“Corporate Strategy and Reporting in a Global Economy: the Board’s Converging Roles.”

Clyde Wilcox, Georgetown University “Disclosure by itself is not the solution to any problem. It’s a path to earn trust. But just saying things is notenough, unless you also do something.” How is your board using information available to them to make the best decisions?

NONFINANCIAL METRICS CATEGORIES • Business Development • Community Engagement/Corporate Social Responsibility • Competition/Market Share • Corporate Culture1. Understand and • Customer Satisfactionagree on the • Environment, Health, and Safetycompany’s key • Ethicsperformance • Executive Talent Management/Successionmetrics. • Human Capital • Innovation/Innovative CultureThese key metrics, • Legal/Regulatory Complianceset for both the • Logistic Capabilitiesenterprise as a whole • M&A Execution and Integrationand for major • Operationsbusiness units, should • Product Qualitybe used to track • Reputationprogress against the • Risk Managementcompany’s strategy. • Tone at the Top

“Corporate Strategy andReporting in a Global Economy:The Board’s Converging Roles"

NACD’s 2011 Public Governance SurveyThe top 5 priorities for the board include: Strategic planning and oversight 72.1% Corporate Performance & 40.6% Valuation Risk and Crisis Oversight 27.1% Executive Talent Management & 25.8% Leadership Development CEO Succession 25%

2012 World Economic Forum : • Increased understanding of the risksand opportunities in current and emerging strategy

The World Has Changedhttp://theiirc.org/wp-content/uploads/2011/09/IR-Discussion-Paper-2011_spreads.pdf

Sustainability - ne Definition “meeting the needs of the present without compromisingthe ability of future generations to meet their own needs” 1987 Brundtland Report

Tipping Points: NACD and Governance1990: Institutional investor ownership ofshares hits 53.3 percent mark.“At NACD, we champion theinclusion of nonfinancialmetrics in performancemeasurement” Alex Lajoux

Thank youFay FeeneyCEORisk for Goodfay@riskforgood.com+1 310 372 0591Twitter: @fayfeeneyWeb: www.riskforgood.com

Corporate Strategy and Reporting in the Global Economy: The Board’s Converging Role NACD Southern California January 2012Venue, Date

What are we seeing?

Shareholder Initiatives & Coalitions• Principles for Responsible Investment (PRI) [2006] – Currently represents over $30 Trillion in investment capital – 900+ 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+ institutional investors• Institutional 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

Signatories to the PRI (US) 900+ international signatoriesPARTIAL LIST OF ASSET OWNERS (200):• AFL-CIO Reserve Fund / AFL-CIO Staff Retirement Plan• CalPERS / CalSTRS• Connecticut Retirement Plans and Trust Funds (CRPTF)• General Board of Pension and Health Benefits United Methodist Church• Illinois State Board of Investments• Los Angeles County Employees Retirement Association (LACERA)• Maryland State Retirement and Pension System• New York City Employees Retirement System / New York State Local Retirement S• SEIU Pension Plans Master Trust• State Universities Retirement System of Illinois• Teachers Retirement System of the City of New York• Universal Health Care Foundation of Connecticut

Signatories to the PRI (US) 900+ international signatoriesPARTIAL LIST OF INVESTMENT MANAGERS:• BlackRock • Boston Trust• Calvert Investments • Capital Group International• CBRE Investors • Clear Bridge Advisors• Domini Social Investments • MFS Investment Management• JPMorgan Asset Management • Principal Global Investors• Kohlberg Kravis Roberts & Co, LLP • T. Rowe Price• Krull & Company • Tower Capital Asset• Northern Trust Global Investments Management LP• Prudential Real Estate Investors• Russell Investments• TD Asset Management Inc.• The Townsend Group• TIAA - CREF

Mainstream Involvement

How does GRI help?

GRI’s Vision & MissionVisionA sustainable global economy where organizationsmanage their economic, environmental, social andgovernance performance and impacts responsiblyand report transparently.MissionTo make sustainability reporting standard practice byproviding guidance and support to organizations.

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.

Who are these Reporters?

Thank you Mike Wallace Director, Focal Point USA Global Reporting Initiative wallace@globalreporting.org +1 212 339 0356 Twitter: M_A_Wallace Linked In: http://www.linkedin.com/in/mikewallaceVenue, Date

Peer to PeerWhat are the top three challengesthe boardroom is facing relative to sustainability strategy and reporting?

Peer to PeerSelect the top challenge and using GRI’s criteria what can the board do to use this non-financial reporting to differentiate their business strategy?

Peer to PeerWhat are your recommendations to the boardroom to oversee this fast moving non-financial reporting for strategic advantage?

“Corporate Strategy and Reporting in a Global Economy: the Board’s Converging Roles.”

by FayFeeney on Feb 06, 2012

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“Corporate Strategy and Reporting in a Global Economy: the Board’s Converging Roles.” — Presentation Transcript

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