Sustainability Reporting Trends

Transcription

1 Sustainability Reporting Trends Game Changing Developments October 2012 Mike Wallace Director, Focal Point USA Global Reporting Venue, Date

2 What you should know about sustainability reporting?

3 Range of Terminology CSR - Corporate Social Responsibility CC - Corporate Citizenship SD - Sustainable Development ES - Environmental Sustainability BE - Business Ethics CE - Corporate Ethics CG - Corporate Governance ESG - Environmental, Social & Governance IR - Integrated Reporting Non-Financial Reporting

4 GRI s Vision & Mission Vision A sustainable global economy where organizations manage their economic, environmental, social and governance performance and impacts responsibly and report transparently. Mission To make sustainability reporting standard practice by providing guidance and support to organizations.

5 GRI: Global Network Organiza9on *Business Academia *Media9ng ins9tu9ons *Civil Society Governments *Labor *Financial markets

6 The GRI Guidelines Environmental EN 3 - Direct energy consumption by primary energy source Labor LA 7 - Rates of injury, occupational diseases, lost days and absenteeism, and number of work related fatalities by region. Human Rights HR 4 - Total number of incidents of discrimination and actions taken Product Responsibility PR 6 - Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, ad sponsorship. Economic EC 4 Significant financial assistance received from government.

7 Why would anyone want to voluntarily report? - Increasing Stakeholder Interest - Financial Market Activity - Customer Interests - Regulatory Developments -Demonstrating Leadership - Document ROI

8 Increasing Stakeholders and Demand Modern Due Diligence

9 Financial Market Activity

10 Shareholder Initiatives & Coalitions Principles for Responsible Investment (PRI) [2006] Currently represents over $30 Trillion in investment capital signatories Investor Network on Climate Risk (INCR) [2003] Currently represents over $10 Trillion in investment capital 100+ members Carbon Disclosure Project (CDP) [2002] Currently represents over $71 Trillion in investment capital act on behalf of 550+ ins9tu9onal investors Ins=tu=onal Investors Group on Climate Change (IIGCC) [2001] Currently represents $6 Trillion in investment capital 70 members Interfaith Center on Corporate Responsibility (ICCR) [1972] Currently represents over $100 Billion 300 members

11 Who else is looking?

12 Stock Exchange Activity May 2010 January 2011

13 Market Evolution 300,000+ data terminals globally 5,000+ companies and climbing Sustainability Aspects Emissions Energy Consumption Human Rights Policies Board Make-Up Built around GRI

14 Bloomberg ESG Peer Comparison

15 Customer Interests

16 Supply Chain Developments Sept 2011 GSA Oct 2011 MS Jan Apple

17 Regulatory Developments

18 Regulatory Developments "More governments are making sustainability reporting mandatory. 142 regulatory instruments addressing sustainability reporting exist in over 30 countries 65% are classified as mandatory, the rest voluntary United States WH CEQ - EO USPS, US Army, GSA, etc. SEC Dodd-Frank CA Transparency on Trafficking & Slavery

19 Demonstrating Leadership

20 Corporate Sustainability: A Progress Report October 2011 Reviewed 3400 companies represen9ng the na9onal leaders from 34 countries around the world, including the 250 largest global companies Ninety- five percent of the 250 largest companies in the world (G250 companies) now report on their corporate responsibility (CR) ac9vi9es, two- thirds of non- reporters are based in the US. CR repor9ng has gained ground within the Top 100 companies in each of the 34 countries surveyed. The total number of repor9ng N100 companies increased by 11 percentage points, to 64 percent in Eighty percent of G250 and 69 percent of N100 companies are now aligning to GRI repor9ng standards.

21 US Repor=ng Trends (Absolute figures) Sustainability Reports in the USA US GRI data partner GRI G3 + G3.1 GRI reference Non- GRI sustainability report 46% growth in absolute number of GRI reports (w/ index) And counting!!

22 GRI Sector Leaders: American GRI reporters

23 Document ROI

24 Performance Recognition GRI Reporters Presence: 95% of the Dow Jones Sustainability Index 78% of the FTSE4Good 70% of the Global % of the NASDAQ OMX CRD Sustainability Index

25 Performance Over Time MSCI World & GRI 2002 to 2012 S&P 500 & GRI 2001 to 2011

26 Where are we heading?

27 Data Integrity 100% 90% 80% 70% % % 40% Not assured Externally assured 30% 20% 10% 0% Africa Asia Europe La9n America Northern America Oceania * Data from the Sustainability Disclosure Database as of 12 April 2012

28 + reports More than 70% of the G250 and 64 percent of N100 engage major accountancy firms. Reinforce credibility among stakeholders Improve quality of reported informa=on Improve repor=ng processes Primarily responding to legal requirements Drive performance 0% 5% 10% 15% 20% 25% 30% 35% Source: KPMG International Survey of Corporate Responsibility Reporting 2011

29 Growing Interna=onal Trends Integrated Repor=ng % 21% Not integrated Integrated 87% 79% *Sustainability Disclosure Database data from 1 February 2012

30 Thank you Mike Wallace Director, Focal Point USA Global Reporting Initiative Twitter: M_A_Wallace Linked In: Venue, Date