Understanding the United Nations Global Compact (UNGC)

A global framework for responsible business

The United Nations Global Compact (UNGC) is the world’s largest corporate sustainability initiative. Launched in 2000 by then-Secretary-General Kofi Annan, it encourages businesses to operate responsibly by aligning their strategies and activities with the United Nations Global Compact principles across human rights, labour, environment and anti-corruption.

Participation is voluntary, but it signals a public commitment to corporate sustainability. Today, more than 15,000 companies and over 3,000 non-business participants from over 160 countries have joined the United Nations Global Compact. The initiative supports broader UN goals such as the Sustainable Development Goals (SDGs) and provides a framework for learning, peer collaboration and transparent reporting.

The Ten Principles of the United Nations Global Compact

The Ten Principles of the United Nations Global Compact form the foundation for responsible business, and they are grouped into four key areas:

Human Rights

1. Support and respect the protection of internationally proclaimed human rights
2. Ensure not to be complicit in human rights abuses.

These principles encourage businesses to assess and manage human rights risks in operations and supply chains. This could include adopting due diligence processes, training staff and engaging suppliers to uphold ethical standards.

Labour

3. Uphold the freedom of association and the effective recognition of the right to collective bargaining
4.  Eliminate all forms of forced and compulsory labour
5. Abolish child labour
6. Eliminate discrimination in respect of employment and occupation

Labour principles focus on fair, safe and inclusive workplaces. This includes supporting unionisation, reviewing recruitment practices and embedding non-discrimination policies.

Environment

7. Support a precautionary approach to environmental challenges
8. Undertake initiatives to promote greater environmental responsibility
9. Encourage the development and diffusion of environmentally friendly technologies

These principles guide companies to reduce environmental impact, and actions might include setting emissions targets, investing in clean technology or improving resource efficiency.

Anti-Corruption

10. Work against corruption in all its forms, including extortion and bribery. This calls for strong internal controls, ethics policies, training and transparent reporting to ensure integrity across operations.

These principles serve as a foundation for responsible business and guide companies in embedding sustainability into their long-term strategies and day-to-day operations.

The five features of corporate sustainability

The United Nations Global Compact defines corporate sustainability through five features that help companies move from principle to practice.

• Principled business: Embedding the Ten Principles into strategy and operations
• Strengthening society: Contributing to the SDGs through community investment, supply chain improvements or inclusive hiring
• Leadership commitment: Ensuring sustainability is visible in governance, from board oversight to executive KPIs
• Reporting progress: Producing consistent and credible disclosures. Many companies align CoP reports with frameworks such as CSRD
• Local action: Collaborating with UNGC local networks on regional initiatives, supplier training or policy advocacy.

The Communication on Progress (CoP)

The CoP is the main accountability mechanism for participants. It shows how a company can integrate the United Nations Global Compact principles and advance the SDGs. While this is not formally scored, it is increasingly used by investors, rating agencies and NGOs to benchmark ESG performance and transparency.

Companies can either submit a structured digital questionnaire or a sustainability report, which both cover the same content, just in different formats. Both require a CEO Statement of Continued Support, which is a formal, public declaration signed by a company’s Chief Executive Officer (or equivalent) to show the company’s ongoing commitment at the highest level. The CoP ensures performance is measured, progress is visible, and comparisons can be made across industries.

Key deadlines for 2025

The 2025 reporting window for the Communication on Progress runs from 1 April to 31 July.

• Companies that do not submit their CoP by 31 July 2025 will be marked as non-communicating on the UNGC website.
• If a company still has not submitted by 31 December 2025, it will be delisted from the UNGC on 1 January 2026.

If your company joins the United Nations Global Compact in 2025, your first CoP will be due in the 2026 reporting cycle. Early planning is encouraged to ensure a smooth process and avoid last-minute issues.

Why UNGC reporting matters

CoP reporting provides a platform for companies to demonstrate credibility, consistency and leadership and offers more than just compliance. It helps benchmark performance, strengthen governance and build stakeholder trust and can also help companies prepare for frameworks such as CSRD, ISSB and mandatory supply chain due diligence.

Participation in the United Nations Global Compact brings more than reputational benefits; it can help:

Strengthen risk management

UNGC participation can help companies identify, assess, and proactively manage ESG risks from supply chain disruptions to reputational damage before they escalate.

Improve investor confidence

By aligning with the Ten Principles and transparently reporting progress, companies can appeal to ESG-conscious investors and demonstrate long-term resilience.

Stronger global partnerships

Being part of the UNGC opens doors to partnerships with other responsible businesses, NGOs, and institutions working toward shared goals.

Competitive advantage in procurement

More tenders and contracts, particularly from the public sector or large buyers, now require evidence of responsible business practices. UNGC participation can help satisfy these expectations.

How to prepare your CoP

The UNGC suggests following its Management Model: Commit, Assess, Define, Implement, Measure and Communicate. This helps embed the United Nations Global Compact principles in daily decisions while meeting reporting requirements.

Common challenges in CoP preparation include inconsistent data, coordination difficulties and underestimating the time needed. Starting early, assigning internal owners and setting realistic timelines can reduce these risks. Local UNGC networks in more than 85 countries offer workshops and guidance to support companies translating global principles into national action.

How Zevero can support you

Zevero combines sustainability experts with an all-in-one platform to support organisations across GHG measurement, decarbonisation and reporting. Our ESG reporting tool helps turn existing company documents and policies into draft answers for disclosures such as the CoP, saving weeks or months of time. We help ensure submissions are accurate, confident and aligned with the United Nations Global Compact principles, as well as frameworks like CDP, GRI and the SDGs.

Final thoughts

The United Nations Global Compact principles are a framework for action. In a world where expectations are rising, transparency is essential. The CoP gives companies a structure to show how they deliver on values, not just state them. With the 2025 deadline approaching, early preparation can turn reporting into a strategic advantage that builds trust, resilience and long-term impact.