COMMUNICATE:

 

Information on how to: determine gaps between company practices and best practices, conduct a materiality assessment for key stakeholder groups, and publicly report on progress

Action:

Publicly track and report information on supply chains

STEP 1:
Determine gaps between company practices and best practices

BUYER & EMPLOYER STEPS:

  • Assess international frameworks for human and labor rights, social responsibility best practices, and legal compliance to inform strategy for tracking and reporting.

supporting guidance
STEP 2:
Conduct a materiality assessment for key stakeholder groups

BUYER & EMPLOYER STEPS:

  • Identify stakeholder groups that have a fundamental impact on business operations and financial profit and loss.

    • Examples of stakeholder groups include: employees, workers in supply chains, consumers, financial institutions and investors, insurance providers, supply chain partners (e.g. suppliers, brokers, importers), government oversight organizations, and environmental and human and labor rights NGOs.

  • Conduct a materiality assessment to identify the environmental, social and governance (ESG) issues that are most meaningful for stakeholder groups.

supporting guidance

Defining materiality assessments

A materiality assessment is a corporate social responsibility strategy aimed at identifying the environmental, social, and governance (ESG) issues that are most important to specific stakeholder groups (workers, consumers, and investors).

 

“Organizations are faced with a wide range of topics on which they could report. Relevant topics are those that may reasonably be considered important for reflecting the organization’s economic, environmental and social impacts, or influencing the decisions of stakeholders, and, therefore, potentially merit inclusion in the report. Materiality is the threshold at which aspects become sufficiently important that they should be reported.” Global Reporting Initiative

 

Steps to conducting a materiality assessment:

 

1. Identify internal and external stakeholders

2. Conduct initial stakeholder outreach to encourage survey participation

3. Identify and prioritize what you want to measure

4. Design your materiality survey

5. Launch your survey and start collecting insights

6. Analyze those insights

7. Put insights into action

Source: Antea Group: 7 Basic Steps for Conducting a Successful Materiality Assessment

Supporting Resources:

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STEP 3:
Publicly report on progress

BUYER & EMPLOYER STEPS:

  • Provide key stakeholder groups with the rationale for specific social responsibility priorities based on the results of the materiality assessment.

  • Establish baselines and set goals with clear timelines for improvement.

    • Be transparent and honest.

    • Provide real-life examples and create case studies when possible.

  • Report on progress against both the baseline and the goal annually.