This metric is based on the Global Reporting Initiative (GRI) G4 Guidelines. It covers one of the reporting requirements of Indicator G4-EN29 – ‘Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations’.
This Indicator is broader than depicted within the metric description. It also asks for G4-EN29-a – ‘Total monetary value of significant fines, cases brought through dispute resolution mechanisms’ - and G4-EN29-b - ‘Where organizations have not identified any non-compliance with laws or regulations, a brief statement of this fact is sufficient’.
The level of non-compliance within the organization helps indicate the ability of management to ensure that operations conform to certain performance parameters. From an economic perspective, ensuring compliance helps to reduce financial risks that occur either directly or indirectly. In some circumstances, non-compliance can lead to clean-up obligations or other costly environmental liabilities. The strength of the organization’s compliance record can also affect its ability to expand operations or gain permits.
This metric is looking for the number of non-monetary sanctions for non-compliance with environmental laws the company has received:
For WikiRate researchers:
Companies who align reports to GRI’s Sustainability Reporting Standards often include a GRI Content Index or Annex where GRI disclosures, with GRI codes, are listed.
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Use G4 codes, G3 codes or keywords to quickly find values, keeping in mind that some companies report on the metric using different terms, e.g. G4-EN29 or EN29, non-compliance or non-monetary sanctions
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Global Reporting Initiative compliance guidance for companies:
To calculate the total number of non-monetary sanctions - G4-EN29-a:
Identify administrative or judicial sanctions for failure to comply with environmental laws and regulations, including, as a minimum:
International declarations, conventions, and treaties, as well as national, sub-national, regional, and local regulations. Include non-compliances related to spills
Voluntary environmental agreements with regulating authorities that are considered binding and developed as a substitute for implementing new regulations. In certain jurisdictions, such agreements are referred to as ‘covenants’
Cases brought against the organization through the use of international dispute mechanisms or national dispute mechanisms supervised by government authorities
Calculate the total number of non-monetary sanctions
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