gssbsecretariat@globalreporting.org

Item 05 – GRI Sector Standard
Project for Financial Services –Technical Committees terms ofreference
For GSSB information
Date30 January 2023

Meeting16 February 2023

Project

GRI Sector Standard Project for Financial Services

Description

This document sets out the terms of reference for the technical committees for theGRI Sector Standard Project for Financial Services for GSSB information.

This document has been prepared by the GRI Standards Division and is made available to observers
at meetings of the Global Sustainability Standards Board (GSSB). It does not represent an officialposition of the GSSB. Board positions are set out in the GRI Sustainability Reporting Standards. TheGSSB is the independent standard setting body of GRI. For more information visit
www.globalreporting.org.

© GRI 2023

Contents
Terms of Reference ................................................................................................................................ 3
Background ......................................................................................................................................... 3
Mandate of the Financial Services Technical Committees ................................................................. 3
Scope of work .................................................................................................................................. 4
Responsibilities of the Standards Division and GSSB ..................................................................... 4
Additional considerations ................................................................................................................. 5
Composition of the technical committees ............................................................................................ 5Selection criteria .............................................................................................................................. 6
Technical committee commitments ..................................................................................................... 6Ensuring confidentiality ........................................................................................................................ 7
Public communications protocol .......................................................................................................... 7
Appendix 1. Proposed project timeline ................................................................................................ 8Appendix 2. Meeting schedule ............................................................................................................ 9Contact
Email: financialservices@globalreporting.org
For more information: visit the project webpage

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1Terms of reference

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These terms of reference outline the mandate of the GRI Sector Standard Project for Financial
Services Technical Committees, including their selection and appointment, primary objectives, andtime commitments. The GRI Sector Standard Project for Financial Services will engage threetechnical committees with the following formal titles:

678•
••

Banking Technical Committee
Insurance Technical Committee
Capital Markets Technical Committee

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The terms of reference apply to the members on each technical committee, in their role on thespecific technical committee to which they have been appointed.

1112A committee member can be appointed to more than one technical committee. In such cases, theseterms of reference will apply to their roles on multiple technical committees.

1314As outlined in these terms of reference, the three technical committees will be required to collaborate
via a cross-sector exchange in which all technical committees are present.

15Background

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The Global Sustainability Standards Board (GSSB), GRI’s independent standard-setting body, has
identified the banking, insurance, and capital markets sectors as a priority for developing GRI Sector
Standards. A Sector Standard will be developed for each sector as part of a portfolio project called theGRI Sector Standard Project for Financial Services.

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The objective of sustainability reporting using the GRI Standards is to provide transparency on how
an organization contributes or aims to contribute to sustainable development. The GRI Standards
enable an organization to publicly disclose its most significant impacts on the economy, environment,and people, including impacts on human rights and how the organization manages these impacts.

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Sector Standards provide information for organizations in a given sector about their likely material
topics. Sector Standards also contain a list of disclosures for organizations to report information about
their impacts in relation to each likely material topic. They are designed to enhance the global
comparability and quality of information within a sector, enable greater transparency andaccountability of organizations, and support informed decision-making by stakeholders.

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The GRI Sector Standard Project for Financial Services aims to develop Standards that improve thesustainability reporting of banking, insurance, and capital markets organizations, making reporting
comprehensive and consistent across the sectors. It will be carried out following the GSSB Due
Process Protocol.

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See the project proposal for more information.

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Mandate of the Financial Services TechnicalCommittees

363738Sector Standards are developed using multi-stakeholder expertise, authoritative intergovernmental
instruments, and other relevant evidence. The technical committees will contribute their expertise todevelop Sector Standards for banking, insurance, and capital markets.

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The overall work of the technical committees should support sustainability reporting as promoted bythe GRI Standards.

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41

Scope of work

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The technical committees will be responsible for developing Sector Standards for the banking,insurance, and capital markets sectors for the consideration of the GSSB. Within the context of theGRI Sector Program, the three sectors within the Financial Services Project are described in theproject proposal.

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The technical committees will be tasked with providing recommendations on:

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the context of the banking, insurance, and capital markets sectors respectively, in relation tosustainable development, including relevant Sustainable Development Goals andinternational instruments and agreements;
the likely material topics for organizations in the banking, insurance, and capital marketssectors based on significant impacts on the environment, economy, and people, including
human rights (that may also include financed, facilitated, or portfolio impacts);
the description of these impacts and authoritative references that evidence these impacts;
the disclosures from GRI Topic Standards that are relevant for organizations from thebanking, insurance, and capital markets sectors to report on each likely material topic;
the cross-sector exchange, where the technical committees will provide recommendations on
the reporting approach and disclosures relevant to the impacts that organizations in these
sectors have through allocating capital (through investment or debt financing). Additionally,
the cross-sector exchange will aim to ensure alignment on the descriptions and reporting onother common likely material topics;
additional reporting that is recommended for disclosure by organizations in the banking,insurance, and capital markets sectors. Additional sector reporting is only included when theTopic Standards do not provide disclosures that sufficiently reflect the impacts associatedwith the sectors.

The technical committees may also provide recommendations on:•••

the scope, relevant sector classification identifiers, and the Sector Standard name;considerations that may be relevant to Sector Standards for related sectors, specifically to thesectors included in the Financial Services project; andrevisions or updates to other GRI Standards.

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Impacts identified within this project for which no GRI Standard exists will be assessed and prioritizedby the GSSB for future GRI Standards development.

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The technical committees will not be responsible for editing the stylistic and grammatical presentationof deliverables. The Standards Division will undertake such edits to ensure consistency with existing
GRI documents. Any style recommendations made by the technical committees will be reviewed andconsidered by the Standards Division in-house editorial team.

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Responsibilities of the Standards Division and GSSB

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The Standards Division is responsible for:78

•overall project management and ensuring compliance with the GSSB Due Process Protocol;

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facilitating, providing logistical support, and preparing materials for technical committee
meetings;

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maintaining an online collaboration platform for the technical committees;82•

engaging with the GSSB and other GRI Governance bodies;83•engaging other experts and interested parties in a peer review and on an as-needed basis;

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coordinating public exposure of the draft Sector Standards, including collecting andsummarizing feedback for consideration by the technical committees;

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undertaking research to support the development of the Sector Standards; and87•

drafting, editing, proofreading, and finalizing the content of the Sector Standards.

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The Standards Division will draft the Sector Standards and other relevant deliverables in accordancewith the recommendations of the technical committees. The Standards Division will use the Sector
Standard template and apply the appropriate house rules for terminology, style, and presentation.

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The GSSB approves the draft Sector Standard for public exposure and the final content of a Sector
Standard through a formal voting process. The GSSB will review the drafted contents and may ask
one or more of the technical committees to conduct further research and/or develop the draft
recommendations. Technical committee members should be committed to supporting the revision ofdraft contents in addition to developing these contents. Further information on the role and authority ofthe GSSB can be found in the GSSB Due Process Protocol.

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Additional considerations

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The development of the Sector Standards is to be carried out within the existing structure andtemplate of the GRI Standards, including preserving the hierarchy, coherence, and implementation
approach of the GRI Standards. Sector Standard content must be in line with the ‘in accordance’model outlined in GRI 1: Foundation 2021.

102103104105The technical committees should aim to develop topic descriptions that are clear, consistent, andfocused on impacts from a sustainable development perspective. Content should also seek to be inline with key authoritative intergovernmental instruments (such as instruments of the United Nations,the International Labour Organization, and the OECD).

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The discussions of the technical committees are confidential, but any recommendations made by thetechnical committees to the GSSB will be publicly available in accordance with the GSSB Due
Process Protocol. Meeting materials are confidential and should not be shared outside the technicalcommittees without prior permission from the Standards Division.

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GRI will hold the copyright of any deliverables associated with the project.

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Composition of the technical committees112
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It is anticipated that each sector-specific technical committee will have approximately eight members.
Each technical committee will aim to have at least one person drawn from each constituency on which
the membership of the GSSB is based: business enterprises, investment institutions, labor, civilsociety, and mediating institutions.

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In addition, geographical, gender, and cultural diversity will be considered. There can only be one
representative per organization in each technical committee.

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Table 1: Descriptions of constituencies represented on each Technical Committeea) An enterprise (other than a mediating or investment institution) that has
Businessbeen established in order to generate a profit for the benefit of its
enterpriseinvestors or owners; orb) An organization representing the collective interests of those falling into
category ‘a’.
Investment
institution

An enterprise primarily concerned with the direct or indirect, long-term
investment of funds in business – including, but not limited to, asset owners,
asset managers, development banks, exchanges, rating agencies, andmarket information brokers.

Labor

An organization established independently of employers and governments torepresent the interests of workers.

Civil society

An organization established to promote or secure a public good relating tosustainability (environmental, social, and governance) that does not fall into
any of the categories defined above.

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Mediating
institution

An individual or organization that provides goods and/or services associatedwith the reporting process and benefits from doing so.

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A GSSB sponsor(s) may join technical committee meetings.

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Selection criteria

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In accordance with the GSSB Due Process Protocol, members of the technical committees areappointed by the GSSB. The principal criterion for selecting the technical committee is relevant
knowledge and experience of a broad range of sustainable development issues for the banking,insurance, and capital markets sectors.

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Members must be able to participate in technical committee meetings held in English and provide
written feedback in English when requested.

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In addition, the following criteria will be considered:

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•••
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relevant knowledge of sustainability reporting for the sector;
familiarity with the needs of users of sustainability reports;
related experience with multi-stakeholder initiatives;
understanding of and willingness to work in a consensus-based, multi-stakeholder technicalcommittee.

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Technical committee commitments

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Technical committee members are expected to:

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act in an individual capacity, exclusively in the public interest, and according to due process
as defined in the GSSB Due Process Protocol;

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review the materials provided by the Standards Division in advance of technical committee
meetings in order to participate actively;

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provide timely feedback on documents or other materials distributed by the Standards
Division;

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•collaborate with other technical committees through the cross-sector exchange to ensurealignment across the different Financial Services Standards (banking, insurance, and capitalmarkets) where reasonable;

144•work in a manner that aims at achieving consensus.

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The development of Sector Standards for banking, insurance, and capital markets is expected to takeup to 30 months following the appointment of the technical committees. See the timeline included inAppendix 1.

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The estimated time commitment for each technical committee member is approximately 80 hours
across the entire project, including the possibility of a two-day in-person meeting. Members commit toattending approximately 40 hours of meetings and reviewing the draft Sector Standard a minimum of
three times during that period. Members also commit to planning sufficient time to prepare formeetings, review other materials, and engage in supplementary content creation methods. It isestimated that this may result in up to 40 hours of time commitment across the project (excluding any
necessary travel time).

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Meetings and other engagement methods will vary depending on the needs of the technicalcommittees and the project, such as the cross-sector exchange. Commonly used methods include fullgroup meetings in person and virtually, sub-group workshops, and digital content creation platforms.
The use of these methods will also consider any travel restrictions or risk factors related to Covid-19.
Availability to travel to Amsterdam for a two-day in-person meeting in October or November 2023 isexpected.

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Virtual meetings are normally held between 1.00-2.30 pm Central European Time (CET), so thatmembers in most time zones can join. This will be adjusted based on the final geographicalrepresentation of the technical committees.

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Specific dates for virtual and in-person meetings will be defined based on the availability of technicalcommittee members within the time frames indicated below. This timeline is subject to change due to,for example, members’ availability, project scope changes, and internal resourcing availability.

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See appendix 1 for the proposed meeting schedule and an itemized time commitment.

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Technical committee members volunteer their time. There is no fee or compensation associated withparticipation in a technical committee. Upon request, technical committee members will be eligible fortravel and accommodation reimbursement for in-person meetings in accordance with GRI policies.

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Ensuring confidentiality

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Technical committee meetings are held under the Chatham House Rule: ‘When a meeting, or part
thereof, is held under the Chatham House Rule, participants are free to use the information received,
but neither the identity nor the affiliation of the speaker(s), nor that of any other participant, may berevealed.’176
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Meeting materials are confidential; they can be shared with colleagues for input, but not with outside
parties without prior permission from the GRI Standards Division.

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Public communications protocol

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Public communication on issues related to the activities of the technical committees and thedevelopment of the GRI Standards is the responsibility of the GSSB. Technical committee members
may publicly express their personal opinions and views but may not speak on behalf of the technicalcommittee, GSSB, or GRI.

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The names and biographies of members will be published on the GRI website. Members are welcome
to publicize their participation and the activities of the technical committees through press releases orsocial media channels. Members are asked to work with the Standards Division or GRI’s
communication team to coordinate any such activity ahead of time.

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Technical committee members are advised to use the following when referring to their participation inthis process:

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‘[name of member] has been appointed by the Global Sustainability Standards Board (GSSB), GRI’s
independent standard-setting body, to serve on a technical committee to produce a Standard for the[banking/insurance/capital markets] sector. This work will also consider how organizations in thissector should report sustainability information with regards to their role as investors across manyother sectors.’
In such communication, technical committee members will always frame their contribution andparticipation in relation to the specific sector for which they were selected (e.g., the banking sector
and Banking Technical Committee).

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Appendix 1. Proposed project timeline

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To be completed prior to technical committee appointments. The commencement date of this project
has not been finalized and is subject to resource availability. The following project timeline is basedon the estimated project duration.

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Appendix 2. Meeting schedule

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The following table outlines the minimum number of meetings expected to occur throughout theproject. Specific dates for all meetings will be defined based on the availability of technical committee
members within the time frames indicated below. This timeline is subject to change due to, forexample, members’ availability, project scope changes, and internal resourcing availability.

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MeetingTime commitmentApproximate dateTechnical committee
meeting 1 (all sector briefingand project introduction)

2-hour virtual meeting + 2 hours review
of preparatory materials

May 2023

Technical committee
meeting 2

3-hour virtual meeting + 2 hours review
of preparatory materials

July 2023

Technical committee
meeting 3 (cross-sectorexchange)

2-day in-person (approx. 12 hours)
meeting + 2 hours review of preparatory
materials

October or November
2023

Technical committee
meeting 4

2-hour virtual meeting + 2 hours review
of preparatory materials

January 2024

Technical committee
meeting 5 (cross-sectorexchange)

3-hour virtual meeting + 2 hours review
of preparatory materials

April 2024

Technical committee
meeting 6

2-hour virtual meeting + 2 hours review
of preparatory materials

July 2024

Sub-group meetings

1.5-hour virtual sub-group meeting

As needed

Public comment period

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October-December
2024

Technical committee
meeting 7 (cross-sectorexchange)

3-hour virtual meeting + 2 hours review
of preparatory materials

March 2025

Technical committee
meeting 8

2-hour virtual meeting + 2 hours review
of preparatory materials

April 2025

Technical committee
meeting 92-hour virtual meeting + 2 hours review
of preparatory materials

July 2025

In addition to the meetings listed above, it is expected that the technical committees will participate ina survey following meeting 1, review the draft Sector Standard three times, twice prior to the public
exposure and once following, and participate in stakeholder engagement activities during the public
exposure period and support the launch of the Standard.

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