Sustainability Reporting Trends “Game Changing Developments” September 2012 Mike Wallace Director, Focal Point USA Global Reporting Initiative firstname.lastname@example.org @M_A_WallaceVenue, Date
Why would anyone want to voluntarily report? - Respond to Stakeholders - Demonstrate Leadership - Document ROI
Increasing Stakeholders and Demand Modern Due Diligence
Range of Terminology• 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 Non-Financial Reporting
Of all these stakeholders, who is doing the mostsignificant due diligence? - Financial Market Activity - Customer Interests - Regulatory Developments
Financial Market Activity
Shareholder Initiatives & Coalitions• Principles for Responsible Investment (PRI)  – Currently represents over $30 Trillion in investment capital – 1000+ signatories• Investor Network on Climate Risk (INCR)  – Currently represents over $10 Trillion in investment capital – 100+ members• Carbon Disclosure Project (CDP)  – Currently represents over $71 Trillion in investment capital – act on behalf of 550+ 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
Who else is looking?
Stock Exchange ActivityMay 2010 January 2011
Market Evolution300,000+ data terminalsglobally5,000+ companies andclimbingSustainability Aspects• Emissions• Energy Consumption• Human Rights• Policies• Board Make-UpBuilt around GRI
Bloomberg ESG Peer Comparison
Supply Chain Developments • Sept 2011 – GSA • Oct 2011 – MS • Jan 2012 - Apple
Supply Chain Developments Customer Training Suppliers GRI Stakeholders
Regulatory Developments "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
Performance RecognitionGRI Reporters Presence: • 95% of the Dow Jones Sustainability Index • 78% of the FTSE4Good • 70% of the Global 100 • 70% of the NASDAQ OMX CRD Sustainability Index
Performance Over TimeMSCI World & GRI 2002 to 2012 S&P 500 & GRI 2001 to 2011
What you should know about GRI?
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.
GRI: Global Network Organization *Business Academia *Civil Society *Mediating institutions Governments *Labor *Financial markets
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.
GRI Global Harmonization
What are we seeing?
Corporate Sustainability: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.
Country Level SpecificsUSA – 9th place from 74% up to 83% in 3 years 2008 versus 2011 of N100 companies 2
US Reporting Trends (Absolute figures) Sustainability Reports in the USA GRI G3 + G3.1 GRI reference Non-GRI sustainability reportUS GRI data partner 46% growth in absolute number of GRI reports (w/ 47 index) 2010 - 2011 23 And counting!! 273 187 141 119 71 2007 2008 2009 2010 2011
Data Integrity 100% 90% 80% 21 112 415 41 70% 170 60% 167 50% Not assured Externally assured 40% 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
Growing International Trends “Integrated Reporting” 2011 2010 13% 21% Not integrated Integrated 87% 79%*Sustainability Disclosure Database data from 1 February 2012
American GRI reportersGRI Sector Leaders:
What’s on the horizon – G4?
GRI – Due Process SC + WG TAC BoDBoD Public Public Comment Comment Period Period
G4 - Stepping Stone Towards Integrated Reporting Sustainability Reporting Sustainability Disclosure Mainstreaming G4 Integrated Reporting Other paths to mainstreaming
View Forward G4 timeline - Working Groups and 2nd PCP 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 Text Revision / Editing Task Force We are here We are here! 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 Mee tMAY 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 G4 Working Groups • Supply Chain Disclosure • Governance & Remuneration • Disclosure on Management • Boundary Approach • Application Level
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%
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
Cipriani Wall Street, 55 Wall Street, New York, NY October 2-3, 2012Event brought to you by: www.COMMITForum.com
Thank you Mike Wallace Director, Focal Point USA Global Reporting Initiative email@example.com Twitter: M_A_Wallace Linked In: http://www.linkedin.com/in/mikewallaceVenue, Date