(New York, 7 January 2014) - The UN Global Compact today announced that it has expelled 107 companies in the latter half of 2013 for failure to communicate progress for at least two consecutive years. The list of 107 expelled companies can be found here.

These expelled companies represent two percent of the 4,416 participants due to submit a Communication on Progress (COP) within the last six months of 2013. During the same period, 2,605 companies did submit a COP, of which 180 achieved the GC Advanced level, an unprecedented number reflecting an increased commitment to transparency compared to the first six months.

The number of companies joining the Global Compact continues to significantly exceed the number of expulsions. With 707 companies from around the world joining the initiative from July through December 2013, participants have signed onto the Global Compact at nearly seven times the rate of expulsions.

Business participants in the Global Compact commit to make the ten principles part of their business strategies and day-to-day operations. As an integral part of their commitment, companies must issue an annual COP, a public disclosure to stakeholders (investors, consumers, civil society, Governments) on progress made in implementing the ten principles, and in supporting broader UN development goals.

Companies that fail to submit a COP for two consecutive years have not fulfilled their commitment to the Global Compact and face expulsion from the initiative. Expelled participants that wish to renew their participation must reapply via a new Letter of Commitment from the chief executive.

In the spirit of continuous improvement and engagement, a new Communication on Engagement (COE) policy introduced in October 2013 requires non-business participants to disclose specific activities in support of the initiative to stakeholders every two years, as well as results. The COE enables civil society, academia and business associations and other non-business participants to express their commitment through transparency and communicate the ways they support the Global Compact. Non-business participants that fail to submit a COE every two years will also face expulsion from the initiative.

The Global Compact offers customized and direct support to participants through its Relationship Management and Reporting teams, as well as through Local Networks in 101 countries. Companies of all types and in all regions are encouraged to take advantage of this valuable support to maximize their participation in the initiative.

In September 2013, the UN Global Compact Leaders Summit 2013: Architects of a Better World provided an opportunity for companies to demonstrate their commitment to the principles and redouble their efforts toward sustainability. Chaired by UN Secretary-General Ban Ki-moon, the Leaders Summit convened 1,200 chief executives and leaders from civil society, Government and the United Nations to unveil a new global architecture for corporate sustainability. The Leaders Summit set the stage for business to shape and advance the post-2015 development agenda - putting forward a framework for business to contribute to global priorities, such as climate change, water, food, women's empowerment, children's rights, decent jobs, and education.

The Global Compact welcomes the international community to utilize this information to encourage more companies and other organizations to make a serious and enduring commitment to universal sustainability principles.

Kristen Coco
Public Affairs and Media Relations
UN Global Compact
cocok@un.org
+1 917-367-8566

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