Implementing SDR (Sustainable Development Reporting) in Your Organisation Dr. Rodger Spiller Chief Consultant New Zealand ...
<ul><li>What is Sustainable Development? </li></ul><ul><li>SD is forms of progress that meet the needs of the present with...
<ul><li>SD encompasses three linked elements: </li></ul><ul><li>Economic Profit </li></ul><ul><li>Environmental Planet </l...
<ul><li>&quot;Our company is focussed on the highest possible standards of performance. By that, we don't just mean financ...
“ Recent developments from financial analysts and global competitive analysis demonstrate that sustainable development is ...
Sustainable  D evelopment   I s about ensuring   a better quality of life   for everyone,   now and for generations to come.
Sustainable New Zealand Scenario Leadership Forum February 2000
ECONOMY ENVIRONMENT SOCIETY Knowledge-intensive Responsive Niche-focused Clustered Proactive Educated Networked Diverse Ca...
Providing business leadership as a catalyst for change toward sustainable development, and  promoting eco-efficiency, inno...
Our Aims <ul><li>Business leadership </li></ul><ul><li>Demonstrate best practice  </li></ul><ul><li>Policy development </l...
<ul><li>What is Sustainable Development Reporting? </li></ul><ul><li>A clear picture of company SD values and principles <...
SD Management Framework Source: The Shell Report 1999 Vision  Core Purpose, Business Principles Demonstrate leadership Ide...
Steps in Developing a Strategy WBCSD CSR Report 2 Developing a CSR Strategy
NZBCSD SDR Project <ul><li>NZ Industry guide on the “why” and “how” for SDR </li></ul><ul><li>All member companies require...
<ul><li>Increasing return and reducing risk </li></ul><ul><li>Attracting and retaining employees </li></ul><ul><li>Improvi...
Increased Financial Return and Reduced Risk for Shareholders <ul><li>“ It hit us between the eyes when those two incidents...
The Business Case for SD Dow Jones Sustainability Index Leaders in SD - top 10% of companies in 68 sectors and 21 countrie...
Attracting and Retaining Employees <ul><li>&quot;The very strong company-wide staff support surprised us. For many the SDR...
Improving Customer Sales  and Loyalty <ul><li>&quot; A necessary process to measure company against company and thus ensur...
Growing Supplier Commitment
<ul><li>“ I believe that our experience will be a great asset as a large portion of New Zealand businesses is similar in s...
Contributing to Environmental Sustainability <ul><li>“ We simply realise that environment is our most important asset.  Ev...
Strengthening Community Relations <ul><li>“ We need to open up the books, reports with greater transparency than ever befo...
<ul><li>How much resource is available? </li></ul><ul><ul><li>Size of the organisation </li></ul></ul><ul><ul><li>Scope of...
Levels of development in SEAAR Stakeholder engagement ‘ Higher’ Development ‘ Lower’ Development High Low Type of SEAAR pr...
Principles of Reporting <ul><li>Completeness </li></ul><ul><li>Inclusivity </li></ul><ul><li>Consistency </li></ul><ul><li...
<ul><li>Review economic, social and environmental issues </li></ul><ul><li>Investigate these issues </li></ul><ul><li>Refl...
<ul><li>Sustainability indicators </li></ul><ul><ul><li>Financial measures </li></ul></ul><ul><ul><li>Narrative statements...
<ul><li>Assistance is available from: </li></ul><ul><ul><li>External facilitators and consultants </li></ul></ul><ul><ul><...
<ul><li>CEO statement </li></ul><ul><li>Profile of reporting organisation </li></ul><ul><li>Executive summary and key indi...
<ul><li>Economic </li></ul><ul><li>Environmental </li></ul><ul><li>Social </li></ul>Sustainable Development Indicators
<ul><li>Economic </li></ul><ul><ul><li>Percentage of contracts paid in accordance with agreed terms </li></ul></ul><ul><ul...
 
<ul><li>Environmental </li></ul><ul><ul><li>Direct energy use and energy consumption </li></ul></ul><ul><ul><li>Greenhouse...
 
<ul><li>Social </li></ul><ul><ul><li>Occupational accidents and deaths </li></ul></ul><ul><ul><li>Average hours of trainin...
 
<ul><li>Questionnaires </li></ul><ul><ul><li>Relatively inexpensive </li></ul></ul><ul><ul><li>Can reach geographically di...
<ul><li>Offers: </li></ul><ul><ul><li>Added credibility to the information reported </li></ul></ul><ul><ul><li>Increased a...
<ul><li>Verification  is a formal principle-based process to provide an opinion on compliance </li></ul><ul><li>Assurance ...
<ul><li>Independence is critical – those providing verification or assurance should not be involved in preparing or provid...
<ul><li>Present in the most accessible form depending on the target audience and the resources available in your organisat...
<ul><li>Reporting has highlighted the need for companies to develop and implement: </li></ul><ul><ul><li>New strategies, o...
<ul><li>Reporting helps stakeholders, such as: </li></ul><ul><ul><li>The financial community to more accurately assess the...
<ul><li>Virtual reporting </li></ul><ul><li>Real-time reporting </li></ul><ul><li>Calls for mandatory reporting </li></ul>...
Global Reporting Initiative and AA1000 Process Issues Other Social/ Ethical Issues Social/ Ethical Issues –Governance Envi...
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  • The NZBCSD doesn’t work in isolation, but is part of the regional network of the World BCSD. The WBCSD is a coalition of about 150 international companies drawn from more than 30 countries and 20 industrial sectors. To illustrate the latest thinking on sustainable development from the WBCSD, the report “Sustainability through the markets – seven keys to success” was released earlier this year. The report presents an agenda for moving beyond micro-initiatives to advance sustainability, by improving markets to provide the poor with opportunities, and better reflect the environmental value of goods and services.
  • View SDR Presentation to IIR Conf Apr 03

    1. 1. Implementing SDR (Sustainable Development Reporting) in Your Organisation Dr. Rodger Spiller Chief Consultant New Zealand Business Council for Sustainable Development IIR Financial Reporting Conference 15 April 2003
    2. 2. <ul><li>What is Sustainable Development? </li></ul><ul><li>SD is forms of progress that meet the needs of the present without compromising the ability of future generations to meet their needs. </li></ul>
    3. 3. <ul><li>SD encompasses three linked elements: </li></ul><ul><li>Economic Profit </li></ul><ul><li>Environmental Planet </li></ul><ul><li>Social People </li></ul>
    4. 4. <ul><li>&quot;Our company is focussed on the highest possible standards of performance. By that, we don't just mean financial performance. We also mean environmental and social performance. We see no contradiction between these three measures of performance. They are entirely complementary - and the companies that recognise that first, will deliver themselves a significant competitive advantage.&quot; </li></ul><ul><li>Craig Norgate, CEO, Fonterra </li></ul><ul><li>8 April 2002 </li></ul>
    5. 5. “ Recent developments from financial analysts and global competitive analysis demonstrate that sustainable development is a hard-nosed business opportunity. It’s a key component of business competitiveness and license to operate.” WBCSD President Bj ö rn Stigson
    6. 6. Sustainable D evelopment I s about ensuring a better quality of life for everyone, now and for generations to come.
    7. 7. Sustainable New Zealand Scenario Leadership Forum February 2000
    8. 8. ECONOMY ENVIRONMENT SOCIETY Knowledge-intensive Responsive Niche-focused Clustered Proactive Educated Networked Diverse Caring Stretch goals for: Waste reduction Air and water quality Energy efficiency Biodiversity Restoration Everyone walks the talk Wealth is created sustainably Kiwis are confident & entrepreneurial •Leadership •Strategic Framework •Goals •Indicators •Metrics New Zealand For Ever
    9. 9. Providing business leadership as a catalyst for change toward sustainable development, and promoting eco-efficiency, innovation and responsible entrepreneurship.
    10. 10. Our Aims <ul><li>Business leadership </li></ul><ul><li>Demonstrate best practice </li></ul><ul><li>Policy development </li></ul><ul><li>Global outreach </li></ul>
    11. 11. <ul><li>What is Sustainable Development Reporting? </li></ul><ul><li>A clear picture of company SD values and principles </li></ul><ul><li>A vision of how the company approaches sustainble development </li></ul><ul><li>A transparent picture of performance information on enconomic, environmental and social dimensions </li></ul><ul><li>The management response to performance – the commitment to improvement </li></ul><ul><li>A description of the company’s contribution to the sustainable development of society </li></ul><ul><li>One part of an overall management system designed to deliver a company’s strategic objectives consistent with sustainable development </li></ul><ul><li>The information on a company’s SD values, objectives and aspirations through a public commitment to continuous improvement ona timeline with clear targets. </li></ul>
    12. 12. SD Management Framework Source: The Shell Report 1999 Vision Core Purpose, Business Principles Demonstrate leadership Identify stakeholder risks and Prioritize risks and opportunities and set objectives Review and incorporate learning Report performance Monitor & measure Carry out plans ENGAGEMENT ENGAGEMENT Define strategy, targets & plans, mobilize resources opportunities Reporting
    13. 13. Steps in Developing a Strategy WBCSD CSR Report 2 Developing a CSR Strategy
    14. 14. NZBCSD SDR Project <ul><li>NZ Industry guide on the “why” and “how” for SDR </li></ul><ul><li>All member companies required to produce an SDR within 3 years of becoming a member </li></ul><ul><li>Website area ( www. nzbcsd .org. nz ) includes industry guide, reporting facility and other “learning by sharing” tools. </li></ul>
    15. 15. <ul><li>Increasing return and reducing risk </li></ul><ul><li>Attracting and retaining employees </li></ul><ul><li>Improving customer sales and loyalty </li></ul><ul><li>Growing supplier commitment </li></ul><ul><li>Contributing to environmental sustainability </li></ul><ul><li>Strenthening community relations </li></ul>Why produce an SDR?
    16. 16. Increased Financial Return and Reduced Risk for Shareholders <ul><li>“ It hit us between the eyes when those two incidents (disposal of the Brent Spar oil platform and the execution of Ken Saro Wiwa in Nigeria) to which Shell was linked became front-page news around the world. Both were glaring examples of the need to communicate clearly with all audiences. In both cases we simply didn’t. We had developed blind spots for emerging stakeholders and important issues. Simply we had lost the ability to listen. And to act effectively on our principles and values.” </li></ul><ul><li>Ed Johnson, Chairman, Shell New Zealand. </li></ul>
    17. 17. The Business Case for SD Dow Jones Sustainability Index Leaders in SD - top 10% of companies in 68 sectors and 21 countries Annualised return = 12.5% over 5 years Annualised return = 15.8% over 5 years
    18. 18. Attracting and Retaining Employees <ul><li>&quot;The very strong company-wide staff support surprised us. For many the SDR process is a tangible benefit in working for Meridian.&quot; </li></ul><ul><li>Meridian Energy </li></ul>
    19. 19. Improving Customer Sales and Loyalty <ul><li>&quot; A necessary process to measure company against company and thus ensure a level playing field&quot;. </li></ul><ul><li>Rob Fenwick, Managing Director, Living Earth </li></ul>
    20. 20. Growing Supplier Commitment
    21. 21. <ul><li>“ I believe that our experience will be a great asset as a large portion of New Zealand businesses is similar in size to Interface Agencies ie small (10 people or less) </li></ul><ul><li>Because it is important to me and the credibility of my company, I am trying to ensure that our first Triple Bottom Line report does not preach and has information that gives a true snapshot of where we really are at in regards to sustainability. I want … [to] be sure that our stakeholders understand that we are asking them to help us become sustainable and hold us to account by setting benchmarks that we will be measured by in future years” </li></ul><ul><li>Robb Donze, CEO, Interface Agencies. </li></ul>
    22. 22. Contributing to Environmental Sustainability <ul><li>“ We simply realise that environment is our most important asset. Everything we do must aim to protect that asset. If we tamper with the soil or alter the climate – we don’t have a business”. </li></ul><ul><li>Richard Riddiford, CEO, </li></ul><ul><li>Palliser Estate Wines of Martinborough </li></ul>
    23. 23. Strengthening Community Relations <ul><li>“ We need to open up the books, reports with greater transparency than ever before, especially in this environment in which business is faced. We need to maintain an ongoing dialogue with an ever broader range of stakeholders, not just employees and shareholders, but also neighborhood communities.” </li></ul><ul><li>Philip Watts, Chairman of the Committee of Managing Directors, Royal Dutch/Shell Group of Companies. </li></ul>
    24. 24. <ul><li>How much resource is available? </li></ul><ul><ul><li>Size of the organisation </li></ul></ul><ul><ul><li>Scope of the work to be done </li></ul></ul><ul><ul><li>Level of commitment within the organisation </li></ul></ul><ul><ul><li>In-house versus outsourced work </li></ul></ul><ul><li>What is the scope of the reporting? </li></ul><ul><ul><li>Operational coverage: all or some? </li></ul></ul><ul><ul><li>Extent of product life-cycle </li></ul></ul><ul><ul><li>Time period </li></ul></ul>Key Questions to Address
    25. 25. Levels of development in SEAAR Stakeholder engagement ‘ Higher’ Development ‘ Lower’ Development High Low Type of SEAAR processes High Low Scope of SEAAR process – stakeholders, geographies, operating units, issues <ul><li>Planning - Vision & Targets </li></ul><ul><li>Accounting </li></ul><ul><li>Auditing </li></ul><ul><li>Reporting </li></ul><ul><li>Embedding </li></ul><ul><li>Planning - Vision </li></ul>
    26. 26. Principles of Reporting <ul><li>Completeness </li></ul><ul><li>Inclusivity </li></ul><ul><li>Consistency </li></ul><ul><li>Accuracy </li></ul><ul><li>Clarity </li></ul><ul><li>Neutrality </li></ul><ul><li>Timeliness </li></ul><ul><li>Auditability </li></ul><ul><li>Transparency </li></ul><ul><li>Sustainability context </li></ul>
    27. 27. <ul><li>Review economic, social and environmental issues </li></ul><ul><li>Investigate these issues </li></ul><ul><li>Reflect on mission, values and objectives </li></ul><ul><li>Consider risks </li></ul><ul><li>Assess environmental impacts </li></ul><ul><li>Engage with stakeholders </li></ul>Identifying Sustainable Development Issues
    28. 28. <ul><li>Sustainability indicators </li></ul><ul><ul><li>Financial measures </li></ul></ul><ul><ul><li>Narrative statements </li></ul></ul><ul><ul><li>‘ Natural’ units of measurement </li></ul></ul>Developing Key Performance Indicators
    29. 29. <ul><li>Assistance is available from: </li></ul><ul><ul><li>External facilitators and consultants </li></ul></ul><ul><ul><li>Existing business networks </li></ul></ul><ul><ul><li>Other organisations’ SDRs </li></ul></ul><ul><ul><li>Internal and external stakeholders </li></ul></ul><ul><ul><li>Reporting frameworks, e.g., GRI </li></ul></ul>Developing Key Performance Indicators
    30. 30. <ul><li>CEO statement </li></ul><ul><li>Profile of reporting organisation </li></ul><ul><li>Executive summary and key indicators </li></ul><ul><li>Vision and strategy </li></ul><ul><li>Policies, organisation and management systems </li></ul><ul><li>Performance </li></ul>Global Reporting Initiative (GRI) Recommended Report Content
    31. 31. <ul><li>Economic </li></ul><ul><li>Environmental </li></ul><ul><li>Social </li></ul>Sustainable Development Indicators
    32. 32. <ul><li>Economic </li></ul><ul><ul><li>Percentage of contracts paid in accordance with agreed terms </li></ul></ul><ul><ul><li>Total wages, salaries and benefits paid </li></ul></ul><ul><ul><li>Taxes paid </li></ul></ul><ul><ul><li>Description of indirect economic impact </li></ul></ul>Examples of Sustainable Development Indicators
    33. 34. <ul><li>Environmental </li></ul><ul><ul><li>Direct energy use and energy consumption </li></ul></ul><ul><ul><li>Greenhouse gas emissions </li></ul></ul><ul><ul><li>Total amount of waste by type and destination </li></ul></ul><ul><ul><li>Description and quantification of major environmental impacts at each stage of the life-cycle of principle products and services </li></ul></ul>Examples of Sustainable Development Indicators
    34. 36. <ul><li>Social </li></ul><ul><ul><li>Occupational accidents and deaths </li></ul></ul><ul><ul><li>Average hours of training per year </li></ul></ul><ul><ul><li>Equal employment opportunity policies and programmes </li></ul></ul><ul><ul><li>Involvement and/or contributions to projects of value to the greater community </li></ul></ul>Examples of Sustainable Development Indicators
    35. 38. <ul><li>Questionnaires </li></ul><ul><ul><li>Relatively inexpensive </li></ul></ul><ul><ul><li>Can reach geographically dispersed stakeholders </li></ul></ul><ul><ul><li>Can be anonymous </li></ul></ul><ul><li>Interviews </li></ul><ul><li>Focus groups </li></ul><ul><li>Stakeholder meetings </li></ul><ul><li>‘ Factual’ data </li></ul>Gathering Indicator Data
    36. 39. <ul><li>Offers: </li></ul><ul><ul><li>Added credibility to the information reported </li></ul></ul><ul><ul><li>Increased assurance to management that what they say is supported by evidence </li></ul></ul><ul><ul><li>An additional check to ensure the plausibility of collected data and minimise errors </li></ul></ul><ul><ul><li>Increased strength and quality in the report preparation process </li></ul></ul>Verification and Assurance
    37. 40. <ul><li>Verification is a formal principle-based process to provide an opinion on compliance </li></ul><ul><li>Assurance is third-party judgements about all or some of the steps undertaken and outcomes generated through the SDR process </li></ul><ul><li>Perspectives are quotes and statement from external parties about any aspect of the SDR process or the performance reported </li></ul>Verification and Assurance
    38. 41. <ul><li>Independence is critical – those providing verification or assurance should not be involved in preparing or providing advice on the report. </li></ul><ul><li>Essential to clearly outline what has been verified or assured and how. </li></ul>Verification and Assurance
    39. 42. <ul><li>Present in the most accessible form depending on the target audience and the resources available in your organisation </li></ul><ul><li>Internet and printed reports is often the most useful combination </li></ul><ul><li>The report can be publicised on websites, in staff customer newsletters and in advertisements </li></ul>Publishing the Report
    40. 43. <ul><li>Reporting has highlighted the need for companies to develop and implement: </li></ul><ul><ul><li>New strategies, objectives and policies around economic, environmental, social issues, impacts and behaviour </li></ul></ul><ul><ul><li>New management systems and approaches that are consistent with managing impacts and developing opportunities </li></ul></ul><ul><ul><li>New behaviours and practices in certain areas such as energy usage, waste minimisation and training </li></ul></ul>Review and Learning for Continuous Improvement
    41. 44. <ul><li>Reporting helps stakeholders, such as: </li></ul><ul><ul><li>The financial community to more accurately assess the risks associated with organisations </li></ul></ul><ul><ul><li>Suppliers to recognise opportunities for contributing to an organisation’s commitments </li></ul></ul><ul><ul><li>Stakeholders to make informed choices about dealing with an organisation </li></ul></ul>Review and Learning for Continuous Improvement
    42. 45. <ul><li>Virtual reporting </li></ul><ul><li>Real-time reporting </li></ul><ul><li>Calls for mandatory reporting </li></ul><ul><li>Extension of SDR into the value-chain </li></ul><ul><li>Good governance </li></ul>Emerging Trends – Globally and Locally
    43. 46. Global Reporting Initiative and AA1000 Process Issues Other Social/ Ethical Issues Social/ Ethical Issues –Governance Environmental Issues <ul><li>Report on Customer and Community Issues </li></ul><ul><li>Report on corporate ethical standards: transparency; human rights, political activities; bribery & corruption </li></ul><ul><li>Report on financial information, reinvestment activities, taxes and other economic impacts </li></ul>Social/Ethical Issues - Labour <ul><li>Report on child labour, freedom of association, health & safety, compensation and benefits, workforce diversity, etc </li></ul>Financial issues <ul><li>Report on product performance at selected life stages </li></ul><ul><li>Detailed identification of indicators </li></ul><ul><li>Minimum elements of verification statement defined </li></ul><ul><li>Reporting principles, formats, issues and indicators </li></ul>GRI goal: A common framework for enterprise level reporting on the linked aspects of sustainability Planning Accounting Auditing Reporting Embedding Stakeholder Engagement <ul><li>Report on stakeholder relationships </li></ul>

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