The Sustainability Code - FRDO - CFDD · The Sustainability Code is backed up by 16 EFFAS and/or 28 GRI performance indicators 8. ... OECD-Guidelines for multinational companies,

The Sustainability Code - a practical tool for enterprises & finance

Yvonne Zwick

Deputy Secretary General, Head of the Sustainability Code Office

The German Council for Sustainable Development (RNE)

Founded by former Federal Chancellor Gerhard Schröder in 2001

Federal Chancellor Angela Merkel extends mandate by three years and

appoints 15 members from civil society, science and private sector

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Three main tasks

Advises the federal government on sustainability

matters and the National Sustainable

Development Strategy

Fosters public debate on sustainability

Specifies fields of action and supports

sustainability projects

The RNE initiates projects that contribute to a sustainable development

“Sustainable development means taking environmental, social and economic

aspects equally into account.”

The council emphasizes this triangle in its projects.

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The Sustainability Code

Regional Hubs for Sustainability

Strategies (RENN)

The Sustainable Shopping Basket

“Sustainable City” dialogue – mayors for

sustainable development in municipalities

ProjektNachhaltigkeit

German Action Days for SD

Hub for Sustainable Finance (H4SF)

Fund for Sustainability Culture

Peer Review

(2018)

SDG Educational Competition

Selected projects:

www.sustainabilitycode.org

Main goal of the Code: re-set the frame-

work conditions for economic success.

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Creates comparative frameworks

to enable competitors to compare

sustainability performance using

standardised minimum requirements

Facilitates mainstreaming

through public access to sustainability

information using the Code’s database

Promises efficiency on the market

and aims to lower transaction costs and

achieve standardisation through capital

market actors

Fosters environment for market-

driven rewards by addressing new

investor groups, promoting investment

opportunities and channelling capital

flows into sustainable business models


Five benefits for users

1. Makes reporting easier and comparable. Is of benefit for civil

society discussion on responsible business conduct.

2. Meets the EU’s reporting obligation, has integrated German

Implementation Act, NAP Business & Human Rights.

3. Offers tailor-fit access to reporting to organizations of all sizes

and legal forms

4. Is setup on international frameworks and as such usable in global

supply chains.

5. Recognised control instrument for sustainable management.

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§ reporting according to

the NFR Directive

Reporting accoding to

NAP Business and Human

Rights

Options for reporting with the SustyCode

Susty Code declaration with 20

criteria GRI SRS

EFFAS KPIs

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• Private sector addressed with material transparency requirements defined by RNE, developed in stakeholder process

• Clear business case orientation, integration into core business, focussing on long-term strategies, looking for risks & opportunities

• transparency standard structured in 4 areas: Strategy, Process Management, Environment, Society (20 criteria + selected GRI G4/ EFFAS KPIs)

• Implemented with help of bottom-up training concept in regional networks (chambers of commerce, training partners)

• Shareware; the Code and it’s database are ready to use free of charge

making companies’ sustainability performance transparent, comparable and easily accessible.

What is reporting according to the

Sustainability Code?

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The standard: four areas with twenty

criteria

StrategyCriteria 1-4

Process

ManagementCriteria 5-10

EnvironmentCriteria 11-13

SocietyCriteria 14-20

• Strategic analysis and

action

• Materiality

• Objectives

• Depth of the value

chain

• Employment rights

• Equal opportunities

• Qualifications

• Human rights

• Corporate citizenship

• Political influence

• Conduct that complies

with the law and policy

• Responsibility

• Rules and processes

• Control

• Incentive schemes

• Stakeholder

engagement

• Innovation and

product management

• Usage of natural

resources

• Resource

management

• Climate-relevant

emissions

The Sustainability Code is backed up by 16 EFFAS and/or 28 GRI performance indicators

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The Code criteria are backed up by GRI

and/or EFFAS indicators

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14. Employees’ rights

15. Equal opportunities

16. Qualification

Soci

ety


Key data on scope of validity and

application

• The Code can be readily applied to all sizes and organisational and legal forms

• Relates to the same area of consolidation, such as the financial report

• Implementable on a “comply or explain” basis with greater binding character

• Supplemented by performance indicators relating to environmental, social and

governance issues (KPIs for ESG) of GRI/ EFFAS/ DVFA

• Refers to: OECD-Guidelines for multinational companies, UN Global Compact,

ISO 26000

• Room for manoeuvre due to branch-specific differentiation, explain boxes,

materiality

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The process: support by competent

training partners.

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The Code-training partners

Selected training partners with long-term

knowledge in

• CSR/sustainability

• training in organizations

• reporting

The step is to fill out a questionnaire and

to take part in a training course on the

Sustainability Code. Afterwards training

partners offer courses on the content of

the Code’s Toolbox or conduct training

events at intermediaries.

Service and support

• The Code training

• The Code templates and Toolbox

• The Code training partner signet

• Listing in the Code event schedule

• The Code website listing

• Establishing contact with

companies, organizations and other

intermediaries

• Liaising of companies to provide

best-practice examples (Code

mentors)

• Newsletter on the code and its

political development, follow-up

on @NHKodex

www.deutscher-nachhaltigkeitskodex.de @NHKodex

Over 700 published Code Declarations

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Banking, Insurance, Finance

Consultancies

Other Services

Housing and Real Estate Industry

Consumer Goods

Other Sectors

Retail

Nutrition & Beverage

industry

Transport, Logistics,

Mobility

as at 23.10.2018

www.deutscher-nachhaltigkeitskodex.de @NHKodex

Code Declarations per annum

13

0

50

100

150

200

250

300

350

2010 2011 2012 2013 2014 2015 2016 2017

The numbers of Sustainability Code declarations rise continually.

Reporting year


90% of Banking,

Insurance and Finance

Appropriate instrument to meet reporting

requirements

14

65% sind

berichtspflichtig

Total of Susty Code users, that have published a Code declaration

2017

Sustainability Code users, which are

obliged to report, with declaration reporting

year 2017

54%

Reporting obligated

companies


The concept of sustainability is given more

concrete form

.

➢ Universality

➢ Principles, goals, indicators

➢ Measures

“… meeting the needs of the present

without compromising the ability of

future generations

to meet their own needs.”


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Key milestone in Paris

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Since 2002: German Sustainable Development Strategy

Data is compiled by the Federal Statistical Office

Supplemented by own contributions from Sustainability Council

Peer review by international sustainability experts (next one: 2018)

2002 2004 2008 2012 2016

www.deutscher-nachhaltigkeitskodex.de @NHKodexBerlin, 30.06.2015

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Company

Intermediaries

(e.g. rating agencies,

data providers,

rankings or funds)

Broker/

Analysts

NGO

Asset

managers

Investors

(e.g. Pension

funds)

Sustainability reports

Investment

recommen-

dation

Investment

management.

Raw data

Edited, normalized data

Additional information on companies, esp. controversies

Raw data, edited data and ratings

Sustainability report as additional information / for verification19

ESG data is used by multiple actors.


Future prospect: The Sustainability

Code can…

• create coherence between policy fields and reporting requirements; next steps:

SDG integration and discussion on materiality in nfr

• nudge towards climate scenario reporting (science based targets according to

TCFD), perspective on EESG impact

• connect the discussions on Sustainable Finance, NFR, SDG and European

economic model in a fruitful way

• support capacity building within companies and financial sector as well as

informed public discussion

• create market relevance for sustainability issues through comparable, reliable

data

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Sustainability in the financial sector

Tangible forward dynamic toward sustainable investing and ESG integration

More and more new initiatives worldwide driving the topic


El Código de Sostenibilidad

Кодекс устойчивого

развития


The Sustainability Code is open for

national adaption.

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German SustyCode

organized by RNE

Greek SustyCode

organized by QNF

The Sustainability Code


Contact:

Sustainability Code Office

Email: [email protected]

Tel.: 0049 30 338 424 888

Twitter: @NHKodex

[email protected]


www.h4sf.de/en

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Documents

The Sustainability Code - FRDO - CFDD · The Sustainability Code is backed up by 16 EFFAS and/or 28 GRI performance indicators 8. ... OECD-Guidelines for multinational companies,