GRI and Bloomberg: the value of ESG data


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GRI and Bloomberg: the value of ESG data

  1. 1. Why and how to produce your first GRI sustainability report This training is provided by GRI Focal Point USA in collaboration with US Sector Leader Bloomberg Rina Levy, ESG Analyst – Bloomberg, USA Daniela Duca, ESG Analyst – Bloomberg, LND Marjella Alma - Manager External Relations – GRI USAVenue, Date +1 917 690 0909 Webinar GRI Focal Point USA & Bloomberg, 20 April 2012
  2. 2. Vision of the Global Reporting Initiative A sustainable global economy where organizations manage their economic, environmental, social and governance performance and impacts responsibly and report transparently. Question: what essential information did we forget to account for in the past?
  3. 3. Outline for todayPresentation by BloombergGRI TrainingGRI ResourcesQ&A
  4. 4. APRIL // 20 // 2012 ESG 300,000+ // Environmental, Social, Governance
  5. 5. Most Bloomberg ESG customers are financial professionals in major financial centers CUSTOMER SEGMENTS BY CUSTOMER SEGMENTS BY FIRM TYPE SALES REGION Pension Funds // Environmental, Social, Governance Insurance 3% Companies 3% AL Government FF 3% Agencies TO 4% 4% 4% DU 5% London Hedge Money 30% Managers SF Funds 29% 5% 7% Brazil Corporation 6% s 8% Singapore 6% Banks 9% Brokers 21% Hong Kong Universities 9% New York 12% 28%33
  6. 6. …capturing standardized cross-sector and industry-specific metrics. Relative number of hits per indicatorNumber of Board Meetings for the Percent, June-Sep 2011 Year » 170+ fields GRI Criteria Compliance downloadable // Environmental, Social, Governance % Women on Board » ESG Disclosure most Number of Employees - CSR used fieldNumber of Independent Directors » Environmental fields UN Global Compact Signatory get 43% of the hits CEO Duality » 52 sector specific fields and more to Size of the Board come % Independent Directors ESG Disclosure Score 0.0 2.0 4.0 6.0 8.0 FA ESG <GO>
  8. 8. STORY? DOES RAW DATA TELL THE WHOLE// Environmental, Social, Governance
  9. 9. RAW DATA ENOUGH?// Environmental, Social, Governance
  10. 10. TRANSPARENCY EXPANDING ON THE RAW DATA // Environmental, Social, Governance
  11. 11. PEER COMPARISON// Environmental, Social, Governance
  12. 12. …over time, GRI reporters outperformthe benchmark // Environmental, Social, GovernanceHFA<GO>
  13. 13. ESG VALUATION// Environmental, Social, Governance
  14. 14. Rina Levy, MBA Daniela Duca, MScBloomberg LP-ESG Analyst Bloomberg LP-ESG Analyst+609 279 7046 +44 20 7073 // Environmental, Social, Governance
  15. 15. Recent research shows that.. sustainability reporting is de factoThe largest and most law for businesscomprehensive surveyof CR reporting trendspublished sustainability reporting enhances financial valueVast coverage of 3,400+companies combined reporting leads to IRMost comprehensive data integrity is essentialstudy since the firstreport in 1993 leaders choose external assuranceKPMG International Corporate Responsibility Reporting Survey 2011
  16. 16. Business case for reporting Competitive Opportunities advantage Innovation Attract Improved investment reputation Improved business and trust models StakeholderInternal Attract talent External dialogue Waste, CO2 and water reduction Governmental and stock exchange regulation Risks
  17. 17. Supporters of the business case• Principles for Responsible Investment (PRI) [2006] – Currently represents over $22 Trillion in investment capital – Close to 1000 signatories• Investor Network on Climate Risk (INCR) [2003] – Currently represents over $9 Trillion in investment capital – 90+ members• Carbon Disclosure Project (CDP) [2002] – Currently represents over $71 Trillion in investment capital – act on behalf of 551 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
  18. 18. Mainstream involvement
  19. 19. How does GRI help?GRI MissionTo make sustainability reporting standard practice byproviding guidance and support to organizations.
  20. 20. The GRI Guidelines GRI Principles: These guide the content and quality of your reporting. Materiality, boundary-setting, inclusiveness, stakeholder engagement etc. GRI reporting elements: 1. Profile Disclosures Strategy, About, Governance. 2. Disclosures on Management Approach EC, EN, LA, HR, SO, PR 3. Performance Indicators EC, EN, LA, HR, SO, PR
  21. 21. Display data with a GRI content indexAs it:• gives you flexibility to reach different stakeholders in different ways.• gives you flexibility to reference already existing content.• enhances ease of access for your stakeholders.• communicates your Application Level.
  22. 22. A GRI report..makes use of theG3 or G3.1Guidelinesincludes aGRI Content Indexand preferablydeclares anApplication Level
  23. 23. GRI Application Levels
  24. 24. Rationale - Application LevelsObjective classification system for G3/G3.1 reports • Signifies to what extent the G3/G3.1 Guidelines have been used in a report. • Meaning: Tells which set & how many disclosures have been addressed in the reporting.A pathway for GRI reporters for incrementallyimproving GRI reporting
  25. 25. GRI Application Level Check
  26. 26. “+” reports More than 70 percent of the G250 and 64 percent of N100 engage major accountancy firms.Reinforce credibility among stakeholdersImprove quality of reported information Improve reporting processes Primarily responding to legal requirements Drive performance 0% 5% 10% 15% 20% 25% 30% 35% Source: KPMG International Survey of Corporate Responsibility Reporting 2011
  27. 27. Trends
  28. 28. GRI reporting in the USA200180160140120100 USA80604020 0 yr99 yr00 yr01 yr02 yr03 yr04 yr05 yr06 yr07 yr08 yr09 yr10
  29. 29. 2000 GRI reporting - worldwide18001600 November 2011: The GRI Guidelines are used by 80 percent of the G250140012001000 Rest of Worl USA800600400200 0 yr99 yr00 yr01 yr02 yr03 yr04 yr05 yr06 yr07 yr08 yr09 yr10
  30. 30. American GRI reportersGRI’s Sector Leaders:
  31. 31. GRI Resources
  32. 32. The GRI Guidelines Free downloads: • G3.1 Guidelines • Sector Supplements (financial services, electric utilities, airports, mining and metals, oil and gas, events, media etc) st-guidelines/g3-1-guidelines/Pages/default.aspx
  33. 33. The GRI Content Index and ChecklistsFree downloads:• GRI Content Index templates• GRI ChecklistsGRI recommends organizations to publish the GRIIndex template, but any format is acceptable.
  34. 34. GRI info sharingThe Get Started Video Publications Webinars OS – international OS - USA
  35. 35. GRI Certified Training CoursesUSA Training PartnersCurrentBrownFlynn and Isos GroupTo be certifiedBoston College, Deloitte and ERM
  36. 36. GRI EventsMonthly Organizational Stakeholder WebinarsUS Organizational Stakeholder WebinarsGeneral webinars Friday 20 April – How to create your first GRI report? GRI Focal Point USA featuring US Sector Leader Bloomberg
  37. 37. Sustainability disclosure database
  38. 38. The GRI benchmarking toolreportedon and to what extent. Sector: Financial Services
  39. 39. 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
  40. 40. Thank you! More information: http://database.globalreporting.orgVenue, Date