What is sustainability? „Sustainable development is development that meets the needs of the present Co nte nts without compromising the ability of future generations to meet their own needs. […] In essence, sustainable development is a process of change in which the ex- 1 Foreword 4 ploitation of resources, the direction of investments, the orientation of technolo- to the Sustainability Code by Chancellor Dr Angela Merkel gical development, and institutional change are all in harmony and enhance both current and future potential to meet human needs and aspirations.“ 2 Preamble 7 Brundtland-Commission 1987 3 The Sustainability Code 10 3.1 The 20 Code Criteria 11 3.2 Declaration of conformity with the Sustainability Code 18 3.3 Compatibility version of the declaration of conformity with the Code 19 3.4 Requirements of companies subject to reporting obligation as per the CSR Directive Implementation Act 22 3.5 Basic information on essential aspects of sustainability within the political context 27 4 Practical aids for preparing a declaration of conformity with the Sustainability Code 29 4.1 A declaration of conformity prepared in five steps 30 4.2 Sustainability Code checklist 32 4.3 Helpful information for using the online tool for preparing declarations of conformity with the Sustainability Code 66 5 Glossary 73 3 1 Fo re wo rd The facets of sustainable business are manifold. In order to help companies lay such foundations in day-to-day business, the German Council for Sustainable F O R E WO R D TO T H E S U S TA I N A B I L I T Y Development has developed and tested the Sustainability Code in dialogue with C O D E BY C H A N C E L LO R D R A N G E L A M E R K E L companies and adjusted it to current developments. With its 20 criteria, the Code offers companies guidance for their strategic orien- tation. As it incorporates existing voluntary international reporting standards, it is also applicable to companies with global operations or companies in other The task of achieving sustainability is both challen- countries. Furthermore, thanks to the greater transparency and comparability it ging and rewarding. This is the insight and conviction allows with regard to companies’ products and services, the Code can be used by that guided the United Nations member states as they clients and lenders as an important aid to decision-making. drafted and ratified the Agenda 2030. The Agenda ­documents our joint responsibility for sustainable Though the Sustainability Code is a voluntary instrument, the Federal Govern- development. It contains 17 ambitious goals which ment explicitly supports the broad application of this transparency standard in define key prerequisites for allowing today’s society as order to promote sustainable business development. We regard sustainability as well as future generations to live life with dignity. a joint effort that produces returns for everyone. Quite simply, sustainability is a question of economic prudence, environmental necessity and our perception of This demands a comprehensive “transformation of social cohesion. Thus, I invite all companies to apply the Sustainability Code. our world”, as the title of the Agenda 2030 succinctly states. We all – from governments and civil societies to the business and scientific communities to the world’s citizens – are called upon to adapt the way we live, work, produce and consume in line with the tenets of sustainability. And in fact, a great transformation is already under way. More and more consumers are choosing products that are produced in a socially responsible and environ- mentally friendly manner. More and more investors are now interested in investing in sustainable projects. More and more companies view sustainable business practices as their opportunity to convince people with innovations in the markets. 4 5 2 Pre a m b l e The Sustainability Code is an internationally applicable reporting standard for topics relating to sustainability. The German Council for Sustainable Develop- ment (RNE) adopted the Code on 13 October 2011 following a comprehensive preliminary review process together with stakeholders. After its successful introduction in Germany and against the backdrop of the European Directive on non-financial reporting by companies (2014/95/EU), the RNE established this reporting standard at European level as well. With its most recent update of the Code, the RNE reinforced its aim of advancing sustainability considerations in industry and commerce and of making com- panies’ sustainability performance transparent and comparable. This update was carried out in response to the CSR Directive Implementation Act ratified by the Bundestag in early 2017. By implementing amendments to, in particular, the German Commercial Code (HGB) and the German Companies Act (AktG), the Act made the Directive 2014/95/EU German law. Following its ratification, a reporting obligation now applies to companies and corporations of a certain size for all reporting years beginning after 31 December 2016 (see Chapter 3.4). In its preamble to the Act, the federal government names the Sustainability Code as a suitable framework for companies to look to for guidance on how to comply with their reporting obligation. The updates of the Code, of the explanatory informa- tion and of the checklists provided for assessing compliance with the Code have ensured legal compliance of the Code with the CSR Directive Implementation Act. This was not precluded by the previous version, however the update provides a range of clarifications in this regard. The RNE’s aim is to provide via the Code and its explanations companies with clear guidance on content requirements and the process for preparing non-financial declarations/reports. The Code continues to be a practicable tool even for all those companies and organisational forms not subject to the reporting obligation for providing volun- tary information on their measures related to the various environmental, social and economic aspects of sustainability. 6 7 2. Preamble The advantage of the Code is its condensed and user-friendly form. It provides Practical usage of the Code has shown that thanks to numerous medium-sized companies and organisations of all sizes and legal forms with a framework for companies and public institutions, a sizeable group of users has been established preparing reporting on aspects of sustainability and their management. Its clear that undertake voluntary reporting. Motivations aside from the statutory repor- structure and focus on the essential issues represent the central benefits of the ting obligation relate in part to conviction at management level and in part to Code. Standardised presentation enhances comparability of disclosures and the desire for entrepreneurial differentiation as well as the market’s expectation makes it suitable for use by various market players as a component in assessing of sustainability performance. Further deepening of this motivation is expected. companies’ overall performance. By publishing a declaration of conformity The significance of supply chains and the interest on the part of companies with the Code, companies create a source that can be referenced when fielding subject to reporting obligation in consolidating their information are additional questions from within the company itself, from civil society or from business drivers. partners. In order to enhance the usability and the reach of declarations of conformity with the Code, for instance with ratings agencies and on the financial market, The Sustainability Council promotes a holistic view of sustainability in the Sus- the Code database also offers interfaces that enable linking with other database tainability Code. In a declaration of conformity with the Code, companies report systems. Moreover, declarations can also be useful as a source of high-quality via the 20 criteria of the Code on their strategies, goals, measures, policies and basic information for business partners and stakeholders. risks. Performance indicators underpin the information provided and allow for greater comparability of declarations. Companies’ measure for assessing what to Sustainable business management requires superior corporate governance that report is that the information is materially important (see Glossary “materiali- goes beyond mere compliance with statutory requirements. This is the subject of ty”) for understanding the course of business, the business result, the company’s broad public debate and is laid out in corporate governance codes. The German position and the impact of its business operations on the respective sustainabi- Corporate Governance Code (GCGC) formulated by the federal commission Re- lity aspects. Sector-specific clarifications and supplementation with additional gierungskommission Deutscher Corporate Governance Kodex plays a special role aspects or performance indicators necessary for understanding are also possible. in this regard. The basic principles of good corporate governance are a pillar of the The declaration of conformity is supplemented with a short description of the Sustainability Code. business model before the explanations relating to the 20 Code criteria. The Code provides the opportunity for dynamic standard setting by the com- The Sustainability Code database of the Sustainability Council can be accessed panies themselves when they make their applied and ambitious sustainability free of charge at www.sustainabilitycode.org for assistance in preparing a decla- management a benchmark of sustainable business development. The RNE invites ration of conformity. companies and organisations to make their contributions to sustainable deve- lopment visible and to thereby enable them to be leveraged within the context of broad public discourse. 8 9 3.1 The 20 Code Criteria CRITERIA 5–10 concerning PROCESS MANAGEMENT Responsibility Stakeholder Engagement 5 Accountability within corporate management with regard to sustainabi- lity is disclosed. 9 The company discloses how the socially and economically relevant stake­ holders are identified and integrated into the sustainability process. It states whether and how an ongoing dialogue takes place with them and how the results are integrated into the sustainability process. Rules and Processes 6 The company discloses how the sustainability strategy is implemented in the operational business by way of rules and processes. Innovation and Product Management Control 10 The company discloses how innovations in products and services are enhanced through suitable processes which improve sustainability with respect to the company’s utilisation of resources and with regard to users. Likewise, a further statement is made with regard to if and how 7 The company states how and what performance indicators related to sustainability are integrated into its periodical internal planning and control processes. It discloses how suitable processes ensure reliability, the current and future impact of the key products and services in the value chain and in the product life cycle are assessed. comparability and consistency of the data used for internal manage- ment and external communication. Incentive Schemes 8 The company discloses how target agreements and remuneration ­schemes for executives and employees are also geared towards the ­achievement of sustainability goals and how they are aligned with long- term value creation. It discloses the extent to which the achievement of these goals forms part of the evaluation of the top managerial level (board/managing directors) conducted by the monitoring body (supervi- sory board/advisory board). 12 13 3.1 The 20 Code Criteria CRITERIA 11–20: Sustainability Aspects Criteria 11–13 concerning ENVIRONMENTAL MATTERS Criteria 14–20 concerning SOCIETY Usage of Natural Resources Criteria 14–16 concerning EMPLOYEE-RELATED MATTERS 11 The company discloses the extent to which natural resources are used for the company’s business activities. Possible options here are materi- als, the input and output of water, soil, waste, energy, land and biodiver- Employee Rights sity as well as emissions for the life cycles of products and services. . 14 The company reports on how it complies with nationally and interna- tionally recognised standards relating to employee rights as well as on how it fosters staff involvement in the company and in sustainability Resource Management management, what goals it has set itself in this regard, what results it has achieved thus far and where it sees risks. 12 The company discloses what qualitative and quantitative goals it has set itself with regard to its resource efficiency, in particular its use of renewables, the increase in raw material productivity and the reduction Equal Opportunities in the usage of ecosystem services, which measures and strategies it is pursuing to this end, how these are or will be achieved, and where it sees there to be risks. 15 The company discloses in what way it has implemented national and international processes and what goals it has for the promotion of equal opportunities and diversity, occupational health and safety, participa­ tion rights, the integration of migrants and people with disabilities, fair Climate-Relevant Emissions pay as well as a work-life balance and how it will achieve these. 13 The company discloses the GHG emissions in accordance with the Greenhouse Gas (GHG) Protocol or standards based on it and states the goals it has set itself to reduce emissions, as well as its results thus far. Qualifications 16 The company discloses what goals it has set and what measures it has taken to promote the employability of all employees, i.e. the ability of all employees to participate in the working and professional world, and in view of adapting to demographic change, and where risks are seen. 14 15 3.1 The 20 Code Criteria Criterion 17 concerning RESPECT FOR HUMAN RIGHTS Criteria 19–20 concerning ANTI-CORRUPTION AND BRIBERY MATTERS Human Rights 17 The company discloses what measures it takes, strategies it pursues and targets it sets for itself and for the supply chain for ensuring that human Political Influence rights are respected globally and that forced and child labour as well as all forms of exploitation are prevented. Information should also be 19 All significant input relating to legislative procedures, all entries in lob- by lists, all significant payments of membership fees, all contributions provided on the results of the measures and on any material risks. to governments as well as all donations to political parties and politi­ cians should be disclosed by country in a differentiated way. Criterion 18 concerning SOCIAL MATTERS Conduct that Complies with the Law and Policy Corporate Citizenship 20 The company discloses which measures, standards, systems and processes are in place to prevent unlawful conduct and, in particular, corruption, how they are verified, which results have been achieved to 18 The company discloses how it contributes to corporate citizenship in the regions in which it conducts its core business activities. date and where it sees there to be material risks. The company depicts how corruption and other contraventions in the company are prevented and exposed and what sanctions are imposed. 16 17 3.2 DECLARATION OF CONFORMITY WITH THE 3.3 COMPATIBILITY OF THE SUSTAINABILITY CODE SUSTAINABILITY CODE DECLARATION OF CONFORMITY The declaration of conformity is composed of descriptive sections of texts and per- The declaration of conformity offers companies that already prepare reporting in formance indicators that are backed up by figures. It should be as long as necessary accordance with other standards the possibility of creating their declaration of and as short as possible in order to draw readers’ attention to the essentials. By way conformity with the Code using the information of already published reports as of orientation, the short reports on the individual criteria should be between 500 a basis. To supplement, the company can for certain criteria of the Code point out and 3,000 characters long; however, the decisive factor is that all material informa- where and how it reports on the individual Code criteria in a relevant and compat­ tion on a given Code criterion is presented in the declaration of conformity. ible way elsewhere. Relevant information is provided in the form of legislation as Selected indicators from the comprehensive indicator catalogues by GRI G4 / GRI well as from international and private organisations, partly also in connection with SRS and EFFAS and additional indicators selected to highlight company- or sec- certifications and audits. The options are: tor-specific particularities are the key to achieving a better understanding of the business environment in which the company operates and the particular chal­ • Global Reporting Initiative, GRI G4 / Sustainability Reporting Standard (GRI SRS) lenges it faces. The checklist (Chapter 4.2) is a good source of information regarding • UN Global Compact (Communication on Progress) the content to be reported. • OECD Guidelines for Multinational Enterprises, 2011 version Companies decide themselves whether to report on the basis of the performance • ISO 26000 indicators of GRI G4 / GRI SRS or EFFAS. However, they should, as a rule, continue • Eco-Management and Audit Scheme, EMAS (EU Regulation 1221/2009) on this basis throughout the declaration of conformity. The definition of the indi- • Carbon Disclosure Project, CDP cators and their calculation are explained in the relevant standards on which they • Task Force on Climate-related Financial Disclosures (TFCD) are based. In addition, it is possible to add on a voluntary basis sector- or compa- • International Integrated Reporting Framework, IIRC (integrated reporting) ny-specific indicators or other relevant aspects insofar as the company views this • Sustainability Accounting Standards Board, SASB information to be expedient to fostering better understanding. • Corporate governance report within the meaning of the German Corporate Companies not subject to the reporting obligation can make use of the “comply or Governance Code, GCGC, and the declaration of conformity with regard to the explain” approach as follows: they disclose information on the individual criteria GCGC in terms of Sect. 161 AktG (Companies Act) according to the principle of materiality or provide an explanation for not doing so, e.g. the data has not yet been gathered. Pursuant to the CSR Directive Imple- mentation Act, companies not subject to the reporting obligation have the option of leaving out information if publication of this information would likely result in a substantial disadvantage for the company; the disclosure, however, is to be made at a future date should the disadvantage no longer be a threat. Declarations of conformity are still considered to be in compliance with the Code even if they include multiple sections making use of the “explain” option, as they enable users of the declarations to make their own assessment as to at what stage the company or organisation is at in their pursuit of achieving full and integrated sustainability management. In such cases, it is advisable for the reporting company to state when it plans to publish the missing information. Information about the fundamental parameters, such as the scope of consolidation, significant assumptions and esti- mates, definitions used, as well as a description of the business field, are explained in the general informational sections. 18 19 3.3 Compatibility version of the declaration of conformity with the Code Notes Companies can make reference in their declaration of conformity with the Code to the respective sources of information by providing specific functioning links and page citations in other published reports. In the checklist, such references are considered to be using the “explain” option if the information they contain does not have direct application for third parties. To enhance readability and comparability of declarations of conformity, however, it is recommended to provide at least a short overview of key points within the Code database. The focus on the essentials and the transparency of the declaration of conformity with the Code should be preserved. Vice versa, it is helpful to include in the sustainability report an indexing of the Sustainability Code within the meaning of the GRI Index introduced. For companies subject to a reporting obligation as per the CSR Directive Imple- mentation Act, the type of reporting is not suitable for satisfying the statutory obligation, as then not all of the information required by law is contained in such a report. However, companies subject to the reporting obligation may use the com- patibility version as a supplement to their non-financial (consolidated) declaration or their non-financial (consolidated) report. 20 21 3.4 REQUIREMENTS OF COMPANIES SUBJECT TO REPORTING OBLIGATION AS PER THE GERMAN CSR DIRECTIVE IMPLEMENTATION ACT In December 2014 the European Commission passed a directive that expanded A corresponding obligation to publish a non-financial consolidated declaration or reporting requirements to include non-financial aspects and aspects related to a non-financial consolidated report also applies to parent companies with the legal diversity (2014/95/EU). In March 2017 the Directive was made German law by way form of a stock corporation (Sect. 325b HGB), a limited-liability registered partner­ of the CSR Directive Implementation Act. Following its ratification, a reporting ship or cooperative of a comparable nature, insofar as obligation applies to certain companies and corporations for all reporting years beginning after 31 December 2016. Companies subject to the reporting obligation (1) they are oriented towards the capital market as per Sect. 264d HGB and are now required to publish for every financial year in the context of management (2) the companies to be included in the consolidated group do not fulfil the reporting a non-financial (consolidated) declaration of conformity or a non-fi- requirements for a size-related exemption as per Sect. 293 Para. 1 Sentence 1 nancial (consolidated) report in which information is provided about material No. 1 or No. 2 HGB and non-financial concerns. The Sustainability Code may be used for the preparation (3) the companies to be included in the consolidated group employ an annual of the non-financial (consolidated) declaration of conformity or the non-financial average of more than 500 staff. (consolidated) report in compliance with the CSR Directive Implementation Act. However, when doing so, care must always be taken that when a declaration or a report is prepared, all statutory requirements are satisfied. The same obligation applies to parent companies that are credit institutions (Sect. 340i Para. 5 HGB) or insurers (Sect. 341 Para. 5 HGB) and which fulfil criteria 2 and Independent of this, as per the CSR Directive Implementation Act, an at least par- 3. In the case of a consolidated declaration or consolidated report, as per Sect. 315b tially divergent group of addressees must supplement the declaration on corporate HGB, the subsidiaries included in the consolidation are released from the reporting governance with more precise information on diversity concepts for the company’s obligation. governance bodies (Sect. 289f HGB). Addressees As per the CSR Directive Implementation Act, stock corporations (Sect. 289b Para. 1 HGB), limited-liability registered partnerships and cooperatives of a comparable nature are required to publish a non-financial declaration or a non-financial report insofar as they (1) are defined as large as per Sect 267 Para. 3 Sentence 1 HGB and (2) are oriented towards the capital market as per Sect. 264d HGB and (3) employ an annual average of more than 500 staff. The same applies to credit institutions (Sect. 340a HGB) and insurers (Sect. 341a HGB) that fulfil criteria 1 and 3. 22 23 3.4 Requirements of companies subject to reporting obligation as per the CSR Directive Implementation Act Content of the non-financial declaration Preparation and review of non-financial declarations/reports The CSR Directive Implementation Act requires the disclosure of information on In line with its responsibility for financial reporting, the management board is non-financial issues, at least on environmental, employee and social matters, on responsible for the preparation of the non-financial declaration or report and must respect of human rights and on prevention of bribery and corruption (Sect. 289c present it to the supervisory board as per Sect. 170 Para. 1 Sentence 2 AktG. HGB). As regards the individual non-financial components, those disclosures are to be made which are necessary for gaining an understanding of the course of Pursuant to Sect. 171 AktG, a content level review of the non-financial declaration business, the business result and position of the company as well as of the effects or non-financial report is the duty of the supervisory board. The supervisory board of its operations on the non-financial components (see also Glossary “materiality”). must present the results of this review to the general meeting of shareholders in As per Sect. 289c Para. 3 Nos. 1 to 6 HGB, disclosures of material information on the written form (Sect. 171 Para. 2 AktG). As per Sect. 111 Para. 2 Sentence 4 AktG, the individual non-financial aspects are to include the following: supervisory board must also commission an external audit of the declaration’s content. In accordance with Sect. 317 Para. 2 Sentence 4 HGB, the auditor generally • Description of the respective policy, incl. due diligence processes used, as well only reviews if the non-financial (consolidated) declaration or the special non-fi- as the results of the policy (see Glossary “policy”). nancial (consolidated) report was presented. • Presentation of material risks linked to business operations and which are highly likely to have significant negative impacts on the components as well In this context, it is important to note that the offer of a review of the declaration as how these risks are dealt with (see Glossary “risks”). of conformity by the Sustainability Code Office relates exclusively to a review with • Presentation of material risks (see Glossary “risks”) linked with business respect to the formal transparency requirements of the Code and serves primarily partnerships, products and services and which are highly likely to have nega- to provide the reporting user with procedural support. It does not contain a review tive impacts on the components – insofar as the information is relevant and of fulfilment of the statutory requirements for non-financial (consolidated) decla- reporting on these risks is possible with commensurable effort – as well as rations or non-financial (consolidated) reports. The Sustainability Code Office will how these risks are dealt with. continue to offer this formal review for conformity with the Code, however it does • Presentation of the most significant non-financial performance indicators not assume any liability for the quality, completeness, currentness or correctness that are relevant for the company’s business operations, and of the information contained in the declarations of conformity or fulfilment of • to the extent that it is necessary for understanding, references to the figures the legal requirements of a reporting obligation as per the CSR Directive and the mentioned in the management report as well as supplementary explanations respective implementation acts at national level. Responsibility for the correctness of these. and quality of the non-financial disclosures and reporting as well as the fulfilment of the legal requirements as per the CSR Directive Implementation Act lie exclu­ In addition to the information on non-financial disclosures, for companies or sively with the respective reporting company. corporations subject to the reporting obligation, the business model must also be described. If the company subject to reporting obligation does not pursue a specific concept with respect to individual aspects of sustainability, in place of a presentation of the concept and its results, the company must provide an explanation for this (“com- ply or explain” as per Sect. 289c Para. 4 HGB). Furthermore, the company may omit information that it deems disclosure thereof to be to its own detriment, provided the requirements of Sect. 289e HGB are met. 24 25 3.5 BASIC INFORMATION ON ESSENTIAL ASPECTS OF SUSTAINABILITY WITHIN THE POLITICAL CONTEXT Publication The Sustainability Code is positioned within the context of key international and national frameworks and agreements: A non-financial (consolidated) declaration or non-financial (consolidated) report must be published for every financial year. Companies and credit institutions with With the Sustainable Development Goals (SDGs) of the 2030 Agenda for sustain­able a reporting obligation can choose between three possible publication forms de­ development, the member states of the United Nations agreed on global sustain­ scribed in Sect. 289b HGB for their non-financial disclosures: ability goals as well as on the principles laid out in the Agenda. The 17 SDGs and their corresponding 169 targets apply equally to developing, emer- • the company with a reporting obligation may include the non-financial gent and industrialised countries. They are thus generally also suitable as an orien- (consolidated) declaration as part of its management report, tation framework for companies to align their business operations with both with­ • the company with a reporting obligation may prepare a special non-financial in Germany, Europe and abroad. Implementation of the Sustainable Development (consolidated) report and publish this at the same time as the (consolidated) Goals will occur primarily at the national level. In 2017 the German government management report in the Federal Gazette pursuant to Sect. 325 HGB, or relaunched its Sustainable Development Strategy to implement the 2030 Agenda • the company with a reporting obligation may prepare a special non-financial in Germany. The strategy lays out in concrete form the crucial significance of the 17 (consolidated) report and publish this on its website, insofar as reference is Sustainable Development Goals for Germany and specifies measures the Federal made to it in the (consolidated) management report. In this case as well, the Government will use to implement them within Germany, by way of German company must adhere to a publication deadline of four months from the foreign and development policy, as well as through innovative m ­ ade-in-Germany balance sheet date and keep the report published on the website for at least solutions. The Federal Government describes for which national sustainable devel­ ten years. opment goals it intends to implement measures in various areas of policymaking for up to and including the year 2030. For companies the sustain­able development goals and indicators relevant for their areas of business and sector are of particular interest as well as are the measures for reaching these goals. Only a few goals and indicators have specific relevance for the private sector. Reporting on the corre- sponding topics is also carried out via a declaration of conformity with the Code (in particular via the Code Criteria 4, 10, 11–13, 14–17 and supplementary indicators). In individual cases depending on the sector concerned and its prospects for the future, additional sustainable development goals from the German Sustainable Development Strategy may be relevant for companies. 26 27 4 Pr a cti ca l a ids fo r p rep a rin g a de cla r a t io n o f co n fo rm it y w it h As part of a voluntary joint commitment, the Business and Human Rights National th e Sust a in a b il it y C o de Action Plan (NAP) ratified by the federal government at the end of 2016 formulates goals for the implementation of the UN Guiding Principles on Business and Hu- man Rights in companies and in particular the improvement of the human rights situation throughout the worldwide supply and value chain. According to the Ac­tion Plan, by the year 2020 at least 50% of all companies with over 500 employees are to have integrated human rights due care obligations into their processes. Com- panies can use the declaration of conformity with the Code (in particular criterion 17) to present their processes relevant to a commitment to human rights protection in the sense of the NAP (see Glossary). In April 2016, 175 countries, including the United States, China and Germany, signed the Paris Agreement as a replacement of the Kyoto Protocol. This binding international agreement between the member states party to the United Nations Framework Convention on Climate Change (UNFCCC) has the aim of limiting global warming to significantly less than 2 °C – if possible to below 1.5 °C – above its pre-industrialisation level. In order to achieve this goal, according to the Paris Agreement, it will be necessary to reduce CO2 emissions by 80–95%. Companies can use the Code criteria 11–13 to report on how they are responding to their re- sponsibility for climate protection by describing there, for example, the goals they have set and measures they have taken to reduce their greenhouse gas emissions. 28 29 4.1 A DECLARATION OF CONFORMITY PREPARED IN FIVE STEPS 1 First, you need official approval from executive management level for the undertaking. Then select people with whom to form a team that reflects the various areas of your company’s business. The team should include persons 4 In order to prepare a declaration of conformity in the Code database, you must first register as an administrator with username and password. You will receive an email for the purpose of verifying your account. Once registra­ with specialist knowledge and responsibility from the various business units. tion has been completed, you can begin creating your company profile in the Code database. You can edit it at any time, add additional users and create new reporting years. 2 Review together with the team all 20 of the Sustainability Code criteria and performance indicators. Determine for which criteria data is already avail­ able and, if necessary, where information is still lacking. If you have not yet Transfer all information collected thus far on the criteria (figures, texts and indicators) to the Code database. There is an entry field for each criterion wherein you can edit your texts and figures. The declaration of conformity formulated a strategy/strategies and/or concepts, work together to identify can only be sent in for review by the Code Office once all entry fields have which aspects of sustainability have key importance for your company to been completed. A formal review for compliance with the requirements remain future-proof and what economic, environmental and social impact of the Code is carried out based on a checklist (GRI G4 / GRI SRS or EFFAS) your business operations have. By including the perspective of your stake- for completeness (incl. list of sources and links) and with respect to the holder groups (e.g. customers, suppliers, employees) you will create a broader “comply-or-explain” application of the Code. No certificate is issued, and the basis for the reporting process. Finally, determine within the team who is re- review does not constitute an audit in the sense of the statutory require- sponsible for which criteria and by when data and texts need to be supplied. ments of the CSR Directive Implementation Act. Following successful formal review by the Code Office and with your approval, the declaration of conformity is then published in the Code database and your company is 3 Consolidate all the quantitative and qualitative information available for the respective criteria. Formulate and describe the performance indicators provided with the Code user signet for the corresponding reporting year. Furthermore, compliance with reporting requirements stipulated in the CSR you will be using to evaluate goal achievement. Decide whether you will be Directive Implementation Act must be ensured (see also Chapter 3.4). using the indicators of the Global Reporting Initiative (GRI G4 / GRI SRS) or the European Federation of Financial Analysts Societies (EFFAS) as your basis. Prepare an explanatory text (orientation: 500 to 3,000 characters per criterion) for each of the criteria of the declaration of conformity. Use these 5 Now you can use the declaration of conformity with the Code for your own corporate communications. Following the formal review by the Code Office, texts to provide key information necessary for understanding reporting on the Code signet can be included on your website, in brochures and in emails, the individual criteria (see as well the checklist provided in Chapter 4.2). among other things. You can issue a press release or inform your customers Tip: when preparing your declaration of conformity, you can make use of the and/or commissioning partners and suppliers of the declaration of con- template provided in the download section of the website at formity personally. Furthermore, it can also be exported into different file www.sustainabilitycode.org. Once drafted, have the texts and data approved formats, so the declaration of conformity with the Code can be used as a by executive management. basis for additional sustainability reporting, a non-financial declaration (see Chapter 4.3.1) or other communication media. 30 31 4.2 SUSTAINABILITY CODE CHECKLIST Checklist for assessing a submitted Sustainability Code Notes declaration of conformity The checklist below will provide you with guidance in preparing a declaration of conformity with the Code. The Sustainability Code Office uses this list as a basis for assessing the completeness of declarations of conformity with regard to the requirements of the Code. Please proceed as follows: • The declaration of conformity is comprised of short descriptive reports and performance indicators that are backed up by figures. The reports should be as long as necessary and as short as possible in order to draw readers’ attention to the essentials (guideline length for each criterion: 500 to 3,000 characters). Here, the aim is always to ensure that for all criteria the respective material information has been included in the report. Information is assessed to be material if it is necessary to gain an understanding of the course of business, the business result, the company’s position and the impact of its operations on the aspects concerned. Definitions of the terms “materiality”, “risks” and “performance indicators” as they apply to Code reporting can by found in the Glossary to the Code as well as other definitions. • Select a catalogue of indicators to use as a framework of presentation: either EFFAS or GRI G4 (in use until 30 June 2018) or GRI SRS. Supplement as needed with additional sector- or company-specific performance indicators. • Check that the declaration of conformity is complete by ensuring that infor- mation has been reported for all criteria and performance indicators. You can check for gaps in the information provided by going to the “Status of your profile” tab. • To request a formal review with respect to the Code requirements by the Code Office, click on the button “Submit”, which will become available once your profile is at least 95% complete. • Generally, you will receive a response from the Code Office within two weeks. Until it has been published on the Code website, your declaration of conformi- ty is only visible to you. • Note on this checklist: the formal review is based on the Code criteria. In the column “What you should report”, you will find information specific points you should ideally include in your reporting. 32 33 4.2 Sustainability Code checklist 01 GENERAL 02 03 Criterion What you should report Miss- ing Comply Explain 04 General Company name, logo, reporting year, set of performance indi- 05 cators used, third-party audit, reporting obligation yes/no, contact 06 Describe your business model (incl. business purpose, products/services) 07 08 CRITERIA 1–10: SUSTAINABILITY CONCEPT 09 Criteria 1–4 concerning STRATEGY 10 11 Miss- Criterion What you should report Comply Explain ing 12 1. Strategic Analysis and Action If a general sustainability strategy exists. 13 The company declares whether or not it pursues a sustainability strategy. It explains what What the main elements of this strategy are and what oppor- concrete measures it is undertaking to operate in compliance with key recognised sec- tunities result from this strategy. 14 tor-specific, national and international standards. What concrete measures are being taken to implement the strategy. 15 2. Materiality The social environment in which your business operates 16 and what effects its operations have on various aspects of The company discloses the aspects of its business operations that have a significant sustainability. 17 impact on sustainability issues and what material impact sustainability issues have on its Which aspects of sustainability are particularly relevant to operations. It analyses the positive and negative effects and provides information as to 18 how these insights are integrated into the company’s processes. your company’s operations. The social and environmental opportunities and risks that re- 19 sult for the company from these activities and the conclusions that can be drawn from these. 20 34 35 4.2 Sustainability Code checklist 01 Miss- Criterion What you should report ing Comply Explain 02 3. Objectives Whether the company is pursuing longer-term goals with re­ 03 spect to its sustainability measures and, if it is, what they are. The company discloses what qualitative and/or quantitative as well as temporally defined 04 sustainability goals have been set and operationalised and how their level of achievement How the goals are assessed, how the goals are prioritised and is monitored. how achievement is monitored. 05 4. Depth of the Value Chain What the company’s value chain looks like, i.e. the full path 06 the product/service takes (e.g. from manufacturer to end The company states what significance aspects of sustainability have for added value and customer). 07 how deep in the value chain the sustainability criteria are verified. What significance sustainability has for added value and how deep in the value chain the sustainability criteria are verified. 08 Whether the respective social and ecological problems that 09 arise at the individual stages are known and how these prob- lems are being approached. 10 Whether and how the company communicates with its sup- pliers and business partners about these. 11 12 13 Criteria 5–10 concerning PROCESS MANAGEMENT 14 15 Miss- Criterion What you should report Comply Explain ing 16 5. Responsibility Who in the company bears primary responsibility for sustain­ ability topics (strategy, monitoring, analysis). 17 Accountability within the company’s management with regard to sustainability is disclosed. 18 19 20 36 37 4.2 Sustainability Code checklist 01 Miss- Criterion What you should report ing Comply Explain 02 6. Rules and Processes How the implementation of the overall sustainability strategy 03 within the company is managed (rules, processes and struc- The company discloses how the sustainability strategy is implemented in the operational tures). 04 business by way of rules and processes. 05 7. Control To what extent performance indicators for monitoring have already been decided and how reliability, comparability and 06 The company states how and what performance indicators related to sustainability are consistency of the data is ensured. used in its regular internal planning and control processes. It discloses how suitable 07 processes ensure reliability, comparability and consistency of the data used for internal management and external communication. 08 For criteria 5–7 (please select a performance indicator set: GRI G4 or GRI SRS or EFFAS) Indicator GRI G4-56: The organisation’s values, principles, standards and norms of behavior such as codes of conduct 09 and codes of ethics. 10 Indicator GRI SRS-102-16: Values, principles, standards, and norms of behavior. 11 Indicator EFFAS S06-01: Percentage of total suppliers and supply chain partners screened for compliance in accordance 12 with ESG-criteria. 13 Indicator EFFAS S06-02: Percentage of suppliers and supply chain partners audited for ESG compliance. 14 8. Incentive Schemes Whether there is a compensation system in which sustaina- bility goals are already integrated or can be integrated and, if 15 The company discloses how target agreements and remuneration schemes for execu- not, whether such a thing is planned. tives and employees are also geared towards the achievement of sustainability goals 16 and how they are aligned with long-term value creation. It discloses the extent to which Whether and how the achievement of the goals is monitored the achieve­ment of these goals forms part of the evaluation of the top managerial level by the boards. 17 (board/managing directors) conducted by the monitoring body (supervisory board/advi- sory board). 18 19 20 38 39 4.2 Sustainability Code checklist 01 Miss- Criterion What you should report ing Comply Explain 02 For criterion 8 (please select a performance indicator set: GRI G4 or GRI SRS or EFFAS) Indicator GRI G4-51a: Remuneration policies for the highest 03 governance body and senior executives. 04 Indicator GRI G4-54: Ratio of the annual total compensa- tion for the organisation’s highest-paid individual in each 05 country of significant operations to the median annual total compensation for all employees (excluding the highest-paid 06 individual) in the same country. Indicator GRI SRS-102-35a: Remuneration policies. 07 Indicator GRI SRS-102-38: Annual total compensation ratio. 08 9. Stakeholder Engagement Whether and, if yes, how stakeholder groups that are impor­ tant for the company are identified. 09 The company discloses how the socially and economically relevant stakeholders are iden- tified and integrated into the sustainability process. It states whether and how an ongoing Who these stakeholders are. 10 dialogue takes place with them and how the results are integrated into the sustainability process. Whether and how you are in dialogue with these interest 11 groups. For criterion 9 (please select a performance indicator set: GRI G4 or GRI SRS or EFFAS) Indicator GRI G4-27: Key topics and concerns that have been 12 raised through stakeholder engagement, and how the organi- sation has responded to those key topics and concerns, inclu- 13 ding through its reporting. Report the stakeholder groups that raised each of the key topics and concerns. 14 Indicator GRI SRS-102-44 Key topics and concerns raised. 15 16 17 18 19 20 40 41 4.2 Sustainability Code checklist 01 Miss- Criterion What you should report ing Comply Explain 02 10. Innovation and Product Management Whether the social and environmental effects of the key prod­ 03 ucts and services are known and how they are determined. The company discloses how innovations in products and services are enhanced through 04 suitable processes which improve sustainability with respect to the company’s utilisation Whether and how products are designed to be more sustain- of resources and with regard to users. Likewise, a further statement is made with regard able, i.e. through innovations and processes. 05 to if and how the current and future impact of the key products and services in the value chain and in the product life cycle are assessed. 06 For criterion 10 (please select a performance indicator set: GRI G4 or GRI SRS or EFFAS) Indicator GRI G4-FS11 (report also in accordance with GRI 07 SRS): Percentage of assets subject to positive and negative environmental or social screening. 08 Indicator EFFAS E13-01: Improvement rate of product energy efficiency compared to previous year. 09 Indicator EFFAS V04-12: Total investments in research on 10 ESG-relevant aspects of business as defined by the compa- ny such as eco-design, eco-efficient production processes, 11 decreasing impact on biodiversity, improving health and safety conditions of employees or supply chain partners, development of products to exploit ESG opportunities, etc. in 12 monetary terms, as a percentage of revenue. 13 14 15 16 17 18 19 20 42 43 4.2 Sustainability Code checklist 01 CRITERIA 11–20: SUSTAINABILITY ASPECTS 02 Criteria 11–13 concerning ENVIRONMENTAL MATTERS 03 04 Miss- Criterion What you should report Comply Explain ing 05 11. Usage of Natural Resources If you wish to use the declaration of conformity with the Sus- tainability Code to satisfy your reporting obligation pursuant 06 The company discloses the extent to which natural resources are used for the company’s to the CSR Directive Implementation Act: business activities. Possible options here are materials, the input and output of water, soil, 07 waste, energy, land and biodiversity as well as emissions for the life cycles of products and Taking the materiality principle into account, describe for services. criteria 11–13 (Environment) the policies you pursue, the 08 outcome of those policies, material risks related to them (see Glossary “materiality”, “risks”) and how these are managed as 09 well as the main non-financial key performance indicators, making reference as necessary to KPIs from your financial 10 reports. You should report on the following points among others: 11 Note: the following information should be provided by all users. 12 Whether you know what ecological impacts are caused by 13 your firm’s activity. 14 Where in the value chain you see areas you can influence and are influencing. 15 To what extent the natural resources material to your business operations are used. Possible content here includes materials, 16 water consumption (input and output), air pollution, soil, waste, energy (renewable and non-renewable), land and 17 biodiversity as well as emissions for the life cycles of products and services. 18 19 20 44 45 4.2 Sustainability Code checklist 01 Miss- Criterion What you should report ing Comply Explain 02 12. Resource Management What goals the company has set for the ecological aspects 03 of its business operations and which measures it will or has The company discloses what qualitative and quantitative goals it has set itself with regard already introduced to this end. 04 to its resource efficiency, in particular its use of renewables, the increase in raw material productivity and the reduction in the usage of ecosystem services, which measures and Whether and how these goals are achieved. 05 strategies it is pursuing to this end, how these are or will be achieved, and where it sees there to be risks. 06 For criteria 11–12 (please select a performance indicator set: GRI G4 or GRI SRS or EFFAS) Indicator GRI G4-EN1: Materials used by weight or volume. 07 Indicator GRI G4-EN3: Energy consumption within the orga- nisation. 08 Indicator GRI G4-EN6: Reduction of energy consumption. 09 Indicator GRI G4-EN8: Total water withdrawal by source. 10 Indicator GRI G4-EN23: Total weight of waste by type and disposal method. 11 Indicator GRI SRS-301-1: Materials used by weight or volume. 12 Indicator GRI SRS-302-1: Energy consumption within the organisation. 13 Indicator GRI SRS-302-4: Reduction of energy consumption. 14 Indicator GRI SRS-303-1: Water withdrawal by source. 15 Indicator GRI SRS-306-2: Waste by type and disposal method. 16 Indicator EFFAS E04-01: Total waste in tonnes. Indicator EFFAS E05-01: Percentage of total waste which is 17 recycled. 18 Indicator EFFAS E01-01: Energy consumption, total. 19 20 46 47 4.2 Sustainability Code checklist 01 Miss- Criterion What you should report ing Comply Explain 02 13. Climate-Relevant Emissions What you know about the company’s climate-relevant emis­ 03 sions (e.g. greatest challenges, biggest sources of emissions). The company discloses the GHG emissions in accordance with the Greenhouse Gas (GHG) 04 Protocol or standards based on it and states the goals it has set itself to reduce emissions, Whether and what reduction targets have been set, what you as well as its results thus far. are doing to reach them and what has been achieved thus far. 05 Whether renewable energy is used and, if yes, to what extent, and if not whether this is planned. 06 Which reference figures you use for the calculations. 07 For criterion 13 (please select a performance indicator set: GRI G4 or GRI SRS or EFFAS) Indicator GRI G4-EN15: Direct greenhouse gas (GHG) emissions 08 (Scope 1). Indicator GRI G4-EN16: Indirect greenhouse gas (GHG) emis- 09 sions (Scope 2). 10 Indicator GRI G4-EN17: Other indirect greenhouse gas (GHG) emissions (Scope 3). 11 Indicator GRI G4-EN19: Reduction of greenhouse gas (GHG) emissions. 12 Indicator GRI SRS-305-1: Direct (Scope 1) GHG emissions. 13 Indicator GRI SRS-305-2: Energy indirect (Scope 2) GHG emissions. 14 Indicator GRI SRS-305-3: Other indirect (Scope 3) GHG 15 emissions. 16 Indicator GRI SRS-305-5: Reduction of GHG emissions. Indicator EFFAS E02-01: GHG emissions, total (Scope 1, 2, 3). 17 18 19 20 48 49 4.2 Sustainability Code checklist 01 Criteria 14–20 concerning SOCIETY 02 Criteria 14–16 concerning EMPLOYEE-RELATED MATTERS 03 04 Miss- Criterion What you should report Comply Explain ing 05 14. Employment Rights If you wish to use the declaration of conformity with the Sus- 06 tainability Code to satisfy your reporting obligation pursuant The company reports on how it complies with nationally and internationally recognised to the CSR Directive Implementation Act: standards relating to employee rights as well as on how it fosters staff involvement in the 07 company and in sustainability management, what goals it has set itself in this regard, what Taking the materiality principle into account, describe for results it has achieved thus far and where it sees risks. criteria 14–16 (Employee Rights) the policies you pursue, the 08 outcome of those policies, material risks related to them (see Glossary “materiality”, “risks”) and how these are managed as 09 well as the main non-financial key performance indicators, making reference as necessary to KPIs from your financial 10 reports. You should report on the following points among others: 11 Note: the following information should be provided by all 12 users. How the rights of employees are respected (national and 13 international standards, working conditions, union rights, employees’ right to information, advisory services and social 14 dialogue, health protection, work safety, etc.) and whether specific goals have been set in this regard. 15 What measures the company envisions integrating to involve 16 employees over and above the statutory requirements. Whether and, if yes, how staff participation in the company’s 17 sustainability management is fostered. 18 Whether the company is active internationally. If yes: • Whether and possibly how German standards are 19 implemented abroad. • Which international regulations are met. 20 50 51 4.2 Sustainability Code checklist 01 Miss- Criterion What you should report ing Comply Explain 02 15. Equal Opportunities Has your company set goals and laid out a strategy for achiev­ 03 ing commensurate pay for all employees? If yes, describe The company discloses in what way it has implemented national and international these. 04 processes and what goals it has for the promotion of equal opportunities and diversity, occupational health and safety, participation rights, the integration of migrants and peo- What you are doing to prevent discrimination of any kind 05 ple with disabilities, fair pay as well as a work-life balance and how it will achieve these. with­in the company (measures for gender equality and diver- sity within the company etc.). 06 Whether there are programmes in your company for support­ ing employee health and continuing education and work-life 07 balance, what goals the company has set itself and what results have been achieved or not achieved thus far. 08 16. Qualifications What the company is doing to ensure that staff can achieve 09 optimal performance in the company over the long term (e.g. The company discloses what goals it has set and what measures it has taken to promote health management programmes, age-appropriate worksta- 10 the employability of all employees, i.e. the ability of all employees to participate in the tion design, professional development, incl. with a view to working and professional world, and in view of adapting to demographic change, and demographic change). Whether it has set concrete goals or 11 where risks are seen. implemented concrete measures to this end and what results have been achieved thus far. 12 For criteria 14–16 (please select a performance indicator set: GRI G4 or GRI SRS or EFFAS) Indicator GRI G4-LA6: Type injury and rates of injury, occupa­ tional diseases, lost days and absenteeism, and total number 13 of work-related fatalities, by region and by gender. 14 Indicator GRI G4-LA8: Health and safety topics covered in formal agreements with trade unions. 15 Indicator GRI G4-LA9: Average hours of training per year per employee, by gender and by employee category. 16 Indicator GRI G4-LA12: Composition of governance bodies 17 and breakdown of employees per employee category accord­ ing to gender, age group, minority group membership, and 18 other indicators of diversity. Indicator GRI G4-HR3: Total number of incidents of discrimi- 19 nation and corrective actions taken. 20 52 53 4.2 Sustainability Code checklist 01 Criterion 17 concerning RESPECT FOR HUMAN RIGHTS 02 Criterion What you should report Miss- Comply Explain 03 ing 04 17. Human Rights If you wish to use the declaration of conformity with the Sus- tainability Code to satisfy your reporting obligation pursuant The company discloses what measures it takes, strategies it pursues and targets it sets for to the CSR Directive Implementation Act: 05 itself and for the supply chain for ensuring that human rights are respected globally and that forced and child labour as well as all forms of exploitation are prevented. Information Taking the materiality principle into account, describe for cri- 06 should also be provided on the results of the measures and on any relevant risks. terion 17 (Human Rights) the policies you pursue, the outcome of those policies, material risks related to them (see Glossary 07 “materiality”, “risks”) and how these are managed as well as the main non-financial key performance indicators, making 08 reference as necessary to KPIs from your financial reports. You should report on the following points among others: 09 Note: the following information should be provided by all 10 users. Whether and how your company ensures that it (and any 11 subsidiaries) and its suppliers respect basic human rights. 12 For criterion 17 (please select a performance indicator set: GRI G4 or GRI SRS or EFFAS) Indicator GRI IG4-HR1: Total number and percentage of significant investment agreements and contracts that include 13 human rights clauses or that underwent human rights screening. 14 Indicator GRI G4-HR9: Total number and percentage of operations that have been subject to human rights reviews or 15 impact assessments. 16 Indicator GRI G4-HR10: Percentage of new suppliers that were screened using human rights criteria. 17 Indicator GRI G4-HR11: Significant actual and potential nega­ 18 tive human rights impacts in the supply chain and actions taken. 19 20 56 57 4.2 Sustainability Code checklist 01 Miss- Criterion What you should report ing Comply Explain 02 Note: the following information should be provided by all 03 users. 04 Whether and how your company involves itself on behalf of social, environmental or cultural projects in the community/ 05 communities or region in which it operates (e.g. dialogue at community or regional level, ensuring protection for and 06 development of local associations, donations, support for staff within the framework of corporate volunteering or 07 cooperations). This can range from a simple note mentioning projects and organisations supported to a full presentation of 08 the company’s commitments. For criterion 18 (please select a performance indicator catalogue: GRI G4 or GRI SRS or Indicator GRI G4-EC1: Direct economic value generated and 09 EFFAS) distributed. 10 Indicator GRI SRS-201-1: Direct economic value generated and distributed. 11 12 13 14 15 16 17 18 19 20 60 61 4.2 Sustainability Code checklist 01 Kriterien 19–20 zu COMPLIANCE 02 Criterion What you should report Miss- Comply Explain 03 ing 04 19. Political Influence If you wish to use the declaration of conformity with the Sus- tainability Code to satisfy your reporting obligation pursuant All significant input relating to legislative procedures, all entries in lobby lists, all significant to the CSR Directive Implementation Act: 05 payments of membership fees, all contributions to governments as well as all donations to political parties and politicians should be disclosed by country in a differentiated way. Taking the materiality principle into account, describe for 06 criteria 19–20 (Anti-corruption and bribery matters) the policies you pursue, the outcome of those policies, material 07 risks related to them (see Glossary “materiality”, “risks”) and how these are managed as well as the main non-financial 08 key performance indicators, making reference as necessary to KPIs from your financial reports. You should report on the following points among others: 09 Note: the following information should be provided by all users. 10 Which ongoing legislative processes are relevant for the company. 11 What the company’s views or those of your industry associ­ 12 ation are with regard to political influence and how you exert influence in concrete terms. For donations to political parties: 13 parties you have donated to in the past year and, if so, the amount of the donation(s). 14 What criteria are used to decide which activity or issue your business supports at a political level. 15 Which organisations the company is a member of. 16 For criterion 19 (please select a performance indicator set: GRI G4 or GRI SRS or EFFAS) Indicator GRI G4-SO6: Total value of political contributions by 17 country and recipient/beneficiary. Indicator GRI SRS-415-1: Political contributions. 18 Indicator EFFAS G01-01: Contributions to political parties as a 19 percentage of total revenues. 20 62 63 4.2 Sustainability Code checklist 01 Miss- Criterion What you should report ing Comply Explain 02 20. Conduct that Complies with the Law and Policy Whether you have compliance and anti-corruption guidelines, 03 what these fundamentally comprise and how you monitor The company discloses which measures, standards, systems and processes are in place to compliance with them (e.g. through due diligence processes) 04 prevent unlawful conduct and, in particular, corruption, how they are verified, which results and how any contraventions are punished. Where and which have been achieved to date and where it sees there to be risks. The company depicts how possible material risks have been identified in this regard. 05 corruption and other contraventions in the company are prevented and exposed and what sanctions are imposed. Who is responsible for the topic of compliance within your 06 company. Whether and how managers and staff are made aware of this 07 topic. 08 For criterion 20 (please select a performance indicator set: GRI G4 or GRI SRS or EFFAS) Indicator GRI G4-SO3: Total number and percentage of operations assessed for risks related to corruption and the 09 significant risks identified. Indicator GRI G4-SO5: Confirmed incidents of corruption and 10 actions taken. 11 Indicator GRI G4-SO8: Monetary value of significant fines and total number of non-monetary sanctions for non-compliance 12 with laws and regulations. Indicator GRI SRS-205-1: Operations assessed for risks related 13 to corruption. 14 Indicator GRI SRS-205-3: Confirmed incidents of corruption and actions taken. 15 Indicator GRI SRS-419-1: Non-compliance with laws and reg­ 16 ulations in the social and economic area. Indicator EFFAS V01-01: Expenses and fines on filings, lawsuits 17 related to anti-competitive behavior, anti-trust and monopoly practices. 18 Indicator EFFAS V02-01: Percentage of revenues in regions 19 with a Transparency International corruption index below 60. 20 64 65 4.3 HELPFUL INFORMATION FOR USING THE ONLINE TOOL FOR PREPARING DECLARATIONS OF CONFORMITY WITH THE SUSTAINABILITY CODE 1. Registering and creating a company profile 1.2 CREATING A COMPANY PROFILE your declaration of conformity only in German or English, you will just need to complete one 1.1 CREATING A USER PROFILE / LOGGING IN After successfully logging in, you can set up a page. new company profile. To do so, click on “Create Before you can use the Code database, you will first need to register online. To do so, please new company” and fill in your company-specif­ The editing feature allows you to add content launch the Code website and then select the “Database” tab or use the following link: ic information, such as number of employees, to the sections for the individual criteria (for www.deutscher-nachhaltigkeitskodex.de/en/database company head office and business sector. The more on this, please see Sect. 2). From a user company profile and all content contained in perspective, please remember: keep it short it is not visible to other users until the declara­ and sweet. This is particularly true if you intend tion of conformity has been published. the information you provide to be used by third parties (rating agencies, analysts, awards). 1.3 CREATION/EDITING OF A DECLARATION A good orientation is a length of between 500 OF CONFORMITY IN THE CODE DATABASE and 3,000 characters per criterion, whereby ap- plication of the materiality principle is always You can now create and/or edit a declaration decisive in determining which information the of conformity in the Code database. The most declaration is required to contain (see Glossary recent past financial year is preset as a default. “materiality”). There is no technical limitation Click on the “Create report” button to edit on content within the reporting boxes, how­ these settings and create new reporting years ever an automated note will appear when the under “Report”. Select “German” or “English” to recommended maximum length is exceeded. access the editing segment for the respective Particular attention should be given to quan- year under “Report”. If you intend to submit titative performance indicators. Once there, please click on “Register” in the top third of the screen. This will take you to the registration area. After entering your data, a confirmation link will be sent to your specified email address. After verifying your registration, you can begin using the database functions in order to create your declaration of conformity with the Code. If you already have a user profile, please click on “Log in”, which can be accessed via www.deutscher-nachhaltigkeitskodex.de/en/database 66 67 4 Practical aids for preparing a declaration of conformity with the Sustainability Code 1.4 FORMAL REVIEW AND PUBLICATION for Code users. This notwithstanding, com- 2.2 GENERAL INFORMATION ONLINE panies subject to reporting obligation as per the CSR Directive Implementation Act must Here, you can enter information on whichever Following completion of the declaration of publish disclosures as stipulated by the regula- reporting standard you have applied or de- conformity in the Code database, a formal tory framework (see Chapter 3.4). Specifically, tails of any external audit that may have been review is carried out by the Code Office with this means the declaration of conformity with conducted as well as general information on regard to structural conformity with the Code. the Code must be integrated into the manage- the company. This is also where you select a To request the formal review by the Code Of- ment report as a non-financial declaration or performance indicator set (GRI G4, GRI SRS or fice, go to “Status of your profile” and click the published as a non-financial report together EFFAS). Please provide a brief description of “Submit” button as soon as at least 95% of your with the management report or in parallel on your business model (business purpose, ser- profile has been completed. The formal review the website and maintained there for a period vices/products, etc.) and state whether you also includes the provision of notes on content of at least ten years, insofar as the manage- are subject to the reporting obligation stipu- with suggestions for further improvement of ment report makes reference to content con- lated by the CSR Directive Implementation the declaration. This review relates exclusively tained on the website. Act; if you are subject to the reporting obliga- to fulfilment of the requirements of the Code. tion, this information is required information. It does not constitute a formal or content-­ Then upload your company logo (PNG, JPG or level audit for legal reporting compliance as 2. Entering relevant GIF). The file may not exceed 1MB in size. ­required of companies and corporations by content the CSR Directive Implementation Act. An au- 2.3 STRATEGY, PROCESS MANAGEMENT, dit of whether the declaration of conformity 2.1 ADMINISTRATOR INFORMATION ENVIRONMENT AND SOCIETY with the Code fully satisfies the requirements of a non-financial declaration must always be This input section allows you to view general These input pages allow you to add contents carried out by the reporting company or a third information on the respective company pro- for the 20 Code criteria and performance indi- party commissioned by the company (see def­ file. Neither this section nor the information cators that relate to them. You should disclose inition of “Audit” in Glossary). No check of the entered in it is available to the general public. the required information as dictated by the correctness of the information at a content You can check for gaps in the information materiality principle (see Glossary “materi- lev­el or of plausibility is carried out in the for- provided by going to “Status of your profile”. ality”). Should you wish to supplement with mal review for companies not subject to the You can also learn about the latest news from sector- or company-specific performance indi- reporting obligation either, however. the Sustainability Code Office. The “Assigned cators, you may also enter these here. For rea- accounts” section allows you to set up user sons of direct usability and comparability, RNE Publication in the Code database is carried accounts, for example for agencies or other recommends that all companies enter quanti- out by the Office of the Sustainability Code in people involved in compiling information. tative performance indicators directly into the coordination with the reporting entity. Publi- In “Contact and manuals”, you will find links database instead of linking or referencing re- cation is voluntary and serves to create greater to useful work materials and can contact the ported key indicators in cited reports. You may comparability between declarations of confor- Sustainability Code Office directly. also make format changes and incorporate ta- mity with the Code and enhanced transparency bles as well as, to a limited extent, graphs. 68 69 4 Practical aids for preparing a declaration of conformity with the Sustainability Code 3. Helpful tools NOTES ON GUIDANCE/COMPARISON WITH OTHER DECLARATIONS OF CONFORMITY For each reporting section, you will find a blue help box on the right-hand side of the screen that provides tips on content: 1. “What that means” describes the general expectations for this reporting section. 2. “What you should report” lists typical reporting elements usually cited by companies in the section concerned. 3. “What others write” shows what other companies have written in this section. 4. “Copy texts from previous years” facilitates regular preparation of a declaration of conformity by providing existing sections of text. Once you have completed an entry in the text box, please click on the “Save” button to save your content. 70 71 5 Glossary The glossary for this brochure explains company sites. Value added statements 4. Response from the Code Office terms with relevance for the applica- or a common good balance sheet can tion of the Sustainability Code and an provide information about this. Following submission of a declaration of conformity for review, you will receive a response from understanding of the legal environ- the Code Office within two to three weeks’ time. We will inform you via email once the review ment and defines the meaning of the Corruption: The abuse of entrust- term relevant for reporting in line with ed pow­er for private gain or benefit. has been completed. The results of the review will be allocated to either “comply”, “explain” or the Code. Among other things, an extensive “missing” in the status column under your company profile. By clicking on “Details” you can view ­catalogue of crimes exists in Germany the feedback to the individual reporting sections and by clicking on the criterion itself you can Audit: A targeted supervisory review that deals with topics related to cor­­­­rup­­ return to the entry field. In some cases you may also see a blue Help box here containing addi­ conducted by a natural person (au- t­ion. These include paying/accepting a tional information such as comments from the Code Office. The declaration of conformity can be ditor) in which facts, informa­ tion, bribe, offering/accepting of unlawful published as soon as all sections contain complete reporting, i.e. when all the check marks in the ­characterisations or statements about advantage, etc. The Business Principles status column are green. the aforementioned (actual content) are for Countering Bribery are guidelines compared with suitable benchmarks issued by Transparency International (target content) and any ­divergences and are addressed at companies with are evaluated. In order to ensure the the aim of preventing and avoiding required procedural independence, the corruption. Further guidance is given auditor may not be p ­ ersonally involved by the OECD and the ILO conventions. in the preparation of the actual con- In Germany, the auditing standard tent, either directly or indirectly. This is IDW PS 980 concretely defines com- the main difference to a control. pliance man­ agement requirements. Furthermore, the Extractive Industries Corporate citizenship: In the context Transparency Initiative (EITI), a g­ lob­al of the Sustainability Code, ­corporate coalition of national governments, citizenship is to be understood as ­ companies and civil society working groups of persons or authorities that together to improve transparency on are linked to each other regionally or the exploitation of natural re­sources, because of certain characteristics, for also outlines further requirements instance because of kinship or legal re- with respect to the issue of corruption. lations. Corporate citizenship offers its In the context of corruption and com- members the space wherein they can pliance, the guideline of the Food and undertake political action. In democrat­ Agriculture Organization of the United ic societies, the state is the ­dominant Nations (FAO) also provides important organisational form of polit­ ical cor- guidance on the responsible manage- porate citizenship, particularly with ment of land, fish stocks and forests for the in­volvement of local communities the benefit of food security. as one of its elemen­tary ­subsystems. Companies can have a positive or neg- EFFAS: The European Federation of ative influence on the ­economic, social Financial Analysts Societies (EFFAS) or ecological conditions of corporate is a network of European financial citizenship. Corporate contributions ­analysts, which, together with the Ger- to the community are taxes paid, em- man Association of Financial ­Analysts ployment and p ­ urchasing volume as (DVFA), issued a guideline on inte­ well as infrastructure development at grat­ ing­environmental and social 72 73 5 Glossary a­ spects into financial reporting in 2010, framework ­ catalogues, whereby the (­alternatively EFFAS KPI) supplements Life cycle approach: “The main ob- called KPIs for ESG (Key Performance federal govern­ment ­specifically names reporting in accordance with the Sus­ jectives of a life cycle approach are to Indicators for Environmental Social the German Sustainability Code in this tainability Code. reduce the environmental impacts & Governance Issues). In addition to context with­in their preamble to the of products and services as well as to the 28 GRI performance indicators, the Act. ILO (International Labour Organi­ improve their socio-economic perfor- ­ Code also takes into account the 16 EF- za­­­­tion): The International Labour mance throughout their life cycle, that FAS indicators. German Sustainable Development ­Organization (ILO) is a special organ­ is, from the extraction of raw materials Strategy: Against the backdrop of i­­­­ sation of the United Nations that and energy generation, through produc- EU Directive on Disclosure of Non-­ Agenda 21 passed in Rio de Janeiro, formulates and implements interna­ ­ tion and use, to end-of-life disposal or Financial Information: In December a ­ national sustainable development tional labour and social standards. Its recovery. An organisation should focus 2014 the European Commission passed strategy for Germany was first agreed ­actions are governed by four fundamen- on developing innovative solutions and a directive that expanded reporting re- in 2002. It was comprehensively revised tal principles: freedom of ­ association not just concentrate on compliance with quirements to include non-financial in 2016 to take account of Agenda 2030, and right to collective bargaining, pro- laws and regulations. Furthermore, it aspects and aspects related to diversity passed in 2015, and the Sustainable tection from forced labour, abolition of should commit itself to the continuous (2014/95/EU). In March 2017 this direc- Development Goals (SDGs) contained child labour, protection against discrim- ­improvement of its environmental per- tive was made German law and r­ atified therein. Going forward, the federal gov­ ination in employment and occupation. formance.” (Source: ISO 26000) as part of the German Commercial ernment and the Federal Statistical On this basis, a total of eight core funda- Code (HGB). Companies d ­irectly af- Office alternates publication every two mental Conventions have been defined: Lobby lists: Lobby lists are, for example, fected by the reporting o ­ bligation are, years of a report on ­policy continuation Freedom of Association and Protection the public lists regarding the registration in p ­ articular, capital market-oriented and assessment of the s­ustainability of the Right to ­ Organise Convention, of associations and their representa- companies, credit institutions and in- strategy or, respectively, an indica- Right to Organise and Collective Bar- tives of the German Bundestag or other surers employing more than 500 staff tor report. The German Sustainable gaining Convention, Forced Labour national parliaments and the publicly or with ­total assets of more than € 20 ­De­­vel­op­­ment Strategy focuses on action Convention, Abolition of Forced Labour viewable Brussels transparency register million or net revenue of more than € 40 at national level that is definitive for im- Convention, Equal Remuneration Con- for the European Parliament and the million. The law also contains special re- plementation of the global SDGs. vention, Discrimination (Employment European Commission. There are also quirements with regard to consolidated and Occupation) Convention, Minimum non-publicly accessible lists maintained ­reporting for capital ­market-oriented GRI: The Global Reporting ­Initia­tive (GRI) Age ­Convention, Worst Forms of Child by the Bundestag for the registration of companies, credit ­institutions and in- is an ongoing internation­al ­dialogue on ­Labour Convention. Among others, Sus- individual companies as well as the lob- surers. For all financial years beginning corporate reporting ­ involving com- tainability Code criteria 14–16 take up the by lists of other countries. after 31 December 2016 the companies panies and their stakeholders. The individual issues related to the fundamen- affected are required to publish dis- GRI develops guidelines aimed at tal principles of the ILO. closures of ­ individual non-financial ­improving and standardising the qual- indicators such as their environmen- ity of reporting and thus mak­ ing it tal, fair employment and social issues more comparable. In 2016 the GRI G4 as well as on respecting human rights guidelines were developed further and combating bribery and corruption. and are replaced by the Sustainability This may be satisfied either by expand- Report­ing Standards (GRI SRS). The G4 ing the (consolidated) management ­indicators will remain in use until 30 report or by publishing a separate June 2018. This transition is the ­result “non-financial (consolidated) report”. of the desire for greater modularity Reporting is to be ­carried out using as well as more flexibility with re- a legislatively mandated standard of gard to reporting options and formats­­ materiality. As per Sect. 289d HGB, re- (www.globalreporting.org). A selec- ports may be prepared on the basis of tion of GRI performance indicators 74 75 5 Glossary Management systems relating to as- when preparing declarations of con- ties and risks as well as (sustainability) OECD (Organisation for Econom- pects of sustainability: Performance formity with the Code in that those strategy. Thus, criterion 2 is also gov- ic Co-operation and Development): requirements relating to sustainable disclosures are to be made for each of erned by the general reporting scope Die In 2011 the Organisation for Eco- management are set out in specif- the criteria where the information is principle of materiality, but can in this nomic Co-operation and Development ic management systems. A uniform necessary for gaining an understand- respect be viewed as an independent (OECD) formulated guidelines for the consolidated system for sustainabil- ing of the company’s operations and reporting section containing supple- responsible behavior of companies (in ity management does not yet e­xist. the impacts of these operations on mentary information. particular multinationals). They were The following systems relate to par- the various aspects of sustainability. It negotiated through an extensive inter- tial aspects of the overall system: is this information in particular that National Action Plan Business and national consultation process between EMAS (Eco Management and Audit makes the bidirectional relationship Human Rights: The National Action companies, trade unions, NGOs and Scheme – European Regulation), IDW between the company’s operations Plan Business and Human Rights was governments and contractually agreed PS 980 (national auditing standard for and the environment and society clear. agreed by the federal cabinet on 21 De- between the governments of the OECD ­compliance issued by the Institute of However, according to the Code, the cember 2016. The plan’s aim is to realise countries and a few others. However, Public Auditors in Germany), ISO 14001 reporting obligation itself does not the ­implementation of the UN Guid- they are not binding on companies. ­(international environmental manage- preclude the possibility that one par- ing Principles on Business and Human (http://mneguidelines.oecd.org/) ment system), ISO 9001 (international ticular piece of information may have Rights and in particular to improve the quality management system), and SA greater relevance for an understanding human rights situation throughout Performance indicator: Performance 8000 (international standard relating of the business operations and anoth- supply and value chains in Germany and indicators serve to provide further to the minimum standards of working er for understanding of the impacts of the world as a whole. In the Action Plan, quantification of current results and conditions of employees, published by operations on the corresponding sus- the federal government lays out the goal the respective sustainability goals; Social Accountability International, an tainability criteria. In individual cases of at least 50% of all companies with they thus improve the comparability of international non-governmental or- it may even be necessary for overall over 500 employees having integrated reporting as well as the performance of ganisation). understanding and the completeness human rights due care obligations into the reporting companies to the benefit of the declaration of conformity with their processes by the year 2020. A cor- of all users of declarations of conform- Materiality: The principle of material- the Code to provide information that at responding s­tatutory obligation does ity. The performance indicators help ity is firmly entrenched in accounting first glance is only relevant for an un- not yet exist, however. The Action Plan users from, for example, the capital standards. It is based on the idea that derstanding of the course of business, was drawn up over a period of two years market to integrate declarations into when preparing financial statements, the business result and the company’s in consultation with a variety of players their analysis models or to use them all information must be disclosed position or for an understanding of the from civil society, the business sector to determine key data (e.g. emissions that is material to gaining an under- affects of its operations on the respec- and the political arena. In addition to per unit of power). The performance standing of the company’s business tive aspect of sustainability. the Federal Foreign Office (AA), acting indicators ­selected from GRI and EFFAS operations. Using this as a measure ­ When applying the Sustainability Code, as lead institution, the Federal Ministry (see checklist) are used as a baseline for helps to set the scope of the reporting the principle of materiality as a measure of Labour and Social Affairs (BMAS), reporting in accordance with the Sus- and highlight important information. of reporting scope applies to the whole the ­Federal Ministry of Economic Co- tainability Code and are reported on In the context of sustainability report- document. It is to be taken into consid- operation and Development (BMZ), the like the Code criteria. Sector- or com- ing, the respective frameworks use a eration for disclosures relating to all Federal ­Ministry of Justice and Con- pany-specific performance indicators variety of approaches for determin- criteria. The reporting on strategy and/ sumer Protection (BMJV), the Federal may additionally be relevant. ing which information is material and or the sustainability concept for crite- Ministry of the Environment, Nature therefore subject to reporting. As with rion 2, however, is a special case: here, Conservation, Building and Nuclear the statutory reporting obligation as information is provided in the decla- Safety (BMUB) and the Federal Ministry per the CSR Directive Implementa- ration of conformity about the aspects of Economic Affairs and Energy (BMWi) tion Act when preparing non-financial of sustainability with particular rele- were also i­ nvolved. From 2018 the Action ­declarations/reports, the principle of vance for the company and how these Plan’s implementation will be reviewed materiality is applied in the same way impact the assessment of opportuni- ­annually by the federal government. 76 77 5 Glossary Policies: Descriptions of (sustainability) mental policy. Due to the declaration of subject to the reporting obligation scope comparable to that of the annual policies refer to explanations of the conformity being a closed comprehen- should also report on risks in their dec- financial statements and the manage- strategies a company uses to approach sive report, refer­ences to other sections laration of conformity with the Code. ment report which focuses at its core the topic of sustainability overall and/ of text can be used to avoid doubling of They may use the statutory benchmark on the individual company, or if they or individual sustainability aspects, content. as their orientation for this report- are preparing a non-financial declara- which measures it wants to imple- ing, however additional presentation tion or a non-financial report with a ment in which time frame, how the Risks: The presentation of risks re- of risks relating to individual aspects scope comparable to that of the consol- company management is involved in lating to the individual aspects of of sustainability that goes beyond idated annual financial statements and these measures and which process- sustainability (criteria 11–20) that ­ the standard requirements may aid in the consolidated management report es it wishes to implement, such as result from the business operations achieving better understanding. and as such related to the consolidated to involve ­employees or other stake- or the products or services serves in group of companies. holders. The respective internal due particular to allow for a better un- ­ Scope of reporting: In order to diligence processes also form part of derstanding of the company’s course establish financial reporting compa- ­ Stakeholders: According to the G4 the policies. Companies subject to a of business and makes it clear what rability, for companies that are not guidelines, stakeholders are defined reporting ­ obligation as per the CSR challenges a company is aware of with subject to the reporting obligation of as “entities or individuals that can rea- Directive Implementation Act are re- respect to aspects of sustainability. As the CSR Directive Implementation Act sonably be expected to be significantly quired by Sect. 289c Para. 3 Nos. 1 and 2 per Sect. 289c Para. 3 Nos. 3 and 4 HGB the declaration of conformity r­ efers to affected by the organisation’s activities, HGB (Commercial Code) to present in and in line with the CSR Directive Im- the same group of companies as those products, and/or services; and whose their ­ non-­financial declarations, the plementation Act, companies subject included in the consolidated finan- actions can reasonably be expected to policies they apply for the ­individual to reporting obligation must present cial statements. In some cases, it may affect the ability of the organisation to ­non-­financial aspects and the results the principal risks which are highly be useful and necessary to deviate successfully implement its strategies they have yielded. The reporting com- likely to have a significant negative from this. Generally it is necessary to and achieve its objectives.” (Source: pany only needs to report on exist- impact on the individual non-finan- expand the scope of the financial re- Global Reporting Initiative [GRI]: G4 ing policies or alternatively provide cial components. Companies subject porting when discussing individual Sustainability Reporting Guidelines. an explanation as to why no policy to reporting obligation must take this criteria relating to the supply chain, for Amsterdam 2013: 94) exists. With regard to a declaration of into account in their reporting on cri- instance. In such instances, the com- conformity with the Code, policies ­ teria 11–20. The severity of the effects panies indicate this and give reasons Standard: In this context, a standard play a key role in two regards: due to should be assessed according to both for their decision. Companies subject is a comparatively uniform, widely ac- the holistic ­sustainability concept of extent and intensity. How the risks are to a reporting obligation: According to cepted course of action that is usually the Sustainability Code, the informa- managed is also to be presented. The the CSR Directive Implementation Act taken into account. A standard is often tion provided for criteria 1–10 involves risks to be reported on include not only such companies must explain in their the result of a standardisation process. reporting on the company’s overall ­ those risks which are directly linked declaration of conformity with regard Whether a standard is established by a sustainability policy. In these sec- to the company’s operations but also to scope of reporting whether they are public or other formalised procedure or tions, information is provided on over- those risks that result from their prod- preparing a non-financial declaration by general recognition is not decisive. all strategy, target setting and target ucts or services or from the company’s or a non-financial report that uses a achievement. Furthermore, in accord- business relationships, for example ance with the ­understanding of a “pol- along the supply chain, insofar as the icy” in the CSR Directive Implementa- ­information is significant and a corre- tion Act, for criteria 11–20 information sponding presentation does not e­ ntail is presented on the criteria-specific undue effort. Risk reporting must thus concepts and their corresponding re- also be included when submitting a sults, meaning that, for example, in declaration of conformity with the conjunction with criteria 11–13, in- Code as a non-financial declaration or formation is provided on the environ- non-financial report. Companies not 78 79 5 Glossary Supply chain: According to the man- hensive development agenda for all UN the fight against corruption ­­ (www. agement guidelines ISO 26000, the member states for up to and including unglobalcompact.org). The large supply chain is the sequence of ­ the year 2030. The 17 primary goals and majority of content from a company’s ­activities or parties that provides prod- their total of 169 targets are based on Communication on Progress (CoP) ucts or services to the organisation. the principles of universality, indivisi- can be taken over for a declaration of Depending on a company’s business bility, participation and accountability. conformity with the Code. And vice area, s­upply chains can be of differ- In contrast to the MDGs, these volun- versa: supplemented by a statement ent lengths or branched. The depth of tary goals apply to both developing and from management affirming the the supply chain denotes the stages of industrialised countries. company’s ongoing commitment to extraction of raw materials, prefabri- the Global Compact, the declaration cation, refining, production, sales and UN Guiding Principles on Business of conformity can be considered a logistics. Furthermore, product respon- and Human Rights: The UN Guiding complete Communication on Progress. sibility may also refer to the use of the Principles on Business and Human products by customers as well as recy- Rights – also known as the “Ruggie Usage: The usage of ecosystem ser­vices cling and disposal (value chain). Principles” after their initiator John includes data about usage and the con- Ruggie – were endorsed by the UN sumption of natural resources such as, Sustainability strategy: Sustainabil- Commission on Human Rights in 2011. in particular, input, process design, out- ity strategies are the core foundation They define the obligations of states put and outcome as well as the data on of sustainability management. They and the responsibility of enterprises to impact over the life cycle of products relate to key processes within compa- protect and respect human rights and and services. nies and the political arena and are to provide guidance for implementing be systematically integrated into pro- due diligence processes, among other Value chain: The value chain is the cesses and measures throughout all things. They comprise (1) an affirmation entire sequence of activities or parties areas. Sustainability strategies are well of the duty to respect human rights, (2) that provide or receive value in the suited for management purposes when methods for determining actual and form of products or services. Parties they contain goals and time frames as potential detrimental affects on human that provide value include suppliers, well as quantifiable indicators, are re- rights, (3) measures to prevent potential outsourced workers, contractors and ­ viewed regularly and regular reporting negative impacts and for assessing the others. Parties that receive value in- is carried out on goal achievements efficacy of these measures, (4) reporting clude customers, consumers, clients, and, if necessary, conflicts among and (5) a complaint reporting mecha- members and other users (see ISO goals. Authors of sustainability strate- nism accessible to all those potentially 26000). Compared to the value chain, gies may be organisations, companies affected. the supply chain is therefore the broad- and nation states, countries, and local ( w w w.u n g l ob a l co m p a c t .o r g / d o c s / er term. ­governments. issues_doc/human_rights/Resources/ IntroToGPs.pdf) Sustainable Development Goals: This catalogue of 17 goals for sustainable United Nations Global Compact: The development (also referred to as 2030 UN Global Compact is an initiative of Agenda) was agreed in 2015 by the Unit- the United Nations for companies that ed Nations (UN) as a political objective commit themselves to aligning their and came into force as of 1 January 2016. operations with the ten principles of It replaces the Millennium Develop- sustainability. These include, inter ment Goals (MDGs) that expired in 2015 alia, human rights, labour standards, and presents an ambitious and compre- protection of the environment and 80 81 C ou nc i l m embers The German Council for Sustainable Development (RNE) Marlehn Thieme Chairwoman of the Council, Member of the Council of Lutheran Churches in Germany (EKD), Chairwoman of the ZDF Television Council The Council comprises 15 public figures appointed 2016 by Federal Chancellor Dr Angela Merkel for a three-year term. The RNE was first established in April 2001 by Olaf Tschimpke Deputy Chairman of the Council, President of ‘NABU’ (Nature and Biodiversity Conservation Union) then Chancellor Gerhard Schröder. The Council’s tasks include generating contri- butions to the national sustainability strategy, specifying concrete fields of activity Prof. Dr. Alexander Bassen and projects and also providing contributions that make sustainability a public Professor of Capital Market and Management at the University of Hamburg issue of vital importance. Ulla Burchardt Former member of the German Bundestag, freelance strategy consultant For more information please visit: Kathrin Menges www.sustainabilitycouncil.de Executive Vice President Human Resources and Infrastructure Services, Chairwoman of the Sustainability Council at Henkel AG & Co. KGaA Alexander Müller Former Assistant Director-General of the Food and Agriculture Organization (FAO) of the United Nations, former State Secretary of the Federal Ministry of Food and Agriculture Katherina Reiche Managing Director of the German Association of Local Utilities (VKU), former Parliamentary State Secretary Prof. Dr. Lucia A. Reisch Professor at Copenhagen Business School, Chair of the German Advisory Council for Consumer Affairs (SVRV) Dr. Werner Schnappauf Contact: Senior Advisor at Bank of America Merrill Lynch in Germany/EMEA, former Minister of State Development and Environmental Affairs in the Government of Bavaria, former CEO of the Federation of the German Industry Sustainability Code Office Dr. Imme Scholz Deputy Director of the German Development Institute (DIE) Telephone: 00 49 30 / 700 186 974 Prof. Dr. Ulrich Schraml Email: team@sustainabilitycode.org Forest Research Institute of Baden-Württemberg, Freiburg i. Br. Internet: www.sustainabilitycode.org Prof. Dr. Wolfgang Schuster Former Mayor of Stuttgart, Chairman of the Executive Board of Deutsche Telekom Stiftung Imprint Prof. Dr. Hubert Weiger © 2017 German Council for Sustainable Development (RNE) Chairman of Friends of the Earth Germany (Bund für Umwelt und Naturschutz Deutschland BUND) c/o Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Heidemarie Wieczorek-Zeul Editorial team: Günther Bachmann, Tabea Siebertz, Yvonne Zwick Former German Federal Minister for Economic Cooperation and Development, Vice-Chair of Friends of the Proofreading: Scholz & Friends NeuMarkt GmbH Global Fund Europe Board for Germany Legal advisory: Atty Andreas Hecker, LL. M. oec., Hoffmann Liebs Fritsch & Partner Rechtsanwälte mbB Image credits: © adam121 – Fotolia.com © RNE, photographer André Wagenzik www.wagenzik.de Graphic design: Marc Pettenkofer, Carina Schmitt, DRILLING GmbH, www.agentur-drilling.de Printing: Krüger Druck + Verlag GmbH & Co.KG Printed on: Envirotop 82 83