Guidelines

• Overview of Sustainability Reporting
• Overview of the Guidelines
• Part 1: Report Content, Boundary, and Quality
• Guidance for Defining Report Content
• Principles for Defining Report Content
• Setting the Report Boundary
• Quality of Reported Information
• Part 2: Standard Disclosures
• Disclosure Items
• 1: Strategy and Analysis
• 2: Organizational Profile
• 3: Report Parameters
• 4: Governance, Commitment & Engagement
• Disclosures on Management Approach and Performance Indicators
• Economic Performance Indicators
• Environmental Performance Indicators
• Social Performance Indicators
• Part 3: Guidelines use and report compilation
• Glossary

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Part 2: Standard Disclosures

This section specifies the base content that should appear in a sustainability report, subject to the guidance on determining content in part 1 of the Guidelines. Reporting organizations are encouraged to follow this logical structure in compiling their reports, however, other formats may be chosen.

Disclosure items

1: Strategy and Analysis

1. Statement from the CEO and chair, or head of the organization who is independent of the reporting organization’s executive management about the relevance of sustainability to the organization and its strategy.

The statement should present overall vision and strategy of the reporting organization for the short-term and medium-term (e.g., 3-5 years), particularly with regard to managing the key challenges associated with economic, environmental, and social performance. The statement should cover:

• Strategic priorities and key issues for the short/medium-term with regard to sustainability, including respect for internationally agreed standards, and how they relate to long-term organizational strategy and success;
• Broader trends (e.g., macroeconomic or political) affecting the organization and influencing sustainability priorities;
• Key events, achievements, and failures during the reporting period;
• Views on performance with respect to targets; and
• Outlook on the organization’s main challenges and targets for the next year and goals for the coming 3-5 years.

2. Description of Key Risks and Opportunities

The reporting organization should provide two sections that summarize the performance and other contextual information that has the highest strategic significance for the organization and its stakeholders. Section A should be a concise narrative of the organization’s sustainability impacts and effect on stakeholders, including rights as defined by national laws and relevant internationally agreed standards. This should take into account the range of concerns of stakeholders to the organization. Section B should focus on the disclosure of information relevant to understanding the impact of sustainability trends, risks, and opportunities on the prospects of the organization. This should concentrate specifically on information that is material for financial stakeholders or could become so in the future.

Section A should cover the following points:

• Description of the major impacts of the organization related to sustainability and associated major challenges and opportunities, including the effect on stakeholders’ rights as defined by national laws and the expectations in internationally-agreed standards;
• Explanation of the organization’s prioritization of its approach to these challenges and opportunities;
• Key conclusions regarding progress in addressing these issues and related performance in the reporting period, including assessment of reasons for underperformance; and
• Description of major processes in place to address performance and/or major changes.

Section B should cover the following points:

• Description of the most important risks and opportunities deriving from sustainability trends;
• Explanation and prioritization of key risks and opportunities according to their potential contribution to business strategy, competitive position, qualitative and (if possible) quantitative organizational value drivers;
• Table(s) summarizing:
• targets, performance against targets, and commentary on lessons for various key risks and opportunities;
• priorities, objectives, and mid-term goals (i.e., 3-5 years) for key risks and opportunities;
• Concise description of governance mechanisms in place specific to managing these risks and opportunities, and identification of other related risks and opportunities.

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