AA1000 AccountAbility Principles

From AccountAbility AA1000 Wiki

The AA1000 AccountAbility Principles

1. Introduction

There are four AA1000 AccountAbility Principles.

The foundation AA1000 AccountAbility Principle is Inclusivity, which is achieved through stakeholder engagement. This foundation principle provides the base upon which the other three principles, Materiality, Completeness and Responsiveness, stand.

The standards in the AA1000 Series use these principles as their starting point. The AA1000 AccountAbility Principles provide the basis for understanding and achieving quality stakeholder engagement according to AA1000 Stakeholder Engagement Standard (AA1000SES), and sustainability assurance according to AA1000 Assurance Standard (AA1000AS).

Note: The AA1000 AccountAbility Principles may also have a wider application. For example they may be used by organisations to align core strategy and operations with material sustainability issues.

2. The Foundation Principle of Inclusivity

Organisations adopting any part of the AA1000 Series shall commit themselves to adhering to the AA1000 AccountAbility Principle of Inclusivity, by which is meant an organisation’s commitment

• to identify, understand and prioritise their stakeholders and develop appropriate engagement strategies and plans,

• to engage stakeholders in identifying and understanding the social, environmental and economic performance and impact of its strategies and operations,

• to consider and coherently respond (whether negatively or positively) to the needs and concerns of stakeholders in its decisions, policies and practices, and

• to provide an account to stakeholders of its decisions, policies, practices, actions and performance.

Note: Stakeholders are those individuals or groups of individuals who affect and/or could be affected by an organisation’s activities, products or services and associated performance.

Note: The AA1000 Stakeholder Engagement Standard (AA1000SES) provides a framework for quality stakeholder engagement that will enable organisations to meet this principle.

3. The Principle of Materiality

Organisations shall establish a process to determine their material sustainability issues. This process shall be integrated with core strategy and operations.

Material sustainability issues, including social, environmental and economic issues, are determined by an organisation, supported by engagement with its stakeholders.

When determining material issues an organisation shall consider the needs and concerns of those stakeholders as well as societal norms, financial considerations, peer-based norms and policy-based performance.

In determining the materiality of sustainability issues the organisation and its stakeholders should evaluate why, how and at what point they are material and who they are material for.

An issue is material when it is deemed relevant and important in relation to the organisation's ability to create and maintain private and public value.

Material sustainability issues will inform the judgements, decisions and actions of an organisation and its stakeholders.

4. The Principle of Completeness

Organisations shall be able to demonstrate that their identification and understanding of their material sustainability issues is complete and that this understanding exists across the organisation.

Completeness means the comprehensive

• identification of material sustainability issues and the stakeholders to whom they are material, and

• understanding of material sustainability issues and their associated impacts and performance and how they are relevant and important to stakeholders.

5. The Principle of Responsiveness

Organisations shall coherently respond to their material sustainability issues and appropriately communicate their responses to stakeholders. These responses shall be embedded in core organisational strategy and operations.

Responsiveness means

• responding to material sustainability issues with adequate decisions, policies and practices, while taking into consideration the sustainability context, and

• communicating these responses to stakeholders without material omission or misstatement.