Sustainability Reporting Trends              “Game Changing Developments”              June 2012              Mike Wallace...
What is the current   situation?
Range of Terminology•   CSR   - Corporate Social Responsibility•   CC    - Corporate Citizenship•   SD    - Sustainable De...
What is GRI’s role?
GRI’s Vision & MissionVisionA sustainable global economy where organizationsmanage their economic, environmental, social a...
GRI: Global Network Organization                    *Business       Academia                   *Civil                     ...
The GRI Guidelines    Environmental    • EN 3 - Direct energy consumption by primary       energy source    Labor    • LA ...
What are we seeing?
Corporate Sustainability:A Progress Report                                             October 2011        •   Reviewed 34...
Global Growth in Reporting                             1
Country Level SpecificsUSA – 9th place from 74% up to 83% in 3 years       2008 versus 2011 of N100 companies             ...
US Reporting Trends                                  (Absolute figures)                          Sustainability Reports in...
Data Integrity     100%      90%      80%                     21                112                415                    ...
Growing International Trends                       “Integrated Reporting”                                                 ...
American GRI reportersGRI Sector Leaders:
Who really cares?
Increasing Stakeholders and Demand  Modern    Due Diligence
GRI Reporting by Sector (2010)   300   250   200   150   100    50     0*Sustainability Disclosure Database data from 1 Fe...
Shareholder Initiatives & Coalitions•    Principles for Responsible Investment (PRI) [2006]      – Currently represents ov...
Signatories to the PRI (US)    1000+ international signatoriesPARTIAL LIST OF ASSET OWNERS (200):•   AFL-CIO Reserve Fund ...
Signatories to the PRI (US)    1000+ international signatoriesPARTIAL LIST OF INVESTMENT MANAGERS:•    BlackRock          ...
Mainstream Involvement
How are they conducting    due diligence?
Sustainability PerformanceGRI Reporters Presence:  • 95% of the Dow Jones Sustainability Index  • 78% of the FTSE4Good  • ...
Market Evolution300,000+ data terminalsglobally5,000+ companies andclimbingSustainability Aspects• Emissions• Energy Consu...
Bloomberg ESG Peer Comparison
Environmental Criteria (2010)Company     Environmental       Total Energy      Total GHG Emission    Water Consumption    ...
Performance Over TimeMSCI World & GRI 2002 to 2012                   S&P 500 & GRI                    2001 to 2011
Global Developments & Trends• SROs - Stock Exchanges• Regulatory Developments  – National & State Regulation  – Supply Cha...
Stock Exchange ActivityMay 2010          January 2011
Regulatory Developments "More governments are making sustainability           reporting mandatory.“• 142 regulatory instru...
Supply Chain Developments                 • Sept 2011 – GSA                 • Oct 2011 – MS                 • Jan 2012 - A...
Supply Chain Developments                            Customer                 Training          Suppliers                 ...
GRI Global Harmonization
•   ABB                      Association Activity                                  •   ITT•   Accenture                   ...
Association Activity
What’s on the horizon –         G4?
Six main work streamsTechnical standardization by editing Task ForceRevision of parts of G3(G3.1) or new content by Workin...
G4 - Stepping Stone Towards    Integrated Reporting             Sustainability             Reporting                      ...
GRI – Due Process                       SC +             WG        TAC    BoDBoD                   Public        Public   ...
View Forward                                G4 timeline - Working Groups and 2nd PCP                        2011          ...
View ForwardG4 timeline - Working Groups and 2nd PCP                            •   Anti-corruption                       ...
G4 PCP 1 - Participants                                        Total 1834Constituency                                     ...
More involvement with GRI?In addition to getting started with GRI reporting,you can:• Join the Organizational Stakeholder ...
Cipriani Wall Street, 55 Wall Street, New York, NY                                                             October 2-3...
Thank you              Mike Wallace              Director, Focal Point USA              Global Reporting Initiative       ...
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Sustainability Reporting Trends March 2012

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See the latest on how the market is viewing sustainability information, measuring performance and how financial and sustainability performance relate.

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Sustainability Reporting Trends March 2012

  1. Sustainability Reporting Trends “Game Changing Developments” June 2012 Mike Wallace Director, Focal Point USA Global Reporting Initiative wallace@globalreporting.orgVenue, Date
  2. What is the current situation?
  3. 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
  4. What is GRI’s role?
  5. 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.
  6. GRI: Global Network Organization *Business Academia *Civil Society *Mediating institutions Governments *Labor *Financial markets
  7. 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.
  8. What are we seeing?
  9. 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.
  10. Global Growth in Reporting 1
  11. Country Level SpecificsUSA – 9th place from 74% up to 83% in 3 years 2008 versus 2011 of N100 companies 1
  12. 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
  13. 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
  14. Growing International Trends “Integrated Reporting” 2011 2010 13% 21% Not integrated Integrated 87% 79%*Sustainability Disclosure Database data from 1 February 2012
  15. American GRI reportersGRI Sector Leaders:
  16. Who really cares?
  17. Increasing Stakeholders and Demand Modern Due Diligence
  18. GRI Reporting by Sector (2010) 300 250 200 150 100 50 0*Sustainability Disclosure Database data from 1 February 2012
  19. Shareholder Initiatives & Coalitions• Principles for Responsible Investment (PRI) [2006] – Currently represents over $30 Trillion in investment capital – 1000+ 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
  20. Signatories to the PRI (US) 1000+ 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
  21. Signatories to the PRI (US) 1000+ 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
  22. Mainstream Involvement
  23. How are they conducting due diligence?
  24. Sustainability PerformanceGRI 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
  25. Market Evolution300,000+ data terminalsglobally5,000+ companies andclimbingSustainability Aspects• Emissions• Energy Consumption• Human Rights• Policies• Board Make-UpBuilt around GRI
  26. Bloomberg ESG Peer Comparison
  27. Environmental Criteria (2010)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 2009 Apple --- 12.40 --- n/a --- 9542.00 --- n/a --- n/a CA, Inc. n/a n/a --- --- n/a n/a --- --- --- --- Dell 37.98 40.31 676.00 619.90 366.19 406.25 1596.00 1683.00 52.61 100.00 EMC --- 54.26 --- 932.51 --- 386.26 --- --- --- --- Fujitsu 55.04 55.04 6638.90 7713.89 273.00 428.00 23106.00 24569.00 32.44 29.71 HP --- 44.19 --- 4046.00 --- 1951.00 --- 7647.00 --- 124.48 Intel --- 46.51 --- 5110.00 --- n/a --- 30379.32 --- 44.48 IBM --- 41.09 --- 6323.06 --- n/a --- --- --- 87.33Microsoft 11.63 n/a --- --- --- --- --- --- --- ---Toshiba 53.49 56.59 15398.33 15856.11 3078.00 3435.00 52930.00 55800.00 2610.00 291.00
  28. Performance Over TimeMSCI World & GRI 2002 to 2012 S&P 500 & GRI 2001 to 2011
  29. Global Developments & Trends• SROs - Stock Exchanges• Regulatory Developments – National & State Regulation – Supply Chain Implications• Supply Chain Developments• Harmonization – Associations, Initiatives & Institutions
  30. Stock Exchange ActivityMay 2010 January 2011
  31. 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
  32. Supply Chain Developments • Sept 2011 – GSA • Oct 2011 – MS • Jan 2012 - Apple
  33. Supply Chain Developments Customer Training Suppliers GRI Stakeholders
  34. GRI Global Harmonization
  35. • ABB Association Activity • ITT• Accenture  Johnson & Johnson• Abbott  Johnson Control• Alcoa  Life Technologies Corp• American Electric Power  McKesson Corp.• AT&T  Merck• CB Richard Ellis Group Inc.  Motorola• CH2MHill Companies, Ltd.  NexTera (Formerly FPL)• Chevron  Office Depot• Chubb  Owens Corning• Citi  PepsiCo• Coca-Cola  Pfizer• Conoco Philips  Praxair• Cummins  Proctor & Gamble Co.• Darden  Ryder• Deloitte  Sara Lee• Dow Chemical  SAP USA• Duke Energy  SAS• DuPont  Southern Company• Eastman Kodak Co.  Siemens Corp• EMC  Target Corporation• Exxon Mobil  Tyco• Freeport McMoran  UAL Corporation• General Electric  Weyerhauser• General Motors  Whirlpool Corporation• HSBC  Williams• IBM  Xerox• International Paper
  36. Association Activity
  37. What’s on the horizon – G4?
  38. 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)
  39. G4 - Stepping Stone Towards Integrated Reporting Sustainability Reporting Sustainability Disclosure Mainstreaming G4 Integrated Reporting Other paths to mainstreaming
  40. GRI – Due Process SC + WG TAC BoDBoD Public Public Comment Comment Period Period
  41. 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
  42. View ForwardG4 timeline - Working Groups and 2nd PCP • Anti-corruption • Biodiversity • GHG • OH&S • June 20 to Sept. 20, 2012
  43. 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%
  44. 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
  45. Cipriani Wall Street, 55 Wall Street, New York, NY October 2-3, 2012Event brought to you by: www.COMMITForum.com
  46. Thank you Mike Wallace Director, Focal Point USA Global Reporting Initiative wallace@globalreporting.org Twitter: M_A_Wallace Linked In: http://www.linkedin.com/in/mikewallaceVenue, Date

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