GRI Update: The Latest Trends in Sustainability Reporting Boston College CCC February 13, 2013 Atlanta, Georgia Mike Wallace, Director Global Reporting Initiative, Focal Point USA email@example.com Marjella Alma, Manager External RelationsVenue, Date Global Reporting Initiative, Focal Point USA firstname.lastname@example.org
What is the current situation?
What do we know?•We have 1 planet•We know it’s acreage (or is it hectares)?•We know how much it has produced•We know how much we’d like it to produce
What do we know?
What do we know?• CSR - Corporate Social Responsibility• CC - Corporate Citizenship• SD - Sustainable Development• ES - Environmental Sustainability• BE - Business Ethics• CE - Corporate Ethics• CG - Corporate Governance• ESG - Environmental, Social & Governance• IR - Integrated reporting• SV - Shared Value• II - Impact Investing
What is GRI’s role?
GRI’s Vision & MissionVision 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.
GRI Guidelines GRI Principles: These guide the content and quality of your reporting. Materiality, boundary-setting, inclusiveness, stakeholder engagement etc. GRI reporting elements: 1. Profile Disclosures Strategy, About, Governance. 2. Disclosures on Management Approach EC, EN, LA, HR, SO, PR 3. Performance Indicators EC, EN, LA, HR, SO, PR
Sample Indicators EN 3 - Direct energy consumption by primary energy source LA 7 - Rates of injury, occupational diseases, lost days and absenteeism, and number of work related fatalities by region. HR 6 - Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor. PR 6 - Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, ad sponsorship. EC 6 – Policy, practices and proportion of spending on locally-based suppliers at significant locations.
Who is using GRI?
A Progress Report October 2011• Reviewed 3400 companies representing the national leaders from 34 countries around the world, including the 250 largest global companies• Ninety-five percent of the 250 largest companies in the world (G250 companies) now report on their corporate responsibility (CR) activities, two-thirds of non-reporters are based in the US.• CR reporting has gained ground within the Top 100 companies in each of the 34 countries surveyed.• The total number of reporting N100 companies increased by 11 percentage points, to 64 percent in 2011.• Eighty percent of G250 and 69 percent of N100 companies are now aligning to GRI reporting standards.
GRI Reporting in the US (2007 – 2011)300 Relative growth in GRI reporting in the US250 ’07 – ’08 ‘08 – ’09 ‘09 – ’10 ’10 – ’11 67% 21% 30% 42%20015010050 0 2007 2008 2009 2010 2011 *Based on Sustainability Disclosure Database data from 4 February 2013
Is there measurable ROI?
Investor Coalitions• Principles for Responsible Investment (PRI)  – Currently represents over $22 Trillion in investment capital – Close to 1000 signatories• Investor Network on Climate Risk (INCR)  – Currently represents over $9 Trillion in investment capital – 90+ members• Carbon Disclosure Project (CDP)  – Currently represents over $71 Trillion in investment capital – act on behalf of 551 institutional investors• Institutional Investors Group on Climate Change (IIGCC)  – Currently represents $6 Trillion in investment capital – 70 members• Interfaith Center on Corporate Responsibility (ICCR)  – Currently represents over $100 Billion – 300 members
Financial Market Uptake
Sustainability PerformanceMSCI World & GRI 2002 to 2012 S&P 500 & GRI 2001 to 2011
GRI Reporting - Does it matter?
What are some unique developments?
Stock Exchange ActivityMay 2010 January 2011
Public Agency Uptake "More governments are making sustainability reporting mandatory.“• 142 regulatory instruments addressingsustainability reporting exist in over 30countries• 65% are classified as mandatory, the restvoluntary• United States • WH CEQ - EO 13514 • USPS, US Army, GSA, etc…. • SEC • Dodd-Frank • CA Transparency on Trafficking & Slavery
Supply Chain Ripple
What’s the NorthAmerican plan & how can you help?
GRI: North American Presence• Governance Bodies – US BoD, Advisory Group• 6 Sector Leaders• 100+ Organizational Stakeholders• 6 Certified Training Partners• GRI Master Classes/G4 workshops• Regional Conferences• Webinars• (Research) projects
Increase of Network (OS & SL)
HELP: Reduce, Reuse, Recycle
Survey Fatigue & SMEs Customer Training Suppliers GRI Stakeholders
Regional Capacity Building Program
Sustainability Disclosure Database
GRI Benchmarking Database• Depicts who reports & to what extent• Provides country & sector filtering capabilities• Identifies & benchmarks material issues most reported database.globalreporting.org
What you should know about G4?
How the GRI network does it?Through a “Due Process” ! SC + WG TAC BoD BoD Public Public Comment Comment Period Period
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
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)
Revisions• Disclosure of management approach• Governance and remuneration• Boundary-setting (Value Chain)• Application Levels• Supply Chain• Revision - topics: GHG, Anti-Corruption,• And… material topics per sector!
Status• GRI Working Groups have finalized their work• Two Public Comment Periods have been succesfully completedNext steps• Approval by Stakeholder Council and TAC• Approval by Board• Release on 22 May 2013
GRI CONFERENCE 22-24 May 2013, AmsterdamVenue, Date
Global Conference and N-A events11 April Pre-Conference event at NYSE21 May North American outing, seminar and cocktailparty, NYSE Euronext, Amsterdam22-24 May Global Conference, Amsterdam Public North-American event & networking dinnerJune Post Conference events in the USThere are sponsorship opportunities
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
Thank you! More information: www.globalreporting.org http://database.globalreporting.org Mike Wallace, Director Global Reporting Initiative, Focal Point USA email@example.com Marjella Alma, Manager External RelationsVenue, Date Global Reporting Initiative, Focal Point USA firstname.lastname@example.org