Sustainability Reporting Trends Sustainability Reporting Trends Utility Environmental y Benchmarking Forum September 2011 Mike Wallace Director, Focal Point USA Global Reporting InitiativeVenue, Date email@example.com +1 212 339 0356
Why should this matter to y s ou d s a e o you?
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 ?
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 ?
Increasing Stakeholders and Demand Modern Due Diligence
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 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
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’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
What does GRI look like inaction?Varying Perspectives:- Customer/Consumer- Local Community/Mayor- Peer/Competitor- Employer/EmployeeA unique tour of reporting through the economy
Social Responsibility Report Social Responsibility p y Report
Sustainability JourneyCHW Highlights :1996: “Endorsed CeresPrinciples and committed toannual public reporting”2003: CHW started using GRIG3 Guidelines2010: “An Enduring Mission”the title of their last report
Topics Covered: Issues Covered: • E i Environmental I di t t l Indicators • Economic Indicators • Social Indicators • Labor Practices and Decent Work • Human Rights g • Product Responsibility
Healthcare Supply Chain Disclosure Issues Covered: • Strategy and analysis • Organizational p g profile • Report Parameters • Governance, Commitments & Engagement • Management Approach and Performance Indicators: o Economic disclosure o Environmental di l E i l disclosure o Labor practices and decent work o Human rights o Society o Product Responsibility P d tR ibilitProduct Responsibility P d tR ibilit
Product Responsibility - GEPR1 Life cycle stages in which health and safety Our products & services Partial impacts of products… Environment PR2 Total number of incidents of non‐compliance Our products & services Partial with regulations… Environment PR3 Type of product and service information Product Issues are disclosed on a case‐by‐case basis in the various required by procedures… i db d sections of the Citizenship Report. Due to the complexity of the ti f th Citi hi R t D t th l it f th business and ongoing litigation related to its range of products and services, GE does not formally report this indicator.PR4 Total number of incidents of non‐compliance GE does not report on this metric. with regulations and… PR5 Practices related to customer satisfaction… GE does not release customer satisfaction data for proprietary and competitive reasons. More on customers can be found in the Our Customers section.PR6 Programs for adherence to laws, standards and Operational Excellence Partial voluntary codes related to marketing… voluntary codes related to marketing Our Products & Services Our Products & ServicesPR7 Total number of incidents of non‐compliance… GE does not report on this metricPR8 Total number of substantiated complaints GE does not report on this metric regarding breaches of customer privacy…PR9 Monetary value of significant fines for non‐ Any significant legal actions and material regulatory fine/settlements Full compliance with laws and regulations… are disclosed in our public filings. There were no significant fines for non‐compliance with laws and regulations concerning the provision and use of GE products and services during 2009
Healthcare Supply Chain Disclosure Issues Covered: • Economic • Environmental • Labor Practices and Decent Work • Human Rights • Society • Product Responsibility
Product ResponsibilityPR1 Life cycle stages in which health and safety Product Sustainability Review impacts of products…PR2 Total number of incidents of non‐compliance Safety with regulations… with regulations…PR3 Type of product and service information Clinical Trials required by procedures… Product UsePR4 Total number of incidents of non‐compliance with regulations and voluntary codes… with regulations and voluntary codesPR5 Practices related to customer satisfaction…PR6 Programs for adherence to laws, standards and Product Use voluntary codes related to marketing…PR7 Total number of incidents of non‐compliance… Product UsePR8 Total number of substantiated complaints regarding breaches of customer privacy…PR9 Monetary value of significant fines for non‐ y g Safety y compliance with laws and regulations… Product Use
Healthcare Supply Chain Disclosure Issues Covered: I C d • Economic Disclosure • Environmental Disclosure • Social Disclosure • Labor Practices and Decent Work • Human Rights • Society • Product Responsibility
Product Responsibility - CloroxPR1 Life cycle stages in which health and safety if l i hi h h l h d f Pg 24‐25 impacts of products… www.cloroxcsr.com/products‐safetyPR2 Total number of incidents of non‐compliance N/R with regulations…PR3 Type of product and service information Pg 25 required by procedures… Corporate Responsibility Report 2010PR4 Total number of incidents of non‐compliance N/R with regulations and voluntary codes…PR5 Practices related to customer satisfaction… Pg 19‐20 Corporate Responsibility Report 2010PR6 Programs for adherence to laws, standards and Pg 20 voluntary codes related to marketing… Corporate Responsibility Report 2010PR7 Total number of incidents of non‐compliance… N/RPR8 Total number of substantiated complaints N/R regarding breaches of customer privacy…PR9 Monetary value of significant fines for non‐ N/R compliance with laws and regulations…
Johnson Controls Sustainability Journey Highlights: • 2004: Johnson Controls issued their first Sustainability Report using GRI Guidelines • 2005-2009: The issued several Business and Sustainability Reports p • 2010:”Business and Sustainability” the name of their last report • 2011: Next report coming soon
GRI IndexHighlights:• Economic• Environmental• L b P ti Labor Practices and D d Decent t Work• Human Rights• Society• Product Responsibility
Johnson Controls: Product ResponsibilityCustomer Health and Safety PR1 Life cycle stages in which health and safety impacts of Life cycle stages in which health and safety impacts of Product Safety Assess Product Safety Assess products…PR2 Total number of incidents of non‐compliance with Product Health & Safety Non‐compliance regulations…Product and Service Labeling Product and Service LabelingPR3 Type of product and service information required by Product Information Labeling procedures…PR4 Total number of incidents of non‐compliance with Labeling Non‐compliance regulations and… PR5 Practices related to customer satisfaction… Customer Satisfaction Marketing Communications PR6 Programs for adherence to laws, standards and Marketing Law Programs voluntary codes related to marketing…PR7 Total number of incidents of non‐compliance… Marketing Non‐compliance Customer Privacy PR8 Total number of substantiated complaints regarding Customer Privacy Breach breaches of customer privacy…Compliance PR9 Monetary value of significant fines for non‐ Total Non‐compliance Fines compliance with laws and regulations…
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
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 Publications GRI Guidelines & Template: GRI Learning Publications:• Research and Development Publications…
GRI Publications• GRI’s research & development publication series• Linkage documents
Sector SupplementsAvailable: Under Development: 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
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
GRI Regional Representation Brazil, Australia, India, China & US 2009 2010 2009 2007 2009
Thank you Mike Wallace Director, Focal Point USA Global Reporting Initiative firstname.lastname@example.org +1 212 339 0356 Twitter: M A Wallace M_A_Wallace Linked In: http://www.linkedin.com/in/mikewallaceVenue, Date