Investments aligned with this Strategic Goal aim to improve equity of opportunity and treatment by ensuring that employment opportunities are not restricted on the basis of sex, race, ethnicity, or belief. Investments may also aim to improve mechanisms for engaging workers and giving them ‘voice’ through effective representation by trade unions and similar organizations, as well as by promoting channels to communicate, raise concerns, and collaboratively find solutions together with management. Finally, investments may also go beyond ESG compliance and risk mitigation to invest in companies that positively contribute to the respect and support of fundamental human rights (for example, by improving transparency or addressing root causes on topics such as forced, bonded, and child labor).
Investors interested in deploying this strategy should consider the scale of the addressable problem, what positive outcomes might be, and how important the change would be to the people (or planet) experiencing it.
Key questions in this dimension include:
The ILO has laid out four universal principles which apply to all workers, regardless of whether the country they are in has ratified the relevant binding international labor standard: (a) freedom of association and effective recognition of the right to collective bargaining, (b) the elimination of forced or compulsory labor, (c) the abolition of child labor, and (d) the elimination of discrimination in respect to employment and occupation (1).
Nevertheless, any workers around the world face multiple challenges exercising their rights and achieving respect and cooperation in the workplace in accordance with labor standards. Union and social leaders are frequently oppressed, with reports in 2019 in 80% of countries around the world of breaches in the right to collective bargaining (2). Forced labor persists in many supply chains (such as cobalt, cotton, seafood, cocoa, and coffee), as does child labor, which is especially prevalent in agriculture, among other sectors. Discrimination based on migration status, social origin, religion, and ethnicity—including indigenous and tribal status—as well as race, gender, sexual orientation, and caste, is a reality for workers in specific contexts. Beyond simply managing labor-related risks, this Strategic Goal encourages investors to actively address issues of rights, respect, and cooperation in the workplace, including by supporting sustainable business models and practices that can create long-term solutions in their direct operations and supply chains.
Investments aligned with this Strategic Goal can drive impact by:
Target stakeholders can then experience the following common outcomes, among others:
The scale of the problem varies by specific topic area, for example:
Investors interested in deploying this strategy should consider whom they want to target, as almost every strategy has a host of potential beneficiaries. While some investors may target women of color living in a particular rural area, others may set targets more broadly, e.g., women. Investors interested in targeting particular populations should focus on strategies that have been shown to benefit those populations.
Key questions in this dimension include:
Improving rights, respect, and cooperation could positively impact workers, their families, and enterprises, with the following groups most directly impacted.
Social Dialogue: The ITUC (International Trade Union Confederation) has classified the following regions as high-risk for workers and trade unionists: North Africa and the Middle East, Latin America, and Asia. Western Europe presents the lowest risk (20). In terms of representation for those self-employed and entrepreneurs, Asia has a very high number of cooperatives, reflecting its larger share of the global population. The Self-Employed Women’s Association (SEWA), a trade union based in India, is a network of cooperatives, rural producer groups, social security organizations, and savings and credit groups with more than two million members, which makes it the largest national organization of informal workers in the world (21).
Discrimination: Discrimination varies by geography or group. Some examples follow.
Gender Equality: The highest women’s labor participation gap is found in the Arab States (57.3%), followed by Asia and the Pacific (31.1%), the Americas (19.8%), Africa (17.8%), and Europe and Central Asia (15.1%). The gender pay gap is larger in both high-income countries (25.6%) and low-income countries (28.2%), while it varies in middle income countries between 15.8% and 19.8%. Data from publicly listed companies in 2018 showed very low shares of female Chief Executive Officers, varying from 0% in Germany to 4.6% in the United States (26).
Child Labor: ILO statistics show that 72.1 million children labor in Africa, 62.1 million in Asia and the Pacific, 10.7 million in the Americas, 1.2 million in the Arab States, and 5.5 million in Europe and Central Asia (27).
Modern Slavery: According to the latest (2017) ILO report on this issue, the Asia and Pacific region accounted for 62% of all victims of modern slavery worldwide (6). This was followed by Africa (23%), Europe and Central Asia (9%), the Americas (5%), and the Arab States (1%). The Asia and Pacific region has the highest share of victims across all forms of modern slavery, accounting for 73% of victims of forced sexual exploitation, 68% of those forced to work by state authorities, 64% of those in forced labor exploitation, and 42% of all those in forced marriages.
Dimensions of Impact: CONTRIBUTION
Investors considering investing in a company or portfolio aligned with this strategy should consider whether the effect they want to have compares to what is likely to happen anyway. Is the investment's contribution ‘likely better’ or ‘likely worse’ than what is likely to occur anyway across What, How much and Who?
Key questions in this dimension include:
Organizations can consider contribution at two levels — at the enterprise level and at the investor level. At the enterprise level, contribution is “the extent to which the enterprise contributed to an outcome by considering what would have otherwise happened in absence of their activities (i.e. a counterfactual scenario).” To learn more about methods for assessing counterfactuals, see the Impact Management Project.
At the investor level, organizations investing in projects that improve rights, respect, and cooperation in the workplace can contribute toward solutions as follows.
Dimensions of Impact: HOW MUCH
Investors deploying capital into investments aligned with this strategy should think about how significant the investment's effect might be. What is likely to be the change's breadth, depth, and duration?
Key questions in this dimension include:
Investments in line with this Strategic Goal can benefit all workers (3.5 billion), but they can especially benefit those who cannot exercise their rights, such as those in child labor (152 million), modern slavery (40.3 million), suppressed union or social leaders, and those who are usually discriminated against, which varies by region (5,6).
The potential change from investments in this Strategic Goal varies with the specific activities undertaken by investees and the specific areas of improvement. The following are examples of the impact of improving rights, respect, and cooperation in the workplace.
Key questions in this dimension include:
The following are impact risk factors in line with this Strategic Goal.
These risk factors could leave workers in the same or worse condition in terms of rights and respect, harming them and even potentially their families if not mitigated. Investor consequences could include reputational risks that can lead to reduced shareholder value.
The foundation Humanity United’s Working Capital is an early-stage venture fund that invests to meet the growing corporate demand for scalable solutions to protect and empower vulnerable workers in global supply chains. They partner with innovative entrepreneurs to accelerate the development and deployment of new tools. One of their portfolio companies, Provenance, has developed software for businesses to easily gather and present information and stories about products and their supply chains, including verified data to support those stories. For example, they can trace fish caught with verified social sustainability claims in Indonesia from catch to consumer.
The Corporate Human Rights Benchmark assesses 200 of the largest publicly traded companies in the world on a set of human rights indicators. In 2020, companies producing agricultural products were rated on topics including women’s rights, freedom of association, and collective bargaining. The Benchmark scored Unilever as the highest performer, noting its commitment to respect the human rights of workers, with both responsible sourcing and human rights policies in place, as well as systems to operationalize human rights issues on the ground.
1
ILO, Declaration on Fundamental Principles and Rights at Work (June 18, 1998).
2
International Trade Union Confederation, “Indice Global de los Derechose de la CSI 2019.”
3
ILO and OECD, Building Trust in a Changing World of Work: The Global Deal for Decent Work and Inclusive Growth Flagship Report (Paris: OECD, 2018).
4
Valentina Beghini, Umberto Cattaneo, and Emanuela Pozzan, A Quantam Leap for Gender Equality: For a Better Future of Work for All (Geneva: ILO, March 2019).
5
Alliance 8.7, Global Estimates of Child Labour: Results and Trends, 2012-2016 (Geneva: ILO, September 2017).
6
7
8
Monique Villa, “Women Own Less than 20% of the World’s Land: It’s Time to Give them Equal Property Rights,” World Economic Forum Annual Meeting (blog), January 11, 2017.
9
Fundación ONCE and the ILO Global Business and Disability Network, Making the Future of Work Inclusive People with Disabilities (Geneva: ILO, November 2019).
10
For example, see the ILO’s guidance document. Promoting Diversity and Inclusion through Workplace Adjustments: A Practical Guide (Geneva: ILO, November 2016).
11
ILO Director-General, Equality at Work: Tackling the Challenges, global report under the follow-up to the ILO Declaration on Fundamental Principles and Rights at Work (Geneva: ILO, May 2007).
12
13
Rishabh Kumar Dhir, Umberto Cattaneo, Maria Victoria Cabrera Ormaza, Hernan Coronado, and Martin Oelz, Implementing the ILO Indigenous and Tribal Peoples Convention No. 169: Towards an Inclusive, Sustainable and Just Future (Geneva: ILO, 2020).
14
Alliance 8.7, Global Estimates of Child Labour
15
International Labour Conference, Equality at Work: The Continuing Challenge (Geneva: ILO, November 2011).
16
International Labour Conference, Equality at Work: The Continuing Challenge
17
Richard Locke and Monica Romis, “The Promise and Perils of Private Voluntary Regulation: Labor Standards and Work Organization in Two Mexican Garment Factories” (MIT Sloan Research Paper No. 4734-09, Cambridge Massachusetts, January 22, 2009).
18
International Labour Conference, Equality at Work: The Continuing Challenge
19
Vivian Hunt, Sara Prince, Sundiatu Dixon-Fyle, and Lariena Yee, Delivering through Diversity (London: McKinsey, January 2018).
20
International Trade Union Confederation, “Índice Global de los Derechos de la CSI 2019.”
21
Hyung-sik Eum, Cooperatives and Employment: Contribution of Cooperatives to Decent Work in the Changing World of Work, 2nd ed. (Brussels: International Organisation of Industrial and Service Cooperatives [CICOPA], 2017).
22
Jhacova Williams and Valerie Wilson, Black Workers Endure Persistent Racial Disparities in Employment Outcomes (Washington, DC: Economic Policy Institute, August 27, 2019).
23
Statistics South Africa, “Quarterly Labour Force Survey,” June 23, 2020.
24
Dhir et al., Implementing the Indigenous Peoples Convention.
25
Jean-François Amadieu, “Discriminations à l’embauche: De l’envoi du CV à l’entretien,” Observatoire des Discriminations, University of Paris, April 2005.
26
Beghini et al., Quantam Leap for Gender Equality
27
Hunt et al., Delivering through Diversity
28
The Freedom Fund, “Unlocking What Works: How Community-Based Interventions Are Ending Bonded Labour in India” (Evidence in Practice Issue 4, September 2019).
29
Peer Stein, Oya Pinar Ardic, and Martin Hommes, Closing the Credit Gap for Formal and Informal Micro, Small, and Medium Enterprises (Washington, DC: IFC, 2013).
30
This mapped evidence shows what outcomes and impacts this strategy can have, based on academic and field research.
Can better working conditions improve the performance of SMEs?: an international literature review /
Richard Croucher, Bianca Stumbitz, Ian Vickers, Michael Quinlan, Wendy Banfield, Michael Brookes, Thomas
Lange, Suzan Lewis, John Mcllroy, Lilian Miles, Daniel Ozarow, Marian Rizov, International Labour Office. –
Geneva: ILO, 2013
FICHTENBAUM, R. (2011), Do Unions Affect Labor’s Share of Income: Evidence Using Panel Data. American Journal of Economics and Sociology, 70: 784-810. doi:10.1111/j.1536-7150.2011.00792.x
Flavin, P., Pacek, A.C. & Radcliff, B. Labor Unions and Life Satisfaction: Evidence from New Data. Soc Indic Res 98, 435–449 (2010). https://doi.org/10.1007/s11205-009-9549-z
Getting to Equal 2018: The Disability Inclusion Advantage
Each resource is assigned a rating of rigor according to the NESTA Standards of Evidence.
This starter set of core metrics — chosen from the IRIS catalog with the input of impact investors who work in this area — indicate performance toward objectives within this strategy. They can help with setting targets, tracking performance, and managing toward success.
Ratio of the number of permanent (full-time and part-time) employees that departed voluntarily, compared to the average number of permanent (full-time and part-time) employees at the organization during the reporting period.
(Departing Permanent Employees: Voluntary) / (Average Number of Permanent Employees during the reporting period)
Organizations should footnote all assumptions used. See usage guidance for further information.
The number of departed permanent employees should only include employees departing the organization voluntarily. Organizations can refer to Departed Permanent Employees: Voluntary (OI8431) for additional information on voluntary departures.
The average number of permanent employees can be calculated a number of ways. One example for organizations reporting on a yearly basis is to calculate the average number of permanent employees on a monthly basis.
To understand the rate of voluntary departures from the organization, which can be helpful in assessing the degree to which workers are accepted and valued in the workplace.
Indicates whether the company has a written policy on diverse representation and a system to monitor compliance with this policy.
Yes/No
Organizations should note at what levels of the organization this policy applies (including at board of directors, C-suite, and management levels), and should also note what mechanisms are in place to enforce the policy.
Organizations using this metric should consider women, member of minorities and previously excluded groups including people of color, gender and sexual minorities, and people living with disabilities.
To understand whether the organization has conditions in place mandating diverse representation, which can be helpful in assessing equality of employment outcomes and whether workers are accepted and valued in the workplace.
Indicates whether the organization has a written policy to monitor, evaluate, and ensure its workers' freedom of association
Yes/No
Organizations should footnote the relevant details around their worker freedom of association policy, including how it is enforced.
Freedom of Association is the allowance of workers to form and join trade unions, worker associations, and worker councils or committees of their own choosing. Examples of relevant policies, to footnote, may include: allowing workers to participate in the setting or revision of workplace rules and standards, distributing an employee handbook to all workers (written in their native language) that describes both legal requirements and the organization's policies and procedures on freedom of association, etc.
Organizations can refer to the International Labour Organization for further guidance.
To understand conditions related to worker representation and voice, which can be helpful in assessing equality of employment outcomes and whether workers are accepted and valued in the workplace.
Indicates whether the organization has specific, written anti-discrimination policy in place for its employees and a system to monitor compliance of this policy.
Yes/No
Organizations should footnote details about the policy, including the types of discrimination protected against and the systems in place for ensuring compliance. See usage guidance for further information.
Anti-discrimination policies, oftentimes called non-discrimination or equal employment opportunity policies, create codes to prohibit or penalize discrimination on the basis of age, color, disability, gender expression, gender identity, HIV status, marital status, national, social & ethnic origin, participation in collective bargaining agreements, political opinion, race, religion, or sexual orientation. These policies prohibit activities such as recruitment, compensation, termination, promotions, and other conditions of employment on the basis of any of the affiliations listed above for any employee or job applicant.
Organizations can refer to Human Rights Campaign for additional information on best practices.To understand whether the organization has conditions in place to protect workers from discrimination, which can be helpful in assessing equality of employment outcomes and whether workers are accepted and valued in the workplace.
Indicates whether the organization has a written policy to combat and prevent sexual harassment of employees and a system to monitor compliance with this policy.
Yes/No
Organizations should footnote the details about its sexual harassment policy, and how it is being implemented.
The policy should be in line with internationally-recognized standards.
To understand whether the organization has conditions in place to protect workers from sexual harassment, which can be helpful in assessing the degree to which workers are accepted and valued in the workplace.
Number of employees’ strikes and lockouts at the organization during the reporting period.
N/A
Organizations should include details on the reasons for the strikes/lockouts, the number of employees involved, how long the strikes/lockouts lasted, and the resolution. See usage guidance for further information.
An employee strike is a work stoppage caused by one or several of the following voluntary actions by a number of employees: reducing the normal performance of their employment, breaking their employment agreements, refusing or failing to accept engagement for work in which they are usually employed, reducing their normal output or their normal rate of work, etc. A strike usually takes place in response to employee grievances.
This metric might increase as employees gain/take greater freedom in questioning their rights and respect in the workplace. Then, when policies begin to work and change is affected, there may be a decrease.
To understand the degree to which workers are stopping work as a response to workplace grievances, which can be helpful in assessing the degree to which workers are accepted and valued in the workplace.
While the above core metrics provide a starter set of measurements that can show outcomes of a portfolio targeted toward this goal, the additional metrics below — or others from the IRIS catalog — can provide more nuance and depth to understanding your impact.
Number of full-time equivalent employees working for enterprises financed or supported by the organization as of the end of the reporting period.
N/A
Organizations should footnote all assumptions used. See usage guidance for further information.
While this metric requests full-time equivalent job information, organizations are encouraged to also provide the breakdown of this data for full-time and part-time positions supported/financed.
In calculating the number of full-time equivalent jobs, part-time jobs should be converted to full-time equivalent jobs on a pro rata basis, based on local definition (e.g., if the standard working week equals 40 hours, a 20 hour per week job would be equal to a 0.5 FTE job). Both full-time and part-time jobs should be calculated based on the number of employees employed as of the end of the reporting period. Seasonal or short-term jobs should be prorated based on the time worked throughout the reporting period (e.g., a full-time position for three months at any point during the reporting period would be equal to a 0.25 FTE job). Note that in the United States, the U.S. Treasury Department defines a working week as 35 hours. See glossary definition for more information on how to calculate full-time equivalent.
To understand number of jobs in enterprises directly supported by the organization.
Number of full-time equivalent employees working for enterprises financed or supported by the organization at the beginning of the reporting period who remain at the organization as of the end of the reporting period.
N/A
Organizations should footnote all assumptions used. Organizations that report data using more than one reporting period should make very apparent which reporting period they are using for this metric. See usage guidance for further information.
Self employed individuals and owners of businesses should be counted as employees.
While this metric requests data on full-time equivalents, organizations are encouraged to also provide the breakdown of these data for full- and part-time positions supported/financed. Organizations can refer to the full-time equivalent glossary term for more detail, including notes on its calculation. In brief, in calculating the number of full-time equivalent jobs, part-time jobs should be converted to full-time equivalent jobs on a pro rata basis based on local definitions (for example, if the standard working week equals 40 hours, a 20-hour-per-week job would be 0.5 FTE). Both full- and part-time jobs should be calculated based on the number employed as of the end of the reporting period. Seasonal or short-term jobs should be prorated based on the time worked throughout the reporting period. (For example, a full-time position for three months at any point during the reporting period would be 0.25 FTE.) Note that, in the United States, the U.S. Treasury Department defines a working week as 35 hours.
Organizations may choose to disclose employment by function (examples: operations and maintenance, construction, land conservation).
To understand number of jobs maintained in enterprises directly supported by the organization.
Net number of new full-time equivalent employees working for enterprises financed or supported by the organization between the beginning and end of the reporting period.
Many organizations may choose the beginning of the reporting period to be the time when the organization began its support/investment.
N/A
Organizations should footnote all assumptions used. Organizations that report data using more than one reporting period should make very apparent which reporting period they are using for this metric. See usage guidance for further information.
While this metric requests data on full-time equivalents, organizations are encouraged to also provide the breakdown of these data for full- and part-time positions supported/financed. Organizations can refer to the full-time equivalent glossary term for more detail, including notes on its calculation. In brief, in calculating the number of full-time equivalent jobs, part-time jobs should be converted to full-time equivalent jobs on a pro rata basis based on local definitions (for example, if the standard working week equals 40 hours, a 20-hour-per-week job would be 0.5 FTE). Both full- and part-time jobs should be calculated based on the number employed as of the end of the reporting period. Seasonal or short-term jobs should be prorated based on the time worked throughout the reporting period. (For example, a full-time position for three months at any point during the reporting period would be 0.25 FTE.) Note that, in the United States, the U.S. Treasury Department defines a working week as 35 hours.
Organizations may choose to disclose employment by function (examples: operations and maintenance, construction, land conservation).
To understand number of jobs created in enterprises directly supported by the organization.
Indicates whether the organization has a written policy against forced labor and a system to monitor compliance of this policy.
Yes/No
Organizations should footnote the relevant details around their forced labor policy, including how it is enforced.
Forced labor is any work or service which individuals are forced to do against their will under the threat of punishment. Forced labor takes different forms including debt bondage, trafficking, and other forms of modern slavery.
Organizations can refer to the following source for further guidance: International Labor Organization standards .
To understand whether the organization has policies in place to exclude forced labor from its operations, which can be helpful in assessing the degree to which workers are accepted and valued in the workplace.
N/A
Number of board of directors or other governing body members who belong to minority or previously excluded groups as of the end of the reporting period.
N/A
Organizations should footnote their categorization of minority/previously excluded groups. See usage guidance for further information.
A board of directors is a group of individuals legally responsible to govern a corporation and responsible to the shareholders and other relevant stakeholders. A governing body with a different name (e.g., advisory body) may be considered a Board of Directors provided it has a fiduciary responsibility to shareholders and/or other relevant stakeholders.
The categorization of minority/previously excluded groups vary by the locations and situations in which they live. Because there is no internationally agreed-upon definition as to which groups constitute minorities, in situations where well-established local policies exist (e.g., South Africa: Broad Based Black Economic Empowerment (BBBEE) definition of previously excluded, India: based on backward caste), organizations should refer to local guidelines to identify minority or previously excluded groups. Otherwise, organizations should provide additional detail as to their tailored methodology for defining these groups.
To understand the number of board members who come from minority or previously excluded groups, which can be helpful in assessing equality of employment outcomes and whether workers are accepted and valued in the workplace.
N/A
Organizations should footnote all assumptions used.
This metric is intended to capture the size of the female representation within the board of directors or governing body of an organization. A board of directors is a group of individuals legally responsible to govern a corporation and responsible to the shareholders and other relevant stakeholders. A governing body with a different name (e.g., advisory body) may be considered a Board of Directors provided it has a fiduciary responsibility to shareholders and/or other relevant stakeholders.
To understand the number of board members who are women, which can be helpful in assessing equality of employment outcomes and whether workers are accepted and valued in the workplace.
Indicates whether the organization implements a feedback system to solicit employee feedback and has an established procedure and/or committee to receive and handle employee feedback.
Yes/No
Organizations should footnote the details on the process and frequency by which they obtain and handle employee feedback. See usage guidance for further information.
Aligned to GRI 403-4a. For further details on calculation and inclusions, see GRI 403: Occupational Health and Safety 2018 .
For this strategic goal, organizations are encouraged to specifically describe in footnotes the processes for worker participation and consultation in the development, implementation, and evaluation of the occupational health and safety management system, and for providing access to and communicating relevant information on occupational health and safety to workers.
To understand whether the organization has an employee feedback system in place that appropriately allows for worker participation in occupational health and safety management, which can be helpful in assessing the degree to which workers are accepted and valued in the workplace.
Indicates whether the organization implements a feedback system that includes a grievance mechanism to receive formal employee complaints and provide remedy.
Yes/No
Organizations should footnote the details on the process and frequency by which they receive and provide remedy for formal employee complaints. See usage guidance for further information.
Sourced from GRI 103-2.
This metric is distinct from Employee Feedback System (OI3601) in that it indicates whether there is a system consisting of procedures, roles, and rules for receiving formal employee complaints and enforcing a system of clear action for remedy.
According to GRI, effective grievance mechanisms are expected to be legitimate, accessible, predictable, equitable, transparent, rights-compatible, and a source of continuous learning. For operational-level mechanisms to be effective, they are expected to be based on engagement and dialogue. For a description of each of these criteria, see Guiding Principle 31 in the United Nations (UN), ‘Guiding Principles on Business and Human Rights, Implementing the United Nations “Protect, Respect and Remedy” Framework’, 2011.
Organizations are also encouraged to footnote the ownership of the mechanism, the purpose of the mechanism and its relationship to other grievance mechanisms, the organization’s activities that are covered by the mechanism, the intended users of the mechanism, how the mechanism is managed, the process to address and resolve grievances, including how decisions are made, the effectiveness criteria used (source: GRI 103-2).
To understand whether the organization has a system in place to receive and provide redress for formal employee complaints, which can be helpful in assessing the degree to which workers are accepted and valued in the workplace.
Number of formal grievances registered by employees of the reporting organization during the reporting period.
N/A
Organizations should footnote all assumptions used.
According to GRI, effective grievance mechanisms are expected to be legitimate, accessible, predictable, equitable, transparent, rights-compatible, and a source of continuous learning. For operational-level mechanisms to be effective, they are expected to be based on engagement and dialogue. For a description of each of these criteria, see Guiding Principle 31 in the United Nations (UN), ‘Guiding Principles on Business and Human Rights, Implementing the United Nations “Protect, Respect and Remedy” Framework’, 2011.
Organizations are also encouraged to footnote the ownership of the mechanism, the purpose of the mechanism and its relationship to other grievance mechanisms, the organization’s activities that are covered by the mechanism, the intended users of the mechanism, how the mechanism is managed, the process to address and resolve grievances, including how decisions are made, the effectiveness criteria used (source: GRI 103-2).
To understand the number of formal employee complaints received during the reporting period, which can be helpful in assessing the degree to which workers are accepted and valued in the workplace.
Number of formal grievances by employees of the reporting organization that were resolved during the reporting period.
N/A
Organizations should footnote all assumptions used.
According to GRI, effective grievance mechanisms are expected to be legitimate, accessible, predictable, equitable, transparent, rights-compatible, and a source of continuous learning. For operational-level mechanisms to be effective, they are expected to be based on engagement and dialogue. For a description of each of these criteria, see Guiding Principle 31 in the United Nations (UN), ‘Guiding Principles on Business and Human Rights, Implementing the United Nations “Protect, Respect and Remedy” Framework’, 2011.
Organizations are also encouraged to footnote the ownership of the mechanism, the purpose of the mechanism and its relationship to other grievance mechanisms, the organization’s activities that are covered by the mechanism, the intended users of the mechanism, how the mechanism is managed, the process to address and resolve grievances, including how decisions are made, the effectiveness criteria used (source: GRI 103-2).
To understand the number of formal employee complaints received during the reporting period, which can be helpful in assessing the degree to which workers are accepted and valued in the workplace.
Number of people employed by the organization who reside in low income areas as of the end of the reporting period. This is the sum of all paid full-time and part-time employees residing in low income areas.
N/A
Organizations should footnote details on the assessment tools used to identify low income employees. See usage guidance for further information.
This metric is intended to capture the number of unique low income individuals employed by the organization in full- or part-time roles at the point in time defined by the reporting end date. This metric excludes Temporary Employees (OI9028).
The population classified as low income includes all those who fall below a fixed threshold, and is inclusive of those classified as poor or very poor. Due to the complexities of assessing the poverty level of employees, organizations will likely have to use specific assessment tools to report on this accurately. See the glossary definition for additional information on commonly used tools to help determine the absolute poverty level of individuals and households.
To understand the number of the organization’s employees who fall within in the local low-income bracket, which can be helpful in assessing equality of employment outcomes.
Number of people employed by the organization who belong to minority or previously excluded groups as of the end of the reporting period. This is the sum of all paid full-time and part-time minority or previously excluded employees.
N/A
Organizations should footnote their categorization of minority/previously excluded groups. See usage guidance for further information.
This metric is intended to capture the number of unique individuals who belong to minority or previously excluded groups and are employed by the organization in full- or part-time roles at the point in time defined by the reporting end date. This metric excludes Temporary Employees (OI9028).
The categorization of minority/previously excluded groups vary by the locations and situations in which they live. Because there is no internationally agreed-upon definition as to which groups constitute minorities, in situations where well-established local policies exist (e.g., South Africa: Broad Based Black Economic Empowerment (BBBEE) definition of previously excluded, India: based on backward caste), organizations should refer to local guidelines to identify minority or previously excluded groups. Otherwise, organizations should provide additional detail as to their tailored methodology for defining these groups.
To understand the number of the organization’s employees who are from minority or previously excluded groups, which can be helpful in assessing equality of employment outcomes.
N/A
Indicates whether the organization has a written policy against child labor and a system to monitor compliance of this policy.
Yes/No
Organizations should footnote the relevant details and description of their child labor policy, including details of how it is enforced.
Organizations can refer to the following source for further guidance: ILO conventions and guidelines.
To understand whether the organization has policies in place to exclude child labor from its operations,which can be helpful in assessing the degree to which workers are accepted and valued in the workplace.
Indicates whether the organization has a written policy of evaluating supplier organizations based on their social and environmental performance and a system to monitor compliance with this policy.
Yes/No
Organizations should footnote the type of factors taken under consideration when evaluating supplier organizations. See usage guidance for further information.
Screening for social and environmental criteria could include screening for specific negative practices (e.g., no child labor, no negative environmental impacts) or screening for positive practices (e.g., environmentally friendly manufacturing processes, excellent labor practices). Organizations should footnote which factors are considered.
If organizations differ in their engagements with suppliers (e.g., significant suppliers), they are also encouraged to footnote how their screening policies differ between types of suppliers.
Organizations are encouraged to report this metric in conjunction with Supplier Screening Ratio (PI3016).
To understand whether the organization has policies in place to screen suppliers against social or environmental criteria, which can be helpful in assessing the degree to which workers are accepted and valued in the workplace.
Percentage of supplier organizations used during the reporting period that were screened using social and/or environmental criteria.
Number of suppliers screened / Number of suppliers
Organizations should footnote the details regarding the types of criteria used to evaluate supplier organizations and how screening is conducted. See usage guidance for further information.
This metric is intended to capture the number of active suppliers used by the reporting organization that have gone through a social/environmental screening process. Organizations can report suppliers that were screened in a previous reporting period but should footnote details on the frequency of screening procedures.
Screening for social and environmental criteria could include screening for specific negative practices (e.g., no child labor, no negative environmental impacts) or screening for positive practices (e.g., environmentally friendly manufacturing processes, excellent labor practices). Organizations should footnote which factors are considered.
For many organizations, screening may only be applicable with significant supplier organizations. Organizations are encouraged to provide details on how screening practices differ between types of suppliers.
To understand the degree to which the organization screens suppliers against social or environmental criteria, which can be helpful in assessing the degree to which workers are accepted and valued in the workplace.
Net number of new full-time equivalent employees living in low income areas working for enterprises financed or supported by the organization between the beginning and end of the reporting period.
Many organizations may choose the beginning of the reporting period to be the time when the organization began its support/investment.
N/A
Organizations should footnote all assumptions used, including how low income areas are identified. Organizations that report data using more than one reporting period should make very apparent which reporting period they are using for this metric. See usage guidance for further information.
Organizations can refer to the glossary for additional information on defining low-income areas.
While this metric requests data on full-time equivalents, organizations are encouraged to also provide the breakdown of these data for full- and part-time positions supported/financed. Organizations can refer to the full-time equivalent glossary term for more detail, including notes on its calculation. In brief, in calculating the number of full-time equivalent jobs, part-time jobs should be converted to full-time equivalent jobs on a pro rata basis based on local definitions (for example, if the standard working week equals 40 hours, a 20-hour-per-week job would be 0.5 FTE). Both full- and part-time jobs should be calculated based on the number employed as of the end of the reporting period. Seasonal or short-term jobs should be prorated based on the time worked throughout the reporting period. (For example, a full-time position for three months at any point during the reporting period would be 0.25 FTE.) Note that, in the United States, the U.S. Treasury Department defines a working week as 35 hours.
Organizations may choose to disclose employment by function (examples: operations and maintenance, construction, land conservation).
To understand number of jobs created in low-income areas in enterprises directly supported by the organization.
Number of full-time equivalent employees who reside in low income areas and work for enterprises financed or supported by the organization at the beginning of the reporting period who remain at the organization as of the end of the reporting period. Many organizations may choose the beginning of the reporting period to be the time when the organization began its support/investment.
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Organizations should footnote all assumptions used, including how low income areas are identified. Organizations that report data using more than one reporting period should make very apparent which reporting period they are using for this metric. See usage guidance for further information.
Organizations can refer to the glossary for additional information on defining low-income areas.
While this metric requests data on full-time equivalents, organizations are encouraged to also provide the breakdown of these data for full- and part-time positions supported/financed. Organizations can refer to the full-time equivalent glossary term for more detail, including notes on its calculation. In brief, in calculating the number of full-time equivalent jobs, part-time jobs should be converted to full-time equivalent jobs on a pro rata basis based on local definitions (for example, if the standard working week equals 40 hours, a 20-hour-per-week job would be 0.5 FTE). Both full- and part-time jobs should be calculated based on the number employed as of the end of the reporting period. Seasonal or short-term jobs should be prorated based on the time worked throughout the reporting period. (For example, a full-time position for three months at any point during the reporting period would be 0.25 FTE.) Note that, in the United States, the U.S. Treasury Department defines a working week as 35 hours.
Organizations may choose to disclose employment by function (examples: operations and maintenance, construction, land conservation).
To understand number of jobs maintained in low-income areas in enterprises directly supported by the organization.