganisation
Plantheassurance
Obtainevidence Report
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Stage 2
The evaluation of the factual accuracy and comprehensiveness of the report content using a checklist template and preset checklists
Stage 3
The evaluation of the report content against GRI guidance and/or AA1000AS using a preset checklist
Stage 4
The evaluation of supporting management systems and processes against the AA1000 Framework
Stage 1
Desk research to identify materiality in relation to the organization, its production and operations and its stakeholders
SGS SRA Verification Process
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Extract from SRA Interim Management Report
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Figure 3: Alignment of CSR Report 2003 with GRI Principles
0
1
2
3Transparency
Inclusiveness
Auditability
Completeness
Relevance
Sustainability ContextAccuracy
Neutrality
Comparability
Clarity
Timeliness
CSR 2003
Maximum Possible
Example Figures from SRA Interim Management Report
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Sustainability is a journey not a destination!
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Global BD manager¡SustainabilitySGS Taiwan Ltd.Tel : +886-2-22993279#1220Mobile : +886-963-149-023Email : [email protected]
