(1.65 points)
Intent
The intent of this indicator is to assess the entity’s process to monitor and communicate about ESG-related misconduct, penalties, incidents, accidents, breaches against the codes of conduct/ethics. The entity’s external communication process is one aspect of management controls necessary to provide investors with transparency about regulatory risks and liabilities. Recurring ESG-related misconduct, penalties, incidents or accidents can increase the risk profile of the entity as they can translate into reputational, compliance, and financial risks.
Requirements
Select Yes or No: If selecting Yes, select applicable sub-options.
Does the entity have a process to monitor and communicate ESG-related misconduct, penalties, incidents, accidents or breaches against the codes of conduct/ethics?
- Yes
- The process includes external communication of misconduct, penalties, incidents or accidents to (multiple answers possible):
- Clients/customers
- Community/public
- Contractors
- Employees
- Investors/shareholders
- Regulators/government
- Special interest groups
- Suppliers
- Other stakeholders
- Describe the communication process (for reporting purposes only) (maximum 250 words)
- The process includes external communication of misconduct, penalties, incidents or accidents to (multiple answers possible):
- No
- Provide additional context for the answer provided (not validated, for reporting purposes only)
________________________
- Provide additional context for the answer provided (not validated, for reporting purposes only)
Changes 2020: Introduced new checkboxes for who the monitoring and communication process applies to.
Validation
Other: Other answer must be outside the options listed in the indicator to be valid. State an external stakeholder group.
Scoring
This indicator is scored as a One Section Indicator. Evidence is not required. Fractional points are awarded based on the different selections of external stakeholders.
Other: Any ‘other’ answer provided will be manually validated and must be accepted before achieving the respective fractional score. If multiple ‘other’ answers are listed, more than one may be accepted in manual validation, but only one will be counted towards the score.
Diminishing Increase in Score approach: As indicated by the blue line, some elements of this indicator are scored based on a Diminishing Increase in Score approach, per additional checkbox selected.
Open Text Box The open text box is not scored and is for reporting purposes only.
The content of this open text box is not used for scoring, but will be included in the Benchmark Report. Participants should use this open text box to communicate on the process the reporting entity intends to follow in order to monitor and communicate any ESG-related misconducts to its stakeholders.
Terminology
Accident: An unplanned, undesired event that results in damage or injury.
Codes of conduct/ethics: An agreement on rules of behaviour for the employees of the entity.
Controversy: A prolonged public disagreement or heated discussion.
ESG fines and/or penalties: Sanctions resulting from an illegal act or non-compliant behavior, which directly harms the environment and/or stakeholders of the entity.
Incident: An unplanned, undesired event with actual or potential adverse impacts.
Misconduct: Unacceptable or improper behaviour, especially by an employee or organization.
Penalty: A punishment imposed for breaking a law, rule, or contract.
Special interest groups: Organization with a shared interest or characteristic (e.g. trade unions, non-governmental organizations).
References
PRI Reporting Framework 2018, Direct Infrastructure Supplement, INF 19
(Partially aligned with)
Global Reporting Initiative, GRI 102-17: General Disclosures, 2016
Recommendations of the Task Force on Climate-Related Financial Disclosures, Governance A&B, 2017
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