Reporting as a process

The purpose of this paper is to use the reporting experience of companies to identify a number of issues relevant for a forthcoming revision of the GRI Guidelines. The paper details key findings on issues such as stakeholder dialogue, applying the GRI Reporting Principles, the relationship between sustainability reports and annual reports, and putting reports to use.

Using Stakeholder Dialogue:

• there is a clear distinction between stakeholder dialogue that is undertaken to improve business performance, and stakeholder dialogue that is undertaken to improve sustainability reports
• at times there seems to be confusion with some companies thinking first and foremost about NGOs, civil society and opinion leaders – the “professional stakeholders” - when asked about stakeholder dialogue, which is generally at the expense of customers, employees and suppliers

Applying the GRI Reporting Principles:

• the GRI Reporting Principles are not widely used, with around half of the companies interviewed unfamiliar with the GRI Reporting Principles, which is in stark contrast to companies’ familiarity with the GRI Indicators
• yet many companies appear to be applying or adhering to the GRI Reporting Principles as a subconscious part of the reporting process

Sustainability Reports and Annual Reports:

• there remains limited integration between sustainability and financial reporting in terms of both processes and content, yet there is a possibility for further integration in the future
• relatively few annual and sustainability reports are published simultaneously, although there is a trend toward coordination of publishing schedules.

Executive Approval

• there seems to be a lot of variation in how "senior executive sign-off" is approached by different companies: some involve just their CEOs or Chairmen, others involve either their whole board or relevant subcommittee, or have the head of their sustainability department sign off the entire report
• his raises some interesting questions to consider. Does the diversity of approaches to report sign-off processes matter to the GRI? Is flexibility a good thing, or should the GRI specify some level of consistency in the way reports are signed off and approved?

Putting Reports to Use:

• reports are an important source of information for Socially Responsible Investment (SRI) analysts
• reports also serve as an important vehicle for communicating with employees and are a valuable knowledge management tool for companies.

The article concludes that the challenge now is to revise the Guidelines such that they are ready to become the globally accepted sustainability reporting framework used by thousands, not hundreds, of organisations. Findings suggest that the GRI appears well placed to fulfil this challenge.