SUSTAINABILITY DISCLOSURE
GUIDELINES1

1

Rule Making History

1.
2.
3.
4.
5.
6.

The draft Guidelines were presented to the Rules and Adjudication Committee of Council (RAC) at the RAC Meetingof 29 November 2016 and approved for exposure to stakeholders for comments;
The draft Guidelines were exposed for stakeholders’ comments from 14 December 2016 to 16 January 2017;
The RAC considered the draft Guidelines, and stakeholders’ comments thereon at its Meeting of 20 March 2017and approved the draft Rules for submission to the National Council of The Exchange (Council);
The Council approved the draft Guidelines at its Meeting of 25 May 2017 for submission to the Securities andExchange Commission (SEC);The Council approved Guidelines were submitted to the SEC for approval on 16 June 2017;
The SEC approved the Guidelines on 9 November 2018.

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1.

Introduction

Page 3

2.

Section 1: Sustainability Value Proposition

Page 4

3.

Section 2: Approach to Integrating Sustainability in Organisations

Page 94.

Section 3: Principles and Core Elements

Page 125.

Section 4: Reporting Requirements

Page 17Bibliography

Page 21-2
Authorised Use Only – PUBLICINTRODUCTION
The integration of sustainability principles to business strategy and operations are increasingly assuming
higher positions on the agenda of policy makers, market regulators, businesses and investors alike.
Organisations globally are demonstrating that responsibility and profitability though not always mutually coexistent, they are not incompatible, and are in fact wholly complementary. A recent paper from the Smith
School of Enterprise and the Environment, part of the University of Oxford, stated that there is a remarkablecorrelation between diligent sustainability business practices and economic performancei.
The Nigerian Stock Exchange (“The Exchange” or “NSE’) recognizes the impact of sustainability performanceon the overall performance of businesses. While governments have historically initiated and led sustainability
policies and regulation, market regulators and operators are increasingly playing a central role in encouraging
good corporate governance and transparency among companies or Issuers listed on their stock exchanges.
In view of the aforementioned, The Exchange has commenced a phased project to integrate sustainability
reporting for its listed companies. The implementation process which started in 2015 is expected to end in2017. The first major step in this implementation was the hosting of the inaugural Nigerian Capital Market
Sustainability Conference (NCMSC), which served as a stakeholder engagement session to discuss thebusiness value of sustainable investment, enhancing corporate transparency and ultimately performance on
Environmental, Social and Governance (ESG) issues. The outcomes from the conference and results fromrelevant assessments have resulted in the production of the Sustainability Disclosure Guidelines (SDG).
Consequently, the NSE also held a Sustainability Reporting Seminar on June 8, 2016 to intimate stakeholders
with the Guidelines, the reporting format and template, coupled with the real value proposition of reporting.
These Guidelines provide the value proposition for sustainability. They provide a step by step approach on
integrating sustainability in organisations, and detail indicators that should be considered when providing
annual disclosure to The Exchange.
The Exchange encourages all Issuers to consider and adopt the practice of sustainability reporting. These
Guidelines have been developed while recognizing that Issuers may be at varying levels of understanding therequirements for the disclosure of sustainability information relating to ESG issues. We recognize that moving
to best practice sustainability performance reporting and disclosure is a journey, and that preparing a
Sustainability Report can be challenging especially for first time reporters and small scale companies.
Therefore, we encourage the companies to apply the recommendations of these Guidelines as much as
possible on the basis of respective resources, and expertise.

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SECTION 1. RELEVANCE AND VALUE PROPOSITION
1.1 Overview
The leadership role of governments, market regulators, operators, inter-governmental organisations andinternational associations with regard to implementing sustainability policies and regulation, is increasingly
evidenced by the growing trend towards responsible investment through initiatives such as United Nations
Environment Programme Finance Initiative (UNEPFI), United Nations Principles for Responsible Initiative(UNPRI), Sustainable Stock Exchanges Initiative (SSE), World Federation of Exchanges (WFE), Investor
Network on Climate Risk and the Corporate Sustainability Reporting Coalition led by AVIVA Investors.

Regulatory And Voluntary Initiatives
Requiring Sustainability Reporting
200
150
Mandatory

100

Voluntary

50
0

2006

2010

2013

Global sustainable investment market has continued to grow, rising from $13.3 trillion at the outset of 2012
to $21.4 trillion at the start of 2014, and from 21.5 percent to 30.2 percent of the professionally managed
assets. In the past 10 years, ESG Funds and Asset under Management (AUM) has continued to grow both inabsolute and relative terms. For instance, AUM for PRI signatories now stands at more than $59 trillion, up
from $4 trillion at the PRI’s launch in 2006.

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Number of investors and AUM signed up to UN PRI

70

1600
1400
1200
1000
800
600
400
200
0

60
50

40
30
20
10
0

Apr- Apr- Apr- Apr- Apr- Apr- Apr- Apr- Apr- Apr06
07
08
09
10
11
12
13
14
15
Assets under management (US$ trillion)
Number of Signatories

Source: United Nations Principles for Responsible Investment (UNPRI)

Therefore, transparency around how a company manages ESG risks and opportunities should be disclosed aspart of its value proposition. As a result, the financial community increasingly recognizes that to thoroughly
assess an investment, it should also analyze relevant ESG factors.

1.2. Sustainability: Conceptual Clarification
It is important to note that these Guidelines use the term “Sustainability” as it is commonly used among
companies, while the term “ESG” is used interchangeably as it is common among investorsii. For the purposeof these Guidelines, both terms encompass the broad set of economic, environmental, social and governanceconsiderations that can impact a company’s ability to execute its business strategy and create or destroy
value.
There is no universally agreed definition of what sustainability means. However, the idea of sustainability
stems from the concept of sustainable development which became common language at the World's first
Earth Summit in Rio in 1992. The original definition of sustainable development as stated in the Brundtland
Report for the World Commission on Environment and Development (1992) is usually considered to as"Development that meets the needs of the present without compromising the ability of future generations
to meet their own needs."

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While ESG factors are at times called “non-financial” or “extra-financial”, how a company manages them has
financial consequences. They can impact:-

Access to capital
Resource efficiency, cost savings and productivity
Risk management
Revenue growth and market access
Brand value and reputation
License to operate
Human capital- Employee retention and recruitment
Company value as an acquisition target
Ability to acquire other high-quality companies

For the purpose of these Guidelines, sustainability will encompass the following areas:Economic: This relates to the organisation’s impact on the economic conditions of its stakeholders
and the interaction or relationship with the economic systems at local, national, and global levels. It
does not merely focus on the financial conditions of organisations.
Financial performance is fundamental to understanding an organisation and its own sustainability.
However, this information is normally already reported in financial accounts. What is often reported
less, and is increasingly sought by users of sustainability reports such as investors, is theorganisation’s contribution to the sustainability of a larger economic system.
Environmental: The environmental dimension of sustainability concerns an organisation’s impact onliving and non-living natural systems, including ecosystems, land, air, and water. Environmental
indicators cover performance related to inputs (e.g., material, energy, water) and outputs (e.g.,
emissions, effluents, waste). iii
Social: The social dimension of sustainability concerns the impacts an organisation has on the social
systems such as labour practices, human rights and relationship with communities within which it
operates. iv
Governance: This will include subject areas of the NSE Corporate Governance Rating System. A key
indicator of sustainability integration is clear assignment of accountabilities and responsibilities forenvironmental, social and broader economic performance from the Board level through thecorporate/group executive to the executive and operational management of each business division
within a company.

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1.3 Relevance and value proposition for integrating sustainability in your organisation and reporting:
Enhanced Brand and Increased Competitive
Advantage:
 Exhibit corporate adherence to industry
ethical standards and national andinternational frameworks on corporate
sustainability and sustainable development,
particularly in light of the UN Sustainable
Development Goals.

The Natural Marketing Institute (NMI) has foundin their consumer research that knowing acompany is mindful of its impact on theenvironment and society makes consumers 58%
more likely to buy their products or services.

 Enhance corporate reputation by
improving stakeholders’ perception of acompany
throughreporting-‐related
stakeholder engagement.
 Improve employee perception of thecompany, helping to attract, retain, motivate,
and align new and existing employees.
Increased Productivity and Reduced Costs
Through development of more sustainablebusiness practices, efficiency in operations will
increase. With better use and conservation of
resources, operations will be streamlined andcosts will decrease.

Improve Financial and Investment Opportunity
Financial and investment analysts have recognizedcompanies who have developed sustainability
plans with regards to energy efficiency andreduction of environmental impact as animportant evaluation criterion.

An example of a company implementing longterm sustainability measures to increase overall
efficiency and operational performance is
Walmart. Wanting to take the lead in a sectorwide evolution towards sustainability, Walmart
set goals of becoming totally supplied byrenewable energy, having zero waste and selling
products that sustain people and the environment
back in 2005. Over the 2012 fiscal year, Walmart
saved about US$231 million by means of efficientwaste management and recycling; an estimated
US$150 million were saved over 2013 throughrenewable energy projects and a zero waste
programme.
A Goldman Sachs’ study revealed that companies
in six industries considered leaders inenvironmental, social and governance policies
have outperformed the general stock market by
25%, with 72% of the companies outperforming
their peers since August 2005. Another study
based on CFO Research that surveyed 175 top
finance executives, showed that more than halfbelieve their companies will increase revenue
through strong sustainability initiatives.
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Increase Employee Retention and Recruitment
Employees want to work with companies who are‘doing the right thing’ and being proactive withcorporate environmental and social programs.

Compliance and Risk Management
Better management of risks that arise fromsustainability issues begins with detecting key
risks of operational disruptions from climatechange, resource scarcity, or community issues(such as boycotts or delays in getting permits for
manufacturing).

A 2007 survey by Adecco, an international HR
company, found that 52% of employed adults feel
their companies should do more about theenvironment. More importantly, companies want
their employees to be loyal and ethical to theorganisation. According to a Global Study ofBusiness Ethics by the American Management
Association, one of the top five internal practices
for ensuring an ethical corporate culture isdeveloping corporate social responsibility
programmes.
Faced with potential supply constraints, Nestlé,for example, launched a plan in 2009 thatcoordinates activities to promote sustainablecocoa: producing 12 million stronger and moreproductive plants over the next ten (10) years,
teaching local farmers efficient and sustainable
methods, purchasing beans from farms that use
sustainable practices, and working withorganisations to help tackle issues like child labourand poor access to health care and education.
The mining giant BHP Billiton managed its
exposuretoemerging
regulations
bysystematically reducing its emissions.

Returns on capital
Most companies creating value throughsustainability look first to improving returns on
capital, which often means reducing operating
costs through improved natural-resource
management (such as energy use and waste).

Dow Chemical, for example, reported that it
invested less than US$2 billion since 1994 to
improve its resource efficiency. To date thecompany has saved more than US$9.8 billion fromreduced energy consumption and water waste inits manufacturing processes, even as it continues
to develop innovations.

Source: The business of sustainability: McKinsey Global Survey results
The choice for companies today is not if, but how, they should manage their sustainability activities.
Companies can choose to see this agenda as a necessary evil—a matter of compliance or a risk to be managed
while they get on with the business of business—or they can think of it as a novel way to open up new
business opportunities while creating value for society.

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SECTION 2. APPROACH TO INTEGRATING SUSTAINABILITY IN ORGANISATIONS
Embedding sustainable business practices into the DNA of an organisation requires total commitment fromthe Board of Directors (or those responsible for governance) and the senior executive team. It is a change
program that should be carefully planned and implemented in measured stages.
The Board of Directors has responsibility for integrating sustainable business practices in the administration,
growth and development of organisations. The key is to set and clarify the corporate strategy, the objectives
and required outcomes from an ESG perspective. The organisation should then engage, enhance and develop
its key resources and relationships to implement its strategy to achieve the sustainable business outcomes.
For companies to balance their financial, social, and environmental risks, obligations and opportunities,
sustainability should move from being an add-on to ‘just the way we do things around here.’
Step by Step Guide
There are various approaches to integrating sustainability. However, what these approaches all have incommon is that they seek to:

Integrate social, economic, governance and environmental aspects of the business.
It takes an inclusive approach to stakeholder involvement and empowerment.
It provides a long term view.

This diagram summarizes the strategic approach to embedding sustainability in a very simple way:

Identify key
issues & drivers

Developstrategy

Establish
governance &accountability

Set targets &action plan

MonitorReport &evaluate Identify key issues & drivers – Why is embedding sustainability important to my organisation? What
are the internal and external drivers? What are my organisation’s material relevant sustainability
issues?
 Develop strategy – What does good practice look like for each material issue? What broad strategies
can be implemented to achieve this?
 Establish governance & accountability – Who does what to deliver these broad strategies permaterial issue?
 Set targets & action plan – Where do we want to be in ‘x’ number of years? What concrete
actions/activities do we need to achieve the targets? Which of our existing initiatives can we include
to the action plan to help deliver our targets?
 Monitor, report & evaluate – How have we performed so far? Are our processes working?
1. Identify key issues & drivers: It is important to be clear about how sustainable development fits in withthe organisation’s core business, activities and objectives. Clearly understanding this will help companies tounderstand several key things, such as: Why they should adopt a more proactive approach to integrating sustainability within core business;
 The corresponding risks of not doing so; It will give a better understanding of the benefits organisations might achieve.
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This process will also need to consider the implications for operations and core activities, whether that isproviding products and services or setting public policy. The issues and drivers for embedding sustainability
will vary according to the context in which a particular organisation operates. But they are likely to follow a
consistent set of themes, which may initially be explored using a simple analysis, for example by using amethod like PESTEL: Political – e.g. what are the political expectations on the organisation to embrace sustainability?
 Economic – e.g. what are the economic drivers for sustainability for example in reducing resource
costs?
 Social – e.g. what is the social context in which the organisation operates?
 Technological – e.g. are there technological changes that embedding sustainability might help theorganisation to adapt to?
 Environmental – e.g. how might environmental changes affect the organisation in the future, or theenvironmental impacts the organisation has?
 Legislative – what are the regulatory drivers affecting the organisation’s performance.
2. Develop strategy: Developing a sustainability strategy helps to address the issues and build on the drivers
to embed sustainable development in an organisation. Strategy development has a number of key areas. For
example:







Establishing a central vision and a core set of values or principles.
Establishing a governance structure and some form of risk assessment and prioritisation process.
Identifying priorities, setting objectives and establishing the means to deliver them.
Internal and external stakeholder engagement.
Accurate documentation of decisions and regular review of strategy.
Progress on moving towards targets being regularly monitored, evaluated and reported.

In functional terms the strategic process needs to incorporate the following: Leadership – developing and encouraging organisational ownership of the vision.
 Action planning – identifying the objectives and how to achieve them.
 Implementation – setting clear objectives with corresponding milestones and deadlines.
 Monitoring, learning and adapting.
 Coordination with other strategy processes and multi-stakeholder participation.
3. Establish governance & accountability: Strong governance and accountability are central to the effective
implementation of a sustainable development strategy, and to embedding sustainability in any organisation.
Good governance is about reaching sound decisions, putting measures in place to implement them andmaking clear the individuals and organisational structures accountable for delivery.
An overarching governance system will provide oversight and support consistent delivery across all material
issues. Good governance will have a number of different elements, which will include: Defining responsibility and delivery clearly for management.
 Embedding sustainability performance in the organisation’s reporting and appraisal structures e.g.
in staff performance assessments.
 Coordinating management structures across the organisation to ensure that the broad nature ofsustainability issues does not lead to gaps in accountability emerging.
 Operating and managing clear lines of reporting.
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4. Set targets & action plan: The production of quantified and time bound sustainability objectives isimportant to demonstrate organisational commitments and focus. An organisation should devise an effective
action plan and set specific targets to work towards the sustainable development objectives set out in its
strategy.
5. Monitor, report & evaluate: It is not enough for an organisation to develop a sustainability strategy.
Delivery of the strategy needs to be implemented and regularly monitored. Monitoring progress towards
sustainability objectives, reporting that information openly and evaluating its implications provides a criticalfeedback process into decision-making about an organisation’s future activity. Monitoring will be vastly
improved it if is based on clear indicators, and built into strategies to steer processes, track progress, distil
and capture lessons, and signal when a change of direction is necessary. v

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SECTION 3. PRINCIPLES AND CORE ELEMENTS
These Guidelines encourage and enable businesses to go beyond compliance and embrace sustainability as
part of their business ethos. The following nine (9) principles and the corresponding core elements
encompass the indicators of what constitutes responsible business conduct. It also delineates thefundamentals of implementing the Guidelines. The Board of Directors is responsible for incorporating theseprinciples and Guidelines into the management of organisations.

FOCUS AREA: GOVERNANCE
3.1 Principle 1: Businesses should conduct and govern themselves with Ethics, Transparency andAccountability.
Core Elements:
1.

Businesses should develop governance structures, procedures and practices that ensure ethical conduct
at all levels; and promote the adoption of this principle across its value chain.

2.

Businesses should communicate transparently and assure access to information about their decisions
that impact relevant stakeholders.

3.

Businesses should not engage in practices that are abusive, corrupt, or anti-competitive.

4.

Businesses should truthfully discharge their responsibility on financial and other mandatory disclosures.

5.

Businesses should report on the status of their adoption of these Guidelines as suggested in thereporting recommendations in this document.

6.

Businesses should avoid complicity with the actions of any third party that violates any of the principles
contained in these Guidelines.

3.2 Principle 2: Businesses, when engaged in influencing public and regulatory policy, should do so in a
responsible manner.
Core Elements:
1.

Businesses, while pursuing policy advocacy, should ensure that their advocacy positions are consistent
with the Principles and Core Elements contained in these Guidelines.

2.

To the extent possible, businesses should utilize their trade, commerce and industry chambers
and associations, and other such collective platforms to undertake such policy advocacy.

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FOCUS AREA: ECONOMIC
3.3 Principle 3: Businesses should provide products and services that are safe and contribute tosustainability throughout their life cycle.
Core Elements:
1.

Businesses should assure safety and optimal resource use over the life-cycle of their product – fromdesign to disposal – and ensure that everyone connected with it- designers, producers, value chain
members, customers, consumers and recyclers-are aware of their responsibilities.

2.

Businesses should ensure relevant and informative product labelling, appropriate and helpful marketing
communication, full details of contents and composition, and promotion of safe usage and disposal of
their products and services.

3.

In designing the product, businesses should ensure that the manufacturing processes and technologies
required to produce it are resource efficient and sustainable.

4.

Businesses should regularly review and improve upon the process of new technology development,
deployment and commercialization, incorporating social, ethical, and environmental considerations.

5.

Businesses should recognize and respect the rights of people who may be owners of traditional
knowledge, and other forms of intellectual property.

6.

Businesses should recognize that over-consumption of resources results in unsustainable exploitationof our planet's resources, and they should therefore promote sustainable consumption, including
recycling of resources.

7.

Responsible procurement practices which addresses transparency, confidentiality, fairness, child labour,
corruption, conflict of interest, support for SME and women owned businesses, forced labour, social
responsibility and Health & Safety should be maintained.

3.4 Principle 4: Businesses should engage with and provide value to their customers and consumers in a
responsible manner.
Core Elements:
1.

Businesses, while serving the needs of their customers, should take into account the overall wellbeing of the customers, consumers, and that of society.

2.

Businesses should ensure that they do not restrict customers and consumers’ freedom of choice andfree competition in any manner while designing, promoting and selling their products.

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3.

Businesses should disclose all information truthfully and factually, through relevant and informative
labelling and other means, including the risks to the individual, to society and to the planet from the useof the products, so that the customers can exercise their freedom to consume in a responsible manner.
Where required, businesses should also educate their customers on the safe and responsible usage of
their products and services.

4.

Businesses should promote and advertise their products in ways that do not mislead or confuse theconsumers or violate any of the principles in these Guidelines.

5.

Businesses should exercise due care and caution while providing goods and services that result in over
exploitation of natural resources or lead to excessive conspicuous consumption.

6.

Businesses should provide adequate grievance handling mechanisms to address customer andconsumer concerns, and feedback.

FOCUS AREA: SOCIAL
3.5 Principle 5: Businesses should promote the wellbeing of all employees.
Core Elements:
1.

Businesses should respect the right to freedom of association, participation, collective bargaining, andprovide access to appropriate grievance redress mechanisms.

2.

Businesses should provide and maintain equal opportunities at the time of recruitment as well as during
the course of employment irrespective of caste, creed, gender, race, religion, or disability.

3.

Businesses should not use child labour, forced labour or any form of involuntary labour, paid or unpaid.

4.

Businesses should take cognizance of the work-life balance of its employees, especially that of women.

5.

Businesses should provide facilities for the wellbeing of its employees including those with special needs.
They should ensure timely payment of fair living wages to meet basic needs and economic security ofthe employees.

6.

Businesses should provide a workplace environment that is safe, hygienic humane, and which upholds
the dignity of the employees. Business should communicate this provision to their employees and train
them on a regular basis.

7.

Businesses should ensure continuous skill and competence upgrading of all employees by providing
access to necessary learning opportunities, on an equal and non-discriminatory basis. They should
promote employee morale and career development through enlightened human resource
interventions.

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8.

Businesses should create systems and practices to ensure a harassment free workplace where
employees feel safe and secure in discharging their responsibilities.

3.6 Principle 6: Businesses should respect the interests of, and be responsive towards all stakeholders,
especially those who are disadvantaged, vulnerable and marginalized.
Core Elements:
1.

Businesses should systematically identify their stakeholders, understand their concerns, define purpose
and scope of engagement, and commit to engaging with them.

2.

Businesses should acknowledge, assume responsibility and be transparent about the impact of theirpolicies, decisions, product and services, and associated operations on the stakeholders.

3.

Businesses should give special attention to stakeholders in areas that are underdeveloped.

4.

Businesses should resolve differences with stakeholders in a just, fair and equitable manner.

3.7 Principle 7: Businesses should respect and promote human rights.
Core Elements:
1.

Businesses should understand the human rights content of the Constitution of the Federal Republic of
Nigeria, national laws and policies and the content of the International Bill of Human Rights. Businesses
should appreciate that human rights are inherent, universal, indivisible and interdependent in nature.

2.

Businesses should integrate respect for human rights in management systems, in particular throughassessing and managing human rights impacts of operations, and ensuring all individuals impacted
by the business have access to grievance mechanisms.

3.

Businesses should recognize and respect the human rights of all relevant stakeholders and groups within
and beyond the workplace, including that of communities, consumers and vulnerable and marginalizedgroups.

4.

Businesses should, within their sphere of influence, promote the awareness and realization of humanrights across their value chain.

5.

Businesses should not be complicit with human rights abuses by a third party.

3.8 Principle 8: Businesses should support inclusive growth and equitable development.
Core Elements:
1.

Businesses should understand their impact on social and economic development, and respondthrough appropriate action to minimize the negative impacts.
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2. Businesses should innovate and invest in products, technologies and processes that promote the wellbeingof society.
3.

Businesses should make efforts to complement and support the development priorities at local andnational levels, and assure appropriate resettlement and rehabilitation of communities who have been
displaced owing to their business operations.

4.

Businesses operating in regions that are underdeveloped should be especially sensitive to local
concerns.

FOCUS AREA: ENVIRONMENT
3.9 Principle 9: Business should respect, protect, and make efforts to restore the environment.
Core Elements:
1.

Businesses should utilize natural and manmade resources in an optimal and responsible manner andensure the sustainability of resources by reducing, reusing, recycling and managing waste.

2.

Businesses should take measures to check and prevent pollution. They should assess the environmental
damage and bear the cost of pollution abatement with due regard to public interest.

3.

Businesses should ensure that benefits arising out of access and commercialization of biologicaland other natural resources and associated traditional knowledge are shared equitably.

4.

Businesses should continuously seek to improve their environmental performance by adopting
cleaner production methods, promoting use of energy efficient and environment friendly technologies
and use of renewable energy.

5.

Businesses should develop Environment Management Systems (EMS) and contingency plans andprocesses that help them in preventing, mitigating and controlling environmental damages anddisasters, which may be caused due to their operations or that of a member of their value chain.

6.

Businesses should report their environmental performance, including the assessment of potential
environmental risks associated with their operations, to their stakeholders in a fair and transparent
manner.

7.

Businesses should proactively persuade and support their value chain to adopt this principle.

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SECTION 4. REPORTING REQUIREMENTS
4.1. General Requirements:
All listed companies should ensure that the sustainability report contain information that is relevant andmeaningful to stakeholders. In identifying the material sustainability matters, the listed company should also
consider the themes and guidance provided in internationally accepted standards such as the Global
Reporting Initiative (GRI) Standard. Where multinational companies choose to adopt the reporting format of
their parents, the reports must fully address such companies’ Nigerian operations, and the matters stipulated
in these Guidelines. The following key areas should be considered:(a) The overall context on the internal structure, strategy, profile and governance of how the economic,
environmental, social risks and opportunities are managed. While also highlighting how theorganization addresses a specific disclosure theme.
(b) The scope and boundaries of the report. The report could be scoped on the basis of physicallocations of the organisation (geographical boundary); entities within the organisation(organisational boundary); and operations within the entire value chain.
(c) The material sustainability matters and how they are identified and managed. Materiality are topics
that reflect the organization’s significant economic, environmental, and social impacts, or thatwould substantively influence the assessments and decisions of stakeholders.
d) Stakeholder inclusiveness. The organization should identify its stakeholders, and explain how it has
responded to their reasonable expectations and interests.vi
Please note that this Guide is not comprehensive. The Exchange encourages an Issuer to identify anddisclose additional ESG issues that are relevant and material to its business. It may also refer to existing
internationally accepted sustainability reporting guidance such as the Global Reporting Initiative (GRI)
Standards for its relevant industry or sector.
4.2 Reporting Obligations :(a) All Issuers should comply with the foregoing sustainability reporting requirements.
(b) The Exchange shall publish annually the names of Issuers who submit their sustainability reports inaccordance with these Guidelines;(c) The Exchange may introduce sustainability ratings and indices, to assess and track the performanceof listed companies who make sustainability disclosures.
4.3. Format of Report
An Issuer may disclose its sustainability information and data in its annual report or in a separate
sustainability report. The reporting period should be in alignment with the same financial period. The
report should be submitted to The Exchange within the period allowed for the submission of annual
accounts.

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The report should contain a comprehensive description of the listed company’s management overview
and of economic, environmental, social and governance risks and opportunities. The Issuer should
consider the principles and themes set out in this Sustainability Reporting Guide.
The NSE also encourages reporting companies to consider getting their reports assured or
independently verified against international standards. Assurance of sustainability data increases thecredibility of the report by establishing that the information is accurate.

4.4. Performance Indicators:
Theme
Economic
Suppliers
RelationsManagementand Ethics

Responsible
Products andServices

Description

Principles Indicators/Metrics

Operating standards
for purchasing andthe selection of
suppliers.

3

Report on ethical procurement practices which
addresses transparency, confidentiality, fairness,child labour, corruption, conflict of interest,
support for SME and women owned businesses,
forced labour, social responsibility and Health &Safety.

Impact of products
and services on
stakeholders.

3,4Considers customer satisfaction and relationship,
Transparency in product information & labelling,
Health risk exposure/incidence due to productusage and Consumer education programmes.

This refers todiversity across theworkplace including
at managementlevel. These can be
categorized along
the dimensions ofgender, age andphysical abilities.

5,6*Percentage of employee per employee category
in each of the following diversity categories:- Gender- Age Group- Full Time against Contract

Engaging andinclusive work
environment thatspan acrossensuring
employability, skills
development andfair remuneration.

5

SocialDiversity intheWorkplace

Labourpractices*Percentage and ratio of Full Time Employee andContract Staff positions held by women.
*Percentage of Board Seats filled by Independents& women*Average hours of training per annum per
employee by employee category.
* Employee benefits.
* Employee Turnover Rate i.e. the percentage of
Change for FTEs and Contract staff.
*Availability and adherence
discrimination policy.

to

a

non-

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Occupational
Health &SafetyHuman Rights

Society

This focuses onsafety, health andwelfare of people
engaged in work or
employment.

5*Total number of injuries and fatalities relative toworkforce.

The rights ofindividual as
expressed in theInternational Bill for
Human Rights(comprising the1948 United Nations
Universal
Declaration of
Human Rights –UNDHR and the two
International
Covenants on
Human Rights of1966).

7

Company’s impact
on society and local
communities

8*Details and impact of Corporate Social
Responsibility (CSR)/Community based
programmes.

Activities to combat
corruption andbribery

1, 2*Report on how the organisation’s adherence toBribery/Anti-Corruption Code (BAC).

*Availability and adherence to policies on
occupational and global health issues.
*Human rights issues or statement in company’s
Human Resources and Suppliers Policies.
*Number of grievances about human rights
impacts filed, addressed, or resolved.

GovernanceAnticorruption*Training of employees on the anti-corruption.
*Incidents, fine or exposure related to anticorruption.

Environmental
3,9

Product andServices
Responsibility

The environmental
impact of products
and services in thecourse of theirlifecycle, (including
product design,*Product innovation to reduce impacts (e.g. ecofriendly, less chemicals/toxic substances etc.).
*Product stewardship (product’s impact on theenvironment).

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development,
testing, etc.)

Waste
management

Water

EnergyCompliance

Waste includes
hazardous and nonhazardous waste.

9*Ratio of waste to production.

Consumption and 9
efficient use ofwater resources.
Considers theefficient use andconsumption ofenergy as well as
energy generated
from renewablesources.

*Total weight or volume of hazardous waste /non-hazardous waste generated.

9

Adherenceof 9
activities to relevant
environmental laws.

*Recycling initiatives.
* Total volume of water used.
* Percentage of water recycled.
*Total energy consumption* Amount of reduction in energy consumption
achieved as a result of conservation and efficiency
initiatives* Alternative energy research (e.g. wind, biomass,solar, clean fuels) (investment amount and plans).
* Use of renewable energy (MWh)*Total monetary value of fines for non-complianceto environmental laws and regulations.

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What is sustainability? – HEC Global Learning
http://www.globalfootprints.org/sustainability
The business of sustainability: McKinsey Global Survey results- McKinsey & Company
http://www.mckinsey.com/insights/energy_resources_materials/the_business_of_sustainability_mckinsey_global_survey_results
The benefits of sustainability reporting – Global Reporting Initiative
https://www.globalreporting.org/resourcelibrary/The-benefits-of-sustainability-reporting.pdf
Benefits of Becoming a Sustainable Business- Eco efficiency
http://www.eco-officiency.com/benefits_becoming_sustainable_business.html
Network of Business Sustainability
http://nbs.net/
Sustainability 101: A strategic approach to Sustainability- Next Generation
http://www.nextgeneration.co.za/sustainability-101-a-strategic-approach-to-sustainability/
Sustainability Reporting Guide and Global Reporting Initiative G4 Guidelines - Bursa Malaysia Berhad
http://www.maicsa.org.my/download/technical/technical_announcements_150807_1_5.pdf
2014 Global Sustainable Investment Review - GSIA
http://www.gsi-alliance.org/wp-content/uploads/2015/02/GSIA_Review_download.pdf
PRI fact sheet – United Nations Principle for Responsible Investment
http://www.unpri.org/news/pri-fact-sheet/
From the Stockholder to the Stakeholder: How Sustainability Can Drive Financial Outperformance Study by
Oxford University - Smith School of Enterprise and the Environment and Arabesque Asset Management
The bottom line is a sustainability one- Financial Times
http://www.ft.com/intl/cms/s/0/176e1a7e-39bd-11e4-93da-00144feabdc0.html#axzz3yRQ4LpBp
National Voluntary Guidelines on Social, Environmental & Economic Responsibilities of Business
http://www.mca.gov.in/Ministry/latestnews/National_Voluntary_Guidelines_2011_12jul2011.pdf
iFrom the Stockholder to the Stakeholder: How Sustainability Can Drive Financial Outperformance Study by Oxford
University - Smith School of Enterprise and the Environment and Arabesque Asset Managementii
Sustainable Stock Exchanges Initiative Model Guidance on Reporting ESG Information to Investorsiii
Bursa Malaysia Berhad Sustainability Reporting Guide and Global Reporting Initiative G4 Guidelines
iv
Global Reporting Initiative G4 Guidelinesv
Next Generation Sustainability 101 – A strategic approach to Sustainabilityvi
Global Reporting Initiative G4 Guidelines

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