Economic performance indicators

From the project record

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Part 2: Standard Disclosures

Economic Performance Indicators

The economic dimension of sustainability concerns the organization’s impacts on the economic conditions of its stakeholders and on economic systems at the local, national and global levels. The economic indicators illustrate:

• flow of capital amongst different stakeholders
• main economic impacts of the company throughout society.

An organization’s own financial performance is fundamental to understanding an organization and its basis for sustainability. However, this information is normally already reported in organizations’ financial accounts. What is often reported less and is frequently desired by users of sustainability reports is the organization’s contribution to the sustainability of a larger economic system, not just of the organization itself.

Disclosure on Management Approach
Provide a concise disclosure on the following items with reference to the following aspects:

1. Economic performance
2. Market presence
3. Indirect economic impacts

Policy
State any brief, organization-wide policy (or policies) that define the organization’s overall commitment on the areas listed above or state where this can be found in the public domain (e.g. web link).

Responsibility
Identify the most senior position with operational responsibility for economic areas or explain how operational responsibility is divided at the senior level for economic areas.

Management
Identify key elements of management approach, including certifications for economics-related systems obtained from outside parties. Indicate percentage of operations covered by certifications.

Goals & Performance
List organization-wide goals set regarding performance against the economic aspects listed above.  

Report performance against goals. Use company-specific indicators as needed in addition to the GRI performance indicators.

Awards
Identify relevant awards related to performance on economic issues that the organization has received from external parties.

Fines
Indicate the total amount and number of economics-related civil and criminal fines and other penalties (including imprisonment) assessed against the organization or its directors and officers when in their organizational capacity.  Explain what response has been taken to resolve any issue for which significant fines were paid or for which organization’s directors or officers were imprisoned.

Context
Disclose other relevant information required for stakeholders using the report to understand organizational performance, including:

• Key successes and shortcomings;
• Major organizational risks and opportunities related economic issues; and
• Major changes in the reporting period to systems or structures to improve performance

Economic Performance Indicators 

Aspect: Economic Performance
EC1. Economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and to governments (core)
EC2. Financial implications of climate change (core)
EC3. Coverage of the organization’s defined benefit pension plan obligations   (core)
EC4. Financial assistance received from government (core)

Aspect: Market Presence
EC5. Entry level wage compared to local minimum wage for significant locations of operation (core)
EC6. Practices and proportion of spending on locally-based suppliers at significant locations of operation (core)
EC7. Procedures for local hiring, and proportion of senior management in locations of significant operation from the local community” (core)

Aspect: Indirect Economic Impacts
EC8. Description of infrastructure investments and services supported that provide public benefit (core)
EC9. Indirect economic impacts (additional)

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