Sustainability Reporting Trends March 2012

Sustainability Reporting Trends “Game Changing Developments” March 2012 Mike Wallace Director, Focal Point USA Global Reporting Initiative wallace@globalreporting.org +1 212 339 0356Venue, Date

What is the current situation?

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

How does GRI help?

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.

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 Harmonization – Local & Global

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.

Who are these Reporters?

GRI Reporters(North American Sample)

US Business Roundtable• ABB • 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

Who really cares?

Increasing Stakeholders and Demand Modern Due Diligence

Shareholder Initiatives & Coalitions• Principles for Responsible Investment (PRI) [2006] – Currently represents over $30 Trillion in investment capital – 900+ 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

Signatories to the PRI (US) 900+ 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

Signatories to the PRI (US) 900+ 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

Mainstream Involvement

How would you conduct due diligence?Can any of this really be measured?

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

Market Evolution300,000+ data terminalsglobally5,000+ companies andclimbingSustainability Aspects• Emissions• Energy Consumption• Human Rights• Policies• Board Make-UpBuilt around GRI

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

Sustainability PerformanceMSCI World & GRI 2002 to 2012 S&P 500 & GRI 2001 to 2011

GRI Developments & Trends• SROs - Stock Exchanges• Regulatory Developments – National & State Regulation – Supply Chain Implications• Supply Chain Developments

Mainstream UptakeMay 2010 January 2011

Global Regulatory Review "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 • Sept 2011 – GSA • Oct 2011 – MS • Jan 2012 - Apple

Supply Chain Ripple Customer Training Suppliers GRI Stakeholders

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

Thank you Mike Wallace Director, Focal Point USA Global Reporting Initiative wallace@globalreporting.org +1 212 339 0356 Twitter: M_A_Wallace Linked In: http://www.linkedin.com/in/mikewallaceVenue, Date

http://blog.slideshare.net	3168
http://www.greenbiz.com	683
http://localhost:49644	316
http://csr-reporting.blogspot.com	313
http://sustainablebusinessforum.com	204
http://blog.slideshare.com	137
http://www.csr-reporting.blogspot.com	89
http://360.winhosting.rodax.ro	69
http://test.loyallet.com	59
http://csr-reporting.blogspot.de	46
http://translate.googleusercontent.com	27
http://ayudamutuapadresenprocesodeduelo.blogspot.com	15
http://localhost	11
http://csr-reporting.blogspot.com.au	10
http://bsdconsulting.wordpress.com	6
http://csr-reporting.blogspot.co.uk	6
http://csr-reporting.blogspot.in	5
http://csr-reporting.blogspot.ca	4
http://local.rschooltoday	4
http://www.slideshare.net	4
http://www.linkedin.com	3
http://207.46.192.232	3
http://csr-reporting.blogspot.fr	3
https://twitter.com	2
http://webcache.googleusercontent.com	2
http://twitter.com	2
http://tweetedtimes.com	2
http://a0.twimg.com	1
http://newsrivr.com	1
http://csr-reporting.blogspot.mx	1
http://csr-reporting.blogspot.it	1

Sustainability Reporting Trends March 2012

by Mike Wallace - GRI Focal Point USA on Jun 28, 2011

Accessibility

Categories

Tags

Upload Details

Usage Rights

31 Embeds 5,197

Statistics

Sustainability Reporting Trends March 2012 — Presentation Transcript