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CFO barometer sustainability & integrated reporting
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CFO barometer sustainability & integrated reporting

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Slides presented during CFO Barometer session with Belgian CFO's about the CFO's role in sustainability and integrated reporting

Slides presented during CFO Barometer session with Belgian CFO's about the CFO's role in sustainability and integrated reporting

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    CFO barometer sustainability & integrated reporting CFO barometer sustainability & integrated reporting Presentation Transcript

    • CFO Barometer 2012:De rol van de CFO in Sustainability CFO Magazine en Ernst & Young 24 september 2012
    • “Over duurzaamheid en de rol van de CFO” door Harry Everaerts, Bedrijfsrevisor en Partner Sustainability & Cleantech Services Ernst & YoungVertrouwelijk – alle rechten voorbehouden – Ernst & Young
    • The triple bottom lineToday’s stakeholders (including shareholders) expect you to meetstandards on social, environmental and economic performance Vertrouwelijk – alle rechten voorbehouden – Ernst & Young 2
    • Rol van de CFO in het Nieuw Maatschappelijk relevant bedrijfsmodel Vijf acties die een CFO kan nemen om in te spelen op het groeiend belang van niet- financiële informatie in organisaties: 1. Actief een sustainability programma en rapportering stimuleren 2. Verzekeren dat het sustainability team niet geïsoleerd werkt 3. Ga transparante dialoog aan met de stakeholders 4. Maak top management bewust van de business case 5. Overweeg niet-financiële performance indicatoren in beloningssytemen van management •Het (meetbare) duurzaamheidsverhaal vertellen: met Investor Relations en rating agentschappen werken • ‘Show them the money’: transparant externe rapportering en verificatie brengt vertrouwen aan interne en externe stakeholders • Green management: operationeel ‘controllership’ and financieel risicobeheer betekent CO2- en gegevensbeheerVertrouwelijk – alle rechten voorbehouden – Ernst & Young 3
    • Examples Altron The Value-added StatementNovo Nordisk 2012Best Integrated Report Vertrouwelijk – alle rechten voorbehouden – Ernst & Young Proposal title 4
    • “Integrated Reporting: wat, waarom en wat betekent het voor de CFO?” door Nancy Kamp-Roelands, Expert Integrated Reporting & Assurance, Executive Director Sustainability & Cleantech Services Ernst & Young NederlandVertrouwelijk – alle rechten voorbehouden – Ernst & Young
    • Four drivers of global change, impacting behaviour of manyorganizationGrowing world population Scarcity of natural resources sodium carbonate ∞ aluminium 161 coal 148 phosphate 75 iron ore 64 gas 61 copper 44 oil 43 antimony* 30 silver* 29 indium* 13 Emissions and Climate change New rising middle class, aging population, urbanization, diversity, and globalizationVertrouwelijk – alle rechten voorbehouden – Ernst & Young
    • The importance of the intangibles in establishing market valueComponents of S&P 500 Market ValueSource: Ocean Times.DefinitionIntangible assets are non-monetary and non-physical but nonetheless have the potential to create value for anorganization. Vertrouwelijk – alle rechten voorbehouden – Ernst & Young
    • Sustainability is a strong driver for business value creation PromotePhilips earns 38% of total GE’s brand value increased revenue from „green Long- term by 17% after the launch of product‟ sales (up from Revenue „Ecomagination‟, a business value initiative to meet customer 31% in 2009). generation demand for more creation energy-efficient products Material value Intangible AB InBev strives to be the “best beer company in abetter world”, which means One of the three drivers of protecting and preserving Risk Rosy Blue‟s strategy is to Cost control manage risks (Legal, Preventthe environment, promoting responsible drinking and Management Operational, Reputational, making a difference in the Protect company‟s brand.) communities where we live and work. KPIs can be used to measure sustainability performance against sustainability goal setting Vertrouwelijk – alle rechten voorbehouden – Ernst & Young
    • Example of successful value chain collaborationYARA – Biopark Terneuzen Fertilizer producer YARA delivers their waste heat and CO2 emissions to horiculte business of Biopark Terneuzen. The Horticulturers use these waste products to heat their greenhouses. The plants use the CO2 to grow. To facilitate this collaboration the partners have set up the energycompany WarmCO2. The energy company is used to deliver the waste heat and CO2 to the horticulturers across a several kilometers long pipenetwork. Yearly more than 1633 TeraJoules (TJ) sustainable heat energy is utilised in this manner. This heat is always available and almost independent of market energy prices. This matches the reuse of about 70.000 tons of CO2 that would otherwise be emmitted to the atmosphere as heat. Vertrouwelijk – alle rechten voorbehouden – Ernst & Young
    • Changes in external reporting: Integrated Reporting Mission Reach a consensus about IR Identify priority areas IIRC’s role Determine whether IR Develop a framework for IR standards should be voluntary or mandatory Discussion paper with Actions IR guidelines G20 proposal « Bring IR to 2nd Pilot program politics » (Test draft framework) Mid 2010 2015 IIRC creation 2011 2012 2013 Complete framework Development of IR Framework 1st Pilot program (First IR experiment)Vertrouwelijk – alle rechten voorbehouden – Ernst & Young
    • Value creation in different areas Vertrouwelijk – alle rechten voorbehouden – Ernst & Young 11
    • Sustainable Growth Business ModelThree basic stages Strategic sustainable Value to society value creation Risks & Opportunities Compliance Value to organization Vertrouwelijk – alle rechten voorbehouden – Ernst & Young
    • Integrated Thinking: From performance to impactUnilever Sustainable Living Plan Arial 24 punt r100 g100 b100 Arial 20 punt Arial 18 punt Arial 16 punt ► Arial 16 punt Vertrouwelijk – alle rechten voorbehouden – Ernst & Young
    • Differences with financial reporting Reporting Status Integrated Reporting Attribute Quo Model Key Differences Thinking Isolated Integrated Business decisions are not taken in isolation from company’s environmental, social & economic impacts; they are made within context of company’s short-, medium- and long-term business performance. Stewardship Financial capital All forms of capital The company reports on the contribution of all forms of capital (financial, manufactured, human, intellectual, natural and social) to its business performance and the inter-relationship between these capitals, as well as usage, risks and opportunities across the economic value chain. Focus Past, financial Past & future, connected, sustained value creation Company financial reports currently focus on past financial performance and rarely make meaningful connections with other business reports, such as sustainability or CSR. An Integrated Report addresses both past and future business performance, making connections with underlying sustainability impacts, and provides an opportunity to communicate a broader understanding of value (future, intangible and extended). Timeframe Short-term Short-, medium- and long- term Integrated Reporting focuses not only on short-term business performance (<1 year) but also on the medium- and long-term, so that the contribution of decisions and investments made by the business to long-term value creation can be assessed. Trust Narrow disclosure Greater transparency In contrast to the narrow financial disclosure of the Annual Report, an Integrated Report communicates a broader explanation of how a company creates value, set within the context of the company’s business model and the company’s net impact on the environment, society and economy.Vertrouwelijk – alle rechten voorbehouden – Ernst & Young
    • “Presentatie van de resultaten van de CFO Barometer rond duurzaamheid” door Harry Everaerts, Bedrijfsrevisor en Partner Sustainability & Cleantech Services Ernst & YoungVertrouwelijk – alle rechten voorbehouden – Ernst & Young
    • CFO Barometer rond SustainabilityInleiding  Onafhankelijk onderzoek van de redactie van CFO Magazine in samenwerking met Ernst & Young.  Eén actueel CFO-topic per maand  Bevraging van 200 Belgische CFO’s van middelgrote tot grote multinationale ondernemingen.  De focus van de CFO Barometer is lokaal: representatief voor België, benchmarktool.  De resultaten worden in de extra CFO Barometer katern weergegeven en becommentarieerd door specialisten of geïllustreerd met praktijkervaringen.Vertrouwelijk – alle rechten voorbehouden – Ernst & Young 16
    • CFO Barometer rond SustainabilityEnkele sleutelresultatenVertrouwelijk – alle rechten voorbehouden – Ernst & Young 17
    • CFO Barometer rond SustainabilityEnkele sleutelresultaten 26,1 % 47,8 % 26,1 %Vertrouwelijk – alle rechten voorbehouden – Ernst & Young 18
    • CFO Barometer rond SustainabilityEnkele sleutelresultaten 12,0 % 18,0 % 8,0 % 8,0 % 2,0 % 12,0 % 18,0 % 14,0 % 2,0 %Vertrouwelijk – alle rechten voorbehouden – Ernst & Young 19 6,0 %
    • CFO Barometer rond SustainabilityEnkele sleutelresultaten Duurzaamheidsrapportering wordt stilaan een vaste maatstaf: creatie van toegevoegde waarde is relevant in het huidig economisch model. Voorloping nog een groot onbenut potentieel: vandaag onvoldoende interesse door CFO’s, maar veel potentieel om als managementtool te gebruiken.  CFO’s gebruiken het vandaag al voor interne beslissingsname. Immers, rapporteren over duurzaamheid heeft te maken met strategische en verantwoorde lange termijn beleidsvoering. Rapporteringsprocessen en standaarden: duidelijk gebrek aan kennis van standaarden zoals de Global Reporting Initiative.Vertrouwelijk – alle rechten voorbehouden – Ernst & Young 20
    • Ernst & Young Harry EveraertsAssurance | Tax | Transactions | Advisory Tel.: +32 2 774 94 34 Email: harry.everaerts@be.ey.com 2012 Ernst & Young Transaction Advisory Services All rights reserved. About Ernst & YoungErnst & Young is a global leader in assurance, tax,transaction and advisory services. Worldwide, our 152,000 people are united by our shared values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities achieve their potential.Ernst & Young refers to the global organization of member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK companylimited by guarantee, does not provide services to clients. For more information about our organization, please visit www.ey.com/be. Follow us: twitter.com/EY_BelgiumVertrouwelijk – alle rechten voorbehouden – Ernst & Young