The International Finance Corporation (IFC), the Global Reporting Initiative (GRI) and Central European University (CEU) conducted the workshop Demonstrating Leadership through Sustainability Reporting at the CEU campus in Budapest on 10-12 November 2001. Seven companies from Central and Eastern Europe (CEE), representatives of the IFC, GRI, CSR Network, West European companies recognized as global leaders in sustainability reporting, as well as by CEU faculty and staff attended the Workshop (see Attachment 2).

Scope and Objectives
œSustainability reporting” means systematic analysis and disclosure of economic, social and environmental aspects of a corporationÃs activity. The GRI Sustainability Reporting Guidelines are the outcome of a major international multi-stakeholder effort involving businesses and their associations, international agencies such as UNEP, NGOs, and other parties. The Guidelines have been used by major companies throughout the world, but their application in CEE remains limited.

The objectives of the workshop were:

• Raising awareness about and strengthening capacity for corporate sustainability reporting in CEE
• Exploring the regional specifics of sustainability reporting and the feasibility of application of the GRI Sustainability Reporting Guidelines in CEE
• Creating a network of corporations and institutions in CEE concerned with environmental and sustainability reporting
• Initiating production of pilot sustainability reports conforming to the GRI Guidelines in selected CEE companies with the assistance provided by CEU, GRI and the CSR Network.

Agenda
The workshop agenda (see Annex 1) included presentations by IFC, GRI, CEU, participating CEE companies and key speakers from West European companies. These were followed by interactive discussions of the regional relevance of emerging approaches to corporate sustainability reporting; potential œroadmaps” to producing sustainability reports; social, economic and environmental indicators to be included in sustainability reports; and other relevant issues.

On Day 1, the IFC introduced the objectives and the proposed agenda of the workshop. This was followed by brief introductions of the participating companies. Subsequently the IFC presented its rationale for and perspective on corporate social responsibility and accountability and outlined the role of sustainability reporting in this context. The GRI clarified the need for a global standard in sustainability reporting and introduced its œSustainability Reporting Guidelines”. CEU presented emerging pressures and opportunities for and challenges of introducing sustainability reporting in transition countries of Eastern Europe. In conclusion of this discussion facilitated by the IFC, the business representatives discussed the specific benefits of and the barriers for sustainability reporting in their companies.

On Day 2, representatives of Novo Nordisk (Denmark), Henkel (Germany) and the Co-operative Bank (the UK) shared their direct experience of sustainability reporting. The discussion was structured around the practical issues involved in developing sustainability reports. With the support of their advisors from the IFC, GRI, CEU, the CSR Network and Western European companies, each participating company presented its tentative œfive year strategy” and œone year plan” for producing a sustainability or environmental report.

On Day 3, the presentations of Budapest Power Ltd. (Hungary), the winner of the first Central European Environmental Reporting Award (2001) and Henkel (Germany) focused on selecting the best indicators for environmental and sustainability reports. During the concluding discussion, participating companies and workshop organisers shared ideas and expectations regarding further steps in promoting environmental and sustainability reporting and agreed on a set of conclusions and recommendations as detailed in the next section.

Conclusions and recommendations
1. The workshop participants saw significant benefits in producing corporate environmental and sustainability reports. These include enhanced opportunities to monitor and improve performance, early warning of potential problems, better internal communications, and conformity to international standards and expectations.
2. At the same time, the participating companies were concerned about barriers to establishing effective reporting systems such as difficulties in building trust and engaging local communities and other stakeholders, the issues related to commercial confidentiality of certain information, and the need to change the existing corporate cultures.
3. Reflecting their commitment to environmental and sustainability reporting and recognising challenges that need to be overcome, the participants agreed to elaborate long-term plans for developing their reporting systems and work in accordance with these plans as outlined in the attached scheme (Attachment 1). In particular the participants agreed to:

3.1. advocate the support for environmental and sustainability reporting from the top management of their companies;
3.2. elaborate, by January 2002, Implementation Action Plans for producing the first generation environmental reports in accordance with the GRI Guidelines;
3.3. prepare concept papers for environmental reports by March 2002;
3.4. engage in necessary consultations and data collection so that the information for the reports could be assembled by and be reflected upon during the Progress Review meeting in June 2002;
3.5. produce draft internal environmental reports conforming to the GRI Guidelines by September 2002;
3.6. work towards the publication of the draft reports by the end of 2002; 
3.7. continue working towards more comprehensive reporting systems beyond that date with the goal to eventually produce sustainability reports.

4.1. A networking facility including a shared Web space provided by CEU to enable the participants to stay in contact with each other and to share experience in environmental and sustainability reporting.
4.2. Information, training and specific advice on reporting provided by CEU and the GRI.
4.3. Report verification and related services provided by the CSR Network.
4.4. Organisation of the Progress Review workshop in June 2002, possibly at the CEU site in Budapest.