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Aaron Magner <ul><li>UNSW Sustainability  </li></ul><ul><li>Sustainability + Carbon </li></ul><ul><li>People + profit + pl...
<ul><ul><li>Overview </li></ul></ul>Sustainability + Carbon <ul><ul><li>Carbon price impacts </li></ul></ul><ul><ul><li>Ma...
What Sustainability means for you <ul><ul><li>Sustainability  = the capacity to endure . </li></ul></ul>Environmental >  E...
The carbon price  <ul><ul><li>Carbon emissions data = financial data </li></ul></ul><ul><ul><li>Clean Energy Futures packa...
Carbon = NGER Reporting  <ul><ul><li>National Greenhouse and Energy Reporting Act (NGER) </li></ul></ul><ul><ul><li>Must s...
Carbon = voluntary reporting <ul><ul><li>Carbon + emissions data = financial data </li></ul></ul><ul><ul><li>Energy Auditi...
Role of the CFO <ul><ul><li>Sustainability + Carbon data has become </li></ul></ul><ul><ul><li>embedded in CFO’s tradition...
<ul><ul><li>Sustainability reporting not yet mandatory. </li></ul></ul>Why report if you don't have to? <ul><ul><li>Develo...
Sustainability Indexes <ul><ul><li>Sustainability Equity indexes </li></ul></ul><ul><ul><li>FTSE4Good </li></ul></ul><ul><...
Sustainability reporting frameworks <ul><li>International </li></ul><ul><li>The Global Reporting Initiative – GRI 3.1 </li...
Trends: Walmart + supply chain  <ul><ul><li>Suppliers must provide detailed sustainability data. </li></ul></ul><ul><ul><l...
Trends: Product responsibility  <ul><li>Product reporting </li></ul><ul><li>Ethical shopper guide 0- Choice </li></ul>
What you can do <ul><ul><li>Work with sustainability staff </li></ul></ul><ul><ul><li>Engage and connect sustainability da...
Thank you + Keep in touch <ul><li>Aaron Magner  </li></ul><ul><li>Director  </li></ul><ul><li>UNSW Sustainability  UNSW SY...
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The Chief Financial Officer + Sustainability + Carbon

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Presentation to CFO Symposium
Hilton Hotel, Sydney, 12 September 2011

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  • Internal and external reporting skills
  • Engage with stakeholders &gt; tell your story
  • Transcript of "The Chief Financial Officer + Sustainability + Carbon"

    1. 1. Aaron Magner <ul><li>UNSW Sustainability </li></ul><ul><li>Sustainability + Carbon </li></ul><ul><li>People + profit + planet </li></ul><ul><li>The role of the CFO </li></ul>CFO Symposium University of New South Wales
    2. 2. <ul><ul><li>Overview </li></ul></ul>Sustainability + Carbon <ul><ul><li>Carbon price impacts </li></ul></ul><ul><ul><li>Mandatory reporting: carbon + greenhouse emissions </li></ul></ul><ul><ul><li>Voluntary reporting: carbon + sustainability </li></ul></ul><ul><ul><li>Evolving role + responsibilities of CFO + corporate finance </li></ul></ul><ul><ul><li>Trends in sustainability reporting </li></ul></ul><ul><ul><li>Sustainability and carbon issues to address now. </li></ul></ul>
    3. 3. What Sustainability means for you <ul><ul><li>Sustainability = the capacity to endure . </li></ul></ul>Environmental > Energy—fuel, oil, alternative > Water > Carbon emissions > Waste reduction > Recycling > Reprocessing/re-use > Green cleaning > Agriculture/organic foods > Packaging > Product content > Biodiversity Economic > Accountability/transparency > Corporate governance > Stakeholder value > Economic performance > Financial objectives Social > Public policy and advocacy > Community investments > Working conditions > Health/nutrition > Diversity > Human rights > Socially responsible investing > Anticorruption and bribery > Safety > Fair Trade
    4. 4. The carbon price <ul><ul><li>Carbon emissions data = financial data </li></ul></ul><ul><ul><li>Clean Energy Futures package: </li></ul></ul><ul><ul><ul><li>Clean Energy Bill 2011 > sets up the carbon price. </li></ul></ul></ul><ul><ul><ul><li>Clean Energy Regulator Bill 2011 > sets up regulator. </li></ul></ul></ul><ul><ul><ul><li>Climate Change Authority Bill > advise government on carbon price mechanism. </li></ul></ul></ul><ul><ul><li>1 July 2012: $23 tonne CO2-e. </li></ul></ul><ul><ul><li>1 July 2015: Emission Trading Scheme </li></ul></ul><ul><ul><li>Directly applies to 500 facilities. </li></ul></ul><ul><ul><li>Pass through to consumers: indirect liability. </li></ul></ul>
    5. 5. Carbon = NGER Reporting <ul><ul><li>National Greenhouse and Energy Reporting Act (NGER) </li></ul></ul><ul><ul><li>Must submit by 31 October for year end 30 June: </li></ul></ul><ul><ul><ul><li>Energy consumed + energy produced </li></ul></ul></ul><ul><ul><ul><li>Based on invoices for electricity, gas, fossil fuels. </li></ul></ul></ul><ul><ul><ul><li>Calculate emissions for each ‘facility’ and each type of greenhouse gas for each facility expressed as CO2-e. </li></ul></ul></ul><ul><ul><ul><li>Department of Climate Change and Energy Efficiency audits + fines. </li></ul></ul></ul><ul><ul><li>NGER methodology underpins: </li></ul></ul><ul><ul><ul><li>Carbon tax and Emission Trading Scheme </li></ul></ul></ul><ul><ul><ul><li>Government National Greenhouse Inventory. </li></ul></ul></ul><ul><ul><ul><li>National Carbon Offset Standard. </li></ul></ul></ul>
    6. 6. Carbon = voluntary reporting <ul><ul><li>Carbon + emissions data = financial data </li></ul></ul><ul><ul><li>Energy Auditing and Management </li></ul></ul><ul><ul><li>Carbon tax liability assessment </li></ul></ul><ul><ul><li>Emissions Management Plan </li></ul></ul><ul><ul><li>Life Cycle Assessment </li></ul></ul><ul><ul><li>Carbon Neutral Certification for Company </li></ul></ul><ul><ul><li>or Product/Service </li></ul></ul><ul><ul><li>The Carbon Disclosure Project </li></ul></ul><ul><ul><li>Data visualization, smart grid, energy efficiency opportunities. </li></ul></ul>
    7. 7. Role of the CFO <ul><ul><li>Sustainability + Carbon data has become </li></ul></ul><ul><ul><li>embedded in CFO’s traditional areas of focus. </li></ul></ul><ul><ul><li>Access to evidence </li></ul></ul><ul><ul><li>Data collection processes </li></ul></ul><ul><ul><li>Strong analytical skills </li></ul></ul><ul><ul><li>Reporting skills </li></ul></ul><ul><ul><li>Reporting culture </li></ul></ul><ul><ul><li>Consistency of approach </li></ul></ul><ul><ul><li>Internal audit function </li></ul></ul><ul><ul><li>External audit relationships. </li></ul></ul>
    8. 8. <ul><ul><li>Sustainability reporting not yet mandatory. </li></ul></ul>Why report if you don't have to? <ul><ul><li>Develop administrative capacity. </li></ul></ul><ul><ul><li>To drive value creation </li></ul></ul><ul><ul><li>Quality of management insight </li></ul></ul><ul><ul><li>Demonstration of value creation to stakeholders </li></ul></ul><ul><ul><li>Risk management incl. supply chain risks </li></ul></ul><ul><ul><li>Investor + customer demand </li></ul></ul><ul><ul><li>Competitor pressure </li></ul></ul><ul><ul><li>Request from stakeholders </li></ul></ul><ul><ul><li>To prepare for future mandatory reporting. </li></ul></ul>
    9. 9. Sustainability Indexes <ul><ul><li>Sustainability Equity indexes </li></ul></ul><ul><ul><li>FTSE4Good </li></ul></ul><ul><ul><li>Dow Jones Sustainability Index </li></ul></ul><ul><ul><li>RepuTex </li></ul></ul><ul><li>Credit rating agencies + investment brokers </li></ul><ul><ul><li>Moodies + Standard and Poor's </li></ul></ul><ul><ul><li>Thomson Reuters + Mercers </li></ul></ul><ul><ul><li>Socially Responsible Investment (SRI) </li></ul></ul><ul><ul><li>Environment, Social and Governance (ESG). </li></ul></ul>
    10. 10. Sustainability reporting frameworks <ul><li>International </li></ul><ul><li>The Global Reporting Initiative – GRI 3.1 </li></ul><ul><li>The UN Global Compact </li></ul><ul><li>AA1000 Series </li></ul><ul><li>Social Accountability 8000.  </li></ul><ul><ul><li>Australian </li></ul></ul><ul><ul><li>GRI followed by 90% of sustainability reporters </li></ul></ul><ul><ul><li>National Carbon Offset Standard </li></ul></ul><ul><ul><li>AUASB to issue ASAE 3410 Greenhouse Gas Statement. </li></ul></ul>
    11. 11. Trends: Walmart + supply chain <ul><ul><li>Suppliers must provide detailed sustainability data. </li></ul></ul><ul><ul><li>Category of questions: </li></ul></ul><ul><ul><ul><li>Energy & Climate </li></ul></ul></ul><ul><ul><ul><li>Material Efficiency </li></ul></ul></ul><ul><ul><ul><li>Nature and Resources </li></ul></ul></ul><ul><ul><ul><li>People & Community. </li></ul></ul></ul>
    12. 12. Trends: Product responsibility <ul><li>Product reporting </li></ul><ul><li>Ethical shopper guide 0- Choice </li></ul>
    13. 13. What you can do <ul><ul><li>Work with sustainability staff </li></ul></ul><ul><ul><li>Engage and connect sustainability data holders. </li></ul></ul><ul><ul><li>Develop sustainability performance metrics </li></ul></ul><ul><ul><li>Training staff in carbon accounting and sustainability reporting </li></ul></ul><ul><ul><li>Communicate a sustainability vision & mission </li></ul></ul><ul><ul><li>Establish a sustainability management committee for governance </li></ul></ul><ul><ul><li>Establish business rules and policies and procedures. </li></ul></ul><ul><ul><li>Consider carbon management and sustainability reporting software. </li></ul></ul><ul><ul><li>Consider third party audit and assurance. </li></ul></ul>Actions for CFO’s to take to enhance corporate value through sustainability
    14. 14. Thank you + Keep in touch <ul><li>Aaron Magner </li></ul><ul><li>Director </li></ul><ul><li>UNSW Sustainability UNSW SYDNEY NSW 2052 www.unsw.edu.au/sustainability </li></ul><ul><li>LinkedIn linkedin.com/in/aaronmagner Twitter @aaronmagner Slideshare slideshare.net/aaronmagner </li></ul><ul><li>Facebook facebook.com/SustainUNSW </li></ul>
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