UN Global Compact
Definition
The United Nations Global Compact is the world's largest corporate sustainability initiative, calling on companies to align their strategies and operations with ten universal principles on human rights, labour, environment, and anti-corruption. Participating companies commit to annual reporting on their progress (Communication on Progress). The initiative connects business with UN agencies, civil society, and governments.
Why It Matters
Participation in the UN Global Compact signals a baseline commitment to responsible business practices and is recognised across ESG rating methodologies. It provides a framework for companies to contribute to the SDGs through their core business activities.
Related Terms
SDGs (Sustainable Development Goals)
The Sustainable Development Goals are 17 interconnected global goals adopted by all UN Member States in 2015 as a shared blueprint for peace and prosperity for people and the planet by 2030. They address challenges including poverty, inequality, climate change, environmental degradation, and injustice. Organisations increasingly map their ESG strategies and impacts to specific SDGs.
Human Rights Due Diligence
Human rights due diligence (HRDD) is a process by which organisations identify, prevent, mitigate, and account for how they address their adverse human rights impacts. It involves assessing actual and potential human rights risks across operations and supply chains, taking appropriate action, and tracking effectiveness. The concept is rooted in the UN Guiding Principles on Business and Human Rights.
Anti-Corruption
Anti-corruption refers to the policies, procedures, and practices designed to prevent, detect, and address bribery, fraud, and other corrupt activities within an organisation and its business relationships. It encompasses compliance with laws like the UK Bribery Act and US Foreign Corrupt Practices Act, as well as ethical culture and whistleblower protection. Robust anti-corruption programmes are a core governance expectation.
GRI (Global Reporting Initiative)
The Global Reporting Initiative (GRI) is an independent international organisation that provides the world's most widely used standards for sustainability reporting. GRI Standards help organisations report on their economic, environmental, and social impacts in a structured, comparable way. The framework emphasises stakeholder inclusiveness and materiality.