Retail Industry Leaders Association (RILA) oct 2011
Sustainability Reporting Trends Retail Industry Leaders Association (RILA) October 12 14 2011 12-14, Mike Wallace Director, Focal Point USA Global Reporting Initiative email@example.com +1 212 339 0356Venue, Date
Range of Terminology g gy• CSR - Corporate Social Responsibility• CC - Corporate Citizenship p p• SD - Sustainable Development• ES - Environmental Sustainability• BE - Business Ethics• CE - Corporate Ethics• CG -CCorporate Governance t G• ESG - Environmental, Social & Governance• IR - Integrated reporting What is your “Footprint”? Footprint ?
GRI’s Vision & MissionVisionA sustainable global economy where organizationsmanage their economic, environmental, social andggovernance p performance and impacts responsibly p p yand report transparently.MissionMi iTo make sustainability reporting standard practice byproviding guidance and support to organizations organizations.
The GRI Guidelines Environmental • EN 3 - Direct energy consumption by primary energy source Labor • LA 7 - Rates of injury, occupational diseases, lost days and absenteeism, and number of work related fatalities by region. Human Rights • HR 4 - Total number of incidents of discrimination and actions taken Product Responsibility • PR 6 - Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, ad sponsorship. sponsorship Economic • EC 4 – Significant financial assistance received from government.
US Business Roundtable• ABB • ITT• Accenture Johnson & Johnson April 2009• Abbott Johnson Control• Alcoa Life Technologies Corp• American Electric Power McKesson Corp.• AT&T Merck• CB Richard Ellis Group Inc. p Motorola• CH2MHill Companies, Ltd. NexTera (Formerly FPL)• Chevron Office Depot• Chubb Owens Corning• Citi PepsiCo• Coca-Cola Pfizer• Conoco Philips Praxair• Cummins Proctor & Gamble Co.• Darden Ryder• Deloitte Sara Lee April 2010• Dow Chemical SAP USA• Duke Energy SAS• DuPont Southern Company• Eastman Kodak Co. Siemens Corp• EMC Target Corporation• Exxon Mobil Tyco• Freeport M M F t McMoran UAL Corporation C ti• General Electric Weyerhauser• General Motors Whirlpool Corporation• HSBC Williams• IBM Xerox• International Paper
Reporting Trends p gTextile and Apparel Sector
GRI Reports List ReviewOrganization Country Region SectorTeijin Japan Asia Textiles and ApparelAdidas Germany Europe Textiles and ApparelNike United States of America Northern America Textiles and ApparelPuma Germany Europe Textiles and ApparelInterf ace United States of America Northern America Textiles and ApparelThe Timberland Company United States of America Northern America Textiles and ApparelAksa Akrilik Turkey Asia Textiles and ApparelGrupo Cortef iel Spain Europe Textiles and ApparelTOPKAPI IPLIK SAN. ve TIC. Turkey Asia Textiles and ApparelArt on Stitch Thailand Asia Textiles and ApparelEcologic Designs United States of America Northern America Textiles and ApparelImpahla Clothing South Af rica Af rica Textiles and ApparelLindex Sw eden Europe Textiles and ApparelLiupanshui Minyiyuan Business and China Asia Textiles and ApparelTrade Company Ltd.Shunde Hengf a Knitting Garment China Asia Textiles and ApparelSuzi Products South Af rica Af rica Textiles and ApparelVimal Clothing South Af rica Af rica Textiles and ApparelCentral Textiles Group China Asia Textiles and ApparelDelta Galil Israel Asia Textiles and ApparelLindström Oy Finland Europe Textiles and ApparelDesigual Spain Europe Textiles and ApparelGildan Canada Northern America Textiles and ApparelGoLite LLC United States of America Northern America Textiles and ApparelMarui Group Japan Asia Textiles and ApparelMilteks Turkey Asia Textiles and ApparelPhillips-Van Heusen (PVH) United States of America Northern America Textiles and ApparelSLN Tekstil ve Moda San.Tic.Ltd.Sti. Turkey Asia Textiles and ApparelSree Santhosh Garments (SSG) India Asia Textiles and ApparelSw itcher Sw itzerland Europe Textiles and ApparelTubas Textile Turkey Asia Textiles and ApparelCALIDA Sw itzerland Europe Textiles and ApparelCELTIC ESTORES, S.L Spain Europe Textiles and ApparelHansoll Textile Republic of Korea Asia Textiles and Apparel
GRI Global Reporting by Region p g y g Textile and Apparel Companies Breakdown by Region Retailers B kd R t il Breakdown b R i by Region
“The GRI offers a comprehensiveframework for reporting acompany’s impacts and activities”Nike FY04 Report “We developed this report with reference to the Global Reporting Initiative’s third generation of indicators. Based upon our assessment of Reporting and the GRI criteria, we b li it i believe our reporting achieves B-level application of the GRI.” Nike FY07-09 Report
“...the Global Reporting Initiative (GRI), arguably theworld’s most credible and trusted framework forcorporate responsibility reporting” GoLite Website t ibilit ti ”
“In 2005 and 2006, Gap Inc.Participated in the GRI’sworking group to develop anApparel and F tA l d Footwear S tSectorSupplement that wouldintroduce a reportingframework spec c to the a e o specific o eissues in our industry. TheGRI’s new G3 guidelines andthe draft GRI Apparel andfootwear Sector Supplementhelped guide us throughoutthe development of this pReport” GAP 2005 Report
“At Target, we recognize the a ge , e ecog e eGRI index as one of themost credible and widelyused reporting standards,and believe it helps bringfocus to our continued andevolving work as aresponsible corporate p pcitizen” Target Website
“The framework we have used tomeasure and report our results phas been adopted from the GlobalReporting Initiative (GRI) G3Guidelines” HBC Report 2010
How ca you make the o can a e e business case?
As a buyer, what information do you expect?When you buy a house, a car, a product or service . . . i What i f Wh t information do you d ti d deserve? ?DoD you want it to be useful & comparable? t t b f l bl ?
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 UN PRI (US)800800+ international signatories PARTIAL LIST OF ASSET OWNERS (200): • AFL-CIO Reserve Fund / AFL-CIO Staff Retirement Plan • CalPERS CalSTRS C lPERS / C lSTRS • 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 C Care Foundation of C f Connecticut
Signatories to the UN PRI (US)800800+ international signatoriesPARTIAL LIST OF INVESTMENT MANAGERS:• BlackRock• Calvert Investments • Boston Trust• CBRE Investors • Capital Group International• Domini Social Investments • Clear Bridge Advisors• JPMorgan Asset Management • MFS Investment• Kohlberg Kravis Roberts & Co, LLP Management• Krull C K ll & Company • Principal Global Investors• Northern Trust Global Investments • T. Rowe Price• Prudential Real Estate Investors • Tower Capital Asset• Russell Investments Management LP• TD Asset Management Inc.• The Townsend Group• TIAA - CREF
How would you conduct y due diligence?Can any of this really be measured?
Analysis of Tech SectorAppleA l x x 7.95 CA ‐‐‐Dell x x x x 6.14EMC x 6.86Fujitsu x ‐‐‐HP x x x 7.74Intel x x x x 7.96IBM x x x 7.60 7 60Microsoft x x x x 6.54Toshiba ‐‐‐Based on 2010 information
Analysis of Tech Sector Social Corporate Overall 2010 Company Environment Governance ESG Score Leadership d hi Employees l Stakeholders k h ld Apple 28 3 11 7 14 63 CA, Inc. 25 4 14 16 9 68 Dell 27 8 16 8 21 80 EMC 26 5 19 12 14 76 Fujitsu 13 7 10 10 18 58 HP 26 8 16 10 25 85 Intel n/a n/a n/a n/a n/a n/a IBM 24 9 20 12 20 85 Microsoft 29 7 15 17 15 83 Toshiba 19 7 13 10 18 67 Maximum 30 10 30 15 30 115 ScoreBased on 2010 information
Market Evolution300,000+ data terminalsglobally5,000+ companies andclimbingSustainability Aspects• Emissions• Energy Consumption• Human Rights• Policies• Board Make Up Make-UpBuilt around GRI
Bloomberg Survey“With over 300,000 users, the BloombergProfessional service provides a greatopportunity and platform for you to shareinformation with current and potentiali f ti ith t d t ti linvestors concerning your Sustainability orCorporate Social Responsibility program.”“Our survey is based on the guidingprinciples of the GRI framework.”
Sustainability PerformanceGRI Reporters Presence: • 95% of the Dow Jones Sustainability Index • 78% of th FTSE4G d f the FTSE4Good • 70% of the Global 100 • 70% of the NASDAQ OMX CRD Sustainability Index
GRI Developments & Trends• Government Uptake• Supply Chain• Financial Markets, Private Equity & Exchanges• Integrated Reporting• G4 Development
Global Regulatory Review "More governments are making sustainability "M t ki t i bilit reporting mandatory.“• 142 regulatory instruments addressingsustainability reporting exist in over 30countries• 65% are classified as mandatory, the restvoluntary• United States • WH CEQ - EO 13514 • USPS, US Army, etc…. • GSA • Department of State • SEC
Business Transparency on Trafficking and Slavery ActNew Legislation There are only a few months left before California’s Transparency in Supply Chains legislation goes into effect in January 2012.Who will this affect? The legislation (SB657 for short) impacts all retailers operating in California that generate over 100 million in annual gross receipts receipts.What does it require? It requires “conspicuous” public disclosure of the actions companies are taking to prevent Human Trafficking and modern day slavery in their supply chains.
Supply Chain Ripple Customer Training Suppliers GRI Stakeholders
Mainstream UptakeMay 2010May 2010 January 2011 January 2011
International Integrated Reporting Committee (IIRC) http://theiirc.org
CoContinuous Improvement: uous p o e e G4 Development
G4 Development ProcessConsensus Based Approach:• Call for Sustainability ReportingTopics (closed)• Registration for Public Comment gPeriod (closed)• Open Public Comment Period (90-day - through Nov. 24, 2011)
GRI PublicationsGRI Guidelines & Template:GRI Learning Publications:Research and Development Publications Publications…
GRI Publications• GRI’s research & development publication series• Linkage documents
Sector SupplementsAvailable: Pilot Version: Electric Utilities Airport Operators Automotive Financial Services Construction & Real Logistics and Estate Transportation Food Processing Event Organizers* Public Agency Mining & Metals Media* Telecommunications NGO Oil & Gas* Apparel and Footwear * Under Development
Certified Training Partners g Over 60 certified training partners globally Over 60 certified training partners globally Over 5000 people trained North America Partners North America Partnerswww.brownflynn.com http://isosgroup.com/ www.leadcanada.net
GRI Certified Software & Tools Program • PE International • SAP • S2D2 • Microsoft • EnviroCIP • Enablon • CSRware • CA Inc • Tofuture Oy • CSR Nordic ApS • SRI World Group • Oracle America
Thank you Mike Wallace Director, Focal Point USA Global Reporting Initiative firstname.lastname@example.org +1 212 339 0356 Twitter: M_A_Wallace Linked In: http://www.linkedin.com/in/mikewallace http://www linkedin com/in/mikewallaceVenue, Date