Environmental, Social and Governance (ESG) Disclosure Guidance for Listed Companies 1 ESG DISCLOSURE GUIDANCE FOR LISTED COMPANIES Table of Contents • ADX ESG Disclosure Guidance 3 • Overview of the key drivers of ESG adoption in the UAE 4 • UAE Vision 2021 4 • Abu Dhabi Vision 2030 4 • The Securities and Commodities Authority Master Plan for Sustainable Markets 4 • Abu Dhabi Sustainable Finance Declaration 4 • The Sustainable Development Goals (SDGs) 5 • Abu Dhabi Investment Authority 6 • Abu Dhabi Securities Exchange 6 • What is Sustainability/ESG 6 • Responsible investing 7 • Importance of sustainability reporting 7 • Alignment with the UAE vision and SDGs 7 • Investor interest in sustainability 7 • Enhanced competitiveness 7 • Risk management 7 • Building trust and reputation 7 • Enhance access to Information 7 • Reporting on what matters 8 • What is materiality? 8 • How to identify material issues 8 • How to report? 9 • Reporting formats 9 • Appendix A: ESG Metrics 10 • Appendix B: Sustainability reporting frameworks 16 2 ESG DISCLOSURE GUIDANCE FOR LISTED COMPANIES ADX ESG Disclosure Guidance Abu Dhabi Securities Exchange (ADX) has made a formal commitment to drive sustainability in financial markets by becoming a partner exchange of the United Nations led initiative – The Sustainable Stock Exchanges initiative (SSE). In its efforts to promote sustainability in financial markets in alignment with the UAE National Vision 2021 and Abu Dhabi Economic Vision 2020, ADX has developed this Environmental, Social, Governance (ESG) disclosure guidance to support our listed issuer’s sustainability reporting journey. This guidance was published to support voluntary disclosure of ESG information. Abu Dhabi Securities Exchange reserves the right to amend and/or update this ESG reporting guideline. The voluntary guidance provides ADX listed companies with 31 ESG indicators that are considered essential to report in alignment with the recommendations of the Sustainable Stock Exchanges (SSE) Initiative and the World Federation of Exchanges (WFE). The indicators are also mapped against Global Reporting Initiative (GRI) indicators and the Sustainable Development Goals (SDGs) for companies willing to adopt more detailed sustainability reporting standards that go beyond this report. ADX recognizes that the scope and depth of sustainability disclosure will be unique to each sector of activities as well as the companies’ own operations. Listed companies may choose to look beyond this guide to explore comprehensive reporting frameworks or guidelines such as the Global Reporting Initiative (GRI) or the Integrated Reporting (IR) framework. We have summarized the major sustainability reporting frameworks in the Appendix B of this guide. 3 ESG DISCLOSURE GUIDANCE FOR LISTED COMPANIES Overview of the key drivers of ESG adoption in the UAE UAE Vision 2021 During the last few years, the UAE has deployed extensive efforts towards driving sustainability forward in the country under the framework of UAE Vision 2021 and in alignment with the UN Sustainable Development Goals (SDG). The vision consists of six key pillars aimed at ensuring a sustainable environment and infrastructure. Abu Dhabi Vision 2030 Abu Dhabi Vision 2030 also highlights the importance of sustainability. The vision intends to build a sustainable and diversified, high value-added economy that is well integrated into the global economy and that provides more accessible and higher-value opportunities for all its citizens and residents. The Securities and Commodities Authority Master Plan for Sustainable Markets The UAE’s Securities and Commodities Authority has set a master plan for sustainable markets to contribute to a more stable and resilient financial system. The master plan aims to create awareness on the importance of sustainability and market stakeholders’ roles in supporting sustainability and shifting towards effective sustainable practices. Abu Dhabi Sustainable Finance Declaration Abu Dhabi Global Market (ADGM), the international financial centre in Abu Dhabi, recently unveiled its Sustainable Finance Agenda Declaration at the inaugural Abu Dhabi Sustainable Finance Forum (ADSFF). The declaration acknowledges the UAE’s and Abu Dhabi’s commitment to addressing climate change and to fostering and integrating green and sustainable finance in Abu Dhabi, the UAE and the region. ADGM, in collaboration with Central Bank of UAE, the Securities and Commodities Authority and the Ministry of Climate Change, aims to facilitate the dialogue on sustainable finance between the financial community, businesses and the public sector. The declaration aims to increase the quality and depth of green financial products and to create a thriving sustainable finance industry in order to meet the SDGs. 4 ESG DISCLOSURE GUIDANCE FOR LISTED COMPANIES The Sustainable Development Goals (SDGs) The Sustainable Development Goals (SDGs), otherwise known as the Global Goals, are a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity. In January 2017, the UAE National Committee on SDGs was formed by decree of the UAE Cabinet. The Ministry of Cabinet Affairs and The Future, the Ministry of Foreign Affairs and International Cooperation and 12 other Federal level government organizations are members of the committee and are responsible for the national implementation for SDGs, monitoring and reporting of progress towards targets and stakeholder engagement. There are significant overlaps between UAE’s National Agenda - consisting of 6 national priorities, 52 NKPIs and 365 sub-NKPIs - and the 17 goals, 169 targets and approximately 230 indicators of the SDGs. The SDG targets have also been mapped to the objectives of the development plans of the local Emirates. The UAE plans to localize and harmonize the SDGs across federal and local levels of government and thus has aligned federal and local development plans with the KPIs and their associated targets. 1 The SDGs are mapped against the WFE and Global Reporting Initiative (GRI) indicators in Appendix A of this report. 1 National Committee on Sustainable Development Goals – United Arab Emirates and The 2030 Agenda for Sustainable Development, 2018 http://fcsa.gov.ae/en-us/Lists/D_Reports/Attachments/14/UAESDGs-EN.PDF 5 ESG DISCLOSURE GUIDANCE FOR LISTED COMPANIES Abu Dhabi Investment Authority Abu Dhabi Sovereign Wealth Fund - Abu Dhabi Investment Authority (ADIA) has also demonstrated its commitment to integrate ESG factors in investment decisions by joining the “One Planet Sovereign Wealth Fund Working Group”. The working group was established with the aim to accelerate efforts to integrate financial risks and opportunities related to climate change in the management of large, long-term asset pools.2 Abu Dhabi Securities Exchange Abu Dhabi Securities Exchange has deployed key initiatives to promote the adoption of Environment, Social, and Governance (ESG) among the listed companies and investors. · Promoting sustainability reporting: Promoting market education through the deployment of a sustainability reporting disclosure guide, group and individual engagement sessions with the listed companies · Promoting sustainable financial products: Encouraging the development of green financial products such as Green Bonds or ESG indices · Promoting responsible investment practices: Encouraging dialogue between investors and listed companies on responsible investing and promoting the integration of ESG factors in investment decisions This ESG guidance is the first step towards promoting sustainability reporting among the listed issuers. This guide complements the Securities and Commodities Authority’s Corporate Governance Code which provides provide guideline on corporate governance requirements. The code was updated in 2016 with the aim to enhance the level of good corporate governance in terms of board independence, board committees, and timeliness of reporting. What is Sustainability/ESG? Sustainability at the corporate level has evolved from the notion of Corporate Social Responsibility - mainly focused on corporate philanthropy - to become a strategic priority for companies to seize opportunities, reduce costs and to build competitive edge. Sustainability management is the integrated management of economic, social and environmental performance for the purpose of maximizing benefits to all stakeholder groups. It helps companies identify social, environmental, economic and governance risks and opportunities that increasingly significantly impact the success of companies through driving performance gains and increasing competitiveness. The term ESG (environmental, social and governance) is predominantly used in capital markets to describe the sustainability or environmental, social and governance issues that investors look at to determine the companies’ ability to hedge sustainability related risks and identify new opportunities to create long term value for stakeholders. 2 Sovereign Wealth Funds Worth USD 3 Trillion Commit to Paris Goals (2018) https://unfccc.int/news/sovereign-wealth- funds-worth-usd-3-trillion-commit-to-paris-goals 6 ESG DISCLOSURE GUIDANCE FOR LISTED COMPANIES Responsible investing Over the last decade, there has been significant growth in the adoption of sustainability in financial markets. As of April, 2019, the United Nations-supported Principles for Responsible Investment (PRI) had over 2,300 signatories, with almost USD 86 trillion in assets under management (AUM), up from 800 signatories with USD 22 trillion AUM in 2010. These signatories have pledged to integrate ESG issues in their investment decisions. Investors globally consider ESG factors in their investment analysis, since several research studies have provided evidence that companies that adopt sustainability practices often financially outperform their peers. Importance of sustainability reporting Alignment with the UAE vision and SDGs Demonstrate your company’s commitment to the UAE vision by reporting sustainability indicators against key priorities and objectives depicted in the vision and the Sustainable Development Goals (SDGs). Investor interest in sustainability Investors and ESG rating agencies are already analyzing the ESG performance of your company based on publicly available data to inform their investment decision process whether your company report on ESG information or not. The lack of disclosure on key ESG indicators by companies is often interpreted by the investment community as a signal that the company may not be able to mitigate sustainability risks or capture opportunities. Enhanced competitiveness Understand your stakeholders’ needs to enhance market competitiveness and drive cost reductions by measuring and monitoring such issues as water, energy consumption, materials use, and waste. Risk management Address reporting requirements on financially material factors and mitigate compliance risks related to financial disclosure regulations. Enable management and board scrutiny of ESG opportunities and risks and promote company - wide alignment with long term shareholders’ goals. Building trust and reputation Enhance reputation, open dialogue with stakeholders such as customers, communities and investors, and demonstrate leadership. Enhance access to information Ensure that your company’s key stakeholder(s) have the relevant information that is needed to make informed decisions about the company’s ability to create value in the short, medium and longer term. 7 ESG DISCLOSURE GUIDANCE FOR LISTED COMPANIES Confidential Reporting on what matters Reporting on what matters What is materiality? What is materiality? According to the Sustainability Accounting Standards Board (SASB) Standards, material ESG According issues to theare Sustainability Accounting defined as issues that areStandards reasonablyBoard (SASB) likely to Standards, impact material the financial ESGor condition issues are defined asoperating issues that are reasonably likely to impact the financial condition or operating performance of a company and therefore are most important to investors. These performance of a company and therefore are most important to investors. These material issues differ from industry material issues differ from industry to industry, company to company and from country to to industry, company to company and from country to country. country. How to identify How to material identifyissues material issues The processThetoprocess definetokey define key material material issues issues can be cansummarized be summarized into into 4 stagesaccording 4 stages according to to the the Global Global Reporting Initiative (GRI). The first step includes identification. In this stage Reporting Initiative (GRI). The first step includes identification. In this stage a company identifies all a company identifies sustainability relatedall sustainability relatedcause topics that might topicspotential that mightimpacts cause potential on theimpacts company’son theactivities, company’sproducts, services, and relationships activities, products,that occurand services, inside or outside relationships thatthe company. occur inside or The next outside thestage is prioritization. company. The Here, companies select the most important material to report on according to materiality next stage is prioritization. Here, companies select the most important material to report on principles and stakeholder inclusiveness. according Following to materiality this stage principles validation.inclusiveness. and isstakeholder These steps involve Following assessing this stagetheismaterial aspects against validation. These steps involve assessing the material aspects against the scope of reporting,The final the scope of reporting, the boundaries for each impact, and reporting period. stage of the thedefining boundaries process is review. for each Thereporting impact, and review takes place period. The after the company’s final stage report of the defining is published process in order to prepare for the next reporting cycle. is review. The review takes place after the company’s report is published in order to prepare for the next reporting cycle. •Identification is •Prioritization is based on: the based on: the Principles of Principles of Sustainability Materiality and Context and Stakeholder Stakeholder Inclusiveness. Inclusiveness. 1. Identification 2. Prioritization 4. Review 3. Validation •Review is based on: •Validation is based the Principles of on Principles of Sustainability Completeness and Context and Stakeholder Stakeholder Inclusiveness. Inclusiveness. 8 8 ESG DISCLOSURE GUIDANCE FOR LISTED COMPANIES Companies may incorporate ESG issues into their businesses to test their effectiveness and act upon it. This will allow companies to proactively engage what they believe are material ESG issues into their policies, effectively implement ESG management systems, and accurately identify targets and key performance indicators (KPI’s) to quantify and monitor performance. By doing so, companies will enhance their communication with investors and transparently disclosing internal ESG information to their stakeholders.3 How to report? Around the world, investors want to understand companies’ approach to material ESG risks. Investors compare the ESG performance of companies across sectors in a systematic standardized way. This entails the presence of a standardized reporting framework. Companies should report on their sustainability performance using a standardized reporting framework, such as those mentioned in Appendix B. Companies should structure their reports in a matter that conveys and communicates the issues that matter most to their stakeholders, particularly investors. Reporting formats The three most common reporting formats utilized by companies to disclose sustainability information are listed below. Annual Report Annual reports are intended to give shareholders and other stakeholder group information about the company’s activities and financial performance. Some companies integrate ESG issues into their annual reports, aiming to provide investors with ESG disclosure at the same time as wider information about the company. However, due to concerns about length and complexity, companies tend to discuss ESG issues briefly in annual reports focusing only on key ESG issues that investors care about. In addition, ESG-related content may not fit the flow and structure of the annual report. Sustainability report Introducing a standalone sustainability is an approach favored by most companies. As of May 2019, 32,700 reports have been listed on the GRI Sustainability Disclosure Database (SDD)4; these reports are in line with the GRI standards. Sustainability reports provide a company’s consolidated ESG content at a single location and address the relevant ESG information needs of investors and other stakeholders, such as consumers and civil society. Integrated report An integrated report is a concise communication about how an organization’s strategy, governance, performance and prospects, in the context of its external environment, lead to the creation of value. ESG information and data are presented in an integrated manner within the annual report. This model offers investors a more rounded, concise and holistic insight into business performance and impact over the short, medium and long term. 3 G4 – Sustainability Reporting Guidelines https://www.globalreporting.org/resourcelibrary/GRIG4-Part2-Implementation-Manual.pdf 4 GRI Sustainability Disclosure Database http://database.globalreporting.org/ 9 ESG DISCLOSURE GUIDANCE FOR LISTED COMPANIES Appendix A: ESG Metrics Corresponding Corresponding Category Metric Calculation Notes GRI Standard SDG E1. GHG E1.1) Total amount GRI 305: Actual or estimated atmospheric Emissions in CO2 equivalents, Emissions 2016 emissions produced as a direct (or for Scope 1 indirect) result of the company’s E1.2) Total amount, consumption of energy. in CO2 equivalents, Please refer to the WRI/WBCSD GHG for Scope 2 (if protocol. )applicable E1.3) Total amount, in CO2 equivalents, for Scope 3 (if )applicable E2. Emissions E2.1) Total GHG GRI 305: Dividing annual emissions Intensity emissions per output Emissions 2016 (numerator) by relevant measures of scaling factor economic output (denominator). E2.2) Total non-GHG Scaling factors set by reporting emissions per output company. scaling factor Examples include: Revenues, sales, production units, employee headcount, physical floor space. Environment E3. Energy E3.1) Total amount GRI 302: Typically measured in megawatt- Usage of energy directly Energy 2016 hours (MWh) or gigajoules (GJ). consumed Direct energy is produced and E3.2) Total amount consumed on company-owned or of energy indirectly operated property. consumed Indirect energy is produced elsewhere (i.e., utilities). E4. Energy Total direct energy GRI 302: Dividing annual consumption Intensity usage per output Energy 2016 (numerator) by relevant measures of scaling factor physical scale (denominator). Examples include: Revenues, sales, production units, employee headcount, physical floor space. E5. Energy Mix Percentage: Energy GRI 302: Ener- Quantifying the specific energy usage by generation gy 2016 sources most directly used by the type company. “Generation type” set by reporting company; examples include renewables, hydro, coal, oil, natural gas. E6. Water E6.1) Total amount GRI 303: Water Water consumed, recycled, and Usage of water consumed and Effluents reclaimed annually, in cubic meters E6.2) Total amount 2018 (m3). of water reclaimed 10 ESG DISCLOSURE GUIDANCE FOR LISTED COMPANIES Corresponding Corresponding Category Metric Calculation Notes GRI Standard SDG E7. E7.1) Does GRI 103: Publish a commitment, position Environmental your company Management statement, or a policy document Operations follow a formal Approach that covers this subject. Environmental 2016* Examples of management systems: Policy? Yes/No ISO14001: Environmental E7.2) Does your management system. company follow specific waste, ISO 50001: Energy management water, energy, and/ system. or recycling polices? Yes/No E7.3) Does your company use a recognized energy Environment management system? E8. Does your GRI 102: Does your company cover Environmental Management General sustainability issues in senior Oversight Team oversee Disclosures management (as part of the official and/or manage 2016 agenda) or has a management sustainability issues? committee dedicated to Yes/No sustainability-related issues? E9. Does your Board GRI 102: Does your company cover Environmental oversee and/ General sustainability issues in board Oversight or manage Disclosures meetings (as part of the official sustainability issues? 2016 agenda) or has a board committee Yes/No dedicated to sustainability-related issues? E10. Climate Total amount Companies measure the total AED Risk Mitigation invested, annually, amount invested in climate-related in climate-related issues, including R&D spend, if any. infrastructure, resilience, and product development 11 ESG DISCLOSURE GUIDANCE FOR LISTED COMPANIES Corresponding Corresponding Category Metric Calculation Notes GRI Standard SDG S1. CEO Pay S1.1) Ratio: CEO GRI 102: As a ratio: the CEO Salary & Bonus Ratio total compensation General (X) to Median (FTE - Full Time to median Full Time Disclosures Equivalent) Salary, usually expressed Equivalent (FTE) total 2016 as “X:1” compensation S1.2) Does your company report this Use total compensation, including metric in regulatory all bonus payments and incentives. filings? Yes/No S2. Gender Ratio: Median male GRI 405: As a ratio: the median total Pay Ratio compensation to Diversity and compensation for men compared to median female Equal the median total compensation for compensation Opportunity women. 2016 Reported for Full Time Equivalent (FTEs) only; Use total compensation, including all bonus payments and incentives. S3. Employee S3.1) Percentage: GRI 401: Percentage of total annual Turnover Year-over-year Employment turnover, broken down by various change for full-time 2016 employment types. employees Turnover includes all job changes, S3.2) Percentage: Social whether due to dismissal, Year-over-year retirement, job transition, or death. change for part-time employees S3.3) Percentage: Year-over-year change for contractors/ consultants S4. Gender S4.1) Percentage: GRI 102: Percentage of male-to-female Diversity Total enterprise General metrics, broken down by various headcount held by Disclosures organizational levels. men and women 2016 S4.2) Percentage: GRI 405: Entry- and mid-level Diversity and positions held by men Equal and women Opportunity S4.3) Percentage: 2016 Senior- and executive- level positions held by men and women S5. Temporary S5.1) Percentage: GRI 102: Percentage of Full-Time (or FTE- Worker Ratio Total enterprise General equivalent) positions held by headcount held by Disclosures non-traditional workers in the value part-time employees 2016 chain. S5.2) Percentage: Total enterprise headcount held by contractors and/or consultants 12 ESG DISCLOSURE GUIDANCE FOR LISTED COMPANIES S6. Non- Does your company GRI 103: Publish a commitment, position Discrimination follow non- Management statement, or a policy document discrimination policy? Approach that covers this subject. Yes/No 2016* S7. Injury Rate Percentage: Total number of injuries and Frequency of injury GRI 403: fatalities, relative to the total events relative to total Occupational workforce. workforce time Health and Safety 2018 S8. Global Does your GRI 103: Publish a commitment, position Health & company follow an Management statement, or a policy document Safety occupational health Approach that covers this subject. and/or global health 2016* & safety policy? Yes/ No S9. Child & S9.1) Does your GRI 103: Publish a commitment, position Forced Labor company follow a Management statement, or a policy document child and/or forced Approach that covers this subject. labor policy? Yes/No 2016* S9.2) If yes, does Social your child and/or forced labor policy also cover suppliers and vendors? Yes/No S10. Human S10.1) Does your GRI 103: Publish a commitment, position Rights company follow a Management statement, or a policy document human rights policy? Approach that covers this subject. Yes/No 2016 S10.2) If yes, does your human rights policy also cover suppliers and vendors? Yes/No S11. National- Percentage of The percentage of national FTE in isation national employees the workforce. S12. Commu- Amount invested GRI 413: Local Amount invested in the community, nity Invest- in the community, Communities as a percentage of company ment as a percentage of 2016 revenues. company revenues. 13 ESG DISCLOSURE GUIDANCE FOR LISTED COMPANIES G1. Board G1.1) Percentage: GRI 405: The percentage of women at the Diversity Total board seats Diversity and board. occupied by men and Equal The percentage of committee chairs women Opportunity held by women. G1.2) Percentage: 2016 Committee chairs occupied by men and women G2. Board G2.1) Does company Highlight the separation of the role Independence prohibit CEO from of chairman and CEO. serving as board Disclose the percentage of chair? Yes/No independent board members. G2.2) Percentage: Total board seats occupied by independent board Governance members G3. Incentiv- Are executives for- Describe links between executive ized Pay mally incentivized to performance and sustainability perform on sustain- performance, if any. ?ability G4. Supplier G4.1) Are your Publish a commitment, position Code of vendors or suppliers statement, or a policy document Conduct required to follow a that covers this subject. Code of Conduct? Yes/ No G4.2) If yes, what percentage of your suppliers have formally certified their compliance with the code? G5.1) Does your Publish a commitment, position company follow an statement, or a policy document Ethics and/or Preven- that covers this subject. tion of Corruption G5. Ethics & policy? Yes/No Prevention of G5.2) If yes, what Corruption percentage of your workforce has formally certified its compliance with the ?policy 14 ESG DISCLOSURE GUIDANCE FOR LISTED COMPANIES G6. Data G6.1) Does your Publish a commitment, position Privacy company follow a statement, or a policy document Data Privacy policy? that covers this subject. Yes/No G6.2) Has your company taken steps to comply with GDPR rules? Yes/No G7. Does your A company can publish a stand- Sustainability company publish a alone sustainability report or Reporting sustainability report? integrate sustainability information Yes/No in its annual report. G8. Disclosure G8.1) Does your Does your company publish a GRI, Governance Practices company provide CDP, SASB, IIRC, or UNGC based sustainability data report? to sustainability reporting frameworks? Yes/No G8.2) Does your company focus on specific UN Sustainable Development Goals (SDGs)? Yes/No G8.3) Does your company set targets and report progress on the UN SDGs? Yes/ No G9. External Are your sustainability * GRI 103: Please specify whether your Assurance disclosures assured or Management sustainability data has been verified verified by a third- Approach 2016 by a third party. Please highlight the party audit firm? Yes/ is to be used Key Performance Indicators (KPIs) No in combination that have been verified, if any. with the topic specific Standards 15 ESG DISCLOSURE GUIDANCE FOR LISTED COMPANIES Appendix B: Sustainability reporting frameworks The Global Reporting Initiative (GRI) is an international, not-for-profit organization working in the public interest towards a vision of a sustainable global economy where organizations manage their economic, environmental, social, and governance performance and impacts responsibly. Thousands of corporate and public sector reporters in over 90 countries use the GRI Guidelines. GRI’s activities are twofold: firstly, the provision of sustainability reporting guidelines and secondly, the development of engagement activities, products and partnerships to enhance the value of sustainability reporting for organizations. The International Integrated Reporting Council (IIRC) is a group of international leaders from the corporate, investment, accounting, securities, regulatory, academic, standard-setting and civil society areas with a mission to create the Integrated Reporting framework. The Framework will provide material information about an organization’s strategy, governance, performance and prospects in a concise and comparable format, a fundamental shift in corporate reporting. The Sustainability Accounting Standards Board (SASB), a non-profit U.S.- based organization, has a mission to create and disseminate accounting standards that reporting issuers can use to disclose material sustainability factors in filings with the Securities and Exchange Commission. Developing provisional standards for more than 80 industries in 10 sectors, SASB researches material factors within industries, convenes industry working groups, and conducts a public comment period to establish accounting metrics, and provides education on recognizing and accounting for material nonfinancial factors. The SASB Materiality Map is a visual tool that helps users identify SASB disclosure topics on an industry-by-industry basis and compare the potential materiality of various sustainability factors across different industries and sectors CDP (formerly the Carbon Disclosure Project) is a global not-for-profit organization, founded in 2000 and headquartered in London. CDP requests standardized climate change, water and forest information from some of the world’s largest listed companies through annual questionnaires sent on behalf of institutional investors that endorse them as ‘CDP signatories’. These shareholder requests for information encourage companies to account for and be transparent about environmental risk. 16 ESG DISCLOSURE GUIDANCE FOR LISTED COMPANIES The United Nations Global Compact (UNGC) is a strategic policy initiative for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labor, environment and anti-corruption. It comprises more than 13,000 organizations in 80 local networks worldwide. Business participants are expected to publicly report on their progress in an annual Communication on Progress The Sustainable Development Goals (SDGs) were born at the United Nations Conference on Sustainable Development in Rio de Janeiro in 2012. The objective was to produce a set of universal goals that meet the urgent environmental, political and economic challenges facing our world. These 17 Goals build on the successes of the Millennium Development Goals, while including new areas such as climate change, economic inequality, innovation, sustainable consumption, peace and justice, among other priorities. The goals are interconnected – often the key to success on one will involve tackling issues more commonly associated with another 17 ESG DISCLOSURE GUIDANCE FOR LISTED COMPANIES