GIZ is continuously refining its corporate Sustainability Programme and it is important for us to involve our partners around the globe in this process.
‘Thank you very much, goodbye!’ says Vishakha Jha as she takes her leave from Rajan Chedambath, the head of a municipal research institute. The Sustainability Manager for GIZ India had just been discussing the positive and negative sustainability aspects of GIZ’s work in India. It is one of a total of 13 such discussions that Vishakha held in 2023.
Vishakha passes on the results of her discussions to Christine Weinreich, who works at GIZ in Bonn, Germany, as an expert in sustainability reporting. The purpose of the partner survey for Christine and her colleagues is to find out which sustainability issues are particularly important for GIZ – with regard to both its own operational sustainability and its project work.
Using a predefined list of topics, the discussion partners choose the areas where GIZ, in their opinion, produces the greatest positive and negative impacts. The questions cover opportunities and risks with regard to the climate, but also matters such as waste, equality or political rights. The partner survey is part of the materiality analysis that GIZ conducted in 2023.
Christine Weinreich coordinated GIZ’s materiality analysis and partner survey in 2023. In this interview, she tells us why both of these are so important.
What are the findings of the 2023 materiality analysis?
A materiality analysis identifies issues that are particularly relevant to a company like GIZ. The new analysis shows that our material topics as previously defined, such as curbing climate change, the sustainable use of resources and working conditions for our staff and for people in our supply chains, continue to be of the utmost relevance to our work. However, as we are following the new EU-wide Corporate Sustainability Reporting Directive (CSRD) standard in this latest analysis, the selection of topics has changed to a certain extent. Some entirely new areas were added to the analysis in 2023, too, for example the protection of ecosystems such as forests.
»It’s not enough just to ask GIZ staff members which aspects of sustainability we have the greatest influence over. Our international partners are very important stakeholders for us.«
Christine Weinreich, Corporate Development Unit Policy Advisor Quality and Sustainability
So, the material topics set the direction for reporting. What happens beyond that with the findings of the analysis?
What is important is that, as a company, we actively address the material topics in order to limit any negative impacts on our environment as much as possible while at the same time minimising financial risks for GIZ. Our motto is don’t just talk about it, do it! We use the material topics to further refine our Sustainability Programme and identify core measures. We did this after the last materiality analysis in 2020, as well. And since then, we have already implemented half of all the measures, for instance a pilot project for an emissions budget in 2023.
Why are the partners’ assessments and perspectives so important for the analysis?
It’s not enough just to ask GIZ staff members which aspects of sustainability we have the greatest influence over. Our international partners are very important stakeholders for us. Not only can they share their own views as GIZ’s partners, but they also provide a perspective that is even closer to the people for whom GIZ works worldwide. The partner survey is the first time that we have systematically incorporated them into a dialogue on the subject of sustainability. This meant that we were able to find out what they expect of our work. We are using the information to continue the strategic development of our sustainability management system.
GRI and CSRD – what the reporting standards mean
Up to now, GIZ has compiled its reports on corporate sustainability in line with the standards of the Global Reporting Initiative – or GRI for short. As of the reporting year 2025, a new EU-wide standard will become mandatory: the Corporate Sustainability Reporting Directive (CSRD). The main difference between the two standards has to do with the underlying materiality analysis (see interview). The first time that GIZ will report in accordance with CSRD will be for the reporting year 2025. However, we are already taking the necessary first steps, by introducing the extended materiality analysis and partner survey, for example.
Diverse perspectives on sustainability in India
When Vishakha Jha learned about the partner survey, she was immediately enthusiastic: ‘It’s a great opportunity for us to find out about our partners’ opinions. We have been working with Rajan Chedambath’s institute for more than 10 years now, looking at areas such as adaptation to climate change. It was fascinating to hear what aspects of sustainability he associated our work with,’ Vishakha tells us.
The most difficult thing, she says, was to choose a small number of the very many potential project partners to talk to. GIZ implements over 100 projects in India with a wide range of partner organisations, and they all have a different view of our work. This is why Vishakha, sitting at her desk in New Delhi, devised a matrix, divided up according to various criteria. ‘I wanted to be sure that we interview not only ministries, consultancy firms and non-governmental organisations, but also a few staff members from our country offices. Drawing on all these different perspectives has given us a good overall picture.’
»It is commendable to see that GIZ is actively seeking perspectives and feedback from partners. This strengthens our long-standing cooperation with GIZ across various projects and strengthens our relationship.«
Rajan Chedambath, Head of the c-hed Kochi Community Research Institute in India
It came as little surprise to Vishakha Jha that the issues rated as being most positive among the partners she interviewed were those on which they cooperate with GIZ themselves. ‘Many are not at all familiar with the full extent of our work. That is why it was important to broaden the perspective in the dialogue together.’ The findings from India in large part match those of the company-wide materiality analysis. Many partners emphasised that GIZ's work has a positive impact on climate change, especially in the field of energy. At the same time, the potential for reducing emissions through the use of green energy is particularly big in India. For this reason, it remains a material topic for GIZ.
The findings were fed into GIZ’s materiality analysis together with the results from Mexico, Thailand, Togo, Uganda and Uzbekistan, where partner surveys were also carried out. They will determine the future topics on which GIZ will report. In addition, they will form the basis for the sustainability strategy and the measures included in the Sustainability Programme.
»Our impact on climate and environmental issues was very often rated as positive, with some employees from the country offices noting that we should focus even more consistently on sustainable events and procurement in our own actions.«
We defined core measures for all material topics in our Sustainability Programme on the basis of our last materiality analysis in 2020. They are shared between four areas: climate management and mobility, resource efficiency and biodiversity, sustainable procurement, and human rights. Implementation of the programme is making steady progress. We have already implemented nearly half of all the defined measures, and a further 35 per cent are at the preparation stage. You can read about highlights from 2023 in the slider.
GIZ statement receives Environmental Management Award for outstanding clarity
In our materiality analyses in 2020 and 2023, we identified climate change, environmental protection and energy as the most important topics. These have long been high priorities for GIZ: we have been EMAS-certified for 10 years. In the Environmental Statement that we need to provide for certification, we demonstrate every year how we are minimising our ecological footprint, what objectives we are setting for ourselves and what progress we are making. In 2023, we received the prestigious Environmental Management Award from the German and Austrian environment ministries as recognition of this.
In 2023, we implemented another measure to address the material topic of climate change mitigation in the form of a pilot project: the greenhouse gas budget. Five organisational units, among them the country offices in Colombia, Rwanda and Lebanon, were given a greenhouse gas budget for emissions from flights and vehicles in much the same way as they are given a financial budget. The goal was to establish transparency about greenhouse gas emissions and thereby create incentives to reduce them. We will evaluate the results in 2024 and use them as a basis for introducing the next steps.
Another very important topic that we identified in our materiality analysis is the protection of human rights. We have long been committed to improving the human rights situation worldwide, and not only since the German Supply Chain Act entered into force. For us, this also means analysing the risk of human rights violations at our own locations every year. Our analysis for 2023 revealed that 69 GIZ locations are situated in high-risk countries. However, questionnaires and interviews with the respective location managers showed that specific risks have already been reduced thanks to existing prevention measures and that regulations on protecting the human rights of GIZ staff are effective.
Sustainability management in Uganda: imitators welcome
We have set ourselves ambitious environmental and climate targets. If we are to achieve these, all GIZ locations around the world have to pull in the same direction. Here you can read about how committed action and an electric car are causing a sensation in Uganda.
GIZ has two registered offices in Germany, one in Bonn and one in Eschborn. The company is represented at seven other locations in Germany and operates in nearly 120 countries.
Entities included in the organisation’s sustainability reporting
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
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Reporting period, frequency and contact point
01/01/2023–31/12/2023; the Integrated Company Report is published annually; for the reporting year 2023, it was published in June 2024.
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Restatements of information
Compared to the 2022 reporting period, changes were made to the material topics in the 2023 Integrated Company Report due to the materiality analysis conducted in 2023 in accordance with the Corporate Sustainability Reporting Directive (CSRD). In particular, the presentation of topics was subsequently adjusted.
See GRI 3: Material Topics
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External assurance
Up to now, the Integrated Company Report has been externally audited every two to three years. The most recent audit was conducted for the 2021 Integrated Company Report. Starting from the reporting year 2025, sustainability reporting in accordance with the CSRD will be included in the management report and will thus be subject to audit. Since there will be a transition to CSRD-compliant reporting for the reporting years 2023 and 2024, no further external audit will be conducted.
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Activities, value chain and other business relationships
GIZ is a service provider and implementer in the field of international cooperation for sustainable development and education. We support the German Government in achieving its development objectives. Together with our partners, we work to deliver flexible and effective solutions that offer people better prospects and sustainably improve their living conditions.
Some of our most important resources include the decades of experience we can draw on and our extensive network of experts and local and international cooperation partners from the political sphere, the business world, the science and research community, and civil society. The funding for our work comes from the public and private sector and we use these funds carefully to achieve the maximum impact. This level of care is also reflected in our approach to our planet’s natural resources, which we use responsibly.
GIZ offers a wide range of services. We deliver advisory services at the political level and to the private sector. We network actors and are present whenever conflicts need to be resolved. In all our activities, we focus on developing and building the capacities of individuals, organisations and governments. We see holistic capacity building as the key to sustainable development – and sustainability is both the principle that guides our actions and our core business. We think in an entrepreneurial way and act cost-effectively, although we are not profit-oriented. We train and place experts, manage and supervise construction and infrastructure projects, administer financing arrangements and are experts in the sustainable procurement of goods.
We create value at three levels. By enabling individuals, supporting organisations and strengthening societies, our work around the world is helping to achieve the 2030 Agenda’s Sustainable Development Goals (SDGs).
The Supervisory Board has formed the following committees: Audit Committee, Standing Committee, Urgent Matters Committee.
Composition of the Supervisory Board:
Executive/non-executive members, their positions/responsibilities and skills: Supervisory Board (giz.de)
Stakeholders: The representatives of the shareholder currently comprise four members of the Budget Committee of the German Federal Parliament, five representatives of the German Government (Federal Ministry for Economic Cooperation and Development, Federal Ministry of Finance, Federal Foreign Office, Federal Ministry for Economic Affairs and Climate Action, Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection) as well as one representative of the Deutsche Stiftung für internationale Entwicklung (DSE) from the Bavarian State Chancellery.
Independence: The rules of procedure of the Supervisory Board stipulate that members are required to act in the best interests of the company. Their decisions may not be swayed by personal interests or by any efforts to exploit business opportunities to which the company is entitled for their own benefit. Conflicts of interest, particularly such that might arise as a result of advising or sitting on an official body of clients, suppliers, lenders or any other business partners, must be disclosed to the Supervisory Board.
Term of office: Generally, the members of the Supervisory Board are appointed for the period ending with the conclusion of the Shareholder Meeting that decides on the granting of formal approval of activities for the fourth financial year after the beginning of the term of office. The financial year in which the term of office begins is not included.
The Supervisory Board has achieved gender parity.
No information on social groups is recorded with respect to the Supervisory Board.
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3, 5
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Nomination and selection of the highest governance body
The GIZ Supervisory Board (20 members) consists of 10 shareholder representatives and 10 workforce representatives.
The members of the Supervisory Board representing the shareholder are appointed and dismissed by the shareholder.
The workforce representatives are elected by GIZ staff in line with the provisions of the German Co-determination Act (Mitbestimmungsgesetz). The most recent election was held in August 2022. The 10 workforce representatives consist of three trade union representatives, one executive manager and six employees.
Role of the highest governance body in overseeing the management of impacts
Values, strategies and objectives are set by the Management Board and the committees at the top management level. Strategic leadership is not the role of the Supervisory Board.
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Delegation of responsibility for managing impacts
Corporate sustainability is the responsibility of the Management Board. The Director Corporate Sustainability, the Sustainability Office and relevant officers with special responsibilities work closely with senior management on the systematic development of sustainability at GIZ.
The Sustainability Board, an internal GIZ decision-making committee responsible for the strategic orientation of corporate sustainability, existed until mid-2023. The Sustainability Board was dissolved as part of an internal reform of GIZ’s official bodies in 2023. Decisions concerning corporate sustainability will now be made within the, in part, newly formed official bodies of the company. This ensures that sustainability is addressed in wider management circles throughout the entire company and is increasingly taken into account as a cross-cutting issue in key management decisions.
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Role of the highest government body in sustainability reporting
Under the provisions of the German Government’s Public Corporate Governance Code (PCGK), GIZ, as a federal enterprise, is required to issue a sustainability report in accordance with the German Sustainability Code, including the obligation to report on human rights, and submit it to the Supervisory Board for scrutiny. In 2023, this took the form of the Declaration of Conformity with the German Sustainability Code. Reports are published once a year.
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Conflicts of interest
The rules of procedure of the Supervisory Board stipulate that members are required to act in the best interests of the company. Their decisions may not be swayed by personal interests or by any efforts to exploit business opportunities to which the company is entitled for their own benefit. Conflicts of interest, particularly such that might arise as a result of advising or sitting on an official body of clients, suppliers, lenders or any other business partners, must be disclosed to the Supervisory Board. Should a Supervisory Board member declare a conflict of interests, a discussion of how to address this issue should be held without delay and a decision taken on how to proceed.
In the spirit of the German Government’s Public Corporate Governance Code (PCGK), GIZ ensures that members can meet their responsibilities as part of the Supervisory Board. Accordingly, members are not supposed to hold more than three posts simultaneously in supervisory bodies.
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Communication of critical concerns
Where critical concerns arise within the sphere of responsibility of the Supervisory Board, these concerns are addressed in the form of regular or special reports or through business transactions subject to approval.
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Collective knowledge of the highest governance body
Under the provisions of the German Government’s Public Corporate Governance Code (PCGK), GIZ, as a federal enterprise, is required to issue a sustainability report in accordance with the German Sustainability Code, including the obligation to report on human rights, and submit it to the Supervisory Board for scrutiny. In 2023, this took the form of the Declaration of Conformity with the German Sustainability Code. Reports are published once a year.
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9, 14
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Evaluation of the performance of the highest governance body
The performance of the Supervisory Board is not evaluated by any third party.
The annual total compensation ratio of the highest-paid individual working for the organisation in each individual country with an important establishment to the median annual total compensation for all employees in that country has not been published for 2023. This is not reported in detail due to confidentiality requirements and because of potential adverse impacts on the individual security of field staff.
GIZ’s understanding of sustainability is defined by its company-wide Sustainability Guidelines. The Sustainability Guidelines underwent extensive revision in 2023. The updated Sustainability Guidelines specify how our sustainability principles work in practice. They set out GIZ’s understanding of sustainability and provide guidance on dealing with the conflicting interests and objectives that the various dimensions of sustainability give rise to. They form the foundation for GIZ’s operational policies and strategies and its processes and rules. Finally, they define the company’s corporate sustainability architecture and governance.
The purpose of the Sustainability Programme is to define and implement specific measures for improving sustainability. In our regular materiality analysis, we identify the key sustainability issues for our company, which then form the basis for the Sustainability Programme and the report. We also involve internal and external stakeholders in order to draw on their different perspectives.
The most important topics of sustainability management at GIZ in strategic terms are, and will continue to be, mitigating climate change and thus cutting greenhouse gas emissions. Making mobility sustainable is a key lever for GIZ, since travel accounts for almost 80 per cent of the emissions produced by the company. Wherever possible, business travel is to be replaced by online meetings or reduced by grouping appointments. Taking 2019 as a benchmark, we intend to cut our greenhouse gas emissions resulting from air travel inside and outside Germany by a quarter by 2025.
That is why climate action is a key objective of our Sustainability Programme 2021–2025. But we also have other ambitious goals for the coming years. Besides our aim of conserving natural resources and contributing to biodiversity protection, we want to put our procurement on a more sustainable footing, and become even more diverse as a company. And we want to sensitise our staff to the issue of human rights and encourage them to call out potential abuses. Our Sustainability Programme also focuses in particular on our offices outside Germany.
Our intention is to align everything we do with the guiding principle of sustainability. The Sustainable Development Goals (SDGs) of the 2030 Agenda and the principles for their implementation provide our framework for action. We are also guided by Germany’s Sustainable Development Strategy, which applies the 2030 Agenda to the German context.
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Embedding policy commitments
The GIZ Sustainability Programme 2021–2025 lists the units responsible for implementation.
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6, 14, 17, 19
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Processes to remediate negative impacts
The GIZ whistleblower system is designed to detect human rights breaches or any suspected human rights violations as well as any infringements of legislation, GIZ internal regulations or voluntary commitments. Incidents can be reported anonymously using the GIZ whistleblower portal. The whistleblower system serves as the medium for GIZ’s human rights complaints mechanism, which is available to everyone.
GIZ’s Safeguards+Gender management system allows it to identify risks in advance and respond appropriately at the project level, while helping GIZ to prevent any unintended adverse impacts on human rights.
Memberships and voluntary commitments GIZ is a member of numerous organisations and, in selected cases, assumes chair or member functions. Here are some examples.
B.A.U.M. e.V. We have been a member of B.A.U.M. (German only) (German Association of Environmental Management) since 2011 and are therefore bound by B.A.U.M.’s Code of Conduct for Sustainable Business. B.A.U.M.aims to raise awareness among companies, local authorities and other organisations of the need for precautionary systems of environmental protection and its vision of sustainable business management. B.A.U.M. also helps its members to implement measures that are environmentally effective, economically viable and socially fair.
Biodiversity in Good Company GIZ has been a member of the Biodiversity in Good Company initiative since it was first established in 2008. The initiative brings together companies from numerous sectors to drive action on the protection and sustainable use of global biodiversity resources in line with the UN Convention on Biological Diversity. It aims to halt the dramatic loss of ecosystems, species and genetic diversity.
Charta der Vielfalt (German Diversity Charter) In October 2019, GIZ signed the Charta der Vielfalt. It is a corporate initiative to promote diversity in companies and institutions. The aim is to drive forward recognition and respect for diversity within the world of work in Germany and to actively draw on diversity. By signing the Charter, GIZ has expressed its conviction that people with different talents, abilities and life experience can enrich and advance our common work. GIZ continues to uphold the voluntary commitment to foster diversity and respect in the working world.
Science Based Targets initiative Almost 2,500 companies around the world have signed up to the Science Based Targets initiative (SBTi). The UN Global Compact, the World Resources Institute (WRI), the World Wide Fund For Nature (WWF) and the Carbon Disclosure Project (CDP) are behind the initiative. Companies signing up are required to systematically record and disclose their climate data. SBTi experts verify whether or not the reduction targets proposed by the companies are compatible with the target of 1.5 to 2 degrees Celsius set out in the Paris Agreement. Participating organisations also undertake to report transparently and publicly once a year on the progress they have made towards achieving their targets based on standard criteria. GIZ is the first development cooperation company to join SBTi, thereby committing itself to pursuing ambitious mitigation targets.
Foundation Development and Climate Alliance Since late 2018, the Foundation Development and Climate Alliance has aimed to link development cooperation and international climate action through the voluntary offsetting of greenhouse gas emissions. It also mobilises additional funding for important development and climate action projects in developing countries and emerging economies. Supporters aim to achieve climate neutrality by avoiding or reducing greenhouse gas emissions and offsetting any remaining emissions with high-quality projects. GIZ supports the Foundation Development and Climate Alliance. It successfully established the initiative’s secretariat, which it transferred to the dedicated Foundation Development and Climate Alliance in mid-2021.
Sustainability Leadership Forum (SLF) The Sustainability Leadership Forum (German only) was set up by the German Association of Environmental Management (B.A.U.M.) and the Centre for Sustainability Management (CSM) at Leuphana University in Lüneburg, Germany. In 2020, NORDAKADEMIE Hochschule der Wirtschaft took over the role of cooperation partner from Leuphana University. The Forum is designed to facilitate discussion and collaboration between companies that have already established excellent sustainability management systems and wish to broaden their corporate sustainability strategy. As a Forum participant, GIZ appreciates the opportunities to share experience, transfer knowledge and work jointly to resolve problems.
UN Global Compact GIZ signed up to the Global Compact of the United Nations in 2004 and, in doing so, undertook to follow its ten principles relating to labour and welfare, human rights, the environment and the fight against corruption. We report annually on the action we have taken in each of these areas. GIZ has been running the secretariat of the UN Global Compact Network Germany on behalf of BMZ since 2001.
Women’s Empowerment Principles The focus of the Women’s Empowerment Principles (WEPs) is on strengthening women in companies. The seven principles offer companies guidelines for promoting gender equality in the workplace and within society. They are based on the realisation that businesses have responsibility and an important role to play in achieving gender equality. GIZ has supported the principles since 2015, making it one of the first eight German companies to champion gender equality in this way. Today, over 1,000 companies around the world have committed to the WEPs.
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Approach to stakeholder engagement
GIZ’s key stakeholder groups are defined in the company’s new Sustainability Guidelines. Commissioning parties and the shareholder issue directives on sustainability issues and are a source of fresh impetus for GIZ. Employee participation is assured via the employee representative bodies at GIZ. Works council agreements are the main instrument used to exercise workplace codetermination. Voluntary staff initiatives also support the implementation of sustainability measures. GIZ is in continuous dialogue with stakeholders and networks from the political sphere and civil society in order to share lessons learned and benefit from fresh input on sustainability topics (see 2-28).
To identify our key reporting topics, GIZ conducted its first stakeholder dialogue in accordance with the requirements of the Corporate Sustainability Reporting Directive in 2023 and, based on this, the European Sustainability Reporting Standards (ESRS). These differentiate between two main groups of stakeholders: affected stakeholders and users of sustainability statements.
To involve affected stakeholders in stakeholder dialogue, a partner survey was conducted for the first time. Here, GIZ’s partners served as ‘representatives’ of directly affected individuals in GIZ’s project work. The purpose of the partner survey is to get to know the expectations of international stakeholders in GIZ’s country offices and incorporate them into the strategic further development of sustainability management. Further stakeholder groups are to be included in the next iterations of the materiality analysis in order to more comprehensively reflect the perspectives of affected individuals in project work.
In addition to affected stakeholders, the main participants were internal stakeholders and experts.
The results of the stakeholder dialogue are the key impacts, risks and opportunities that form the basis for our sustainability reporting in the Integrated Company Report. They also play an important role in the further development of our Sustainability Programme.
The material topics presented here – or the impacts, risk and opportunities (IROs) – were identified in a materiality analysis conducted in 2023 in preparation for the European Union’s Corporate Sustainability Reporting Directive (CSRD), which GIZ is expected to have to comply with as of the 2025 reporting year. This new legal framework imposes new requirements for the materiality analysis and for the inclusion of relevant stakeholder groups. The impacts, risks and opportunities defined in 2023 as being material form the basis for our sustainability reporting in the GIZ Integrated Company Report.
Overview of the materiality analysis process in accordance with the CSRD
The first step was to analyse the GIZ value chain and divide it into three areas: procurement, operations and project work. A longlist of potentially material sustainability issues was then compiled. Potentially material topics were identified based on the concept of double materiality. In this way, the possible impacts in the three areas of the value chain and the possible financial risks and opportunities for GIZ were identified. The basis was document-based research that was supplemented, validated and finally evaluated with the involvement of internal stakeholders. Furthermore, partners in selected GIZ offices outside Germany were included in the analysis in the form of a partner survey.
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List of material topics
The table below shows the material impacts and the material risks and opportunities for GIZ in the areas of procurement, operations and project work. As a provider of services for sustainable development, GIZ’s corporate purpose is to achieve positive results in project work. There are thus positive impacts for all of the topics considered in the CSRD-compliant materiality analysis, which is why they are not listed again here.
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Additional information about GRI, the German Sustainability Code and the Global Compact can be found here
Find out more about our environmental topics here:
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