G8 encourage GRI reporting to promote development and support investors

PRLog (Press Release) – Jun 11, 2007 – G8 members yesterday formally encouraged GRI reporting as a means to yield good governance and transparency and thereby achieve poverty reduction, conflict prevention, support sustainable investment decisions, and promote development in emerging economies.

Discussing transparency and sustainable growth – specifically for raw materials – the G8 from their summit in Heiligendamm, Germany said “The development of a consolidated set of principles and guidelines… would help ensue that the [mining] sector contributes to development while at the same time providing a clear and more predictable set of expectations for investors.” As a means to achieve such goals the G8 members said “We encourage mining sector companies to undertake regular reporting using inter alia the Global Reporting Initiative (GRI) framework.”

The G8 endorsement adds additional political weight to what is commonly regarded as the world’s de facto standard in sustainability reporting.

Responding to the call for mining companies to report using GRI, Sir Mark Moody Stuart (Anglo American plc and member of the GRI Board of Directors) said “For the many extractive industries that already use the GRI the G8 reference underlines the importance that transparent reporting has in fostering strong development outcomes, particularly in emerging economies”.

On the use of the GRI Framework by mining companies, ICMM President Paul Mitchell says, "We agree with the G8 that regular reporting using GRI can help companies improve their contribution to sustainable economic, environmental and social growth."

Debates on who is responsible for sustainable development have shifted in recent years and the rise of companies stepping up to manage, monitor and communicate their sustainability impacts has been an influential factor amidst this changing landscape.

The G8 also formally welcomed that the GRI Framework be applicable to SMEs. Jacqueline Aloisi de Larderel (Former Assistant Executive Director, United Nations Environmental Programme) said “SMEs account for approximately 90% of businesses worldwide. My experience is that SMEs increasingly discover that through disclosure of their environmental, social and economic performance they can attract clients and improve their role as suppliers. In recent years we’ve seen a steady increase in SME reporting - aided by the support of the GRI’s SME handbook - especially in emerging economies”

G8 members also highlighted sustainable investment as a means to promote development in emerging economies. Speaking at the GRI’s offices in Amsterdam, Chief Executive Ernst Ligteringen said “The fact the G8 declaration highlights investment decisions, transparency, and sustainable development is key. The global economy is rapidly changing and although sustainability brings challenges stakeholders should not be too quick to overlook opportunity. Transparent, trusted information that yields good investment decisions offers a strong opportunity for 21st century companies”.

The GRI has enjoyed high-profile political coverage in the past, such as at the World Summit for Sustainable Development and at their international conference in Amsterdam last year that attracted the likes of Al Gore.

The GRI was the only reporting standard acknowledged by the G8. The group also encouraged active engagement with the UN Global Compact: an initiative with which the GRI holds a special alliance. The G8 also reaffirmed the importance of multi-stakeholder consensus in delivering sustainability – an approach the GRI holds fundamental.

Reflecting on the G8’s calls, Sir Moody Stuart said “Companies that do not transparently communicate their sustainability performance are running out of excuses.”

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Notes to editors

About GRI
The Global Reporting Initiative’s (GRI) vision is that reporting on economic, environmental, and social performance by all organizations becomes as routine and comparable as financial reporting. GRI accomplishes this vision by developing, continually improving, and building capacity around the use of its Sustainability Reporting Framework.

An international network of thousands from business, civil society, labor, and professional institutions create the content of the Reporting Framework in a consensus-seeking process.

The GRI’s Reporting Framework is largely seen as the global de facto standard in sustainability reporting.

The Sustainability Reporting Guidelines (currently in their third iteration: the so-called “G3”) are the base of all reporting guidance. Sector Supplements, such as the Mining and Metals Sector Supplement, provide sector-specific guidance and are designed to be used in conjunction with the core Guidelines.

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