The United Nations Global Compact (UNGC) initiative encourages businesses worldwide to adopt sustainable and socially responsible policies. An integral part of this initiative is the annual Communication on Progress (COP) report, which allows companies to communicate their progress in implementing the UNGC’s ten principles. This blog post will delve into the essential elements of a COP report, using Novo Nordisk’s 2015 report as a case study, and discuss how organizations can improve their reporting.
What is a Communication on Progress (COP) Report?
A COP report is an annual public disclosure to stakeholders on a company’s efforts to implement the ten principles of the UN Global Compact. These principles cover areas such as human rights, labor, environment, and anti-corruption. The primary goals of a COP report are to enhance transparency, demonstrate commitment, and provide a platform for continuous improvement.
“In the journey towards sustainable development, the Communication on Progress report is not just a requirement, but a testament to a company’s commitment to transparency, accountability, and continuous improvement in aligning with global ethical standards.”
Michael Clarck
Key Elements of a COP Report
Measurement of Outcomes: Assessment of results achieved, including both successes and areas needing improvement.
Executive Statement: A statement from the CEO or top management reaffirming the company’s commitment to the UN Global Compact principles.
Description of Actions: Practical actions undertaken by the company to implement the principles.
Case Study: Novo Nordisk’s COP Report
Novo Nordisk, a leading healthcare company based in Denmark, operates in over 80 countries and markets its products in 170 countries. The company’s mission is to improve the lives of people with diabetes, endocrine disorders, obesity, and other chronic conditions. In 2015, Novo Nordisk produced its COP report to support the UN’s 2030 agenda for sustainable development.
Executive Statement
Novo Nordisk’s CEO provided a statement of continuous support for the UN Global Compact, emphasizing the company’s commitment to sustainable development and corporate responsibility.
Description of Actions
Novo Nordisk’s report highlighted several initiatives:
- Human Rights: Efforts to ensure fair labor practices and promote equality.
- Environment: Measures to reduce environmental impact, such as energy-efficient processes and waste management.
- Anti-Corruption: Policies to prevent corruption and promote ethical business practices.
Measurement of Outcomes
The report included an analysis of achieved results, demonstrating the impact of their actions. However, there were areas identified for improvement:
Comparison with Previous Years: There was no comparison of progress with previous years using relevant metrics.
Supply Chain Management: The report lacked detailed information on how Novo Nordisk controls its supply chain to support the implementation of Global Compact principles.
Social Investment and Philanthropy: More information on the company’s social investment and philanthropy activities was needed.
Management Systems: The report did not provide enough details about the company’s processes and management systems that help in implementing the Global Compact principles.
Improving Your COP Report
Based on the analysis of Novo Nordisk’s COP report, here are some recommendations for improving your own COP report:
1. Detailed Supply Chain Management
Include comprehensive information about how your company manages its supply chain to ensure adherence to the Global Compact principles. Highlight any audits, assessments, or partnerships with suppliers that support ethical and sustainable practices.
2. Social Investment and Philanthropy
Detail your company’s social investment and philanthropy activities. Showcase initiatives that contribute to community development, education, health, and welfare.
3. Management Systems
Provide insights into your management systems and processes that support the implementation of the Global Compact principles. Explain how these systems ensure continuous improvement and compliance.
4. Policy and Strategy Documents
Include relevant policy and strategy documents that align with the Global Compact principles. These documents provide transparency and demonstrate your company’s commitment to systematic progress.
5. Comparative Analysis
Use indicators of progress or benchmarking to present a specific and balanced view of your company’s progress. Compare current results with previous years to show trends and improvements.
Conclusion
A well-crafted COP report not only enhances your company’s credibility but also provides valuable information to stakeholders and supports continuous improvement. By addressing the areas identified in Novo Nordisk’s report and following the recommendations provided, your company can create a comprehensive and impactful COP report that aligns with the UN Global Compact principles.
References
1. A Resource Guide to Corporate Human Rights Reporting. 2020. Retrieved from UN Global Compact.
2. Hamid U, Johner O, Rasche A, Kell G. The United Nations Global Compact communication on progress policy: Origins, trends and challenges. The United Nations global compact: Achievements, trends and challenges. 2010.
3. Compact UG. Communication on Progress 2017.
4. Novo Nordisk. UN Global Compact 2015. Retrieved from Novonordisk.com.
