GRI Airport Sector Supplement
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1 GRI Airport Sector Supplement September 24, IATA Eagle Award winner
2 A Note on Sustainability
3 Global Reporting Guidelines are Guidelines for Reporting on Sustainability
4 Overview of GRI organization International multi-stakeholder network based organization Collaborating centre of the UNEP Developed the world s most widely used framework for sustainability reporting (over 1600 companies to date) Over 3000 stakeholders took part in its development Vision: reporting on economic, environmental and social performance by all organizations is as routine and comparable as financial reporting.
5 Overview What is sustainability reporting? What are some of the motivations for entities to report? What might drive airports to report? What frameworks are out there for reporting? Overview of GRI organization Explain levels of reporting and verification options Overview of AOSS development process
6 G3 Guidelines A global framework for reporting on sustainability performance Can be used by organizations of any size, sector or location Developed using an international, multi-stakeholder consensus based approach Benefits: Credibility Consistency and Comparability * 67% of the global fortune 500 published reports in 2007
7 Survey of 230 Environment Health and Safety Programs Best-in-Class: - Top 20% 87% Overall Equipment Effectiveness 1% Repeat Accident Rate 0.1 Injury Frequency Rate 10% Reduction in Energy Consumption Industry Average: - Middle 50% 80% Overall Equipment Effectiveness 2% Repeat Accident Rate 0.2 Injury Frequency Rate 4% Reduction in Energy Consumption Laggard: - Bottom 30% 72% Overall Equipment Effectiveness 11% Repeat Accident Rate 1.3 Injury Frequency Rate 0.5% Increase in Energy Consumption Difference between Top and Bottom Performer Source: Aberdeen Group, April 2010
8 Measuring and managing sustainability...you can t manage what you can t measure what matters gets measured, what gets measured matters Companies that either borrow money or issue shares must now produce a financial report
9 G3 Guidelines - Specifics Guidelines content Introduction Profile Disclosures Disclosures on Management Approach Performance Indicators Indicator Protocols
10 Global Reporting Initiative - Performance Indicators G3 Economic Category 9 Aspects 29 Indicators Environmental Category 3 Aspects 9 Indicators Performance Indicators Labor 5 Aspects 14 Indicators Social Category Human Rights 5 Aspects 8 Indicators Society 5 Aspects 9 Indicators Product Responsibility 7 Aspects 9 Indicators 34 78
11 Defining Sustainability Language Comes with Baggage! Three types of management: 1. Immoral not in conformity with accepted principles of right and wrong behavior - wicked 2. Amoral 3. Moral unaware of or indifferent to questions of right or wrong. Neither moral nor immoral. founded on the fundamental principles of right conduct rather than on legalities, or custom: Most issues are not economic or environmental but fundamentally moral conversely there are no social problems that don t have environmental roots
12 Concept of Sustainable Development Timeline 1970 Milton Freedman said there is only one social responsibility of business to use its resources and engage in activities to increase its profits so long as it stays within the rules of the game 1972 UN conference on Human Environment 1987 Bruntland Commission Report Our Common Future There are limitations on the environment if we are to meet future needs ( the environment has value!) Bee pollination = $4 billion/yr) 1992 Earth Summit Rio concept of sustainability
13 Concept of Sustainability Reporting 1997 Boston based CERES starts GRI, 1999 collaborating centre of UN, 2000 first GRI guidelines 6 Core areas (Economic, environment and social [labour, human rights, society and product responsibility]) 2000 UN Global Compact on human rights, labour standards, the environment and anti-corruption. 10 universally accepted principals 4 Categories Stern Report Climate Change is real ($2.3T) 2010 Draft ISO Guidance on Social Responsibility 7 Core Subjects (governance, human rights, labour practices, environment, fair operating practices, consumer issues and community involvement and development)
14 Some of the motivations for entities to report It takes 20 years to build a reputation and 5 minutes to ruin it 2002 Sarbanes Oxley France and Sweden required to combine reports GB/Group/Finance/Publications/AnnualReports/ The auditors are coming!
15 Overview of GRI organization International multi-stakeholder network based organization Collaborating centre of the UNEP Developed the world s most widely used framework for sustainability reporting (over 1600 companies to date) Over 3000 stakeholders took part in its development Vision: reporting on economic, environmental and social performance by all organizations is as routine and comparable as financial reporting.
16 Global Reporting Initiative - Timeline The Boston-based non-profit CERES started a Global Reporting Initiative 1999 Official collaborating centre of UNEP 2000 GRI s first Sustainability Reporting Guidelines released 2001 GRI as independent institution based in Amsterdam 2006 UNEP review The launch of the G3 Guidelines Sector supplements started
17 What frameworks are out there for reporting? Companies that either borrow money or issue shares must produce a financial report GAAP - financial International Financial Reporting Standards Draft ISO Guidance on Social Responsibility 7 Core Subjects - CBSR AA1000 process guide how you report, how you present (assurance guide - audit protocol POW A4S working with GRI XBRL Data Standard for Reporting
18 Why do companies report on sustainability?
19 Sector Supplement on airports - Working Group
20 Current sustainability reporting practice: airports Region Airports GRI Airport Non GRI Europe Asia Paris, Amsterdam, Athens, Frankfurt Bologna, Birmingham, Copenhagen, Prague, London City, Zurich Hong Kong, Narita Oceania Auckland, Sydney North America Toronto San Francisco Vancouver
21 Sustainability Reporting Sample Title Charles Darwin: It s not the strongest of the species that survives or the most intelligent but the one most responsive to change
22 Sector Supplement within the G3 Structure Content Strategy and Analysis Quality Organizational Profile Principles Standard Dislcosures Boundary Profile Report parameters Governance, Commitments and Engagements Disclosure on Management Approach and Performance Indicators Economic Environmental Social
23 Global Reporting Initiative - Application Levels Different application levels: A, B, C A for advanced reporters C for first time reporters Incremental approach A+, B+, C+ levels indicating external assurance Application level is not a performance level
24 Sector Supplement on airports - development Airport Operator Sector Supplement (AOSS)
25 Overview of AOSS development process 10 Airports - 10 Subject Experts 5 International Meetings 2 Public Comment Periods Cash Money
26 Why develop a Sector Supplement? The best way to predict the future is to create it. High levels of expectation from stakeholders in the sector Interest in sustainability reporting from the sector Sector specific themes not sufficiently covered in the G3 Guidelines Interest from the sector in creation of sector specific reporting guidance Potential to increase reporting in sector and reduce sustainability impact Saving the World is not on the list
27 Sustainability Issues covered by the Sector Supplement: Economic: Direct and indirect economic benefits of local communities e.g. driving local businesses by increasing connectivity and boosting trade and tourism; and Providers of public-service transportation links. Environment: Emissions related to transport of ground transportation of passengers, staff, visitors and suppliers; Noise measurement and monitoring system; Waste management (disposal of confiscated materials, de-icing effluent and airline and service provider waste); and Storm water management and irrigation.
28 Sustainability Issues covered by the Sector Supplement: Social: Staff exposure to aircraft noise; Airborne pollutions and contagious pandemic diseases; Human trafficking; Discriminatory practices in security-screening processes; and Involuntary resettlement of local communities. Product Responsibility Wildlife strikes and safety; and Business continuity and emergency preparedness.
29 GRI Public Comment Period Comment on the Final Draft of the Sector Supplement Online Survey available in English at DHHTF97 Closing Date: 10 November 2010 Working Group to review survey s feedback and finalize the Sector Supplement Launch of the GRI Airport Operator Sector Supplement: Mid 2011
30 Any questions?
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