http://www.globalreporting.org/NR/rdonlyres/DDB9A2EA-7715-4E1A-9047-FD2FA8032762/0/G3_QuickReferenceSheet.pdf
Economic
ECONOMIC PERFORMANCE
EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.
EC2 Financial implications and other risks and opportunities for the organization’s activities due to climate change.
EC3 Coverage of the organization’s defined benefit plan obligations.
EC4 Significant financial assistance received from government.
EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts.
http://www.globalreporting.org/NR/rdonlyres/E74AF64F-D559-433E-A35B-096D7A89C241/0/G3IndicatorProtocolEconomicFSSSFinal.pdf
Performance data generated in response to the
Indicators in this section are expected to illustrate:
• The flow of capital amongst different stakeholders;
and
• The major economic impacts of the organization
throughout society.
The GRI requires reporters to disclose their revenue and payments to capital providers.
They ask for information on:
Direct economic value generated
a) Revenues Net sales plus revenues from financial investments and
sales of assets
Economic value distributed
b) Operating costs Payments to suppliers, non-strategic investments,
royalties, and facilitation payments
c) Employee wages and benefits Total monetary outflows for employees (current
payments, not future commitments)
d) Payments to providers of capital All financial payments made to the providers of the
organization’s capital.
e) Payments to government (by country – see note
below)
Gross taxes
f ) Community investments Voluntary contributions and investment of funds in the
broader community (includes donations)
d) Payments to providers of funds:
• Dividends to all shareholders;
• Interest payments made to providers of loans.
• This includes interest on all forms of debt and
borrowings (not only long-term debt) and also
arrears of dividends due to preferred shareholders.
So what is the thinking behind this and who can I talk to to understand it? Is this diclosure required of all GRI reporting companies?
Anglo Platinum
Main economic contribution to society is discussed in terms of tax and wages, and some philanthropy. In 2007, Anglo's returns to capital providers exceeded wages and taxes combined. What is a good balance?
http://angloplatinum.investoreports.com/angloplatinum_sdr_2007/html/angloplatinum_sdr_2007_13.php
| http://angloplatinum.investoreports.com/angloplatinum_sdr_2007/html/angloplatinum_sdr_2007_4.php Anglo Platinum - winner of the ACCA (check) sustainability reporting malarkey, ownership and distribution of wealth and power is a big deal for south africa. Ownership and joint ventures | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Will the mining company achieve HDSA participation, in terms of ownership of equity or attributable units of production, of 15% in HDSA hands within five years and 26% within ten years? http://angloplatinum.investoreports.com/angloplatinum_sdr_2007/html/angloplatinum_sdr_2007_14.php#2 Anooraq Resources and Mvela Resources already have broad-based ownership structures and share Anglo Platinum's principles and objectives for the promotion of broad-based and meaningful participation of women, communities and employees. Anglo Platinum’s commitment to transformation and broad-based BEE (Black economic empowerment) has been expressed in a groundbreaking deal with Anooraq Resources and Mvela Resources. The sale by Anglo Platinum of mining assets Anglo Platinum, Anooraq Resources and Mvela Resources agreed on transactions that will result in the creation of two substantial, HDSA managed and controlled South African platinum group metal (PGM) producers, which will have critical mass and significant growth potential. In terms of the transactions, Anglo Platinum will sell an effective 51% of Lebowa Platinum and an effective 1% of the Ga-Phasha project for a total consideration of R3.6 billion to Anooraq. Following this transaction Anooraq, being the current owner of 50% of Ga- Phasha, will own an effective 51% of Lebowa and Ga- Phasha through a newly created vehicle. Mvela Resources will purchase Anglo Platinum's 50% interest in the Booysendal project and 22.4% direct interest in Northam for a total consideration of R4 billion. Anglo Platinum and Anooraq have also agreed in principle to transfer, in due course, their respective 50% interests in the Boikgantsho and Kwanda Joint Venture projects into the newly created vehicle. will transfer assets to the value of approximately R35 billion to HDSA control. (AP is establishing an ESOP plan that will cover 1.5% of APs issued share capital) establish an employee share ownership plan (ESOP) that will benefit more than 43,000 employees. The new scheme covers all employees who do not participate in any Anglo Platinum share scheme and will comprise up to 1.5% of Anglo Platinum's issued share capital. Aiming also for greater economic justice through procurement: In 2007, services and products worth R7.4 billion were procured from HDSA vendors.This represents 32.2% of the Group's discretionary procurement against a target of 28%. Our spend with HDSA vendors has grown steadily over recent years:
The number of HDSA-owned, empowered and influenced vendors on our registered vendor database increased by 225 in 2007 to 1,445 companies
http://www.sumocoal.co.za/procurement.php Sumo Coal subscribes to the policy of preferential procurement and the development and investment in Small medium enterprises (SME). Our procurement policy sets out short term and long term objectives for BEE procurement which are reasonable and achievable. We intend increasing our expenditure in HDSA owned and empowered companies so as to contribute to economic sustainable development. This approach will give HDSA an opportunity to participate actively in the mining sector. In our policy, unless the context indicates otherwise, Broad base black economic empowerment means the economic empowerment of all black people including women, workers, youth and people with disabilities and people living in rural areas through diverse but integrated socio-economic strategies that include, but are not limited to :
INteresting to check out other Acca shortlist - BP and BT BP - also uses GRIs G3 framework http://www.bp.com/liveassets/bp_internet/globalbp/STAGING/global_assets/e_s_assets/downloads/bp_sustainability_report_2007.pdf They record their payments to shareholders ($8,106m), employees (inc share ownership and benefits - $11,263m) and taxes ($13,267m). Very different distribution to Anglo. Don't know total revenues, profits or margins from Sustainability report. This information will obviously be in financial report. Interesting to compare the proportions of these distributions by company (why?). This is the extent of their consideration of their economic impact - a deeper look at their impact on environment and development - development angle focuses on investment in communities. Nothing on ownership and distribution of power and resources other than what's in the 5 year statement. BT http://www.btplc.com/Societyandenvironment/Ourapproach/Sustainabilityreport/section.aspx?sectionid=5aa1be8f-f6db-4918-a486-ec03e651e56d BT revenue of £20,704 million to employees: GBP5,358m to shareholders:
The tax charge for the 2008 financial year was a net charge of £238 million and comprised a charge of £581 million on the profit before taxation and specific items, offset by tax relief of £343 million on certain specific items. The value BT added to the UK’s economy was over £10 billion in the 2006 financial year and supported the employment of almost 173,000 people. 2006 - Accountability did a study of indirect economic impacts of BT Produced a paper on it concluded - “BT is an important player in the dynamic ICT market in the UK and across the world. Along with other ICT providers, BT’s converging services are changing the way learning is provided, products are devised, people are governed, teams are managed, services are consumed and entertainment is delivered. By managing is indirect economic impacts, BT can help build the responsible competitiveness of the host economies of the countries in which it operates, from UK PLC to the global village and from Brussels to Bangalore.” BT considers its wider impacts in its report in terms of employment and tax, and 'direct economic impact' in a separate category but i don't know what that means. http://www.btplc.com/Societyandenvironment/Ourapproach/Sustainabilityreport/section.aspx?sectionId=3752F85F-76A0-4B58-A8D6-44CEA2E01411 They've got a sustainable economic growth programme one of their four key objectives is this: To create business models that make a difference and inspire people to find new answers Clive Ansell, President of Strategy, Marketing and Propositions for BT Global Services is the champion for sustainable economic growth. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
