One of the explicit commitments that a company makes when it joins the UN Global Compact is to produce an annual Communication on Progress (COP). This is a requirement of participation that serves several important purposes:
- to instill accountability;
- to drive continuous improvement;
- to safeguard the integrity of the UN Global Compact as a whole; and
- to contribute to the development of a repository of corporate practices.
COP and Sustainability Reporting
In recent years, more and more companies large and small have developed corporate sustainability reports. The COP policy is a reflection of this trend towards greater accountability and transparency. A COP is a disclosure to stakeholders on progress made in implementing the ten principles of the UN Global Compact, and in supporting broad UN development goals.
Criteria for Communication on Progress
The COP should be mainstreamed in the company’s existing communications methods. While the format for a COP is flexible, it must contain three important elements:
- A statement by the CEO (or equivalent) expressing continued support for the Global Compact and renewing the participant’s ongoing commitment to the initiative and its principles;
- A description of practical actions (i.e., activities and, if applicable, policies) the company has taken to implement the Global Compact principles and to support broader development goals. During the first five years of participation, a COP must address at least two of the Global Compact’s principle issue areas (human rights, labor, environment, anti-corruption), while all four must be addressed after five years;
- A measurement of outcomes (i.e., identify targets, define performance indicators, or measure outcomes).
Who has to communicate what and when?
- After joining the Global Compact, the company has one year to submit its first COP. After that, the COP must be submitted on an annual basis.
- During the first five years of participation, each COP must address at least two of the UN Global Compact’s four principle issue areas, and all four must be addressed within these first five years.
- Non-business participants are not required to submit a COP.
What happens when a company fails to communicate on progress?
- If a company misses the deadline for COP submission, it will be marked as “non communicating” on the official website of the Global Compact. After a year of being “non communicating” the company will be delisted.
More details about the Communication on Progress can be found on the official website of the Global Compact.
COPs of Austrian Global Compact participants can ben found here.
