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6

USEFUL INFORMATION

6.1

MIA BENCHMARK TECHNICAL DETAILS

6.3

CREDITS

6.2

GLOSSARY

6.2

GLOSSARY

Corporate Social Responsibility: CSR is defined here in line with the European Commission's Communication on CSR ("A Renewed EU Strategy 2011-14 for Corporate Social Responsibility,” October 25, 2011) as:

 

"the responsibility of enterprises for their impacts on society…[which involves] having a  process in place to integrate social, environmental, ethical, human rights and consumer concerns into their business operations  and core strategy in close collaboration with their stakeholders, with the aim of:

  • maximizing the creation of shared value for their owners/shareholders and for their other stakeholders and society at large;
  • identifying, preventing and mitigating their possible adverse impacts.”1

Triple-bottom-line, CSR, sustainability, environmental, social and governance (ESG) and integrated performance are terms used interchangeably in this report.

 

Enterprise2020: Enterprise2020 is the image of a company which develops innovative business practices and works together with its stakeholders to provide solutions for existing and emerging societal needs. CSR Europe strategy.

 

Environmental, Social and Governance (ESG) issues: investors use this term for non-financial management and performance aspects.

 

EU Directive on Non-Financial Disclosure: It requires companies concerned to disclose in their management report, information on policies, risks and outcomes as regards environmental matters, social and employee aspects, respect for human rights, anticorruption and bribery issues, and diversity in their board of directors. This will provide investors and other stakeholders with a more comprehensive picture of a company’s performance. Source: EU website

 

Externalities: “Externalities refers to situations when the effect of production or consumption of goods and services imposes costs or benefits on others which are not reflected in the prices charged for the goods and services being provided.” Source: OECD Glossary

 

GRI materiality definition: Material topics for a reporting organization should include those topics that have a direct or indirect impact on an organization’s ability to create, preserve or erode economic, environmental and social value for itself, its stakeholders and society at large. Source: GRI website

 

Grievance mechanisms: mechanisms initiated and/or run by companies themselves to handle grievances coming from the communities impacted by their operations, their suppliers/contractors.

 

IIRC materiality definition: For the purposes of integrated reporting <IR>, a matter is material if it is of such relevance and importance that it could substantively influence the assessments of providers of financial capital with regard to the organization’s ability to create value over the short, medium and long term. Source: Materiality Background Paper

 

Integrated – financial and non-financial - reporting: it is a process founded on integrated thinking that results in a periodic integrated report by an organization about value creation over time and related communications regarding aspects of value creation. The main target audience of integrated reporting is the investment community. Source: IIRC website

 

Integrated performance: is taking into consideration a company’s environmental, social and governance performance in parallel to financial performance to create a holistic view of the company`s results and value. Triple-bottom-line, CSR, sustainability, environmental, social and governance (ESG) and integrated performance are terms used interchangeably in this report.

 

Intrapreneurship: Intrapreneurs are employees who work in (large) organisations, develop innovative entrepreneurial solutions to business problems, and tackle social and environmental challenges profitably, where developing such solutions may not be within the scope of their job description.

 

MIA benchmark: Maturity and Integration Assessment and benchmark, developed by CSR Europe in 2014, provides companies with a solution to assess and benchmark the level of maturity and integration of their sustainability management in order to better understand and communicate internally improvement areas.

 

Sustainable development: "Humanity has the ability to make development sustainable to ensure that it meets the needs of the present without compromising the ability of future generations to meet their own needs." Source: Report of the World Commission on Environment and Development: Our Common Future, 1987

 

Triple bottom line: A phrase coined in 1994 by John Elkington and later used in his 1997 book "Cannibals With Forks: The Triple Bottom Line Of 21st Century Business" describing the separate financial, social and environmental "bottom lines" of companies. A triple bottom line measures the company's economic value, "people account" – which measures the company's degree of social responsibility and the company's "planet account" – which measures the company's environmental responsibility. Elkington argued that companies should prepare three bottom lines – the triple bottom line – instead of focusing solely on its finances, thereby giving consideration to the company's social, economic and environmental impact. Source: Investopedia

 

Triple-bottom-line, CSR, sustainability, environmental, social and governance (ESG) and integrated performance are terms used interchangeably in this report.

 

Value Chain: “It refers to the full lifecycle of a product or process, including material sourcing, production, consumption and disposal/recycling processes. A sustainable value chain approach enables both business and society to better understand and address the environmental [and social] challenges associated with the life cycle of products and services.” Source: World Business Council for Sustainable Development website

 

“Supply chains and value chains have clear definitions in business literature and operational thinking. Where a supply chain typically refers to the chain of suppliers inputting to a final product, value chain also encompasses thinking about the value created by the chain, particularly for end-use customers. In reflecting on how sustainability is incorporated into conventional supply chains, [we need] to consider the wider context of the value of that activity – to the suppliers themselves, but also to the end-use customer and a range of other stakeholders, including communities and governments.”

Source: UN Global Compact website

 

1 A Renewed EU Strategy 2011-14 for Corporate Social Responsibility, p.6

(http://ec.europa.eu/enterprise/policies/sustainable-business/corporate-social-responsibility/index_en.htm).