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GRI workshop with EPRI

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Electric Utilities Industry

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  • NA notes:When GRI network looks at the sustainability challenges we are facing, what they want to understand is “how can business be profitable and contribute to solutions at the same time?”, “ how are all organizations contributing to fce these challenges”?
  • As part of the reporting journey, many organizations experience these benefits. Sustainability reporting also demonstrates organizational commitment to sustainable development and compare organizational performance over time.What is your company’s contribution for the future?Do you know how to measure it? Are your managers ready to face what is coming?Who is asking: Carbon traders, financial risk managers, insurance companies, buyers, clients…your children
  • I’d like to get your perspective here on who’s asking for your sustainability information; you can give the investor perspective here (if you want) but also highlight other types of stakeholders that are asking for sustainability info.
  • NA notes: This is the way we see the GRI network. In its main components and they will shape the organization and “Due process”. The ones with a (*) are literally mentioned in all GRI internal documents. This means that decision making processes will have to take them specially into account. Academia, Governments and many others are under “mediating institutions” which are the other players in the reporting field.
  • NA notes: Let’s understand how the network operates-The GRI governance bodies are 3 – BoD (around 15 members), SC (around 40 members) and TAC (around 15 members). All decision taken by GRI involve these bodies in different ways. All of them are composed by the stakeholders described before. In the TAC the balance among constituency groups is less important as the technical skills of the member and geographical representation play a more important role. - Under the leadership of the Chief Executive, the Secretariat –based in Amsterdam since2002 – implements GRI’s technical work and manages network and institutional communications, stakeholder relations, financial admin and outreach initiatives. As an extension of the Secretariat GRI has Focal Points in 5 countries (Australia, Brazil, China, India, US) . Focal Points give GRI a regional presence on the ground, build sustainability reporting capacity and connect local sustainability initiatives with global ones, with the added insight of local knowledge and languages. GRI has also started to nominate senior experienced representatives who have been part of the GRI governance bodies to become GRI AmbassadorsOrganizational Stakeholders are GRI’s core supporters, providing vital funding and lending their name to GRI’s Vision and Mission. We count on circa 600 organizations in this group. All sizes and from different groups.Because of the very specific role governments are playing in shaping up the reporting field and as they have started to ask for GRI guidance on how to regulate in the reporting field, in 2009 GRI has started an advisory body to the GRI BoD with individual representation of governments. In march 2012 it counts on 15 countries.Training Partners and training participants (present in more than 40 countries), projects sponsors and other partners are strategic partners in disseminating the GRI Guidelines.GRI has built Strategic Alliances to increase the GRI Framework with other international guidance on reporting or related matters. The most prominent ones are the ones with UNGC, OECD, UNEP, and lately a strong collaboration with ISO because of ISO 26000
  • NA notes:And at the core of what we do there is a believe that “what you can’t measure, you can’t manage nor change”. GRI works to offer support to all organziations to measure and report on what are they doing to face the sustainability challenges we are facing.
  • NA notes:And this is what the GRI Guidelines and sector Supplements are about.Reporting is a tool to help answer to the sustainability challenge!
  • Na notes:By using the GRI Guidelines, organizations prepare their sustainability reports,triple bottom line, corporate responsibility reporting, non-financial performance, etc.(or other documents).GRI reports contain information on economic, environmental and social performance of companies, and also on governance aspects related to sustainability management.It can be written for a wide audience of stakeholders.It is actually a circle of continues improvement, as the number of organizations that give up sustainability reporting process is very very small.More:Reporting is public disclosure – thereby the commitment to transparencyReporting is performance focused – how is your performance on economic, environmental and social impacts?Reporting is interrelated – your impact on the world, and the world’s impact on you, is only clearly understood if you realize that the aspects you are reporting on are not discreet. Eg, environmental impacts have economic consequences. Sustainability reports provide internal & external stakeholders with insight into key performance indicators such as energy and water use, greenhouse gas emissions, and human rights issues.
  • NA notes:The GRI Guidelines can be understood in 3 main Parts. a.The GRI Reporting Principles for quality of information and quality of the reporting process. b.The Standard Disclosures per category, where the Guidelines presents what – after defining the focus of the report using the Principles – should the organization report on. c. the Third Part, which is the organization profile. A description of the organization’s characteristics, include governance model.More on a.Reporting Principles guide organizations in deciding their report content and to text the quality of the information displayed in the reports. 4 Principles offer specific guidance on how to choose the focus of the report: Materiality, Stakeholder Inclusiveness, Sustainability Context and Completeness. The most “famous” one is “Materiality”. More on b. and c.Standard Disclosures – are a list oftopics and Indicators that the organization can actually report. The selection on what to report on depends on the application of the principles just described. They include Management Approach (define how the organization operates, its systems, policies and goals) and Performance Indicators, divided into 3 categories: Economic, Environmental, Social (Social is sub-divided into Labor, Human Rights, Society and Product Responsibility) pg 24 RG in the G3 guidelines.
  • Added a few more in Jan 2011http://www.globalreporting.org/GRIReports/GRIReportsList/
  • These are absolute numbers.Interesting trend is that whenever sector-supplement guidance is issued – the number of reports in that sector go up significantly. See red bars.
  • Only 12 out of 273 (GRI w/ index reports) are “integrated reports” in the US. = less than 5%
  • NA notes:Finally, there is a 6th work stream which will tackle how to improve and amplify the GRI guidance for sectors.As expressed in the first PCP and many other consultations, there is a general understanding from GRI stakeholders that there is considerable international agreement that material topics are better expressed by sector, if there is a request for specific type of information which can only be defined usefully per sector.To build on this direction GRI will start inviting internationally
  • NA notes:How GRI network develops the GRI Guidelines?Through a called “Due Process”, which is a well established and defined steps on how new content can be developed or revisions can be made.- In a simplified way we could say that, it always starts with a decision of the BoD. After it, the BoD request a work plan to implement what the BoD has decided should be done. The GRI Secretariat prepare work plans, which have to be approved by the TAC and the BoD. The TAC also has to advise the Secretariat on technical issues during the implementation of the plans.-The content prepared has to be presented for Public Comment Period (PCP) – for a minimum of 90 days- and all the stakeholders groups (described before) have to be consulted. -Their inputs are discussed with the TAC, which takes decisions on what has to be developed new or profound reviewed. This decision can be challenged by the BoD. Preparation of new content or profound revisions are tasks of WG, which are composed by the same stakeholders representatives already described.Their recommendations are checked by the TAC and when approved go to another PCP, the inputs are again checked by the TAC, shaped by the Secretariat and finally presented to TAC and SC for final recomendations. To the BoD. The SC role is to advise the BoD on how the stakeholders have been consulted and if are particular aspects, not technical, that should be considered by the BoD.If the BoD agrees, than the Secretariat launches the content for public use.
  • NA notes:Here is a summary of how GRI’s BoD sees this field developing.(read the slide. Pls ask for help if you can’t explain this slide. It is critical to understand G4 objectives)So, when we shape G4, it has to be done in a way that can offer solutions these issues.
  • NA notes:These are the Objectives approved by the GRI BoD in September 2010. They will shape the entire G4 development.MORE REPORTSIf the demand for sustainability disclosure is growing, this means that G4 has to be a tool to help experienced and beginners (the new reporters) to report on sustainability. The guidance has to be clear and user-friendly. BETTER REPORTSIf we need to have better quality of information we have also to start by technically reviewing the current GRI definitions of the guidelines (it will also help to reduce reporting costs, as what has to be reported on should become clearer and should reduce auditing costs as the “space for interpretation” can be reduced)G4 has to be also a process to achieve as much harmonization as possible with international standards for reporting, link to internationally accepted metrics, etcAs GRI reports are becoming a very large publication and the implementation of principles to define report content are not clearly described, G4 should also ask for more “material” focus for GRI reportersIRAs more and more companies are interested in integrating financial and sutainability reports, this is identified as a trend, G4 should offer guidance on how to link these 2 reporting processes, following IIRC guidance.EASIER TO ACCESS REPORT DATAG4 should be offered in a way that also facilitates the link to data search features (such as XBRL)
  • NA notes:The BOD has also approved a timeline for the G4 development, respecting the Due process steps, as described in this slide.(pls be sure you know to explain this slide, otherwise ask for help)The launch date for G4 is May 2013.
  • NA notes:The participants in regions(pls read the slides)
  • NA notes:When we asked the participants which relation they had with reporting, we see that a high level of participants are reporters (line in red).when we asked them to choose one or more way to describe their activity, if not reporter, we received a variety of combinations expressed in blue lines
  • NA notes:These are the points where we found “strong recommendations” which are recommendations from all stakeholder groups in all regions with a score above 80%.They were:There is a strong levels of agreement from all stakeholders around 4 elemenst they all want to see covered as a minimum in a GRI report (which will be presented in the next page)There is a strong agreement that GRI should become more prescriptive in the “sector” levelOver 90 % want G4 to show the link between IR and SRA range of topics were suggested to be included or updated in the guidelines. Here you will se the 6 most scored ones.
  • NA notes:Considering the G4 objectives established by the BoD and the recommendations we received from stakeholders, the G4 project has 6 work streams and this is what I would like to present to you.(pls read the slide)An explanation about each of these work streams will appear in the next slides
  • NA notes:In order to guarantee the technical quality of the guidelines, GRI has created a “technical editing task force” (TETF).The TF goals in to improve the technical quality of the GRI Guidelines, by introducing clear descriptions of what is expected to be disclosed and alignment with well established standard practices.They are not allowed to change the content of existent not new content (proposed by WG). Theirs task is to improve technical quality without changing the content of the texts.The TETF is composed by 4 experts:Alice van de Houve (E&Y auditor, Netherlands)Roger Adams (ACCA, UK)John Purcell (CPA, Australia)Kerstin Simpson (Report preparer and auditor, Australia)GRI published a call for experts for this TF.
  • NA notes:As we said before Working Groups are in charge of recommending to the TAC new content or profound revisions developed by themsolves.The are currently 5 WG focused mainly in the structural elements of the Guidelines. They are:Disclosure on management approachGovernance BoundaryApplication LevelsSupply ChainTo know more about the WG terms of reference and members, pls consult the GRI website.The members are selected after a public call for participants.The WG have to count on the presence of representatives from the GRI stakeholder groups.
  • NA notes:Under the harmonization work stream we take care of 2 different types of harmonization efforts:Creating criteria to include references in the guidelines that improve the quality of reports and link GRI metrics (or definitions) with internationally accepted onesCheck general agreement of the G4 with international accepted reporting related guidance such as UNGC, OECD, etc.The Secretariat and he TAC are working on these issues.NA notes:It is also, part of the “harmonization efforts” the task of keeping the G4 guidance aligned with IIRC current and future development.As we have received the request from the BoD and stakeholders to offer guidance on the link between IR and SR processes, and as IIRC will not have finalized the process for internationally defining the IR concept and framework by the time of launch of g4, GRI will prepare content based on current IR reporting practice on this topic.More to be announced soon.
  • NA notes:There is a 4th work stream called G4 on-line.This work stream’s goal is to offer G4 in a user friendly web base format.GRI does believe that this is a strategic part of the project which will help to scale up as well as to facilitate the access of reported information.
  • NA notes:GRI plans to use the just launched GRI XBRL taxonomy for G4.This will enable GRI tagged reports to be easily accessed by companies managers and information users in a cheap and easy way.
  • NA notes:Finally, there is a 6th work stream which will tackle how to improve and amplify the GRI guidance for sectors.As expressed in the first PCP and many other consultations, there is a general understanding from GRI stakeholders that there is considerable international agreement that material topics are better expressed by sector, if there is a request for specific type of information which can only be defined usefully per sector.To build on this direction GRI will start inviting internationally
  • NA notes;Just to say that the elements you find in the G3 Guidelines will e also in G4 but in a different shape
  • http://www.globalreporting.org/GRIReports/GRIReportsList/
  • Transcript

    • 1. GRI Workshop Marjella Alma Manager External Relations - GRI alma@globalreporting.org +1 917 690 0909 Venue, DateEnergy Sustainability Interest Group Spring Workshop, Los Angeles 24 May 2012
    • 2. Thoughts from St Louis• 30 million ESG data points in 6 months• Sector materiality• ESG should be GES• Offense not defense• Milestone: 6 years ago• Horizontal in a vertical world• The art of persuasion• Beer & Better World
    • 3. Our biggest communications challenge remainsGRI is not just about the report, It’s about the process
    • 4. The sustainability challenge How can business be profitable andcontribute to solutions at the same time?
    • 5. Outline for today8.30 – 9.30 Sustainability Reporting trends 30 min presentation & 30 min Q&A9.30 – 10.00 GRI collaborations 20 min presentation & 10 min Q&A10.00 – 10.30 Coffee Break10.30 – 11.30 G4 workshop 20 min presentation & 40 min feedback from EPRI members11.30 – 12.20 Electric Utilities workshop 20 min presentation & 30 min feedback from EPRI members12.20 – 12.30 GRI resources & closing
    • 6. Sustainability reporting trends Venue, DateEnergy Sustainability Interest Group Spring Workshop, Los Angeles 24 May 2012
    • 7. Recent research shows that.. sustainability reporting is de factoThe largest and most law for businesscomprehensive surveyof CR reporting trendspublished sustainability reporting enhances financial valueVast coverage of 3,400+companies combined reporting leads to IRMost comprehensive data integrity is essentialstudy since the firstreport in 1993 leaders choose external assuranceKPMG International Corporate Responsibility Reporting Survey 2011
    • 8. Vision of the Global Reporting Initiative A sustainable global economy where organizations manage their economic, environmental, social and governance performance and impacts responsibly and report transparently. Question: what essential information did we forget to account for in the past?
    • 9. Business case for reporting Competitive Opportunities advantage Innovation Attract Improved investment reputation Improved business and trust models StakeholderInternal Attract talent External dialogue Waste, CO2 and water reduction Governmental and stock exchange regulation Risks
    • 10. Supporters of the business case• Principles for Responsible Investment (PRI) [2006] – Currently represents over $22 Trillion in investment capital – Close to 1000 signatories• Investor Network on Climate Risk (INCR) [2003] – Currently represents over $9 Trillion in investment capital – 90+ members• Carbon Disclosure Project (CDP) [2002] – Currently represents over $71 Trillion in investment capital – act on behalf of 551 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
    • 11. Mainstream involvement
    • 12. …over time, GRI reporters outperform the benchmarkHFA<GO>
    • 13. Can any of this really be measured? How would you do this?
    • 14. How does GRI help?GRI MissionTo make sustainability reporting standard practiceby providing guidance and support toorganizations.
    • 15. GRI: a network organization *Business Academia *Civil Society*Mediatinginstitutions Governments *Labor *Financial markets
    • 16. GRI: a network organization• Governance Bodies – BoD, SC, TAC• Secretariat, Focal Points and Ambassadors• Organizational Stakeholders• Governmental Advisory Group• Training partners and training participants• Project sponsors• Content development partners• Strategic Alliances
    • 17. Managing change “What you can’t measure, you cannot manage. What you can’t manage, you cannot change.” Peter Drucker Writer, professor and management consultant
    • 18. GRI Sustainability Reporting Guidelines and the Sector Supplements!
    • 19. What is sustainability reporting? • Economic, environmental, social performance information and governance aspects related to sustainability • Multi-stakeholders focused • Continuous improvement
    • 20. GRIG3.1 Guidelines Map The G3 Guidelines QUALITY: Reliability, Accuracy, Content Timeliness, Clarity, Comparability, Strategy and Analysis Balance Quality Organizational Profile Principles CONTENT: Materiality Report parameters Boundary Stakeholder Inclusiveness Governance, Completeness Disclosure Commitments and Sustainability Context Items Engagements Standard Disclosures Disclosure on Management Approach and Performance Indicators Labor Human Right Profile Society Economic Environmental Social Product ResponsibilitGRI CRESS webinar, February 2011
    • 21. The G3.1 Guidelines Display data through a GRI Content Index • flexibility to reach different stakeholders in different ways. • flexibility to reference already existing materials. • enhances ease of access for your stakeholders. • communicates your Application Level.
    • 22. A GRI report..makes use of theG3 or G3.1Guidelinesincludes aGRI Content Indexand preferablydeclares anApplication Level
    • 23. GRI Application Levels
    • 24. Rationale - Application LevelsObjective classification system for G3/G3.1 reports • Signifies to what extent the G3/G3.1 Guidelines have been used in a report. • Meaning: Tells which set & how many disclosures have been addressed in the reporting.A pathway for GRI reporters for incrementallyimproving GRI reporting
    • 25. “+” reports More than 70 percent of the G250 and 64 percent of N100 engage major accountancy firms.Reinforce credibility among stakeholders Improve quality of reported information Improve reporting processes Primarily responding to legal requirements Drive performance 0% 5% 10% 15% 20% 25% 30% 35% Source: KPMG International Survey of Corporate Responsibility Reporting 2011
    • 26. Who’s using GRI?
    • 27. American GRI reportersGRI Sector Leaders:
    • 28. 95% of Global 250 companies issuesustainability reports – 80% use GRI 2
    • 29. USA – 9th place from 74% up to 83% in 3 years 2008 versus 2011 of N100 companies 2
    • 30. Reporting trendsAbsolute reporting figures in the USA US GRI data partner Sustainability Reports in the USA GRI G3 + G3.1 GRI reference Non-GRI sustainability report 46% growth in absolute number of 47 GRI reports (w/ 23 index) 2010 - 2011 And counting!! 273 187 141 119 71
    • 31. 300 GRI reports by sector in 2010 250 200 150 100 50 0*Sustainability Disclosure Database data from 1 February 2012
    • 32. Data integrity 100% 90% 80% 21 112 415 41 70% 170 60% 167 50% Not assured 40% Externally assured 30% 23 125 446 35 20% 87 10% 40 0% Africa Asia Europe Latin America Northern Oceania America* Data from the Sustainability Disclosure Database as of 12 April 2012
    • 33. “Integrated reporting” – international trends 2010 2011 13% 21% Not integrated Integrated 87% 79%*Sustainability Disclosure Database data from 1 February 2012
    • 34. What are we seeing here in the US?– Financial Markets involvement– Government involvement– Supply Chains involvement
    • 35. Financial market playersMay 2010 January 2011
    • 36. E, S and G analysis Company Environmental Total Energy Total GHG Emission Water Consumption Total Waste Names Disclosure Consumption (Th Tonnes) (Thousands of cubic (Thousands of metric Score (Mwh) meters) tons) 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009BMW --- 50.39 --- 3635.76 --- 1139.06 --- 3222.35 --- 450.51Daimler 55.81 54.26 10327.00 8631.00 3699.00 3036.00 14050.00 11960.00 1022.00 787.00Fiat --- 60.47 --- 8580.99 --- 2571.81 --- 34518.00 --- 1252.02Toyota 37.98 37.98 --- --- n/a n/a 27411.00 29323.00 102.00 105.00Peugeot --- 61.24 --- 6725.60 --- 920.27 --- 13850.03 --- 1029.60Renault --- 37.21 --- 4704.57 --- 1238.36 --- 10681.60 --- 848.14Ford --- 39.53 --- 15141.00 --- n/a --- 24100.00 --- 108.50Honda 38.76 36.43 111111.11 108333.34 3980.00 3590.00 30000.00 27000.00 --- ---Nissan 34.88 34.88 6525.28 6480.28 n/a n/a 15629.00 20902.00 869.00 888.00Hyundai --- 38.76 --- n/a --- 1986.00 --- 16980.00 490.63
    • 37. MNE’s and their supply chains Customer Training Suppliers GRI Stakeholders
    • 38. GovernmentsMore governments are makingsustainability reportingmandatory.142 regulatory instruments inover 30 countries
    • 39. GRI and Industry associations Venue, DateEnergy Sustainability Interest Group Spring Workshop, Los Angeles 24 May 2012
    • 40. Global strategic collaboration
    • 41. GRI & Association Activity
    • 42. How do associations and GRI engage?Some recent examples:ASSE – American Society of Safety Engineers - http://www.asse.org/CSHS/Video Presentation - http://growglobally.org/?p=942USGBC – Green Building Council - http://www.usgbc.org/Docs/News/GRI_USGBC.pdfNAEM – National Assoc. of Enviro Managers - http://www.naem.org/?LN_2011_08_31VHA – Healthcare suppliers -https://www.vha.com/News/PressReleases/Pages/2011_0208_GRIStatement.aspxICMM - Association of the mining & metals Industry –Case Study - http://www.asaecenter.org/Resources/ANowDetail.cfm?ItemNumber=71507Video Presentation - http://growglobally.org/?p=942CECA – Spanish savings banks; http://www.savings-banks-events.org/csr/case.aspx?case_id=42Association of Chilean Wine Industry - http://www.sustentavid.org/english/social-responsibility--gri-reports.htmlCatalan Chamber of Commerce - https://www.globalreporting.org/network/global-action-network/current-projects/Pages/General-Council-of-the-Catalan-Chamber-of-Commerce.aspx
    • 43. USA Focal Point and EPRI:• Participate in US OS presentations in US webinars• US FP Representatives speak at your sustainability reporting event• US OS profiling through US events (incl. discounts), news updates, social media and US OS Brochure• 20% discount on GRI Introductory Workshops and GRI US Master Classes• Regular contact with US Focal Point office for information and possibilities• Ad hoc: joint research projects; joint events etc etc.
    • 44. OS - LearningAnnual Knowledge-Share projects where approx. 12OS are highlighted on a monthly basis sharinginformation on reporting topics e.g. materiality,featured in a webinar on this topic and a chapterrelease which results in an annual publication.Access the 2011 publication
    • 45. OS - LearningOn-line meetings - The OS Team organizes at least oneon-line meeting per month exclusively for OS, on GRItopics and Knowledge-share topics, and continues tobroaden the content. All on-line meetings are recordedand stored on the OS private pages.OS private pages – peer to peer knowledge sharing andaccess to all recorded exclusive OS webinars.
    • 46. OS - ProfilingEvents - GRI organizes at least 1 live event in each of GRI’sTop 10 countries per year. GRI organizes exclusive eventsand dinners for OS during its Amsterdam GlobalConference.Online meetings – OS present in online meetingsExclusive OS logo for publication in reports andwebsite/profiling opportunities on the GRI website andGRI’s Sustainability Disclosure Database.
    • 47. OS – Elect GRI’s Stakeholder CouncilThe Stakeholder Council (SC) is GRI’s formalstakeholder policy forum consisting of up to 50members. The SC appoints Board members and makesrecommendations to the Board..Election process• The election process is performed by the OS, who elect 60% of the new SC members annually.• The second phase is the appointment process performed by the Stakeholder Council, which elects 40% of the members annually.
    • 48. GRI’s Electric Utilities Sector Guidance Venue, DateEnergy Sustainability Interest Group Spring Workshop, Los Angeles 24 May 2012
    • 49. GRI Sector Supplements
    • 50. Electric Utilities industry - USA Organization Report typeAmerican Electric Power (AEP) GRI - G3Avista Corp. GRI - G3Constellation Energy GRI - G3Duke Energy GRI - G3El Paso Corporation GRI - G3Exelon Corporation GRI - G3Fort Collins Utilities GRI - G3Marathon Oil GRI - G3Next Era Energy GRI - G3Nisource GRI - G3NV Energy GRI - G3PG&E Corporation GRI - G3Pinnacle West Capital Corporation GRI - G3PNM Resources Non - GRIPSEG GRI - G3Teco Energy GRI - G3The Southern Co. GRI - G3Vectren Corporation Non - GRIFPL Group GRI - ReferencedNevada Energy GRI - G3NRG Energy GRI - G3Williams GRI - G3
    • 51. GRI Reporters Electric Utilities International incl USA 2006 - 2011 110 100 78 66 5132 16 20 20 7 12 42006 2007 2008 2009 2010 2011
    • 52. Regional picture (2010 data)Energy Utilities sector All reports Africa Oceania Oceania Africa 1% 2% 4% 3% Asia North 13% North Asia America America 20% 22% 14% Latin America 14% Latin EuropeAmerica 40% 22% Europe 45%
    • 53. Venue, DateIFAC, Chief Executives Strategic Forum, 28 February 2012
    • 54. Electric Utilities Sector Supplement EUSS developed by:Africa: South Africa: Eskom; University of Cape townAsia: CH: China Resources Power; CLP. IN: Centre for Science & Environment. JAP: CentralResearch Institute of Electric Power Ind. KOR: Green Korea United; Korea East-West Power.Europe: BEL: Dexia. Denmark: DONG. FR: Helio; Public Service Int. GER: RWE. ITA: Enel. PORT:Agência Municipal de Energia de Gaia. NL: Nuon. UK: Insight Investment. RUS: RAO UES, OGK-2.Latin-America: ARG: Fundación para la defensa del ambiente. BR: CEMIG; Copel; University ofSão Paulo. CHL: Chilectra; Organización de Consumidores y Usaurios. COL: EPM.North America: CAN: BC Hydro, Hydro Québec. USA: AEP, California Climate Action Registry;CERES; E.ON; Calvert; PPL Services; RiskMetrics, Utility Workers Union of America AFL-CIO.Oceania: Public Interest Advocacy Centre (AUS)
    • 55. Electric Utilities Sector Supplement Key issues:– Stakeholder participation in the decision making process related to energy planning– Managing impacts of displacement– Processes and programs to ensure a skilled workforce is available– Management approach to ensure short and long term electricity availability and reliability– Demand side management programs– Provisions for decommissioning of nuclear power sites– Managing impacts on biodiversity
    • 56. Sector guidance in G4• To offer specific guidance on material topics/aspects to be reported per sector (GICS - 64)• It starts with research on currently identified material topics (current SS and other sources)• GRI will collaborate with organizations with focus on such analysis• Publish findings for Public Comment in May 2013 This is the 6th G4 work stream
    • 57. GRI Electric Utilities Sector SupplementEnvironmental aspects: G3 aspect: MaterialsCOMM G3 aspect: Energy G3 aspect: WaterCOMM G3 aspect: BiodiversityCOMM G3 aspect: Emissions, effluents and wasteCOMM G3 aspect: Products and services G3 aspect: Compliance G3 aspect: Transport G3 aspect: Overall
    • 58. GRI Electric Utilities Sector SupplementEconomic aspects:G3 aspect: Economic performanceG3 aspect: Market presenceG3 aspect: Indirect economic impactsEUSS aspect: Availability and reliabilityManagement approach to ensure short and long-term electricity availability and reliabilityEUSS aspect: Demand-side managementDemand-side management programs including residential, commercial, institutional andindustrial programsEUSS aspect: System efficiencyEUSS aspect: Research and developmentResearch and development activity and expenditure aimed at providing reliable electricityand promoting sustainable developmentEUSS aspect: Plant decommissioningProvisions for decommissioning of nuclear power sites
    • 59. GRI Electric Utilities Sector SupplementLabor aspects: G3 aspect: Employment Comm Programs and processes to ensure the availability of a skilled workforce Percentage of employees eligible to retire in the next 5 and 10 years broken down by job category and by region Policies and requirements regarding health and safety of employees and employees of contractors and subcontractors G3 aspect: Labor/management relations G3 aspect: Occupational health and safety G3 aspect: Training and education G3 aspect: Diversity and equal opportunity
    • 60. GRI Electric Utilities Sector SupplementHuman Rights aspects:G3 aspect: Investment and procurement practicesG3 aspect: Non-discriminationG3 aspect: Freedom of association and collective bargainingG3 aspect: Child laborG3 aspect: Forced and compulsory laborG3 aspect: Security practicesG3 aspect: Indigenous rights
    • 61. GRI Electric Utilities Sector SupplementSociety aspects: G3 aspect: Community Comm Stakeholder participation in the decision making process related to energy planning and infrastructure development. Approach to managing the impacts of displacement G3 aspect: Corruption G3 aspect: Public policy G3 aspect: Anti-competitive behavior G3 aspect: Compliance EUSS aspect: Disaster/Emergency planning and response Contingency planning measures, disaster/emergency management plan and training programs, and recovery/restoration plans.
    • 62. GRI Electric Utilities Sector SupplementProduct Responsibility aspects: G3 aspect: Customer health and safety G3 aspect: Product and service labelling G3 aspect: Marketing communications G3 aspect: Customer privacy G3 aspect: Compliance EUSS aspect: Access Programs, including those in partnership with government, to improve or maintain access to electricity and customer support services. EUSS aspect: Provision of information Practices to address language, cultural, low literacy and disability related barriers to accessing and safely using electricity and customer support services
    • 63. ExerciseDetermine top 10 material aspectsDetermine top 11-20 material aspectsTwo groups – 40 minutes30 minutes brainstorm10 minutes presentation
    • 64. GRI’s G4 development process Venue, DateEnergy Sustainability Interest Group Spring Workshop, Los Angeles 24 May 2012
    • 65. Towards the 4th generation of GRI G4G4 aims to improve on content in the currentGuidelines – G3 and G3.1 – with strengthenedtechnical definitions and improved clarity.
    • 66. G4 - a stepping stone towards integrated reporting Sustainability Reporting Sustainability Disclosure Mainstreaming G4 Integrated Reporting Other paths to mainstreaming
    • 67. How the GRI network does it?Through a “Due Process” ! SC + WG TAC BoD BoD Public Public Comment Comment Period Period
    • 68. G4 challenges• Demand for sustainability performance information is increasing – also from regulators• Metrics is not coherent/harmonized• Lack of precision - leads to high reporting and verification costs• Most reports lack material focus• Information in pdf of other unfriendly formats• “Integrated Reporting” is a trend
    • 69. G4 Objectives• To be user-friendly for beginners and experienced reporters• To improve the technical quality, clearer definitions• To align with other reporting frameworks• To offer guidance which leads to material reports (“materiality”)• To offer guidance on how to link the sustainability reporting and Integrated Report - aligned with IIRC• To provide support to improve data search (XBRL)
    • 70. G4 timeline 2011 2012 2013MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN Launch May 2013!!! Text Revision / Editing Task Force Working Working Governance Public Comment Working Groups Public Comment Bodies give Preparatory Stage Groups Groups Final Edit LAUNCH Period 1 Meet Period 2 Final Vote Formed MeetMAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN 2011 2012 2013
    • 71. Public Comment Period 1
    • 72. G4 PCP 1 - Participants Total 1834Constituency Regional BreakdownBreakdown AFRICA 3% OCEANIA 5% ASIA Business NORTHERN 17% 29% AMERICA 15% Mediating LATIN Institution Civil Society AMERICA 57% Organization 19% 9% EUROPE 41% Financial Markets & Information Labor Users 1% 4%
    • 73. Participants by reporting relationship Latin North Total Africa Asia Europe Oceania America America N= 1834 64 317 744 343 266 100 % % % % % % %Reporter 41 44 41 42 37 41 44 34 31 37 31 41 34 25ConsultantAssurance 11 14 19 9 12 8 7 Report 37 28 35 34 43 45 39 reader Other 17 16 12 16 15 23 24
    • 74. Main outcomes1. Which elements stakeholders would like to see covered as a minimum in a sustainability report Q10 (1714)2. GRI should define and “recommend” a set of topics and indicators per sector - Q16 (1715), Q17 (1407), Q13 (879)3. GRI G4 should offer guidance on how to link sustainability reporting and IR - Q20 (1693)4. Topics – top 6: Business Ethics, Greenhouse Gas Emissions, Eco-Innovation, Life Cycle Assessment, Water, Biodiversity, - Q22 (1683)
    • 75. Six main work streamsTechnical standardization by editing Task ForceRevision of parts of G3(G3.1) or new content by Working GroupsHarmonization by Secretariat and TACG4 online by SecretariatXBRL G4 Taxonomy for G4 by SecretariatUpdating sector guidance (supplements)
    • 76. 1. Technical Editing Task Force “…to improve the technical quality of the GRIGuidelines, by introducing clear descriptions ofwhat is expected to be disclosed and alignment with well established standard practices.”Objective: the technical improvement willenable reports to be more technically robust,resulting in improved reporting processes, datagathering and auditing.
    • 77. 2. Revision of parts of G3(G3.1) or new content by WGs• Disclosure on management approach• Governance• Boundary• Application Levels• Supply Chain Inclusions and updates: Biodiversity, GHG, H&S, Corruption and five others (to be announced soon!!!)
    • 78. 3. Harmonization (and reference updating) – Secretariat and TAC• Selection of documents, reporting metrics and other materials to be included in the Guidelines as references• Guarantee that the final content is harmonized with main international reporting guidance (UNGC, OECD, etc.)• Guarantee connection to IIRC framework development IR G4
    • 79. 4. G4 on-line• To offer G4 also in a web based format• To make easier for beginners and experienced companies to follow GRI Guidance and define the content in their GRI report• To offer templates (to the ones interested in templates)• To offer link to data tagging systems• And more…
    • 80. 5. G4 – GRI XBRL taxonomy• GRI Taxonomy for G3(G3.1) launched in March – Launched a Voluntary Filing Program – GRI is looking for companies willing to tag their sustainability data using the GRI Taxonomy• This is the base for G4 XBRL version (and will help to improve technically G4 definitions)
    • 81. Reporting process with the Voluntary Filing Program Taxonomy Reporting Taxonomy Framework Instance file Data Reporters consumers GRI Voluntary Filing Program81 GRI Taxonomy Webinar – March 2012
    • 82. 6. Sector guidance in G4• To offer specific guidance on material topics/aspects to be reported per sector (GICS - 64)• It starts with research on currently identified material topics (current SS and other sources)• GRI will collaborate with organizations with focus on such analysis• Publish findings for Public Comment in May 2013 (details and timeline to be announced soon)
    • 83. G4 timeline 2011 2012 2013MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN We are here Launch May 2013!!! We are here! Revision / Editing Task Force Text Working Working Governance Public Comment Working Groups Public Comment Bodies give Preparatory Stage Groups Groups Final Edit LAUNCH Period 1 Meet Period 2 Final Vote Formed MeetMAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN 2011 2012 2013
    • 84. GRI G3 Guidelines Map The G3(.1) Guidelines Content • Reliability, Accuracy, Timeliness, Cla Strategy and Analysis rity, Comparability, Balance Quality Organizational Profile • Materiality Principles Report parameters • Stakeholder Inclusiveness Boundary • Completeness Governance, • Sustainability Contextand Disclosure Commitments Items Engagements Standard Disclosures Disclosure on Management Approach and Performance Indicators Labor Human Right Profile Society Economic Environmental Social Product ResponsibilitGRI CRESS webinar, February 2011
    • 85. Results Topics PCP Online Offline Total 1 Business Ethics. 1111 1111 2 Greenhouse Gas Emissions. 909 909Shortlised 3 Eco-innovation. 741 741based on 4 Primer Life Cycle Assessment (LCA). 741 741 Survey 5 Water. 690 690Results / 6 Biodiversity. 606 606Possibility 7to vote in Remuneration and performance-based pay. 539 539 PCP 8 Chemicals of Concern. 438 20 458 9 Plastics, Packaging and Waste. 387 387 10 High Impact Event Management and Preparedness. 337 337 11 Green Building Practices. 320 320 12 Disabled Persons. 286 286Added in 13 OHS 158 61 219 PCP by 14 Childrens Rights 4 80 84participan ts 15 Supply Chain Sustainability Management and Performance 47 47 16 Community Impacts and Development 19 19 17 Animal Rights & Welfare 17 2 19 Topics that scored less than 10 were not included in this list
    • 86. New topics or update suggestions• Already to be covered by WG or “references updating and harmonization”• To be addressed under “sector” guidance• There is no mature international discussion on how this topic could be reported on• There is mature international discussion on how this topic should be reported on
    • 87. Focus for profound revisions• Disclosure of management approach• Governance and ethics• Boundary• Minimum level of disclosure required• Supply Chain• Revision - topics: Biodiversity, GHG, H&S, Corruption, among many others And… more on material topics per sector!
    • 88. Public Comment Period 2Draft G4 will be publishedStarts 20 JuneGoal: more input from USHow to work with EPRI? G4 Webinar?
    • 89. Tool: A.nnotate.com
    • 90. Q&A & Discussion about G4 & PCP 2
    • 91. GRI resources & closing Venue, DateEnergy Sustainability Interest Group Spring Workshop, Los Angeles 24 May 2012
    • 92. The GRI Guidelines Free downloads: • G3.1 Guidelines • Sector Supplements (financial services, electric utilities, airports, mining and metals, oil and gas, events, media etc) https://www.globalreporting.org/reporting/late st-guidelines/g3-1-guidelines/Pages/default.aspx
    • 93. The GRI Content Index and ChecklistsFree downloads:• GRI Content Index templates• GRI ChecklistsGRI recommends organizations to publish the GRIIndex template, but any format is acceptable.https://www.globalreporting.org/reporting/reporting-support/reporting-resources/content-index-and-checklist/Pages/default.aspx
    • 94. GRI info sharingThe Get Started Videohttps://www.globalreporting.org/reporting/get-started/Pages/default.aspxLearning Publicationshttps://www.globalreporting.org/reporting/reporting-support/publications/Pages/default.aspxGRI Webinars OS – international OS - USA
    • 95. GRI Certified Training CoursesUSA Training PartnersCurrentBrownFlynn and Isos GroupTo be certifiedBoston College, BSD, Deloitte and ERMhttps://www.globalreporting.org/reporting/reporting-support/gri-training-and-workshops/certified-training-partners/Pages/United-States.aspx
    • 96. Sustainability disclosure database
    • 97. The GRI benchmarking toolreportedon and to what extent. Sector: Financial Services
    • 98. More involvement with GRI?In addition to getting started with GRI reporting,you can:• Join the Organizational Stakeholder Program• Become a US Sector Leader• Participate in Working Groups• Participate in Governance Structures
    • 99. Thank you! More information: Marjella Alma alma@globalreporting.org www.globalreporting.orgVenue, Date http://database.globalreporting.org