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Communication on Progress

Elena PanovaUN Global Compact Network

Bulgaria

04/21/23

What is a Communication on Progress (COP)?

• a communication to stakeholders (consumers, employees, labour organizations, shareholders, media, government) on the progress the company has made in implementing the ten Global Compact principles in its business activities.

• a tool to exercise leadership, facilitate learning, stimulate dialogue, and promote action.

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What does a COP achieve?

• Ensure and deepen the commitment of Global Compact participants

• Safeguard the integrity of the initiative• Create a rich repository of corporate practices

that serves as a basis for continuous performance improvement

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What is in it for companies: internal benefits

•Enhances leadership commitment by CEO and senior management involvement through reviewing and endorsing the report

•Supports efforts to identify business risks and opportunities•Internal sharing and learning due to connecting numerous

departments (e.g. strategy, human resources, communications, environment, health and safety, operations, community relations)

The best incentive is improved performance

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What is in it for companies: external benefits

• Better reputation thanks to increased transparency and creation of trust

• Enhances stakeholder relations by articulating a sustainable vision, strategy and implementation

• Promotes learning by collaboration with external stakeholders

• $$$ - tap into socially responsible investment funds or indexes

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COP submittedwithin 2 years of join date

COP submittedcompany re-instated

COP not submittedwithin 2 years of join date.Company listed as non-communicating

Company inactive (de-listed)1 year after classifiedas Non Communicating

Next COP due in 1 year

Company joins Global Compact

COP submitted N/C flag removed

COP Policy -Timeframe

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COP submittedwithin 2 years of join date

COP submittedcompany re-instated

COP not submittedwithin 2 years of join date.Company listed as non-communicating

Company inactive (de- listed)1 year after classifiedas Non Communicating

Next COP due in 1 year

Company joins Global Compact

COP submittedcompany listed as active

COP Policy -Timeframe

Grace Period

A 45 day grace period will be granted to companies that contact the Global

Contact Office and request an extension.

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What active, inactive & non-communicating actually means

Listed on website as active

Invited to GC events

Can use GC logo

Active Member

Non-communicating

Inactive

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What do you need to do to fulfill the COP requirement?

Step 1) Create an annual Communication on Progress

Step 2) Share the COP with the company’s stakeholders

Step 3) Submit the COP to the Global Compact website

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Step 1) Creating an annual Communication on Progress

While there is no single structure for the creation of a COP, a COP must include:

Element 1: A statement of continuing support

Element 2: Description of practical actions: commitments made, systems implemented and actions taken

Element 3: Measurement of outcomes: use of the GRI G3 Guidelines is recommended

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Element 1: A statement of continuing support

The company statement should be in a message from the Chief Executive Officer or other senior executive. The statement of support must come from a senior representative. This signifies that the Global Compact is considered a commitment deserving of the highest level of attention.

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Element 2: Description of practical actions

1. Company commitment to every principle: what is your policy? A statement of specific commitments to universal values, principles, standards.

2. Company policies, programmes and management systems: a description of management systems, documents, regulations, policies, committees, and other programmes targeted at your staff, suppliers and local community

3. Company practical actions, i.e. concrete activities that were undertaken: a description of practical actions taken to implement the programmes and documents you mentioned; what are the forms, who are the participants?

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Element 3: Measurement of outcomes

• Quantitative performance measures are preferred• Using, as much as possible, standard indicators or metrics such as those elaborated in the GRI G3 Guidelines• Targets are an acceptable means of expressing expected outcomes • If voluntary steps were taken to independently assure the information provided in the COP, the company should provide details on how this was accomplished

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Step 2 ) Sharing the COP with the company’s stakeholders

• COP is not a communication with the United Nations Global Compact Office

• Ideally, COPs should be integrated into a company’s existing

communication with stakeholders, such as an annual financial or sustainability report

• COP distribution channels - websites, press releases, official statements, company notices - where employees, shareholders, customers and other stakeholders expect to read about the company’s major economic, social and envi ronmental engagements.

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Step 3) Posting the COP at the Global Compact website

In addition to sharing the COP with stakeholders, companies are expected to post an electronic version (and web link if available) of their COP on the Global Compact website.

Instructions available at: http://www.unglobalcompact.org/docs/

communication_on_progress/4.3/COP_posting_doc_eng.pdf

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Review the ten principles closely in order to understand the connections that exist between the principles and the companies’ vision / strategy.

The COP should be created in the language which is most appropriate for the companies’ stakeholders.

There is no expectation that all ten principles will be covered in every COP nor that all ten principles addressed to the same extent.

COP’s volume is not of significance, even 2-3 pages are acceptable.

Move away from generic statements (e.g., “we have a training program for suppliers”) to more specific descriptions (e.g., “we trained 50 suppliers on how to improve their spill response performance”).

Hints and Tips

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Global Guidance Documents:

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Local Guidance Document

COP Practical Guide developed by the GC Ukraine network available at:In English: http://www.globalcompact.org.ua/rcenter/resources/31

COP Guidelines developed by the GC Bulgaria network available at:In English: http://www.unglobalcompact.bg/index.php?p=comunication