The Global Compact is an international initiative proposed by the United Nations (UN), whereby companies, labour groups, non-governmental organisations and other agencies worldwide voluntary pledge to align their operations and strategies with 10 universally accepted principles in the areas of human rights, labour, environment and anti-corruption.
The Global Compact also works towards creating an international network whereby companies can collaborate and work with other social agents, promoting a climate of dialogue and cooperation in order to carry out voluntary corporate social responsibility initiatives.
The Global Compact was first announced by the then Secretary-General of the United Nations, Koffi Annan, in an address to the World Economic Forum at Davos in 1999 and was officially launched at UN Headquarters in New York in July 2000. By 2010, over 6,000 companies from 130 different countries had joined the Global Compact. The majority of the industrial and services sectors are represented, with members from both the Northern and Southern Hemispheres.
The 10 Principles are:
Human Rights:
1. Businesses should support and respect the protection of internationally proclaimed human rights; and
2. make sure that they are not complicit in human rights abuses.
Labour:
3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
4. the elimination of all forms of forced or compulsory labour;
5. the effective abolition of child labour;
6. eliminate discrimination in respect of employment and occupation.
Environment:
7. To support a precautionary approach to environmental challenges
8. undertake initiatives to promote greater environmental responsibility; and
9. encourage the development and diffusion of environmentally friendly technologies.
Anti-corruption:
10. Businesses should work against corruption in all its forms, including extortion and bribery.
Endesa was one of the first Spanish companies to join the Global Compact, becoming a member on 7 March 2002. Since then, the company has played a dynamic role in supporting, promoting and disseminating the principles of the Global Compact, integrating them throughout its internal management, reporting regularly on the progress made and fostering the dissemination of its principles among the general public.
Endesa has incorporated these principles into its Mission, Vision and Values, in its corporate integrity standards and commitments to sustainable development. The company’s senior management revises its commitment to this initiative annually.
From an operating standpoint, Endesa has extended its commitment to the principles to all its subsidiaries and holdings in both Europe and Latin America. Senior management at all Endesa companies assess their commitments and report on the progress made annually.
Endesa considers that active participation in the Global Compact means playing a key role in the institutions related to it. It is therefore a founding member of the Spanish Global Compact Network and has held the post of Vice Chairman of this organisation since 2006. It is also a member of the executive bodies of the local Global Compact networks in all the countries where it operates. Reinforcing this position, Endesa is a founding member of the Global Compact's Regional Centre for Latin America and the Caribbean, which was created on 29 October 2009.
The main benefits of this initiative are:
- It is a highly valuable tool with which to integrate sustainability in all of the company’s management areas and strategy, reinforcing Endesa’s commitment to the principles of sustainability and its global leadership in this field.
- It promotes dialogue with stakeholders via different platforms.
- It enables Endesa to share experiences with other companies that are committed to sustainability within the framework of the United Nations, thereby learning from other companies’ experiences and unlocking the value of its best practices.
- It helps to be viewed positively by stakeholders, responsible investment funds and sustainability rating agencies.
The Group has introduced an internal monitoring and follow-up mechanism to ensure compliance with the principles at all Endesa companies, irrespective of the country where they operate.
There are three phases to the process:
Phase I: Analysis and diagnosis:
- Country risk analysis.
- Analysis of international benchmark standards.
- Self-diagnosis of degree of compliance.
Phase II: Initiatives and planning:
- Initiatives proposal.
- Integration of initiatives into planning.
- Standardisation.
Phase III: Validation:
- Internal progress and compliance audits.
This process has led to a series of proposals which substantially improve our ability to fully comply with the 10 Principles. To date, 284 initiatives have been proposed, in some cases reducing the weakness detected to 80%.
Link to the “Global Compact Assurance Process”
Key initiatives
Endesa has implemented the following initiatives within the framework of the Global Compact:
Publication of the "Guide for the Development and Implementation of the Global Compact Principles in Endesa and its subsidiaries".
- Notifying suppliers and contractors about its commitment via its Supplier Rating System and adapting to the regulation governing the acquisition of products and the commissioning of work and services by the Company.
- Participation in local forums in Spain and Latin America where knowledge on best practices are shared.
- Participation in COP (Communication on Progress) workshops.
- Collaboration in workshops such as “Integrating Women into the Workforce”.
- Participation in UN Global Compact Leaders Summits in 2007 and 2010.
- Adhesion to Global Compact initiatives:
- Participation in studies and publications:
Communication on Progress
When joining the Global Compact, companies make a commitment to issue an annual Communication on Progress (COP) report detailing the implementation of the 10 principles of the UN Global Compact. The aim is to increase the credibility of the initiative through transparency.
Click here for Endesa’s COPs from 2005:
For more information "Endesa’s COPs"