From Good to Great in Sustainability Reporting. NewLeef Conference 2013

Transcription

1 From Good to Great in Sustainability Reporting NewLeef Conference 2013 October 11, 2013

2 Annual Reports 6300e # reports # GRI reports Source : CorporateRegister.com Ltd, GRI - Last updated: March 16 th, 2012 for CR November 29 th, 2012 for GRI 1 Deloitte s.e.n.c.r.l. et ses sociétés affiliées

3 We are moving from an era of push reporting, where companies decide what the outside world needs to know to an era of pull reporting where stakeholders and report users draw on companies to understand performance and expectations. This pull era will be profoundly different, and a pose an interesting challenge to companies. John Elkington, 2011

4 Strategic focus Public relations exercise Strategic imperative Transparency More, the better Material issues Performance Historical reporting Reporting on goals, objectives and performance Company vs. Value chain Enterprise operational impact Value chain impacts Internal vs. External focus Internal operations, cost and risk reduction Integrated focus, value protection and creation Management approach Siloed management issue with dedicated team Sustainability embedded across the organization 3 Deloitte s.e.n.c.r.l. et ses sociétés affiliées

5 4 Deloitte s.e.n.c.r.l. et ses sociétés affiliées

6 5 Deloitte LLP and affiliated entities.

7 GRI G4..It s all about Materiality 1 Core versus comprehensive Materiality 2 Upstream & downstream value chain 3 Disclosure on Management Approach 6

8 Identify issues Determine level of significance of issues Embed process in internal decision making and external review Materiality is like packing a backpack for a hike: you can only bring the supplies that are absolutely critical, otherwise the weight will slow you down and eventually bring you to your knees. Gary Niekerk Director, Global Citizenship Intel Corporation

9 Importance to stakeholders Significance to company s stakeholders and society/public exposure and awareness Material Issues to report Importance to company Significance to company s business model and performance 8 Deloitte LLP and affiliated entities.

10 Future orientation Link to value creation One organizational business model

11 Corporate performance should be evaluated and reported in the context of its impact on various capitals 10 Deloitte LLP and affiliated entities.

12 Roadmap towards Integrated Reporting 1. Strategic focus Organizational overview and operating context Assess and evaluate current business practice Respond to stakeholders Report and communication Identify trends, risks and opportunities Perform scenario planning Strategic focus 2. KPI framework Benefit from opportunities and mitigate risks Assign accountability and ownership Determine effect on capitals in the value chain Translate into actionable KPIs Align strategy and strategic targets Systems and processes KPI framework 3. Systems and processes Connect reporting systems and enable people Integrate in existing reporting & system structure Perform data analytics Develop an integrated dashboard Align culture, governance and company policies 4. Report and communication Tell a concise and reliable value creation story Monitor progress on strategy and performance Collect reliable data Prepare Integrated Report Accelerated Reporting Obtain assurance 11 Deloitte LLP and affiliated entities.

13 Do you recognize this story? Species Fur Age Size Bear Brown 11 years Large Bear Tawny 10 years Medium Bear Red-Brown 2 years Small 12 Deloitte LLP and affiliated entities.

14 Adding information does it improve the story? 13 Deloitte LLP and affiliated entities.

15 We say something makes sense when we can tell a plausible story about it Selected data? Selected data? When there is no single, shared story we each construct our own

16 Selected data?

17 An effective sustainability report. 2 1 The Journey Evidence and Milestones Story format should be built around questions Where have we been? Where are we going? Where are we now? Why? Qualitative and quantitative Pictures of Success (and Challenges) What are indicators of success? Road map: what leads to what? What s the rest of the story? 3 Moving Forward Forward looking setting of expectations and commitments What are the major barriers? What action(s) will be taken? What progress can be expected? When? is the same as an effective conversation

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