The Global Reporting Initiative (GRI) is a long-term, multi-stakeholder, international process whose mission is to develop and disseminate globally applicable Sustainability Reporting Guidelines. These guidelines are for voluntary use by organizations for reporting on the economic, environmental and social dimensions of their activities, products and services. The aim of the Guidelines is to assist reporting organizations and their stakeholders in articulating and understanding contributions of the reporting organizations to Sustainable Development.

• Drives internal improvements

• Strengthens dialogue with stakeholders

• Sharpens long-term strategic decisions

• Increases competitive advantage

• Attracts and retains employees

• Builds trust with investors and customers

• Manages risk and protects reputation

The late 20th century saw worldwide progress in harmonising financial reporting. Indeed, the rich tradition of financial reporting, continually evolving to capture and communicate the financial condition of the organization, has inspired GRI’s evolution.

There are now a wide range of tools and methodologies such as environmental and social management systems, pollution prevention and codes of conduct to help guide companies develop their strategies to address growing questions about environmental and social performance. However, beyond adopting new practices, companies must also employ effective means to measure progress and communicate results to external organizations. The Kuala Lumpur conference was planned to discuss the following issues.

• Corporate experience with the GRI Sustainability Reporting Guidelines

• How investors, consumer groups, governments and
  non-governmental organizations in Asia plan to use the GRI Guidelines

• Opportunities for involvement in the new GRI institution

• Corporate social responsibility measurement and disclosure issues

• Reporting in the context of global supply chains

The Global Reporting Initiative (GRI) conference was organized by GRI Environmental Protection Society Malaysia (EPSM) and the Association of Chartered Certified Accountants (ACCA), Malaysia as part of a long-term strategy for a GRI presence in Asia.

Higher standards of corporate disclosure hold the promise of achieving stronger corporate governance and overall performance for transnational, national and locally-owned enterprises. However, the GRI remains aware of possible unintended consequences regarding competitiveness, trade and equity. This forum was designed to explore these issues in the Asian context.

Many companies have developed internal management systems to track their performance, set targets and measure progress. And reporting is a key element in the continual improvement of an environmental management system such as ISO 14001 or EMS. Many companies highlighted the problem of unavailability of the GRI report writing consultants/experts.

Some very useful examples of Government involvement in reporting were presented. Hong Kong’s very interesting experience was profiled. "In 1992, all papers submitted to the Executive Council were required to include "green" paragraphs indicating the likely environmental implications of the proposals. In 1994, all government departments and bureaus appointed green managers to oversee their environmental measures and monitor their green performance. Leading by example, nearly all government bureaus and departments have published their annual environmental performance report starting from 2000."

The Hong Kong Environmental Protection Agency is actively promoting guidelines for environmental reporting.

The GRI and SMEs

There was extensive discussion around how the GRI applies to SMEs (small and medium sized enterprises). How can a focus on reporting and accountability add to business value for SMEs in Asia? Or will it disadvantage them?

Two groups were formed amongst the participants for the workshops as:

• Stakeholder/User Workshop

• Corporate Reporter Workshop

Stakeholder/User Workshop

Hosted by:
United Nations Environment Programme

Moderator:
Shri Mahesh Pradhan, UNEP Regional Office, Thailand

Resource Speakers:
Shri Henry Marszalek, Ford Motor Company, Australia

Dr. Aditi Haldar, Senior Environmental Scientist, Development Alternatives, India

• Shri R.P. Sharma, The Tata Iron and Steel and Company Ltd., India

• Sushri Brenda Bateman, International Resources Group

• Shri Sean Gilbert, Global Reporting Initiative

Many types of groups will use GRI reports, including civil society, government, investors, consumers, media and companies themselves. This workshop explored the range of activities that could make use of a surge in GRI reports throughout Asia.

Corporate Reporter Workshop

Hosted by:
The Greening of Industry Network – Asia (GIN-Asia) and National Research Centre for Environment and Hazardous Waste Management, Thailand

• Dr. Somporn Kamolsiripichaiporn, director of GIN-Asia, Thailand

Premise:
Companies see the value in using the guidelines to measure and publicly report information.

1. Review the content of the draft 2002 GRI Guidelines

2. Help companies plan how they will undertake GRI sustainability reporting

1. Welcome and Introduction

2. Brief overview of the 2002 GRI Guidelines

3. Brainstorm/Create a road-map

a. Making the Decision to Report.

How do you secure internal commitments and ensure a multi-stakeholder process?

What technical expertise and internal systems will you need to have in place to succeed?

A Championship Driving Golf Course, endorsed by Professional Golfers (PGA), at Amby Valley, Sahara Lake City

b. Using GRI Guidelines Internally

How does the GRI framework help with internal management?

c. Choosing Content

What does it mean to be "in accordance with" the GRI reporting format? What do stakeholders need and want in a sustainability report?

d. Viewing the Longer-Term

Which facilities, businesses and issues will you report on right now and how might your reports grow in scope in the future?

4. Strengthening GRI in Asia

a. How could the external environment be made more conducive for companies to create GRI reports?

Overall outcome of the Conference:

There was considerable lively debate, discussion and networking around measuring and reporting on corporate sustainability. The level of enthusiasm and interest from across the Asian region was indeed encouraging.

It is not surprising to see that the debate around social versus environmental indicators was broad-ranging. The GRI admits that there is not yet the level of consensus around social indicators as there is on environmental indicators. It has identified that it needs to undertake further discussion and engagement with stakeholders to develop a more robust set of social performance indicators.

All participants learnt a great deal more about the GRI. The GRI Board members and staff present were able to hear directly the ideas, issues and concerns of business, NGOs, government and academics in the region.