THE DRAFT GRI GUIDELINES

1. THE DRAFT GRI GUIDELINES Lifting the Curtain on G3Moscow, March 23, 2006 HOSTED BY

2. Welcome and … • … thank you to our Host • … and our Sponsors

3. Sneak Peeks:a global roadshow

4. CSR reporting on the rise Source: KPMG International Survey of CSR Reporting 2005

5. Nature of CSR reportinghas changed Source: KPMG International Survey of CSR Reporting 2005

6. % of top 100 companieswith separate report Source: KPMG International Survey of CSR Reporting 2005

7. % of companies withseparate report (top 100) Source: KPMG International Survey of CSR Reporting 2005

8. Mentioned businessdrivers

9. CSR – cultural impactin different regions

10. How KPMG seesthe future for CR Source: KPMG International Survey of CSR Reporting 2005

11. Future trends • StandardisationAn accelerating shift towards common formats for non-financial reporting • ConsolidationA shake-out of concepts, content and language of non-financial reporting • RegulationEmergence of government mandated non-financial reporting • IntegrationGrowing attempts to merge, or blend, much of non-financial reporting with financial reporting * from S&P, SA and UNEP: Risk and Opportunity

12. Part 1 Context for development

13. G3: growth in expertise 810+ in 58 countries

14. G3: Savier Stakeholders

15. Continuous improvement

16. Ongoing cyclical process Public Comment Guidelines Update User Experience Governance Review Structured Feedback Process Stakeholder Dialogue Synthesis

17. SFP 2005 2 January Advisory Groups Secretariat Secretariat 31 March Indicators WG 20 June Secretariat Board and SC TAC TAC Reporting Process WG Board & TAC 2004 PUBLIC COMMENT PERIOD ! SC Secretariat Board OCT 5 Launch G3: building process

18. G3 objectives MakeG3-Reportsmore: Relevant Comparable Auditable Performance focused Make G3-Guidelines : More user-friendly The common reporting framework Universally applicable

19. GRI Resources Reports Register Learning Support

20. Guiding your process: Principles Boundaries G3 Setting your content: Disclosures Indicators (Supplements) Preparing your report: Protocols on “how to” G3 Dimensions

21. Part 2 G3 Guiding the Process

22. Guiding your process: Principles Boundaries G3 Standard Disclosures: Disclosure Items Management Disclosures Indicators Supplements Preparing your report: Protocols on “how to” Section 2: Guiding your Process

23. Content Strategy and Analysis (Risk, Opportunity Focus reg. whole organisation) Boundary Principles Organisational Profile Quality Report parameters G3 Disclosure Items Governance, commitments, and engagement Standard Disclosures DMA Core Perf. Indic’s Add’n Perf. Indic’s Economic Category Disclosure on Management Approach (DMA) and Performance Indicators Environmental Category Labour Human Rights Society Product Responsibility Social Category G3 Map

24. Principles: Two Groups The reporter’s navigation system: What to report on: Relevance and materiality Sustainability context Completeness Inclusivity Ensuring quality info: Comparability Accuracy Assurability Timeliness Clarity Balance

25. Your Process Issues and Indicators Stakeholders’ views ? Sustainability Context ? Relevant and material ? Report boundary ? Complete ?

26. NEW NEW NEW Principles: What’s New? Concise definitions Each principle Practical explanations Self-tests

27. Example: Relevance and Materiality The information in a report should cover issues and indicators that would substantively influence the decisions of the stakeholders using the report. Tests: External factors such as: Stakeholder concerns Issues reported by peers Reasonably estimable emerging risks Internal factors such as: Mission and values Major risks to organization Core competencies and link to sustainability Report prioritizes issues

28. Material: Important for stakeholders’ knowledge and decisions. Relevant: Could be important to stakeholders. Not material: Nice to know, but not important. Relevant and Material ? Not relevant: Not important to stakeholders. Relevance and Materiality

29. timeliness assurability accuracy balance Ensure Quality Info clarity comparability • REPORT

30. Example: Balance Tests: The report discloses both favourable and unfavourable results and issues. The information in the report is presented in a format that allows users to see positive and negative trends in performance. The emphasis on different content of the report is proportionate to the relative materiality of the issues or information. The report should provide a balanced and reasonable presentation of the reporting organization’s performance

31. New: Boundary Setting High Subsidiary? Supplier Impact JV OEM Low Influence and Control

32. GRI: Policy Assurance 1. Recommended 2. External/independent

33. Assurance Guidelines for more assurable reporting content Guidance on assurance choices Highest GRI reporting level: externally assured?

34. Part 3 G3 Standard Disclosures

35. Guiding your process: Principles Boundaries G3 Standard Disclosures: Disclosure Items Management Disclosures Indicators (Supplements) Compilation: Protocols on “how to” Section 3: Standard Disclosures

36. Content Strategy and Analysis (Risk, Opportunity Focus re whole organisation) Boundary Principles Organisational Profile Quality Report parameters G3 Disclosure Items Governance, commitments, and engagement Standard Disclosures DMA Core Perf Indics Add’n Perf Indics Economic Category Disclosure on Management Approach (DMA) and Performance Indicators Environmental Category Labour Human Rights Society Product Responsibility Social Category G3 Map

37. Section 3: Standard Disclosures strategy context management approach performance

38. G3 Indicators’ Performance focus: Factual change over time Quantitative or qualitative, but comparable Valuation depends on context and reader Evolution of Indicators in·di·ca·tor [n] : a number or ratio derived from a series of observed facts; can reveal relative changes as a function of time. (Princeton University)

39. policies Disclosure on Management Approach systems Performance Indicators results Evolution of Indicators 2002 Indicators G3 Indicators policies

40. Economics Key concepts: Economic Value Market presence Indirect impacts Consolidation New topics Assurability Performance shift

41. Consolidation New topics Assurability Performance shift Environment Key concepts: Inputs and outputs Products and services Transportation

42. Consolidation New topics Assurability Performance shift Social Key concepts: Decent work Core ILO Conventions Consumer rights Product stewardship Societal responsibilities

43. Indicator Protocols EN 9: total water withdrawal by source (core) relevance definitions references compilation documentation

44. Section 4: What’s Next? 1. Future initiatives 2. What you can do

45. GRI Resources Reports Register Learning Support

46. Support: On its Way Harmonization Expanded resource library Guidelines use levels “How to” services

47. Training, education and certification 2 1 3 Users’ Manual G3

48. New OnlineReport Register =

49. G3 Clear Reports Inc. Software G3 Easy Reports Ltd Software Guidelines in Digital Format GRI “inside”

50. Submit your Comments Web-based public comment form is the only way: www.grig3.org March 31 2006 SOLUTION-ORIENTED FEEDBACK!