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Measuring Sustainability
Margie Flynn
BrownFlynn
BrownFlynn At A Glance
• Award-winning corporate responsibility and sustainability consulting firm founded in January 1996...
Your Partner, Our Services
BrownFlynn is a
corporate responsibility and
sustainability consulting firm
advising companies ...
Agenda
• Measuring Sustainability
– Trends: Sustainability Data, Ratings, Frameworks
• Sustainability Reporting
– Benefits...
Measure What Matters
“You can’t manage what you can’t measure.”
– Peter Drucker, Management Consultant, Educator and Autho...
Ethical Business & Sustainability
Reporting
• 76% of the 2012 World’s Most Ethical Companies write sustainability reports,...
Proliferation of Sustainability Data
• The evolution of Big Data technology is enabling the proliferation and disseminatio...
Explosive Growth of Ratings,
Rankings & Indices
21
108
182
0
50
100
150
200
2000* 2010* 2014**
Number of Ratings, Rankings...
Frameworks, Agencies and Rankings
BrownFlynn 2014. All Rights Reserved
Sustainability Reporting Frameworks
BrownFlynn 2014. All Rights Reserved
What is IR?
• The International Integrated Reporting Council (IIRC):
– Global coalition of regulators, investors, companie...
Stock Exchanges Support
Sustainability Reporting
Mandatory Non-Financial Disclosure Recommended Non-Financial Disclosure
J...
What is CDP?
• CDP is a nonprofit that works to transform the way the world does business
to prevent dangerous climate cha...
Growth of CDP Responses
• As of 2013, 5000+ organizations (81% of the Global 500; 70% of the S&P
500) in 72 countries meas...
CDP Investor Members
• CDP has 722 institutional investors representing $87 trillion in assets.
BrownFlynn 2014. All Right...
Global Reporting Initiative (GRI)
The Institution The Process
The Framework The Report
Global Reporting
Initiative (GRI)
a...
GRI Report Content Principles
The report should cover Aspects that reflect the organization’s significant economic,
enviro...
GRI Report Quality Principles
The report should reflect positive and negative aspects of the organization’s performance
to...
GRI Aspects
Environmental Labor Practices
& Decent Work
Human Rights
• Materials
• Energy
• Water
• Biodiversity
• Emissio...
Who is Using GRI?
BrownFlynn 2014. All Rights Reserved
How does CDP complement the GRI
process?
• CDP Content:
– CDP questions correspond to disclosure topics
within the GRI fra...
Why Report Sustainability
Information?
• G250 companies view reputation and ethical
considerations as key reasons to repor...
Supply Chain Pressure for
Reporting
• Companies are shifting their supply chain engagements from authoritative to
collabor...
Supply Chain Collaboration
Through Reporting
• Companies who produce sustainability reports see an increase in supply chai...
GRI: The Leading Sustainability
Reporting Framework
BrownFlynn 2014. All Rights Reserved
The 2013 CRO Top 100
Johnson Controls
Campbell Soup
IBM
Bristol-Myers Squibb
Mattel
3M
Kimberly-Clark
Hewlett-Packard
Nike...
Reporting as a Management Tool
1. Discovery
• Project Launch Meeting
• Background (internal)
• Benchmarking (external)
2. ...
Sustainability Report Best Practices
Examples
• Allstate’s Interactive Materiality Matrix
• American Electric Power’s Stak...
Award-Winning Sustainability
Reports
• 2011/2010 Best Report: Coca-Cola Enterprises Inc
• 2011/2010 Best 1st Time Report: ...
Measure What Matters
“In God we trust, all others
must bring data.”
– W. Edwards Deming, Statistician
BrownFlynn 2014. All...
Thank You for Attending!
Margie Flynn
Principal and Co-Founder
440-484-0100, x3
margief@brownflynn.com
For more informatio...
Q & A
BrownFlynn 2014. All Rights Reserved
Measuring Sustainability: APPENDIX
Margie Flynn
BrownFlynn
What is SASB?
• The Sustainability Accounting Standards Board (SASB) is a
nonprofit organization that establishes industry...
Ford Connects Big Data with
Environmental Impacts
• “Analytics permeates almost every aspect of sustainability at Ford,
he...
Big Data Inform Solutions
“You can have data without information, but you cannot
have information without data.”
– Daniel ...
Loras College 2014 Business Analytics Symposium | Margie Flynn: Measuring Sustainability
Loras College 2014 Business Analytics Symposium | Margie Flynn: Measuring Sustainability
Loras College 2014 Business Analytics Symposium | Margie Flynn: Measuring Sustainability
Loras College 2014 Business Analytics Symposium | Margie Flynn: Measuring Sustainability
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Loras College 2014 Business Analytics Symposium | Margie Flynn: Measuring Sustainability

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Through this presentation, Margie Flynn will walk you through measuring sustainability (trends in sustainability data, ratings and frameworks) and sustainability reporting benefits, global reporting initiative and best practices.

For more information on the Loras College 2014 Business Analytics Symposium, the Loras College MBA in Business Analytics or the Loras College Business Analytics Certificate visit www.loras.edu/mba or www.loras.edu/bigdata.

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Loras College 2014 Business Analytics Symposium | Margie Flynn: Measuring Sustainability

  1. 1. Measuring Sustainability Margie Flynn BrownFlynn
  2. 2. BrownFlynn At A Glance • Award-winning corporate responsibility and sustainability consulting firm founded in January 1996 • 100% of our business is derived from sustainability consulting, communications and training services • First U.S.-certified Global Reporting Initiative training organization and a GRI Organizational Stakeholder • Since 2006, we have advised clients on the GRI process, producing GRI-based reports and utilizing the framework as a robust management tool • A Silver Consultancy Partner for the Carbon Disclosure Project (CDP) • Founding member of U.S. Business Council for Sustainable Development • Extensive experience in guiding regional, national and global clients on their sustainability journeys • A women-owned company (W/FBE) and a DBE (Disadvantaged Business Enterprise) BrownFlynn 2014. All Rights Reserved
  3. 3. Your Partner, Our Services BrownFlynn is a corporate responsibility and sustainability consulting firm advising companies on: • Integrating responsible practices into their business strategies • Communicating these practices internally and externally for bottom-line impact • Training to build skills and engage associates CONSULTING Sustainability and Corporate Responsibility Advisors COMMUNICATIONS TRAINING We advise you on your journey We help you communicate your successes We train you/your team along the journey • Sustainability Strategy • Goal Setting • Materiality • Stakeholder Engagement • Research and Analysis • Facilitation • Stakeholder Communications • Branding • Sustainability Reporting • Community Outreach • CDP, DJSI and WDP Responses • Executive Sessions • Customized Employee Sessions • Open Enrollment Classes • Webinars BrownFlynn 2014. All Rights Reserved
  4. 4. Agenda • Measuring Sustainability – Trends: Sustainability Data, Ratings, Frameworks • Sustainability Reporting – Benefits – Global Reporting Initiative – Best Practices • Q&A BrownFlynn 2014. All Rights Reserved
  5. 5. Measure What Matters “You can’t manage what you can’t measure.” – Peter Drucker, Management Consultant, Educator and Author BrownFlynn 2014. All Rights Reserved
  6. 6. Ethical Business & Sustainability Reporting • 76% of the 2012 World’s Most Ethical Companies write sustainability reports, of which 90% use the GRI framework. Sources: Ethisphere Website, G&A Institute Research 2012 BrownFlynn 2014. All Rights Reserved
  7. 7. Proliferation of Sustainability Data • The evolution of Big Data technology is enabling the proliferation and dissemination of sustainability data. • As a result, stakeholders are expecting companies to be more transparent about their measurement and management of environmental, social and governance (ESG) performance. BrownFlynn 2014. All Rights Reserved
  8. 8. Explosive Growth of Ratings, Rankings & Indices 21 108 182 0 50 100 150 200 2000* 2010* 2014** Number of Ratings, Rankings and Indices *According to Research by Sustainability, “Rate the Raters” 2010 **Lastest count according to research of CSRHub resouces by BrownFlynn BrownFlynn 2014. All Rights Reserved
  9. 9. Frameworks, Agencies and Rankings BrownFlynn 2014. All Rights Reserved
  10. 10. Sustainability Reporting Frameworks BrownFlynn 2014. All Rights Reserved
  11. 11. What is IR? • The International Integrated Reporting Council (IIRC): – Global coalition of regulators, investors, companies, standard setters, the accounting profession and NGOs – Views that communication about businesses' value creation should be the next step in the evolution of corporate reporting – Over 100 business in the IIRC Pilot Programme Business Network • The IR Framework – Released in December 2013 – Voluntary standards, adopting integrated thinking for cohesive and efficient reporting – Trialed in over 25 countries BrownFlynn 2014. All Rights Reserved
  12. 12. Stock Exchanges Support Sustainability Reporting Mandatory Non-Financial Disclosure Recommended Non-Financial Disclosure Johannesburg Stock Exchange Brazilian Stock Exchange Sweden Singapore Stock Exchange Denmark Shanghai Stock Exchange Malaysia (Burse Malaysia) European Commission Argentina (Buenos Aires) France London Stock Exchange (2013) NASDAQ Securities and Exchange Board of India NYSE Euronext BrownFlynn 2014. All Rights Reserved
  13. 13. What is CDP? • CDP is a nonprofit that works to transform the way the world does business to prevent dangerous climate change and protect natural resources • Annual questionnaire was launched in 2000 to promote disclosure as an investment tool and agent of sustainable improvement • CDP now covers: – Climate Change – Water – Supply Chain – Forest – Cities – Carbon Action BrownFlynn 2014. All Rights Reserved
  14. 14. Growth of CDP Responses • As of 2013, 5000+ organizations (81% of the Global 500; 70% of the S&P 500) in 72 countries measure and disclose their emissions and climate change strategies. Source: CDP BrownFlynn 2014. All Rights Reserved
  15. 15. CDP Investor Members • CDP has 722 institutional investors representing $87 trillion in assets. BrownFlynn 2014. All Rights Reserved
  16. 16. Global Reporting Initiative (GRI) The Institution The Process The Framework The Report Global Reporting Initiative (GRI) a non-profit, multi-stakeholder resource a framework for improving the quality of sustainability disclosures a sustainability management process a set of basic disclosure requirements for a sustainability report History of GRI Video BrownFlynn 2014. All Rights Reserved
  17. 17. GRI Report Content Principles The report should cover Aspects that reflect the organization’s significant economic, environmental and social impacts; or substantively influence the assessments and decisions of stakeholders. The organization should identify its stakeholders, and explain how it has responded to their reasonable expectations and interests. The report should present the organization’s performance in the wider context of sustainability. The report should include coverage of material Aspects and their Boundaries, sufficient to reflect significant economic, environmental and social impacts, and to enable stakeholders to assess the organization’s performance in the reporting period. Materiality Stakeholder Inclusiveness Sustainability Context Completeness BrownFlynn 2014. All Rights Reserved
  18. 18. GRI Report Quality Principles The report should reflect positive and negative aspects of the organization’s performance to enable a reasoned assessment of overall performance. Select, compile and report information consistently. Information should be presented in a manner that enables stakeholders to analyze changes in the organization’s performance over time, and compare to other organizations. The reported information should be sufficiently accurate and detailed for stakeholders to assess the organization’s performance. Report on a regular schedule so that information is available in time for stakeholders to make informed decisions. The organization should make information available in a manner that is understandable and accessible to stakeholders using the report. The organization should gather, record, compile, analyze and disclose information and processes used in the preparation of a report in a way that they can be subject to examination and that establishes the quality and materiality of the information. Balance Comparability Accuracy Timeliness Clarity Reliability BrownFlynn 2014. All Rights Reserved
  19. 19. GRI Aspects Environmental Labor Practices & Decent Work Human Rights • Materials • Energy • Water • Biodiversity • Emissions • Effluents and Waste • Products and Services • Compliance • Transport • Overall • Supplier Environmental Assessment • Environmental Grievance Mechanisms • Investment • Non-discrimination • Freedom of Association & Collective Bargaining • Child Labor • Forced /Compulsory Labor • Security Practices • Indigenous Rights • Assessment • Supplier Human Rights Assessment • Human Rights Grievance Mechanisms • Training and Education • Employment • Labor/Management Relations • Occupational Health & Safety • Diversity & Equal Opportunity • Equal Remuneration for Men and Women • Supplier Assessment for Labor Practices • Labor Practices Grievance Mechanisms Product ResponsibilitySocietyEconomic • Economic Performance • Market Presence • Indirect Economic Impacts • Procurement Practices • Local Communities • Anti-Corruption • Public Policy • Anti-competitive Behavior • Compliance • Supplier Assessment for Impacts on Society • Grievance Mechanisms for Impacts on Society • Customer Health & Safety • Product & Service Labeling • Marketing Communications • Customer Privacy • Compliance BrownFlynn 2014. All Rights Reserved
  20. 20. Who is Using GRI? BrownFlynn 2014. All Rights Reserved
  21. 21. How does CDP complement the GRI process? • CDP Content: – CDP questions correspond to disclosure topics within the GRI framework – Opportunity to re-purpose outcomes from CDP for Sustainability Report and vice versa • GRI Report Development Outcomes: – Information from interviews (risks, opportunities, projects) – Content and positioning can be leveraged BrownFlynn 2014. All Rights Reserved
  22. 22. Why Report Sustainability Information? • G250 companies view reputation and ethical considerations as key reasons to report sustainability efforts. 0% 20% 40% 60% 80% Cost Savings Improved Relationships w/ Government… Strengthened Supplier Relationships Market Position Improvement Access to Capital or Increased Shareholder… Economic Considerations Risk Management Employee Motivation Innovation and Learning Ethical Considerations Reputation or Brand Source: KPMG International Corporate Responsibility Reporting Survey, 2011 • Sustainability reporting improves CEO approval ratings and employee satisfaction. Companies with GRI-based reports have the highest CEO approval and employee satisfaction ratings. 67.00 68.00 69.00 70.00 71.00 72.00 73.00 74.00 75.00 CEO Approval Rating Percentage (as of July 2012) Source: Glassdoor, G&A Research, 2012 3.00 3.05 3.10 3.15 3.20 3.25 3.30 Employee Satisfaction Scale - 0 to 5 (as of July 2012) BrownFlynn 2014. All Rights Reserved
  23. 23. Supply Chain Pressure for Reporting • Companies are shifting their supply chain engagements from authoritative to collaborative. Authoritative Approach Companies demand suppliers to provide information through surveys, questionnaires or scorecards. Demonstrative Approach Companies ask suppliers to use reporting frameworks they are already using. Collaborative Approach Companies work with and educate suppliers on how they want to report information. BrownFlynn 2014. All Rights Reserved
  24. 24. Supply Chain Collaboration Through Reporting • Companies who produce sustainability reports see an increase in supply chain member collaboration Source: MIT and BCC, 2012. Global executive study and research project. BrownFlynn 2014. All Rights Reserved
  25. 25. GRI: The Leading Sustainability Reporting Framework BrownFlynn 2014. All Rights Reserved
  26. 26. The 2013 CRO Top 100 Johnson Controls Campbell Soup IBM Bristol-Myers Squibb Mattel 3M Kimberly-Clark Hewlett-Packard Nike Gap General Mills Intel Coca-Cola co. Coca-Cola Enterprises Inc. Pinnacle West Capital Albemarle Spectra Energy E.I. DuPont De Nemours & Co Johnson & Johnson Abbott Laboratories PG&E Microsoft Corporation Freeport-McMoran Copper&Gold Pepsico Raytheon Advanced Micro Devices Texas Instruments Accenture H.J. Heinz Co. EMC Hormel Foods Jones Lang LaSalle Eaton Merck & Co. Altria Group Chevron Cisco Systems Occidental Petroleum Starbucks Colgate-Palmolive Target Hess Ball Corp. Green Mountain Coffee Clorox Dell Inc. Yum! Brands Motorola Hershey Company Exelon Corp PPG Industries McGraw-Hill UPS Baxter International Inc. JPMorgan Chase & Co. Northern Trust Corp Verizon Communications Xerox Corp Walt Disney Dow Chemical Lexmark International FedEx Oracle Ford State Street Life Technologies Mosaic Carnival Corp. Sprint Nextel Wisconsin Energy Corp. Darden Restaurants Wyndham Worldwide Rockwell Automation CA Technologies Southwest Airlines ConocoPhillips International Paper Entergy Corp Weyerhaeuser Boeing Sempra Energy Dominion Resources Whirlpool AT&T Eli Lily & Co. General Electric Co. TJX Companies Duke Energy Agilent Technologies Hasbro Lockheed Martin. Northeast Utilities Prudential Financial Air Products & Chemicals Exxon Praxair, Inc. Marathon Monsanto Co. PVH Corp. Allergan Inc. 88% BrownFlynn 2014. All Rights Reserved
  27. 27. Reporting as a Management Tool 1. Discovery • Project Launch Meeting • Background (internal) • Benchmarking (external) 2. Strategy and Prioritization • Value Chain Mapping • Stakeholder Engagement • Leadership Team Materiality Workshop 3. Define Content • Content Outline and Site Map • Theme Development • Design • Gather Additional Data and Stories 4. Develop Content • Write Copy and Manage Edits • Continue Design • Define Assets 5. Production • Development • Content Pouring • PDF and Summary Layout • Testing and QA • Proofing • Launch Planning 6. Launch • Launch • Measure • Optimize BrownFlynn’s Approach BrownFlynn 2014. All Rights Reserved
  28. 28. Sustainability Report Best Practices Examples • Allstate’s Interactive Materiality Matrix • American Electric Power’s Stakeholder Engagement: – Send an e-card to family and friends to remind them to use energy wisely – Subscribe to AEP e-mail alerts and contact AEP – Measure carbon footprint • Campbell’s Soup Data Accessibility – Download data, entire CSR report, individual sections, or previous reports BrownFlynn 2014. All Rights Reserved
  29. 29. Award-Winning Sustainability Reports • 2011/2010 Best Report: Coca-Cola Enterprises Inc • 2011/2010 Best 1st Time Report: La Trobe University • 2011/2010 Best SME Report: Beyond Business • 2011/2010 Best Integrated Report: Novo Nordisk A/S • 2011 Relevance and Materiality: Marks and Spencer plc • 2011 Openness and Honest: Marks and Spencer plc BrownFlynn 2014. All Rights Reserved
  30. 30. Measure What Matters “In God we trust, all others must bring data.” – W. Edwards Deming, Statistician BrownFlynn 2014. All Rights Reserved
  31. 31. Thank You for Attending! Margie Flynn Principal and Co-Founder 440-484-0100, x3 margief@brownflynn.com For more information on BrownFlynn’s services, please visit www.brownflynn.com BrownFlynn 2014. All Rights Reserved
  32. 32. Q & A BrownFlynn 2014. All Rights Reserved
  33. 33. Measuring Sustainability: APPENDIX Margie Flynn BrownFlynn
  34. 34. What is SASB? • The Sustainability Accounting Standards Board (SASB) is a nonprofit organization that establishes industry-based sustainability standards for the recognition and disclosure of material environmental, social and governance impacts by companies traded on U.S. exchanges. • Sectors include health care, financials, technology & communication, non-renewable resources, transportation, services, resource transformation, consumption, renewable resources & alternative energy, and infrastructure. BrownFlynn 2014. All Rights Reserved
  35. 35. Ford Connects Big Data with Environmental Impacts • “Analytics permeates almost every aspect of sustainability at Ford, helping to chart paths to a cleaner, brighter, better world and a stronger business.” • “The amount of available data is growing fast: Ford researchers have begun experimenting with vehicles that produce 250 gigabytes of data an hour. More information leads to further improvements in increasing fuel economy and reducing vehicle emissions.” • “Ford considers big data and analytics the next frontier for innovation, competition and productivity, with new opportunities emerging such as green routing, that allows consumers to optimize driving routes to minimize their impact on local air quality” – Read the full press release here: Ford Embracing Analytics and Big Data to Inform Eco-Conscious Decisions, Stay Green BrownFlynn 2014. All Rights Reserved
  36. 36. Big Data Inform Solutions “You can have data without information, but you cannot have information without data.” – Daniel Keys Moran, Technologist Data is a “raw material ready to be shaped.” – Tate Cantrell, CTO of Verne Global “Organizations are cultivating ‘big data’ towards sustainable solutions across industries and sectors.” – Elaine Hsieh, Program Director & Senior Analyst, Verge Source: VERGE BrownFlynn 2014. All Rights Reserved

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