Management approach and performance indicators

From the project record

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Part 2: Standard Disclosures

Disclosures on Management Approach and Performance Indicators

The section on sustainability performance indicators is organized under the categories of economic, environment, and social. Social sustainability indicators are further categorized into labor, human rights, society, and product responsibility. Each category comprises a Disclosure on Management Approach (‘Management Approach’) and a corresponding set of core and additional performance indicators. Core indicators are those indicators that are of interest to most stakeholders and are assumed to be material unless demonstrated not to be on the basis of the GRI reporting principles. Additional indicators represent emerging practice or address issues that may be material in the context of specific organizations, but are not material for a majority.

The Disclosure(s) on Management Approach should provide a brief overview of the organization’s approach to the aspects defined under each category to set the context for the performance information. The organization can structure its Disclosures Management Approach to cover the full range of aspects under a given category or address aspects in groups. However, the disclosure should adequately address all the aspects associated with each category regardless of the format or grouping.

Disclosure items 1.1 and 1.2 on Strategy and Analysis (above) are intended to focus on risks and opportunities facing the organization as a whole. If the information that responds to any of items in a Disclosure on Management Approach would also be found in the Strategy and Analysis disclosures, or any other section of the report, it is not necessary to repeat it in the Management Approach, but may be useful for stakeholders using the report to do so.

In each category, the Management Approach is followed by specific performance indicators. Where final versions of Sector Supplements exist, the report should also review these as outlined in the Guidance on Defining Report Content. In reporting on the indicators, the organization should keep in mind the following guidance on data compilation:

• Information should be presented for the current reporting period (e.g., one year) and at least two previous periods, as well as future targets where they have been established for the short and medium term.
• Performance indicators are accompanied by technical protocols that provide basic guidance on interpreting and compiling information for the indicator. Organizations should use the protocols when reporting on the indicators;
• In some cases, ratios or normalized data are useful and appropriate formats for data presentation. If ratios or normalized data are used, absolute data should also be provided;
• Where final versions of Sector Supplements exist that are relevant to an organization, the indicators contained within are considered to be core indicators; and
• Reporting organizations should determine the appropriate level of aggregation of information. See additional guidance in Part 3 of the Guidelines.

Pillars of sustainability
Sustainability performance can be divided into three domains: economic, social and environmental. These domains provide the organizing principle for the indicators, though these categories are highly interrelated and other organizing schemes are possible.

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