Comes in all shapes & sizes CSR - Corporate Social Responsibility SD - Sustainable Development ES - Environmental Sustainability BE - Business Ethics CE - Corporate Ethics CG - Corporate Governance ESG - Environmental, Social & Governance IR - Integrated reporting What is your “Footprint”?
Increasing Stakeholders and Demand Modern Due Diligence
What’s a solution?
GRI’s Vision & Mission GRI’s Vision A sustainably global economy where organizations manage their economic, environmental, social and governance performance and impacts responsibly and report transparently.
GRI’s Mission To make sustainability reporting standard practice by providing guidance and support to organizations.
Global Reporting Initiative Non-profit, originated in United States in 1997 Reputable, respected, credible multi-stakeholder approach Many more reporters have made reference to the Guidelines. www.globalreporting.org
The GRI Guidelines Environmental
EN 3 - Direct energy consumption by primary energy source
LA 7 - Rates of injury, occupational diseases, lost days and absenteeism, and number of work related fatalities by region.
HR 4 - Total number of incidents of discrimination and actions taken
PR 6 - Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, ad sponsorship.
EC 4 – Significant financial assistance received from government.
G3 Content Index New & Improved
What are we seeing?
Fortune 250 Survey October 2008 80% of Global Fortune 250 companies now release CR data
Doubled since 2005 - up from 37%
Increasingly driven by economic concerns
74% of top 100 US companies published corporate responsibility (CR) information in 2008 either as part of their annual financial report or as a separate document Reasons cited:
70% cited ethical considerations as primary driver for CR disclosures
As a buyer, what information do you expect?When you buy a house, a car, a product or service . . . What information do you deserve? Is it useful & comparable?
Shareholder Initiatives & Coalitions Principles for Responsible Investment (PRI)  Currently represents over $22 Trillion in investment capital 800+ signatories Investor Network on Climate Risk (INCR)  Currently represents over $9 Trillion in investment capital 90+ members Carbon Disclosure Project (CDP)  Currently represents over $71 Trillion in investment capital act on behalf of 551 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
Signatories to the PRI (US)800+ 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 System 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)800+ international signatories PARTIAL LIST OF INVESTMENT MANAGERS: BlackRock Calvert Investments CBRE Investors Domini Social Investments JPMorgan Asset Management Kohlberg Kravis Roberts & Co, LLP Krull & Company Northern Trust Global Investments Prudential Real Estate Investors Russell Investments TD Asset Management Inc. The Townsend Group TIAA - CREF
Capital Group International
Clear Bridge Advisors
MFS Investment Management
Principal Global Investors
T. Rowe Price
Tower Capital Asset Management LP
Can any of this really be measured? How would you do this?
Bloomberg Survey “With over 300,000 users, the Bloomberg Professional service provides a great opportunity and platform for you to share information with current and potential investors concerning your Sustainability or Corporate Social Responsibility program.” “Our survey is based on the guiding principles of the GRI framework.”
NASDAQ OMX Sustainability Index
Dow Jones – Ind. Avg. vs. SI Source: Bloomberg
Bloomberg – Reporters vs. Non
What about the automotive sector?
Chrysler in dates 1998: Chrysler and its subsidiaries entered into a partnership dubbed a "merger of equals" with German-based Daimler-Benz AG, creating the combined entity DaimlerChrysler AG Daimler subsequently acquired Chrysler 2007: DaimlerChrysler announced the sale of 80.1% of Chrysler Group to American private equity firm Cerberus Capital Management 2009: Chrysler Group LLC emerged from a Chapter 11 reorganization bankruptcy and was sold to the Italianautomaker Fiat 2011: Fiat bought out the remaining U.S. Treasury’s stake in Chrysler for $500 million increasing its ownership of the automaker to 52%. BOTH FIAT & DAIMLER ARE CURRENTLY A GRI REPORTER