Sustainability reporting

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In order to effectively implement and then develop sustainability initiatives its important to be clear on how to report around the issues. The Footprint Forum came together to discuss sustainability reporting best practice

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Sustainability reporting

  1. 1. ♯footprintforum Sustainable Responsible Business SUSTAINABLE REPORTING 28TH NOVEMBER 2012
  2. 2. Nick Fenwicke-Clennell CEO ♯footprintforum Sustainable Responsible Business
  3. 3. Tom Beagent Sustainability Reporting – so what? ♯footprintforum Sustainable Responsible Business
  4. 4. Sustainability Reporting – so what? Footprint Forum 28 November 2012 www.pwc.co.uk
  5. 5. PwC Slide 5 November 2012Sustainability Reporting - so what?
  6. 6. PwC Sustainability reporting – so what? • Why should businesses care about sustainability reporting? • Protecting and enhancing value • Looking beyond traditional reporting Slide 6 November 2012Sustainability Reporting - so what?
  7. 7. PwC Slide 7 November 2012Sustainability Reporting - so what? Source: Footprint Network Annual Report 2011
  8. 8. PwC Slide 8 November 2012Sustainability Reporting - so what? Source: Footprint Network Annual Report 2011
  9. 9. PwC Rising business awareness of natural capital risk 1,000 500 250 100 50 Fiscal crisis Extreme consumer price volatility Slowing Chinese economy Corruption Terrorism Unlikely Likely Very likely Regulatory failures Asset price collapse Geopolitical conflict Extreme energy price volatility Expectedimpact(BillionUSD) Likelihood over next 10 years Environmental risks 2009 2011 Climate change Flooding Storms and cyclones Air pollution Water security Biodiversity loss Economic and geopolitical risks 2011 Source: World Economic Forum Global Risks Report (2009 – 2011) Slide 9 November 2012Sustainability Reporting - so what?
  10. 10. PwC                       Slide 10 November 2012Sustainability Reporting - so what?
  11. 11. PwC Slide 11 November 2012Sustainability Reporting - so what?
  12. 12. “Sustainability is the single biggest business opportunity of the 21st century” Lee Scott – CEO Walmart
  13. 13. Total impact reporting
  14. 14. PwC Slide 14 November 2012Sustainability Reporting - so what? Source: WWF 2012 Living Planet Report
  15. 15. PwC PwC’s Total Impact Measurement Framework Business activities Employees Communities Suppliers Consumers Governments Social impact Economic impact Environmental impact Tax impact Slide 15 November 2012Sustainability Reporting - so what?
  16. 16. PwC Example: PUMA’s Environmental P&L Slide 16 November 2012Sustainability Reporting - so what?
  17. 17. PwC Current sustainability reporting: New understanding through an E P&L 11,032 m3 of water 1,302 tonnes of CO2e 89 tonnes of waste 32 tonnes of NOx So what? Which impacts is more significant ? Is this performance good, bad or ugly? How does the impact relate to the local context? Is this material for my business? Slide 17 November 2012Sustainability Reporting - so what?
  18. 18. PwC Losses – damage to the environment Profits – benefits to the environment PUMA’s E P&L An Environmental P&L account is a means of placing a monetary value on the environmental impacts along the entire supply chain of a given business. the value to society lost/ gained from our environmental impacts Total impact of bringing products to market Slide 18 November 2012Sustainability Reporting - so what?
  19. 19. PwC What impacts are covered? GHG emissions Water consumption Air pollutionLand use Waste Slide 19 November 2012Sustainability Reporting - so what?
  20. 20. PwC What impacts are covered? Manufacturing: Apparel, shoes and accessories Tier 1 Tier 3 Tier 2 Outsourcing: Embroiderers, printers, outsole producers Processing: Tanneries, chemical companies, oil refiners Raw materials: Cotton farming, cattle ranching, oil drilling Operation s Operations: Offices, shops, business travel, warehouses, logistics Slide 20 November 2012Sustainability Reporting - so what?
  21. 21. PwC The results Slide 21 November 2012Sustainability Reporting - so what?
  22. 22. Climate change Example valuation methodology: Climate change Impacts Activity Greenhouse gases Ecosystem changes Fuel use Agriculture Electricity generation Deforestation Loss of economic productivity Health impacts
  23. 23. Site: A B C D E Water use (m3) 100 1,000 300 800 1,700 Traditional reporting Site: A B C D E Water use ($) 50 2,300 700 900 1,800 EP&L values Site: A B C D E Water use per profit ($/100$) 3.7 8.5 11.2 6.0 1.5 Impact intensity by profit Example: Water use – which factory should I work with? Using the E P&L in operational risk management
  24. 24. PwC Example: British Land’s wider socio- economic impacts Slide 24 November 2012Sustainability Reporting - so what?
  25. 25. PwC Summary socio reporting Indirect drivers Socio-economic drivers direct drivers Slide 25 November 2012Sustainability Reporting - so what?
  26. 26. PwC Detailed socio reporting Direct drivers •  Summary data is supported by detailed analysis Slide 26 November 2012Sustainability Reporting - so what?
  27. 27. PwC Detailed socio reporting Direct drivers •  Current impact and future impact being reported •  Regional impact as well of business assessed Slide 27 November 2012Sustainability Reporting - so what?
  28. 28. PwC Example: Rio Tinto Tax Reporting Slide 28 November 2012Sustainability Reporting - so what?
  29. 29. PwC Tax issues UK Uncut Action Aid Dodd Frank Act Country by country Christian Aid Media
  30. 30. PwC Slide 30 November 2012Sustainability Reporting - so what?
  31. 31. PwC And finally? Is this the future of measurement & reporting? Slide 31 November 2012Sustainability Reporting - so what?
  32. 32. Will reporting IMPACTS be the next BIG thing? In 2002, only 30 of the UK’s FTSE 100 companies had a standalone CR report and only 7% engaged with stakeholders. Today, nearly 80% of the world’s largest 250 companies report on CR performance.
  33. 33. Thank you! This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers LLP, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. © 2012 PricewaterhouseCoopers LLP. All rights reserved. In this document, "PwC" refers to PricewaterhouseCoopers LLP (a limited liability partnership in the United Kingdom), which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity. Tom Beagent +44 (0) 7973 565380 tom.beagent@uk.pwc.com
  34. 34. ♯footprintforum Sustainable Responsible Business
  35. 35. Lucinda Hensman Corporate Responsibility Reporting at Coca-Cola Enterprises ♯footprintforum Sustainable Responsible Business
  36. 36. Corporate Responsibility Reportingat Coca- Cola Enterprises LucindaHensman   AssociateDirector,CorporateResponsibility   &SustainabilityCommunica;ons  
  37. 37. Coca-Cola Enterprises: a local business • • • • • • $8.3 billion revenue 30 billion servings annually to 170 million consumers 6 consecutive years of volume and operating income growth 17 manufacturing facilities 13,250 employees 40+ brands
  38. 38. • Holistic approach – sustainability integrated in core business • Taking broad responsibility – up and down the value chain • Compelling vision – of sustainable future • Strong Leadership and governance • Provision of innovative solutions – to global problems • Leading edge aspirations – leaders aim high and set targets that they may not know how to achieve • Transparency – honest communication • Focusing on material issues – in areas of expertise but must be best practice across all areas • Collaborating and networking Stakeholder Roundtable
  39. 39. Our Sustainability Plan
  40. 40. Our Commitment Energy and Climate Change We aim to reduce the average carbon footprint across all of our products, in all packaging formats, by a third. We will reduce the carbon footprint of the drink in your hand by a third by delivering carbon reductions throughout our entire value chain. Asignificant stretch requiring significant value chain collaboration – we don’t have all the answers Six major elements – ingredients, packaging, manufacturing, transportation, refrigeration and recycling. We aim to deliver carbon reductions while growing our business
  41. 41. Stage 1 Carbon Reporting – Our Journey
  42. 42. Carbon Reporting – Our Journey Stage 2 Source: CCE CRS Report 2011
  43. 43. Our carbon footprint 2007-2011 (metric tonnes CO2e) Manufacturing Cold drinks equipment CCE fleet Third party distribution Other (including business travel) Total 857,000 898,000 867,000 840,000 769,000 2007 2008 2009 2010 2011 Carbon Reporting– CCE Operations Source: CCE CRS Report 2011
  44. 44. CarbonFootprintCO2et A carbon allowance is a measure of the maximum amount of Greenhouse Gas emissions that should occur over a set period Responsibility for carbon emissions shared across CCE, based on emission sources Annual carbon allowances set for each BU Steering Groups develop carbon reductions plans 2007 2020 Carbon allowances adopted as way of reducing carbon emissions Not a legal requirement but a leading edge concept CCE is the 1st bottler within the Coca-Cola System to introduce carbon allowances Internal CarbonAllowances
  45. 45. Stage 3 Carbon Reporting – Our Journey
  46. 46. Carbon Reporting – Product Source: CCE
  47. 47. Stage 4 Carbon Reporting – Our Journey
  48. 48. Supplier Engagement • Sustainability – key part of our supplier   rela3onships   • Supplier Scorecard -­‐ 25% on sustainability   • Annual Supplier Sustainability Summit   • Annual ‘CRS    Supplier    of    the    Year’    Award   • Carbon Reduc3on challenge issued to   suppliers   • New partnership with EcoVadis  
  49. 49. A system of Microsoft Excel-based tools and databases to assess actual and forecast performance against the overall 1/3 commitment plus the underlying sub-commitments of CCE’s Sustainability Plan. Carbon Reporting – Value Chain Tool Modelling for all elements of the Value Chain
  50. 50. Acomplex agenda
  51. 51. Four key elements: • Protect our water sources • Reduce our use of water • Recycle 100% of our waste water. • Replenish the water used in our beverages, where sourced from areas of water stress. We will look at where our use of water has the greatest impact across our value chain, work with our suppliers to minimize impacts and ensure that the sugar we use is sustainable. Our commitment Water Stewardship We want to lead the beverage industry in water efficiency and manufacture 1 liter of product with 1.2 liters water by 2020. We will set the standard for water efficiency, establish a water sustainable operation and minimize water impacts throughout our entire value chain.
  52. 52. Water Reporting – own operations Source: CCE CRS Report 2011
  53. 53. Water Reporting - Value Chain Source: CCE CRS Report 2010
  54. 54. Water Reporting - Product Source: TCCC Environment Review 2010
  55. 55. CCE CRS Reporting 2012 •7 externally audited CRS Reports   •40 page corporate report, <20 page country reports   •Strongly aligned design  
  56. 56. • Adopt a value chain approach • Understand the data • Keep track of methodologies • Set stretch commitments o Align with stakeholder expectations • Transparency is key – it is ok not to know all the answers! Conclusions
  57. 57. Follow us on our journey   www.cokecce.com   www.facebook.com/CokeCCE   @CokeCCE, @JoeFranses   @LucindaHensman  
  58. 58. ♯footprintforum Sustainable Responsible Business

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