GRI 416: CUSTOMER HEALTH AND SAFETY 2016 GRI 416 Contents Introduction 3 GRI 416: Customer Health and Safety 5 1. Management approach disclosures 5 2. Topic-specific disclosures 7 Disclosure 416-1 Assessment of the health and safety impacts of product and service categories 7  Disclosure 416-2 Incidents of non-compliance concerning the health and safety impacts of products and services 8 Glossary 9 References 10 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 416: Customer Health and Safety sets out reporting requirements on the topic of customer health and safety. 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 416: Customer Health and Safety 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 416: Customer Health and Safety is a There are three universal Standards that apply to every topic-specific GRI Standard in the 400 series organization preparing a sustainability report: (Social topics). GRI 101: Foundation GRI 102: General Disclosures GRI 103: Management Approach B. Using the GRI Standards and making claims There are two basic approaches for using the GRI GRI 101: Foundation is the starting point for using Standards. For each way of using the Standards there the GRI Standards. It has essential information is a corresponding claim, or statement of use, which on how to use and reference the Standards. an organization is required to include in any published materials. Figure 1 Overview of the set of GRI Standards 1. T  he GRI Standards can be used as a set to prepare a sustainability report that is in accordance with Foundation Starting point the Standards. There are two options for preparing for using the a report in accordance (Core or Comprehensive), GRI Standards depending on the extent of disclosures included in GRI the report. 101 Universal An organization preparing a report in accordance Standards with the GRI Standards uses this Standard, General Management GRI 416: Customer Health and Safety, if this is one Disclosures Approach of its material topics. GRI GRI 102 103 2. S elected GRI Standards, or parts of their content, can also be used to report specific information, To report contextual To report the without preparing a report in accordance with information about management approach an organization for each material topic the Standards. Any published materials that use the GRI Standards in this way are to include a ‘GRI-referenced’ claim. Economic Environmental Social See Section 3 of GRI 101: Foundation for more Topic- specific information on how to use the GRI Standards, Standards GRI GRI GRI and the specific claims that organizations are 200 300 400 required to include in any published materials. Select from these to report specific disclosures for each material topic GRI 416: Customer Health and Safety 2016 3 C. Requirements, recommendations and guidance The GRI Standards include: Requirements. These are mandatory instructions. In the text, requirements are presented in bold font and indicated with the word ‘shall’. Requirements are to be read in the context of recommendations and guidance; however, an organization is not required to comply with recommendations or guidance in order to claim that a report has been prepared in accordance 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 416 addresses the topic of customer health and safety, including an organization’s systematic efforts to address health and safety across the life cycle of a product or service, and its adherence to customer health and safety regulations and voluntary codes. These concepts are covered in key instruments of the Organisation for Economic Co-operation and Development: see References. The disclosures in this Standard can provide information on an organization’s impacts related to customer health and safety, and how it manages these impacts. Additional disclosures that relate to this topic can also be found in: • GRI 417: Marketing and Labeling 4 GRI 416: Customer Health and Safety 2016 GRI 416: Customer Health and Safety 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 416-1 Assessment of the health and safety impacts of product and service categories • Disclosure 416-2 Incidents of non-compliance concerning the health and safety impacts of products and services 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 customer health and safety using GRI 103: Management Approach. GRI 416: Customer Health and Safety 2016 5 Management approach disclosures Continued Guidance When reporting its management approach for customer health and safety, the reporting organization can also disclose whether the health and safety impacts of products and services are assessed for improvement in each of the following life cycle stages: • Development of product concept • Research and development • Certification • Manufacturing and production • Marketing and promotion • Storage, distribution, and supply • Use and service • Disposal, reuse, or recycling 6 GRI 416: Customer Health and Safety 2016 2. Topic-specific disclosures Disclosure 416-1 Assessment of the health and safety impacts of product and service categories Reporting requirements The reporting organization shall report the following information: Disclosure 416-1 a.  Percentage of significant product and service categories for which health and safety impacts are assessed for improvement. Guidance Guidance for Disclosure 416-1 This measure helps to identify the existence and range of systematic efforts to address health and safety across the life cycle of a product or service. In reporting the information in Disclosure 416-1, the reporting organization can also describe the criteria used for the assessment. GRI 416: Customer Health and Safety 2016 7 Disclosure 416-2 Incidents of non-compliance concerning the health and safety impacts of products and services Reporting requirements The reporting organization shall report the following information: a. Total number of incidents of non-compliance with regulations and/or voluntary codes concerning the health and safety impacts of products and services within the reporting period, by: Disclosure i. incidents of non-compliance with regulations resulting in a fine or penalty; 416-2 ii. incidents of non-compliance with regulations resulting in a warning; iii. incidents of non-compliance with voluntary codes. b. If the organization has not identified any non-compliance with regulations and/or voluntary codes, a brief statement of this fact is sufficient. 2.1 When compiling the information specified in Disclosure 416-2, the reporting organization shall: 2.1.1 exclude incidents of non-compliance in which the organization was determined not to be at fault; 2.1.2 exclude incidents of non-compliance related to labeling. Incidents related to labeling are reported in Disclosure 417-2 of GRI 417: Marketing and Labeling; 2.1.3 if applicable, identify any incidents of non-compliance that relate to events in periods prior to the reporting period. Guidance Guidance for Disclosure 416-2 their intended functions satisfactorily, and not pose The incidents of non-compliance that occur within a risk to health and safety. Customers have a right the reporting period can relate to incidents formally to non-hazardous products. Where their health and resolved during the reporting period, whether they safety is affected, customers also have the right to occurred in periods prior to the reporting period seek redress. or not. This disclosure addresses the life cycle of the product or service once it is available for use, and therefore Background subject to regulations and voluntary codes concerning Protection of health and safety is a recognized goal the health and safety of products and services. of many national and international regulations. Customers expect products and services to perform 8 GRI 416: Customer Health and Safety 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. 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. product article or substance that is offered for sale or is part of a service delivered by an organization product or service category group of related products or services sharing a common, managed set of features that satisfy the specific needs of a selected market reporting period specific time span covered by the information reported Note: Unless otherwise stated, the GRI Standards require information from the organization’s chosen reporting period. service action of an organization to meet a demand or need GRI 416: Customer Health and Safety 2016 9 References The following documents informed the development of this Standard and can be helpful for understanding and applying it. Authoritative intergovernmental instruments: 1. Organisation for Economic Co-operation and Development (OECD), OECD Guidelines for Multinational Enterprises, 2011. 10 GRI 416: Customer Health and Safety 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. While the GRI Board of Directors and GSSB encourage use of the GRI Sustainability Reporting Standards (GRI Standards) and related Interpretations by all organizations, the preparation and publication of reports based fully or partially on the GRI Standards and related Interpretations are the full responsibility of those producing them. 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PO Box 10039 Global Reporting Initiative, GRI and logo, GSSB and logo, and GRI Sustainability Reporting Standards (GRI Standards) are trademarks of Stichting Global 1001 EA Reporting Initiative. Amsterdam © 2018 GRI All rights reserved. The Netherlands ISBN: 978-90-8866-127-3 11 GRI 416: Customer Health and Safety 2016