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GSSB virtual meeting

12 September 2024

Session 1
Welcome to meeting
Carol Adams

Agenda – 20 June 2024
Start End Duration Session(minutes)
12:30- 12:35

5

1

12:35

- 12:50

15

2

12:50

- 13:35

45

13:35- 13:40

13:40- 14:30

Agenda item

Introduced by Public/
privateWelcome to meeting
Carol Adams• Approval of Item 01 – Draft summary of theGSSB meeting held on 20 June 2024
Sector Program ReviewGelkha Buitrago

Public3

Sector Standard Project for Financial Services Claire Dugan
updatePublic54

Any other business and close of meeting

Carol Adams

Public50

5Private session

Carol Adams

PrivatePublic4

Scheduled approval
Item 01 – Draft summary of the GSSB meeting held on 20 June 2024

Does the GSSB approve:
Item 01 – Draft summary of the GSSB meeting held on 20June 2024

GSSB Decision 2024.17 GSSB resolves to approve Item 01 – Draft
summary of the GSSB meeting held on 20 June 2024
5

Action points
Action items

To be undertaken by

Enlist a group of GSSB volunteers to review potential
interpretation within XBRL Taxonomy

Standards Division

Find ways to reach out to HR professionals foravailable employee information for Labor Standards

Standards Division

Progress6

Session 2Sector Program Review
Gelkha Buitrago• Approved by the GSSB in February 2019

Sector
Program• The Sector Standards are designed to help identify a sector's mostsignificant impacts and reflect stakeholder expectations forsustainability reporting• Aim to develop GRI Sector Standards for 40 to 45 high-impact
sectors8

• Standards published until now:••••

Sector
Program

GRI 11: Oil and Gas Sector 2021
GRI 12: Coal Sector 2022
GRI 13: Agriculture, Aquaculture and Fishing Sectors 2022
GRI 14: Mining Sector 2024

• Currently under development (expected release in 2026):• Financial Services (including banking, capital markets and insurance)• Textiles and apparel• Standards developed until now are part of the first group in thepriority list••••

Group 1: Basic materials and needs
Group 2: Industrial
Group 3: Transport, infrastructure and tourism
Group 4: Other services and light manufacturing

9

Rationaleandobjective

In 2025 the discussions on the GSSB Work Program 2026-2028 will start.

This presents an opportunity to take stock of how far we have come with
the Sector Program and identify areas for improvement as needed.​101. Revision of information available from each of the Sector Standards
development process

Methodology

2. A reflection on the Sector Program carried out by the Sector Team,with input from Topic Standards, SE&P, and other GRI teams​
3. A tailored research piece to better understand the uptake,usefulness, and the user case of the Sector Standards​

11

Tailored
researchGeneral
uptakeFollowing
adoption study
methodology

Use ofSectorStandards

Use atjurisdictional
level (tbc)

User casefor potential
future users

Desk research andinterviews with
reporters andconsultants

Carrots and Sticks
database

Interviews with
reporters fromsectors in priority
groups 3 & 412Expectedoutcomes ofthe review

Set of recommendations to refine the Sector Standards for GSSB discussion
and approval.

13

GSSB
Engagement

WhenWhat

Expected outcome

12 Sept 2024

Presentation of scope andGSSB is informed
timelines

15-16 Oct 2024

Presentation ofpreliminary findings

GSSB discusses
findings

12 DecPresentation of research
and final
recommendations

GSSB decides onrecommendations

14

Session 3
Sector Standard Project for
Financial Services update
Claire Dugan

Sector Standard Project for Financial Services
Purpose of update• Provide GSSB an overview of working content in
the draft Standards, ahead of exposure draftsubmission• Allow for discussion regarding key challenges andproposals• This presentation represents the technicalcommittee recommendations so far and is subject
to change until submission of public exposure
drafts to the GSSB

16

Sector Standard Project for Financial Services
Project overview• Develop three GRI Sector Standards for banking, capital markets and insurance
sectors• The new Sector Standards will:• enable organizations to report on their impacts, including downstream impacts
via the provision of products and services, including capital allocation• improve the consistency and comparability of reporting across these sectors• Development of the Standards is led by three technical committees, one per sector,involving 40 sector experts• Technical committees collaborate through a cross-sector exchange on impacts
common to all three sectors

17Sector Standard Project for Financial Services
Project scope

Banking

Capital markets

Insurance• Retail and commercialbanking• Asset managers• Life• Asset owners, including
pension funds andsovereign wealth funds• Non-life (e.g. property,health,travel, motor, casualtyand accident)• Lending• Investment banking• Payment providers• Reinsurance• Insurance intermediaries(agents and brokers)• Out of scope – stock exchanges, rating agencies, real estate investment trusts (REITs)

18

Sector Standard Project for Financial Services
Multi-stakeholder technical committees
Businessenterprises
•
•••
•
••
•
•
•
•
••
••
•

UBS
NatwestHSBC
DBS
Citibanamex
Access BankVancity
State StreetRobeco
APB Pension Fund
Boston Common
QBEICMIF
NN Group
Liberty Mutual
Gallagher Re•••••

CivilsocietyWWFFinance Watch
Reclaim FinanceCentre for Financial
Regulation and Inclusion(CENFRI)
Pre-distribution Initiative

Mediatinginstitutions•••

Investment
institutions••••••••

Principles of Responsible
Investment (PRI)
Moodys
S&P Global
Sustainalytics
MSF Investment
Management
Sura Investment
Management
Swiss Stock Exchange(SIX)
Singapore Stock
Exchange•••••

Central Bank of Georgia
South African Reserve
Bank – Insurance
Regulator
Moroccan Capital Markets
Authority
Shift Project
UNEP FI – Principles ofResponsible Banking
UNEP FI – Principles of
Sustainable Insurance
EYERMLabor•

UNI Global Union
19Sector Standard Project for Financial Services
Peer reviewers••••••••••

Peerreviewers

OECD
IFC's Sustainable Banking and Finance NetworkInternational Capital Markets Authority
World Benchmarking AllianceTaskforce for Nature-related Financial Disclosures(TNFD)International Investors for Climate Change Group(IIGCC)Climate Safe Lending Network
Rights Co-lab
ShareAction
BankTrack20

Sector Standard Project for Financial Services
Collaboration with other standard setters and key stakeholders

Other standard setters• EFRAG – holding regular meetings to share working content for thesesectors• ISSB – as of July 2024, finance sectors not prioritized for SASB Standards
enhancements scheduled in the next two years

Key stakeholders• All UNEP FI sector initiatives are represented on the technical committees
oPrinciples of Responsible Banking, Principles of Responsible
Investment, Principles of Sustainable Insurance

21Sector Standard Project for Financial Services
Project overview
Project
initiation

Project
commencement

Draft
development

PublicexposureStandard revision

Approval &publication

Status• Project initiation – February 2023, with GSSB approval of final project proposal• Project commencement – July 2023, with GSSB approval of three technical committees• Draft development – September 2023 kick-off, with first technical committee meetingsoHeld in-person meeting with technical committees in Amsterdam in April 2024

oExposure drafts to be submitted to GSSB in January 2025 (expected)

22Sector Standard Project for Financial Services
Summary of significant proposals

Likelymaterialtopics• Circa 24 likely material topics per Sector Standard, mostly
consistent across the sectors• Most topics align with GRI Topic Standards that are existing or
under revision, four are new to the GRI system

Reporting• Common disclosures for impacts via customers and investees
enable reporting on downstream impacts on any material topic• Significant additional sector reporting is proposed across thetopics, to address transparency expectations for the sectors

Sectorcontext• A focus on the sector's downstream impacts through theprovision of products and services, specifically capital,
to customers and investees

23Sector Standard Project for Financial Services
Working list of likely material topics
1. Climate change

14. Employment

2. Biodiversity

15. Remuneration and working time

3. Water

16. Significant changes for workers

4. Waste

17. Public and customer health and safety (insuranceonly)

5. Local communities and rights of IndigenousPeoples

18. Prevention of corruption and financial crime

6. Financial health and inclusion

19. Anti-competitive behavior

7. Customer privacy

20. Public policy

8. Marketing and labeling

21. Tax

9. Non-discrimination and equal opportunity

22. Economic impacts

10. Forced or compulsory labor

23. Conflict-affected and high-risk areas (pending)

11. Child labor

24. Sustainability incorporation in investing (capitalmarkets only - pending for banking and insurance)

12. Freedom of association and collectivebargaining
13. Occupational health and safety24Sector Standard Project for Financial Services
New likely material topics
1. Climate change

14. Employment

2. Biodiversity

15. Remuneration and working time

3. Water

16. Significant changes for workers

4. Waste

17. Public and customer health and safety (insuranceonly)

5. Local communities and rights of IndigenousPeoples

18. Prevention of corruption and financial crime

6. Financial health and inclusion

19. Anti-competitive behavior

7. Customer privacy

20. Public policy

8. Marketing and labeling

21. Tax

9. Non-discrimination and equal opportunity

22. Economic impacts

10. Forced or compulsory labor

23. Conflict-affected and high-risk areas (pending)

11. Child labor

24. Sustainability incorporation in investing (capitalmarkets only - pending for banking and insurance)

12. Freedom of association and collective
bargaining
13. Occupational health and safety25Sector Standard Project for Financial Services•

Focus on customer groups that are
typically excluded•

Extension of Anti-corruption topic•

Impacts via connection to the broader
financial system and criminal activities
targeting customers•Systematic consideration andincorporation of sustainability impacts ininvesting, to reduce negative impacts andenhance positive ones

Reporting

Impacts on customer financial health andinclusion through access to affordable andsuitable products and services D

Reporting

Topic framing

Sustainability
incorporation ininvesting(pending forbanking andinsurance)•

Reporting

Prevention ofcorruption andfinancial crime

Topic framing

Financial healthand inclusion(FHI)

Topic framing

New topics to the GRI system•••

Organization's FHI initiatives and targetedcustomer groups
Policies regarding de-risking (bankingonly)
Claims handling (insurance only)•

Management disclosures relating toorganization's compliance program•

Number of incidents and customer funds
lost•

Organization-level disclosures on assets
under management, sustainable
investment commitments, governance andoversight, thematic investment focuses26Sector Standard Project for Financial Services•

Risk reduction by incentivizing healthyand safe customer behaviors•

Disaster risk reduction through D
collaboration with governments andcommunities

ReportingPublic andcustomer healthand safety(insurance only)

Topic framing

New topics to the GRI system•How the organizations utilizes its risk
expertise beyond its core business,
including incentives, awareness-raising,collaboration with stakeholders on
disaster preparedness27Sector Standard Project for Financial Services
Key challenges
Determining likely material topics
for these sectors

Likely material topics are informed by transparency
expectations of the sector and authoritativeinstruments

GRI Topic Standards
provide limited disclosures fordownstream impacts

New set of common disclosures for impacts via
customers and investees, and additional sector
reporting

Reporting on investment activities
for banking and insuranceorganizations

Incorporate investment activities into the Sector
Standards for banking and insurance

Aligning with current revisionprojects of GRI Topic Standard

Align with current exposure drafts for Climate Change,
Employment, Remuneration and Working Time,
Significant Changes
28Sector Standard Project for Financial Services
Common disclosures for reporting impacts via customers and investees• RationaleoDue to size and complexity of portfolios, organizations take a risk-based
approach to identifying, assessing, and managing negative impacts, e.g.,
exposure to sectors, geographies, etc.
oUnderstanding this approach is a critical transparency expectation of thesector• Authoritative instrumentso OECD due diligence guidance for finance sectors
o UN Guiding Principles on Business and Human Rights• Disclosures enable organizations to reporto How they identify and assess impacts via customers and investees
o Approach to customer engagement and investee stewardshipo On any material topic29

Sector Standard Project for Financial Services
Common disclosures for reporting impacts via customers and investees• Placement: description and disclosures sit above the first likely material topic

30

Sector Standard Project for Financial Services
Common disclosures for reporting impacts via customers and investees• Reference to common disclosures on every likely material topic. Example:

31

Sector Standard Project for Financial Services
Banking and Insurance Sector Standards allow for reporting on investment
activities• Investment activities technically covered in the scope of Sector Standard for
Capital Markets• However, banking and insurance organizations commonly undertake investment
activities• Technical committees recommend incorporating investment activities into these
sector standards –• This approach means banking and insurance organizations with investment
activities can report using a single Standard• Aligns with other standard setters

32

Sector Standard Project for Financial Services
Alignment of likely material topics and disclosures from Topic Standard exposure
drafts• Alignment with labor project
oStandards list Employment, Remuneration and Working Time, Significant
Changes as likely material topics, as well as relevant disclosures – subject tochange pending public finalization of labor Standards• Alignment with climate project
oStandards list Climate Change as a likely material topic, as well as relevant
disclosures – subject to change pending final Climate Change Standard

33

Sector Standard Project for Financial Services
Project overview

Projectinitiation

Projectcommencement

Draft
development

PublicexposureStandard revision

Approval &publication

Next steps• Complete draft development – Exposure drafts to be submitted to GSSB in January 2025(expected)• Public exposure – 1 March - 31 May 2025
oGlobal engagement – through GRI’s networks, key stakeholders, and technical committee
members• Standard revision – June 2025 - March 2026
• Approval and publication – April 2026 (expected)

34

Sector Standard Project for Financial Services
Project team
Claire Dugan
Senior Manager Standards
Project lead(Maternity leave November 2024 –August 2025)

Patricia Oliveira Dias
Manager Standards

Alper Cezmi Ozdemir
ResearchAssociate

Lisa van den Hoven
Manager Standards

Natalia Abril Bonilla
Senior Standards
Officer

Victoria Lacroze
Technical ContentManager
Steve Gillman
Senior Editor

35Sector Standard Project for Financial Services
GSSB discussion• Questions• Possibility of adding a GSSB sponsor to the project?

36

Session 4
Any other business and close ofpublic sessions
Carol Adams

THANK YOU
www.globalreporting.org

global-reporting-initiative-gri@GlobalReportingInitiative@GRI_Secretariat