Social and

environmental
reporting
 Sustainability Reporting

• A report about economic , environmental &

social impacts caused by an organization
through its everyday activities

• Sustainability reporting is the practice of

measuring, disclosing, and being
accountable to internal and external
stakeholders for organizational performance
towards the goal of sustainable
development.– Global Reporting Initiative
(GRI)
 Why sustainability reporting?
• Stakeholders (who may include
investors, customers, employees,
Comparing
suppliers, NGOs, local communities, etc.)
are now more aware of the impact that
businesses have on the economy,
environment and society. This impact Demons
may be positive or negative. trating

• Sustainability-related issues, therefore, Benchmarking

can significantly affect an organisation’s Assessing
risk profile, potential liabilities and its
value.
 Benefits of sustainability reporting
• Promoting innovation and attracting new customer
• Enhancing Brand value and reputation
• Maintaining a license to operate
• Securing Capital
• Improving productivity and cost optimization
 Sustainability Report: Who will prepare?
Companies and organizations of all types, sizes and sectors, from every corner of the
world may prepare substantiality reports.
 Global Reporting Initiatives
GRI is a nonprofit organization which suggests other organizations to adopt sustainability
reporting to contribute in sustainable development. A sustainable economy should combine
long-term profitability with ethical behavior, social justice and environmental care. It means
when organizations consider sustainability and operates it, they must consider four key
areas:
1.economic
2.environmental
3.social
4.governance
 Structure of GRI
• GRI is a global nonprofit organization incorporating a networked structure and a
Collaboration Centre of the United Nations Environment Program (UNEP).
• It’s Board of Directors have the ultimate responsibility for it.
 Scope of the work of GRI
• GRI is open for all individuals and organizations with an interest of sustainability reporting.
• The collaborative network includes with:
→ corporations,
→ governmental & non-governmental organizations,
→ consultancies,
→ accountancy organizations,
→ business associations,
→ rating agencies,
→ universities and
→ research institutes.
 Principles of defining GRI report
✓ Reliability

✓ Clarity

✓Balance

✓ Comparability

✓ Accuracy

✓Timeliness
 Sustainability Reporting Guideline under GRI

• Reporting Principles and Standard Disclosures

• Implementation Manual
 Traditional Accounting system
✓ In broad sense, accounting denotes certain theories, measurement rules and procedures
for collecting and reporting useful information concerning the activities and objectives of
an organization.
✓ In general terms, accounting is classification, analysis, and interpretation of the financial,
or book keeping records of an enterprise.
✓ publication of financial statements, such as income statements/profit and loss accounts,
balance sheets, cash flow statements, and value added statements.
✓ The major segments of financial accounting in Bangladesh are: private sector accounting,
public sector accounting, non-government organization accounting, and government
accounting.
✓ The International Accounting Standards (IAS) as adopted by the Institute of Chartered
Accountants of Bangladesh, are known as Bangladesh Accounting Standards (BAS).
 Criteria to be applied by an organization to
prepare its sustainability report
In accordance' with the guidelines the 'Core’ option and 'Comprehensive' option are
maintain.
➢The Core option contains the essential elements of a sustainability report. It
provides economic, environmental and social & governance performance.
➢ The Comprehensive option builds on the Core option by requiring additional
Standard Disclosures of the organization's strategy and analysis, governance, and
ethics and integrity.
 Transition to the G4 Guidelines from G3 and
G3.1:
• GRI recommends that first time reporting organizations use the G4 Guidelines,
even if they do not fulfill the requirements.
• GRI will continue to recognize reports based on the G3 and G3.1 guidelines up to
2015.
• However, reports published after 31 December 2015 should be prepared in
accordance with the G4 Guidelines.
 Main features of the G4 guidelines
The G4 Guidelines have increased user friendliness and accessibility. . Among many other features, key
enhancements in G4 include:
• Up-to-date disclosures on governance, ethics and integrity, supply chain, anti-corruption and GHG
emissions.
• Generic format for Disclosures on Management Approach (DMA).
• GRI Content Index offering a transparent format to communicate external assurance.
• Technically-reviewed content and clear disclosure requirements.
• Detailed guidance on how to select material topics, and explain the boundaries of where material
impacts occur.
• Flexibility to combine with local and regional reporting requirements and frameworks.
• Up-to-date harmonization and reference to all available and internationally accepted reporting.
• At last one medium ( web or paper) should provide users with access to the complete set of
information for the reporting period.
 GRI G4 guidelines: 10 Principles 2000
Business should-
P1. support and respect the protection of internationally proclaimed human rights
P2. make sure they are not complicit in human right abuses.
P3. uphold the freedom of association and the effective recognition of the right to collective bargaining.
P4. uphold the elimination of all forms of forced and compulsory labor
P5. uphold the effective abolition of child labor.
P6. uphold the elimination of discrimination in respect of employment and occupation.
P7. support a precautionary approach to environmental challenges.
P8. undertake initiatives to promote greater environmental responsibility.
P9. encourage the development and diffusion of environmentally friendly technologies.
P10. work against corruption in all its forms, including extortion and bribery.
 Sustainability Reporting and Bangladesh's
perspective

• Still in infancy stage

• Companies give more focus on social development engagement.
• Human rights, product responsibility and environmental issues are ignored
comparatively with the labor practices, employee benefits, training and education
issues.
The link between sustainability reporting and
financial reporting

➢ Compliments Financial reports with forward-looking information.

➢ It assesses the elements that emphasize in the company's competitive
advantage.
➢ Discloses known future uncertainties and trends that may materiality affect
financial performance.
➢ Shows an understanding of the external environment in which the company
conduct its business.
The major differences between sustainability
reporting and financial reporting
Elements Financial Reporting Sustainability Reporting

Time-scale The reported year Future orientation

Focus Issues that organization directly Wider sustainability impacts

controls
Economic view Material Intangible

Data Financial Non-financial

Materiality Financial Significance Any information that is significant

to readers
Users Shareholders and Investors Stakeholders
 CURRENT STATUS OF SUSTAINABLE REPORTING IN
DIFFERENT SECTOR OF BANGLADESH
Not-disclosing separate
Disclosing separate sustainability report in Annual
Total sustainability report in
Report
Number Annual Report
Year of listed Number of companies Percentage
compani Without According Without Number of
es According to Percentage
GRI to GRI GRI companies
GRI guideline
guideline guideline guideline
2011 40 0 5 0% 12.5% 35 87.5%
2012 40 1 (G-3) 6 2.5% 15% 33 82.5%
2013 40 2 (G-3 & 3.1) 7 5% 17.5% 31 77.5%
2014 40 2 (G- 3.1 &4) 7 5% 17.5% 31 77.5%
2015 40 3 (G-4) 11 7.5% 27.5% 26 65%
2016 40 1 (G-4) 12 2.5% 30% 27 67.5%
 APPLICATION OF GRI GUIDELINES IN DIFFERENT INDUSTRY OF
BANGLADESH
General standard disclosure according to GRI-(G-4) reporting framework:

General Standard Prime Bank Bank Asia Limited Social Islami Bank United Bank Asia Limited
Disclosure Limited 2014 2015 Limited 2015 Commercial Bank 2016
Limited 2015
Strategy & analysis Followed Followed Followed Followed Followed
Organizational Followed Followed Followed Followed Followed
profile
Identified material Followed Followed Not followed Followed Followed
aspects and
boundaries
Stakeholder Followed Followed Followed Followed Followed
engagement
Report profile Followed Followed Followed Followed Followed
Governance Followed Followed Followed Followed Followed
Ethics & integrity Followed Followed Followed Followed Followed
 APPLICATION OF GRI GUIDELINES IN DIFFERENT
INDUSTRY OF BANGLADESH
Specific standard disclosure according to GRI- G-4 reporting framework:
❖economic reporting
✓ economic performance and indirect economic impact, market presence, procurement
practices, green banking and compliance

❖environmental reporting
✓ energy, water, compliance, material and environmental grievance mechanism

❖social aspects
✓ labor practices and decent work, human rights, society and product responsibility
 APPLICATION OF GRI GUIDELINES IN DIFFERENT
INDUSTRY OF BANGLADESH
General standard disclosure according to GRI-(G-3/3.1) reporting framework:

General standard Prime Bank Limited- Bank Asia Limited- Bank Asia Limited- Bank Asia Limited-
Disclosure aspects 2013 GRI-(G-3.1) 2012 GRI- (G-3) 2013 GRI- (G-3.1) 2014 GRI-(GG3.1)

Strategy and analysis Followed Followed Followed Followed

Organizational profile Followed Followed Followed Followed
Report parameters Followed Followed Followed Followed
Governance, Followed Followed Followed Followed
commitments, and
engagement
 APPLICATION OF GRI GUIDELINES IN DIFFERENT
INDUSTRY OF BANGLADESH
Specific standard disclosure according to GRI (G-3/3.1) reporting framework:
• Environmental- Performance indicators
• Economic performance indicators
• labor practices and decent works
• product responsibility
• Community development
 Challenges for implementing sustainability reporting

• Assets versus costs

• Traditional accounting systems
• Short-term versus long-term
• Information not tracked adequately or not available
• Comparability of data
• Quantifying the qualitative
• Moving from costs to revenues
 Recommendations for the way forward Raising
Awareness
• Industry commitment
• Capacity Building
• Synchronization of Reporting Guideline with Local Organizations
• Government’s Initiative
• Civil Society
ANY QUESTION????