While the sustainability performance of corporate India may be debatable, Indian companies are coming out with the highest proportion of complete sustainability reports worldwide. About 80% of Indian sustainability reports feature all the required information, according to the just-released data by the Global Reporting Initiative (GRI). Amsterdam-based GRI has laid down the most comprehensive and recognised framework (G3) for writing sustainability reports. In an email interview with FE’s Rajiv Tikoo, GRI chief executive Ernst Ligteringen talks about the growing acceptance of sustainability reporting in India and its relevance in the global marketplace. Excerpts:
What is promoting companies in India to produce sustainability reports and that too of the highest standards?
India is playing an increasingly important role in the world market, and trends in sustainability reporting suggest that it is of increasing importance to companies in the region. Although sustainability reporting is still at an early stage, reports being produced by Indian companies are being checked and taken seriously.
Your strategic alliance with GTZ, now GIZ, to set up the GRI focal point in India under the aegis of the Indian Institute of Corporate Affairs is more than one year old. How do you assess the progress?
GRIs focal point India has taken big steps to increase the quantity and quality of sustainability reports in the region, and disseminate knowledge of GRIs Guidelines. The focal point has established consistent dialogue with government agencies, encouraging the ministry of corporate affairs to participate in the GRI government advisory group. The focal point has been working to integrate sustainability reporting into the financial sector. We are also engaging with leading Indian companies to promote GRIs organisational stakeholder programme.
Are Indias Draft National Voluntary Guidelines on Social, Environmental and Economic Responsibilities issued by the Indian Institute of Corporate Affairs or the Corporate Social Responsibility Voluntary Guidelines 2009 released by the corporate affairs ministry in sync with the changing times?
GRI sees the guidelines as a useful starting point for organisations throughout India embracing sustainability reporting.
You have started work on G4 Guidelines, which would be published in 2013. How would they be fundamentally different from G3 and G3.1?
The development of GRIs guidelines is influenced by changes in the sustainability field and new stakeholder demands for information. GRIs mission is to make sustainability reporting a standard practice, so G4 must be fit for this purpose, addressing these new considerations. GRI will use G3.1 as a starting point for G4, and aim to align G4 with other frameworks and guidance to reduce reporting burden. GRI sees integrated reporting as an important tool for the future, and GRI will strive to align G4 with the framework for integrated reporting currently being developed by the International Integrated Reporting Committee.
You are seeking to mainstream sustainability reporting through integrated reporting. How viable is it as of now when such reporting is still at its infancy?
While integrated reporting is still in its infancy, interest is growing rapidly, and an integral part is disclosing sustainability performance data. GRIs mission is to make sustainability reporting a standard practice, and by supporting integrated reporting GRI is encouraging more people to measure and report their performance.
You have set a goal of 2015 for all large and medium sized companies to report publicly on their economic and environmental as well as social and governance performance. Considering that not even 5,000 companies are doing it today, isnt it too ambitious?
Goals should be ambitious! Is it realistic for a world that needs to adapt urgently to environmental problems and new social realities to tolerate 75,000 multinational enterprises that are not transparent about their sustainability performance Because these companies are not tracking their performance, they do not see the reality of their sustainability impacts, and neither do their investors or stakeholders. We need to push these organisations that are in the dark to start the process of measuring, monitoring and reporting. GRI believes that a report or explain approach to regulating this would be effective.
If they have not done it in the past, why would they do it in the future?
All I have just said boils down to a choice business leaders have; most businesses wait for change to happen and will follow the change, seeing reporting as a necessary burden. But smart business leaders can instead opt to act, prepare for the change that is going to come and position their company to address the challenges India and the world would be facing.
Source: The Financial Express
Published on 23 May 2011