GRI 413: LOCAL COMMUNITIES

2016

GRI

413
 Contents

Introduction 3

GRI 413: Local Communities 5

1. Management approach disclosures 5

2. Topic-specific disclosures 7
Disclosure 413-1 O  perations with local community engagement, impact
assessments, and development programs 7
 Disclosure 413-2 O
 perations with significant actual and potential negative
impacts on local communities 9

Glossary 11

References 13

About this Standard

Responsibility This Standard is issued by the Global Sustainability Standards Board (GSSB).
Any feedback on the GRI Standards can be submitted to
[email protected] for the consideration of the GSSB.

Scope GRI 413: Local Communities sets out reporting requirements on the topic of local
communities. This Standard can be used by an organization of any size, type, sector
or geographic location that wants to report on its impacts related to this topic.

Normative This Standard is to be used together with the most recent versions of the following
references documents.
GRI 101: Foundation
GRI 103: Management Approach
GRI Standards Glossary

In the text of this Standard, terms defined in the Glossary are underlined.

Effective date This Standard is effective for reports or other materials published on or after
1 July 2018. Earlier adoption is encouraged.

Note: This document includes hyperlinks to other Standards. In most browsers, using ‘ctrl’ + click will
open external links in a new browser window. After clicking on a link, use ‘alt’ + left arrow to return to
the previous view.

2 GRI 413: Local Communities 2016

Introduction

A. Overview An organization then selects from the set of topic-

specific GRI Standards for reporting on its material
This Standard is part of the set of GRI Sustainability topics. These Standards are organized into three series:
Reporting Standards (GRI Standards). These Standards 200 (Economic topics), 300 (Environmental topics) and
are designed to be used by organizations to report 400 (Social topics).
about their impacts on the economy, the environment,
and society. Each topic Standard includes disclosures specific to
that topic, and is designed to be used together with
The GRI Standards are structured as a set of GRI 103: Management Approach, which is used to
interrelated, modular standards. The full set can be report the management approach for the topic.
downloaded at www.globalreporting.org/standards/.
GRI 413: Local Communities is a topic-specific
There are three universal Standards that apply to every GRI Standard in the 400 series (Social topics).
organization preparing a sustainability report:
GRI 101: Foundation
GRI 102: General Disclosures B. Using the GRI Standards and making claims
GRI 103: Management Approach
There are two basic approaches for using the GRI
Standards. For each way of using the Standards there
GRI 101: Foundation is the starting point for using is a corresponding claim, or statement of use, which
the GRI Standards. It has essential information an organization is required to include in any published
on how to use and reference the Standards. materials.

Figure 1
1. T
 he GRI Standards can be used as a set to prepare
Overview of the set of GRI Standards a sustainability report that is in accordance with
the Standards. There are two options for preparing
Foundation Starting point a report in accordance (Core or Comprehensive),
for using the depending on the extent of disclosures included in
GRI Standards the report.
GRI
101 An organization preparing a report in accordance
Universal with the GRI Standards uses this Standard,
Standards
GRI 413: Local Communities, if this is one of its
General Management material topics.
Disclosures Approach

GRI GRI 2. S elected GRI Standards, or parts of their content,

102 103 can also be used to report specific information,
without preparing a report in accordance with
To report contextual To report the the Standards. Any published materials that use
information about management approach
an organization for each material topic
the GRI Standards in this way are to include a
‘GRI-referenced’ claim.

See Section 3 of GRI 101: Foundation for more

Economic Environmental Social
information on how to use the GRI Standards,
Topic-
specific
and the specific claims that organizations are
Standards
GRI GRI GRI required to include in any published materials.
200 300 400
Select from these to report specific disclosures
for each material topic

GRI 413: Local Communities 2016 3

 C. Requirements, recommendations and guidance These concepts are covered in key instruments of
the Organisation for Economic Co-operation and
The GRI Standards include: Development and the United Nations: see References.

Requirements. These are mandatory instructions. The disclosures in this Standard can provide
In the text, requirements are presented in bold font information about an organization’s impacts related to
and indicated with the word ‘shall’. Requirements are local communities, and how it manages these impacts.
to be read in the context of recommendations and
guidance; however, an organization is not required to
comply with recommendations or guidance in order
to claim that a report has been prepared in accordance
with the Standards.

Recommendations. These are cases where a particular

course of action is encouraged, but not required. In the
text, the word ‘should’ indicates a recommendation.

Guidance. These sections include background

information, explanations and examples to help
organizations better understand the requirements.

An organization is required to comply with all applicable

requirements in order to claim that its report has been
prepared in accordance with the GRI Standards. See
GRI 101: Foundation for more information.

D. Background context

In the context of the GRI Standards, the social

dimension of sustainability concerns an organization’s
impacts on the social systems within which it operates.

GRI 413 addresses the topic of local communities.

In the GRI Standards, local communities are defined
as persons or groups of persons living and/or
working in any areas that are economically, socially or
environmentally impacted (positively or negatively) by
an organization’s operations. The local community can
range from persons living adjacent to an organization's
operations, to those living at a distance who are still
likely to be impacted by these operations.

An organization’s activities and infrastructure can

have significant economic, social, cultural, and/or
environmental impacts on local communities.
Where possible, organizations are expected to
anticipate and avoid negative impacts on local
communities. Establishing a timely and effective
stakeholder identification and engagement process
is important to help organizations understand the
vulnerability of local communities and how these
might be affected by the organization’s activities.

Due to the heterogeneous nature of local

communities, an organization is expected to consider
the differentiated nature of communities and the distinct
and specific vulnerabilities these groups can suffer as
a result of the organization’s activities.

4 GRI 413: Local Communities 2016

GRI 413:
Local Communities

This Standard includes disclosures on the management approach and topic-specific

disclosures. These are set out in the Standard as follows:

• Management approach disclosures (this section references GRI 103)

• Disclosure 413-1 O perations with local community engagement, impact
assessments, and development programs
• Disclosure 413-2 O
 perations with significant actual and potential negative impacts
on local communities

1. Management approach disclosures

Management approach disclosures are a narrative explanation of how an organization manages a material topic,
the associated impacts, and stakeholders’ reasonable expectations and interests. Any organization that claims its
report has been prepared in accordance with the GRI Standards is required to report on its management approach
for every material topic, as well as reporting topic-specific disclosures for those topics.

Therefore, this topic-specific Standard is designed to be used together with GRI 103: Management Approach in order
to provide full disclosure of the organization’s impacts. GRI 103 specifies how to report on the management approach
and what information to provide.

Reporting requirements
1.1 The reporting organization shall report its management approach for local communities using
GRI 103: Management Approach.

GRI 413: Local Communities 2016 5

 Management approach disclosures
Continued

Guidance

When reporting its management approach for local Other standards such as the International Finance
communities, the reporting organization can also Corporation’s (IFC) Performance Standards (PS) also
describe: provide widely-accepted good practice approaches for
• the means by which stakeholders are identified organizational assessment, engagement and treatment
and engaged with; of community-related impact issues (see IFC PS1 –
Assessment and Management of Environmental and
• which vulnerable groups have been identified; Social Risks and Impacts, and PS4 – Community
• any collective or individual rights that have been Health, Safety, and Security).
identified that are of particular concern for the
community in question;
• how it engages with stakeholder groups that are
particular to the community (for example, groups
defined by age, indigenous background, ethnicity or
migration status);
• the means by which its departments and other
bodies address risks and impacts, or support
independent third parties to engage with
stakeholders and address risks and impacts.

Background
Communities have individual and collective rights
deriving from, among others, international declarations
and conventions such as:
• the United Nations (UN) Declaration, ‘Universal
Declaration of Human Rights’, 1948;
• the United Nations (UN) Convention, ‘International
Covenant on Civil and Political Rights’, 1966;
• the United Nations (UN) Convention, ‘International
Covenant on Economic, Social, and Cultural Rights’,
1966;
• the United Nations (UN) Declaration, ‘Declaration
on the Right to Development’, 1986.

6 GRI 413: Local Communities 2016

 2. Topic-specific disclosures

Disclosure 413-1
Operations with local community engagement, impact assessments,
and development programs

Reporting requirements

The reporting organization shall report the following information:

a. Percentage of operations with implemented local community engagement, impact assessments,
and/or development programs, including the use of:
i. social impact assessments, including gender impact assessments, based on participatory
processes;
ii. environmental impact assessments and ongoing monitoring;
Disclosure iii. public disclosure of results of environmental and social impact assessments;
413-1 iv. local community development programs based on local communities’ needs;
v. stakeholder engagement plans based on stakeholder mapping;
vi. broad based local community consultation committees and processes that include
vulnerable groups;
vii. works councils, occupational health and safety committees and other worker representation
bodies to deal with impacts;
viii. formal local community grievance processes.

Reporting recommendations
2.1 When compiling the information specified in Disclosure 413-1, the reporting organization should use data
from Disclosure 102-7 in GRI 102: General Disclosures to identify the total number of operations.

Guidance

Background Where possible, organizations are expected to

A key element in managing impacts on people in local anticipate and avoid negative impacts on local
communities is assessment and planning in order to communities. Where this is not possible, or where
understand the actual and potential impacts, and strong residual impacts remain, organizations are expected
engagement with local communities to understand their to manage those impacts appropriately, including
expectations and needs. There are many elements that grievances, and to compensate local communities
can be incorporated into local community engagement, for negative impacts.
impact assessments, and development programs. This
disclosure seeks to identify which elements have been
consistently applied, organization-wide.

GRI 413: Local Communities 2016 7

 Disclosure 413-1
Continued

Establishing a timely and effective stakeholder An organization is expected to consider the

identification and engagement process is important differentiated nature of local communities and to
to help organizations understand the vulnerability take specific action to identify and engage vulnerable
of local communities and how these might be groups. This might require adopting differentiated
affected by the organization’s activities. A stakeholder measures to allow the effective participation of
engagement process both in early planning stages vulnerable groups, such as making information available
as well as during operations, can help establish in alternate languages or format for those who are
lines of communication between an organization’s not literate or who do not have access to printed
various departments (planning, finance, environment, materials. Where necessary, organizations are expected
production, etc.) and key stakeholder interest groups to establish additional or separate processes so that
in the community. This enables an organization to negative impacts on vulnerable or disadvantaged groups
consider the views of community stakeholders in its are avoided, minimized, mitigated or compensated.1
decisions, and to address its potential impacts on local
communities in a timely manner.
Organizations can utilize a number of useful tools to
engage communities, including social and human rights
impact assessments, which include a diverse set of
approaches for proper identification of stakeholders
and community characteristics. These can be based on
issues such as ethnic background, indigenous descent,
gender, age, migrant status, socioeconomic status,
literacy levels, disabilities, income level, infrastructure
availability or specific human health vulnerabilities
which may exist within stakeholder communities.

1 International Finance Corporation (IFC), Guidance Notes: Performance Standards on Environmental and Social Sustainability, 2012.

8 GRI 413: Local Communities 2016

 Disclosure 413-2
Operations with significant actual and potential negative impacts on
local communities

Reporting requirements

The reporting organization shall report the following information:

Disclosure a. Operations with significant actual and potential negative impacts on local communities, including:
413-2 i. the location of the operations;
ii. the significant actual and potential negative impacts of operations.

Reporting recommendations
2.2 When compiling the information specified in Disclosure 413-2, the reporting organization should:
2.2.1 report the vulnerability and risk to local communities from potential negative impacts due to
factors including:
2.2.1.1 the degree of physical or economic isolation of the local community;
2.2.1.2 the level of socioeconomic development, including the degree of gender equality within the
community;
2.2.1.3 the state of socioeconomic infrastructure, including health and education infrastructure;
2.2.1.4 the proximity to operations;
2.2.1.5 the level of social organization;
2.2.1.6 the strength and quality of the governance of local and national institutions around local
communities;
2.2.2 report the exposure of the local community to its operations due to higher than average use of
shared resources or impact on shared resources, including:
2.2.2.1 the use of hazardous substances that impact the environment and human health in general,
and specifically impact reproductive health;
2.2.2.2 the volume and type of pollution released;
2.2.2.3 the status as major employer in the local community;
2.2.2.4 land conversion and resettlement;
2.2.2.5 natural resource consumption;
2.2.3 for each of the significant actual and potential negative economic, social, cultural, and/or environmental
impacts on local communities and their rights, describe:
2.2.3.1 the intensity or severity of the impact;
2.2.3.2 the likely duration of the impact;
2.2.3.3 the reversibility of the impact;
2.2.3.4 the scale of the impact.

GRI 413: Local Communities 2016 9

 Disclosure 413-2
Continued

Guidance for Disclosure 413-2 Background

Internal sources of information about actual and This disclosure is focused on significant actual and
potential negative impacts of operations on local potential negative impacts related to an organization’s
communities can include: operations and not on community investments or
• actual performance data; donations, which are addressed by GRI 201: Economic
Performance.
• internal investment plans and associated risk
assessments; This disclosure informs stakeholders about an
organization’s awareness of its negative impacts on
• all data collected with topic-specific disclosures
local communities. It also enables the organization
as they relate to individual communities. For
to better prioritize and improve its organization-wide
example: GRI 203: Indirect Economic Impacts, GRI
attention to local communities. 
301: Materials, GRI 302: Energy, GRI 303: Water and
Effluents, GRI 304: Biodiversity, GRI 305: Emissions,
GRI 306: Effluents and Waste, GRI 403: Occupational
Health and Safety, GRI 408: Child Labor, GRI 409:
Forced or Compulsory Labor, GRI 410: Security
Practices, GRI 411: Rights of Indigenous Peoples, and
GRI 416: Customer Health and Safety.

10 GRI 413: Local Communities 2016

Glossary

This Glossary includes definitions for terms used in this Standard, which apply when using this Standard. These
definitions may contain terms that are further defined in the complete GRI Standards Glossary.
All defined terms are underlined. If a term is not defined in this Glossary or in the complete GRI Standards Glossary,
definitions that are commonly used and understood apply.

community development program

plan that details actions to minimize, mitigate, or compensate for adverse social and/or economic impacts,
and/or to identify opportunities or actions to enhance positive impacts of a project on the community

impact
In the GRI Standards, unless otherwise stated, ‘impact’ refers to the effect an organization has on the
economy, the environment, and/or society, which in turn can indicate its contribution (positive or negative)
to sustainable development.
Note 1: In the GRI Standards, the term ‘impact’ can refer to positive, negative, actual, potential, direct,
indirect, short-term, long-term, intended, or unintended impacts.
Note 2: Impacts on the economy, environment, and/or society can also be related to consequences for
the organization itself. For example, an impact on the economy, environment, and/or society can
lead to consequences for the organization’s business model, reputation, or ability to achieve its
objectives.

local community
persons or groups of persons living and/or working in any areas that are economically, socially or
environmentally impacted (positively or negatively) by an organization’s operations
Note: The local community can range from persons living adjacent to an organization’s operations, to those
living at a distance who are still likely to be impacted by these operations.

material topic
topic that reflects a reporting organization’s significant economic, environmental and social impacts; or that
substantively influences the assessments and decisions of stakeholders
Note 1: For more information on identifying a material topic, see the Reporting Principles for defining
report content in GRI 101: Foundation.
Note 2: To prepare a report in accordance with the GRI Standards, an organization is required to report on
its material topics.
Note 3: Material topics can include, but are not limited to, the topics covered by the GRI Standards in the
200, 300, and 400 series.

operation with significant actual or potential negative impacts on local

communities
an operation, considered alone or in combination with the characteristics of local communities, that has
a higher than average potential of negative impacts, or actual negative impacts, on the social, economic or
environmental well-being of local communities
Note: Examples of negative impacts on local communities can include impacts to local community health
and safety.

GRI 413: Local Communities 2016 11

 vulnerable group
set or subset of persons with some specific physical, social, political, or economic condition or characteristic
that places the group at a higher risk of suffering a burden, or at a risk of suffering a disproportionate burden
of the social, economic or environmental impacts of the organization’s operations
Note 1: Vulnerable groups can include children and youth, the elderly, people with disabilities, ex-
combatants, the internally displaced, refugees or returning refugees, HIV/AIDS-affected households,
indigenous peoples, and ethnic minorities.
Note 2: Vulnerabilities and impacts can differ by gender.

12 GRI 413: Local Communities 2016

References

The following documents informed the development of this Standard and can be helpful for understanding
and applying it.

Authoritative intergovernmental instruments:

1. Organisation for Economic Co-operation and Development (OECD), OECD Guidelines for Multinational
Enterprises, 2011.
2. Organisation for Economic Co-operation and Development (OECD), Risk Awareness Tool for Multinational
Enterprises in Weak Governance Zones, 2006.
3. United Nations (UN) Convention, ‘International Covenant on Civil and Political Rights’, 1966.
4. United Nations (UN) Convention, ‘International Covenant on Economic, Social, and Cultural Rights’, 1966.
5. United Nations (UN) Declaration, ‘Declaration on the Right to Development’, 1986.
6. United Nations (UN) Declaration, ‘Universal Declaration of Human Rights’, 1948.

Other relevant references:

7. International Finance Corporation (IFC), Performance Standards on Environmental and Social
Sustainability, 2012.
8. International Finance Corporation (IFC), Stakeholder Engagement: A Good Practice Handbook for Companies
Doing Business in Emerging Markets, 2007.

GRI 413: Local Communities 2016 13

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