[ESG Management Column] International Standards for Companies: ISO, GRI, UN Global Compact

[ESG Management Column] International Standards for Businesses: ISO, GRI, and UN Global Compact

This article systematically explains the procedures and analytical criteria that businesses must follow to obtain international certifications. It also organizes this information in a way that other companies can use. This includes an understanding of each standard, the preparation process, and how to apply them in practice.

1. Certification Preparation Process

1.1 Setting Certification Goals
Understanding the Goals: Companies must decide which international standard they want to pursue certification for, such as ISO, GRI, or UN Global Compact.
Understanding Importance: Evaluate the significance of each certification and its impact on the business.

1.2 Initial Assessment and Self-Diagnosis

Current Status Analysis: Businesses need to conduct a self-diagnosis to determine how well their current operating and management systems align with the criteria of each certification.

Gap Analysis: Identify the difference (gap) between the required standards and the current status to clarify areas that need improvement.

2. Approach Based on Each Certification Standard

2.1 ISO Certification (e.g., ISO 14001, ISO 26000)
System Establishment: Establish or improve the management system in accordance with the relevant ISO standards.
Documentation: Document procedures, policies, and performance records to prepare for presentation during the ISO audit process.
Internal Audit: Conduct an internal audit before the certification audit to finalize the preparation status.

2.2 GRI (Global Reporting Initiative)
Sustainability Reporting: Assess the impact of business activities on sustainability and prepare a report according to the GRI standards.
Maintain Transparency: Ensure data accuracy and transparency throughout the reporting process.

2.3 UN Global Compact
Principle Compliance: Integrate the ten principles of human rights, labor, environment, and anti-corruption into business operations.
Activity Report Preparation: Regularly review compliance with the principles and submit an annual report to the UN Global Compact.

3. Certification Application and Evaluation

3.1 Cooperation with Certification Bodies
Certification Body Selection: Select an appropriate certification body and understand the application procedure.
Certification Application: Prepare all necessary documents and supporting materials and submit them to the certification body.

3.2 External Audit and Evaluation
External Audit: Undergo an external audit conducted by the certification body.
Result Receipt: Based on the audit results, confirm the certification status and, if necessary, take additional corrective actions.

4. Continuous Improvement After Certification

4.1 Continuous Monitoring and Improvement

Monitoring: Even after obtaining certification, businesses must continuously monitor internal processes and systems to ensure that they consistently meet certification criteria.
Improvement Plan: Develop and implement an improvement plan for any identified problems or areas with potential for improvement during the monitoring process.
4.2 Training and Awareness Enhancement

Training Programs: Provide employees with regular training programs to enhance their understanding of the importance of certification criteria and the company's policies and procedures.
Awareness Enhancement: Plan and implement activities to raise awareness of the value of certification and the company's sustainability goals both internally and externally.

4.3 Certification Maintenance and Re-certification

Certification Maintenance: Most certifications have a validity period, so re-evaluation must be conducted periodically to maintain the certification.
Re-certification Preparation: The re-certification process is similar to the initial certification process, but it should incorporate lessons learned and improvements from the previous certification process.

4.4 Communication with Stakeholders

Communication Plan: Develop a plan to effectively communicate certification results and ongoing improvement efforts to stakeholders.
Transparency: Transparently share the certification process, corrective actions, and results with stakeholders to build trust and maintain sustainable relationships.

The certification process is a crucial step for businesses to not only achieve certification but also demonstrate their commitment to sustainability and build trust with internal and external stakeholders. Therefore, continuous monitoring, training, communication, and improvement efforts are essential even after certification. Through these processes, companies can strengthen the foundation for sustainable development and enhance their competitiveness.

Summarizing the ISO certification, GRI (Global Reporting Initiative), and UN Global Compact certification processes by site, according to the approach and business objectives.

ISO Certification Process

System Establishment and Documentation
Business Objective: Establishing and improving management systems that comply with ISO standards.
Approach: Document all procedures, policies, and performance of the management system, and prepare for audit based on these documents.

Internal Audit

Business Objective: Checking the readiness for the audit.
Approach: Confirm the readiness of the system and the accuracy of the documented information through internal audits.
GRI (Global Reporting Initiative)
Sustainability Reporting

Business Objective: Evaluating and reporting the impact of business activities on sustainability.
Approach: Prepare a sustainability report according to the GRI standards.

Maintaining Transparency

Business Objective: Ensuring data accuracy and transparency.
Approach: Focus on data management and verification during the reporting process.

UN Global Compact
Principle Compliance

Business Objective: Integrating the ten principles of human rights, labor, environment, and anti-corruption.
Approach: Self-review the compliance status throughout the business operations.

Activity Report Preparation

Business Objective: Regular review and reporting of principle compliance status.
Approach: Submit a detailed annual report on the status of principle compliance and improvement activities.

-Certification Application and Evaluation

Cooperation with Certification Bodies

Business Objective: Selecting a certification body and understanding the application process.
Approach: Select an appropriate certification body and submit the necessary documents and supporting materials.

External Audit and Evaluation

Business Objective: Conducting an external audit and receiving the results.
Approach: Undergo an external audit conducted by the certification body and take additional corrective actions if necessary based on the results.
Each certification process has been categorized by site and organized according to the approach and business objectives. This allows businesses to enhance accessibility and prepare for certification more effectively.

To obtain certification for excellent ESG (Environmental, Social, and Governance) management, businesses can seek certification from various organizations. However, my knowledge is limited to September 2021, so for the latest information, you need to check the official websites of these organizations. Below are some recommended organizations for ESG management certifications and links to information about their procedures:

GRI (Global Reporting Initiative): Provides international standards for sustainability reporting.

Official Site: https://www.globalreporting.org/
Certification Process: The GRI's official website provides guidelines and procedures for reporting according to the GRI standards. The focus is on creating reports that adhere to GRI standards rather than a direct 'certification' process.

ISO 26000: An international standard that provides guidance on social responsibility, not a certification.

Official Site: https://www.iso.org/iso-26000-social-responsibility.html
Procedure: ISO 26000 is a guideline for organizations to implement social responsibility, not a certification standard. Therefore, while not a direct certification site, it can serve as a reference for ESG management.

SASB (Sustainability Accounting Standards Board): Provides sustainability accounting standards specific to certain industries.

Official Site: https://www.sasb.org/
Procedure: Companies can disclose sustainability information in accordance with SASB standards. The SASB website provides industry-specific standards and reporting guides.

CDP (Carbon Disclosure Project): An organization that helps businesses and governments manage and disclose greenhouse gas emissions, water use, and deforestation.

Official Site: https://www.cdp.net/en
Procedure: CDP provides questionnaires that encourage businesses to disclose environmental information. This allows businesses to have their environmental performance evaluated.

In addition, businesses can utilize ESG-related certifications and evaluation services provided by national ESG rating agencies and financial institutions. It is crucial to visit the official websites of these organizations to obtain the latest information and procedures.

Source: [ESG Management Column] International Standards Businesses Should Know: ISO, GRI, and UN Global Compact: Disability Awareness Newspaper - https://dpi1004.com/4157