GRI 405: Diversity and Equal Opportunity 2016
EFFECTIVE DATE: 1 JULY 2018
Introduction
GRI 405: Diversity and Equal Opportunity 2016 contains disclosures for organizations to report information about their impacts related to diversity and equal opportunity at work, 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 impacts related to diversity and equal opportunity at work.
- Section 2 contains two disclosures, which provide information about the organization’s impacts related to diversity and equal opportunity at work.
- 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.
Background on the topic
This Standard addresses the topic of an organization’s approach to diversity and equal opportunity at work.
When an organization actively promotes diversity and equality at work, it can generate significant benefits for both the organization and workers. For example, the organization can gain access to a larger and more diverse set of potential workers. These benefits also flow through to society in general, as greater equality promotes social stability and supports further economic development.
These concepts are covered in key instruments of the International Labour Organization, the Organisation for Economic Co-operation and Development, and the United Nations: see the Bibliography.
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 diversity and equal opportunity 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 diversity and equal opportunity using Disclosure 3-3 in GRI 3: Material Topics 2021.
Guidance
The reporting organization can also describe the legal and socioeconomic environment that provides opportunities for, and barriers to, gender equity.
This can include the share of female workers performing the organization’s activities, their equal remuneration, and their participation at the highest governance level.
2. Topic disclosures
Disclosure 405-1 Diversity of governance bodies and employees
REQUIREMENTS
The reporting organization shall report the following information:
- a. Percentage of individuals within the organization’s governance bodies in each of the following diversity categories:
- i. Gender;
- ii. Age group: under 30 years old, 30-50 years old, over 50 years old;
- iii. Other indicators of diversity where relevant (such as minority or vulnerable groups).
- b. Percentage of employees per employee category in each of the following diversity categories:
- i. Gender;
- ii. Age group: under 30 years old, 30-50 years old, over 50 years old;
- iii. Other indicators of diversity where relevant (such as minority or vulnerable groups).
RECOMMENDATIONS
- 2.1 When compiling the information specified in Disclosure 405-1, the reporting organization should use data from Disclosure 2-7 in GRI 2: General Disclosures 2021 to identify the total number of employees.
GUIDANCE
Guidance for Disclosure 405-1
Examples of governance bodies that exist within an organization can be the board of directors,
management committee, or a similar body for a non-corporate organization.
An organization can identify any other indicators of diversity used in its own monitoring and recording that are relevant for reporting.
Background
This disclosure provides a quantitative measure of diversity within an organization and can be used in conjunction with sectoral or regional benchmarks. Comparisons between broad employee diversity and management team diversity offer information on equal opportunity. Information reported in this disclosure also helps in assessing which issues can be of particular relevance to certain segments of the governance bodies or employees.
Disclosure 405-2 Ratio of basic salary and remuneration of women to men
REQUIREMENTS
The reporting organization shall report the following information:
- a. Ratio of the basic salary and remuneration of women to men for each employee category, by significant locations of operation.
- b. The definition used for ‘significant locations of operation’.
RECOMMENDATIONS
- 2.2 When compiling the information specified in Disclosure 405-2, the reporting organization should base remuneration on the average pay of each gender grouping within each employee category.
GUIDANCE
Guidance for Disclosure 405-2
The reporting organization can draw from the information used for Disclosure 405-1 to identify
the total number of employees in each employee category by gender.
Background
An organization can take an active role in reviewing its operations and decisions, in order to promote diversity, eliminate gender bias, and support equal opportunity. These principles apply equally to recruitment, opportunities for advancement, and remuneration policies. Equality of remuneration is also an important factor in retaining qualified employees.
Bibliography
This section lists authoritative intergovernmental instruments used in developing this Standard.
- International Labour Organization (ILO) Convention 100, ‘Equal Remuneration Convention’, 1951.
- International Labour Organization (ILO) Convention 111, ‘Discrimination (Employment and Occupation) Convention’, 1958.
- International Labour Organization (ILO), ‘Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy’, 2006.
- Organisation for Economic Co-operation and Development (OECD), OECD Guidelines for Multinational Enterprises, 2011.
- United Nations (UN) Convention, ‘Convention on the Elimination of all Forms of Discrimination against Women (CEDAW)’, 1979.
- United Nations (UN) Convention, ‘International Convention on the Elimination of All Forms of Racial Discrimination’, 1965.
- United Nations (UN) Declaration, ‘Declaration on the Elimination of All Forms of Intolerance and of Discrimination based on Religion and Belief’, 1981.
- United Nations (UN) Declaration, ‘Declaration on the Elimination of All Forms of Racial Discrimination’, 1963.
- United Nations (UN) Declaration, ‘Declaration on the Rights of Persons Belonging to National or Ethnic, Religious and Linguistic Minorities’, 1992.
- United Nations Educational, Scientific and Cultural Organization (UNESCO) Declaration, ‘Declaration on Race and Racial Prejudice’, 1978.
- United Nations Entity for Gender Equality and the Empowerment of Women (UN Women) and United Nations Global Compact, ‘Women’s Empowerment Principles’, 2011.
- United Nations (UN) Fourth World Conference on Women, ‘Beijing Declaration and Platform for Action’, 1995.