The number and quality of Communications on Progress (COPs) continues to increase. Over 3,000 COPs reside in the Global Compact database for public vetting, as well as learning purposes. However, some companies still struggle to meet the communication requirement of Global Compact participation. This is a missed opportunity; the process of communicating progress can hold great value. Based on the input and experiences of participants and other key stakeholders, the Global Compact has identified practical ways that companies can maximize the value of the COP process, for example by improving the quality of COP content and taking steps to enhance the credibility of the report. Following are tips for creating the most value through a company’s COP:
Process Effectiveness
Look for Connections
Review the ten principles closely in order to understand the connections that exist between the principles and the company’s vision, strategy, polices, activities, and measurement and reporting systems already in place for current internal, government, investor or industry association reporting (e.g., your company’s annual report). To avoid duplication of effort and to minimize reporting fatigue, companies are encouraged to integrate their COP into other disclosures, such as annual or sustainability reports.
Content Quality
Be Complete
There is no expectation that all ten principles will be covered in initial COPs, nor all ten principles addressed to the same extent. Additionally, small companies are often not able to provide as much depth and breadth in their COPs as multinational companies. However, the information contained within a COP should be complete and accurate enough to assess and understand the organization’s performance in relationship to the ten principles and related issues.
Provide Context
A COP should put a company’s actions and indicators into context so that readers can make informed judgments on the company’s progress in implementing the Global Compact principles.
Ensure Relevance
COPs should contain all information necessary for a stakeholder to judge the sustainability performance of the company, as well as how the company has determined its priorities in regard to the principles. An effective way to determine relevance is through a stakeholder dialogue process (e.g., AA1000), or the “materiality” process described in the GRI G3 Guidelines.
Define Boundaries
Some companies specifically define the boundaries of their responsibility. This can be useful in managing stakeholder expectations and fostering dialogue about the boundaries, especially regarding subsidiaries and supply chains. For example, companies operating in developed nations should not simply reference their compliance with local laws governing issues related to the Global Compact principles (e.g., human rights). They should also demonstrate how the company is upholding these rights and/or making sure they are not violated.
Make Your COP Accessible
- Language: A COP should be created in the language(s) most appropriate for the company’s stakeholders.
- Structure: A COP needs to be structured in a way that clearly communicates the company’s progress in implementing the ten principles. Some companies achieve this through an index or table of contents that directs the reader to the page, policy, website or other source where they can find information relevant to the ten principles. Other companies find it effective to structure the COP around the the principles.
- Communication channels: A COP should be disseminated in ways that best reach relevant stakeholders.
