CSR

• - dematerialization
• - Usability (brauchbarkeit
• - Recyclability
• - Reuseability
• - Long product life
• - Efficiency, low emissions

While it has been considered a form of corporate self-regulation for some time, over the last decade or so it has moved considerably from voluntary decisions at the level of individual organizations to mandatory schemes at regional, national, and international levels

With some models, a firm's implementation of CSR goes beyond compliance with regulatory requirements and engages in "actions that appear to further some social good, beyond the interests of the firm and that which is required by law".

ISO 26000 is the recognized international standard for CSR. Public sector organizations (the United Nations for example) adhere to the triple bottom line (TBL). It is widely accepted that CSR adheres to similar principles, but with no formal act of legislation.

Becker-Olsen (2006) found that if the social initiative done by the company is not aligned with other company goals it will have a negative impact.

• Value creation (with fundamental strategic and operational impact as part of business strategy
• Risk Management (with medium impact and mainly to mitigate risks)
• philanthropy (little impact, only a financing question)

ISO 20400:2017 provides guidance to organizations, independent of their activity or size, on integrating sustainability within procurement, as described in ISO 26000. It is intended for stakeholders involved in, or impacted by, procurement decisions and processes.

Sustainable procurement is a key aspect of social responsibility. ISO 26000 formed the basis of ISO 20400, drawing on the same principles and core subjects of human rights, labour practices and fair business practices. As such, ISO 20400 will help individuals working in procurement to integrate the principles of social responsibility as described in ISO 26000 within the purchasing process.

In a nutshell, governance is the systems and processes concerned with ensuring the overall direction, effectiveness, supervision and accountability of an organization

Published just last year, ISO 37001 is the first international anti-bribery management system standard designed to help organizations combat bribery risk in their own operations and throughout their global value chains.  It defines, for the first time, a single internationally recognized set of measures addressing anti-bribery compliance

The standard requires organizations to take a series of measures, proportionate to their circumstances, to prevent, uncover and address bribery. These include: •

• Adopting an anti-bribery policy •
• Appointing a compliance officer •
• Vetting and training employees •
• Undertaking risk assessments •
• Implementing financial and commercial controls •
• Instigating reporting and investigation procedures •
• Communicating the policies, procedures and requirements to all staff, contractors, suppliers, and other third parties

On April 1, 2014, India became the first country to legally mandate corporate social responsibility. The new rules in Section 135 of India's Companies Act make it mandatory for companies of a certain turnover and profitability to spend two percent of their average net profit for the past three years on CSR

Sust. Accouting reflects the governance and mgt of a co's environmental and social impact arising from production of goods and services, as well as its governance and mgt of E and S capitals necessary to create LT value. The SASB also refers to Sust. as ESG, though traditional corporate governance issues such as board composition are not included within the scope of the SASB's standard setting activities  

Achtung Menschenrechte entlang globaler Lieferketten, soll per 1.1.2023 in Kraft treten. 

• ca. 600 U' mit mehr als 3000 MA, ab 2024 ab 1000 MA (KMU noch ausgeschlossen)
• Stufenmodell (eigenes, first tier, subs. tiers suppliers), für indirekte "anlassbez. DD", z.B. Hinweis von NGO
• keine neuen Haftpflichtregeln (es kann schon jetzt zivilrechtl. gg dt. U geklagt werden, aber neu dt NGO oder unions können im Namen klagen
• Verstösse mit Bussen und z.T. Ausschluss öff. Aufträge

In other words, issues or information that are material to environmental and social objectives may develop to have financial consequences over time.

No. The IFRS Foundation and the IIRC both strive to progress the quality, consistency and accountability of corporate reporting through collaborative means. This collaborative effort was highlighted in 2020, as five global sustainability and integrated reporting organizations (CDP, CDSB, GRI, IIRC and SASB) published their statement of intent to work together, the IIRC and SASB announced their intention to merge, becoming the Value Reporting Foundation and the IFRS Foundation began an exploration into broadening its remit beyond financial reporting standards. Following a consultation on the creation of a Sustainability Standards Board, the IFRS Foundation has acknowledged the urgent demand for global consistency and comparability in sustainability disclosure.  The IIRC supports this direction and believes that existing frameworks and standards, together with TCFD’s recommendations, should act as the building blocks for the IFRS to develop global sustainability standards relevant to enterprise value creation.

Generally, sustainability reports cater to a broad stakeholder base and communicate organizational impacts on the economy, the environment and society. By contrast, an integrated report explains to providers of financial capital how the organization creates value over the short, medium and long term. Notably, the integrated reporting movement was founded on the premise that traditional financial reporting, with its disproportionate emphasis on historical financial statement performance, provided an incomplete picture of the organization’s ability to create and preserve longer term value. Integrated reporting, therefore, extends the scope of the core investor document beyond financial capital to also reflect the influence of human, intellectual, manufactured, social and relationship, and natural capital. Some information normally found in a sustainability report may very well migrate into the integrated report, but only to the extent that it materially relates to value creation over time.

The main differences between the two report forms, in terms of purpose, audience and scope are as summarized below.

Integrated ReportSustainability Report

PurposeExplain to providers of financial capital how value is created over timeCommunicate the entity’s broader social and environmental impacts, strategies and goals

AudienceProviders of financial capital and others interested in the organization’s ability to create valueMulti-stakeholder

Scope

• Organizational overview and external environment
• Governance
• Business model
• Risks and opportunities
• Strategy and resource allocation
• Performance
• Outlook
• Basis of preparation and presentation

Significant impacts in the following performance areas:

• Economic
• Environmental
• Social, including labour practices, human rights and broader societal influences
• Governance

Committees of various departmetns etc

Location: 

• Separate unit
• part of existing unit (eg Legal)
• based on recommendation of regulatory unit

Must have

• senior mgt involved
• specific individual involved day to day
• regular reporting
• adequate resources and budget

Sustainable Industry Classification System (SICS)

SASB Frameworks

• principle based guidance on how info is structured, prepared and what topics covered

SASB Standards

• Specific, detailed & replicable require. for what should be reported for each topic incl. topics.

none

ESG = CSR + increased Social & Governance metrics

Environment ("E*)

• GHG, Climate Mitigants, Energy Eff., Transp., Waste generation, water mgt

Social

• Inclusion & Diversity, HuRi, Empl. educ., philantropic, Data and privacy, supply chian

Governance

• transparency, good mgt.

Elevate to next level by rolling out well-structured ESG programs to align with market expectations and investors

Driven by Bloomberg, Blackrock, SASB and others

Has 70 industry specific standards

ISO 20400 = sustainable procurement standard (not certifiable!)

ISO 2600 = guidance for social responsibility (not certifiable!)

Sust. procurement is a central tenet of SR and is envisaged that ISO20400 will complement IS26000. This is because ISO20400 directs organizations to minimize their E footprint, review their impact on HuRi and act to positively contribute to society and the economy. To this end, important practices explored in ISO26000 such as DD, setting priorities, avoiding complicity of all parties involved

ISO 9000 (1989): procuring organizations for standard product quality (more for internal purposes) and updated 2015. CERTIFIABLE!

ISO 14000 (1990s): similar to 9000 but exclusive focus on E aspects. accurate claims enabled to report on E with controlled processes and data collection (updated 2015) CERTIFIABLE!

ISO 26000 (2010) = ISO14000 plus social aspect, but only guidance and NOT CERTIFIABLE. 

ISO proves (only) use of certain standard methods, but not proof of correct Input and therefore correct Results. 

Global Reporting Initiative: Modular structure with some flexibility. Sector standards, currently 1) oil, gas and coal and 2) agriculture & fishing (announced)

• GRI 101: any org. to report on E or Social impact
• GRI 102: put in context
• GRI 103: Mgt approach. how does mgt work?
• GRI 201-207: insight into economic activity
• GRI 301-308: ditto into ecological....(emissions and waste)
• GRI 401-419: Social (health, safety, child labour etc.)

• continuous evolution make hard to compare reports
• few instructions how to report
• can have unintended impacts on mgt, practices and goals

All: 1.6x Earths (E)

CH: 3.3x