DELISTING AND REJOINING POLICY

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DELISTINGThe UN Global Compact is an inclusive initiative for companies that commit to align with theten universal principles on human rights, labour, environment and anti-corruption. In orderto maintain the integrity and reputation of the initiative, the UN Global Compact hasdeveloped criteria for delisting participants.
Companies and organizations that are delisted from the initiative:
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Will be reflected as such on the UN Global Compact website;Will have all formal relationships with the UN Global Compact and/or Global CompactLocalNetwork(s)terminated(whetherheldinanindividualor
1company/organizational capacity) ;Are not allowed to use the UN Global Compact name or logo, even if such permission
had been granted prior to their removal; andMay result in the forfeiture of financial contributions, including required annualcontributions or contributions made to support any engagement opportunity such as
Action Platforms, sponsorships, etc.

All companies or organizations that are no longer part of the initiative are given the statusof “delisted,” with a reason for delisting, and it is reflected as such on the UN GlobalCompact website. Delistings can either occur for integrity reasons or for administrative
reasons, which are usually based on a request by the participant.
Integrity reasons for delisting:
1. Failure to communicate on progress:
a. Business participants: The UN Global Compact requires all businessparticipants to submit an annual Communication on Progress (CoP) thatoutlines the company’s efforts to implement the Ten Principles. A businessparticipant will be designated as “non-communicating” on the UN Global
Compact website if it fails to submit all elements of the CoP by the end of thesubmission period on 31 July. If a “non-communicating” business participant
fails to submit a CoP by 31 December, it will be delisted from the UN Global
Compact for “failure to communicate on progress” on 1 January of the newyear. For more information, please refer to the 2024 CoP Policy.
b. Non-business participants: Since 2015, all non-business entities have beenrequired to submit a biennial Communication on Engagement (CoE). If a
non-business entity is unable to meet its biennial submission requirement, it
will be listed as “non-communicating” on the UN Global Compact website. Ifthe status persists for another year, the organization will be delisted for“failure to communicate on progress.” For more information, please read theCoE Policy.
This could include, but is not limited to, participation in an Expert Group, Participants or Patron Sponsors of Action
Platforms and LEAD.
122. Failure to engage in dialogue: Under the Integrity Measures’ dialogue facilitation
process, participants are required to respond to third party concerns raised with theUN Global Compact Office within a two-month deadline. If a participant fails torespond within the required deadline, it may be listed as “non-communicating” on
the UN Global Compact website until such dialogue commences. If the status persists
for a year, the company will be delisted for failure to engage in dialogue. For moreinformation, please refer to the Integrity Measures Policy.
3. Other reason related to integrity: The UN Global Compact reserves the right todelist participants for:
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Egregious or persistent misuse of the UN and/or UN Global Compact nameand/or logo. The UN Global Compact reserves the right to refer cases to theUnited Nations Office of Legal Affairs;
Learning after an applicant is accepted that the participant provided false ormisleading information in the application form;
Suspension or removal from the UN Vendor List;
When egregious or systematic abuse of the Ten Principles is admitted by anauthorized company representative or there is a finding of guilt in a court oflaw, as a last resort the company may be delisted if their continued
participation in the initiative is detrimental to the reputation and integrity ofthe overall UN Global Compact and its Local Networks.

In addition, as of October 2017, the initiative no longer accepted companies that derive
revenue from the production and/or manufacturing of tobacco. Participants that fell within
the tobacco exclusion were delisted on 15 October 2017. Should an active participant be
subsequently found to meet the tobacco exclusion the UN Global Compact reserves the rightto delist them. For more information, please refer to the Integrity Policy Update.
Other reasons for delisting:
1. Participant requested withdrawal: The UN Global Compact is a voluntary
initiative, and participants are free to end their participation at any time. Participants
may decide to withdraw if they determine they are not in a position to continue theirparticipation in the initiative or if they are unable to uphold their commitment to theTen Principles. The intention to withdraw should be communicated in writing by anauthorized representative of the participating company or organization and specify
the reasons for ending the commitment.
2. Merger or acquisition/ Organization no longer exists: A participant no longer
exists as a separate entity.
3. Consolidation of commitment under the parent company: A company’scommitment to join the UN Global Compact applies not only to its headquarters, butalso to all subsidiaries, local branches and country offices. Parent companies that
prefer that their subsidiaries do not remain individual participants of the initiative can3consolidate their commitment. In this instance, the parent company’s CoP will cover
all subsidiaries’ activities. For more information, please refer to the Subsidiary Policy.
4. Non-responsive: All business participants are required to make an annual financial
contribution to the Foundation for the Global Compact based on their annualsales/revenue in USD. Payment terms are 120 days upon receipt of invoice. After thistime, the UN Global Compact reserves the right to delist companies for failure tomeet their annual financial commitment.
COMPANY REVENUE BY ANNUALGROSS SALES/REVENUE(USD)REQUIRED ANNUAL
CONTRIBUTION(USD)>30 billion

30,00010-30 billion

25,0005-10 billion

20,000

1–5 billion

15,000500 million – 1 billion

7,500

250 million – 500 million

5,000

50–250 million

2,500

25–50 million

Local Network fee will apply<25 million

Local Network fee will apply

REJOINING
All participants delisted from the UN Global Compact that wish to rejoin the initiative will
have to submit the below documents:▪

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Letter of Recommitment to the UN Secretary-General from the chief executive (orequivalent) pledging to make progress on the Ten Principles of the UN GlobalCompact and take action in support of UN goals. The Letter shall also include anexplanation of the reason for delisting along with corrective measures; andValid CoP or CoE reporting requirement.

The UN Global Compact reserves the right to request proof of payment for any outstanding
invoice related to the required annual financial contribution.
The UN Global Compact will consider the following during the readmission process:▪
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The results of a due diligence review;
The substance of the Letter of Recommitment and CoP or CoE.

These additional documents/criteria, depending on the specific reason for delisting, arerequired:

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Reason for Delisting

Process for Rejoining

Failure to engage in dialogue

Submit a response letter to the third party in thedialogue facilitation process

Suspension or removal from theUN Vendor List

Submit proof of reinstatement in the UN Vendor
database

Other reasons related to integrity(Reputational concerns as a resultof a finding of guilt or admission ofwrongdoing)

All delistings for this reason will be reviewed on acase-by-case basis. The UN Global Compact
generally recommends for companies that aredelisted for this reason to wait at a minimum three
years before reapplying in order to provide sufficient
time to address the issues of concern. Thisrequirement also applies to companies who decided
to voluntarily withdraw for their inability to continue
to uphold their commitment to the Ten Principles.
Readmission will be based on a substantive review ofthe following:● Whether the CoP sufficiently describes actions
taken to remedy the situation detailing alignment
to the Ten Principles.
● If applicable, the company should provide theoutcome of an assessment conducted by aregulatory body or independent third party.

Other reasons related to integrity(Egregious abuse of the UN/UN
Global Compact name or logo)

Submit clearance from the UN Office of Legal Affairs.

Non-responsive

Submit proof of payment for the forthcoming 12months.

Product-based exclusionary criteria

Demonstrate that revenue is no longer derived fromthe production and/or manufacturing of tobacco

Last Update: March 20245