Revising the CoP: Background and Rationale
About CoP and UNGC: The UN Global Compact (UNGC), a non-binding United Nations pact, encouraging firms and businesses to think of and adopt and report on more sustainable methods. To ensure a more straightforward reporting experienced it has identified 10 principles (The Ten Principles | UN Global Compact) forming a value system companies should adopt when conducting business. These principles are split into four areas: human rights, labour, environment, and anti-corruption. By incorporating the 10 principles into the companies’ strategies, policies, and procedures it will support fulfilling their basic responsibilities to people and planet.
The UN Global Compact’s Communication on Progress (CoP), introduced in 2004, is an annual disclosure requirement, serving as an accountability mechanism to communicate progress and commitment on the 10 principles by business participants.
In the past years, the demand by stakeholders for reliable corporate ESG data has continuously increased. Additionally, there is a need to better recognise corporate sustainability leadership and impact on the SDGs, which is why the CoP decided to incorporate changes into the reporting framework for 2023. By doing so it adapts to new trends in the market, becomes more transparent and offers its members a more digitalised version. All participating companies are required, from 2023 onwards, to disclosed using the renewed CoP.
Main Changes in the Enhanced CoP
The changes made to the enhanced CoP are found within the two areas of the CoP: an annual statement by the Chief Executive Officer and a questionnaire.
The main changes are:
- The format changing from narrative to a standardised questionnaire
- A new universal submission period between 1st of February and 31st of May
- The failure to submit by the end of the submission period will be designated as ‘non-communicating’ and be de-listed within six months of this designation.
- A new digital system and open database which facilitate easier data input as well as allow stakeholders to view and download data on participating companies
- Access to support service such as webinars and tutorials to meet the new requirements
The minimum requirements are:
- A statement by the Chief Executive Officer
- A description of practical actions the company has taken implementing the Ten Principles
- A measurement of outcome
Value of the Enhanced CoP to UNGC CoP
The aim of the new CoP is to help business grow their sustainability credibility and strengthen their brand value, as well as measure and showcase progress whilst also comparing it against peers.
If you have further questions or need help with setting up your Communication on Progress report, please do not hesitate to contact us at or under +49 8192 99 7 33-20. Further check out the DFGE CoP 2022.
