The Amsterdam Declaration on transparency and reporting

On the 10th of March the Global Reporting Initiative launched its appeal to government leaders asking for a review of transparency and reporting regulations. The current financial crisis is presented as a direct consequence of a lack of transparency. The full text of the declaration follows:

We, The Board of The Global Reporting Initiative (GRI) believe that the lack of transparency in the existing system for corporate reporting has failed its stakeholders. While we recognize that certain governments have shown leadership on corporate sustainability disclosure, we call on all governments to extend and strengthen the global regime of sustainability reporting. In particular, assumptions about the adequacy of voluntary reporting must be re-examined.

We, The Board of GRI, conclude that:

· The root causes of the current economic crisis would have been moderated by a global transparency and accountability system based on the exercise of due diligence and the public reporting of environmental, social and governance (ESG) performance.

· The profound loss of trust in key institutions is best addressed by the adoption of a global reporting framework that enhances transparency and is informed by the legitimate interest of all key sectors of society.

· A revitalized and resilient economic system will only be sustained if it accounts for the full costs and value of ESG activity.

Therefore the Board of GRI calls on governments to take leadership by:

1. Introducing policy requiring companies to report on ESG factors or publicly explain why they have not done so.

2. Requiring ESG reporting by their public bodies – in particular: state owned companies, government pension funds and public investment agencies.

3. Integrating sustainability reporting within the emerging global financial regulatory framework being developed by leaders of the G20.

Beyond this we emphasize that the focus on the current financial crisis threatens to mask the century’s defining sustainability crisis which itself poses an even greater risk to our economies and societies.

2. Signatories

The Board of Directors of the Global Reporting Initiative comprises: Prof. Mervyn King (Chair), Ms. Jacqueline Aloisi de Larderel, Mr. Ignasi Carreras, Mr. Kishor A. Chaukar, Mr. John Elkington, Ms. Denise Esdon, Mr. John Evans, Mr. Sean Harrigan, Mr Ernst R. Ligteringen, Dr. Simon Longstaff, Mr. Herman Mulder, Mr. Kumi Naidoo, Mr. Peter Wong, Mr. Ricardo Young Silva.

3. About The Global Reporting Initiative

The Global Reporting Initiative has pioneered the development of the world’s most widely used sustainability reporting framework and is committed to its continuous improvement and application worldwide. This framework sets out the principles and indicators that organizations can use to measure and report their economic, environmental, and social performance.
www.globalreporting.org

Investing in Water

The third United Nations World Water Development Report, "Water in a Changing World", has been presented in Istanbul. Olcay Ünver, coordinator of the World Water Assessment Programme, stated that water management is going to become more and more difficult as time goes by. The crisis is already happening as in some regions access to drinkable and sanitized water is limited and insufficient. The situation is rapidly getting worse, being accelerated by population demographics. In particular, population growth and migration trends are significantly decreasing everybody's share of clean water. Economic growth also joined the picture, bringing to different consumption patterns which involve a significant increase in the use of water, the water we drink but most of all, the water we eat.

In fact Ünver explains that:

The concept is called virtual water or water footprints – the amount of water embedded in food or other commodities needed in production. This becomes important vis a vis economic growth when in emerging economies people start eating more meat rather than, say, grains or rice, or start eating three instead of two meals; it means a lot more water to produce the food. Also to manufacture the cars they want to drive and other consumer products demanded. On top of this you have to add the pollution that comes from a lot of these activities. That is another driver. It influences water resources.

The debate must be extended to decision makers that are not only the actual water managers. Investments in the water sector are and will be progressively needed in order to slow down the process and to prevent a worldwide water crisis.

Coca-Cola announced its intention to return all water used in its drink production to the environment "at a level that supports aquatic life and agriculture" (I'm deliberately not using their Water Neutral label, see here) by late 2010. In addition to this $30 million will be invested on water projects in Africa.

The South African chapter of the World Wide Fund for Nature (WWF) launched a programme in partnership with South African Breweries and the government's Working for Water Programme. The WWF Water Neutral Scheme is particularly targeted towards the private sector, allows participants to replenish water supplies by investing in projects that quantitatively supplement water supplies equal to their water usage.

The programme forms part of the government's Extended Public Works Programme and creates up to 30 000 jobs in rural areas each year.