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

1. Sustainability Reporting Trends
“Game Changing Developments”
June 2012
Mike Wallace
Director, Focal Point USA
Global Reporting Initiative
wallace@globalreporting.org
Venue, 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 & Mission
Vision
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.

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 Specifics
USA – 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 report
US 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 reporters
GRI 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 signatories
PARTIAL 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 signatories
PARTIAL 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 Performance
GRI 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 Evolution
300,000+ data terminals
globally
5,000+ companies and
climbing
Sustainability Aspects
• Emissions
• Energy Consumption
• Human Rights
• Policies
• Board Make-Up
Built 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 --- --- --- 87.33
Microsoft 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 Time
MSCI 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 Activity
May 2010 January 2011

31. Regulatory Developments
"More governments are making sustainability
reporting mandatory.“
• 142 regulatory instruments addressing
sustainability reporting exist in over 30
countries
• 65% are classified as mandatory, the rest
voluntary
• 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 streams
Technical standardization by editing Task Force
Revision of parts of G3(G3.1) or new content by Working Groups
Harmonization by Secretariat and TAC
G4 online by Secretariat
XBRL G4 Taxonomy for G4 by Secretariat
Updating 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 BoD
BoD
Public
Public Comment
Comment Period
Period

41. View Forward
G4 timeline - Working Groups and 2nd PCP
2011 2012 2013
MAY 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 t
MAY 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 Forward
G4 timeline - Working Groups and 2nd PCP
• Anti-corruption
• Biodiversity
• GHG
• OH&S
• June 20 to
Sept. 20, 2012

43. G4 PCP 1 - Participants
Total 1834
Constituency Regional Breakdown
Breakdown 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, 2012
Event 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/mikewallace
Venue, Date