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THEORIES IN THE BOOK

Details of reporting

Reporting evolution

Step 1- Already we manage to find a solution for financial reporting ( globally readable) , the base of the
thinking of sustainability reporting was in the same line, if we manage with economics what we should
not do it with social and environmental.
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Step 2- Different efforts tried to find frameworks and the themes that needed to be reported
( companies, university…)

Step 3- Now- let’s go for integrated reporting of financial and sustainability reporting.

Very few companies challenge themselves to the integrated reporting ( sustainability reporting).

CLIMATE DISLOUSURE STANDARDS BOARD- article has examples

One of the organizations that challenge themselves for sustainability reporting.

NGO- group of different nonprofit institutions interested in climate problems ( not formal partners but
they collaborate)

CDSB started with environmental issues and then business stepped in. Is struggling ( main idea) to find
how is the best way to communicate ( using the correct metric).

CDSB is an international consortium of business and environmental NGOs committed to advancing and
aligning the global mainstream corporate reporting model to equate natural capital with financial
capital.

Offering companies a framework for reporting environmental information with the same rigor as
financial information.

CDSG FRAMEWORK

Started quite recently, but in the last years there was a strength of the efforts.
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Started in 2010- risks and opportunities that climate change represents ( that was for the need of
investors/ insurance ).

2015 they already improved the framework and they made a wider reporting in environmental and
climate change.

2018- to align with the recommendations of the task force

On climate related financial disclosures…

2022- they expanded the framework to include social issues.

Task force on climate related financial disclosures

Financial stability board ( FSB) - TCFD- 2018 took this idea

To helps identify the information needed by investors, lenders and insurance underwriters to
appropriately asses and price climate-related risks and opportunities.

They recommend that to have a proper disclosure there are 4 important things to have in the report:

1. Governance
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2. Strategy
3. Risk management
4. Metrics and targets

EU NON- FINANCIAL REPORTING DIRECTIVE

By law it is needed to report environment/ social issues without a framework.

Till 2014 – this has been a big change

2014- EU law requires certain large companies to disclose information on the way they operate and
manage social and environmental challenges.

EU rules on non-financial reporting currently apply to large public-interest companies with more than
500 employees. This covers approximately 117000 large companies and groups across the EU.

Large companies have to publish information related to: environmental matters; social matters an
treatment of employees; respect for human rights; anti-corruption and bribery; diversity on company
boards ( in terms of age, gender, educational and professional background).

BUSINESS REPORTING ON THE SDG’S

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The same idea of idea compass.

1- Prioritizing the SDG’s

Effective reporting- 4 c’s

1. Concise: Focuses on the priorities and most material information, and avoids clutter and
information overload.
2. Consistent: allows for an assessment of performance trends over time; it enables managing and
understanding the insights delivered by the reported data.
3. Current: a useful window that gives insights into the operations, impacts and potential od
business opportunities rather than a rear-view mirror showing what happened in the past.
4. Comparable: allows information users to benchmark performance against peers. It enables
businesses to track and asses their impacts, and then make decisions that will improve these
over time.

Practical checklist – what to set out in your report?

You need to think for who are you writing your report

Data user’s information needs:

- Government
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- Investors
- Civil society
- Consumers
- Academia

Depending on the target you choose a stile of reporting or another like more technical or less. In case
they want to target all of them they need to be technical and readable.

FRAMEWORKS AND REPORTING STANDARDS

Keeping one as a bade will make the report easy to follow.

GRI- Global reporting initiative standards

B IMPACT ASSESMENT

TCFD- task force on climate-related financial disclosure

IIRCS- International integrated reporting council

CDP- carbon disclosure project

SASB- sustainability accounting standards board - standards

The time has come- they showed the trend of the reporting checking 200most relevant companies per
country.

GRI STANDARDS

Main use global standards.

We saw that in the stakeholder engagement.

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Companies are not obliged to GRI

If you use the GRI- let the initiative now and be coherent

All the standards are done individually as the company can use everything or just one.

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There is metrics / calculations and guidelines on how to report the information taken from the
calculations.

The standards are designed as an easy to use modular set, delivering an inclusive picture of an
organization’s material topics, their related impacts and how they are managed.

- The universal standards- now revised to incorporate reporting on human rights and
environmental due diligence , in line with intergovernmental expectations- Apply to all
organizations.
- They new sector standards enable more consistent reporting on sector specific impacts
- The topic standards adapted to be used with the revised universal standards then list
disclosures relevant to particular topic.

USE OF GRI STANDARDS

Organizations can:

- Either use the GRI standards to prepare a sustainability report in accordance with the
standards.
- Or use selected standards
- Or parts of their content

OVERVIEW OF THE SET OF GRI STANDARDS

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EXAMPLE OF METHODOLOGY REPORTING

ENEL REPORT
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CLASS JOB

Acciona 2020 sustainability report

205 anticorruption

ACCIONA

Anti-Corruption Policy: approved in 2013, this policy establishes the group’s clear and explicit position
against any corrupt or criminal act, which extends to all persons who are part of the company in their
professional performance.

Disclosure 205-1 Operations assessed for risks related to corruption

ACCIONA has adopted and implemented an Organisation and Management Model for Crime Prevention
and Anti-Corruption (MPDYA), the characteristics of which are as follows:

- AUDIT
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Disclosure 205-2 Communication and training about anti-corruption policies

and procedures

A total of 2,681 employees have received training on issues related to anticorruption. At the same time,
2,464 employees participated in the Code of Conduct course last year (since 2017, more than 12,700
workers have received this training), available for the whole workforce in 7 languages. We have also
trained 984 employees in other training courses on compliance and 160 employees in a face-to-face
course on competition law given by a prestigious law firm. We also distributed six videos of the online
course on fight against corruption of the United Nations Global Compact.

Disclosure 205-3 Confirmed incidents of corruption and actions taken

GC

Board of Directors, executives, and employees shall strictly adhere to and

comply with GC’s Anti-corruption Policy and practice, and the Corporate
Governance & Business Code of Conduct Handbook.

Disclosure 205-2 Communication and training

about anti-corruption policies and procedures
Hook Acknowledgment & Learning System”, an online learning and
evaluation system about corporate governance, corporate compliance,
business code of conduct, and anti-corruption, in two languages, namely
Thai and English.
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Board of Directors, executives and employees, with or without possible

conflict of interest to GC Group, shall complete conflict of interest
disclosure form in writing or through the Conflict of Interest System (COI
Application) on an annual basis. This is to monitor possible conflict of
interest within the organization and prevents any attempt to gain personal
benefit for oneself and/or that of related parties.

Disclosure 205-1 Operations assessed for risks related to corruption

GC has conducted the Control Self-Assessment (CSA) x Compliance

Universe Workshop for executives and employees in each operating unit as
well as subsidiaries. This Workshop aims to educate operators about
compliance risks, enabling them to identify such risks, assess appropriate
control measures, and define guidelines for improvement, correction, and
development, which will assist GC to manage process level risks within
acceptable limits.

Disclosure 205-3 Confirmed incidents of corruption and actions taken

- THEY DON’T SAY ANYTHING

ACCIONA
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Disclosure 207-4 Country-by-country reporting

TAX REPORTING

GC 1 AND 2

203: Indirect
Economic Impacts