(New York) – The UN Global Compact has launched the Global Compact Differentiation Framework, a practical roadmap to help all companies in the Global Compact improve sustainability performance and disclosure and to give recognition for progress made.
Using the Communication on Progress (COP) as its platform, the Differentiation Framework features basic, intermediate and advanced performance levels:
- At the basic level, the Framework aims to help smaller and less experienced companies make progress in the implementation of the Global Compact principles, ensuring that the initiative remains inclusive of companies of all sizes, regions and industry sectors. For this purpose, the Global Compact Office is introducing a basic COP template and other resources to support companies in their efforts towards greater sustainability and in communicating progress in a way that fits their context of operation. More
- At the intermediate level, the framework recognizes companies that use the standard COP process, cover all Global Compact principles and communicate directly with stakeholders on progress made, using accepted standards of disclosure and transparency, such as the Global Reporting Initiative (GRI).
- At the advanced level, companies are asked to complete an online questionnaire covering the content of their COP and assessing their implementation of the Global Compact principles. At this stage, the Framework follows the Global Compact’s Blueprint for Corporate Sustainability Leadership and offers stakeholders a public resource to benchmark sustainability performance and disclosure against global best practices. More
“We believe that the Differentiation Framework will do much to better accommodate and recognize the unique contributions of companies of different sizes and experience, while improving transparency and enabling better assessment of sustainability performance,” said Georg Kell, Executive Director of the UN Global Compact.
The Framework’s introduction was approved by the Global Compact Board during its last meeting at the Global Compact Leaders Summit on 25 June.
The Framework will enter into a three-month test phase until the end of 2010. This will allow the Global Compact Office to refine the system based on participant experiences and a wider consultation with all relevant stakeholders, including the Global Compact Local Networks and the financial community.