Differentiation Programme

The Global Compact Differentiation Programme categorizes business participants based on their level of disclosure on progress made in integrating the Global Compact principles and contributing to broader UN goals. 

The Programme provides companies at all stages of sustainability performance and disclosure with the opportunity to begin and pursue a process of continuous improvement. It also aims to facilitate a more thorough assessment of sustainability performance and disclosure by stakeholders, while recognizing each company's unique operational context such as size, industry and geography. The Differentiation Programme reinforces the Global Compact's objective of changing business practices through transparency, dialogue and stakeholder vetting. The Global Compact will not itself assess the performance of companies. Instead, the goal is to develop a public platform that enables stakeholders to make more informed choices as investors, employees and/or consumers, ultimately ensuring that companies live up to their commitment to the Global Compact. 

As part of the Programme, the Global Compact Office will work with its non-business participants and other stakeholders to engage with companies and create a meaningful vetting process of the accuracy of their disclosure and performance.
 
 
diff programme

GC Levels
Starting on 25 February, 2011, all business participants that have submitted a Communication on Progress (COP) will be classified in one of two categories, based on a self-assessment of the COP's content:

The GC Active level is for business participants that address all Global Compact issue areas and communicate directly with stakeholders. At this level, the goal of the programme is to encourage  comprehensive implementation of the principles and the adoption of accepted standards of disclosure and transparency, such as those of the Global Reporting Initiative. See the basic format.

The GC Advanced level is for companies that strive to be top performers and declare that they have adopted and report on a range of best practices in sustainability governance and management, based on the Blueprint for Corporate Sustainability Leadership and the UN Global Compact Management Model.

Read the new COP Policy and the 24 Advanced Criteria.

Note: Companies whose COPs do not meet the minimum COP requirements will be given a one-time, 12-month "Learner" grace period from the date of submission of their COP to submit a new COP that meets all minimum requirements. The Global Compact Office will provide active support and assistance through the Learner Platform.

Two Dimensions
Differentiation levels are applied annually based on the most recent COP submitted and on the degree to which this COP demonstrates progress along two critical dimensions:

Global Compact implementation. Companies are expected to make continuous progress in their implementation of all Global Compact principles, and, ultimately, to achieve best practices described in the Blueprint for Corporate Sustainability Leadership.

Transparency and disclosure. Companies are expected to communicate directly with their stakeholders and to be transparent about the policies and processes they have put in place to manage sustainability risk and opportunities. Companies are also expected to progress towards the use of standard reporting guidelines (e.g. the Global Reporting Initiative reporting framework), verification, and, ultimately, towards integrated financial and sustainability reporting.

Building on the Global Compact / GRI Collaboration

In an effort to demonstrate the synergies between the Global Compact and the Global Reporting Initiative (GRI), the two initiatives are working together to imbed the GRI Sustainability Reporting Guidelines ("GRI Guidelines") at both levels of the differentiation programme.
At the GC Active Level, the Global Compact recommends the use of the GRI Guidelines to help participants communicate their progress directly to stakeholders.
At the GC Advanced level, the Global Compact and GRI are currently exploring synergies between the differentiation programme and the GRI Application Level system, to maximize the complementarities of both initiatives.

Objectives of the Programme
Through specific activities at both levels, the Differentiation Programme aims to achieve the following goals:

  • Drive continuous improvement at all levels of sustainability performance and disclosure.
  • Create a learning platform by promoting best practices relevant for every level while showcasing companies' achievement.
  • Provide relevant tools and resources for business participants at every level of performance.
  • Give business participants recognition for progress made in context of their size, region and industry sector.
  • Provide stakeholders with a platform to independently assess companies' progress and enable a robust stakeholder vetting process

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