Purpose & Stakeholder Governance Documentation & Evidence

PSG1.1 The company establishes a public purpose to make a meaningful positive impact.

• Public Purpose Statement on the company webpage. Supporting statement if the purpose statement does not detail business relevance and integration.

PSG2.1 The company has a mechanism to consider or involve its stakeholders and represent their interests in decision-making.

• Public Purpose Statement on the company webpage. Supporting statement if the purpose statement does not detail business relevance and integration.

• Records of stakeholder engagement mechanisms, such as meeting minutes, survey results, or a charter for a multi-stakeholder task force or advisory board.

• Records demonstrating that all specified stakeholders (workers, suppliers, customers, investors, community, environment) are represented with engagement mechanisms.

PSG2.2 The company has a stakeholder governance policy.

• A Stakeholder Governance Policy document that includes descriptions of the governance model, stakeholder identification criteria, how interests are considered, how value is delivered, and engagement mechanisms.

• Records demonstrating that all specified stakeholders are represented with direct or indirect engagement mechanisms.

• Meeting minutes or a formal letter from the highest governing body approving the policy.

•  Internal communications (e.g., email announcement, intranet post) and a link to where the policy is accessible to workers.

PSG2.3 The company conducts regular materiality assessment to assess and identify material topics.

• Materiality assessment report or documentation of the process that shows engagement with all specified stakeholders.

• The materiality assessment document itself, showing that it covers human rights and environmental issues and uses a double or impact materiality approach.

• The materiality assessment document that explains how thresholds were set and how impacts were assessed based on severity and likelihood.

• Date-stamped materiality assessment report from within the last 36 months, and records of an interim review with stakeholders.

• Meeting minutes or reports presented to the highest governing body showing their oversight of the materiality assessment process and review of results.

• A link to the annual impact report or company webpage where the materiality matrix, methodology, and summary of stakeholder engagement are publicly available.

PSG2.4 The company identifies material topics not addressed in the B Lab Standard, sets targets, and reports progress annually.

• The materiality assessment report or a separate document listing material topics not covered by the B Lab Standards.

• A document (e.g., strategy plan, report) that lists at least one target for each identified material topic. 

• A document or public webpage showing targets that are SMART, integrated into the company strategy, and approved by the highest governing body.

• A document outlining who is responsible for achieving each target (e.g., job titles, department names).

• Annual reports or a dedicated section on the company website showing public disclosure of progress against targets.

• Documentation of achieved targets and a new, corresponding target that has been set.

PSG2.5 The company considers its stakeholders when making decisions about dividends and stock buybacks.

• Meeting minutes from the highest governing body regarding dividend and stock buyback decisions, showing how stakeholder interests were considered.

• Analysis or reports that identify the impacts of dividend and stock buyback decisions on the listed stakeholders (a-f).

• Public reports, such as an annual report, showing how fund allocation between shareholders and social/environmental reinvestments is balanced.

PSG3.1 The company has a publicly accessible grievance procedure allowing stakeholders to safely raise grievances and seek resolutions.

• A link to the grievance form on the company's webpage, or a document detailing the alternative grievance mechanism (e.g., email address, hotline, open-door policy).

• The grievance procedure document that clearly explains grounds for acceptance, process steps, deadlines, and how resolutions are facilitated.

• The grievance procedure document that details processes and controls to protect stakeholders from retaliation.

• Communication reports or records with updates to the complainant about each step of the resolution process and its outcome.

PSG3.2 The company tracks grievances and assigns accountability for resolving them.  

• A system for tracking and monitoring grievances (e.g., a spreadsheet or software output) and annual summaries detailing the status and nature of grievances.

• An organizational chart or job description identifying the employee responsible for managing grievances.

• Records of resolved and closed grievances, or if none have been filed, the grievance procedure document itself as proof that the mechanism is in place.

PSG3.3 The company has a publicly accessible grievance procedure allowing stakeholders to safely raise grievances and seek resolutions.

• A link to the company's webpage showing the grievance procedure published in relevant languages.

• The grievance procedure document explaining grounds for acceptance, process steps, and resolution facilitation.

• The grievance procedure document that outlines processes to protect stakeholders from retaliation.

• Communication reports with updates to the complainant.

• Records of communications (e.g., emails, letters) sent to main stakeholders about the grievance procedures.

• The grievance procedure document or a separate policy that explains how conflicts of interest are avoided in the decision-making process.

PSG3.4 The company tracks grievances, assigns accountability for resolving them and reports internally to the highest governing body and publicly to stakeholders.

• An annual internal report on grievances that includes details on cases, an evaluation of effectiveness, identified trends and hotspots, and recommendations for improvement.

• Meeting minutes or a report presented to the highest governing body, showing the manager's presentation of the annual summary report on grievances.

• Records of resolved grievances or documentation of the implemented grievance mechanism if no grievances were filed.

• A public report (e.g., in an annual report or on the website) that includes all data points from the UNGP Effectiveness Criteria (number of grievances, rejections, outcomes, etc.).

PSG4.1 The company has principles for responsible marketing and public relations practices.

• A documented set of principles for responsible marketing and public relations. This could be an internal policy or a section of a code of conduct. The document should explicitly state that claims must be precise, verifiable, substantiated by data, truthful, transparent, and that the company follows ethical guidelines for sensitive channels.

• Evidence of communication and accessibility of the marketing principles to all workers. This could be a screenshot of the policy on the company's internal intranet, a record of a mandatory training session, or an email to all employees outlining the principles and where to find the full policy.

PSG4.2 The company has a responsible marketing and public relations policy overseen by the executive team or highest governing body.

• A formal, documented "Responsible Marketing and Public Relations Policy" that is approved by the executive team or highest governing body. The policy should define its scope, state that it applies to all audiences, and outline clear requirements for anyone involved in marketing and public relations activities. Evidence of approval could be meeting minutes or a signed policy document.

• The company's responsible marketing and public relations policy document. The auditor will review this document to ensure it includes all the specified criteria for social and environmental claims, such as being precise, verifiable, proportional, truthful, transparent, and using understandable language.

• An organizational chart, job description, or an internal document (e.g., a RACI matrix) that clearly assigns accountability for ensuring compliance with the responsible marketing policy to a specific individual or role within the executive team or highest governing body.

• Records of the process used to communicate the responsible marketing policy to workers. This could include a slide deck from an onboarding session, a link to the policy in an internal newsletter, or a record of a compliance check where employees confirm they have read and understood the policy.

PSG5.1 The highest governing body monitors the company's purpose, social and environmental impact, and stakeholder considerations.

• Board of Directors or highest governing body meeting minutes from within the last 12 months. The minutes should include a specific agenda item and discussion regarding the company's progress on its public purpose, social and environmental performance, and the implementation of stakeholder governance.

PSG5.2 Requirements to monitor the company's purpose, social and environmental impact, and stakeholder considerations are enshrined in the highest governing body's terms of reference.

• The official written terms of reference for the highest governing body. The auditor will review this document to confirm that it explicitly states the body's responsibility for overseeing the company's public purpose, social and environmental impact, and stakeholder considerations.

PSG5.3 All members of the executive team have at least one annual target tied to the company’s social or environmental performance.

• Annual performance review documentation for each member of the executive team. The auditor will look for evidence that each executive has at least one specific annual target related to the company's social or environmental performance.

• The documentation of the targets linked to the incentive scheme. The auditor will review this to confirm the targets are SMART (Specific, Measurable, Achievable, Relevant, and Time-bound), linked to the company’s strategy, and based on its materiality assessment or the B Lab Standards.

PSG5.4 If the company has an existing incentive remuneration scheme for the executive team, it integrates social and environmental performance targets.

• Documentation of the company's incentive or remuneration scheme. The auditor will look for evidence that the scheme ties monetary rewards to social and environmental targets and that these rewards are determined by an annual performance evaluation or fiscal review.

• Internal company records, such as an HR document or an executive compensation report, that tracks the annual data on the value of monetary rewards tied to social and environmental performance targets as a percentage of each executive's salary.

• Documentation of the targets linked to the incentive scheme. The auditor will review this to confirm the targets are SMART (Specific, Measurable, Achievable, Relevant, and Time-bound), linked to the company’s strategy, and based on its materiality assessment or the B Lab Standard. The auditor will also look for evidence of how the company reviews and updates these targets.

PSG5.5 The company includes social or environmental performance targets in performance reviews for managers.

• Annual performance review documents or a goal-setting system for all managers. The auditor will review these documents to ensure each manager has at least one performance review target related to the company's social or environmental performance.

• An internal document, such as a spreadsheet, performance management system report, or a section within an HR portal, that clearly documents all social and environmental targets for managers.

• Documentation of the targets set for managers. The auditor will review these to ensure they are SMART, linked to the company's strategy, and based on a materiality assessment or the B Lab Standard. The auditor will also look for evidence of how these targets are reviewed and updated.

PSG6.1 The company reports its social and environmental performance annually and publicly, with approval from the highest governing body.

• The company’s social and environmental impact report. The auditor will review the report to ensure it includes progress on all relevant social and environmental performance measures, is approved by the highest governing body, and is publicly available on the company’s website.

• If an annual report is not available, the auditor will look for a comprehensive report published at least every two years. Additionally, the auditor will check the company's website for "lighter interim updates" or topic-specific reports that are published annually.

PSG6.2 The company reports its social and environmental performance annually and publicly using a third-party standard.

• A social and environmental impact report that explicitly states it follows a third-party standard (e.g., GRI Reporting or ESRS). The report should also be approved by the highest governing body and publicly available on the company's website.

• A social and environmental impact report that includes detailed information on the company's progress against all relevant performance measures. The auditor will look for evidence of concrete actions taken and management strategies used to achieve social and environmental goals.

PSG6.3 The company assesses workers’ capability to enact its social and environmental strategy.

• An internal report or a summary of a worker assessment or survey. The report should show that the company assessed workers' understanding of the company's social and environmental strategy, their readiness to enact it, and their perception of the implementation of the strategy.

• Documentation of the worker assessment, such as a survey date or a report date, that shows the assessment was conducted at least every 24 months.

• The communication materials or instructions provided to workers for the assessment. The auditor will review these materials to ensure it is clearly stated that participation is optional.

• An internal report that includes a summary of key findings from the worker assessment. The report should also detail any action plans or next steps identified to address the findings.