GRI 202: Market Presence 2016
EFFECTIVE DATE: 1 JULY 2018
Introduction
GRI 202: Market Presence 2016 contains disclosures for organizations to report information about their market presence-related impacts and how they manage these impacts.
The Standard is structured as follows
- Section 1 contains a requirement, which provides information about how the organization manages its market presence-related impacts.
- Section 2 contains two disclosures, which provide information about the organization’s market presence-related impacts.
- The Glossary contains defined terms with a specific meaning when used in the GRI Standards. The terms are underlined in the text of the GRI Standards and linked to the definitions.
- The Bibliography lists authoritative intergovernmental instruments used in developing this Standard.
The rest of the Introduction section provides a background on the topic, an overview of the system of GRI Standards and further information on using this Standard.
Background on the topic
This Standard addresses the topic of an organization’s market presence, covering its contribution to economic development in the local areas or communities where it operates. For example, this can include the organization’s approaches to remuneration or local hiring.
1. Topic management disclosures
An organization reporting in accordance with the GRI Standards is required to report how it manages each of its material topics.
An organization that has determined market presence to be a material topic is required to report how it manages the topic using Disclosure 3-3 in GRI 3: Material Topics 2021 (see clause 1.1 in this section).
This section is therefore designed to supplement – and not replace – Disclosure 3-3 in GRI 3.
REQUIREMENTS
- 1.1 The reporting organization shall report how it manages market presence using Disclosure 3-3 in GRI 3: Material Topics 2021.
2. Topic disclosures
Disclosure 202-1 Ratios of standard entry level wage by gender compared to local minimum wage
REQUIREMENTS
The reporting organization shall report the following information:
- a. When a significant proportion of employees are compensated based on wages subject to minimum wage rules, report the relevant ratio of the entry level wage by gender at significant locations of operation to the minimum wage.
- b. When a significant proportion of other workers (excluding employees) performing the organization’s activities are compensated based on wages subject to minimum wage rules, describe the actions taken to determine whether these workers are paid above the minimum wage.
- c. Whether a local minimum wage is absent or variable at significant locations of operation, by gender. In circumstances in which different minimums can be used as a reference, report which minimum wage is being used.
- d. The definition used for ‘significant locations of operation’.
RECOMMENDATIONS
- 2.1 When compiling the information specified in Disclosure 202-1-b, the reporting organization should:
- 2.1.1 use the data from Disclosure 2-8 in GRI 2: General Disclosures 2021 to identify the total number of workers who are not employees and whose work is controlled by the organization;
- 2.1.2 if applicable, convert the entry level wage to the same units used in the minimum wage (e.g., hourly or monthly basis);
- 2.1.3 when a significant proportion of other workers (excluding employees) performing the organization’s activities are compensated based on wages subject to minimum wage rules, report the relevant ratio of the entry level wage by gender at significant locations of operation to the minimum wage.
GUIDANCE
Background
This disclosure applies to those organizations in which a substantial portion of their employees, and workers (excluding employees) performing the organization’s activities, are compensated in a manner or scale that is closely linked to laws or regulations on minimum wage.
Providing wages above the minimum wage can help contribute to the economic well-being of workers performing the organization’s activities. The impacts of wage levels are immediate, and they directly affect individuals, organizations, countries and economies. The distribution of wages is crucial for eliminating inequalities, such as wage gap differences between women and men, or nationals and migrants.
Also, entry level wages paid compared to local minimum wages show the competitiveness of an organization’s wages and provide information relevant for assessing the effect of wages on the local labor market. Comparing this information by gender can also be a measure of an organization’s approach to equal opportunity in the workplace.
Disclosure 202-2 Proportion of senior management hired from the local community
REQUIREMENTS
The reporting organization shall report the following information:
- a. Percentage of senior management at significant locations of operation that are hired from the local community.
- b. The definition used for ‘senior management’.
- c. The organization’s geographical definition of ‘local’.
- d. The definition used for ‘significant locations of operation’.
Compilation requirements
- 2.2 When compiling the information specified in Disclosure 202-2, the reporting organization shall calculate this percentage using data on full-time employees.
GUIDANCE
Senior management hired from the local community includes those individuals either born or who have the legal right to reside indefinitely (such as naturalized citizens or permanent visa holders) in the same geographic market as the operation. The geographical definition of ‘local’ can include the community surrounding operations, a region within a country, or a country.
Background
Including members from the local community in an organization’s senior management demonstrates the organization’s positive market presence. Including local community members in the management team can enhance human capital. It can also increase the economic benefit to the local community, and improve an organization’s ability to understand local needs.
Bibliography
This section lists authoritative intergovernmental instruments used in developing this Standard.
Authoritative instruments:
- United Nations (UN) Convention, ‘Convention on the Elimination of all Forms of Discrimination against Women (CEDAW)’, 1979.