Use of the Guidance on Core indicators for entity reporting on the contribution towards the attainment of the Sustainable Development Goals (GCI) in Guatemala to report on the contribution of the private sector to the implementation of the SDGs

#SDGAction43041

Description

Intro

UNCTAD developed Guidance on a limited number of core SDG indicators for companies reporting. The Guidance is based on elaborations on the SDG reporting issue over the last three years during the annual sessions of the Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting (ISAR) and at the intersessional forums, including Consultative Group meetings convened by UNCTAD from 2016 to 2018. During these discussions a limited number of core SDG indicators in the economic, environmental, social and institutional areas has been identified, based on key reporting principles, selection criteria, main reporting frameworks and companies reporting practices.

Objective of the practice

UNCTAD has developed the Guidance on Core indicators for entity reporting on the contribution towards the attainment of the Sustainable Development Goals, which includes a limited number of core SDG indicators in companies reporting. The Guidance considers indicators in 4 areas i.e. economic, environmental, social and institutional. For each reporting indicator (micro-level or company level), a most relevant SDG indicator (macro level) and its metadata guidance is referred to, in order to facilitate the alignment between the micro- and macro-level indicators. 
It provides practical information on how these core indicators could be measured in a consistent manner and in alignment with countries’ needs on monitoring the attainment of the SDG Agenda. It is intended to serve as a tool to assist governments to assess the private sector contribution to the SDG implementation and to enable them to report on SDG indicator 12.6.1. Target 12.6 explicitly encourages companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycles. And SDG indicator 12.6.1 requires data on the number of companies publishing sustainability reports. The Guidance also intends to assist entities to provide baseline data on sustainability issues in a consistent and comparable manner that would meet common needs of many different stakeholders of the SDG agenda. 
The core indicators are being pilot tested at the country level with a view to confirm their usefulness and feasibility. As a result, some indicators might be replaced, added or eliminated. Country case studies are being prepared for this purpose, including in Guatemala. 
The Government of Guatemala has partnered with Centrarse, a private sector organization, to collect sustainability reporting indicators. These have been harmonized in all Central America. Therefore, the case study will include a regional component and make emphasis on the use of indicators by SMEs. Guatemala will present a VNR at the HLPF in 2019, Centrarse will be in charge of collecting information on the private sector contribution to the SDGs and the GCI indicators will be very useful in this regard.

Partners

The implementation of the GCI in Guatemala will benefit the Government by strengthening its capacity to measure and monitor the private sector contribution to the 2030 Agenda for Sustainable Development. In addition, the preparation of the country case study will provide additional information of the applicability in the particular context of Guatemala and Central America. The Government of Guatemala, Centrarse, and selected reporting companies are participating in the exercise.
The GCI has been developed with the advice of a Consultative group of experts. And it will be further validated through the preparation of country case studies.

Implementation of the Project/Activity

A country case study on the practical implementation of the GCI is in the process of being prepared. It will provide practical evidence of the applicability of the core indicators to the companies in Guatemala and in particular to SMEs, which are the majority of companies in the country. The case study will also provide information about the applicability of the core indicators in Central America.
UNCTAD counts will the support of the Government of Guatemala and Centrarse, a private sector organization, in charge of collecting sustainability reporting indicators in the country. In addition, the indicators are also collected in Central America. Thus, the use of UNCTAD’s core indicators could be extended to all Central America through the already existing mechanism to collect data.

Results/Outputs/Impacts

The country case study in Guatemala will provide useful evidence on the applicability of the core indicators to the national context and in particular to Small and Medium-Sized enterprises that account for the lion’s share of companies in the country. The indicators provide quantitative information on the contribution of the private sector to the implementation of the SDGs. It will be a tool to gather information needed for the country to measure and monitor progress and also to prepare the Voluntary National Review. In addition, in the particular case of Guatemala where the government has partnered with Centrarse (a private sector organization) to collect information on sustainability indicators, the application of the GCI could be done much faster than in other countries where there is no mechanism to report directly to the government on these issues.

Enabling factors and constraints

Enabling conditions: The need for a harmonized approach to report on the private sector contribution to the achievement of the SDGs. The development of the guidance during the ISAR annual sessions, benefiting from its network of experts and the consultative group that contributed to its development.
Constraints: Lack of one internationally recognized benchmark for sustainability reporting and existence of various frameworks that are applied voluntarily in many cases.
New approach: A set of core indicators in the economic, environmental, social and institutional areas, identified based on key reporting principles, selection criteria, main reporting frameworks and companies reporting practices; applicable to all type of entities. They represent a baseline and consider financial, environmental and social materiality of the company’s activities and its impact not only for the investors but also to the consumers, civil society and employees.

Sustainability and replicability

The indicators can be used by all countries and once the country case studies are finalized, they will provide useful evidence on their practical implementation. This may result in some modifications to the list of indicators.
UNCTAD is also currently undertaking the implementation of a Development Account project entitled Enabling policy frameworks for enterprise sustainability and SDG reporting. The project’s main objective is to strengthen the capacities of Governments to measure and monitor the private sector contribution to the 2030 Agenda for Sustainable Development. There are 4 beneficiary countries i.e. Brazil, Colombia, Kenya and South Africa. In addition, regional workshops are part of the activities in order to share experience and lessons learned to other countries in these regions.

Conclusions

Countries require information on the contribution of the private sector to the implementation of the SDGs at the national level. In addition, UNCTAD is co-custodian of indicator 12.6.1 together with UNEP. Indicator 12.6.1 requires data on the number of companies publishing sustainability reports. Several other SDG indicators refer to data already being provided by many enterprises in their reports, such as on the use of energy and water, carbon dioxide emissions, waste generation and recycling, and to human resource management, gender equality and community development, among others. 
Company reporting could therefore be an important source of information for the SDGs monitoring framework. As a primary source of information on company performance, reporting can enrich and enhance Goals monitoring mechanisms by providing stakeholders such as Governments, civil society and capital providers with the means to assess the economic, environmental and social impacts of companies on sustainable development. 
Relevant data on companies’ contribution towards the SDGs is critical for assessing the progress of the SDG implementation; enhancing the SDG-oriented corporate governance mechanisms, decision making by investors and other key stakeholders; as well as promoting behavioural change at the enterprise level. The SDG agenda requires comparable and reliable data reflecting companies’ performance towards targets and indicators agreed by the United Nations’ member States. This in turn gives a new impetus towards aligning harmonization of sustainability reporting with the SDG monitoring framework. 
The GCI is also relevant to the reporting on indicator 12.6.1, as they can be useful criteria to determine which companies should be counted towards the indicator. The also provide a baseline of quantitative information that is applicable to all type of companies and will be consistently prepared allowing for comparison and assessment of progress. 
In the case of Guatemala, the success of implementation of the GCI will allow to extend the practice to all Central America due to the already existing reporting mechanism in terms of sustainability indicators.

Other sources of information

https://unctad.org/en/Pages/DIAE/ISAR/UNDA-Project-1819H.aspx
https://isar.unctad.org/blog/2018/10/22/sustainability-reporting-and-sd…
Guidance on Core indicators for entity reporting on the contribution towards the attainment of the Sustainable Development Goals
Issues note 35th session of ISAR: Enhancing the comparability of sustainability reporting: Selection of core indicators for entity reporting on the contribution towards the attainment of the Sustainable Development Goals

SDGS & Targets

Goal 7

Ensure access to affordable, reliable, sustainable and modern energy for all

Goal 9

Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

Goal 4

Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all

Goal 8

Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

Goal 6

Ensure availability and sustainable management of water and sanitation for all

Goal 10

Reduce inequality within and among countries

Goal 5

Achieve gender equality and empower all women and girls

Goal 16

Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels

Goal 17

Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development

Goal 12

Ensure sustainable consumption and production patterns

Goal 3

Ensure healthy lives and promote well-being for all at all ages

Deliverables & Timeline

N/A

Resources mobilized

Resources

Staff / Technical expertise

Technical expertise in the development of the case study will be provided

Partnership Progress

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Action Network

This initiative does not yet fulfil the SMART criteria.

Timeline

28 November 2018 (start date)

01 January 1970 (date of completion)

Entity

UNCTAD

SDGs

7 9 4 8 6 10 5 16 17 12 3

Region

Latin America and the Caribbean

Geographical coverage

The GCI is applicable globally and it was developed to be used by all type of companies. It covers the economic, environmental, social and institutional areas.

Website/More information

N/A

Countries

Guatemala

Contact Information

ISABEL GARZA RODRIGUEZ, ECONOMIC AFFAIR OFFICER

GARZAI@UN.ORG