GRI 406: NON­- DISCRIMINATION 2016 GRI 406 Contents Introduction 3 GRI 406: Non-discrimination 5 1. Management approach disclosures 5 2. Topic-specific disclosures 6 Disclosure 406-1 Incidents of discrimination and corrective actions taken 6 Glossary 7 References 8 About this Standard Responsibility This Standard is issued by the Global Sustainability Standards Board (GSSB). Any feedback on the GRI Standards can be submitted to standards@globalreporting.org for the consideration of the GSSB. Scope GRI 406: Non-discrimination sets out reporting requirements on the topic of non- discrimination. This Standard can be used by an organization of any size, type, sector or geographic location that wants to report on its impacts related to this topic. Normative This Standard is to be used together with the most recent versions of the following references documents. GRI 101: Foundation GRI 103: Management Approach GRI Standards Glossary In the text of this Standard, terms defined in the Glossary are underlined. Effective date This Standard is effective for reports or other materials published on or after 1 July 2018. Earlier adoption is encouraged. Note: This document includes hyperlinks to other Standards. In most browsers, using ‘ctrl’ + click will open external links in a new browser window. After clicking on a link, use ‘alt’ + left arrow to return to the previous view. 2 GRI 406: Non-discrimination 2016 Introduction A. Overview An organization then selects from the set of topic- specific GRI Standards for reporting on its material This Standard is part of the set of GRI Sustainability topics. These Standards are organized into three series: Reporting Standards (GRI Standards). These Standards 200 (Economic topics), 300 (Environmental topics) and are designed to be used by organizations to report 400 (Social topics). about their impacts on the economy, the environment, and society. Each topic Standard includes disclosures specific to that topic, and is designed to be used together with The GRI Standards are structured as a set of GRI 103: Management Approach, which is used to interrelated, modular standards. The full set can be report the management approach for the topic. downloaded at www.globalreporting.org/standards/. GRI 406: Non-discrimination is a topic-specific There are three universal Standards that apply to every GRI Standard in the 400 series (Social topics). organization preparing a sustainability report: GRI 101: Foundation GRI 102: General Disclosures B. Using the GRI Standards and making claims GRI 103: Management Approach There are two basic approaches for using the GRI Standards. For each way of using the Standards there GRI 101: Foundation is the starting point for using is a corresponding claim, or statement of use, which the GRI Standards. It has essential information an organization is required to include in any published on how to use and reference the Standards. materials. Figure 1 1. T  he GRI Standards can be used as a set to prepare Overview of the set of GRI Standards a sustainability report that is in accordance with the Standards. There are two options for preparing Foundation Starting point a report in accordance (Core or Comprehensive), for using the depending on the extent of disclosures included in GRI Standards the report. GRI 101 An organization preparing a report in accordance Universal with the GRI Standards uses this Standard, Standards GRI 406: Non-discrimination, if this is one of its General Management material topics. Disclosures Approach GRI GRI 2. S elected GRI Standards, or parts of their content, 102 103 can also be used to report specific information, without preparing a report in accordance with To report contextual To report the the Standards. Any published materials that use information about management approach an organization for each material topic the GRI Standards in this way are to include a ‘GRI-referenced’ claim. See Section 3 of GRI 101: Foundation for more Economic Environmental Social information on how to use the GRI Standards, Topic- specific and the specific claims that organizations are Standards GRI GRI GRI required to include in any published materials. 200 300 400 Select from these to report specific disclosures for each material topic GRI 406: Non-discrimination 2016 3 C. Requirements, recommendations and guidance A number of international conventions and declarations address discrimination against specific groups of The GRI Standards include: people or on specific grounds. Examples include the UN Convention on the Elimination of all Forms of Requirements. These are mandatory instructions. Discrimination against Women (CEDAW) and the In the text, requirements are presented in bold font UN International Convention on the Elimination of and indicated with the word ‘shall’. Requirements are All Forms of Racial Discrimination. to be read in the context of recommendations and guidance; however, an organization is not required to The disclosures in this Standard can provide information comply with recommendations or guidance in order about an organization’s impacts related to discrimination, to claim that a report has been prepared in accordance and how it manages them. with the Standards. Recommendations. These are cases where a particular course of action is encouraged, but not required. In the text, the word ‘should’ indicates a recommendation. Guidance. These sections include background information, explanations and examples to help organizations better understand the requirements. An organization is required to comply with all applicable requirements in order to claim that its report has been prepared in accordance with the GRI Standards. See GRI 101: Foundation for more information. D. Background context In the context of the GRI Standards, the social dimension of sustainability concerns an organization’s impacts on the social systems within which it operates. GRI 406 addresses the topic of non-discrimination. For the purpose of this Standard, discrimination is defined as the act and the result of treating people unequally by imposing unequal burdens or denying benefits, instead of treating each person fairly on the basis of individual merit. Discrimination can also include harassment. This is defined as a course of comments or actions that are unwelcome, or should reasonably be known to be unwelcome, to the person towards whom they are addressed. An organization is expected to avoid discriminating against any person on any grounds, including avoiding discrimination against workers at work. It is also expected to avoid discriminating against customers with respect to the provision of products and services, or against any other stakeholder, including suppliers or business partners. These concepts are covered in key instruments of the International Labour Organization, the Organisation for Economic Co-operation and Development, and the United Nations (UN): see References. 4 GRI 406: Non-discrimination 2016 GRI 406: Non-discrimination This Standard includes disclosures on the management approach and topic-specific disclosures. These are set out in the Standard as follows: • Management approach disclosures (this section references GRI 103) • Disclosure 406-1 Incidents of discrimination and corrective actions taken 1. Management approach disclosures Management approach disclosures are a narrative explanation of how an organization manages a material topic, the associated impacts, and stakeholders’ reasonable expectations and interests. Any organization that claims its report has been prepared in accordance with the GRI Standards is required to report on its management approach for every material topic, as well as reporting topic-specific disclosures for those topics. Therefore, this topic-specific Standard is designed to be used together with GRI 103: Management Approach in order to provide full disclosure of the organization’s impacts. GRI 103 specifies how to report on the management approach and what information to provide. Reporting requirements 1.1 The reporting organization shall report its management approach for non-discrimination using GRI 103: Management Approach. GRI 406: Non-discrimination 2016 5 2. Topic-specific disclosures Disclosure 406-1 Incidents of discrimination and corrective actions taken Reporting requirements The reporting organization shall report the following information: a. Total number of incidents of discrimination during the reporting period. b. Status of the incidents and actions taken with reference to the following: Disclosure i. Incident reviewed by the organization; 406-1 ii. Remediation plans being implemented; iii. Remediation plans that have been implemented, with results reviewed through routine internal management review processes; iv. Incident no longer subject to action. 2.1 When compiling the information specified in Disclosure 406-1, the reporting organization shall include incidents of discrimination on grounds of race, color, sex, religion, political opinion, national extraction, or social origin as defined by the ILO, or other relevant forms of discrimination involving internal and/or external stakeholders across operations in the reporting period. Guidance Guidance for Disclosure 406-1 Background In the context of this disclosure, an ‘incident’ refers to a According to ILO instruments, discrimination can legal action or complaint registered with the reporting occur on the grounds of race, color, sex, religion, organization or competent authorities through a formal political opinion, national extraction, and social origin. process, or an instance of non-compliance identified Discrimination can also occur based on factors such by the organization through established procedures. as age, disability, migrant status, HIV and AIDS, gender, Established procedures to identify instances of non- sexual orientation, genetic predisposition, and lifestyles, compliance can include management system audits, among others.1 formal monitoring programs, or grievance mechanisms. The presence and effective implementation of policies An incident is no longer subject to action if it is resolved, to avoid discrimination are a basic expectation the case is completed, or no further action is required of socially responsible conduct. by the organization. For example, an incident for which no further action is required can include cases that were withdrawn or where the underlying circumstances that led to the incident no longer exist. 1 Source: International Labour Organization (ILO), Report I(B) - Equality at work: The continuing challenge - Global Report under the follow-up to the ILO Declaration on Fundamental Principles and Rights at Work, 2011. 6 GRI 406: Non-discrimination 2016 Glossary This Glossary includes definitions for terms used in this Standard, which apply when using this Standard. These definitions may contain terms that are further defined in the complete GRI Standards Glossary. All defined terms are underlined. If a term is not defined in this Glossary or in the complete GRI Standards Glossary, definitions that are commonly used and understood apply. discrimination act and result of treating persons unequally by imposing unequal burdens or denying benefits instead of treating each person fairly on the basis of individual merit Note: Discrimination can also include harassment, defined as a course of comments or actions that are unwelcome, or should reasonably be known to be unwelcome, to the person towards whom they are addressed. grievance mechanism system consisting of procedures, roles and rules for receiving complaints and providing remedy Note: Effective grievance mechanisms are expected to be legitimate, accessible, predictable, equitable, transparent, rights-compatible, and a source of continuous learning. For operational-level mechanisms to be effective, they are expected to be based on engagement and dialogue. For a description of each of these criteria, see Guiding Principle 31 in the United Nations (UN), ‘Guiding Principles on Business and Human Rights, Implementing the United Nations “Protect, Respect and Remedy” Framework’, 2011. impact In the GRI Standards, unless otherwise stated, ‘impact’ refers to the effect an organization has on the economy, the environment, and/or society, which in turn can indicate its contribution (positive or negative) to sustainable development. Note 1: In the GRI Standards, the term ‘impact’ can refer to positive, negative, actual, potential, direct, indirect, short-term, long-term, intended, or unintended impacts. Note 2: Impacts on the economy, environment, and/or society can also be related to consequences for the organization itself. For example, an impact on the economy, environment, and/or society can lead to consequences for the organization’s business model, reputation, or ability to achieve its objectives. material topic topic that reflects a reporting organization’s significant economic, environmental and social impacts; or that substantively influences the assessments and decisions of stakeholders Note 1: For more information on identifying a material topic, see the Reporting Principles for defining report content in GRI 101: Foundation. Note 2: To prepare a report in accordance with the GRI Standards, an organization is required to report on its material topics. Note 3: Material topics can include, but are not limited to, the topics covered by the GRI Standards in the 200, 300, and 400 series. GRI 406: Non-discrimination 2016 7 References The following documents informed the development of this Standard and can be helpful for understanding and applying it. Authoritative intergovernmental instruments: 1. International Labour Organization (ILO) Convention 100, ‘Equal Remuneration Convention’, 1951. 2. International Labour Organization (ILO) Convention 111, ‘Discrimination (Employment and Occupation) Convention’, 1958. 3. Organisation for Economic Co-operation and Development (OECD), OECD Guidelines for Multinational Enterprises, 2011. 4. United Nations (UN) Convention, ‘Convention on the Elimination of all Forms of Discrimination against Women (CEDAW)’, 1979. 5. United Nations (UN) Convention, ‘International Convention on the Elimination of All Forms of Racial Discrimination’, 1965. 6. United Nations (UN) Convention, ‘International Covenant on Civil and Political Rights’, 1966, and related Protocol. 7. United Nations (UN) Declaration, ‘Declaration on the Elimination of All Forms of Intolerance and of Discrimination based on Religion and Belief’, 1981. 8. United Nations (UN) Declaration, ‘Declaration on the Elimination of All Forms of Racial Discrimination’, 1963. 9. United Nations (UN) Declaration, ‘Declaration on the Rights of Persons Belonging to National or Ethnic, Religious and Linguistic Minorities’, 1992. 10. United Nations Educational, Scientific and Cultural Organization (UNESCO) Declaration, ‘Declaration on Race and Racial Prejudice’, 1978. 11. United Nations Entity for Gender Equality and the Empowerment of Women (UN Women) and United Nations Global Compact, ‘Women’s Empowerment Principles’, 2011. 12. United Nations (UN) Fourth World Conference on Women, ‘Beijing Declaration and Platform for Action’, 1995. 8 GRI 406: Non-discrimination 2016 Legal liability This document, designed to promote sustainability reporting, has been developed by the Global Sustainability Standards Board (GSSB) through a unique multi- stakeholder consultative process involving representatives from organizations and report information users from around the world. 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