WEF IBC Measuring Stakeholder Capitalism Report 2020

Prepared in collaboration with
Deloitte, EY, KPMG and PwC
Measuring Stakeholder Capitalism

Towards Common Metrics and
Consistent Reporting of Sustainable
Value Creation
WHITE PAPER
SEPTEMBER 2020
Cover: Undplash/Jan Tinneberg
Inside: Unsplash/Javier Allegue Barros; Unsplash/Kimson Doan; Gettyimage/SDI Productions;
Unsplash/Flavio Gasperini; Unsplash/The New York Public Library; Unsplash/Victor Garcia;
Unsplash/USGS; Unsplash/Phoenix Han; Unsplash/ Nooa Gk
Contents
3 Preface 45 Appendix
5 Introduction and summary 48 Introduction
11 Approach 48 Pillar 1 – Principles of Governance

12 Development of recommended metrics 48 Summary of key changes
13 Application of recommended metrics 49 Governance: Core metrics and disclosures
53 Governance: Expanded metrics and
16 Consultation and refinement process disclosures
17 Consultation process
18 Summary of feedback and key changes 55 Pillar 2 – Planet
55 Summary of key changes
20 Pillar 1 - Principles of Governance 56 Planet: Core metrics and disclosures
21 Introduction 59 Planet: Expanded metrics and disclosures
21 Themes
23 Governance: Core metrics and disclosures 64 Pillar 3 – People
24 Governance: Expanded metrics and 64 Summary of key changes
disclosures 65 People: Core metrics and disclosures
69 People: Expanded metrics and disclosures
25 Pillar 2 - Planet
26 Introduction 73 Pillar 4 – Prosperity
27 Themes 73 Summary of key changes
28 Planet: Core metrics and disclosures 74 Prosperity: Core metrics and disclosures
28 Planet: Expanded metrics and disclosures 79 Prosperity: Expanded metrics and
disclosures
31 Pillar 3 -People
32 Introduction 83 Glossary
32 Themes
33 People: Core metrics and disclosures
34 People: Expanded metrics and disclosures
36 Pillar 4 - Prosperity
37 Introduction
37 Themes
38 Prosperity: Core metrics and disclosures
39 Prosperity: Expanded metrics and
disclosures
40 How our work fits into the wider ecosystem

41 Evolving landscape
42 How our work seeks to help
43 Conclusion
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Measuring Stakeholder Capitalism: Towards Common Metrics and Consistent Reporting of Sustainable Value Creation 2
SEPTEMBER 2020 Measuring Stakeholder Capitalism:
Towards Common Metrics and Consistent
Reporting of Sustainable Value Creation
Preface
Brian Moynihan
Chairman and Chief Executive Klaus Schwab
Officer, Bank of America Founder and Executive
Chairman, International Chairman, World Economic
Business Council of the World Forum
Economic Forum
We are in the midst of the most severe series towards creating more prosperous, fulfilled societies
of challenges the world has experienced since and a more sustainable relationship with our
World War Two. The COVID-19 pandemic has planet. It also recognizes that companies that hold
exposed the fragility of our global systems. It has themselves accountable to their stakeholders and
exacerbated underlying economic and social increase transparency will be more viable – and
inequalities and is unfolding at the same time valuable – in the long-term.
as a mounting climate crisis. Leaders in every
sector – government, business, civil society – find The culmination of a year’s effort from contributors
themselves at a defining crossroads. We must on every continent, this work defines the essence
mobilize all constituencies of our global society to of stakeholder capitalism: it is the capacity of the
work together and seize this historic opportunity to private sector to harness the innovative, creative
rebalance our world for the benefit of all. The private power of individuals and teams to generate long-
sector has a critical role to play. term value for shareholders, for all members of
society and for the planet we share. It is an idea
The principles of stakeholder capitalism, whose time has come.
championed by the World Economic Forum for
half a century and recently restated in the Davos This work defines a core set of “Stakeholder
Manifesto 2020, have never been so important. Capitalism Metrics” (SCM) and disclosures that can
The Forum’s International Business Council (IBC) be used by IBC members to align their mainstream
is at the forefront of this rebalancing of corporate reporting on performance against environmental,
purpose. In 2017, the IBC spearheaded a social and governance (ESG) indicators and
commitment from more than 140 CEOs to align track their contributions towards the SDGs on a
their corporate values and strategies with the consistent basis. The metrics are deliberately based
UN’s Sustainable Development Goals (SDGs), on existing standards, with the near-term objectives
to better serve society. There is an emerging of accelerating convergence among the leading
consensus among companies that long-term private standard-setters and bringing greater
value is most effectively created by serving the comparability and consistency to the reporting of
interests of all stakeholders. ESG disclosures.
This is the context within which we present the These recommended Stakeholder Capitalism
conclusions of our project to define common Metrics and disclosures have been developed by an
metrics for sustainable value creation, launched at outstanding task force of experts dedicated to the
the Annual Meeting of the World Economic Forum project by the four largest accounting firms, as well
in January 2020. This project, developed within the as colleagues from Bank of America and the World
IBC, seeks to improve the ways that companies Economic Forum who coordinated the process and
measure and demonstrate their contributions synthesized its outcomes.
We thank our IBC colleagues Punit Renjen We are heartened by the emerging consensus
of Deloitte, Carmine Di Sibio of EY, Bill among IBC members towards their own adoption
Thomas of KPMG and Bob Moritz of PwC for of these metrics and the commitment the group has
the extraordinary commitment and spirit of made to realizing the ideals of stakeholder capitalism.
collaboration that they and their talented teams Similarly, we are encouraged by the substantial
have brought to this project. We also appreciate momentum towards a system-wide solution for ESG
the efforts of our Bank of America and Forum reporting. We invite all IBC members to declare their
colleagues, as well as experts from IBC companies intention to report on these metrics and disclosures;
and other organizations who have provided their collectively, we will present a timeline for that process
input. The Acknowledgements section of the at the IBC’s Winter Meeting in January 2021. Finally,
report recognizes these team members. we encourage the wider corporate community to join
us in this collective endeavour.
1 Introduction and
summary
The context in which businesses now operate The result of this process is 21 core and 34
has been transformed by climate change, expanded metrics and disclosures, which the
nature loss, social unrest around inclusion and project commends to both IBC members and
working conditions, COVID‑19 and changing non‑IBC companies for adoption:
expectations of the role of corporations. Further,
the global pandemic has exacerbated underlying – Core metrics: A set of 21 more‑established
and longstanding failures regarding equality and or critically important metrics and disclosures.
access to economic opportunities. To continue These are primarily quantitative metrics for
to thrive, companies need to build their resilience which information is already being reported
and enhance their licence to operate, through by many firms (albeit often in different formats)
greater commitment to long‑term, sustainable or can be obtained with reasonable effort.
value creation that embraces the wider demands of They focus primarily on activities within an
people and planet. organization’s own boundaries.
The IBC has been leading the way in this initiative – Expanded metrics: A set of 34 metrics
to deliver on the promise of stakeholder capitalism. and disclosures that tend to be less
In 2017, it sponsored the World Economic well‑established in existing practice and
Forum’s Compact for Responsive and Responsible standards and have a wider value chain scope
Leadership, in which more than 140 global business or convey impact in a more sophisticated
leaders committed to align their corporate goals or tangible way, such as in monetary terms.
with the long‑term goals of society. In its Summer They represent a more advanced way of
Meeting 2019, IBC members reaffirmed the measuring and communicating sustainable
significance of environmental, social and governance value creation.
(ESG) aspects of business performance and risk in
creating long‑term value. They flagged the existence The recommended metrics are organized under
of multiple ESG reporting frameworks and the lack four pillars that are aligned with the SDGs and
of consistency and comparability of metrics as principal ESG domains: Principles of Governance,
pain points preventing companies from credibly Planet, People and Prosperity. They are drawn
demonstrating to all stakeholders their progress on wherever possible from existing standards and
sustainability and their contributions to the SDGs. disclosures, with the aim of amplifying the rigorous
work already done by standard‑setters rather than
Consequently, the IBC invited the Forum – in reinventing the wheel. The metrics have been
collaboration with Deloitte, EY, KPMG and PwC – to selected for their universality across industries
identify a set of universal, material ESG metrics and and business models, but the intention is not to
recommended disclosures that could be reflected replace relevant sector‑ and company‑specific
in the mainstream annual reports of companies indicators. Companies are encouraged to report
on a consistent basis across industry sectors against as many of the core and expanded metrics
and countries. The metrics should be capable of as they find material and appropriate, on the basis
verification and assurance, to enhance transparency of a “disclose or explain” approach.
and alignment among corporations, investors and
all stakeholders. The wider objective was – and Since the project began, the ecosystem has seen
remains – “for IBC companies to begin reporting numerous developments. The European Commission
collectively on this basis in an effort to encourage is revising its Non-Financial Reporting Directive. The
greater cooperation and alignment among existing International Organization of Securities Commissions
standards as well as to catalyse progress towards (IOSCO) has set out its intention to accelerate the
a systemic solution, such as a generally accepted harmonization of sustainability standards. The
international accounting standard in this respect.”1 US Securities and Exchange Commission (SEC)
has amended its rules to enhance human capital
The project presented its provisional set of disclosures. The International Financial Reporting
metrics and disclosures to the IBC’s Winter Standards (IFRS) Foundation has agreed to consult
Meeting 2020 in Davos‑Klosters. From January on broadening its mandate to include sustainability
to July, an intense period of consultation with issues. The International Federation of Accountants
more than 200 companies, investors and other (IFAC) has called for the creation of an International
key players elicited valuable feedback, with more Sustainability Standards Board to sit alongside the
than three‑quarters of respondents agreeing that International Accounting Standards Board (IASB)
reporting on a set of universal, industry‑agnostic under the auspices of the IFRS Foundation.
ESG metrics would be useful for their company,
financial markets and the economy more Meanwhile, the five leading voluntary framework-
generally. The refined set of indicators was and standard-setters – CDP, the Climate Disclosure
presented to the IBC’s Summer Meeting in August Standards Board (CDSB), the Global Reporting
2020, where the initiative attracted strong support Initiative (GRI), the International Integrated Reporting
from investors and companies alike, with the great Council (IIRC) and the Sustainability Accounting
majority of participating IBC members committing Standards Board (SASB) – have for the first time
to report against the metrics at the earliest committed to work towards a joint vision. They
opportunity. It is seen as the right thing to do, for presented a paper to the IBC Summer Meeting
business and for society. 2020 and issued a subsequent statement of intent,2
detailing how their work and the IBC’s project are non‑financial issues, risks and opportunities with the
fundamentally complementary and could form the same discipline and rigour as financial information.
natural building blocks of a single, coherent, global
ESG reporting system. By reporting on these recommended metrics in
its mainstream report – and integrating them into
Within the ecosystem, the IBC is seen as carrying governance, business strategy and performance
great influence as a collective. If members take management – a company demonstrates to its
the lead in reporting and promoting the metrics, it shareholders and stakeholders alike that it diligently
will encourage other companies and investors to weighs all pertinent risks and opportunities in
participate in the collective action, creating greater running its business.
momentum towards the convergence the project
aims to realize. But beyond this, those corporations that align
their goals to the long‑term goals of society, as
At the heart of this exercise is the belief that articulated in the SDGs, are the most likely to
the interrelation of economic, environmental create long‑term sustainable value, while driving
and social factors is increasingly material to positive outcomes for business, the economy,
long‑term enterprise value creation. Investors and society and the planet. This is the true definition of
stakeholders now expect companies to report on stakeholder capitalism.
As the UK works in partnership with Italy towards hosting the

COP26 climate change conference in Glasgow in November
2021, I welcome the work of the World Economic Forum’s
International Business Council in creating a set of common
metrics for reporting sustainable value creation. Through this
work you are demonstrating to shareholders, stakeholders
and society at large that the private sector is committed to
measuring and improving its impacts on the environment
as part of the transition to a low‑carbon future. I encourage
governments, regulators, the official accounting community
and voluntary standard setters to work with the IBC towards
creating a globally accepted system of sustainability reporting
based on this project’s groundbreaking work.
Mark Carney, Finance Advisor to the UK Prime Minister for COP26 and
United Nations (UN) Special Envoy for Climate Action and Finance
FIGURE 1 Summary overview of core metrics and disclosures
Theme Governance: Core metrics and disclosures Sources
Governing Setting purpose The British Academy

purpose The company’s stated purpose, as the expression of the and Colin Mayer,
Principles of
means by which a business proposes solutions to economic, GRI 102-26,
Governance environmental and social issues. Corporate purpose should Embankment
create value for all stakeholders, including shareholders. Project for Inclusive
Capitalism (EPIC) and
others
Quality of Governance body composition GRI 102-22,
governing Composition of the highest governance body and its committees GRI 405-1a,
body by: competencies relating to economic, environmental and social IR 4B
topics; executive or non-executive; independence; tenure on the
governance body; number of each individual’s other significant
positions and commitments, and the nature of the commitments;
gender; membership of under-represented social groups;
stakeholder representation.
Stakeholder Material issues impacting stakeholders GRI 102-21,
engagement A list of the topics that are material to key stakeholders and GRI 102-43,
the company, how the topics were identified and how the GRI 102-47
stakeholders were engaged.
Ethical Anti-corruption GRI 205-2,

behaviour 1. Total percentage of governance body members, employees GRI 205-3
and business partners who have received training on the
organization’s anti-corruption policies and procedures, broken
down by region.
a) Total number and nature of incidents of corruption
confirmed during the current year, but related to previous
years; and
b) Total number and nature of incidents of corruption
confirmed during the current year, related to this year.
2. Discussion of initiatives and stakeholder engagement to
improve the broader operating environment and culture, in
order to combat corruption.
Protected ethics advice and reporting mechanisms GRI 102-17
A description of internal and external mechanisms for:
1. Seeking advice about ethical and lawful behaviour and

organizational integrity; and
2. Reporting concerns about unethical or unlawful behaviour and
lack of organizational integrity.
Risk and Integrating risk and opportunity into business process EPIC,
opportunity Company risk factor and opportunity disclosures that clearly GRI 102-15,
oversight identify the principal material risks and opportunities facing the World Economic
company specifically (as opposed to generic sector risks), the Forum Integrated
company appetite in respect of these risks, how these risks and Corporate
opportunities have moved over time and the response to those Governance,
changes. These opportunities and risks should integrate material IR 4D
economic, environmental and social issues, including climate
change and data stewardship.
Theme Planet: Core metrics and disclosures Sources
Climate Greenhouse gas (GHG) emissions GRI 305:1-3,
change For all relevant greenhouse gases (e.g. carbon dioxide, methane,
Planet nitrous oxide, F-gases etc.), report in metric tonnes of carbon TCFD,
dioxide equivalent (tCO2e) GHG Protocol Scope 1 and Scope 2
GHG Protocol
emissions.
Estimate and report material upstream and downstream (GHG

Protocol Scope 3) emissions where appropriate.
TCFD implementation Recommendations
Fully implement the recommendations of the Task Force on of the TCFD;
Climate-related Financial Disclosures (TCFD). If necessary,
disclose a timeline of at most three years for full implementation. CDSB R01, R02,
Disclose whether you have set, or have committed to set, GHG R03, R04 and R06;
emissions targets that are in line with the goals of the Paris
SASB 110;
Agreement – to limit global warming to well below 2°C above pre-
industrial levels and pursue efforts to limit warming to 1.5°C – and Science Based
to achieve net-zero emissions before 2050. Targets initiative
Nature loss Land use and ecological sensitivity GRI 304-1
Report the number and area (in hectares) of sites owned,
leased or managed in or adjacent to protected areas and/or key
biodiversity areas (KBA).
Water consumption and withdrawal in water‑stressed areas SASB CG-HP-
Freshwater Report for operations where material: megalitres of water 140a.1,
availability withdrawn, megalitres of water consumed and the percentage of
each in regions with high or extremely high baseline water stress, WRI Aqueduct water
according to WRI Aqueduct water risk atlas tool. risk atlas tool
Estimate and report the same information for the full value chain
(upstream and downstream) where appropriate.
Theme People: Core metrics and disclosures Sources

Dignity and Diversity and inclusion (%) GRI 405-1b
equality Percentage of employees per employee category, by age group,
People gender and other indicators of diversity (e.g. ethnicity).
Pay equality (%) Adapted from GRI

Ratio of the basic salary and remuneration for each employee 405-2
category by significant locations of operation for priority areas of
equality: women to men, minor to major ethnic groups, and other
relevant equality areas.
Wage level (%) GRI 202-1,
Ratios of standard entry level wage by gender compared to local
minimum wage. Adapted from Dodd-
Frank Act, US SEC
Ratio of the annual total compensation of the CEO to the median Regulations
of the annual total compensation of all its employees, except the
CEO.
Risk for incidents of child, forced or compulsory labour GRI 408-1b,

An explanation of the operations and suppliers considered to have
significant risk for incidents of child labour, forced or compulsory GRI 409-1
labour. Such risks could emerge in relation to:
a) type of operation (such as manufacturing plant) and type of

supplier; and
b) countries or geographic areas with operations and suppliers
considered at risk.
Health and Health and safety (%) GRI:2018
well‑being The number and rate of fatalities as a result of work-related injury; 403-9a&b,
high-consequence work-related injuries (excluding fatalities);
recordable work-related injuries; main types of work-related injury; GRI:2018
and the number of hours worked. 403-6a
An explanation of how the organization facilitates workers’ access

to non-occupational medical and healthcare services, and the
scope of access provided for employees and workers.
Skills for the Training provided (#, $) GRI 404-1,

future Average hours of training per person that the organization’s
employees have undertaken during the reporting period, by SASB HC 101-15
gender and employee category (total number of hours of training
provided to employees divided by the number of employees).
Average training and development expenditure per full time

employee (total cost of training provided to employees divided by
the number of employees).
Theme Prosperity: Core metrics and disclosures Sources

Employment Absolute number and rate of employment Adapted, to include
and wealth 1. Total number and rate of new employee hires during the other indicators of
Prosperity generation reporting period, by age group, gender, other indicators of diversity, from GRI
diversity and region. 401-1a&b
2. Total number and rate of employee turnover during the
reporting period, by age group, gender, other indicators of
diversity and region.
Economic contribution GRI 201-1,
1. Direct economic value generated and distributed (EVG&D),
on an accruals basis, covering the basic components for the GRI 201-4
organization’s global operations, ideally split out by:
– Revenues
– Operating costs
– Employee wages and benefits
– Payments to providers of capital
– Payments to government
– Community investment
2. Financial assistance received from the government: total
monetary value of financial assistance received by the
organization from any government during the reporting period.
Financial investment contribution As referenced in IAS

7 and US GAAP
1. Total capital expenditures (CapEx) minus depreciation, ASC 230
supported by narrative to describe the company’s investment
strategy.
2. Share buybacks plus dividend payments, supported by
narrative to describe the company’s strategy for returns of
capital to shareholders.
Innovation Total R&D expenses ($) US GAAP ASC 730
of better Total costs related to research and development.
products
and services
Community Total tax paid Adapted from GRI
and social The total global tax borne by the company, including corporate 201-1
vitality income taxes, property taxes, non-creditable VAT and other
sales taxes, employer-paid payroll taxes, and other taxes that
constitute costs to the company, by category of taxes.
2 Approach
2.1 Development of recommended metrics
In 2017, the IBC sponsored The Compact for the SDGs as the roadmap for that alignment.
Responsive and Responsible Leadership,3 Accordingly, the metrics that we recommend are
which declared that “society is best served by grounded in the SDGs and in the recognition that
corporations that have aligned their goals to serve bold and transformative steps are needed to shift
the long-term goals of society”, and identified the world onto a sustainable and resilient path.4
The four pillars
The metrics have been organized into four pillars Prosperity – which are aligned with the essential
– Principles of Governance, Planet, People and elements of the SDGs (see Figure 2).
FIGURE 2 The four pillars
Principles of Planet People Prosperity

Governance
The definition of An ambition to protect An ambition to end An ambition to ensure

governance is evolving the planet from poverty and hunger, in all that all human beings
as organizations are degradation, including their forms and can enjoy prosperous
increasingly expected to through sustainable dimensions, and to and fulfilling lives and
define and embed their consumption and ensure that all human that economic, social
purpose at the centre of production, sustainably beings can fulfil their and technological
their business. But the managing its natural potential in dignity and progress occurs in
principles of agency, resources and taking equality and in a healthy harmony with nature.
Source: World Economic accountability and urgent action on climate environment.
Forum and Big Four stewardship continue to change, so that it can
analysis. Definitions be vital for truly “good support the needs of the
for Planet, People and governance”. present and future
Prosperity taken from the generations.
UN’s 2030 Agenda for
Sustainable Development5
Each of these pillars has an important bearing innovative products and services and supporting
on the capacity of a firm to generate shared and the communities in which they live and work.
sustainable value. Performance in one pillar is Companies perform better when their employees
highly interdependent with that in the others. And are well‑trained, diverse and financially secure. The
the corporate community’s performance across inclusion of prosperity as the fourth pillar takes this
all of them has an important influence on the pace project’s work beyond simply “ESG”, highlighting
at which society advances towards the broader the importance of prosperous societies and the
aspirations enshrined in the SDGs. role of businesses in fuelling economic growth,
innovation and shared wealth.
The four pillars and their associated metrics should
not be seen in isolation. Governance is foundational Each pillar comprises up to seven themes,
for a company in setting purpose and provides considered to be the most important to society,
oversight for a company’s activities that contribute the planet and the economy, and the most
to a prosperous, sustainable society. Without good universally relevant to all companies. Each theme
governance, companies lack the supportive context is critical to a comprehensive understanding
within which to make progress on the other three of its pillar and groups together one or more
pillars. Without a healthy planet to provide the clean corresponding metrics or disclosures to measure
air, fresh water, agriculture, forests and fisheries on corporate performance and sustainable value
which human life depends, societies cannot succeed creation. All metrics are drawn from existing
and companies cannot create long‑term value. frameworks and standards, where available.
People are at the centre of global economic For definitions of key terms used in this paper, refer
prosperity, driving wealth creation, developing to the Glossary in the Appendix.
Criteria for prioritizing the metrics
The following criteria were used to filter and The recommended core and expanded metrics and
prioritize all themes and metrics: disclosures in this report were developed by teams
assembled by the Big Four accounting firms. Each
1. Consistency with existing frameworks and firm took the lead on one of the four pillars, but all
standards firms had an opportunity to contribute to the thought
2. Materiality to long‑term value creation process in each pillar. This extraordinary, collaborative
3. Extent of actionability effort among the world’s largest accounting firms
4. Universality across industries and business was coordinated by teams from the Forum and
models Bank of America, representing the IBC’s chairman,
5. Monitoring feasibility of reporting Brian Moynihan, over the course of a year’s work,
culminating in the presentation of these metrics to the
Within each of the pillars, metrics and disclosures IBC Summer Meeting in August 2020.
have been selected that best combine universality
across industries and geographies, and that enable The refinement process included a six‑month
companies to demonstrate their commitment to consultation process with IBC members, non‑IBC
long‑term sustainable value creation. The aim corporates, investors, regulators, standard‑setters,
is to map a path for companies to report on framework‑providers, academics and other relevant
core indicators, with the possibility to add more actors in the corporate reporting ecosystem, whose
leading‑edge, expanded disclosures to their valuable feedback enabled us to deliver the final set
reporting over time. of metrics and disclosures to be found in this report.
2.1 Application of recommended metrics
The purpose of this initiative is to enable IBC This effort is not intended to diminish the value of the
companies – as well as non‑IBC companies separate sustainability/ESG/impact reports, which
– to begin reporting in a consistent and more often provide more comprehensive information at
comparable way on key dimensions of the industry‑ and company‑specific levels, tailored
sustainable value. In so doing, the IBC hopes to to the interests of stakeholders beyond investors.
catalyse faster progress towards the creation of It is hoped that these recommended metrics may
a more formal, systemic solution, such as help companies align their annual financial reports
a generally accepted set of international and annual sustainability reports in order to provide
accounting standards for material ESG and investors and other stakeholders with clear and
longer‑term value considerations. coherent performance metrics, along with analysis of
risks and future goals.
Accordingly, companies are encouraged to begin
reporting on the recommended core metrics, where Further, in selecting both core and expanded
relevant and possible in mainstream corporate metrics for their universality, the intention is to
disclosures (annual reports to investors and proxy create a foundational set of disclosures, beyond
statements). Addressing ESG metrics within a which companies can report with more sector‑ and
company’s annual report (variously known as the industry‑specific indicators as appropriate.
MD&A, the strategic report, the integrated report)
will ensure that consideration of material ESG Some of the key concerns raised during the
factors is on the board’s agenda and is part of the consultation process are addressed in more
overall corporate governance process. detail below.
Disclose or explain
While the recommended metrics and disclosures considerable debate during the consultation process.
are intended to be universal and industry‑agnostic, This initiative uses “material” and ”materiality” to
there may be instances when certain metrics refer to information that is important, relevant and/
are not feasible, relevant or easy to implement or critical to long‑term value creation. For a fuller
immediately. This may be due to concerns analysis of the term, see Box 1 below.
about, for example, confidentiality constraints,
legal prohibitions, data availability, geographic In line with the principles of good governance, we
idiosyncrasies or lack of materiality. would encourage boards to consider the full set of
recommended metrics and disclosures, and report
The issue of materiality, in particular, generated on all those that are material or relevant to the
organization. However, in cases where a specific explain” approach and encourage companies to
metric is not material for a company’s long‑term explain in their reports the specific information
value creation, we recommend a “disclose or omitted and the reasons for those omissions.
BOX 1 Materiality
This project uses the term “material” to mean performance over the medium or longer term.
information that is important, relevant and/or Materiality is a dynamic concept, in which issues
critical to long‑term value creation. The issue of once considered relevant only to social value can
materiality and what should be disclosed in annual rapidly become financially material. In this sense,
reports varies according to regional regulations and sustainable value creation lies at the intersection of
expectations, particularly in the United States. We social and corporate value. The concept of dynamic
do not use the term with reference to or to redefine materiality, as understood by the five leading
national legal definitions (e.g. in the US) for the voluntary framework- and standard-setters, is
purposes of corporate disclosures. captured in Figure 3.
Our perspective is that the recommended metrics While we encourage broad adoption of these
reflect not only financial impacts but “pre-financial” metrics and their inclusion in mainstream reporting,
information that may not be strictly material in the we understand that companies will apply their own
short term, but are material to society and planet materiality lens to inform what they disclose and
and therefore may become material to financial what they explain.
FIGURE 3 Dynamic materiality
To various users with

Reporting on matters that reflect the
various objectives who
organization’s significant impacts on the
want
To various users with to understand the
various
organisation’s economy, environment and people objectives who want to understand
economy, environment and people
enterprise’s
the enterprise’s positive and positive and
Dynamic
Dynamic Materiality: negative
negative contributions to contributions to
sustainable development
materiality:
sustainability Reporting on the sub-set of sustainable development
sustainability topics
Reporting on thesustainability
sub-set of topics that are material
can move
topics can – either
sustainability topics that are
move – either for enterprise value creation users whose primarySpecifically to the sub-set
objective is to
gradually
gradually oror very
material for enterprise value improve economic decisions
very quickly
creation of those users whose
quickly
Reporting that is primary objective is to
already reflected in improve economic
the financial decisions
Reporting that isaccounts*
Source: Statement of Intent

to Work Together Towards
Comprehensive Corporate
Reporting, CDP, DCSB, GRI,
IIRC and SASB, September * Including assumptions and cashflow projections
2020
Direction of travel from core to expanded metrics
The primary focus of this project is to encourage as build towards more far‑reaching progress on the
many companies as possible to start reporting on the SDGs and more transparent corporate reporting, the
recommended core metrics in mainstream annual expanded metrics present a pathway for companies
reports and disclosures at the earliest opportunity. to continuously improve the depth, breadth and
This is why the project has scanned the many sophistication of their reporting on issues of
hundreds of ESG metrics available and highlighted just economic, environmental and social concern.
21 core metrics that are well‑established, universal,
industry‑agnostic and that we believe to be material to The expanded metrics and disclosures encourage
sustainable value creation. companies to move from reporting outputs alone to
capturing the impacts of their operations on nature
It is acknowledged that not all companies will and society across the full value chain, in more
find it easy to report immediately against all tangible, sophisticated ways, including the monetary
the recommended metrics in their mainstream value of impacts. They also address urgent emerging
disclosures. However, the ambition is for companies issues – such as nature loss, resource circularity,
to embark on a journey that leads to reporting and gender and ethnicity pay gaps – that are not yet
both core and expanded metrics – in the spirit of well‑represented in formal reporting standards. These
embracing stakeholder capitalism. As momentum considerations will require additional sector‑ and
in the market and expectations in society at large company‑specific metrics to be developed over time.
Additional guidance
The recommended metrics and disclosures are It is beyond the scope of this project to provide
not just isolated data points. Companies are detailed methodologies for measuring performance
encouraged to include supporting contextual in a precisely comparable manner. However,
commentary on their disclosures, as this will companies can refer to the source standards and
add value to the data. The level of commentary frameworks for more information on methodologies.
will vary by company depending on their The Appendix to this report contains additional
specific circumstances. commentary on each of the metrics, including some
guidance around reporting.
3 Consultation and
refinement process
3.1 Consultation process
From January to July 2020, the project held insight through detailed discussions and workshops
a wide‑ranging and open consultation on the (see Figure 4).
metrics and disclosures proposed in the January
Consultation Draft paper. The feedback process The project has seen significant support for
engaged IBC members, non‑IBC companies, its objectives and high levels of engagement
investors, standard‑setters and other key players by companies to support refinement of the
in the ecosystem, generating quantitative data metrics. Feedback was collected through three
through a consultation survey, and qualitative workstreams, outlined below.
Socialization
This process obtained and synthesized feedback More than 80 non‑IBC organizations (corporates,
via survey responses, one‑on‑one meetings and non-governmental organizations and industry bodies)
workshops for the overall project and core metrics. responded to the survey. The project held three
A total of 60 IBC companies responded to the survey industry‑specific workshops (Oil and Gas, Mining and
(more than half the IBC membership), many of which Metals, Electricity) and engaged 66 investors through
discussed their views with the project team. workshops and one‑on‑one consultations.
Market testing
This process engaged 15 companies in deeper companies adopting and reporting both the core
one‑on‑one discussions analysing the feasibility of and expanded metrics.
Systemization
A key part of the project and consultation process sustainable value creation. For a longer discussion
was a discrete but important track of work on the sustainability‑reporting ecosystem and where
focused on engaging with influential leaders in this project fits in that space, refer to the Ecosystem
the reporting ecosystem. The Forum organized chapter of this report.
various engagements with framework- and
standard‑setters, regulators, stock exchanges, data The data delivered through these consultations were
providers, international organizations, accounting aggregated and assessed against a set of principles
authorities and the European Commission to for refining the metrics. Each of the Big Four firms
showcase this initiative and discuss how it could refined its own pillar metrics and disclosures based
best accelerate progress towards a systemic on the feedback, while deliberating cross‑cutting
solution for consistent and comparable reporting on issues at working group level.
FIGURE 4 Respondents to the consultation process
NGOs: 7
Framework developers: 2 IBC corporates : 60
International organizations: 6
Standard setters: 5
Other coalitions & initiatives: 9
Investor coalitions: 2
Data providers: 9
Stock exchanges: 3
Regulators: 1
Non-IBC corporates : 33
Investors: 66
3.2 Summary of feedback and key changes
Feedback
All feedback was considered, but the input from the project’s objectives – to streamline ESG
IBC members was prioritized. The consultation reporting; foster transparency, consistency and
survey data provided the primary information source comparability; and catalyse a systemic solution
in refining the metrics, with qualitative feedback that integrates financial and ESG reporting.
informing the refinement of metrics that attracted Nevertheless, almost all investors strongly favoured
varying support. companies also reporting on material industry‑ and
company‑specific metrics. Most indicated that the
Of the IBC respondents to the survey, 88% ESG information presented by companies should
agreed that reporting on a set of universal, be assured and included in the annual report.
industry‑agnostic ESG metrics and disclosures
would be useful for their company, while 91% In response to requests during the consultation
agreed that such reporting would be useful for the process, this report now includes a Glossary
financial markets and the economy more generally. providing definitions of terms used in the metrics
Non‑IBC corporate respondents scored very nearly and disclosures. Meanwhile, both companies
as highly on the same questions. Two‑thirds of all and investors raised the need to explore and
companies polled, both IBC and non‑IBC, said they articulate a number of cross‑pillar issues more
are willing and able to report on the core metrics clearly, including pillar linkages, the definition
and disclosures in their mainstream annual reports. of materiality, challenges in reporting the full
set of metrics, the direction of travel from core
Among investors who responded to the online to expanded metrics, and the need for more
survey, a clear majority agreed that corporate contextual commentary to complement the
reporting on a set of universal, industry‑agnostic quantitative data reported. These issues are
ESG metrics and disclosures would be useful addressed more fully in the section of this paper
for them. They were strongly supportive of entitled Application of Recommended Metrics.
Key changes resulting from consultation
Of the original core metrics, 17 were revised to to public finances made by a corporation. The
provide sharper focus and more precise disclosures. community investment indicator was dropped
as a core metric and incorporated into the
Metrics in the Governance pillar saw greater economic contribution metric. Two expanded
emphasis placed on the economic, environmental metrics (average wage and net promoter score)
and social focus; and the expanded metric on the were dropped while two new expanded metrics
process for engaging stakeholders was dropped as were added (additional tax remitted, and total and
a separate metric and incorporated into the core set. additional tax breakdown by country for significant
locations). Metrics that featured ratios, particularly
In the Planet pillar, the metric on implementing the in the Prosperity pillar, were updated to reflect the
recommendations of the Task Force on Climate- strong preference of investors for quantitative data
related Financial Disclosures (previously TCFD- and absolute values.
aligned reporting) was moved from the expanded
to the core set of metrics; and a new expanded The result is 21 core and 34 expanded metrics
metric on land use and ecological sensitivity was and disclosures, which the project commends
added. In the People pillar, the diversity core metric to both IBC members and non‑IBC companies
was modified to reflect the heightened importance for adoption.
of additional indicators beyond gender; and a new
expanded metric on pay gap was added. The Appendix to this paper contains a full set of
all recommended core and expanded metrics
In the Prosperity pillar, the country‑by‑country organized by pillar, with a clear rationale for each
tax core metric was replaced with a total tax metric, plus additional commentary and advice on
paid metric, to better reflect the full contribution reporting against these indicators.
4 Pillar: Principles of
Governance
4.1 Introduction
Public understanding of the purpose of a corporation as part of its purpose and strategy, to navigate
is shifting to focus on long‑term value creation and its risks and embrace opportunities associated with
interdependence with economic, environmental and these dimensions over time, and to see that the
social impact. This shift creates important implications interests of stakeholders, including shareholders,
for the role and meaning of good governance and are protected.
strategy. Companies are increasingly expected to
define their purpose in a way that integrates societal While good governance is important for achieving
impact (including economic, environmental and social all of the SDGs, it is highlighted in three of them:
considerations) within the core of their business and to
embed their purpose in strategy and operations.6,7
Meanwhile, traditional governance principles of

agency, accountability and stewardship continue to
be vital in ensuring that companies act responsibly
to support their own interests, as well as the Many corporations using these pillar
interests of all their stakeholders. recommendations will be subject to general
governance frameworks based on their country
Governance is foundational to achieving long‑term of incorporation or other regulatory requirements;
value by aligning and driving both financial and many will also apply an external framework that
societal performance, as well as by ensuring focuses specifically on environmental, social
accountability and building legitimacy with and governance matters. The Governance pillar
stakeholders. Achieving this alignment requires establishes foundation‑level priorities for reporting
governance to oversee the setting, monitoring and that build on such frameworks, but it is not intended
execution of a company’s aspirations with respect to replace them.
to economic, environmental and social impact
4.2 Themes
Across existing reporting frameworks and clear purpose, and the extent to which corporate
standards, we have identified five themes that purpose guides strategy.
provide high‑level concepts and direction relevant
to good governance and that enable companies The importance of governing purpose is increasingly
to take a holistic and tailored approach to the recognized. In its report Principles for Purposeful
information they provide. Business, the British Academy states: “The purpose of
business is to solve the problems of people and planet
Under each theme, we have set out a number of profitably, and not profit from causing problems.”8
metrics and disclosures. The metrics are quantified Both the World Economic Forum and the Business
and reflect outcomes of governance structures, Roundtable have affirmed the importance of corporate
policies and processes. The disclosures also purpose and creation of long‑term value for all
reflect specific outcomes but do so by calling on stakeholders, including shareholders.9,10
companies to explain how governance has been
applied in the relevant area. We anticipate that this emerging perspective will
continue to strengthen, making it increasingly
In all cases, if the governance frameworks that important for companies to demonstrate their
companies use do not themselves call for an commitment to purpose as a measure of good
explanation of the role of the management or governance and transparency, and as fundamental
board (also referred to here as governance to long‑term value creation.11
body) in the areas covered by the five themes,
companies are encouraged to provide such Quality of governing body
information alongside the specific metrics and This theme addresses the extent to which the form
disclosures, focusing on aspects most relevant to and function of the governing body are aligned to
environmental and social matters. long‑term value creation.
Governing purpose The individuals and structures employed in

This theme addresses the extent to which governance governing firms have primary influence on the
drives firms to establish and pursue a positive and quality of oversight and the decisions made for
sustainable value creation.12 The majority of Establishing and supporting culture, policy and an
reporting frameworks and a number of regulatory operating environment that foster ethical behaviour
bodies require disclosures on the board’s are critical components of good governance and
composition, qualifications, structure, policies long‑term value creation. Consistent monitoring
and processes. is needed to ensure accountability for ethical
behaviour. Particular attention should be paid to
There are extensive existing metrics and disclosures issues that may compromise the firm’s ability to
on this theme, making it a feasible point of operate in a trustworthy way with stakeholders,
comparison between firms. Emerging indicators including shareholders.
focus on whether governing bodies are aligned
with long‑term value creation, whether corporate Risk and opportunity oversight
performance is being monitored and improved over This theme addresses the extent to which
time, and on associated controls. governance oversees the effective identification and
management of strategic risks and opportunities.
Stakeholder engagement
This theme addresses the nature of engagement Risk management is a critical aspect of good
with material stakeholders, including the processes governance, requiring oversight of the effectiveness
in place to understand stakeholders’ key concerns of the enterprise risk management system (or
and the company’s impact on them. its equivalent) and incorporating its outputs into
corporate strategy. However, opportunities must
Stakeholder engagement is important for guiding also be considered. Explicitly incorporating the
governing bodies to prioritize long‑term value risks and opportunities associated with economic,
and for holding company boards accountable.13 environmental and social topics into the firm’s
Effective stakeholder engagement should governance and related processes is essential for
ensure a robust process for identifying and prioritizing and addressing these issues over time,
selecting relevant stakeholders (e.g. employees, and for long‑term value creation.
customers, suppliers, local communities and
shareholders) and for proactively soliciting their Important issues that represent critical risks and
input, while outlining the frequency and method opportunities for all firms include climate change
of engagement. Such engagement is vital in and data stewardship. Climate change and related
helping to frame effective, purpose‑led strategy, environmental impacts affect long‑term value
to strengthen accountability for sustainable value creation for all companies, and the associated risks
creation and to advance trust in corporations. and opportunities should be addressed.
Ethical behaviour Data stewardship is also a critical area. As outlined by

This theme addresses the extent to which a company the World Economic Forum’s recent report, Integrated
is conducting itself ethically, in line with applicable Corporate Governance, data stewardship priorities
laws and accepted norms for corporate behaviour may include “cybersecurity, the use and governance
– a critical component of long‑term value creation. of artificial intelligence and machine learning, and
privacy and data ownership issues associated with
A key principle for good governance is the data collection, management and use.”15
effective oversight of corporate decision‑making
to ensure compliance with relevant laws and The consequences of data loss or system failure
regulations, as well as meeting stakeholder can be material, even existential, and the pace
expectations for ethical behaviour. Stakeholders’ of technological change in the Fourth Industrial
increasing interest in societal impact and greater Revolution suggests that boards should engage
demand for transparency are encouraging firms earlier in overseeing these types of emerging risks
to go beyond simply “playing by the rules”, and opportunities.
including by demonstrating how their behaviour
is consistent with the firm’s broader purpose. Rationales and additional commentary
For example, expectations of how firms engage Each of the following metrics comes with a rationale
in lobbying have moved from staying within the for inclusion and additional commentary. To access
law, to transparent reporting and now to ensuring this information, click on the hyperlink within each
alignment with the firm’s purpose, strategy and metric title of the digital version of this document, or
stated values.14 refer to the Appendix where the full set of core and
expanded metrics and disclosures is presented with
supporting rationales, commentary and guidance
on reporting.
TA B L E Principles of Governance: Core metrics and disclosures
Governing Setting purpose The British Academy

purpose The company’s stated purpose, as the expression of the and Colin Mayer,
Principles of means by which a business proposes solutions to economic, GRI 102-26,
Governance: environmental and social issues. Corporate purpose should Embankment
Core metrics and create value for all stakeholders, including shareholders. Project for Inclusive
disclosures Capitalism (EPIC) and
others
governing Composition of the highest governance body and its committees GRI 405-1a,
body by: competencies relating to economic, environmental and social IR 4B
topics; executive or non-executive; independence; tenure on the
governance body; number of each individual’s other significant
positions and commitments, and the nature of the commitments;
gender; membership of under-represented social groups;
stakeholder representation.
engagement A list of the topics that are material to key stakeholders and GRI 102-43,
the company, how the topics were identified and how the GRI 102-47
Ethical Anti-corruption GRI 205-2,

behaviour 1. Total percentage of governance body members, employees GRI 205-3
and business partners who have received training on the
organization’s anti-corruption policies and procedures, broken
down by region.
a) Total number and nature of incidents of corruption
years; and
Protected ethics advice and reporting mechanisms GRI 102-17

2. Reporting concerns about unethical or unlawful behaviour and
lack of organizational integrity.
opportunity Company risk factor and opportunity disclosures that clearly GRI 102-15,
oversight identify the principal material risks and opportunities facing the World Economic
company specifically (as opposed to generic sector risks), the Forum Integrated
company appetite in respect of these risks, how these risks and Corporate
opportunities have moved over time and the response to those Governance,
changes. These opportunities and risks should integrate material IR 4D
change and data stewardship.
TA B L E Principles of Governance Governance: Expanded metrics and disclosures
Theme Governance: Expanded metrics and disclosures Sources
Governing Purpose‑led management GRI 102‑26

Principles of purpose How the company’s stated purpose is embedded in company
Governance: strategies, policies and goals.
Expanded Quality of Progress against strategic milestones EPIC
metrics and governing Disclosure of the material strategic economic, environmental and
disclosures body social milestones expected to be achieved in the following year,
such milestones achieved from the previous year, and how those
milestones are expected to or have contributed to long‑term value.
Remuneration GRI 102‑35
1. How performance criteria in the remuneration policies relate
to the highest governance body’s and senior executives’
objectives for economic, environmental and social topics, as
connected to the company’s stated purpose, strategy and
long‑term value.
2. Remuneration policies for the highest governance body and
senior executives for the following types of remuneration:
– Fixed pay and variable pay, including performance‑based
pay, equity‑based pay, bonuses and deferred or vested
shares
– Sign‑on bonuses or recruitment incentive payments
– Termination payments
– Clawbacks
– Retirement benefits, including the difference between benefit
schemes and contribution rates for the highest governance
body, senior executives and all other employees
Ethical Alignment of strategy and policies to lobbying GRI 415: Public Policy
behaviour The significant issues that are the focus of the company’s 2016
participation in public policy development and lobbying; the
company’s strategy relevant to these areas of focus; and any
differences between its lobbying positions and its purpose,
stated policies, goals or other public positions.
Monetary losses from unethical behaviour SASB 510a.1
Total amount of monetary losses as a result of legal proceedings
associated with fraud, insider trading, anti‑trust, anti‑competitive
behaviour, market manipulation, malpractice or violations of
other related industry laws or regulations.
Risk and Economic, environmental and social topics in capital allocation CDSB REQ‑02
opportunity framework
oversight How the highest governance body considers economic,
environmental and social issues when overseeing major
capital allocation decisions, such as expenditures,
acquisitions and divestments.
5 Pillar:
Planet
5.1 Introduction
Businesses depend on and impact the natural However, equally pressing issues – such as nature
environment in myriad ways, through their loss, plastic waste, resource circularity and excess
operations and supply chains and through the nutrients – have rapidly risen to prominence in
ways their products and services are used. scientific fora and public debate but are (as yet) far
Business dependencies on the environment need less well‑represented in formal reporting standards.
to be managed effectively to ensure business For this reason, the expanded planet metrics include
continuity. Business impacts on the environment a small number of promising emerging metrics that
can result in significant societal harm and the we encourage businesses to measure and report
response to these impacts by customers, on. Doing so will provide new, relevant information
regulators and other stakeholders can create to managers, investors and other stakeholders, and
material business risks and opportunities. will contribute to advancing the measurement and
management of critical environmental issues.
As the visibility of business impacts on the planet
grows and expectations of corporate responsibility Companies have long understood that reporting
extend along the value chain, the business risk simple output metrics (e.g. tonnes of air pollutants)
associated with failing to demonstrate a good is insufficient on its own, if the goal is to understand
understanding of and response to environmental the actual impacts on the planet and society
impacts is amplified. associated with these outputs. For example,
the same volume of air pollution emissions will
In the absence of companies reporting effectively adversely affect the health of more people in a
on their environmental impacts and framing the densely populated city than in a rural area. Simply
associated narrative, it is increasingly easy and reporting the pollution output would tell us relatively
common for third parties to fill the void of information little about the true impacts of a business or the
with potentially spurious estimates and a damaging effectiveness of its efforts to reduce those impacts.
narrative of their own. This provides a clear business
case for firms to report on material environmental Fortunately, genuine environmental impact
impacts at a value chain level, alongside targets that measurement, valuation and reporting are rapidly
are guided by science and clear plans to reduce maturing and are now performed routinely and at
negative impacts and increase positive contributions. scale by a growing number of major businesses.
Leading practice environmental impact reporting
To understand the relevance of environmental uses monetized estimates of impact that incorporate
impacts to long‑term value creation and indeed relevant contextual information (such as the population
to basic commercial viability, it is important to density where air pollution occurs), in addition to
consider those impacts along the full value chain (or reporting conventional output metrics. This, in turn,
life cycle) of products or services. Often, individual improves the decision‑useful information available to
businesses – for example, those in resource managers, investors and other stakeholders. Recent
extraction, product manufacturing or retail sales – progress in this area includes publication of the Natural
operate in a small section of the overall value chain. Capital Protocol,16 which provides a standardized
But they rely on the commercial viability of upstream framework for the identification, measurement, and
and downstream links in the value chain to sustain valuation of impacts and dependencies on natural
their own commercial success. capital; an ISO Standard17 (ISO 14008) covering the
monetary valuation of environmental impacts and
Consider the manufacturing of diesel vehicles. The related environmental aspects; and the launch of the
negative impact of emissions from the company’s Value Balancing Alliance,18 a business‑led initiative to
production facilities (typically under 10% of value chain create a global impact measurement and valuation
emissions) wouldn’t be enough to threaten the viability standard that will be freely available to all companies.
of its business model. But the emissions produced by We encourage all businesses to engage with these
the vehicles it sells (approximately 90% of value chain important advances in the effective measurement and
emissions) create precisely that kind of threat. management of environmental impacts.
Similar situations arise in many value chains. So it Six SDGs are particularly relevant to corporate
is both advisable – and now increasingly common environmental disclosures:
– for companies and their investors to understand
and report on the environmental impacts
associated with any upstream and downstream
activities, in order to know whether such impacts
present a threat or provide a boost to their
prospects for long‑term value creation.
Guidance on corporate reporting for established

themes, including climate change and freshwater,
has been formalized in standards for some time.
5.2 Themes
Across existing reporting frameworks and Keeping nitrogen, phosphorus and potassium
standards, we identified seven environmental cycles in balance is critical to the effective
themes of particular significance to the planet, functioning of ecosystems. Current agricultural
society and business. practices have pushed bioavailable levels of
nitrogen, phosphorus and potassium far beyond
Climate change sustainable thresholds in many parts of the world,
A stable climate has been a critical factor in the leading to freshwater and oceanic dead zones and
growth and advancement of human societies. a host of other ecological and public health issues.
The build‑up of greenhouse gases (GHGs) in the Reflecting the severity and global scale of the
atmosphere as a result of anthropogenic emissions problem, “Biogeochemical flows” (of nitrogen and
is changing our climate at a rate never before seen. phosphorous) is one of two of the nine planetary
Failure to mitigate runaway climate change presents boundaries21 deemed to have been breached.
an existential threat to human civilization.
Solid waste
Nature loss All waste matters to some extent, particularly
Nature underpins our economies and societies. A because of the resources that are lost when it
2020 report by the World Economic Forum and is disposed of. The disposal‑related impacts of
PwC concluded that $44 trillion of economic value well‑managed waste streams are typically modest,
generation19 – over half of the world’s total GDP – regardless of the material. However, the negative
is moderately or highly dependent on nature and impacts of poorly managed or unmanaged waste
the services it provides. The ongoing destruction can be significant, especially if the materials are not
of biodiversity worldwide and the consequent loss readily biodegradable. Single‑use plastics (generally
of nature’s many benefits to people – including lightweight, disposable items such as plastic
protection from floods and storms, regulation packaging, cups, food containers, cutlery, plates,
of climate and water resources, pollination of straws and bags) are among the most widespread
crops, as well as aesthetic enjoyment and spiritual and problematic of waste streams. The prevalence
enrichment – present material risks to businesses of single‑use plastics, combined with poor waste
and a major threat to future living standards and management in many parts of the world, has led
overall human well‑being. Reflecting the severity to extensive littering of the land and oceans and
and global scale of the problem, “biosphere significant ecological harm.
integrity” (specifically the rate of biodiversity loss)
is among two of the nine planetary boundaries20 Resource availability
deemed to have been breached. In the long run, genuine sustainability requires us
to achieve far greater levels of re‑use (circularity)
Freshwater availability of non‑renewable resources and sustainable
Freshwater is essential to the progress of human consumption of renewable resources throughout
societies – it is required for a healthy environment our economies. The transition to a more circular
and a thriving economy. Food production, electricity economy presents a range of opportunities and
generation and manufacturing, among other things, risks for businesses.
all depend on it. Access to water for drinking and
sanitation is a basic human right. However, in Rationales and additional commentary
water‑scarce parts of the world with poor water Each of the following metrics comes with a rationale
infrastructure, this human right is frequently not met. for inclusion and additional commentary. To access
this information, click on the hyperlink within each
Air pollution metric title of the digital version of this document, or
Localized air pollution, in the form of fine particulate refer to the Appendix where the full set of core and
matter and oxides of sulphur and nitrogen, is a expanded metrics and disclosures is presented with
leading cause of ill‑health and premature death supporting rationales, commentary and guidance
around the world. on reporting.
Water pollution
Harmful water pollutants include a wide array of
toxic chemicals, heavy metals, hydrocarbons,
waterborne pathogens, suspended solids and even
heat. Perhaps the most widespread and systemic
impacts, however, come from excess nutrients
– primarily nitrogen, phosphorus and potassium –
used in agriculture.
TA B L E Planet: Core metrics and disclosures

Climate Greenhouse gas (GHG) emissions GRI 305:1‑3,
change For all relevant greenhouse gases (e.g. carbon dioxide, methane, TCFD,
nitrous oxide, F‑gases etc.), report in metric tonnes of carbon dioxide GHG Protocol
Planet:
equivalent (tCO2e) GHG Protocol Scope 1 and Scope 2 emissions.
Core metrics and
disclosures Estimate and report material upstream and downstream (GHG
TCFD implementation Recommendations of
Fully implement the recommendations of the Task Force on the TCFD;
Climate‑related Financial Disclosures (TCFD). If necessary, disclose CDSB R01, R02,
a timeline of at most three years for full implementation. Disclose R03, R04 and R06;
whether you have set, or have committed to set, GHG emissions SASB 110;
targets that are in line with the goals of the Paris Agreement – to Science Based
limit global warming to well below 2°C above pre‑industrial levels Targets initiative
and pursue efforts to limit warming to 1.5°C – and to achieve
net‑zero emissions before 2050.
Nature loss Land use and ecological sensitivity GRI 304‑1
Report the number and area (in hectares) of sites owned, leased or
managed in or adjacent to protected areas and/or key biodiversity
areas (KBA).
Freshwater Water consumption and withdrawal in water‑stressed areas SASB
availability Report for operations where material: megalitres of water CG‑HP‑140a.1,
withdrawn, megalitres of water consumed and the percentage of WRI Aqueduct water
each in regions with high or extremely high baseline water stress, risk atlas tool
according to WRI Aqueduct water risk atlas tool.
(upstream and downstream) where appropriate.
TA B L E Planet: Expanded metrics and disclosures
Theme Planet: Expanded metrics and disclosures Sources
Climate Paris‑aligned GHG emissions targets Science Based

change Define and report progress against time‑bound science‑based Targets initiative
Planet: GHG emissions targets that are in line with the goals of the Paris
Expanded Agreement – to limit global warming to well below 2°C above
metrics and pre‑industrial levels and pursue efforts to limit warming to 1.5°C.
disclosures This should include defining a date before 2050 by which you will
achieve net‑zero greenhouse gas emissions, and interim reduction
targets based on the methodologies provided by the Science
Based Targets initiative, if applicable.
If an alternative approach is taken, disclose the methodology used

to calculate the targets and the basis on which they deliver on the
goals of the Paris Agreement.
Impact of GHG emissions US EPA fact sheet
Report wherever material along the value chain (GHG Protocol on the Social Cost of
Scope 1, 2 & 3) the valued impact of greenhouse gas emissions. Carbon (2016),
Natural Capital
Disclose the estimate of the societal cost of carbon used and the Protocol (2016),
source or basis for this estimate. ISO 14008:
Monetary valuation
of environmental
impacts and related
environmental
aspects (2019),
Value Balancing
Alliance
Planet: Nature loss Land use and ecological sensitivity New metric
Expanded Report for operations (if applicable) and full supply chain (if material):
metrics and
– Area of land used for the production of basic plant, animal or
disclosures mineral commodities (e.g. the area of land used for forestry,
agriculture or mining activities).
– Year‑on‑year change in the area of land used for the
production of basic plant, animal or mineral commodities.
Note: Supply‑chain figures can initially be estimated where
necessary based on the mass of each commodity used
and the average mass produced per unit of land in different
sourcing locations.
– Percentage of land area in point 1 above or of total
plant, animal and mineral commodity inputs by mass or
cost, covered by a sustainability certification standard or
formalized sustainable management programme. Disclose
the certification standards or description of sustainable
management programmes along with the percentage of
total land area, mass or cost covered by each certification
standard/programme.
Impact of land use and conversion Natural Capital
Report wherever material along the value chain: the valued impact Protocol (2016),
of use of land and conversion of ecosystems. ISO 14008
Monetary valuation
of environmental
impacts and related
environmental
aspects (2019),
Value Balancing
Alliance
Freshwater Impact of freshwater consumption and withdrawal Natural Capital
availability Report wherever material along the value chain: the valued impact Protocol (2016),
of freshwater consumption and withdrawal. ISO 14008
Monetary valuation
of environmental
impacts and related
environmental
aspects (2019),
Value Balancing
Alliance
Air pollution Air pollution GRI 305‑7
Report wherever material along the value chain: nitrogen oxides
(NOx), sulphur oxides (SOx), particulate matter and other
significant air emissions.
Wherever possible estimate the proportion of specified emissions

that occur in or adjacent to urban/densely populated areas.
Impact of air pollution Natural Capital
of air pollution, including nitrogen oxides (NOx), sulphur oxides ISO 14008
(SOx), particulate matter and other significant air emissions. Monetary valuation
of environmental
impacts and related
environmental
aspects (2019),
Value Balancing
Alliance
Planet: Water Nutrients SASB CN0101‑11

Expanded pollution Estimate and report wherever material along the value chain:
metrics and metric tonnes of nitrogen, phosphorous and potassium in fertilizer
disclosures consumed.
Impact of water pollution Natural Capital
of water pollution, including excess nutrients, heavy metals and ISO 14008:
other toxins. Monetary valuation
of environmental
impacts and related
environmental
aspects (2019),
Value Balancing
Alliance
Solid waste Single‑use plastics New metric
Report wherever material along the value chain: estimated metric
tonnes of single‑use plastic consumed.
Disclose the most significant applications of single‑use plastic

identified, the quantification approach used and the definition of
single‑use plastic adopted.
Impact of solid waste disposal Natural Capital
Report wherever material along the value chain, the valued Protocol (2016),
societal impact of solid waste disposal, including plastics and ISO 14008:
other waste streams. Monetary valuation
of environmental
impacts and related
environmental
aspects (2019),
Value Balancing
Alliance
Resource Resource circularity WBCSD Circular
availability Report the most appropriate resource circularity metric(s) for Transition Indicators,
the whole company and/or at a product, material or site level as
applicable. Potential metrics include (but are not limited to) the Ellen MacArthur
Circular Transition Indicators (WBCSD), indicators developed by Foundation
the Ellen MacArthur Foundation and company developed metrics.
Disclose the methodological approach used to calculate the chosen

circularity metric(s) and the rationale for the choice of metric(s).
6 Pillar:
People
6.1 Introduction
We are living in a connected world in which both financial and non‑financial value that is
society is increasingly committed to the values critical for a company’s business performance and
of responsible business, sustainable economic competitive advantage, while enabling it to mitigate
development and long‑term value creation. risks, maintain a licence to operate and strengthen
Organizations are expected to embrace human stakeholder relationships.
rights, by fostering diverse, inclusive workplaces
with equal pay for work of equal value and by The unprecedented impact of COVID‑19 has
offering all those with a stake in the firm’s value triggered massive disruption of businesses and
creation the opportunity to thrive and grow. societies, inflicting hardship on workers in both
formal and informal sectors across the world. The
The UN’s 2030 Agenda for Sustainable Development Black Lives Matter movement has brought renewed
puts people front and centre in declaring: “We attention to the many inequalities faced by people
are determined to end poverty and hunger, in all of colour and ethnic minorities. Both these issues
their forms and dimensions, and to ensure that are of vital importance to companies as they seek
all human beings can fulfil their potential in dignity to manage their people in a way that creates
and equality and in a healthy environment.” The long‑term value for all stakeholders.
UN Secretary‑General’s Synthesis Report identifies
people as an essential element for delivering on the The value of people can be divided into human
SDGs, in particular those goals that aim to ensure capital (e.g. individual knowledge, skills,
healthy lives, knowledge and the inclusion of women competencies and attributes) and social capital
and children. (e.g. networks, shared norms, values and
understanding).22 While achievements related to
People are crucial for every organization: they people are strongly linked to all the SDGs, their
represent employees, workers, customers, importance is specifically highlighted in six goals:
suppliers, distributors, retailers and contractors.
People are also the investors and ultimate
beneficiaries of providers of capital (e.g.
pensioners). Their growth – in knowledge,
prosperity and well‑being – is central to the success
of all organizations and societies. The business
case for firms to measure, manage and disclose
information on how they ensure an engaged,
skilled and healthy workforce across their value
chains is compelling. Such a workforce creates
6.2 Themes
We have reviewed an extensive range of their gender, race, age, ethnicity, ability and sexual
metrics across existing reporting frameworks on orientation, in a workplace where all employees feel
people‑related topics and identified three themes valued and respected and receive fair treatment with
that not only underpin the six SDGs above, but also appropriate compensation and benefits. By embracing
distinguish meaningful corporate performance and diversity and equal opportunities, companies can help
disclosure: integrate under‑represented groups and minorities into
the labour market, so they become a better reflection
Dignity and equality of society and also deepen the pool of talent that a
In the Universal Declaration of Human Rights, adopted more diverse workforce can bring.
by the UN General Assembly in 1948, the first two
articles declare that “all human beings are born free Health and well‑being
and equal in dignity and rights” and that “everyone Stakeholders increasingly expect organizations to
is entitled to all the rights and freedoms … without care for the health of employees and their families
distinction of any kind, such as race, colour, sex, and to uphold their rights to adequate physical and
language, religion, political or other opinion, national or mental well‑being.
social origin, property, birth or other status.”23
This theme requires organizations to ensure the
This theme focuses on providing equitable health, safety, and mental, physical and social
opportunities to all employees in recruitment and well‑being of all people in their operations and
selection, training, development and promotion. value chains. Companies need to maintain high
These opportunities should remain unaffected by labour standards across their value chains by
strengthening relationships and sharing information Research shows that companies that prioritize
with customers and suppliers. Some industries, their values, create social impact and build a more
such as mining or chemicals, face a higher inherent diverse and inclusive culture are better positioned
risk to physical health and safety than other to boost employee engagement and productivity,
industries such as financial services, where mental and have an advantage in attracting and retaining
health may be a greater concern. Companies that skilled talent.25 Today’s businesses should aim to
maintain high standards in health, safety and labour equip people with the skills they need to innovate
rights can see higher levels of employee productivity and thereby create jobs and prosperity, measured
and operational efficiency. Working proactively in in both financial and human capital.
these areas of the business will help identify and
mitigate risks – and it is increasingly required by law. Rationales and additional commentary
Each of the following metrics comes with a rationale
Skills for the future for inclusion and additional commentary. To access
Access to skilled workers is a key factor in becoming this information, click on the hyperlink within each
a successful company. To address the skills‑gap metric title of the digital version of this document, or
challenge, companies must increase investment in refer to the Appendix where the full set of core and
training, educating and reskilling their workforce to expanded metrics and disclosures is presented with
grasp the opportunities of changing work patterns supporting rationales, commentary and guidance
and workplaces due to new tools and technologies. on reporting.
According to the World Economic Forum, more than
half (54%) of all employees will require significant
reskilling by 2022, but the problem is likely to be even
more acute in specific regions.24
TA B L E People: Core metrics and disclosures

Dignity and Diversity and inclusion (%) GRI 405‑1b
gender and other indicators of diversity (e.g. ethnicity).
People:
Core metrics and Pay equality (%) Adapted from GRI
disclosures Ratio of the basic salary and remuneration for each employee 405‑2
category by significant locations of operation for priority areas of
equality: women to men, minor to major ethnic groups, and other
relevant equality areas.
Wage level (%) GRI 202‑1,
1. Ratios of standard entry level wage by gender compared to Adapted from
local minimum wage. Dodd‑Frank Act, US
2. Ratio of the annual total compensation of the CEO to the SEC Regulations
median of the annual total compensation of all its employees,
except the CEO.
Risk for incidents of child, forced or compulsory labour GRI 408‑1b,
An explanation of the operations and suppliers considered to have GRI 409-1a
significant risk for incidents of child labour, forced or compulsory
labour. Such risks could emerge in relation to:

supplier; and
considered at risk.
well‑being 1. The number and rate of fatalities as a result of work‑related 403‑9a&b,
injury; high‑consequence work‑related injuries (excluding GRI:2018
fatalities); recordable work‑related injuries; main types of 403‑6a
work‑related injury; and the number of hours worked.
2. An explanation of how the organization facilitates workers’
access to non‑occupational medical and healthcare services,
and the scope of access provided for employees and workers.
Skills for Training provided (#, $) GRI 404‑1,
the future Average hours of training per person that the organization’s SASB HC 101‑15
employees have undertaken during the reporting period, by
gender and employee category (total number of hours of training
Average training and development expenditure per full time

employee (total cost of training provided to employees divided by
the number of employees).
TA B L E People: Expanded metrics and disclosures
Theme People: Expanded metrics and disclosures Sources

Dignity and Pay gap (%, #) Adapted from UK
equality 1. Mean pay gap of basic salary and remuneration of full‑time Government guidance
relevant employees based on gender (women to men) on gender and
People: and indicators of diversity (e.g. BAME to non‑BAME) at a ethnicity pay gap
Expanded company level or by significant location of operation. reporting,26
metrics and 2. Ratio of the annual total compensation for the organization’s GRI 102‑38
disclosures highest‑paid individual in each country of significant
operations to the median annual total compensation for
all employees (excluding the highest‑paid individual) in the
same country.
Discrimination and harassment incidents (#) and the total GRI 406‑1,
amount of monetary losses ($) Adapted from
Number of discrimination and harassment incidents, status SASB FR-310a.4
of the incidents and actions taken, and the total amount of
monetary losses as a result of legal proceedings associated
with:
a) law violations; and
b) employment discrimination.
Freedom of association and collective bargaining at risk (%) SASB CN0401‑17,
1. Percentage of active workforce covered under collective GRI 407‑1,
bargaining agreements. WDI 7.2
2. An explanation of the assessment performed on suppliers
for which the right to freedom of association and collective
bargaining is at risk, including measures taken by the
organization to address these risks.
Human rights review, grievance impact & modern GRI 412‑1,
slavery (#, %) UN Guiding Principles,
1. Total number and percentage of operations that have been GRI 408‑1a,
subject to human rights reviews or human rights impact Adapted from
assessments, by country. GRI 408-1a and
2. Number and type of grievances reported with associated GRI 409-1,
impacts related to a salient human rights issue in the WDI 7.5
reporting period and an explanation on type of impacts.
3. Number and percentage of operations and suppliers
considered to have significant risk for incidents of child
labour, forced or compulsory labour. Such risks could
emerge in relation to:
a) type of operation (such as manufacturing plant) and type
of supplier; and
b) countries or geographic areas with operations and
suppliers considered at risk.
Living wage (%) MIT Living Wage Tool,
Current wages against the living wage for employees and EPIC
contractors in states and localities where the company is
operating.
People: Health and Monetized impacts of work‑related incidents on organization (#, $) Adapted indicator
Expanded well‑being By multiplying the number and type of occupational incidents by based on European
metrics and the direct costs for employees, employers per incident (including Commission,
actions and/or fines from regulators, property damage, Safe Work Australia
disclosures healthcare costs, compensation costs to employees).
Employee well‑being (#, %) GRI:2018
1. The number of fatalities as a result of work‑related ill‑health, 403-10a&b,
recordable work‑related ill‑health injuries, and the main types EPIC,
of work‑related ill‑health for all employees and workers. Adapted from
GRI:2016
2. a) Percentage of employees participating in “best practice”
403-2a
health and well-being programmes, and
b) Absentee rate (AR) of all employees.
Skills for Number of unfilled skilled positions (#, %) WBCSD Measuring
the future 1. Number of unfilled skilled positions (#). Impact Framework
2. Percentage of unfilled skilled positions for which the Methodology Version
company will hire unskilled candidates and train them (%). 1.0 (2008)
Monetized impacts of training – Increased earning capacity as a Adapted from OECD,

result of training intervention (%, $) 27 28
1. Investment in training as a percentage (%) of payroll. WDI 5.5

2. Effectiveness of the training and development through
increased revenue, productivity gains, employee
engagement and/or internal hire rates.
7 Pillar:
Prosperity
7.1 Introduction
The UN’s 2030 Agenda for Sustainable Development These core features of prosperity are related to the
identifies prosperity as an area of critical importance: following SDGs:
“We are determined to ensure that all human beings
can enjoy prosperous and fulfilling lives and that
economic, social and technological progress occurs
in harmony with nature.” The UN Secretary‑General’s
Synthesis Report acknowledges that prosperity
is an essential element in delivering on the SDGs
and defines it as growing “a strong, inclusive and Businesses have impacts on, and benefit from,
transformative economy”. economic and social prosperity in myriad ways
and it is widely recognized that businesses cannot
The report links prosperity with dignity and the fight to succeed in a failing society.29 Furthermore, a
end poverty and inequality, describing it in terms of: company’s value is increasingly reflected in the
off‑balance sheet intangible assets and value drivers
– Economic growth, built upon decent associated with economic and social prosperity.
employment, sustainable livelihoods, rising
real incomes, social protection and access to Most businesses, however, are not fully capturing
financial services for all people these intangible assets and value drivers. By
measuring and reporting on aspects of prosperity
– Innovation and transforming business models more holistically, companies and their stakeholders
to create shared value, including investments can become better informed to protect and
in sustainable and resilient infrastructure, enhance assets that contribute to sustainable value
settlements, industrialization, SMEs, energy creation and to society and the SDGs.
and technology
Long‑term value creation is critical for business
– Shared prosperity and equitable growth, based performance, competitive advantage, mitigating
on sustainable production and consumption risk and strengthening stakeholder relationships.
But it is not only enlightened self‑interest, it also
helps companies to measure and demonstrate
how they are contributing to society and the SDGs.
Even when there is not yet a direct link between
the SDGs and financial performance, stakeholders
have indicated that reporting on these metrics is
important for sustainable value creation.
7.2 Themes
To demonstrate commitment to building strong, Job creation, employee retention and investments
transformative and inclusive economies for the in society are key to addressing this risk. These
long term, in line with the SDGs, we identified investments contribute to better living standards and
three interrelated themes from the existing wealth creation in the long term. Strong economic
reporting standards and framework landscape prosperity drives a more educated workforce and
that help to distinguish the most important higher workforce productivity, as well as greater
aspects of prosperity: buying power for the company’s customer base.
Employment and wealth generation Innovation of better products and services

Companies can and should create significant Through innovation, companies can and should
economic value for employees, shareholders and contribute to the creation of better products and
wider society through job creation and investing services that respond to customers’ changing
in the productive capacity of the economy. The needs and desires, creating both economic and
economic crisis due to the COVID‑19 pandemic social value for customers. Companies have an
is expected to push millions of people (especially important role to play in creating and commercializing
vulnerable groups) into poverty and could slow solutions to challenging, complex issues, especially
progress towards the poverty reduction targets set breakthroughs related to the environment (e.g.
by the UN. sustainable supply chains and products).
Innovation will be a vital factor in delivering on the the social fabric and vitality of the communities
SDGs. A company’s ability to innovate can make in which they operate, directly in the case of
the difference between its long‑term survival or investment in communities and indirectly through
failure. Transformative growth through innovation taxes paid to help finance government services
drives the development of new products and for those communities.
services, enhances competitive advantage and
brand reputation and may create operational More equitable and inclusive economies reinforce
and cost efficiencies. Innovation efforts have the the social licence of businesses to operate,
potential to create both positive and negative strengthen workforce talent pools, enlarge the
impacts on the planet and its people, providing customer base and its buying power and enhance
further rationale for companies to measure and supplier relationships and partnerships in the
report on those impacts. communities in which companies operate.
Community and social vitality Rationales and additional commentary

During 2020, the world experienced a global Each of the following metrics comes with a
pandemic and social unrest driven by issues of rationale for inclusion and additional commentary.
racial injustice, highlighted by the Black Lives To access this information, click on the hyperlink
Matter movement. This, in turn, has highlighted within each metric title of the digital version of this
the critical contribution that companies can document, or refer to the Appendix where the full
make to long‑term value creation and a healthy, set of core and expanded metrics and disclosures
diverse, prosperous society. Companies is presented with supporting rationales,
contribute resources that can and should support commentary and guidance on reporting.
TA B L E Prosperity: Core metrics and disclosures

Employment Absolute number and rate of employment Adapted, to include
Prosperity: and wealth Total number and rate of new employee hires during the reporting other indicators of
Core metrics and generation period, by age group, gender, other indicators of diversity and region. diversity, from GRI
disclosures 401‑1a&b
Total number and rate of employee turnover during the reporting
period, by age group, gender, other indicators of diversity and region.
Economic contribution GRI 201‑1,
1. Direct economic value generated and distributed (EVG&D),
on an accruals basis, covering the basic components for the GRI 201‑4
– Revenues
– Operating costs
Financial investment contribution As referenced in IAS
Total capital expenditures (CapEx) minus depreciation, supported 7 and US GAAP
by narrative to describe the company’s investment strategy. ASC 230
Share buybacks plus dividend payments, supported by narrative

to describe the company’s strategy for returns of capital to
shareholders.
Innovation Total R&D expenses ($) US GAAP ASC 730

of better Total costs related to research and development.
products
and services
Community Total tax paid Adapted from GRI
and social The total global tax borne by the company, including corporate 201‑1
vitality income taxes, property taxes, non‑creditable VAT and other sales
taxes, employer‑paid payroll taxes, and other taxes that constitute
costs to the company, by category of taxes.
TA B L E Prosperity: Expanded metrics and disclosures
Theme Prosperity: Expanded metrics and disclosures Sources
Prosperity: Employment Infrastructure investments and services supported GRI 203‑1

and wealth
Expanded Qualitative disclosure to describe the below components:
generation
metrics and 1. Extent of development of significant infrastructure
disclosures investments and services supported.
2. Current or expected impacts on communities and local
economies, including positive and negative impacts where
relevant.
3. Whether these investments and services are commercial,
in‑kind or pro bono engagements.
Significant indirect economic impacts GRI 203‑2
1. Examples of significant identified indirect economic impacts
of the organization, including positive and negative impacts.
2. Significance of the indirect economic impacts in the context
of external benchmarks and stakeholder priorities (e.g.
national and international standards, protocols, policy
agendas).
Innovation Social value generated (%) Adapted from GRI
of better Percentage of revenue from products and services designed (FiFS7 + FiFS8) and
products to deliver specific social benefits or to address specific SASB FN0102‑16.a,
and sustainability challenges. EPIC
services
Vitality Index Adapted from OECD
Percentage of gross revenue from product lines added in last Oslo Manual Section
three (or five) years calculated as the sales from products that 8.3.1
have been launched in the past three (or five) years divided
by total sales, supported by narrative that describes how the
company innovates to address specific sustainability challenges.
Community Total Social Investment ($) CECP Valuation
and social Total Social Investment (TSI) sums up a company’s resources Guidance
vitality used for “S” in ESG efforts defined by CECP Valuation Guidance.
Additional tax remitted Adapted from GRI
The total additional global tax collected by the company on 201‑1
behalf of other taxpayers, including VAT and employee‑related
taxes that are remitted by the company on behalf of customers
or employees, by category of taxes.
Total tax paid by country for significant locations Adapted from GRI
Total tax paid and, if reported, additional tax remitted, by country 201‑1
for significant locations.
8 How our work fits into the
wider ecosystem
8.1 Evolving landscape
The past 12 months have seen considerable a globally accepted solution, similar to the role it
movement among standard‑setters, investors played in the development of the IFRS.
and authorities in the ESG space. Investors and
pension funds are taking a keen interest in a more Voluntary framework- and standard‑setters
harmonized reporting system for sustainability and have intensified their own convergence efforts
ESG impacts. Regulators are looking at how to since publication of the IBC Consultation Draft in
mandate reporting in this space. Leading framework- January. The five leading institutions – CDP, CDSB,
and standard‑setters have started working together GRI, IIRC and SASB – prepared a presentation
in an unprecedented way. There is gathering for the IBC Summer Meeting in August 2020,
momentum for the changes the IBC project seeks to followed shortly afterwards by a collective
make. Recent initiatives of note include the following: statement of intent,31 articulating their joint vision
and commitment to work together and with other
The European Commission announced its Green stakeholders towards building the more integrated,
Deal, a set of policy initiatives and green investments international corporate reporting system that is
to make Europe carbon‑neutral by 2050. It has advocated by the IBC and other interested parties.
launched a review of the EU’s Non‑Financial Reporting They acknowledged the strong role business is
Directive (NFRD), with a focus on “double materiality” already playing to catalyse a systemic solution and
(the materiality of environmental and social impacts committed to continue engaging with the World
on companies’ finances, as well as the materiality Economic Forum / IBC initiative.
of companies’ impacts on people and planet). The
Commission plans to announce the proposed The trustees of the IFRS Foundation, whose
revised NFRD in Q1 2021. The Commission has also financial reporting standards are mandatory in
requested the European Financial Reporting Advisory 144 jurisdictions, agreed in June to consult on the
Group (EFRAG) to set up a task force to make Foundation broadening its mandate and including
recommendations on potential European non‑financial another standard‑setter focused on sustainability
reporting standards, to deliver a first standard or set of issues under their umbrella.
draft standards by June 2022.
Accountancy Europe, in its Cogito
The US Securities and Exchange Commission thought‑leadership series, proposes a new global
(SEC) amended its business disclosure rules in corporate reporting structure, with the creation of an
August 2020 to enhance the focus on human International Non‑financial reporting Standards Board
capital disclosures, which in their words “can be an (INSB) to sit alongside the existing International
important driver of long‑term value” Accounting Standards Board (IASB), under the
auspices of the IFRS Foundation or an alternative
The International Organization of Securities monitoring body. This approach has been mirrored
Commissions (IOSCO), whose members regulate by calls from the International Federation
more than 95% of the world’s securities markets, of Accountants (IFAC) for the creation of an
has established a board‑level task force to International Sustainability Standards Board to sit
harmonize the wide range of different sustainability alongside the IASB under the IFRS Foundation.
standards and disclosures into “a more cohesive, IFAC recommends a “building blocks” approach,
more transparent and … more standardised leveraging the expertise and disclosure requirements
form”,30 as well as to facilitate the development of of the CDP, CDSB, GRI, IIRC and SASB.
8.2 How our work seeks to help
This project seeks to engage with key players in the Standard‑setter: The IBC Stakeholder Capitalism
ecosystem to catalyse progress towards a systemic Metrics project has already contributed to the
solution for ESG reporting. It has the potential to momentum among voluntary framework- and
stimulate further progress on three levels: standard‑setters to strengthen their alignment and
interoperability in the interests of creating a more
Corporate: Through leading by doing, the IBC coherent, global sustainability reporting ecosystem.
can build a coalition of influential companies The IBC community and the World Economic
committed to high‑quality, consistent Forum’s platform more generally have the profile
and comparable reporting on economic, and convening capacity to further encourage such
environmental and social factors related to market‑based cooperation as well as commend it
sustainable value creation. to the attention of governmental authorities around
the world.
Regulatory: In the next few years, enhanced universal and strategic level around the world on
mandatory reporting on social and environmental material ESG considerations, the IBC can help to
impacts seems likely, starting in Europe. This demonstrate that a globally coordinated approach
project offers companies the chance not only to to a priority set of metrics and disclosures is
get ahead of that regulation, but also to influence both feasible and in the interests of promoting
its development. By building a critical mass of long‑termism for corporations, investors and
comparable reporting by large companies at the other stakeholders.
9 Conclusion
The past 12 months have seen impressive – towards a comprehensive corporate reporting
progress. From a standing start, the project has system that integrates sustainability reporting with
developed a set of 21 core metrics and disclosures mainstream financial disclosures.
and 34 expanded indicators to help companies
more consistently measure and report progress The IBC Summer Meeting in August 2020 heard
towards shared economic, environmental and from investors on their conviction that a core focus
social objectives. The metrics are deliberately on ESG leads to improved corporate governance,
universal and industry‑agnostic, to create the more engaged employees and higher rates of
comparability across sectors and geographies that return. Investors believe it is more important
currently eludes ESG reporting. They are built from than ever to society, consumers, employees and
existing metrics, to accelerate the convergence of shareholders that companies deliver prosperity in a
the ecosystem towards a global solution for ESG way that respects people and the planet. This is no
reporting that is as rigorous and widely accepted as longer seen as a selfless crusade, it is at the core of
the standards for financial reporting. sustainable value creation.
We know that every company is at a different There is clearly substantial momentum building
stage in terms of reporting ESG factors material for the changes this project seeks to realize. IBC
to its own business model. Our hope is that these members now have a unique opportunity to lead
recommended metrics and disclosures will enable the way as a group, by reporting against the
each company to provide the narrative and the recommended metrics and disclosures at the
numbers that its investors and stakeholders need earliest opportunity and by encouraging non‑IBC
to track that corporate journey towards sustainable companies to do likewise.
value creation.
Given the urgency of this agenda, we invite all
The initiative has won strong support from the IBC members to declare their intention to report
160‑plus companies and investors canvassed on these metrics and disclosures; collectively,
during the project’s consultation phase. None of this we will present a timeline for that process at the
could have been achieved without the outstanding IBC’s Winter Meeting in January 2021. Finally,
contributions of the Big Four accountancy firms we encourage the wider corporate community
– Deloitte, EY, KPMG and PwC – under the to join us in this collective endeavour.
chairmanship of the IBC by Bank of America’s CEO,
Brian Moynihan. Through adopting these indicators, the corporate
sector can demonstrate to standard‑setters,
The ecosystem is buzzing with activity. The EU investors, regulators, governments and others
is revising its Non‑Financial Reporting Directive, that it has converged on a set of decision‑useful
which seems likely to lead to more mandatory sustainability metrics that could form the foundation
reporting on sustainability. IOSCO is looking at of a market‑based, global set of ESG
how to harmonize financial and sustainability accounting standards.
reporting. The IFRS Foundation will soon begin
formal consultations into broadening its mandate Engaging in this process will enable companies to
to embrace sustainability issues. The five principal report in a more consistent and comparable way
framework- and standard‑setters (CDP, CDSB, on their shared value creation, to build trust among
GRI, IIRC and SASB) have, for the first time, issued stakeholders and shareholders, and to demonstrate
a shared statement of intent to work – with the that stakeholder capitalism can be a force for good
Forum/IBC initiative and other interested parties both in society and for the planet.
Acknowledgements
Working Group
Bank of America
Lawrence di Rita, Co-Head of Strategy and Public Ashwani Chowdary, Senior Vice‑President, ESG,
Policy Team, Bank of America Bank of America
Joesph Goodwin, Senior Vice President, Public

Policy Executive, Bank of America
Deloitte
Sam Baker, Partner, Deloitte, Principles of Abigail O’Reilly, Manager, Deloitte, Principles of
Governance Governance
Rafi Addlestone, Associate Director, Deloitte, Veronica Poole, Global IFRS Leader, Head of
Principles of Governance Accounting and Corporate Reporting, Deloitte North
and South Europe, Deloitte
Kathy Alsegaf, Internal Sustainability Leader, Deloitte
Global, Deloitte Amy Silverstein, Senior Manager, Deloitte, Principles
of Governance
Steve Dutton, Associate Director, Deloitte
Kristen Sullivan, Partner, Sustainability Services
Claire Hassett, Managing Director and Chief Leader, Deloitte Americas Re gion, Deloitte
Communications Officer, Deloitte
Michelle Varney, Chief of Staff, Office of the CEO,
Marina Kitchen, Consultant, Deloitte, Principles of Deloitte
Governance
EY
Barend van Bergen, Partner, Long Term Value UK,
EY, Prosperity
Lucy Godshall, Senior Manager, Climate Change &
Amy Call Well, Principal, Office of the Global Sustainability, EY, Prosperity
Chairman, EY
Carter Ingram, Senior Manager, Climate Change &
Mary Cline, Director, Office of the Global Chairman, EY Sustainability, EY, Planet, Prosperity
Rebecca Farmer, Partner, Financial Accounting and Dipti Patel, Senior, Climate Change & Sustainability,
Advisory Services, EY, Prosperity EY, Prosperity
Marc Siegel, Partner, Financial Accounting Advisory Julie Croglio, Manager, Financial Accounting
Services, EY, Prosperity Advisory Services, EY, Prosperity
Alan Holm, Associate Partner, Long Term Value, EY, Zammak Tughral, Senior, Financial Accounting
Prosperity Advisory Services, EY
KPMG
Tom Brown, Emeritus Global Head of Asset Amina Ahmed, PMO Analyst, KPMG
Management, KPMG, People
Wim Bartels, Partner, Global Lead Climate Risk
Mireille Voysest, Director, Global Asset Services, KPMG
Management, KPMG, People
Mark Vaessen, Partner, Audit, KPMG Sarah Pendrith, Global Marketing Director, KPMG
Michelle Sartorio, Head of Marketing and Frances Dawson, Global Marketing Manager,
Communications, KPMG KPMG
PwC
Will Evison, Director, Co-Lead Total Impact Sarah Grey, Reporting & Assurance Advisor, Global
Measurement and Management, PwC, Planet Sustainability, PwC
Emma Cox, Head of Purpose and UK Leader Laurie Cameron, Sustainability Consultant, PwC
Sustainability & Climate Change, PwC
Sarah Watts, Global Sustainability Marketing Lead,
Jon Williams, Partner, Sustainability & Climate PwC
Change, PwC, Planet
Andrea Plasschaert, Global Communications
Alan McGill, Global Head of Sustainability Reporting Specialist, PwC
& Assurance, PwC
World Economic Forum

Maha Eltobgy, Head of Investors Industries, Member Shrinal Sheth, Knowledge Specialist, Investors
of the Executive Committee, World Economic Forum Industries, World Economic Forum
Richard Samans, Director of Research, Gabriele Liotta, Global Leadership Fellow, Member
International Labour Organization and Chairman, of the Acceleration team, World Economic Forum
Climate Disclosure Standards Board
Emily Bayley, Project Lead, ESG, Future of

Investing, World Economic Forum
Technical Team
Deloitte
Rhonda Evans, Senior Manager, Deloitte, Principles Mary Mitchell, Manager, Deloitte, Principles of
of Governance Governance
Tracy Gordon, Director, Deloitte, Principles of Christine Robinson, Senior Manager, Deloitte,
Governance Prosperity
Brendan Lehan, Manager, Deloitte, Principles of Matthew Sinclair, Director, Deloitte, Prosperity
Governance
Neil Stevenson, Director, Deloitte, People
Liam McLaughlin, Consultant, Deloitte, Principles of
Governance Matthew Wu, Consultant, Deloitte, Principles of
Governance
EY
Hywel Bell, UK Chair and UK&I Regional Managing Rani Doyle, Managing Director, Center for Board
Partner, EY, Prosperity Matters, EY, Principles of Governance
Barbara Angus, Global Tax Policy Leader, EY, Shaun Scantlebury, Senior Manager, People
Prosperity Advisory Services, EY, People
Lauren Rogge, Senior Manager, Financial Muir Macpherson, Senior Manager, People
Accounting Advisory Services, EY, Planet Advisory Services, EY, People
Maria Kepa, Director, Corporate Governance, EY,

Principles of Governance
KPMG
Oy Cheng Phang, Executive Director, Governance Jacqueline Todd, Manager, People Consulting,
and Sustainability, KPMG, Principles of Governance KPMG, People
Chumpol Sripraparkorn, Associate Director, Adrian King, Global Head of Sustainability Services,
Sustainability Service, KPMG, Principles of KPMG, People
Governance
Simone Rossetti, Senior Manager, Sustainability
Carmen Magee, Senior Manager, Asset Management Services, KPMG, Planet
and ESG assurance Services, KPMG, People
Michele Ripa, Manager, Sustainability Services,
David Fernandez, Manager, Sustainability Services, KPMG, Planet
KPMG, People
Jørgen Westrum Thorsen, Manager, Sustainability
Maria Helena Meinert, Manager, Sustainability Services, KPMG, Planet
Services, KPMG, People
Alicia Moreno, Senior Manager, KPMG, Prosperity
Jiska Klein, Senior Consultant, Sustainability &
Responsible Investment, KPMG, People Gunarani Ganasagaran, Associate Director,
Sustainable Futures, KPMG, Prosperity
Prathmesh Raichura, Executive Director, Climate
Change & Sustainability Services, KPMG, People Anette Rønnov, Director, Sustainability Services,
KPMG, Prosperity
Vinay Kumar, Associate Consultant, Climate
Change and Sustainability Services, KPMG, People
PwC
Stephan Hirschi, Sustainability Services Leader, Barry Voyster, Partner, HR Technology &
Switzerland, PwC, Planet Transformation and Culture, PwC, People
Gordon Wilson, Sustainability Assurance Specialist, Bernice Wessels, People Specialist, PwC, People
PwC, Planet
Laura Plant, Sustainability Consultant, PwC, People
John Patterson, Corporate Governance Specialist,
PwC, Principles of Governance Superna Khosla, Reporting Policy Advisor, PwC,
Planet
Mark O’Sullivan, UK Head of Corporate Reporting,
PwC, Prosperity
Author
Jonathan Walter, Lead Author
Editing and Design
Janet Hill, Head of Editing, World Economic Forum Timothée Scalici, Graphic Designer, World
Economic Forum
Floris Landi, Lead Graphic Designer, World
Economic Forum
Appendix
Introduction
The purpose of this Appendix is to provide a full set why that indicator has been chosen, plus additional
of the recommended core and expanded metrics commentary on that metric and disclosure. For
and disclosures for each of the four pillars in one definitions of all key terms used in these metrics,
place. Beneath each metric is a rationale, explaining refer to the Glossary at the end of this Appendix.
Pillar 1 – Principles of Governance
Summary of key changes
Strengthening purpose Goals (SDGs), and long-term value creation.

This iteration of metrics and disclosures features To make this explicit, the chosen metrics and
a strengthened version of core and expanded disclosures now repeatedly specify a focus on
disclosures relating to the governing purpose “economic, environmental and social” topics (the
theme, reflecting broad-based feedback from both three dimensions of sustainable development as
reporting organizations and investors. The word defined by GRI).
“societal” has been replaced with “economic,
environmental and social issues” to enhance clarity, Accommodation of legal concerns
while a new expanded metric evaluates how a This version of metrics and disclosures
company’s purpose is embedded in core aspects accommodates concerns about exposure to
of its business to address stated concerns about litigation risk stemming from disclosure of certain
“greenwashing”. information, such as confidential information.
Where relevant, requests for supporting
Economic, environmental and social disclosures have been added to give companies
The metrics and disclosures under Principles greater latitude to tell a qualitative story alongside
of Governance have been developed to ensure (or in lieu of) quantitative metrics. These concerns
corporate governance incorporates oversight of can also be addressed by the overarching
the link between a company, broader sustainable principle of “disclose or explain” as detailed in
development or the UN’s Sustainable Development this paper.
TA B L E Governance: Core metrics and disclosures

Governing Setting purpose The British
purpose Academy and
The company’s stated purpose, as the expression of the Colin Mayer,
means by which a business proposes solutions to economic,
environmental and social issues. Corporate purpose should GRI 102-26,
create value for all stakeholders, including shareholders.
EPIC and others
Rationale
Oversight of a company’s chosen priorities in terms of economic, environmental and social issues requires
a clear understanding and articulation of the firm’s purpose. The more that firms can link their purpose and
core business, the better they can deliver long-term value for all stakeholders, including shareholders.
Additional commentary
There is emerging evidence that purpose-led firms outperform their peers in terms of shareholder value32
and are better positioned to account for and deliver economic, environmental and social value.
This disclosure calls for the articulation of the output of a process to formulate and publicize a purpose,
providing a useful baseline for whether firms are pursuing purpose or not. This disclosure was selected
over alternatives, including measures of investment aligned to purpose and the extent to which culture is
aligned to purpose, to reflect the primary need that still exists to comprehensively articulate purpose and
its link to economic, environmental and social value and long-term value creation. It is fundamental to
purpose-led outcomes, helps establish comparability across businesses and is the essential first step in
becoming a purpose-led business.
Purpose should define how a company creates value by addressing solutions to economic, environmental
and social issues, and ensures that it is not profiting from creating problems in these domains.
governing body Composition of the highest governance body and its committees
by: competencies relating to economic, environmental and GRI 405-1a,
social topics; executive or non-executive; independence; tenure
IR 4B
on the governance body; number of each individual’s other
significant positions and commitments, and the nature of the
commitments; gender; membership of under-represented social
groups; stakeholder representation.
Rationale
The capabilities and perspectives of board members are important for making robust decisions on an
ongoing basis. This disclosure captures a variety of important dimensions to composition, going beyond a
single metric, and emphasizes competencies relating to economic, environmental and social topics.
Research examining public companies across Canada, Latin America, the UK and the US has found
that companies with higher diversity financially outperform their peers.33 Crucially, boards that reflect
the diversity of their companies’ stakeholders are more attuned to their needs and are therefore well-
positioned to deliver long-term stakeholder value. This necessitates the inclusion of traditionally under-
represented social groups (see Glossary for definition of “under-represented social groups”). Although
these groups will vary based on a company’s context, it is important to consider racial and ethnic diversity.
This disclosure was chosen on the basis that it captures a breadth of dimensions critical to governance
body composition, including competencies related to economic, environmental and social topics.
Single measures of governance body composition are insufficient to determine whether a particular
corporation has the board fit for its particular needs. Practices for achieving greater diversity of board
member backgrounds and capabilities are relatively universal and well-established, and the disclosure is
comparatively easy to observe.
Reporting organizations will choose how to report based on materiality, as defined in this paper.
Additionally, reporting organizations will need to be mindful of local laws, which can shape or constrain the
way the standard cited here as a guideline is implemented. One possible and established way to consider
the diversity of skills represented on the governing body is through presentation of board member
qualifications, backgrounds and experiences in a “skills matrix”.34
engagement A list of the topics that are material to key stakeholders and
the company, how the topics were identified and how the GRI 102-43,
GRI 102-47
Rationale
This disclosure highlights the importance of the relationship between what is material to a firm and to
its stakeholders; it captures the output of a process to understand the impact of the company on its
stakeholders and the implications for the company.
As organizations shift to becoming more purpose-led, so too will the definition and understanding of long-
term value. The current shareholder-centric view of performance and value is already evolving into a more
holistic understanding of an organization’s impacts on a broad range of stakeholders. For this shift to have
a real impact, an organization needs to understand how its stakeholders are most affected by its decisions
and how this affects the business.
Conducting a materiality analysis is a vital step in understanding how an organization impacts its key
stakeholders and the implications for the business. It requires a company-specific identification of key
stakeholders and engagement with them to determine how they are affected by the company’s decisions
and actions. Explaining the steps required to undertake a materiality analysis (i.e. listing all identified
material topics and detailing how they impact stakeholders and company) and the process to identify and
engage with stakeholders helps validate the output.
The concept of materiality, as defined in this paper, guides prioritization, ensuring the disclosure is relevant
to stakeholders and the company. This disclosure facilitates board-level oversight of this critical area. It is
a means of maintaining accountability to a range of stakeholder groups, helping ensure that organizational
impact and long-term value align with the interests of a broad range of stakeholders and provide the
foundation for trust in the business. One possible way to disclose material issues impacting stakeholders
is through a “materiality matrix”.35
Ethical behaviour Anti-corruption GRI 205-2,
1. Total percentage of governance body members, employees
and business partners who have received training on the GRI 205-3
organization’s anti-corruption policies and procedures,
broken down by region.
2. a) Total number and nature of incidents of corruption
years
Rationale
Corruption undermines stakeholder legitimacy and trust; it is linked to misallocation of capital,
environmental harm, human exploitation and unethical and illegal behaviour.
Anti-corruption training and investment in initiatives to improve both operating environment and culture
develop a company’s anti-corruption capabilities. The total number and nature of corruption incidents are
a proxy for the effectiveness of a company’s overarching anti-corruption culture and capabilities.
Corporate corruption can thrive where governance is weak. The public expects companies to adhere to
ethical business practices. Companies implementing anti-corruption policies and practices contribute
directly towards the vision of SDG 16.5 to “substantially reduce corruption and bribery in all their forms”,
protecting their own long-term value and their contribution to long-term societal value.
Monitoring the number and proportion of new corruption incidents unrelated to previous years, in
comparison to incidents related to previous years, provides some insight into changes over time of
this effectiveness. These metrics were chosen for their orientation to outcomes and their comparability
between companies and over time.
Reporting organizations will need to be mindful of local laws, which can shape or constrain the way the
standard cited here as a guideline is implemented.
Ethical behaviour Protected ethics advice and reporting mechanisms GRI 102-17

2. Reporting concerns about unethical or unlawful behaviour
and lack of organizational integrity.
Rationale
This disclosure focuses on the ongoing ability of a company to both prevent and remedy ethical issues.
This disclosure identifies the mechanisms (e.g. whistleblowing procedures) in place to receive input on
ethics topics and reports of potential issues, and the ways in which these mechanisms are managed or
protected to encourage robust advice and reporting. Protected ethics advice and reporting mechanisms
demonstrate an authentic intent by the board and management to explain and promote ethical and legal
conduct and prevent unethical or illegal conduct. This disclosure was chosen for its universal applicability
and allows for comparison and evaluation of board commitment to the oversight of ethical behaviour.
Without a mechanism for employees and other key stakeholders to ask questions about or to report
potential or actual unethical or unlawful behaviour, companies may miss opportunities to identify and
mitigate underlying issues. Companies that encourage their stakeholders to provide feedback can respond
more quickly to misconduct, build trust with their stakeholders and prevent harm to long-term value.
opportunity Company risk factor and opportunity disclosures that clearly
oversight identify the principal material risks and opportunities facing the GRI 102-15,
company specifically (as opposed to generic sector risks), the
World Economic
company appetite in respect of these risks, how these risks and
Forum Integrated
opportunities have moved over time and the response to those
Corporate
changes. These opportunities and risks should integrate material
Governance,
change and data stewardship. IR 4D
Rationale
This disclosure focuses on company-specific risks and opportunities, the onus on the board to oversee
management of those risks and opportunities, and the corporate response over time as they change; it
provides broad, management- and board-centred insight.
A clear understanding and synthesis of corporate appetite, board oversight and management’s enterprise
risk management systems in relation to key emerging risks and opportunities (specifically those related to
economic, environmental and social issues) is fundamental to long-term value creation. This disclosure
was selected on the basis that it acknowledges the requirement for the board to be directly involved with
management in understanding and reacting to material risks and opportunities and the need to observe
how the board and management adapt their positions over time.
This disclosure acknowledges traditional risk management and the need for boards and management to
look beyond risks to the opportunities provided to the business by emerging issues, and specifically those
related to economic, environmental and social issues.
Climate change and data stewardship are critical aspects of this disclosure, as they affect long-term
value for almost all companies, but are typically under-reported. As noted by the World Business Council
for Sustainable Development (WBCSD), “in a time of climate emergency, it’s important for businesses
to…consider the transformational changes and associated transition risks needed to achieve climate
resilience”.36 Data stewardship is also critical for most companies. It includes responsibility for personal
data, as well as the use and governance of artificial intelligence and cybersecurity. The financial and
reputational impact when companies fail to consider data stewardship can be substantial.37
TA B L E Governance: Expanded metrics and disclosures
Governing Purpose-led management GRI 102-26
purpose How the company’s stated purpose is embedded in company
strategies, policies and goals.
Rationale
Embedding purpose within the company’s strategy and policies is necessary to realizing its stated benefits
for all stakeholders, including shareholders.
Providing the opportunity for companies to show how their stated purpose is integrated in the business
strengthens the validity of their purpose statements, provides an opportunity to counter claims of
“greenwashing” and is a useful indication of a company’s long-term value creation potential.
Quality of Progress against strategic milestones EPIC
governing body Disclosure of the material strategic economic, environmental and
social milestones expected to be achieved in the following year,
such milestones achieved from the previous year, and how those
milestones are expected to or have contributed to long-term value.
Rationale
An outcome-oriented measure of board and management quality, this disclosure focuses on the company’s
achievement of its stated objectives. This disclosure combines both leading and lagging indicators of the
board’s oversight and management’s ability to set, guide and execute the company’s strategy.
Achievement of strategic milestones in the past year provides a useful proxy of the board’s and
management’s ability to oversee the organization’s achievement of its strategic objectives, including
purpose. Strategic milestones for the year ahead allow stakeholders to more effectively evaluate the
quality of decision-making by the board and management and the extent to which that decision-making is
consistent with the purpose and objectives of the firm.
Quality of Remuneration GRI 102-35
governing body 1. How performance criteria in the remuneration policies relate
to the highest governance body’s and senior executives’
objectives for economic, environmental and social topics, as
connected to the company’s stated purpose, strategy and
long-term value.
2. Remuneration policies for the highest governance body and
senior executives for the following types of remuneration:
– Fixed pay and variable pay, including performance-based
pay, equity-based pay, bonuses and deferred or vested
shares
– Sign-on bonuses or recruitment incentive payments
– Termination payments
– Clawbacks
– Retirement benefits, including the difference between benefit
schemes and contribution rates for the highest governance
body, senior executives and all other employees
Rationale
The incentives provided to board members and senior executives, and the way they are structured, can
significantly reinforce or impede long-term value creation. Importantly, this disclosure requires the reporting
organization to explicitly address how its approach to remuneration relates to the organization’s economic,
environmental and social objectives.
If remuneration is incongruent with long-term objectives, including a combination of commercial and
societal value creation, it can undermine the ability of governance bodies to provide effective oversight.
This disclosure is an important advanced indicator of board quality, providing detailed insight into the
various mechanisms for remuneration and how they are applied. Disclosing how incentives for governing
bodies are aligned to long-term value serves as a useful indication of the organization’s ability to achieve
that value. This level of disclosure provides valuable insight for external stakeholders in evaluating the
alignment of different aspects of governance and fosters increased transparency and trust.
Ethical behaviour Alignment of strategy and policies to lobbying GRI 415: Public
The significant issues that are the focus of the company’s Policy 2016
participation in public policy development and lobbying; the
company’s strategy relevant to these areas of focus; and any
differences between its lobbying positions and its purpose,
stated policies, goals or other public positions.
Rationale
Consistency between corporate activity related to lobbying and the firm’s publicly stated purpose and
strategy is a core component of alignment on long-term objectives, which in turn is essential for long-
term value creation. Monitoring this consistency is an important element of overall transparency and the
authentic pursuit of the company’s objectives.
To create long-term value, corporate behaviour needs to conform to existing norms but also to align with the
corporation’s long-term objectives, both commercial and societal. This disclosure is a critical advanced indicator
of corporate behaviour, by providing insight into the extent to which lobbying and advocacy (an important
but potentially damaging area of corporate activity for stakeholders) is not only permissible but aligned to the
company’s publicly stated objectives and purpose. Reporting organizations will need to be mindful of local laws,
which can shape or constrain the way the standard cited here as a guideline is implemented.
Ethical behaviour Monetary losses from unethical behaviour SASB 510a.1
Total amount of monetary losses as a result of legal proceedings
associated with fraud, insider trading, anti-trust, anti-competitive
behaviour, market manipulation, malpractice or violations of
other related industry laws or regulations.
Rationale
This metric is a critical advanced indicator of ethical behaviour, focusing on the company’s observed
behaviour and relying on outside parties (regulators) and a robust formal process (enforcement and the
courts) to assess that behaviour. Additionally, measurement in monetary terms facilitates comparison
across firms.
To assess the ethical standing of a company, it is important to monitor the processes in place to foster
the right culture and behaviours, as well as the extent to which these processes are adhered to over time.
Violations of laws governing corporate behaviour are a useful proxy for assessing this adherence.
Risk and Economic, environmental and social topics in capital allocation CDSB REQ-02
opportunity framework
oversight How the highest governance body considers economic,
environmental and social issues when overseeing major capital
allocation decisions, such as expenditures, acquisitions and
divestments.
Rationale
This disclosure is an important way to gauge the quality of risk and opportunity oversight and the extent to
which it incorporates economic, environmental and social considerations. Capital allocation is at the core
of any business model and illustrates the company’s longer-term priorities; as such it is a leading indicator
of long-term value creation.
Robust governance of both risks and opportunities, with the goal of long-term value creation, must
engage with the way those risks and opportunities are embedded in the business.
Pillar 2 – Planet
We have selected these metrics and disclosures business model. Coverage of all seven themes
from existing frameworks and standards wherever with individual quantitative metrics is far from
possible, through multiple consultations with comprehensive. For example, additional air
professionals working in this field and by assessing pollutants will be material for some companies,
which metrics exhibit the best combination of there are many more potentially material waste
universality (across industries and firms) and streams, and there are hundreds of individual
materiality to long-term value creation. water pollutants. Only the most commonly material
individual metrics are specified in each case, on
The “core” set reflects metrics and disclosures the assumption that companies will make such
that relate corporate activities to the most material additional disclosures as are particularly relevant to
and pressing environmental issues for society as their sector and business model.
a whole – climate change, nature loss and the
availability of clean, fresh water. Of these, climate Further potential impact areas, such as light and
change is perhaps the most universally material noise pollution, radiation and visual disturbance,
theme and is certainly the most advanced from the are left out on the basis that they are likely to be
perspective of current corporate reporting. Nature material only in a minority of cases.
loss will be particularly relevant for companies with
facilities in or near sensitive ecological areas, as In the planet pillar, assessing the materiality of
well as those with significant agricultural operations, impacts on society associated with a given metric
supply chains or customers. Freshwater availability can be a helpful basis for establishing its materiality
will be most material for companies with significant to long-term value creation for the company. This
operations, supply chains or markets in water- is because a range of factors, including changes
stressed areas, particularly in developing countries. in policy and regulation, and changes in employee,
consumer and investor expectations, are leading to
The “expanded” set includes three additional a convergence between societal value and financial
common themes – air pollution, water pollution value. For the core and expanded metrics identified
and solid waste – along with a recommendation below, a “disclose or explain” approach should be
to report relevant metrics of resource circularity followed on this basis.
to assess progress towards a circular economy
Climate change Nature loss

The language around alignment with the Task Force The recommended core metrics relating to the
on Climate-related Financial Disclosures (TCFD) extent of and year-on-year change in land use in the
was simplified to make clear that we advocate full consultation draft were clarified and moved to the
implementation of the TCFD recommendations, expanded section, on the basis that they are not
including disclosure in main annual filings in the currently widely reported and will take some time
shortest possible time frame. Language around to report on. An additional disclosure was added
Scope 3 reporting was also aligned with the to the expanded metrics to enable companies to
language in the TCFD guidance. Language around indicate the “quality” of land use.
emissions reduction targets was adjusted to
accommodate targets that meet the goals of the The global nature crisis is, however, widely
Paris Agreement on climate change but do not considered to be of sufficient importance to
specifically follow methodologies provided by the society and relevance to business that it should be
Science Based Targets initiative (SBTi), given that included among the core themes. A simpler metric
approved sectoral SBTi methodologies don’t yet addressing another important aspect of pressure
exist for all sectors. on nature was therefore selected after extensive
consultation.
The revised language also allows for cases where
companies with operations predominantly in Freshwater availability
least-developed countries wish to align with the The definition of water stress was clarified and the
Paris Agreement as it applies to those countries metric language was aligned more precisely with an
(based on Nationally Determined Contributions). existing disclosure standard.
For the avoidance of doubt, we nonetheless
recommend that all businesses commit to Air pollution
achieve net-zero greenhouse gas (GHG) Reference to sulphur oxides (SOx) and nitrogen oxides
emissions by 2050 or sooner, and to pursue (NOx) was added, owing to their material contribution
interim targets based on science. to the adverse impacts of local air pollution.
Water pollution Resource availability
Language and applicability were clarified and Language was broadened to allow for a range
reference to potassium was added. of potential circularity metrics, acknowledging
that metrics are not yet standardized and further
Solid waste experimentation and refinement from leading
Language and applicability were clarified alongside companies is an urgent priority.
acknowledgement that approaches for measuring
and disclosing on single-use plastics are still emerging Valued impact metrics
and that companies can make a positive contribution Language and sources were clarified.
to understanding of the issues by experimenting with
measurement and sharing their approach and results.
TA B L E Planet: Core metrics and disclosures

Climate change Greenhouse gas (GHG) emissions GRI 305:1-3,
For all relevant greenhouse gases (e.g. carbon dioxide, methane,
nitrous oxide, F-gases etc.), report in metric tonnes of carbon TCFD,
dioxide equivalent (tCO2e) GHG Protocol Scope 1 and Scope 2
GHG Protocol
emissions.
Estimate and report material upstream and downstream (GHG

Rationale
GHG emissions are the primary driver of rising global temperatures and therefore a key focus for policy,
regulatory, market and technology responses to limit climate change. As a result, business models
associated with significant emissions are likely to be more impacted by risks in the transition to a low-
carbon economy. While challenges remain in the accurate quantification of Scope 3 emissions, companies
across all major sectors of the economy already report on Scope 3 emissions and, in the context of the
transition to a low-carbon economy, material Scope 3 emissions may have a significant bearing on a
company’s potential for long-term value creation.
Climate change TCFD implementation Recommendations

Fully implement the recommendations of the Task Force on of the TCFD;
Climate-related Financial Disclosures (TCFD). If necessary,
CDSB R01, R02,
disclose a timeline of at most three years for full implementation.
R03, R04 and
Disclose whether you have set, or have committed to set, GHG
R06;
emissions targets that are in line with the goals of the Paris
Agreement – to limit global warming to well below 2°C above SASB 110;
pre-industrial levels and pursue efforts to limit warming to 1.5°C
– and to achieve net-zero emissions before 2050. Science Based
Targets initiative
Rationale
The TCFD recommendations are already established as the primary framework for disclosure of
information on the management of climate-related risks and opportunities in main annual filings. Elevating
disclosure of metrics relating to people, planet, prosperity and principles of governance into main annual
filings is a key objective of this initiative and we therefore lend our full support to broader adoption of the
TCFD recommendations. Additionally, we emphasise the importance of GHG emissions targets that are in
line with the goals of the Paris Agreement.
The Financial Stability Board established the TCFD because of concerns that companies were not
adequately measuring or reporting the financial implications of climate change. TCFD recommends that
listed companies disclose these financial impacts as part of their annual financial filings, aligned to the
legislative thresholds of financial disclosure.
The TCFD has developed recommendations on climate change disclosure in an annually updated,
publicly available report which is applicable for all sectors. The recommendations cover climate strategy,
governance, risk management and metrics and targets. As part of their risk management, companies
must identify and measure the financial implications of their material risks and opportunities under at least
two widely recognized climate scenarios.
The TCFD also provides a structure to help organizations develop a climate strategy and governance
arrangements to mitigate risk and take action on opportunities. The TCFD framework has achieved
significant uptake since launch and regulatory momentum is building globally; for example, more than
1,000 global organizations have declared their support for TCFD,38 the UK Prudential Regulation Authority
(PRA) has set out expectations for banks and insurers to report on climate risk, and reporting is now
mandatory for signatories to the UN-supported Principles for Responsible Investment network (UNPRI)
(responsible for assets of $103 trillion). Financial institutions responsible for assets worth over $139 trillion
have already announced their support for TCFD.
The framework provides flexibility for setting metrics and targets but recommends that an emissions target
is set using the risk analysis under the business’s relevant climate scenarios. This supports companies
setting meaningful science-based targets in line with achieving net zero.
The Climate Disclosure Standards Board (CDSB) and Sustainability Accounting Standards Board (SASB)
have produced a joint TCFD Implementation Guide39 and related set of Good Practices40 for the reporting
of climate-related performance and risk in mainstream corporate reports in line with the TCFD framework.
And in 2019, the World Economic Forum issued a set of climate governance principles for boards of
directors. Developed in collaboration with PwC, these principles are designed to help increase directors’
climate awareness, embed climate issues into board structures and processes, and improve navigation of
the risks and opportunities that climate change poses to business.41
Nature loss Land use and ecological sensitivity GRI 304-1
Report the number and area (in hectares) of sites owned,
leased or managed in or adjacent to protected areas and/or key
biodiversity areas (KBA).
Rationale
KBAs provide a science-based and internationally recognized means of identifying sites contributing
significantly to the global persistence of biodiversity, while protected areas indicate nationally (and
often internationally) recognized areas of ecological or cultural importance, typically with specific legal
protections. Having operations inside or close to such areas indicates heightened risk of adverse impacts
on biodiversity and heightened risk of exposure to associated legal or reputational risk.
This metric will only be applicable to a subset of companies with operations in or adjacent to protected
areas or KBAs, but for these companies it is an important indicator of heightened risk of adverse impacts
on biodiversity and heightened risk of exposure to associated legal or reputational risk. Alongside this
disclosure, companies may wish to share information on the measures in place to ensure effective
stewardship of these sites.
Freshwater Water consumption and withdrawal in water-stressed areas SASB CG-HP-
availability Report for operations where material: megalitres of water 140a.1,
withdrawn, megalitres of water consumed and the percentage
of each in regions with high or extremely high baseline water WRI Aqueduct
stress, according to WRI Aqueduct water risk atlas tool. water risk atlas
tool
(upstream and downstream) where appropriate. https://www.wri.
org/aqueduct
Rationale
Water consumption and water withdrawal in water-stressed areas are indicators of the potential for
negative societal impacts (resulting from competition with other water users) and associated business
risks including the potential for operational disruptions and shutdowns.
This metric is only likely to be considered material to long-term value creation by a subset of companies
with significant water consumption and withdrawal in water-stressed areas. Alongside this disclosure, such
companies may wish to disclose the year-on-year change in each figure as well as additional information
on their water stewardship approach.
TA B L E Planet: Expanded metrics and disclosures

Climate change Paris-aligned GHG emissions targets Science Based
Define and report progress against time-bound science-based Targets initiative
GHG emissions targets that are in line with the goals of the Paris
Agreement – to limit global warming to well below 2°C above
pre-industrial levels and pursue efforts to limit warming to 1.5°C.
This should include defining a date before 2050 by which you
will achieve net-zero greenhouse gas emissions, and interim
reduction targets based on the methodologies provided by the
Science Based Targets initiative, if applicable.
If an alternative approach is taken, disclose the methodology

used to calculate the targets and the basis on which they deliver
on the goals of the Paris Agreement.
Rationale
The Paris Agreement on climate change sets a long-term goal to keep the increase in global average
temperature to well below 2°C above pre-industrial levels and to pursue efforts to limit the increase to
1.5°C, recognizing that this would substantially reduce the risks and impacts of climate change. All actors,
including businesses, need to play their part in delivering on this goal if we are to avoid the worst effects of
climate change. In June 2020, countries representing more than half of global GDP set or committed to set
net-zero-by-2050 targets and more than 900 companies have published science-based targets consistent
with the Paris Agreement. As such, defining emissions targets that are at least consistent with meeting the
goal of the Paris Agreement is fast becoming the minimum expectation for businesses.
Climate change Impact of GHG emissions US EPA fact
Report wherever material along the value chain (GHG Protocol sheet on the
Scope 1, 2 & 3) the valued impact of greenhouse gas emissions. Social Cost of
Carbon (2016),
Disclose the estimate of the societal cost of carbon used and the
source or basis for this estimate. Natural Capital
Protocol (2016),
ISO 14008:
Monetary
valuation of
environmental
impacts
and related
environmental
aspects (2019),
Value Balancing
Alliance
https://www.
value-balancing.
com/
Rationale
Reporting valued impact in monetary terms provides a meaningful indication of the scale of impacts in units
that can be readily understood by executives and compared across impact areas and with financial figures.
Valuation of environmental impacts is increasingly recognized as the most efficient and effective way of
incorporating as much relevant contextual information as possible to provide estimates of actual impact,
rather than simply measures of output as is the case with most quantitative environmental metrics.
Nature loss Land use and ecological sensitivity New metric
Report for operations (if applicable) and full supply chain
(if material):
1. Area of land used for the production of basic plant, animal or

mineral commodities (e.g. the area of land used for forestry,
agriculture or mining activities).
2. Year-on-year change in the area of land used for the
production of basic plant, animal or mineral commodities.
Note: Supply-chain figures can initially be estimated where
necessary based on the mass of each commodity used
and the average mass produced per unit of land in different
sourcing locations.
3. Percentage of land area in point 1 above or of total
plant, animal and mineral commodity inputs by mass or
cost, covered by a sustainability certification standard or
formalized sustainable management programme. Disclose
the certification standards or description of sustainable
management programmes along with the percentage of
total land area, mass or cost covered by each certification
standard/programme.
Rationale
Growth in demand for land is the primary underlying driver of new conversions of ecosystems, which is
in turn the primary driver of nature loss. The overall area of land used in operations and supply chains
reflects the contribution of the current business model to overall demand for land; and the year-on-year
change indicates whether the company is currently contributing to increasing or decreasing pressure for
new conversions of ecosystems. The proportion covered by a sustainability certification standard or other
formalized sustainable management programme is an indicator of how much of the land used is being
actively managed for long-term value creation.
In addition to companies with significant agricultural, forestry or mining operations, this metric is likely to
be material to long-term value creation for any companies that rely on a significant volume of inputs from
agricultural or forestry systems. Sustainability certification standards or formalized sustainable management
programmes are the primary ways to ensure that any land which must be used for production is used in a
way that maintains or improves its quality and minimizes any adverse production impacts.
Nature loss Impact of land use and conversion Natural Capital
Report wherever material along the value chain: the valued Protocol (2016),
impact of use of land and conversion of ecosystems.
ISO 14008
Monetary
valuation of
environmental
impacts
and related
environmental
aspects (2019),
Value Balancing
Alliance
Rationale
Freshwater Impact of freshwater consumption and withdrawal Natural Capital
availability Report wherever material along the value chain: the valued Protocol (2016),
impact of freshwater consumption and withdrawal.
ISO 14008
Monetary
valuation of
environmental
impacts
and related
environmental
aspects (2019),
Value Balancing
Alliance
Rationale
Air pollution Air pollution GRI 305-7
Report wherever material along the value chain: nitrogen oxides
(NOx), sulphur oxides (SOx), particulate matter and other
significant air emissions.
Wherever possible estimate the proportion of specified

emissions that occur in or adjacent to urban/densely
populated areas.
Rationale
Localized air pollution, in the form of fine particulate matter and oxides of sulphur and nitrogen, is a leading
cause of ill-health and premature death around the world. Emissions in densely populated areas tend to be
particularly harmful because they contribute to high ambient concentrations of pollution and affect a large
number of people.
Air pollution Impact of air pollution Natural Capital
impact of air pollution, including nitrogen oxides (NOx), sulphur
oxides (SOx), particulate matter and other significant air ISO 14008
emissions. Monetary
valuation of
environmental
impacts
and related
environmental
aspects (2019),
Value Balancing
Alliance
Rationale
Water pollution Nutrients SASB CN0101-
Estimate and report wherever material along the value 11
chain: metric tonnes of nitrogen, phosphorous and
potassium in fertilizer consumed.
Rationale
Keeping nitrogen, phosphorus and potassium cycles in balance is critical to the effective functioning of
ecosystems. Current agricultural practices have pushed bio-available levels of nitrogen, phosphorus and
potassium far beyond sustainable thresholds in many parts of the world, leading to freshwater and oceanic
dead zones and a host of other ecological and public health issues. “Biogeochemical flows” (of nitrogen
and phosphorous) is one of only two of the nine planetary boundaries42 that is already deemed to have
been breached. As such, all organizations with significant agricultural operations or supply chains are
recommended to identify their exposure to this global problem.
In addition to companies with significant agricultural or forestry operations, this metric is likely to be material
to long-term value creation for any companies that rely on a significant volume of inputs from agricultural or
forestry systems. Proactive measures to avoid excess nutrients entering the environment are a key aspect
of good ecological stewardship and should form part of agreements with agricultural or forestry suppliers.
Alongside this disclosure, companies may wish to disclose the year-on-year change in each figure as
well as additional information on measures to avoid excess nutrients entering the wider environment, and
evidence of their effectiveness.
Water pollution Impact of water pollution Natural Capital
impact of water pollution, including excess nutrients, heavy
metals and other toxins. ISO 14008:
Monetary
valuation of
environmental
impacts
and related
environmental
aspects (2019),
Value Balancing
Alliance
Rationale
Solid waste Single-use plastics New metric
Report wherever material along the value chain: estimated metric
tonnes of single-use plastic consumed.
Disclose the most significant applications of single-use plastic

identified, the quantification approach used and the definition of
single-use plastic adopted.
Rationale
Metrics for reporting on single-use plastics have not yet been standardized, but the global scale of negative
impacts associated with their use is sufficient to justify additional investigation of corporate value chains
to identify their principal applications and the scale of their use. Experimenting with measurement will help
the company understand its exposure to an issue of high public concern, and disclosing the results and
approach will help to advance understanding of the issues more widely.
Solid waste Impact of solid waste disposal Natural Capital
Report wherever material along the value chain, the valued Protocol (2016),
societal impact of solid waste disposal, including plastics and
other waste streams. ISO 14008:
Monetary
valuation of
environmental
impacts
and related
environmental
aspects (2019),
Value Balancing
Alliance
Rationale
Resource Resource circularity WBCSD Circular
availability Report the most appropriate resource circularity metric(s) for Transition
the whole company and/or at a product, material or site level as Indicators,
applicable. Potential metrics include (but are not limited to) the
Circular Transition Indicators (WBCSD), indicators developed by
the Ellen MacArthur Foundation and company developed metrics.
Ellen MacArthur
Disclose the methodological approach used to calculate the Foundation
chosen circularity metric(s) and the rationale for the choice of
metric(s).
Rationale
Metrics for reporting on resource circularity have not yet been standardized but some promising example
metrics have been developed and tested by multiple companies. Applying emerging circularity metrics and
disclosing the results will help to progress this fundamentally important area. It also indicates proactive
engagement with the risks and opportunities presented by the circular transition and can be used to
demonstrate progress towards genuine resource sustainability.
Example organization-level circularity metrics include the Circular Transition Indicators developed by the
WBCSD43 including percentage of circular inflow and percentage of circular outflow of resources.
Circular inflow can be calculated as follows:

(weight of renewable inflow + weight of non-virgin inflow / total weight of all inflow) x 100%
Circular outflow is calculated as follows, per material flow:

((% recovery potential x % actual recovery) x weight) / total weight of all outflow
Pillar 3 – People
The majority of respondents to the consultation In the expanded metrics, the main changes based
survey ranked all the core metrics as either important on the feedback were as follows:
or highly important, indicating strong support for the
core metrics across all themes (Dignity and equality, – Introduction of the ratio of the annual total
Health and well‑being, and Skills for the future). compensation for the highest-paid individual in
each country to the median compensation in
In the core metrics, the principal changes arising that country
from the feedback and other developments were as
follows: – As with the core metrics, the expanded set saw
the introduction of a pay gap metric based on
– Introduction of CEO pay ratio into wage level gender and other indicators of diversity
metric
– The quantitative aspects of human right issues,
– Transfer of the quantitative element of child and such as assessments and incidents, have been
forced labour from core metric to expanded introduced into the expanded metrics
metric
– The training metric was modified to measure
– Modification of the health and safety metric to investment level and effectiveness of training
include disclosure of provision of non-occupational rather than number of people trained
medical and healthcare services to workforce
In response to feedback received, some additional
– During the six-month consultation period, the commentary has been included for both core and
Black Lives Matter movement took hold and it expanded metrics and a Glossary of definitions of
became important to respond by introducing key terms has been added.
ethnicity into the pay equality metric
TA B L E People: Core metrics and disclosures

Dignity and Diversity and inclusion (%) GRI 405-1b
gender and other indicators of diversity (e.g. ethnicity).
Rationale
Empowering and promoting social and economic inclusion, irrespective of age, sex, disability, race,
ethnicity, origin, religion or other status is an important aspect of good people management. Gender
and ethnic/cultural diversity, particularly within executive teams, are closely correlated to both financial
and non-financial performance and enhance the stability of companies across the globe. More diverse
companies are better able to innovate, attract top talent, improve their customer orientation, enhance
employee satisfaction and secure a licence to operate. Inclusion and diversity are likely to become core to
an organization’s business model in the future. Companies that focus on improving inclusion and diversity
in their workforce can reap both tangible and intangible benefits.
Ethnicity issues have received renewed focus with recent events across the globe, including the Black
Lives Matter movement. Reporting on these aspects provides an opportunity to identify disparities within
the organization and helps improve the culture across the value chain. The suggested age groups for
reporting on this disclosure are: under 30 years old, 30-50 years old and over 50 years old.
Dignity and Pay equality (%) Adapted from
equality Ratio of the basic salary and remuneration for each employee GRI 405-2
category by significant locations of operation for priority areas
of equality: women to men, minor to major ethnic groups, and
other relevant equality areas.
Rationale
Corporate policies promoting pay equality reflect an organization’s culture and help companies bridge
diversity gaps, attract talent and drive long-term competitiveness. Inclusion and diversity can only be
achieved by promoting equal pay and by providing equal remuneration for the same jobs, to address
social disparity and to maximize professional opportunities for all people irrespective of gender, colour,
caste, creed, religion and other diversity aspects. Organizations in which racial and other discrimination
imbalances exist expose themselves to reputational and potential legal risk.
Refer to the guidance provided in the GRI Standard 405 for reporting on this metric. For reporting on
ethnic pay equality, adopt a methodology similar to GRI 405-2, focusing on ethnic groups. The major and
minor ethnic group would be based on the significant locations of organizations’ operations.
Dignity and Wage level (%) GRI 202-1,
equality 1. Ratios of standard entry level wage by gender compared to
local minimum wage. Adapted from
2. Ratio of the annual total compensation of the CEO to the Dodd-Frank
median of the annual total compensation of all its employees, Act, US SEC
except the CEO. Regulations
Rationale
Fair compensation and benefits contribute to the economic well-being of employees, since the distribution
of wages and income is crucial for eliminating inequality and poverty. A wide gap between the highest-
paid individual and the median reinforces inequality and could impede long-term value creation. Focus
on pay ratios improves corporate governance and will help ensure that CEO pay is fair and appropriate
in relation to the rest of the workforce. Disclosure will provide greater insight into how companies are
spending on top-management, their basis for doing so and the opportunity costs that might impact their
performance (e.g. investment in research and development or staff training) and therefore encourage the
organization to raise compensation for low- and middle-income employees.
The organization should disclose this indicator for employees who are compensated based on wages
subject to minimum wage rules. It can report the relevant ratio of entry-level wage to minimum wage by
gender at significant locations of operations. If a local minimum wage is absent or variable at significant
locations of operation, by gender, use different minimums as a reference and report which minimum is
used for calculating the ratio.
Executive compensation disclosure rules require companies to disclose the ratio of the annual total
compensation of the CEO to the median of the annual total compensation of all its employees, except the
CEO. To identify the median compensation of all the employees, companies can select a methodology
based on their own facts and circumstances. A company could, for example, identify the median of
its population or sample using annual total compensation as determined under existing executive
compensation rules, or any consistently applied compensation measure from compensation amounts
reported in its payroll or tax records.
Dignity and Risk for incidents of child, forced or compulsory labour GRI 408-1b,
equality An explanation of the operations and suppliers considered
to have significant risk for incidents of child labour, forced or GRI 409-1a
compulsory labour. Such risks could emerge in relation to:

supplier
considered at risk
Rationale
Child labour and forced or compulsory labour are violations of fundamental human rights and have been
identified as a hindrance to development. There is a strong link between poverty and child labour, which
can lower the standard of living across generations. The ripple effects arising from these issues can
translate into legal and reputational risk for the companies, especially those with extensive value chains.
Eliminating child labour, forced labour and human trafficking requires businesses, financial institutions
and civil society to take strong action and address its root causes. This indicator provides an overview of
where a company is identifying these significant human rights risks and gives the company the opportunity
to explain its approach to risk management of these issues and how it is addressing these risks in the
entire value chain.
For more information refer to GRI Standards 408 and 409 guidance document.
well‑being The number and rate of fatalities as a result of work-related 403-9a&b,
injury; high-consequence work-related injuries (excluding
fatalities); recordable work-related injuries; main types of work- GRI:2018
related injury; and the number of hours worked. 403-6a
An explanation of how the organization facilitates workers’

access to non-occupational medical and healthcare services,
and the scope of access provided for employees and workers.
Rationale
Maintaining strong standards of health, safety and labour rights can improve employee productivity
and operational efficiency and enhance employee well-being. Working proactively in these areas of
business will help identify and mitigate potential risks, and it is increasingly required by law. Mental
health and emotional wellbeing, as components of overall worker health and safety, are becoming
increasingly important to drive innovation and deliver goods and services that are reliant on human capital.
Organizations that invest in non-occupational medical and healthcare services would demonstrate to their
employees that they care and look after them. This would result in a purposeful, resilient and growth-
oriented workforce.
1. For all employees and workers who are not employees but whose work and/or workplace is controlled
by the organization, report the following:
– The number and rate of fatalities as a result of work-related injury
– The number and rate of high-consequence work-related injuries (excluding fatalities)
– The number and rate of recordable work-related injuries
– The main types of work-related injury
– The number of hours worked
For calculation for the rate of work-related injury, high consequence work-related injuries and recordable
work-related injuries refer to GRI:2018 403-9 for guidance.
2. Provide an explanation of how the organization facilitates workers’ access to non-occupational medical
and healthcare services, and the scope of access provided for all employees and workers. Employees’
and workers’ access to non-occupational medical and healthcare services might be facilitated through,
for example, company clinics, disease treatment programmes, referral systems, health insurance or
financial contributions.
When describing the scope of access to non-occupational medical and healthcare services provided,
specify the types of service to which access is facilitated and the types of workers that have access to
them. For more information refer to GRI:2018 403-6 guidance documents.
Skills for the Training provided (#, $) GRI 404-1,
future 1. Average hours of training per person that the organization’s
employees have undertaken during the reporting period, by SASB HC 101-
gender and employee category (total number of hours of training 15
2. Average training and development expenditure per full time
employee (total cost of training provided to employees
divided by the number of employees).
Rationale
A skilled workforce improves a company’s performance, contributes to employee satisfaction and
enhances human capital. It is a key priority for all companies today. When firms fail to invest in training,
education, skilling and reskilling of their workforce, it can affect their business performance, reputation
and ability to attract talent. It can also lead to higher operating costs related to recruiting, developing and
retaining employees. The quantum of training needs to be a healthy mix that helps employees to upskill,
learn and review issues that are industry-relevant. Providing the right mix of training to employees on
technical and behavioural aspects will nurture business growth and help develop a competitive edge.
1. Report average hours of training that company employees have undertaken during the reporting
period, by gender and employee category. In the context of this metric, training refers to:
– All types of vocational training and instruction
– Paid educational leave provided by an organization for its employees
– Training or education pursued externally, paid for in whole or in part by an organization
– Training on specific topics
– Reskilling of employees as per market requirements
– Note: training does not include on-site coaching by supervisors
2. Provide information on the training and development expenditure per full time employee. This
includes the expenditure for professional qualifications (such as credentialing programmes and board
certification), advanced industry education (such as degree and certificate programmes directly related
to job function) and all other categories of training, as mentioned above. For more information refer to
GRI 404-1 guidance and SASB HC101-15
TA B L E People: Expanded metrics and disclosures

Dignity and Pay gap (%, #) Adapted from
equality 1. Mean pay gap of basic salary and remuneration of full-time UK Government
relevant employees based on gender (women to men) guidance on
and indicators of diversity (e.g. BAME to non-BAME) at a gender and
company level or by significant location of operation. ethnicity pay gap
2. Ratio of the annual total compensation for the organization’s reporting,44
highest-paid individual in each country of significant operations
to the median annual total compensation for all employees GRI 102-38
(excluding the highest-paid individual) in the same country.
Rationale
The pay gap metric is considered a potential indicator of organizational structural inequality and under-
representation of disadvantaged groups in senior and higher paid roles. Research has shown that women
and people from ethnic minorities tend to earn less and be in less-senior roles. This is often associated
with social disadvantage and is arguably also caused by discrimination. A migrant workforce may have
a poor command of the local language, possess qualifications that are not generally recognized by
employers and be unfamiliar with the regional culture; these factors affect pay and position. Addressing
this issue will create pathways towards a greater variety of roles in the workforce and will positively change
how businesses promote talent and distribute pay at all levels.
A wide gap between the highest-paid individual and the median reinforces inequality and could impede
long‑term value creation. Depending on how the organization is structured, it can become a crucial factor
in enabling investors to make appropriate decisions.
Guidance on the requirements and the gender pay gap calculation method is provided by the UK Government
Equalities Office as well as by other organizations such as the UK Chartered Institute of Personnel and
Development (CIPD). Companies should apply the same methodology to calculate an ethnicity pay gap, being
the difference in the average rate of pay between BAME (or other relevant ethnic categorization) workers and
non-BAME workers expressed as a percentage of the pay of non-BAME workers.
Companies should disclose the ratio of the annual total compensation for the organization’s highest-
paid individual in each country of significant operations to the median annual total compensation for
all employees (excluding the highest-paid individual) in the same country. Calculate by considering the
median annual compensation of all employees at each level.
Dignity and Discrimination and harassment incidents (#) and the total GRI 406-1,
equality amount of monetary losses ($)
1. Number of discrimination and harassment incidents, status Adapted from
of the incidents and actions taken. SASB FR-
2. Total amount of monetary losses as a result of legal 310a.4
proceedings associated with:
a) law violations, and
b) employment discrimination
Rationale
Organizational culture needs to be built on a foundation of respect, courtesy and professionalism, free
from any acts of discrimination, bullying or harassment. Employers are responsible for dealing effectively
and fairly with situations involving claims and incidents of harassment or discrimination. Commitment
to eliminating discrimination and harassment in the workplace helps reduce inequalities and promotes
organizational cultures that focus on performance and merit.
1. Report on total number of discrimination and harassment incidents, status of the incidents and
remediation measures taken.
2. Report the total amount of monetary losses incurred during the reporting period as a result of legal
proceedings associated with (1) labour law violations and (2) employment discrimination. Labour
violation is defined as violations including, but not limited to, those relating to wages, work hours,
overtime and meal and rest breaks.
While disclosing information on this metric, include incidents of discrimination on the grounds of race,
color, sex, religion, political opinion, national extraction or social origin as defined by the ILO, or other
relevant forms of discrimination involving internal and/or external stakeholders across operations in the
reporting period. For additional information refer to GRI 406-1 guidance and SASB FB–FR–310a.4.
Dignity and Freedom of association and collective bargaining at risk (%) SASB CN0401-
equality 1. Percentage of active workforce covered under collective 17,
bargaining agreements.
2. An explanation of the assessment performed on suppliers GRI 407-1,
for which the right to freedom of association and collective
WDI 7.2
bargaining is at risk, including measures taken by the
organization to address these risks.
Rationale
A responsible business respects the human rights of its workers, including their right to exercise freedom of
association and collective bargaining. It is important to have a proper governance structure in place which
embraces these human rights and makes it possible to promote and realize decent conditions at work. Freedom
of association and collective bargaining are the basis for all human rights in the workplace (e.g. living wage,
decent work conditions, equal opportunities). Organizations that support these rights internally and externally
across the value chain can better mitigate the risk of potential conflicts as well as safeguard business continuity.
1. Report on the percentage of the active workforce covered under collective bargaining agreements. The
active workforce is defined as the maximum number of unique employees employed at any time during
the fiscal year. The scope includes all personnel employed by the registrant, including full-time, part-time
and temporary employees.
2. Workers’ rights to exercise freedom of association or collective bargaining may be violated or at
significant risk either in terms of type of operations and countries or geographic areas. Disclose the
information related and provide the remediation measures taken in the reporting period to support and
protect the rights of collective bargaining across the value chain.
Dignity and Human rights review, grievance impact and modern GRI 412-1,
equality slavery (#, %)
1. Total number and percentage of operations that have been UN Guiding
subject to human rights reviews or human rights impact Principles,
assessments, by country.
Adapted from
2. Number and type of grievances reported with associated
GRI 408-1a and
impacts related to a salient human rights issue in the
GRI 409-1,
reporting period and an explanation on type of impacts.
3. Number and percentage of operations and suppliers WDI 7.5
considered to have significant risk for incidents of child
labour, forced or compulsory labour. Such risks could
emerge in relation to:
a) type of operation (such as manufacturing plant) and type
of supplier; or
b) countries or geographic areas with operations and
suppliers considered at risk.
Rationale
Organizational activities may cause or contribute to an environment of social abuse that violates the human
rights of individuals, workers and communities. Without a mechanism for employees and other key stakeholders
to report human rights violations, companies could miss opportunities to identify and mitigate such underlying
issues. Companies that encourage stakeholders to provide feedback can respond more quickly to misconduct,
build trust with them and prevent harm to long-term value. Eliminating forced labour remains an important
challenge as it perpetuates poverty and is a hindrance to economic and human development. Companies that
associate with modern slavery in any form will damage their reputation, brand and even licence to operate. It is
extremely important for companies to engage with this topic and assess the risk across their value chain.
1. Disclose information on the total number and percentage of operations that have been subject to
human rights reviews or human rights impact assessments, by country. For additional information refer
to GRI 412-1. Perform human rights due diligence across the value chain to report on this aspect.
2. Disclose information related to grievances, including number and type of grievances reported, with
associated impacts related to a salient human rights issues in the reporting period. Additionally,
disclose the types of impacts that occurred (both direct and indirect). Mention any monetary losses
associated with these impacts.
3. Disclose information on the number and percentage of operations and suppliers considered to be at
significant risk of incidents of child, forced or compulsory labour by type of operation and supplier;
and by countries or geographic areas with operations and suppliers considered at risk. To ensure the
accuracy and mitigate the risk, perform risk assessments across upstream and downstream activities.
For more information, refer to GRI 412-1, UN Guiding Principles, GRI 408-1a, GRI 409-1 and WDI 7.5.
Dignity and Living wage (%) MIT Living Wage
equality Current wages against the living wage for employees and Tool,
contractors in states and localities where the company is operating.
EPIC
Rationale
Companies that offer a living wage to workers and employees can help lift households and communities
out of poverty. A living wage provides a benchmark for responsible employers who respect human
rights and who choose to pay their employees a rate that meets the basic cost of living in the region
they operate in. The provision of a living wage could strengthen the organizations’ reputation, reduce
employee turnover and lower the risk of strike action by workers.
Living wage is defined as a wage sufficient to meet the basic standards of living, which will vary by
country, local living standards and need. Information and references for a living wage are available at MIT’s
Living Wage Calculator.45 For locations not in the US, refer to the Living Wage Foundation46 or to “Living
Wages Around the World: Manual for Measurement”, by Richard and Martha Anker.
Health and Monetized impacts of work-related incidents on organization (#, $) Adapted
well‑being By multiplying the number and type of occupational incidents indicator based
by the direct costs for employees, employers per incident on European
(including actions and/or fines from regulators, property damage, Commission,
healthcare costs, compensation costs to employees).
Safe Work
Australia
Rationale
A safe workplace is crucial for companies to maintain employees’ morale and stay competitive. The
financial impacts of workplace accidents can destabilize companies and their business models. Measuring
the direct impacts of these accidents will enable companies to reduce their negative impacts on
employees, business and society. The cost of work-related accidents and ill-health helps substantiate the
business case for investments in occupational health and safety.
Report on monetized impacts incurred due to work-related incidents during the reporting period. Calculate
by multiplying the number and type of occupational incidents (e.g. injuries to employees, structural
damage in the organization etc.) with direct costs incurred by the organization. This includes costs directly
attributed to the accident, e.g. direct costs from compensation payments, first aid and medical expenses,
wages of the victim, material damages, payment of indemnity benefits, workers’ compensation and other
benefits, medical benefits for the injured worker (e.g. workers’ compensation and other health benefits),
return-to-work programmes, workers’ compensation insurance premiums, injury prevention programmes,
and costs of compliance, among others.
Health and Employee well-being (%) GRI:2018
well‑being 1. The number of fatalities as a result of work-related ill-health, 403-10a&b,
recordable work-related ill-health injuries and the main types
of work-related ill-health for all employees and workers. EPIC,
2. a) Percentage of employees participating in “best practice”
Adapted from
health and well-being programmes, and
GRI:2016
b) Absentee rate (AR) of all employees.
403-2a
Rationale
There is a growing recognition that the well-being of employees has a positive impact on organizational
success as well as on employee health, professional fulfilment and quality of life. Research has consistently
shown that employee well-being predicts job attitudes and performance. It has important implications for
productivity and work relationships. Having a hygienic, safe and healthy workplace culture contributes to a
high-performing organization with employees who are socially integrated.
1. Report on the following information for all employees and workers who are not employees, but whose
work and/or workplace is controlled by the organization:
– The number of fatalities as a result of work-related ill-health
– The number of cases of recordable work-related ill-health
– The main types of work-related ill-health
2. Disclose information on the percentage of employees participating in “best practice” health and well-
being programmes. Well-being programmes are categorized under lifestyle management, disease
management and access to healthcare. Report on the absenteeism rate (AR) for all employees.
For more information refer to GRI:2016 403-2b and Embankment Project, EPIC Report page 46.
Skills for the Number of unfilled skilled positions (#, %) WBCSD
future 1. Number of unfilled skilled positions (#). Measuring Impact
2. Percentage of unfilled skilled positions for which the Framework
company will hire unskilled candidates and train them (%). Methodology
Version 1.0
(2008)
Rationale
The rapid changes in global markets and business models including technology have led to a rise in skills
gaps. It is imperative for organizations to identify skills gaps and train employees to bridge the gaps. It
is paramount for organizations, society and investors alike to measure the effects of available skills and
learning. A company will be rewarded in the market based on the value it generates for its stakeholders.
Investing in relevant training programmes will help organizations fill vacant skilled positions, thereby
improving productivity and reducing employee turnover.
1. Report on the number of unfilled skilled positions (a skilled position is unfilled if it is vacant for 90 days).
2. Report on the percentage of unfilled skilled positions for which the company hires unskilled candidates
and trains them.
Organizations can use the regional definition for “skilled” as per the location they operate in. For more
information refer to WBCSD’s impact framework, page 59.
Skills for the Monetized impacts of training – Increased earning capacity as a Adapted from
future result of training intervention (%, $) OECD, 47 48
1. Investment in training as a percentage (%) of payroll.
2. Effectiveness of the training and development through WDI 5.5
increased revenue, productivity gains, employee engagement
and/or internal hire rates.
Rationale
Training affects valuation and creates a pressure for change. It can be leveraged for innovation and used to
improve performance and manage human capital. Enhancing skills through relevant investments in training
and monitoring the effectiveness of training will enhance productivity, reduce employee turnover and
contribute to an organization’s capacity to create long-term value.
1. Report on the investment made in training as a percentage of payroll. This analyses how much
reskilling investment is made to enhance the capabilities of the workforce and make them future-ready.
2. Companies are encouraged to provide any quantitative or qualitative measures of the impact of training
and development on the business and its workforce (e.g. through increased revenue, productivity
gains, employee engagement and/or internal hire rates or return on investment). Regarding internal
hires, report the proportion of internal hires at company level and proportion by employee category.
For reporting on training return on investment, use the DJSI human capital return on investment
methodology or the Kirkpatrick Model.
Pillar 4 – Prosperity
Demonstrating a company’s contribution to financial and sustainability standards. The proposed

Prosperity requires the right combination of metrics direction of travel towards enhanced prosperity
and descriptive disclosures which best reflect reporting is to build from the core metrics and then
the importance of, and relationships between, a begin reporting on the expanded metrics, which are
company’s business activities, investments and closely connected and, in many cases, represent
strategy and the desired outputs and outcomes a natural progression from the core metrics. The
it has for society. There is a need for descriptive expanded metrics are emerging metrics that seek
disclosures which provide additional nuance for to further demonstrate the direct and indirect
how companies are contributing to prosperity in the impact of a company’s activities and investments on
context of its business strategy and purpose. society and the unique ways in which companies
create economic and social prosperity through
The core prosperity pillar metrics are generally employment, financial investment, product
well-established in current corporate reporting innovation and taxes.
practices and draw from existing, widely adopted
Feedback Changes to metrics

The intent of the Prosperity pillar reflects the UN The majority of IBC members who responded to
definition, that it is ‘an ambition to ensure that all the survey rated all of the Prosperity core metrics
human beings can enjoy prosperous and fulfilling as important or highly important, except for the
lives and that economic, social and technological Country-by-country tax metric. The survey responses
progress occurs in harmony with nature.’ In line included concern that the disclosure of a metric
with this vision, Prosperity metrics and disclosures solely covering data on corporate income taxes
were acknowledged throughout the consultation would tell an incomplete story as it would not reflect
as being important for companies to demonstrate the full contribution to public finances made by the
how strategic initiatives and business operations company. A working group of tax professionals was
contribute to long-term value creation and company formed to assess the feedback receivedreceived and
resilience, as well as the broader economy in identify a revised core tax metric that would address
supporting economic and social prosperity. the concerns raised, align with the other core metrics
and hold promise for widespread adoption over time
While companies may currently report some social to increase transparency with respect to company
impact metrics, reporting on the recommended tax burdens. The working group replaced the original
core metrics and impact-focused expanded metrics Country-by-country tax core metric with a Total tax
can more holistically demonstrate their contribution paid core metric; and they added two new expanded
to a prosperous society. The feedback emphasized metrics on Tax collected by the company on behalf
that this area is particularly important in light of of other taxpayers and Total tax paid by country for
ongoing social issues (e.g. the global pandemic, significant locations.
racial and social injustice, wealth inequality,
affordable access to services etc.) and the The Community investment metric was ranked as
increasing importance of intangibles (e.g. innovation important by survey respondents with requests
efforts, social licence to operate) in company for further clarity to avoid subjective inputs such
market valuations and human progress. as in-kind contributions. Some components of
this metric were retained, but it is now embedded
Investors commented that the Prosperity as a component of Economic value generated
pillar themes and metrics move a company’s and distributed (EVG&D) within the Economic
sustainability reporting beyond the traditional ESG contribution core metric, which aligns to GRI 201.
focus, encouraging companies to have a strategic
discussion about their economic impact on wider Feedback from investors and corporates
society and contribution to the SDGs. Investors noted indicated a general preference to report on
that enhanced, consistent reporting of the Prosperity absolute numbers, rather than ratios and
pillar’s comparable metrics and disclosures can be calculations, with supplementary narrative to
used by them to begin assessing a company’s impact further contextualize performance. Therefore,
on society. Such reporting can provide investors ratios were removed from the Economic
an opportunity to bring extra information into their contribution, Financial investment, R&D
investment decisions, in addition to data from sector- expenses and Community investment metrics.
and company-specific reporting. The Prosperity It was acknowledged that information such as
pillar’s expanded metrics provide further reporting on revenue and headcount is widely available and
social impact, including outcome-oriented metrics can be used by educated readers to normalize
that may not currently be reported or disclosed. performance within a sector. Where appropriate,
companies are encouraged to report GRI 102: indicating inputs. However, the challenges and
General Disclosures (2016) – Disclosure 102- complexities of forward-looking metrics are
7 Scale of the Organization for supplementary acknowledged, particularly in comparing social
context and comparison when disclosing metrics impact across companies.
with absolute numbers. Feedback received
from survey respondents also indicated that Two expanded metrics were removed due to lack of
more-forward looking metrics indicating impact support from consultation participants. These were
and outcomes are preferable to lagging metrics Average wage and Net promoter score (NPS).
TA B L E Prosperity: Core metrics and disclosures
Employment Absolute number and rate of employment Adapted, to

and wealth 1. Total number and rate of new employee hires during the include other
generation reporting period, by age group, gender, other indicators of indicators of
diversity and region. diversity, from
2. Total number and rate of employee turnover during the GRI 401-1a&b
reporting period, by age group, gender, other indicators of
diversity and region.
Rationale
Employment and job creation are key drivers of economic growth, dignity and prosperity and provide a
basic indication of a company’s capacity to attract diverse talent, which is key to innovate new products
and services. Employee turnover may serve as an indication of employee satisfaction or dissatisfaction
and potential unfairness in the workplace. This metric is related to the People pillar but included within
Prosperity because it captures the degree to which a company is supporting employment within a region.
Companies should refer to Standard Interpretation 1 to GRI 401: Employment 2016 on calculating the
rates of new employee hires and employee turnover. To support readers’ interpretation of this information,
it is recommended that companies include additional narrative to describe performance, capturing key
changes, including anticipated changes in the labour market (e.g. technology shifts) and the company’s
response to these changes as it pertains to employment.
This metric highlights the economic benefits of considering diversity in talent attraction and retention
and the strong linkages it has to innovation and its importance in addressing the COVID-19 crisis. The
economic crisis due to the pandemic has further exposed the impact of job losses in pushing millions
of people (especially vulnerable groups) into poverty, slowing down targeted poverty reduction and
declination rates. Job creation and employee retention are key to address this risk and can be a simple
starting point to measure companies’ contributions.
Employment and job creation metrics represent a precursor to reporting outcome-driven metrics that
demonstrate a company’s progress in achieving wider societal goals. The metric is expected to evolve into
a more comprehensive metric based on progressive development of the labour market, impact reporting
and evolving stakeholder requirements. Furthermore, the expanded metrics Social value generated and
Significant indirect economic impacts can enable companies to demonstrate the long-term benefits that
employment can have on society.
Employment Economic contribution GRI 201-1,
and wealth 1. Direct economic value generated and distributed (EVG&D),
generation on an accruals basis, covering the basic components for the GRI 201-4
– Revenues
– Operating costs
Rationale
Economic contribution provides a basic indication of how a company has created wealth for stakeholders.
EVG&D and its components can provide a valuable snapshot of the direct monetary value added to
local economies through generation of products and services, servicing of capital, payment of wages,
taxes and community investment, while the significant financial assistance received from government,
when compared with separate disclosures on taxes, can be useful for developing a more balanced and
transparent snapshot of the balance of transactions between the company and government.
For GRI 201-1, the EVG&D calculation provides estimates of revenues, costs (including payments to labour and
capital as factors of production and community investment) and a calculation of economic value retained in the
business, on an accruals basis, in which costs are subtracted from revenues. It is expected to be calculated
using data from the P&L or other audited financial disclosures. Under accrual basis of accounting, revenue
is recorded when it is earned and expenses are reported when they are incurred. For GRI 201-4, companies
are also expected to report on any government shareholdings.49 GRI 201 guidance states that companies
may report at the country, regional or market level for these components. GRI 201-1 includes payments to
government alongside other metrics, whereas payments from government (e.g. fines and taxes) are separated
out in GRI 201-4. Companies may additionally choose to compare net payments to government (from GRI
201-1) with the metrics in GRI 204-4, to the extent that otherwise the less prominent reporting of payments to
government gives a misleading impression of receiving net subsidies.
To support readers’ interpretation of this information, it is recommended that companies include an additional
narrative to describe performance, capturing key changes including anticipated changes in the market (e.g.
demographic changes, global crises) and the company’s response to these changes as it pertains to economic
performance. This may include additional narrative on how a company’s economic contributions support
vulnerable and under-represented groups in society.
Information on the creation and distribution of economic value provides a basic indication of how a company
has created wealth for stakeholders, which correlates to long‑term financial performance and is likely to be a
crucial component in any analysis of benefits versus costs with other metrics (e.g. environmental impacts).
Economic value generated and distributed (EVG&D) figures also provide an economic profile of a company,
which can be useful for normalizing other performance figures. If presented in regional or country‑level
detail, EVG&D can provide a valuable snapshot of the direct monetary value added to local economies, for
example through the generation of products and services, servicing of capital, payment of wages, taxes and
community investment.
Financial assistance received from the government, including tax breaks, subsidies and investment grants,
provides a measure of governments’ contributions to a company. It includes tax relief and tax credits, subsidies,
investment grants, research and development grants and other relevant types of grant, awards, royalty
holidays, financial assistance from Export Credit Agencies, financial incentives and other financial benefits
received or receivable from any government for any operation. The significant financial assistance received
from government, when compared with separate disclosures on taxes, can be useful for developing a more
balanced and transparent snapshot of the balance of transactions between the company and government.
The two metrics capture value-added for consumers, workers, investors and communities where
companies work. Strong value-added indicates that the business is producing compelling goods and
services for its customers and society, as opposed to being sustained by continued investment or financial
assistance from government.
Overall, the role of businesses in fuelling economic development and growth is highly appreciated and of
extreme importance given the economic impacts of COVID-19. The economic contraction associated
with COVID-19 and resulting interventions have reduced overall economic output substantially and drawn
heightened attention to the community investments that companies are making to support response and
recovery associated with the pandemic.
Economic contribution addresses the direct and short-term impacts on prosperity. Over time, the goal should
be a wider and more dynamic view of economic contribution. GRI 203 addresses indirect economic impacts
such as Investment in infrastructure and services supported and Significant indirect economic impacts, which
are included as expanded metrics. Companies have already began moving towards output measurement to
demonstrate their societal impact (e.g. the number of people who have been reached) and the direction of
travel is moving towards measuring outcomes and impacts of those investments made in a company’s people
and the communities in which they operate and impact through their products and services.
Employment Financial investment contribution As referenced
and wealth 1. Total capital expenditures (CapEx) minus depreciation, in IAS 7 and US
generation supported by narrative to describe the company’s GAAP ASC 230
investment strategy.
2. Share buybacks plus dividend payments, supported by
narrative to describe the company’s strategy for returns of
capital to shareholders.
Rationale
Investment is a key driver of an economy’s growth and a company’s capacity to expand its operations and
create additional employment. Wealth creation from investment activities can be evidenced through the
company’s expenditures to grow the business as compared to distribution of capital to shareholders.
The components identified above all feature within the International Accounting Standard’s IAS 7
Statement of Cash Flows and US GAAP ASC 230 Statement of Cash Flows and are standard disclosures
within financial statements.50, 51 To support readers’ interpretation of this information, it is recommended
that companies include an additional narrative to provide insight into their strategy for expansionary efforts
and on other investments in the business outside of the criteria included in the recommended metric.
Additionally, the narrative can describe performance, capturing key changes (and anticipated changes) in
the market or the company’s financial performance and the company’s response to these changes as it
pertains to financial investment.
Refer to the Glossary for further description of the components by IAS 7 and ASC 230, including capex
and share buybacks. If intangibles are included within the measure for capital expenditure, then it is
recommended that related amortization be included alongside depreciation.
Not all capital expenditures can be considered expansionary as some are necessary to maintain current
business activity. Depreciation is used as a proxy for maintenance expenditures in this calculation, to
isolate capital expenditures that contribute to expanding business activity. This needs to be balanced,
however, with the amount of capital a company returns to shareholders in lieu of expansionary efforts, as
share buybacks and dividends restrict a company’s ability to invest back into the business. Taken together,
the four components (total capital expenditure, depreciation, share buybacks and dividend payments)
can serve as a basic indicator for net business investment which is why there is value in presenting them
together.
As companies are already reporting the components of this metric in annual filings, the metric can
evolve to disclose the impact and success of investment through return on investment (ROI) metrics and
qualitative assessments of investment performance. Expanded metrics such as Vitality Index or Total
Social Investment may further enable companies to report the impact of their investments in long-term
value creation and the broader impacts on society.
Innovation of Total R&D expenses ($) US GAAP ASC
better products Total costs related to research and development. 730
and services
Rationale
Innovation is key to prosperity and total costs relating to R&D can be regarded as a basic indication of a
company’s efforts to innovate new products and services and be fit for the future. This can also provide
insights into the capacity of the company to create new offerings, generate social or environmental
benefits and more detailed specific disclosure could demonstrate progress against the SDGs.
Total R&D expenses include costs related to Research and Development (as defined in the Glossary)
and exclude government grants. Total R&D expenses should be reported together as required by the US
GAAP standard, differing from R&D reporting under IFRS. For companies reporting according to IFRS,
who subsequently report research costs as incurred expenses and development costs as capitalized, it is
recommended to combine these amounts.
Companies are facing a high level of uncertainty due to factors such as disruptors, innovation and
changing customer trends and regulations. Their responses can be difficult to communicate through
R&D metrics alone. Therefore, an accompanying narrative that explains how the company is preparing
for different scenarios across each stage of the innovation pathway (ideation, development, launch and
maturity) and its sector context is recommended. This may help users of the information better understand
the company’s performance and the link between its operating context, its innovation strategy and long-
term value creation.
Companies may also consider including additional narrative description, outlining the extent to which
R&D efforts address sustainability challenges. As not all R&D will be dedicated to addressing sustainability
challenges, it is recommended that companies provide an indication of how much of the total R&D
expenses is dedicated to sustainability and description of projects.
Companies that demonstrate strength in innovation are better positioned for growth and resilience,
strengthening their competitive edge in the market and more effectively respond to the needs and
demands of changing society. By disclosing R&D spending and activities, companies can convey how
they contribute to sustainable solutions and efficient production, thereby showing they are fit for the future.
Currently, the most disclosed innovation metrics (e.g. R&D investments and number of patents) are from
the early phases of the innovation process (e.g. ideation and development). Therefore, R&D is a critical
starting point for companies wishing to disclose their contribution to prosperity, where innovation drives
both wealth generation and enhancement of consumer and social welfare. This metric can be viewed as
an initial step before advancing to reporting on more outcome-driven metrics (e.g. lives saved through
product innovation, energy saved through more energy-efficient products or services). Expanded metrics
such as Social value generated or Vitality Index may better enable companies to demonstrate the way in
which their innovation strengthens their future licence to operate as well as long-term financial viability.
Community and Total tax paid Adapted from
social vitality The total global tax borne by the company, including corporate GRI 201-1
income taxes, property taxes, non-creditable VAT and other
sales taxes, employer-paid payroll taxes, and other taxes that
constitute costs to the company, by category of taxes.
Rationale
Reporting of total tax paid provides global information on the company’s contribution to governmental
revenues through the different forms of taxation imposed on it. This reporting provides information on the
company’s global tax profile and on the various categories of taxes that support governmental functions
and public benefits.
To support readers’ interpretation of this information, it is recommended that companies include additional
narrative to describe the measurement and presentation approach used and to provide relevant context
for the information.
Taxes are important sources of government revenue and are central to the fiscal policy and
macroeconomic stability of countries. They are acknowledged by the UN to play a vital role in achieving
the SDGs. They are also a key mechanism by which companies contribute to the economies in which they
operate, as government revenues support public infrastructure and services.
Total tax paid is a comprehensive measure of the tax payments that companies make to governments
at all levels to fund government operations, public infrastructure and essential services. The inclusion of
all types of taxes provides a balanced global metric because it takes into account the different mixes of
types of taxes deployed by different governments as well as the different mixes of types of taxes borne by
different companies in different business lines.
Today there is no consistent practice for disclosure of comprehensive tax information by companies. Total
tax paid is a comprehensive measure intended to increase transparency with respect to company tax
burdens. Over time, the goal is consistency in reporting comprehensive tax information to facilitate greater
understanding of the full contribution that companies make in supporting government operations and
funding public benefits.
TA B L E Prosperity: Expanded metrics and disclosures
Employment and Infrastructure investments and services supported GRI 203-1
wealth generation Qualitative disclosure to describe the below components:
1. Extent of development of significant infrastructure

investments and services supported.
2. Current or expected impacts on communities and local
economies, including positive and negative impacts
where relevant.
3. Whether these investments and services are commercial,
in-kind or pro bono engagements.
Rationale
Combined with investment in its own operations, this metric captures the company’s capital contribution
to the economy through provision of infrastructure services. This metric expands upon the Economic
contribution metric to identify further contributions to long-term value and a prosperous society.
As per the GRI reporting guidance, when compiling the information for this disclosure, the company
should include the size, cost and duration of each significant infrastructure investment or service
supported, the extent to which different communities or local economies are impacted by the company’s
infrastructure investments and the type of services supported. These impacts can be direct and indirect,
extending beyond the scope of a company’s own operations and over longer timescales.
Employment and Significant indirect economic impacts GRI 203-2
wealth generation 1. Examples of significant identified indirect economic
impacts of the organization, including positive and
negative impacts.
2. Significance of the indirect economic impacts in the
context of external benchmarks and stakeholder priorities
(e.g. national and international standards, protocols,
policy agendas).
Rationale
Indirect economic impacts such as economic development in areas of high poverty, improving or
deteriorating social or environmental conditions, and enhanced skills and knowledge in a community or in
a geographic location are particularly important to assess as a facet of a company’s overall contribution to
local communities and regional economies. This metric expands upon the Economic contribution metric
to identify further contributions to long-term value and a prosperous society.
This disclosure addresses indirect economic impacts, which are defined by GRI 203 as “the additional
consequences of the direct impact of financial transactions and the flow of money between an
organization and its stakeholders.”52 Indirect economic impacts can be monetary or non‑monetary and
are important to assess in relation to local communities and regional economies. Examples of significant
indirect economic impacts, both positive and negative, are set out in the GRI reporting guidance.53
This metric was selected because indirect economic impacts are particularly important to assess as a facet
of a company’s overall contribution to local communities and regional economies. When reported with
the Economic contribution core metric and Infrastructure investments and services supported expanded
disclosure, a company can provide a more holistic picture of the economic impacts it has on society.
Innovation of better Social value generated (%) Adapted from
products and Percentage of revenue from products and services designed GRI (FiFS7 +
services to deliver specific social benefits or to address specific FiFS8) and
sustainability challenges. SASB FN0102-
16.a,
EPIC
Rationale
This metric captures the degree to which a business is generating products and services that support
sustainability and can also provide insights into the capacity of the company to create new offerings
through recognizing the benefits (e.g. revenue) from offering these products and services.
This metric has been adapted from related SASB and GRI metrics, including the amount of
sustainability‑focused services and the monetary value of products and services designed to deliver a
specific environmental and social benefit for each business line.54
To further support readers’ interpretation of this information, enhance comparability and provide sectoral
relevance, it is recommended that companies include additional narrative explanation to describe
products and services included in the metric and the sustainability challenges addressed. For example,
this could include products designed to provide renewable energy, enhance personal safety, address
water scarcity, or support local communities.
Innovation of better Vitality Index Adapted from
products and Percentage of gross revenue from product lines added in last OECD Oslo
services three (or five) years calculated as the sales from products that Manual Section
8.3.1
have been launched in the past three (or five) years divided
by total sales, supported by narrative that describes how the
company innovates to address specific sustainability challenges.
Rationale
This metric is a proxy to measure the effectiveness and productivity of a company’s investments in
innovation and serves as a primary metric for the maturity phase of innovation.
It is widely acknowledged that there is no “one‑size‑fits‑all” approach to measuring innovation or
tracking a company’s innovative performance, and it is often company‑ or sector‑specific. However, the
Vitality Index, first developed as a proxy to measure the effectiveness and productivity of investments
in innovation, is a suggested starting point that should be universally applicable so long as the metric
parameters are clearly defined by the company.55
The challenges associated in the measurement and definition of this metric (e.g. what constitutes a “new
product” and what time horizon should be applied) suggest that the metric should be supported by clear
disclosures that define “new product lines” and establish the time horizon (e.g. three or five years) that
has been applied. To enhance reporting of this metric, it is recommended that an additional narrative is
included to further identify the new products and services that are addressing sustainability challenges.
Through investor consultation, the Embankment Project for Inclusive Capitalism (EPIC) identified the
Vitality Index as one of its primary metrics for the maturity phase of innovation, as it is already reported
on by some companies and it enhances a company’s disclosure of total R&D expenses as a measure
of innovation in terms of success in understanding and meeting customer needs through new product
offerings.56 Other reporting frameworks that utilize this or similar metrics include WICI’s Intangibles
Reporting Framework.
Community and Total Social Investment ($) CECP Valuation
social vitality Total Social Investment (TSI) sums up a company’s resources Guidance
used for “S” in ESG efforts defined by CECP Valuation
Guidance.
Rationale
This metric is a more inclusive definition of community investment, which seeks to capture the multiple
ways in which companies can demonstrate their investment in social activities beyond traditional
charitable giving.
Total Social Investment (TSI) is a metric summing up all resources (operational expenses, staff time and more)
that the company uses for “S” in ESG efforts.57 Using a monetary unit of measurement allows for ease of
comparison across companies, making the metric well-suited for benchmarking. TSI spans all social efforts
and therefore is compatible with the differences that result when companies set strategy based on their
materiality assessment. For example, an energy company is likely to have a much higher percentage of TSI
towards safety efforts compared to the safety percentage for a financial services company.
There are seven known categories of social efforts and two gaps in current knowledge that together express
the scope of what to include in a company’s TSI value. The seven known categories are drawn from an
extensive landscape review done by CECP and include communities, human rights, diversity equity and
inclusion (internal and external), training, health and safety, and labour relations. The two gaps in current
knowledge are broader partnerships and social value categories, including efforts such as socially-driven
internships, donations of digital material, impact investing and shared-value work. The metric TSI may be
reported on its own as a total, or preferably as a total followed by a categorized breakdown.
This metric is intentionally input-driven, inspired by the desire for it to be commonly reported across
companies from any industry. It is intended to be paired with other metrics in a company’s reporting that
show outcomes and impacts.
The measurement of social investment is continuing to evolve as both the private and public sectors
attempt to measure their contributions to the communities and societies where they live and work.
Corporate social activities, which may have started by addressing challenges in local communities with
community investments (e.g. cash contributions to community partners), have expanded to include other
types of social investment such as employee involvement, the use of company influence to raise funds
from others, product development with social purpose and much more.
Community and Additional tax remitted Adapted from

social vitality The total additional global tax collected by the company GRI 201-1
on behalf of other taxpayers, including VAT and employee-
related taxes that are remitted by the company on behalf of
customers or employees, by category of taxes.
Rationale
Companies may choose to report on additional tax remitted in order to provide global information on
their further contribution to governmental revenues through the total taxes they collect in their business
interactions with other taxpayers and remit to governments. The support that a company provides
through this function enhances the operation of tax systems and reduces the administrative burden that
governments otherwise would bear in collecting these taxes.
Additional tax remitted is an expanded metric that provides information on a company’s further
contribution to governments and society through the support provided by collecting and remitting
taxes in its business interactions with other taxpayers, including the payroll taxes associated with the
compensation the company provides to the workforce it employs.
Community and Total tax paid by country for significant locations Adapted from
social vitality Total tax paid and, if reported, additional tax remitted, by GRI 201-1
country for significant locations.
Rationale
Companies may choose to supplement their reporting of total tax paid, as well as additional tax remitted
(if reported), by providing country-level information for significant business locations in order to highlight
their contributions to governmental revenues and support for tax collections in such countries.
The additional information provided under this expanded metric would highlight a company’s contributions
to governmental revenues and support for tax collections in countries where it has significant business
operations.
Glossary
Term Definition Source Relevant pillar and metric

Absentee Worker absent from work because of incapacity of GRI 403-2 (2016), People, Expanded: Well-being
any kind, not just as the result of work-related injury or Glossary
disease
Note: Absentee excludes permitted leave absences

such as holidays, study, maternity or paternity leave
and compassionate leave.
Absentee rate Measure of actual absentee days lost, expressed as a GRI 403-2, 2016 People, Expanded: Well-being
percentage of total days scheduled to be worked by Glossary
workers for the same period (The total absentee days
lost divided by the total days scheduled to be worked
by employees during the reporting period, expressed as
a percentage)
Note: Absentee rate can be calculated for a specific

category of workers (e.g. employees). This is specified
in the respective disclosure in the GRI Standards.
Age group – Under 30 years old GRI Disclosure People, Core: Diversity and
– 30-50 years old 401-1 inclusion
– Over 50 years old
Prosperity, Core: Absolute
number and rate of
employment
Annual total Compensation provided over the course of a year. GRI 102-38 People, Core: Wage Level
compensation Glossary
Annual total compensation can include compensation People, Expanded: Pay Gap
such as salary, bonus, stock awards, option awards,
non-equity incentive plan compensation, change in
pension value and nonqualified deferred compensation
earnings and all other compensation.
Capex As referenced in IAS 7 – Cash payments to acquire IAS 7 Statement Prosperity, Core: Financial
property, plant and equipment, intangibles and other of Cash Flows investment contribution
long-term assets. These payments include those and ASC 230
relating to capitalized development costs and self- Statement of Cash
constructed property, plant and equipment. Flows
As referenced in ASC 230 – Payments at the time of

purchase or soon before or after purchase to acquire
property, plant, and equipment and other productive
assets, including interest capitalized as part of the cost
of those assets
Carbon dioxide The universal unit of measurement to indicate the global The Greenhouse Planet, Core: Greenhouse Gas
equivalent warming potential (GWP) of each of the six greenhouse Gas Protocol, emissions
(tCO2e) gases, expressed in terms of the GWP of one unit A Corporate
of carbon dioxide. It is used to evaluate releasing (or Accounting
avoiding releasing) different greenhouse gases against a and Reporting
common basis. Standard (Revised
Edition), 2004
Cash flows Payments to acquire/receipts from the sale of, property, IAS 7 Statement of Prosperity, Core: Financial
from investing plant and equipment, intangibles and other long‑term Cash Flows investment contribution
activities assets (including payments and receipts relating to
capitalized development costs and self‑constructed
property, plant and equipment)
Child Person under the age of 15 years, or under the age of GRI 408-1 People, Core: Risk for incidents
completion of compulsory schooling, whichever is higher. Glossary , ILO of child, forced or compulsory
Convention labour
Note 1: Exceptions can occur in certain countries
where economies and educational facilities are People, Expanded: Human
insufficiently developed and a minimum age of 14 years rights review, grievance impact
applies. These countries of exception are specified by & modern slavery
the International Labour Organization (ILO) in response
to a special application by the country concerned and
in consultation with representative organizations of
employers and workers.
Note 2: The ILO Convention 138, “Minimum Age

Convention”, 1973, refers to both child labour and
young workers.
Chronic Chronic disease management includes supporting Embankment People, Expanded: Well-being
disease employees to manage chronic non-communicable Project, EPIC
management diseases (these include for example, heart disease, Report (Page 47)
hypertension, diabetes, mental health). Following a
baseline health assessment (anonymized) the company
then supports and intervenes where appropriate (e.g.
access to flu shots, helplines).
Clawback Repayment of previously received compensation GRI: 102-35, Principles of Governance,
required to be made by an executive to his or her Glossary Expanded: Remuneration
employer in the event certain conditions of employment
or goals are not met
Community Total community investments refer to actual GRI 201-1 Prosperity, Core: Economic
investment expenditures in the reporting period, not commitments. contribution
An organization can calculate community investments

as voluntary donations plus investment of funds in the
broader community where the target beneficiaries are
external to the organization. Voluntary donations and
investment of funds in the broader community where
the target beneficiaries are external to the organization
can include:
– Contributions to charities, NGOs and research

institutes (unrelated to the organization’s commercial
research and development)
– Funds to support community infrastructure, such as
recreational facilities
– Direct costs of social programmes, including arts
and educational events.
Confirmed Incident of corruption that has been found to be GRI: 205-3, Principles of Governance, Core:
incident of substantiated. Glossary Anti-corruption
corruption
Note: Confirmed incidents of corruption do not include
incidents of corruption that are still under investigation
in the reporting period.
COP26 The 26th United Nations Climate Change Conference Planet
of the Parties, to be held in Glasgow, UK in November
2021 – https://www.ukcop26.org/
Corruption Abuse of entrusted power for private gain, which can be GRI: 205-2, GRI Principles of Governance, Core:
instigated by individuals or organizations. 205-3, Glossary Anti-corruption
Note: In the GRI Standards, corruption includes practices

such as bribery, facilitation payments, fraud, extortion,
collusion and money laundering. It also includes an
offer or receipt of any gift, loan, fee, reward, or other
advantage to or from any person as an inducement to
do something that is dishonest, illegal, or a breach of
trust in the conduct of the enterprise’s business. This can
include cash or in-kind benefits, such as free goods, gifts
and holidays, or special personal services provided for
the purpose of an improper advantage, or that can result
in moral pressure to receive such an advantage.
Discrimination Act and result of treating persons unequally by imposing GRI 406-1 People, Expanded:
unequal burdens or denying benefits instead of treating Glossary Discrimination and harassment
each person fairly on the basis of individual merit. incidents and the total amount
of monetary losses
Note: Discrimination can also include harassment, defined
as a course of comments or actions that are unwelcome,
or should reasonably be known to be unwelcome, to the
person towards whom they are addressed.
Downstream “Gate-to-grave”: covers activities linked to the Natural Capital Planet, Core:
purchase, use, reuse, recovery, recycling and final Coalition et al, The
disposal of the business’ products and services Natural Capital – Greenhouse Gas emissions
Protocol, 2016 – Water consumption and
withdrawal in water-
stressed areas
Employee An individual who is in an employment relationship GRI Disclosure Principles of Governance, Core:
with the organization, according to national law or its 102-7 and 102-8 Anti-corruption
application and glossary
definition Principles of Governance,
Type of employment relationship: Expanded: Remuneration
– Employment contract: Contract as recognized
under national law or practice that can be written, People, Core and Expanded:
verbal, or implicit (that is, when all the characteristics Across all metrics
of employment are present but without a written or
witnessed verbal contract).
number and rate of
– Indefinite or permanent contract: A permanent
employment
employment contract is a contract with an
employee, for fulltime or part-time work, for an
indeterminate period.
– Fixed term or temporary contract: A fixed term
employment contract is an employment contract
as defined above that ends when a specific time
period expires, or when a specific task that has a
time estimate attached is completed. A temporary
employment contract is of limited duration and is
terminated by a specific event, including the end
of a project or work phase or return of replaced
employees.
Employment type:
– Full-time: A “full-time employee” is an employee
whose working hours per week, month, or year
are defined according to national legislation and
practice regarding working time (such as national
legislation which defines that “full-time” means a
minimum of nine months per year and a minimum of
30 hours per week).
– “Part-time employee” is an employee whose
working hours per week, month, or year are less
than “full-time” as defined above.
Employee Breakdown of employees by level (such as senior GRI 405-2 People, Core:
category management, middle management) and function (such Glossary – Diversity & Inclusion,
as technical, administrative, production). – Pay equality,
– Training provided
Note: This information is derived from the organization’s
own human resources system.
Employee Employees who leave the organization voluntarily or GRI glossary Prosperity, Core: Absolute
turnover due to dismissal, retirement, or death in service. number and rate of
employment
Entry level Full-time wage in the lowest employment category GRI 202-1 People, Core: Wage Level
wage Glossary
Note: Intern or apprentice wages are not considered
entry level wages.
Financial Direct or indirect financial benefits that do not represent GRI 201-1 Prosperity, Core: Economic
assistance a transaction of goods and services, but which are an contribution
incentive or compensation for actions taken, the cost of
an asset, or expenses incurred.
Note: The provider of financial assistance does not

expect a direct financial return from the assistance
offered.
Forced or All work and service that is exacted from any person GRI 409-1 People, Core: Risk for incidents
compulsory under the menace of any penalty and for which the said Glossary of child, forced or compulsory
labour person has not offered herself or himself voluntarily. labour
Note 1: The most extreme examples of forced or People, Expanded: Human

compulsory labour are slave labour and bonded labour, rights review, grievance impact
but debts can also be used as a means of maintaining & modern slavery
workers in a state of forced labour.
Note 2: Indicators of forced labour include withholding

identity papers, requiring compulsory deposits and
compelling workers, under threat of firing, to work extra
hours to which they have not previously agreed.
Note 3: This definition is based on International Labour

Organization (ILO) Convention 29, “Forced Labour
Convention”, 1930.
Formal Written document signed by both parties declaring a GRI 407-1 People, Expanded: Freedom
agreement mutual intention to abide by what is contained in the Glossary of association and collective
documents. bargaining at risk
Note: A formal agreement can include, for example, a

local collective bargaining agreement, or a national or
international framework agreement.
Freedom of Right of employers and workers to form, to join and to GRI 407-1 People, Expanded: Freedom
association run their own organizations without prior authorization Glossary WDI 7.2 of association and collective
or interference by the state or any other entity. Definitions bargaining at risk
Gender Gender refers to the roles, behaviours, activities, World Health People, Core:
attributes and opportunities that any society considers Organization – Diversity & inclusion
appropriate for girls and boys, and women and men. – Training provided
Gender interacts with, but is different from, the binary
categories of biological sex People, Expanded: Pay gap

number and rate of
employment
Governance Committee or board responsible for the strategic GRI: 102-22, Principles of Governance, Core:
body (alt. guidance of the organization, the effective monitoring of 205-2, 405-1a, – Governance body
governing management and the accountability of management to Glossary composition
body) the broader organization and its stakeholders – Anti-corruption
Principles of Governance,
Expanded: Economic,
environmental and social topics
in capital allocation framework
Greenhouse GHGs are the six gases listed in the Kyoto Protocol: The Greenhouse Planet, Core:
gases (GHG) carbon dioxide (CO2); methane (CH4); nitrous oxide Gas Protocol, – Greenhouse Gas emissions
(N2O); hydrofluorocarbons (HFCs); perfluorocarbons A Corporate – TCFD implementation
(PFCs); and sulphur hexafluoride (SF6). Accounting
Planet, Expanded:
and Reporting
– Paris-aligned GHG
Standard (Revised
emissions targets
Edition), 2004.
– Impact of greenhouse gas
emissions
Grievance System consisting of procedures, roles and rules for GRI 408-1 People, Expanded: Human
mechanism receiving complaints and providing remedy. Glossary rights review, grievance impact
and modern slavery
Note: Effective grievance mechanisms are expected to be
legitimate, accessible, predictable, equitable, transparent,
rights-compatible and a source of continuous learning.
For operational-level mechanisms to be effective, they
are expected to be based on engagement and dialogue.
For a description of each of these criteria, see Guiding
Principle 31 in the United Nations (UN), “Guiding Principles
on Business and Human Rights, Implementing the United
Nations “Protect, Respect and Remedy” Framework”, 2011
Health Process of enabling people to increase control over and GRI 403-9 (2018), People, Core: Health & safety
promotion improve their health. Glossary
Note 1: The terms “health promotion”, “well-being” and OSHAS 2018

“wellness” are often used interchangeably.
Note 2: This definition comes from the World Health

Organization (WHO), “Ottawa Charter for Health
Promotion”, 1986
High- Work-related injury that results in a fatality or in an GRI 403-9 (2018), People, Core: Health & safety
consequence injury from which the worker cannot, does not, or is Glossary
work-related not expected to recover fully to pre-injury health status
injury within 6 months.
Highest Formalized group of persons charged with ultimate GRI: 102-22, 102- Principles of Governance, Core:
governance authority in an organization. 35, Glossary – Governance body
body composition
Note: In instances where the highest governance body – Anti-corruption
consists of two tiers, both tiers are to be included.
Principles of Governance,
Expanded:
– Remuneration
– Economic, environmental
and social topics in capital
allocation framework
High-potential Work-related incident with a high probability of causing GRI 403-9 (2018), People, Core: Health & safety
work-related a high-consequence injury. Glossary
incident
Note: Examples of high-potential incidents might
include incidents involving malfunctioning equipment,
explosions, or vehicle collisions with a high probability
of causing a high-consequence injury.
Human rights Formal or documented assessment process that GRI 412-1 People, Expanded: Human
review applies a set of human rights performance criteria. Glossary rights review, grievance impact
& modern slavery
Impact In the GRI Standards, unless otherwise stated, GRI: 102-47, Principles of Governance,
“impact” refers to the effect an organization has on the Glossary Core: Material issues impacting
economy, the environment, and/or society, which in stakeholders
turn can indicate its contribution (positive or negative) to
sustainable development.
Note 1: In the GRI Standards, the term “impact” can
refer to positive, negative, actual, potential, direct,
indirect, short-term, long-term, intended, or unintended
impacts.
Note 2: Impacts on the economy, environment, and/

or society can also be related to consequences for
the organization itself. For example, an impact on the
economy, environment, and/or society can lead to
consequences for the organization’s business model,
reputation, or ability to achieve its objectives.
Incident Occurrence arising out of, or in the course of, work that ISO 45001:2018 People, Core: Health & Safety
could or does result in injury and ill health.
People, Expanded: Monetized
Note 1 to entry: An incident where injury and ill health impacts of work-related
occurs is sometimes referred to as an “accident”. incidents on organization
Note 2 to entry: An incident where no injury and ill
health occurs, but has the potential to do so, may be
referred to as a “near-miss” “near-hit” or “close call”.
Note 3 to entry: Although there can be one or more
nonconformities related to an incident, an incident can
also occur where there is no nonconformity.
Key KBAs are sites contributing significantly to the global IUCN, A Global Planet, Core:
biodiversity persistence of biodiversity. Standard for the Land use and ecological
area (KBA) Identification of Key sensitivity
KBAs are defined by the KBA partnership and can be
Biodiversity Areas.
viewed at: http://www.keybiodiversityareas.org/site/
Version 1.0, 2016.
mapsearch
Lifestyle Lifestyle management includes supporting employees Embankment People, Expanded: Well-being
management with psychological safety, encouraging health Project, EPIC
assessments, physical and emotional health and well- Report (Page: 47)
being, stress management, social connectedness,
mindfulness, emotional resilience, making healthy food
and physical activity choices easier and supporting
smokers to quit.
Living wage The provision of wages that are “enough to meet basic Shift, “The Human People, Expanded: Living Wage
needs and to provide some discretionary income”. Rights
Opportunity”, July
In general terms, a living wage is the minimum income
2018, p 10
necessary for a worker and their family to meet basic
needs, including some discretionary income. In many
cases, a living wage is considered to be higher than the
minimum wage set by national laws.
Local minimum Minimum compensation for employment per hour, or GRI 202-1 People, Core: Wage Level
wage other unit of time, allowed under law. Glossary
Note: Some countries have numerous minimum
wages, such as by state or province or by employment
category.
Losses All monetary liabilities to the opposing party or to others SASB: 510a.1 Principles of Governance,
(monetary) (whether as the result of settlement or verdict after Expanded: Monetary losses
trial or otherwise), including fines and other monetary from unethical behaviour
liabilities incurred during the reporting period as a result
of civil actions (e.g. civil judgments or settlements),
regulatory proceedings (e.g. penalties, disgorgement, or
restitution) and criminal actions (e.g. criminal judgment,
penalties, or restitution) brought by any entity (e.g.
governmental, business, or individual).
Materiality For an interpretation of how we use the word World Economic All pillars
“materiality” in the context of this project, refer to Box 1 Forum, Bank of
in the main report. America, Deloitte,
EY, KPMG, PwC
Non-financial In this paper, we refer primarily to ESG and Accountancy All pillars
information sustainability reporting. The term non-financial Europe,
information (NFI) is also frequently used. Even “Interconnected
though NFI lacks a widely accepted definition, it Standard Setting
includes information relating to environmental, social for Corporate
and governance (ESG) reporting, corporate social Reporting”,
responsibility (CSR), internally generated intangibles December 2019
(e.g. intellectual property, knowledge, relationships,
team work, trust, branding, reputation, technology, etc.)
and other value drivers.
Operations “Gate-to-gate”: covers activities over which the Natural Capital Planet, Core:
business has direct operational control, including Coalition et al, The – Land use and ecological
majority-owned subsidiaries. Natural Capital sensitivity
Protocol, 2016. – Water consumption and
withdrawal in water-
stressed areas
People, Core:
Risk for incidents of child,
forced or compulsory labour
Prosperity, Core:
Economic contribution
Other Indicator of diversity for which the organization gathers GRI Disclosure People, Core:
indicators of data. Examples of indicators of diversity can include 405-1 Glossary – Diversity & Inclusion
diversity age, ancestry and ethnic origin, citizenship, creed, – Pay equality
disability and gender.
People, Expanded: Pay Gap
number and rate of
employment
Recordable Work-related injury or ill health that results in any of the GRI 403-10 (2018) People, Expanded: Well-being
work-related following: death, days away from work, restricted work or Glossary
injury or ill transfer to another job, medical treatment beyond first aid,
health or loss of consciousness; or significant injury or ill health
diagnosed by a physician or other licensed healthcare
professional, even if it does not result in death, days
away from work, restricted work or job transfer, medical
treatment beyond first aid, or loss of consciousness
Remuneration Basic salary plus additional amounts paid to a worker. GRI: 102-35, Principles of Governance,
Glossary Expanded: Remuneration
Note: Examples of additional amounts paid to a worker
can include those based on years of service, bonuses
including cash and equity such as stocks and shares,
benefit payments, overtime, time owed and any
additional allowances, such as transportation, living and
childcare allowances.
Research & Research: US GAAP Prosperity, Core: Total R&D
Development Planned search or critical investigation aimed at definition ASC 730 expenses
discovery of new knowledge with the hope that such
knowledge will be useful in developing a new product
or service or a new process or technique or in bringing
about a significant improvement to an existing product
or process.
Development:
Development is the translation of research findings
or other knowledge into a plan or design for a new
product or process or for a significant improvement
to an existing product or process whether intended
for sale or use. It includes the conceptual formulation,
design and testing of product alternatives, construction
of prototypes and operation of pilot plants.
Scope 1 All direct GHG emissions. Direct GHG emissions occur The Greenhouse Planet, Core: Greenhouse Gas
from sources that are owned or controlled by the Gas Protocol, emissions
company, for example, emissions from combustion A Corporate
in owned or controlled boilers, furnaces, vehicles, Accounting
etc.; emissions from chemical production in owned or and Reporting
controlled process equipment. Standard (Revised
Edition), 2004.
Scope 2 All indirect GHG emissions from the consumption of The Greenhouse Planet, Core: Greenhouse Gas
purchased electricity, heat or steam. Scope 2 accounts Gas Protocol, emissions
for GHG emissions from the generation of purchased A Corporate
electricity consumed by the company. Purchased Accounting
electricity is defined as electricity that is purchased or and Reporting
otherwise brought into the organizational boundary of Standard (Revised
the company. Scope 2 emissions physically occur at Edition), 2004.
the facility where electricity is generated.
Scope 3 Scope 3 emissions are all indirect emissions that occur The Greenhouse Planet, Core: Greenhouse Gas
in the value chain of the reporting company, including Gas Protocol, emissions
both upstream and downstream emissions. Scope A Corporate
3 emissions are a consequence of the activities of Accounting
the company but occur from sources not owned or and Reporting
controlled by the company. Some examples of scope Standard (Revised
3 activities are extraction and production of purchased Edition), 2004.
materials; transportation of purchased fuels; and use of
sold products and services.
Sector Subdivision of an economy, society or sphere of GRI: Glossary Principles of Governance, Core:
activity, defined on the basis of some common Integrating risk and opportunity
characteristic. into business process
Note: Sector types can include classifications such

as the public or private sector and industry specific
categories such as the education, technology, or
financial sectors.
Senior Top ranking member of the management of an GRI: 102-35, Principles of Governance,
executive organization that includes a Chief Executive Officer Glossary Expanded: Remuneration
(CEO) and individuals reporting directly to the CEO or
the highest governance body.
Note: Each organization defines which members of its

management teams are senior executives.
Share As referenced in IAS 7 – Cash payments to owners to IAS 7 Statement Prosperity, Core: Financial
buybacks acquire or redeem the entity’s shares. of Cash Flows investment contribution
and ASC 230
As referenced in ASC 230 – Payments of dividends Statement of Cash
or other distributions to owners, including outlays to Flows
reacquire the entity’s equity instruments.
Single-use Single-use plastic products, often also referred to as The European Planet, Expanded: Single-use
plastics disposable plastics products, are products made wholly Parliament and plastics
or partly from plastic and are not conceived, designed The Council of
or placed on the market to accomplish, within their The European
lifespan, multiple trips or rotations by being returned to Union, Directive
a producer for refill or re-used for the same purpose for (EU) 2019/904
which they were conceived. on the reduction
of the impact of
Notable examples include plastic packaging, cups for certain plastic
beverages, food containers, lids, cutlery, plates, straws, products on the
bags, tobacco filters and disposable face masks. environment, 2019
Skill, skill Skill – defined as the ability to carry out the tasks ILO Convention, People, Expanded: Number of
set and skill duties of a given job – has, for the purposes of ISCO-88 ISCO-88 unfilled skilled positions
specialization the two following dimensions: (conceptual
framework)
– Skill level – which is a function of the complexity
range of the tasks and duties involved; and
– Skill specialization – defined by the field of
knowledge required, the tools and machinery used,
the materials worked on or with, as well as the kinds
of goods and services produced.
The above-mentioned definition is adopted/referenced
from ILO. However, the organizations can use the
definition for “skilled” in the region they operate-in.
Social/societal Estimated as the net present value of climate change Organisation for Planet, Expanded: Impact of
cost of carbon impacts over the next 100 years (or longer) of one Economic Co- greenhouse gas emissions
additional tonne of carbon emitted to the atmosphere operation and
today. It is the marginal global damage costs of carbon Development
emissions. (OECD), Paul
Watkiss, The
Social Cost of
Carbon, 2005.
Stakeholder Entity or individual that can reasonably be expected to GRI: 102-21, Principles of Governance, Core:
be significantly affected by the reporting organization’s 102-43, 102-47, – Setting Purpose
activities, products and services, or whose actions 102-22, 205-3, – Governance body
can reasonably be expected to affect the ability of the Glossary composition
organization to successfully implement its strategies – Anti-corruption
and achieve its objectives. – Material issues impacting
stakeholders
Note 1: Stakeholders include entities or individuals
whose rights under law or international conventions
provide them with legitimate claims vis-à-vis the
organization.
Note 2: Stakeholders can include those who are

invested in the organization (such as employees
and shareholders), as well as those who have other
relationships to the organization (such as other workers
who are not employees, suppliers, vulnerable groups,
local communities and NGOs or other civil society
organizations, among others).
Supplier Organization or person that provides a product or GRI 408-1 People, Core: Risk for incidents
service used in the supply chain of the reporting Glossary of child, forced or compulsory
organization. labour
Note 1: A supplier is further characterized by a genuine People, Expanded: Human

direct or indirect commercial relationship with the rights review, grievance impact
organization. & modern slavery
Note 2: Examples of suppliers can include, but are

not limited to: brokers, consultants, contractors,
Distributors, Franchisees or licensees, Home workers,
Independent contractors, Manufacturers, primary
Producers, Sub-contractors, wholesalers.
Termination All payments made and benefits given to a departing GRI: 102-35, Principles of Governance,
payment executive or member of the highest governance body Glossary Expanded: Remuneration
whose appointment is terminated.
Note: Termination payments extend beyond monetary

payments to the giving of property and the automatic
or accelerated vesting of incentives given in connection
with a person’s departure from office.
Topic Economic, environmental or social subject. GRI: 102-21, Principles of Governance, Core:
102-22, 102-35, – Governance body
Note 1: In the GRI Standards, topics are grouped 102-47, Glossary composition
according to the three dimensions of sustainable – Material issues impacting
development: economic, environmental and social. stakeholders
Note 2: To prepare a report in accordance with the GRI Principles of Governance,
Standards, an organization is required to report on its Expanded: Remuneration
material topics.
Training Training refers to: GRI 404-1 People, Core: Training Provided
– All types of vocational training and instruction Guidance
People, Expanded: Monetized
– Paid educational leave provided by an organization
Impacts of Training
for its employees
– Training or education pursued externally paid for in
whole or in part by an organization
– Training on specific topics, reskilling of employees
as per market requirements
Training does not include on-site coaching by supervisors.
Under- Population that, relative to its numbers in a given GRI: 102-22, Principles of Governance, Core:
represented society, has less opportunity to express its economic, Glossary Governance body composition
social group social, or political needs and views.
Unfilled If a skilled position is vacant for a period of 90 days and Expert judgement People, Expanded: Number of
positions above, then it is considered to be “unfilled”. unfilled skilled positions
Upstream “Cradle-to-gate”: covers the activities of all direct and Adapted from Planet, Core:
indirect suppliers, including production and extraction Natural Capital – Greenhouse Gas emissions
of raw materials and provision of energy. Coalition et al., The – Water consumption
Natural Capital and withdrawal in water
Protocol, 2016. stressed areas
Value chain The full value chain includes upstream, direct Natural Capital Planet, Core:
operations and downstream: Coalition et al., Water consumption and
The Natural withdrawal in water-stressed
Upstream (cradle-to-gate): covers the activities of all Capital Protocol, areas
direct and indirect suppliers, including production and 2016.
extraction of raw materials and provision of energy. Planet, Expanded:
– Impact of greenhouse gas
Direct operations (gate-to-gate): covers activities over emissions
which the business has direct operational control, – Impact of freshwater
including majority-owned subsidiaries. consumption and withdrawal
– Nutrients
Downstream (gate-to-grave): covers activities linked to – Impact of water pollution
the purchase, use, reuse, recovery, recycling and final – Impact of land use and
disposal of the business’ products and services. conversion
– Air pollution
– Impact of air pollution
– Single use plastics
– Impact of solid waste disposal
Water Water consumption is defined as: Water that SASB (CG-HP- Planet, Core:
consumption evaporates during withdrawal, usage and discharge; 140a.1.) Water consumption and
Water that is directly or indirectly incorporated into withdrawal in water-stressed
the entity’s product or service; Water that does not areas
otherwise return to the same catchment area from
Planet, Expanded:
which it was withdrawn, such as water returned to
Impact of freshwater
another catchment area or the sea.
consumption and withdrawal
Water Sum of all water drawn from all sources including SASB (CG-HP- Planet, Core:
withdrawal surface water (including water from wetlands, rivers, 140a.1.) Water Consumption and
lakes and oceans), groundwater, rainwater collected withdrawal in water-stressed
directly and stored by the entity, and water and areas
wastewater obtained from municipal water supplies,
water utilities, or other entities.
Worker Person who performs work. GRI 403-9 (2018) People, Core: Health & Safety
Glossary People, Expanded: Well-being
Note 1: The term “workers” includes, but is not limited
to, employees.
Note 2: Further examples of workers include interns,
apprentices, self-employed persons and persons
working for organizations other than the reporting
organization, e.g. for suppliers
Work-related Negative impacts on health arising from exposure to GRI 403-9 (2018), People, Core: Health & safety
injury or ill hazards at work. Glossary
health
Note 1: This definition is based on the International
Labour Organization (ILO), Guidelines on Occupational
Safety and Health Management Systems, ILO-OSH
2001, 2001.
Note 2: “Ill health” indicates damage to health and
includes diseases, illnesses and disorders. The terms
“disease”, “illness” and “disorder” are often used
interchangeably and refer to conditions with specific
symptoms and diagnoses.
Note 3: Work-related injuries and ill health are those
that arise from exposure to hazards at work. Other
types of incident can occur that are not connected with
the work itself. For example, the following incidents are
not considered to be work related:
– A worker suffers a heart attack while at work that is
unconnected with work;
– A worker driving to or from work is injured in a car
accident (where driving is not part of the work and
where the transport has not been organized by the
employer);
– A worker with epilepsy has a seizure at work that is
unconnected with work.
Note 4: Traveling for work: Injuries and ill health that
occur while a worker is traveling are work related
if, at the time of the injury or ill health, the worker
was engaged in work activities “in the interest of the
employer”. Examples of such activities include traveling
to and from customer contacts; conducting job tasks;
and entertaining or being entertained to transact,
discuss, or promote business (at the direction of the
employer).
Working at home: Injuries and ill health that occur
when working at home are work related if the injury or
ill health occurs while the worker is performing work
at home and the injury or ill health is directly related to
the performance of work rather than the general home
environment or setting.
Mental illness: A mental illness is considered to be
work related if it has been notified voluntarily by the
worker and is supported by an opinion from a licensed
healthcare professional with appropriate training and
experience stating that the illness is work related.
Endnotes
1. “Toward Common Metrics and Consistent Reporting of Sustainable Value Creation”, Consultation Draft, World Economic
Forum, January 2020, https://www.weforum.org/whitepapers/toward-common-metrics-and-consistent-reporting-of-
sustainable-value-creation
2. CDP, CDSB, GRI, IIRC and SASB, “Statement of Intent to Work Together Towards Comprehensive Corporate Reporting”,
September 2020, https://29kjwb3armds2g3gi4lq2sx1-wpengine.netdna-ssl.com/wp-content/uploads/Statement-of-
Intent-to-Work-Together-Towards-Comprehensive-Corporate-Reporting.pdf
3. “The Compact for Responsive and Responsible Leadership”, World Economic Forum, 2016, http://www3.weforum.org/
docs/Media/AM17/The_Compact_for_Responsive_and_Responsible_Leadership_09.01.2017.pdf.
4. “Transforming our world: the 2030 Agenda for Sustainable Development”, United Nations, 2015, https://
sustainabledevelopment.un.org/post2015/transformingourworld/publication
5. The four pillars were developed by the World Economic Forum in discussion with Deloitte, EY, KPMG and PwC. Definition
for Governance developed by Deloitte. Definitions for Planet, People and Prosperity taken from “Transforming our world:
the 2030 Agenda for Sustainable Development”, United Nations, 2015.
6. “Edelman Trust Barometer 2020”. Edelman, https://www.edelman.com/sites/g/files/aatuss191/files/2020‑01/2020%20
Edelman%20Trust%20Barometer%20Global%20Report.pdf
7. “The Deloitte Global Millennial Survey 2020”. Deloitte, 2020. https://www2.deloitte.com/global/en/pages/about‑deloitte/
articles/millennialsurvey.html
8. Colin Mayer, et al., “Principles for Purposeful Business”. The British Academy, 2019. https://www.thebritishacademy.
ac.uk/publications/future‑of‑the‑corporation‑principles‑for‑purposeful‑business
9. Klaus Schwab, “Davos Manifesto 2020: The Universal Purpose of a Company in the Fourth Industrial
Revolution”. World Economic Forum, December 2019. https://www.weforum.org/agenda/2019/12/
davos‑manifesto‑2020‑the‑universal‑purpose‑of‑a‑company‑in‑the‑fourth‑industrial‑revolution/
10. “Statement on the Purpose of a Corporation”. Business Roundtable, August 2019. https://opportunity.businessroundtable.
org/wp-content/uploads/2020/08/BRT-Statement-on-the-Purpose-of-a-Corporation-August-2020-1.pdf
11. See for example “Pursuing Purpose‑led Business: An Introduction”, Deloitte, Winter 2019‑20, (url)
12. Jeffrey A. Sonnenfeld, “What Makes Great Boards Great”. Harvard Business Review, September 2002. https://hbr.
org/2002/09/what‑makes‑great‑boards‑great
13. Jack Springman, “Implementing a Stakeholder Strategy”. Harvard Business Review, July 2011. https://hbr.org/2011/07/
implementing‑a‑stakeholder‑str
14. Jeffrey Hollender, “How can we know if a company is good if we don’t know what they’re
lobbying for?” Fast Company, July 15, 2019. https://www.fastcompany.com/90375948/
how‑can‑we‑know‑if‑a‑company‑is‑good‑if‑we‑dont‑know‑what‑theyre‑lobbying‑for
15. Richard Samans and Jane Nelson, “Integrated Corporate Governance: A Practical Guide to Stakeholder Capitalism for
Boards of Directors”. World Economic Forum, June 2020. http://www3.weforum.org/docs/WEF_Integrated_Corporate_
Governance_2020.pdf
16. Natural Capital Coalition et al, The Natural Capital Protocol, 2016. https://naturalcapitalcoalition.org/
natural‑capital‑protocol/
17. International Standards Organisation, ISO 14008 Monetary valuation of environmental impacts and related environmental
aspects, 2019. https://www.iso.org/standard/43243.html
18. Value Balancing Alliance. https://www.value‑balancing.com/
19. World Economic Forum and PwC, Nature Risk Rising, 2020 https://www.weforum.org/reports/
nature‑risk‑rising‑why‑the‑crisis‑engulfing‑nature‑matters‑for‑business‑and‑the‑economy
20. Steffen et al. 2015. Planetary Boundaries: Guiding human development on a changing planet. Science Vol. 347 no.
6223 https://www.stockholmresilience.org/research/planetary‑boundaries/planetary‑boundaries/about‑the‑research/
the‑nine‑planetary‑boundaries.html
21. Ibid.
22. Social & Human Capital Coalition and Capitals Coalition (2019). The Social & Human Capital Protocol. https://
capitalscoalition.org/
23. UN General Assembly (1948). Universal Declaration of Human Rights. http://www.un.org/en/
universal‑declaration‑human‑rights
24. World Economic Forum (2018). The Future of Jobs Report 2018. https://www.weforum.org/reports/
the‑future‑of‑jobs‑report‑2018
25. Salesforce (2018). The Impact of Equality and Values Driven Business. https://www.salesforce.com/contents/
impact‑of‑equality/
26. UK government reporting guidance on Gender Pay Gap. https://www.gov.uk/guidance/
gender‑pay‑gap‑reporting‑overview
27. OECD (2004). Improving Skills for More and Better Jobs: Does Training Make a Difference? https://www.oecd.org/
employment/emp/34846890.pdf
28. OECD (2019). Getting Skills Right: Future-Ready Adult Learning Systems. https://www.oecd‑ilibrary.org/
sites/9789264311756‑en/index.html?itemId=/content/publication/9789264311756‑en
29. Peter Baker, WBCSD
30. “Global regulatory body to harmonise ‘plethora’ of ESG standards”, Financial Times, September 7 2020.
31. CDP, CDSB, GRI, IIRC and SASB, “Statement of Intent to Work Together Towards Comprehensive Corporate
Reporting”, September 2020, https://29kjwb3armds2g3gi4lq2sx1-wpengine.netdna-ssl.com/wp-content/uploads/
Statement-of-Intent-to-Work-Together-Towards-Comprehensive-Corporate-Reporting.pdf
32. Michael Porter, George Serafeim, Mark Kramer, “Where ESG Fails”. Institutional Investor, October 2019. https://www.
institutionalinvestor.com/article/b1hm5ghqtxj9s7/Where-ESG-Fails
33. Marcus Noland, Tyler Moran and Barbara Kotschwar, “Is Gender Diversity Profitable? Evidence from a Global Survey”.
Peterson Institute for International Economics Working Paper, February 2016. https://www.piie.com/publications/
working-papers/gender-diversity-profitable-evidence-global-survey
34. Scott M. Stringer, “Best Practices in Board Matrices”. New York City Comptroller, August 2018. https://comptroller.nyc.
gov/wp-content/uploads/2018/08/NYC-Comptrollers-Office-Matrices-Compendium-8-2018-FINAL.pdf
35. See for example “Materiality Matrix”. Danone, 2019. https://www.danone.com/content/dam/danone-corp/danone-com/
rai/2019/pdf/materiality-matrix-2019-danone.pdf
36. “Business Climate Resilience: Thriving through the Transformation”. World Business Council for Sustainable
Development, September 2019. https://docs.wbcsd.org/2019/09/WBCSD_Business-Climate-Resilience.pdf
37. Richard Samans and Jane Nelson, “Integrated Corporate Governance: A Practical Guide to Stakeholder Capitalism for
Boards of Directors”. World Economic Forum, June 2020. http://www3.weforum.org/docs/WEF_Integrated_Corporate_
Governance_2020.pdf
38. TCFD-FSB Press Release, More than 1,000 Global Organizations Declare Support for the Task Force on Climate-
related Financial Disclosures and its Recommendations, February 2020, https://www.fsb-tcfd.org/wp-content/
uploads/2020/02/PR-TCFD-1000-Supporters_FINAL.pdf
39. Climate Disclosure Standards Board and Sustainability Accounting Standards Board, TCFD Implementation Guide, 2019,
https://www.cdsb.net/tcfd-implementation-guide
40. Climate Disclosure Standards Board and Sustainability Accounting Standards Board, TCFD Good Practice Handbook,
2019, https://www.cdsb.net/tcfd-good-practice-handbook
41. World Economic Forum in collaboration with PwC, How to Set Up Effective Climate Governance on Corporate Boards:
Guiding principles and questions, 2019, http://www3.weforum.org/docs/WEF_Creating_effective_climate_governance_
on_corporate_boards.pdf
42. Steffen et al. 2015. Planetary Boundaries: Guiding human development on a changing planet. Science Vol. 347 no.
6223, https://www.stockholmresilience.org/research/planetary-boundaries/planetary-boundaries/about-the-research/
the-nine-planetary-boundaries.html
43. WBCSD, Circular Transition Indicators V1.0 Metrics for business, by business, https://www.wbcsd.org/Programs/Circular-
Economy/Factor-10/Metrics-Measurement/Resources/Circular-Transition-Indicators-V1.0-Metrics-for-business-by-business
44. UK government reporting guidance on Gender Pay Gap. https://www.gov.uk/guidance/gender-pay-gap-reporting-overview
45. MIT living wage calculator: https://livingwage.mit.edu/
46. Living wage foundation calculation: https://www.livingwage.org.uk/sites/default/files/Living-wage-calculation-2019-20.pdf
47. OECD (2004). Improving Skills for More and Better Jobs: Does Training Make a Difference? https://www.oecd.org/
employment/emp/34846890.pdf
48. OECD (2019). Getting Skills Right: Future-Ready Adult Learning Systems. https://www.oecd-ilibrary.org/
sites/9789264311756-en/index.html?itemId=/content/publication/9789264311756-en
49. https://www.accountingcoach.com/blog/acrrual-basis-accounting
50. US GAAP ASC 230 Statement of Cash Flows (2016)
51. International Accounting Standard 7 (2017)
52. GRI 203: Indirect Economic Impacts 2016
53. GRI 203: Indirect Economic Impacts 2016 (p. 6)
54. SASB FN0102‑16a; GRI FiFS7 + FiFS8
55. Forbes (2016), “R&D: One of The Driving Factors Behind 3M’s Growth” https://www.forbes.com/sites/
greatspeculations/2016/12/20/rd-one-of-the-driving-factors-behind-3ms-growth/
56. Embankment Project, EPIC Report, 2018, p. 55.
57. CECP (2018), “What Counts: the S in ESG, New Conclusions” https://cecp.co/wp-content/uploads/2018/04/CECP_
SinESG_2_digital_full.pdf
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Measuring Stakeholder Capitalism

5 Introduction and summary 48 Introduction

11 Approach 48 Pillar 1 – Principles of Governance

40 How our work fits into the wider ecosystem

© 2020 World Economic Forum. All rights

As the UK works in partnership with Italy towards hosting the

Theme Governance: Core metrics and disclosures Sources

Governing Setting purpose The British Academy

Ethical Anti-corruption GRI 205-2,

1. Seeking advice about ethical and lawful behaviour and

Estimate and report material upstream and downstream (GHG

Theme People: Core metrics and disclosures Sources

Pay equality (%) Adapted from GRI

Risk for incidents of child, forced or compulsory labour GRI 408-1b,

a) type of operation (such as manufacturing plant) and type of

An explanation of how the organization facilitates workers’ access

Skills for the Training provided (#, $) GRI 404-1,

Average training and development expenditure per full time

Theme Prosperity: Core metrics and disclosures Sources

Financial investment contribution As referenced in IAS

The four pillars

FIGURE 2 The four pillars

Principles of Planet People Prosperity

The definition of An ambition to protect An ambition to end An ambition to ensure

2.1 Application of recommended metrics

FIGURE 3 Dynamic materiality

To various users with

Source: Statement of Intent

Direction of travel from core to expanded metrics

Framework developers: 2 IBC corporates : 60

Other coalitions & initiatives: 9

3.2 Summary of feedback and key changes

Meanwhile, traditional governance principles of

Governing purpose The individuals and structures employed in

Ethical behaviour Data stewardship is also a critical area. As outlined by

Theme Governance: Core metrics and disclosures Sources

Governing Setting purpose The British Academy

Ethical Anti-corruption GRI 205-2,

1. Seeking advice about ethical and lawful behaviour and

Theme Governance: Expanded metrics and disclosures Sources

Governing Purpose‑led management GRI 102‑26

Guidance on corporate reporting for established

Theme Planet: Core metrics and disclosures Sources

TA B L E Planet: Expanded metrics and disclosures

Theme Planet: Expanded metrics and disclosures Sources

Climate Paris‑aligned GHG emissions targets Science Based

If an alternative approach is taken, disclose the methodology used

Wherever possible estimate the proportion of specified emissions

Planet: Water Nutrients SASB CN0101‑11

Disclose the most significant applications of single‑use plastic

Disclose the methodological approach used to calculate the chosen

TA B L E People: Core metrics and disclosures

Theme People: Core metrics and disclosures Sources

a) type of operation (such as manufacturing plant) and type of

Average training and development expenditure per full time

TA B L E People: Expanded metrics and disclosures

Theme People: Expanded metrics and disclosures Sources

Monetized impacts of training – Increased earning capacity as a Adapted from OECD,