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United Nations Global Compact : Global Compact Local Networks Enter New Era with Strengthened Governance

January 11, 2015 at 11:48 am EST

(New York, 6 January 2015) - Global Compact Local Networks have adopted a more robust Memorandum of Understanding (MoU) that sets forth requirements for networks on governance and accountability measures. Agreed at the XII Annual Local Networks Forum and effective 1 January 2015, the new MoU places increased focus on management conditions to help strengthen network governance and enhance capacity building in an effort to connect local priorities with the global corporate sustainability agenda.

The new MoU lays out the minimum requirements of Global Compact Local Networks, from maintaining a transparent governance structure and hosting activities on substantive issues advanced by the Global Compact to supporting participants in their annual reporting requirement (COP and COE) and disclosure of financial resources. Annual reconfirmation is based on the understanding that Local Networks will continue to engage in activities that are consistent with the purpose and objectives of the Global Compact.

With the new MoU in place, the total number of operational Global Compact Local Networks stands at 86. Sixteen networks that had been inactive for over a year, with no activities reported, have been removed from the list of Local Networks. Participants from countries without an active Local Network will continue to receive support from the Global Compact Office, with the goal of establishing closer collaboration with participants and ultimately reviving the country networks.

Local Networks serve an essential role in rooting the Global Compact within different national contexts - and their distinct economic, cultural and linguistic needs. Participation in Local Networks enables companies to engage with a variety of stakeholders, including other businesses and representatives from civil society, government, academia, business associations and investors. All Local Networks provide a base for jump-starting business action and awareness on the ground, and are essential in helping to scale up and expand the Global Compact's reach.