GRI Launched of G4 in Canada - Toronto, June 12, 2013

1. Welcome to GRI’s
Official Canadian
#G4launch in Toronto
12 June, 2013
Toronto, 12 June 2013 – hosted by Toronto Stock Exchange
G4 Campaign Sponsor

2. 1:00 – 1.10 Opening – Mike Wallace, Director GRI Focal Point USA
1.10 – 2.10 Master Class II G4 Download – Sustainalytics
2.10 – 2.30 Interview with Suncor Energy; Q&A
2:30 – 2:45 Break
2:45 – 3:45 Panel Discussion with investors
3:45 – 4:45 Master Class III G4 Applied to Canadian context
4.45 – 6.00 Reception
Agenda

3. North American G4 Campaign
G4 Campaign Sponsors
Participating
Certified Training Partners & Sector Leaders:
• Boston College
• BrownFlynn
• Deloitte
• ERM
• ISOS Group
• Lead Canada w/Sustainalytics
• Bloomberg
• Clorox
• Curran & Connors
• Dell
• NYSE Euronext
• Sprint
• The Mosaic Company

4. Focus on what matters, where it matters

5. ​VISION
A sustainable global economy where organizations manage their
economic, environmental, social and governance performance
and impacts responsibly and report transparently.
MISSION
​To make sustainability reporting standard practice by providing
guidance and support to organizations
Vision & Mission of GRI

6. Meanwhile in Europe…
EC Proposal for EU
directive
All large companies in the
EU will have to disclose
information on (a) policies,
(b) risks and (c) results as
regards environmental
matters, social and
employee-related aspects,
respect for human rights,
anti-corruption and bribery
issues, and diversity on the
boards of directors.
16 April 2013

7. Key objectives GRI
More reporters!
Better transparency!
It’s not just about your report, it’s about
transparency creating real change.

8. Harmonization & alignment
International North American

9. Market uptake
And others…

10. Why G4?
GRI anticipates:
• continued strong growth in sustainability reporting
• increasing interest from report users for well-presented
and accessible information
• harmonization between reporting tools and systems
• the integration of financial and sustainability reporting

11. Starting points for G4
• G4 Objectives
o Be user-friendly for beginner and experienced reporters
o Improve technical quality, with clearer definitions
o Align with other international reporting references
(frameworks)
o Lead to reports that cover material topics
o Offer guidance on how to link sustainability and integrated
reporting, aligned with the IIRC
o Improve data access (XBRL)

12. G4 development timeline
Jan Feb Mar Apr May Jun Jul Aug Sep
2013
TAC
Final check
on G4
content
G4 launch
SC and TAC Concur.
BoD approval Roll-out Phase
SC and BoD -
final feedback
to G4
We are here
Focused
consultation
GRI technical and editorial improvements,
layout improvements, etc.

13. G4 Launch at the GRI Conference
• Over 1600 people, from over 80 countries
• Over 40 sessions, with close to 200
speakers

14. North American G4 Campaign
Pre-Conference
11 April – GRI @ NYSE, New York
2 May– GRI @ CERES, San Francisco
15 May – GRI @ webinar, online
G4 Local Launch
3 June – GRI @ Sustainable Brands ‘13, San Diego
6 June – GRI @ Sustainability Summit, Kansas City
10, 11 June – GRI @ Deloitte, Vancouver & Calgary
TODAY – GRI @ Toronto Stock Exchange, Toronto
19 June & 24 June – GRI @ webinar, online
Before… and after…

15. Find out more!
http://grifocalpointblog.org/usa

16. Master Class II:
G4 Download
Presented by GRI’s Certified Training Partner (in Canada):

17. About Sustainalytics
 Certified-GRI training: In collaboration
with Lead Canada, we provide the GRI-
certified 2-day training workshop
across Canada.
 Reporting best practices: Our global
team of sector-specific analysts read
and analyse thousands of sustainability
reports annually.
 Reporting Awards Judge: For the past
several years, Sustainalytics has
participated as a judge for the
sustainability category.
Sustainalytics is a global leader in sustainability
research and analysis.

18. Master Class II Agenda
18
 Overview of sustainability reporting
 The GRI’s 5-Step Reporting Process
1. Obtain an overview
2. Choose the preferred ‘in accordance’ option
3. Prepare to disclose general standard disclosures
4. Analyze materiality related to specific standard disclosures
5. Prepare the sustainability report
 Questions & Discussion

19. Overview of Sustainability Reporting

20.  Conveys disclosures on an organization’s
impacts – positive or negative – on the
environment, society, and the economy
 Sets in motion a process that helps
organizations to set goals, measure
performance, and manage change
 Sustainability reporting is driving improved
performance
Sustainability reporting

21.  The mainstreaming of responsible
investment is founded on the
recognition that ESG issues can be
material.
 Academic and sell-side research
strongly supports this view
 It is a view also supported by the CFA,
the SEC, McKinsey and Co., the
Harvard Business Review, and many of
the world’s largest institutional
investors
21
Sustainability is being Driven by
Competitive Investment Returns
http://funds.rbcgam.com/_assets-custom/pdf/RBC-GAM-does-SRI-hurt-investment-returns.pdf
http://www.hbs.edu/faculty/Publication%20Files/12-035.pdf
https://www.dbadvisors.com/content/_media/Sustainable_Investing_2012.pdf
http://dupress.com/articles/finding-the-value-in-environmental-social-and-governance-performance
http://www.generationim.com/sustainability/report/

22. 22
Sustainability is Being
Driven by Ratings/Rankings
Raters Examples:
Rankings and data
produced by SRI
information providers
Reputation indices
produced by NGOs/
Media/Research firms
Rankings Examples:
Indices Examples
Indices developed
by financial index
companies

23. Sustainability and Transparency is Driven by
the Need to Build Public Trust

24. Growth in sustainability reporting

25. Sustainability reporting in Canada
In 2012, there were 2
times as many
reporters in EU
compared to North
America.
25
In 2011, Canadian
companies published
3% of total global GRI
reports, the 10th
highest reporting level
in the world.
Source: GRI Sustainability Reporting Statistics Publication year 2011

26. Sustainability reporting by type
26
Source: GRI Sustainability Reporting Statistics Publication year 2011
The majority of GRI
reports are from
publicly listed
companies.

27. 27
Source: GRI Sustainability Reporting Statistics Publication year 2011
2011 GRI Reports by Sector
Sustainability reporting by sector

28. The GRI’s 5-Step Reporting Process

29. About the GRI
29
GRI Network
Focal Points
USA Focal
Point
Advisory
Groups Organizational
Stakeholders
Training
Partners
CANADA:
Sustainalytics/
LEAD Canada
Neuvaction
GRI reporters
Governance
bodies
Technical Advisory
Committee (Chair:
Denise Esdon, E&Y)
Secretariat
(Amsterdam)

30. Key Changes in G4
30
 Greater focus on materiality
 ABC application levels have been replaced by an “in
accordance” system - Core or Comprehensive
 Aspect specific guidance for Disclosures on
Management Approach (DMAs)
 Approach to boundary-setting has changed
 New “level of coverage” concept
 Enhanced focus on key areas including: governance and
supply chain disclosures

31. The GRI’s 5-Step Reporting Process
31
1.
• Obtain an overview
2.
• Choose the preferred ‘in accordance’ option
3.
• Prepare to disclose general standard
disclosures
4.
• Prepare to disclose specific standard
disclosures
5.
• Prepare the sustainability report

32. 1.
• Obtain an overview
2.
• Choose the preferred ‘in accordance’ option
3.
• Prepare to disclose general standard
disclosures
4.
• Prepare to disclose specific standard
disclosures
5.
• Prepare the sustainability report
The GRI’s 5-Step Reporting Process

33. 33
G4 Sustainability
Reporting Guidelines
The GRI’s 5-Step Reporting Process
1. Obtain an overview

34.  The Reporting Principles should be applied by all
organizations when preparing a sustainability
report.
34
Principles for
Defining Report
Content
Sustainability
Context
Stakeholder
Inclusiveness
Materiality
Completeness
Principles for
Ensuring Report
Quality
Balance
Comparability
Accuracy
Timeliness
Clarity
Reliability
The GRI’s 5-Step Reporting Process
1. Obtain an overview

35. 1.
• Obtain an overview
3.
• Prepare to disclose general standard
disclosures
4.
• Prepare to disclose specific standard
disclosures
5.
• Prepare the sustainability report
The GRI’s 5-Step Reporting Process
2.
• Choose the preferred ‘in accordance’ option

36. 36
‘In accordance’ options:
 Organizations may prepare their sustainability report
‘in accordance’ with the G4 Guidelines using one of
two options: core and comprehensive
 The options do not indicate quality or performance
 Report should include statement if partially but not
fully in accordance with either option
Not ‘in accordance’
‘In accordance’ with the
Core option
‘In accordance’ with the
Comprehensive option
The GRI’s 5-Step Reporting Process
2. Choose the preferred ‘in accordance’ option

37. 1.
• Obtain an overview
2.
• Choose the preferred ‘in accordance’ option
4.
• Prepare to disclose specific standard
disclosures
5.
• Prepare the sustainability report
The GRI’s 5-Step Reporting Process
3.
• Prepare to disclose general standard
disclosures

38.  Applicable to all organizations; helps to
set the stage and provide context
 Core option = 34 general disclosures
required
 Comprehensive option = all (58) general
disclosures required
The GRI’s 5-Step Reporting Process
3. Prepare to disclose general standard disclosures
G4
General
disclosures
Strategy and
analysis
2 indicators
Organizational
profile
14 indicators
Material aspects
and boundaries
7 indicators
Stakeholder
engagement
4 indicators
Report profile 6 indicators
Governance 22 indicators
Ethics and
integrity
3 indicators
Specific
disclosures

39. 39
The GRI’s 5-Step Reporting Process
3. Prepare to disclose general standard disclosuresStakeholder
Engagement
G4-24
Provide a list of stakeholder groups
engaged by the organization
G4-25
Report the basis for identification and
selection of stakeholders with whom to
engage
G4-26
Report the approach to engagement,
including frequency by type
G4-27
Report key topics and concerns raised
by stakeholders and where they are
addressed

40. 1.
• Obtain an overview
2.
• Choose the preferred ‘in accordance’ option
3.
• Prepare to disclose general standard
disclosures
5.
• Prepare the sustainability report
The GRI’s 5-Step Reporting Process
4.
• Prepare to disclose specific standard
disclosures

41. The GRI’s 5-Step Reporting Process
4. Prepare to disclose specific standard disclosures
G4
General
disclosures
Specific
disclosures
Economic 4 aspects 9 indicators
Environmental 12 aspects 34 indicators
Labour 8 aspects 16 aspects
Human Rights 10 aspects 12 indicators
Society 7 aspects 11 indicators
Products 5 aspects 9 indicators
 Applicable to all organizations
based on materiality
 DMAs should be reported for
material aspects
 New aspects and indicators in
G4 mostly related to supply
chain
DMA
Categories Aspects Indicators

42. 42
The GRI’s 5-Step Reporting Process
4. Prepare to disclose specific standard disclosures
DMAs
Describe why the
aspect is material
Describe the
management
approach
Describe how the
management
approach is evaluated
Aspect-specific DMA
guidance available for
23 aspects
‘Disclosures on Management Approach’:
 DMAs provide narrative on an organization’s
material aspects
 DMAs describe policies, commitments,
organizational responsibility, etc.

43.  Materiality is to
be determined at
the Aspect level
The GRI’s 5-Step Reporting Process
4. Prepare to disclose specific standard disclosures

44. 44
 Core option
 1 indicator per
material aspect
 Comprehensive option
 All listed indicators
per material aspect
 E.g. All 3 for the
aspect ‘water’
 Guidance is included on
how and what
information and data to
compile – use this
guidance!
Example: Aspect - Water
The GRI’s 5-Step Reporting Process
4. Prepare to disclose specific standard disclosures

45. 45
‘Reasons for omissions’:
 In exceptional cases, an organization may omit a
general or specific disclosure if it is:
 Not applicable
 Business confidential
 Legally prohibited, or
 If data is not available
 However, must provide good rationale
The GRI’s 5-Step Reporting Process
4. Prepare to disclose specific standard disclosures

46. 46
Sector Supplements:
 Ten sector supplements were created
under G3 to reflect that many sectors
had unique impacts
 The aspects and indicators contained
within remain valid. If a sector-
specific aspect is material, then it
must be included in the report.
The GRI’s 5-Step Reporting Process
4. Prepare to disclose specific standard disclosures
Finalized sector supplements
 Financial Services
 Electric Utilities
 Food Processing
 Mining and Metals
 NGO
 Airport Operations
 Construction and Real Estate
 Event Organizers
 Media
 Oil and Gas

47. 47
 When preparing to disclose specific standard disclosures,
materiality should be at the forefront
The GRI’s 5-Step Reporting Process
4. Prepare to disclose specific standard disclosures
“Material topics for a reporting organization should include those
topics that have a direct or indirect impact on an organization’s
ability to create, preserve or erode economic, environmental and
social value for itself, its stakeholders and society at large.”
https://www.globalreporting.org/reporting/guidelines-
online/TechnicalProtocol/Pages/MaterialityInTheContextOfTheGRIReportingFramework.aspx

48. 48
 The GRI offers a 4-step process for
defining material aspects
The GRI’s 5-Step Reporting Process
4. Prepare to disclose specific standard disclosures

49. 49
Identify a list of aspects and topics that have
the potential to be material
The GRI’s 5-Step Reporting Process
4. Prepare to disclose specific standard disclosures
International Norms
and Standards
Ratings NGOs/Academics/Expert
Bodies
Your activities

50. 50
 For each identified aspect,
determine where the impact
occurs – internally (G4-20) or
externally (G4-21)?
 Determine the geographical
boundary– in what regions
does the organization have an
impact?
The GRI’s 5-Step Reporting Process
4. Prepare to disclose specific standard disclosures

51. 51
The GRI’s 5-Step Reporting Process
4. Prepare to disclose specific standard disclosures

52. 52
For each aspect identified, consider the
impact on stakeholders, and the impact
on the organization.
Y-axis:
 What is the degree of
stakeholder interest?
X-axis:
 Can the aspect have an impact on
the organization from a financial,
operational, strategic, reputational
or regulatory perspective?
 What is the likelihood and
potential severity of the impact?
What is the level of coverage for each
aspect?
The GRI’s 5-Step Reporting Process
4. Prepare to disclose specific standard disclosures

53. 53
The GRI’s 5-Step Reporting Process
4. Prepare to disclose specific standard disclosures

54. 54
The GRI’s 5-Step Reporting Process
4. Prepare to disclose specific standard disclosures
Level of Coverage
 Once you have identified the material aspects you need to
determine level of coverage.
 Level of coverage refers to the amount of prominence, amount of
data and narrative description disclosed by an organization about
an aspect.
 Factors include: priority, boundary, data availability.
 Organizations should disclose when information presented does
not cover the full boundary identified

55. 55
The GRI’s 5-Step Reporting Process
4. Prepare to disclose specific standard disclosures
Core Comprehensive
General Standard
Disclosures
34 out of 58 All 58
Core Comprehensive
Specific
Standard
Disclosures
DMAs For material aspects only For material aspects only
Indicators
At least one per material
aspect
All indicators for material
aspects
Sector
specific
disclosures
Required if available for
the sector and if material
Required if available for the
sector and if material
Review of disclosure requirements:

56. 56
Ensure that the list of material aspects present
a reasonable and balanced picture of the
organization’s positive and negative impacts
 Apply the ‘completeness’ and
‘stakeholder inclusiveness’
principles
 Obtain executive sign-off
 Determine what material aspects
have data already available.
Prepare systems to collect data.
The GRI’s 5-Step Reporting Process
4. Prepare to disclose specific standard disclosures

57. 1.
• Obtain an overview
2.
• Choose the preferred ‘in accordance’ option
3.
• Prepare to disclose general standard
disclosures
4.
• Prepare to disclose specific standard
disclosures
The GRI’s 5-Step Reporting Process
5.
• Prepare the sustainability report

58. 58
The GRI’s 5-Step Reporting Process
5. Prepare the sustainability report
 A GRI content index directs the reader to where the disclosure is reported – sustainability
report, website, annual report, etc.
 A GRI report must state an ‘in accordance’ option and include a GRI content index to support
the declaration

59. 59
The GRI’s 5-Step Reporting Process
5. Prepare the sustainability report
 GRI recommends the use of external assurance, but it is not a
requirement to be ‘in accordance’ with either the core or
comprehensive option
 The “+” has been eliminated

60. 60
The GRI’s 5-Step Reporting Process
5. Prepare the sustainability report
 Organizations are not required to submit their sustainability report to the GRI
 Organizations may register its sustainability report (including non-GRI reports)
with the GRI in order to be included in the GRI’s Sustainability Disclosure
Database

61. Thank You
Questions & Discussion
Simon MacMahon
Global Director Advisory Services
Sustainalytics
Simon.macmahon@sustainalytics.com
Kathryn Morrison
Associate Analyst
Sustainalytics
Kathryn.morrison@sustainalytics.com

62. Interview with Suncor Energy
Q&A

63. BREAK

64. Panel Discussion

65. Master Class III:
G4
Presented by GRI
http://vimeo.com/67809773?d96a349c52fc4f68eea46a47ccb3d360

66. G4 applied to Canadian context
How do we scale it up?
GRI presenters: Mike Wallace & Marjella Alma
Panelists:
Bob Willard, sustainability author and expert, The Sustainability Advantage
Denise Esdon, Partner Ernst & Young Canada; GRI Board of Directors,
Chairwoman GRI’s Technical Advisory Committee
Helle Bank Jorgensen, Special Advisor UN Global Compact; B-Accountability
Valerie Chort, Partner, National Leader Sustainability, Deloitte Canada, G4
Campaign Sponsor
Agenda

67. Public & Private Regulation
Harmonization & Integration
Supply chain & Procurement
Sustainability - Mega trends

68. Regulatory trends
"More governments are making
sustainability reporting mandatory.“
In 2006, 58 percent of policies were
mandatory;
now, more than two thirds (72 percent) of
the 180 policies in the 45 reviewed
countries are mandatory.

69. What’s happening with the neighbors?

70. Stock exchange activity
May 2010 January 2011

71. • GRI G4 & Other Initiatives:
• OECD MNE Guidelines
• UNGC Principles
• UN Guiding Principles on Business and
Human Rights
• GHG: CDP, Climate Registry, WRI, ISO
• GRI G4 & Integrated Reporting
Harmonization in G4

72. Harmonization: other initiatives
Where?
 Legend, links to OECD/UNGC

73. Harmonization: GHG
Where?
 GHG disclosures
* G4 WG with CDP & Climate
Registry
* Aligned with WRI & ISO 14064

74. Harmonization: other initiatives
Where? Linkage tables in G4

75. • GRI & Other Initiatives:
• OECD MNE Guidelines
• UNGC Principles
• UN Guiding Principles on Business and
Human Rights
• GRI & Integrated Reporting
• GRI & Supply Chain
Harmonization: Integrated Reporting

76. New publication
Harmonization - Integrated reporting
76

77. • GRI & Other Initiatives:
• OECD MNE Guidelines
• UNGC Principles
• UN Guiding Principles on Business and
Human Rights
• GRI & Integrated Reporting
• GRI & Supply Chain
Supply Chain

78. Supply Chain – G4-12 Describe the supply chain
Supply Chain Disclosures

79. Overview of Supply Chain Disclosures in G4, pg 86
Supply Chain Disclosures

80. Public & Private Regulation
Harmonization & Integration
Supply chain & Procurement
Sustainability - Mega trends

81. •Learning Services Material
– G4 Bridging Module July 2013
– Standard course & Pathways I: September 2013
– SME course & Pathways II December 2013
•Reports Services - GSI
– Decision on “In accordance” checks: September 2013
– Certified Software for G4 and G4 online
Post G4 Launch - Roll out phase

82. Thank You
www.grifocalpointblog.org/usa
www.griconference.org
82