LBG & Other Indices

Dow Jones Sustainability Index (DJSI)

DJSI was launched in 1999 as the first global sustainability benchmark. The DJSI family is managed by RobecoSAM Indices and S&P Dow Jones Indices. The indices track the stock performance of the world's leading companies in terms of economic, environmental and social criteria. The indices serve as benchmarks for investors who integrate sustainability considerations into their portfolios, and provide an effective engagement platform for companies who want to adopt sustainable best practices. The 'community and philanthropy' section of the DJSI questionnaire is based on the LBG framework - following collaboration between LBG and RobeccoSam. This means that companies using the LBG framework can easily transfer the data captured in to their DJSI submission, making the return process much simpler.

Global Reporting Initiative (GRI)

The GRI promotes economic, environmental and social sustainability. It provides companies and organizations with a comprehensive sustainability reporting framework that is widely used around the world. The framework enables organizations to measure and report their economic, environmental, social and governance performance - the four key areas of sustainability. Data compiled according to the LBG framework feeds in to the key aspects of the economic dimension of GRI most notably for indicators EC1, 7 and 8. Companies using the LBG framework are therefore more easily able to fulfil the GRI criteria when it comes to reporting their community activity as they are able to communicate clear and robust measurement categories.

BITC's Corporate Responsibility (CR) Index

Developed in consultation with business leaders in the UK, the first CR Index survey was launched in 2002. In addition to being a public exercise in transparency the Index was created as a robust self-assessment tool to help companies systematically measure, manage and integrate responsible business practice. The CR Index assesses companies in the following areas: Corporate Strategy, Integration, Management and Performance and Impact all focussing on the issues of material concern to the company and how they address them. Companies are ranked in the index based on this assessment. Within the assessment of Management Areas, the Index looks at activity in the community. It is here that the LBG framework is integrated in to the assessment. Companies that use the LBG framework to measure and manage their CCI programme are able to incorporate this in to their submission, enabling a much easier process of reporting on their community activity.

Social Return On Investment (SROI)

SROI is a framework based on social generally accepted accounting principles (SGAAP) that can be used to help manage and understand the social, economic and environmental outcomes created by an activity or organisation. The SROI network is an international social enterprise owned by its members that seeks to change the way that society accounts for value. The SROI framework was devised by the network to help organisations understand, manage and communicate the social value that their work creates in a clear and consistent way with customers, beneficiaries and funders. The SROI framework is used by some LBG members as an extension of the work they already do on measuring impact. Many of its principles chime with LBG but it's assessment extends beyond LBG by estimating the financial value of the impacts generated by an activity and then calculating a ratio of input to return.

Millennium Development Goals (MDGs)

MDGs, are a set of eight international development goals which were officially established following the Millennium Summit of the UN in 2000, following the adoption of the United Nations Millennium Declaration. All 189 UN member states and at least 23 international organisations have agreed to achieve 8 goals by 2015. The goals are: 1) Eradicating extreme poverty and hunger. 2) Achieving universal primary education. 3) Promoting gender equality and empowering women. 4) Reducing child mortality rates. 5) Improving maternal health. 6) Combating HIV/AIDS, malaria, and other diseases. 7) Ensuring environmental sustainability. 8) Developing a global partnership for development. Some LBG members use the MDGs as an external validation of some of the aims of their programmes, therefore enabling them to be more specific about their impact. For example, a programme might aim to address gender equality and might use the 3rd MDG as an external marker against which to assess impact through their community investment programmes, so can inform LBG member's evaluation processes.

Investing in Shared Value

LBG Australia & New Zealand has forged an alliance with the Shared Value Project aimed at improving awareness of shared value as a practice and support in finding and executing pilot projects. As the understanding and creation of shared value projects evolves, LBG Australia & New Zealand is continuing to work to develop a framework and approach to measure and assess investments in shared value by companies.