SlideShare a Scribd company logo
1 of 43
Download to read offline
Role of Institutions in
facilitating Sustainability
Reporting

By
CA. Rajkumar S Adukia
To receive regular updates on various professional issues kindly send test mail to
www.caaa.in
1
rajkumarfca-subscribe@yahoogroups.com
The Presentation
•
•
•
•
•

Why Report on Sustainability?
The Sustainability Report
Institutions on Sustainability
Trends in Sustainability
The Way Forward

www.caaa.in

2
Why Report on Sustainability ?
– Enhanced business
value
– Improved operations
– Strengthened
relationships
– Enhanced trust and
credibility

www.caaa.in

– Meet growing
expectations of broad
range of stakeholders
– Improved reputation
with socially
responsible investors
– Employee recruitment
and retention
– Brand protection and
customer loyalty

3
The Sustainability Report
• Environmental Issues
– Climate change and energy
– Ecosystem services
– Local environmental impacts

• Health and Safety
Issues

• Social and Economic
Issues
– Community and society
– Local content
– Human rights
– Business ethics and
transparency
– Labor practices

– Workforce protection
– Product health, safety and
environmental risks
– Process safety and asset
integrity

www.caaa.in

4
Who’s Reporting?
•
•
•
•

Corporates
Public Agencies
NGO’s
Small Enterprises

www.caaa.in

5
Global Reporting Initiative
• The GRI is a network
based organization that
has created one of the
most credible
sustainability reporting
frameworks.

• The GRI network consists
of :
–
–
–
–
–
–
–
–
–

www.caaa.in

-Governance Bodies
Board of Directors,
Stakeholder Council,
Technical Advisory
Committee and
Organizational
Stakeholders
Secretariat
Governmental Advisory
Group
Organizational
Stakeholders
Focal Points
6
GRI Reporting Framework
• G3 Guidelines
• Sector Supplements
• National Annexs

www.caaa.in

7
www.caaa.in

8
Three Pillars of CSR
The three pillars of corporate social
responsibility are
• environment,
• society, and
• governance

www.caaa.in

9
The Triple Bottom Line
• The TBL is an accounting framework that
incorporates three dimensions of
performance:
– social,
– environmental and
– financial.

www.caaa.in

10
The Triple Bottom Line
(TBL)
TBL differs from traditional reporting as it includes
• ecological (or environmental) and
• social measures

that can be difficult to assign appropriate means of
measurement.
The TBL dimensions are also commonly called the
three Ps: people, planet and profits. We will refer
to these as the 3Ps.

www.caaa.in

11
The 3Ps Policy
The 3 dimensions of Sustainability
Reporting
• Planet - minimize the environmental impacts and
work for the better utilization of natural resources

• People - social and community view on people’s
autonomy and quality of life

• Profit - longevity of the organization is ensured by the
goal of profitability earned through operational efficiency,
strict cost controls and ethical and transparent behavior

www.caaa.in

12
Planet
+
People
+
Profit
=
Sustainable Development

www.caaa.in

13
Application of Triple Bottom Line
Measurement
The application of the TBL by businesses,
nonprofits and governments are motivated
by the principles of economic,
environmental and social sustainability,
but differ with regard to the way they
measure the three categories of
outcomes.

www.caaa.in

14
ICAI on Sustainability Reporting
The Institute of Chartered Accountants of
India (ICAI) has set up the ICAI –
Accounting Research Foundation (ICAIARF), which has undertaken a special
project to suggest a suitable framework for
sustainability reporting for Indian
companies.

www.caaa.in

15
MCA on Sustainability Reporting
The Ministry of Corporate Affairs,
Government of India in association with
the Indian Institute of Corporate Affairs
has released the voluntary guidelines on
social, environmental and economic
responsibilities of business

www.caaa.in

16
RBI on Sustainability Reporting
In the financial sector, there is a visible
trend to promote environmentally and
socially responsible lending and
investment, with the Reserve Bank of
India recently issuing a circular for
highlighting role of banks in promoting
sustainable development.

www.caaa.in

17
GOI on Sustainability Reporting
• The Government of India released the
Corporate Social Responsibility Voluntary
Guidelines in 2009 for businesses.
• The Ministry of Corporate Affairs,
Government of India has formally released
the ‘National Voluntary Guidelines for
the Social, Environmental and
Economic Responsibilities of
Business, 2011” on 8th July 2011.

www.caaa.in

18
The guidelines have 9 basic
principles
1. Ethics, Transparency and Accountability
2. Goods and services that are safe and
contribute to sustainability
3. Well being of employees
4. Responsive towards stakeholders
5. Respect and promote human rights

www.caaa.in

19
The guidelines have 9 basic
principles
6. Environment
7. Influence public and regulatory policy in
a responsible manner
8. Inclusive growth and equitable
development
9. Provide value to customers and
consumers
www.caaa.in

20
National Action Plan on Climate
Change
• A Multipronged Strategy for Sustainable
Development
• Established in June 2007, under the
chairmanship of the Prime Minister of
India, to co-ordinate national action for
assessment, adaptation, and mitigation of
climate change.

www.caaa.in

21
www.caaa.in

22
Clean Development Mechanism
(CDM) in India

• The total number of CDM projects
registered at the Clean Development
Mechanism Executive Board (CDM EB) as
on September 2012 is 532
• The National Clean Development
Mechanism Authority (NCDMA) has
accorded Host Country Approval to 1226
projects, facilitating an investment of more
than USD 3,405.

www.caaa.in

23
Clean Development Mechanism
(CDM) in India
• The most of the
• It is estimated, if all
projects are in sectors these projects get
like energy efficiency,
registered by the
fuel switching,
CDM Executive
industrial processes,
Board, they have the
municipal solid waste
potential to generate
and renewable
a total 573 million
energy.
Certified Emission
Reductions (CERs)
by the year 2012.
www.caaa.in

24
Green House Gas Emissions in
India
• A recent study by the
Government of India
estimates future GHG
emissions, using different
models.
• .

www.caaa.in

• The study concludes that
the estimates of India's
per capita GHG
emissions in 2030-31
vary from 2.77 to 5 tCO
eq, with four of the five
studies estimating that
India's per capita GHG 2
emission will stay below 4
tonnes per capita

25
Eleventh Five Year Plan
(2007-2012)
Highlights Energy Sector

www.caaa.in

26
www.caaa.in

27
www.caaa.in

28
CII on Sustainability Reporting
• Confederation of Indian Industry [CII] and
the Carbon Disclosure Project [CDP] have
commenced a new initiative titled CII-CDP
Disclosure to Action. The CDP-related
activity in India, now in its sixth year, has
clearly revealed that climate change
represents significant risks and
opportunities to Indian businesses.

www.caaa.in

29
Trends in Sustainability
Reporting - 1
• Just 40 companies in India disclose their
Sustainability Performance
• Sectors like construction and building
material, metals and mining, oil and gas
and chemicals t lead the reporting initiative
in India

www.caaa.in

30
Trends in Sustainability
Reporting - 2
• Indian reporters use Global Reporting
Initiative (GRI) guidelines to prepare the
sustainability report
• Very few Sustainability Reporters in India
have a Strategy with well defined
objectives and a SMART Target

www.caaa.in

31
Trends in Sustainability
Reporting - 3
• The content of sustainability reports focus
more on complying to the reporting
guidelines requirements rather than
elaborating on materiality, stakeholder
engagement and future plans and targets.
• Climate change has emerged on the key
sustainability risks across industries

www.caaa.in

32
Trends in Sustainability
Reporting - 4
• There is an increasing trend of companies
engaging accountancy firms for assuring
their sustainability reports in India.
• A recent trend observed is to include
sustainability elements as part of internal
audit so that the issues are discussed at
the board level.

www.caaa.in

33
Consequences of Compulsory
Sustainable Reporting
• The social responsibility of business
leaders increases
• Sustainable development and Employee
training become a high priority issues for
Companies
• Corporate Governance improves

www.caaa.in

34
Consequences of Compulsory
Sustainable Reporting
• Corporate boards supervise management
more effectively
• Corporations implement more ethical
practices
• Managerial Credibility Increases

www.caaa.in

35
Integrated Reporting
• Integrated Reporting <IR> is the language for
sustainable business.
• Companies communicate how value is created
and will be preserved over the short, medium
and long term
• Integrated Report, talks about the way in which
an organization’s strategy, governance,
performance and prospects lead to the creation
and preservation of value.

www.caaa.in

36
The International Integrated
Reporting Council (IIRC)
• Aims to create a globally accepted
framework for accounting for
sustainability, bringing together financial,
environmental, social and governance
information in an "integrated" format.

www.caaa.in

37
IIRC – IFAC - ICAI
• The IIRC membership includes IFAC
• The Institute of Chartered Accountants of
India (ICAI) is a member of the
International Federation of Accountants
(IFAC)

www.caaa.in

38
Way Forward
• The Sustainability Report is sure to find
information on the following areas namely

– Sustainability issues, challenges, dilemmas and
opportunities.
– Regulatory environment and fact-based information
– Information of interest to investors such as
materiality of issues in financial terms, vision and
strategy statements, goals and targets, etc.

www.caaa.in

39
Way Forward
– Explanation on identification and prioritization
of material issues.
– Reader friendly report design.

www.caaa.in

40
About the Author
•
•
•

•

CA. Rajkumar S Adukia is an eminent business consultant,
academician, writer, and speaker. He is the senior partner of Adukia
& Associates.
In addition to being a Chartered Accountant, Company Secretary,
Cost Accountant, MBA, Dip IFR (UK), Mr. Adukia also holds a
Degree in Law and Diploma in Labor Laws and IPR.
Mr. Adukia, a rank holder from Bombay University completed the
Chartered Accountancy examination with 1st Rank in Inter CA & 6th
Rank in Final CA, and 3rd Rank in Final Cost Accountancy Course
in 1983.
He started his practice as a Chartered Accountant on 1st July 1983,
in the three decades following which he left no stone unturned, be it
academic expertise or professional development.

www.caaa.in

41
About the Author
• He has been coordinating with various Professional
Institutions, Associations, Universities, University Grants
Commission and other Educational Institutions.
• Authored more than 50 books on a vast range of topics
including Internal Audit, Bank Audit, SEZ, CARO, PMLA,
Anti-dumping, Income Tax Search, Survey and Seizure,
IFRS, LLP, Labour Laws, Real estate, ERM, Inbound
and Outbound Investments, Green Audit etc.
• The author can be reached at rajkumarfca@gmail.com.
For more details log on to www.caaa.in

www.caaa.in

42
Thank You

www.caaa.in

43

More Related Content

What's hot

Sustainability reporting - Introduction
Sustainability reporting - IntroductionSustainability reporting - Introduction
Sustainability reporting - IntroductionArivalagan Arumugam
 
Corporate Sustainability Reporting
Corporate Sustainability ReportingCorporate Sustainability Reporting
Corporate Sustainability ReportingECC International
 
ESG seminar
ESG seminarESG seminar
ESG seminarSnam
 
GRI Introduction
GRI IntroductionGRI Introduction
GRI Introductionmkorzelius
 
ESG Integration Case Studies (SASB Edition)
ESG Integration Case Studies (SASB Edition)ESG Integration Case Studies (SASB Edition)
ESG Integration Case Studies (SASB Edition)Nawar Alsaadi
 
BRSR Reporting-utopiic.pdf
BRSR Reporting-utopiic.pdfBRSR Reporting-utopiic.pdf
BRSR Reporting-utopiic.pdfSonaKapoor8
 
Sustainability Reporting- Business Ethics
Sustainability Reporting- Business EthicsSustainability Reporting- Business Ethics
Sustainability Reporting- Business Ethicsshrinivas kulkarni
 
ESG: The Need for Responsible Investment
ESG: The Need for Responsible InvestmentESG: The Need for Responsible Investment
ESG: The Need for Responsible InvestmentKumaraguru Veerasamy
 
Business Responsibility and Sustainability .pdf
Business Responsibility and Sustainability .pdfBusiness Responsibility and Sustainability .pdf
Business Responsibility and Sustainability .pdfaakash malhotra
 
Alphabet Soup of ESG
Alphabet Soup of ESGAlphabet Soup of ESG
Alphabet Soup of ESGKen Witt
 

What's hot (20)

Sustainability reporting - Introduction
Sustainability reporting - IntroductionSustainability reporting - Introduction
Sustainability reporting - Introduction
 
Corporate Sustainability Reporting
Corporate Sustainability ReportingCorporate Sustainability Reporting
Corporate Sustainability Reporting
 
ESG seminar
ESG seminarESG seminar
ESG seminar
 
GRI and the sustainability reporting journey
GRI and the sustainability reporting journeyGRI and the sustainability reporting journey
GRI and the sustainability reporting journey
 
ESG 101
ESG 101ESG 101
ESG 101
 
Introduction to the next generation of GRI Guidelines (G4): How does a global...
Introduction to the next generation of GRI Guidelines (G4): How does a global...Introduction to the next generation of GRI Guidelines (G4): How does a global...
Introduction to the next generation of GRI Guidelines (G4): How does a global...
 
Esg 2020 slides
Esg 2020 slidesEsg 2020 slides
Esg 2020 slides
 
Csr gri framework
Csr  gri frameworkCsr  gri framework
Csr gri framework
 
GRI Introduction
GRI IntroductionGRI Introduction
GRI Introduction
 
ESG Integration Case Studies (SASB Edition)
ESG Integration Case Studies (SASB Edition)ESG Integration Case Studies (SASB Edition)
ESG Integration Case Studies (SASB Edition)
 
brsr.pptx
brsr.pptxbrsr.pptx
brsr.pptx
 
BRSR Reporting-utopiic.pdf
BRSR Reporting-utopiic.pdfBRSR Reporting-utopiic.pdf
BRSR Reporting-utopiic.pdf
 
Sustainability Reporting- Business Ethics
Sustainability Reporting- Business EthicsSustainability Reporting- Business Ethics
Sustainability Reporting- Business Ethics
 
ESG: The Need for Responsible Investment
ESG: The Need for Responsible InvestmentESG: The Need for Responsible Investment
ESG: The Need for Responsible Investment
 
GRI, Sustainability Reporting and G4
GRI, Sustainability Reporting and G4GRI, Sustainability Reporting and G4
GRI, Sustainability Reporting and G4
 
Esg Reporting Guide
Esg Reporting GuideEsg Reporting Guide
Esg Reporting Guide
 
Business Responsibility and Sustainability .pdf
Business Responsibility and Sustainability .pdfBusiness Responsibility and Sustainability .pdf
Business Responsibility and Sustainability .pdf
 
ESG
ESGESG
ESG
 
Environmental, Social, and Governance (ESG) Activities
Environmental, Social, and Governance (ESG) ActivitiesEnvironmental, Social, and Governance (ESG) Activities
Environmental, Social, and Governance (ESG) Activities
 
Alphabet Soup of ESG
Alphabet Soup of ESGAlphabet Soup of ESG
Alphabet Soup of ESG
 

Viewers also liked

Sustainability Reporting
Sustainability ReportingSustainability Reporting
Sustainability Reportingelaine cohen
 
Sustainability Reporting trends in Switzerland, Germany and Austria 2012
Sustainability Reporting trends in Switzerland, Germany and Austria 2012Sustainability Reporting trends in Switzerland, Germany and Austria 2012
Sustainability Reporting trends in Switzerland, Germany and Austria 2012BSD Consulting
 
Reporting for Sustainability Management
Reporting for Sustainability ManagementReporting for Sustainability Management
Reporting for Sustainability ManagementWilliam Newman
 
What is Corporate Sustainability?
What is Corporate Sustainability?What is Corporate Sustainability?
What is Corporate Sustainability?Dhiman Chowdhury
 
Sustainability reporting
Sustainability reportingSustainability reporting
Sustainability reportingFootprint_Forum
 
Value of sustainability reporting
Value of sustainability reportingValue of sustainability reporting
Value of sustainability reportingSustainable Brands
 
Sustainability Reporting Trends March 2012
Sustainability Reporting Trends March 2012Sustainability Reporting Trends March 2012
Sustainability Reporting Trends March 2012Mike Wallace
 
Corporate sustainability ppt
Corporate sustainability ppt  Corporate sustainability ppt
Corporate sustainability ppt Babasab Patil
 
CORPORATE SOCIAL RESPONSIBILITY
CORPORATE SOCIAL RESPONSIBILITYCORPORATE SOCIAL RESPONSIBILITY
CORPORATE SOCIAL RESPONSIBILITYRobbySahoo
 
BCG Matrix of Engro foods
BCG Matrix of Engro foodsBCG Matrix of Engro foods
BCG Matrix of Engro foodsMutahir Bilal
 

Viewers also liked (13)

Sustainability Reporting
Sustainability ReportingSustainability Reporting
Sustainability Reporting
 
Sustainability Reporting trends in Switzerland, Germany and Austria 2012
Sustainability Reporting trends in Switzerland, Germany and Austria 2012Sustainability Reporting trends in Switzerland, Germany and Austria 2012
Sustainability Reporting trends in Switzerland, Germany and Austria 2012
 
Reporting for Sustainability Management
Reporting for Sustainability ManagementReporting for Sustainability Management
Reporting for Sustainability Management
 
Corporate sustainable reporting
Corporate sustainable reportingCorporate sustainable reporting
Corporate sustainable reporting
 
What is Corporate Sustainability?
What is Corporate Sustainability?What is Corporate Sustainability?
What is Corporate Sustainability?
 
Sustainability reporting
Sustainability reportingSustainability reporting
Sustainability reporting
 
Value of sustainability reporting
Value of sustainability reportingValue of sustainability reporting
Value of sustainability reporting
 
Corporate Responsibility and Sustainability 2009 - South Africa
Corporate Responsibility and Sustainability 2009 - South AfricaCorporate Responsibility and Sustainability 2009 - South Africa
Corporate Responsibility and Sustainability 2009 - South Africa
 
Sustainability Reporting Trends March 2012
Sustainability Reporting Trends March 2012Sustainability Reporting Trends March 2012
Sustainability Reporting Trends March 2012
 
Corporate Sustainability
Corporate SustainabilityCorporate Sustainability
Corporate Sustainability
 
Corporate sustainability ppt
Corporate sustainability ppt  Corporate sustainability ppt
Corporate sustainability ppt
 
CORPORATE SOCIAL RESPONSIBILITY
CORPORATE SOCIAL RESPONSIBILITYCORPORATE SOCIAL RESPONSIBILITY
CORPORATE SOCIAL RESPONSIBILITY
 
BCG Matrix of Engro foods
BCG Matrix of Engro foodsBCG Matrix of Engro foods
BCG Matrix of Engro foods
 

Similar to 05 Sustainability reporting

Business Responsibility Reporting
Business Responsibility ReportingBusiness Responsibility Reporting
Business Responsibility ReportingRSM GC
 
Corporate Reporting.pptx
Corporate Reporting.pptxCorporate Reporting.pptx
Corporate Reporting.pptxAbubakarAhmed47
 
CSR – Planning and Implementation Support
CSR – Planning and Implementation SupportCSR – Planning and Implementation Support
CSR – Planning and Implementation SupportRSM GC
 
Webinar: Decoding Sustainability Reporting
Webinar: Decoding Sustainability ReportingWebinar: Decoding Sustainability Reporting
Webinar: Decoding Sustainability ReportingSukanyaMandal10
 
More than Green Initiatives: Developing the Future of Sustainability Accounti...
More than Green Initiatives: Developing the Future of Sustainability Accounti...More than Green Initiatives: Developing the Future of Sustainability Accounti...
More than Green Initiatives: Developing the Future of Sustainability Accounti...Ken Witt
 
Webinar: Reporting Matters 2019 - The State of Play
Webinar: Reporting Matters 2019 - The State of PlayWebinar: Reporting Matters 2019 - The State of Play
Webinar: Reporting Matters 2019 - The State of PlayCDSB
 
ESG in India - Persofi Offering.pdf
ESG in India - Persofi Offering.pdfESG in India - Persofi Offering.pdf
ESG in India - Persofi Offering.pdfEKA PILLAI
 
Presentation may 2014 rmit sustainability and integrated reporting
Presentation   may 2014 rmit sustainability and integrated reportingPresentation   may 2014 rmit sustainability and integrated reporting
Presentation may 2014 rmit sustainability and integrated reportingMike Sewell
 
Sustainability goal setting guide to 7 top third party standards
Sustainability goal setting guide to 7 top third party standardsSustainability goal setting guide to 7 top third party standards
Sustainability goal setting guide to 7 top third party standardsJackson Seng
 
Energy & Sustainability Goal-Setting: A Guide To 7 Top Third Party Standards
Energy & Sustainability Goal-Setting: A Guide To 7 Top Third Party StandardsEnergy & Sustainability Goal-Setting: A Guide To 7 Top Third Party Standards
Energy & Sustainability Goal-Setting: A Guide To 7 Top Third Party StandardsLeon Pulman
 
Sustainability Accounting and Reporting - Social Cost of Carbon
Sustainability Accounting and Reporting -  Social Cost of CarbonSustainability Accounting and Reporting -  Social Cost of Carbon
Sustainability Accounting and Reporting - Social Cost of CarbonDayana Mastura FCCA CA
 
CFO15_Integrated Reporting_Final
CFO15_Integrated Reporting_FinalCFO15_Integrated Reporting_Final
CFO15_Integrated Reporting_FinalKen Witt
 
Corporate r esponsibility basic learning
Corporate r esponsibility  basic learningCorporate r esponsibility  basic learning
Corporate r esponsibility basic learningramachandranpallassa
 
Responsible Business Forum Sustainability Report
Responsible Business Forum Sustainability ReportResponsible Business Forum Sustainability Report
Responsible Business Forum Sustainability ReportGuy Bigwood
 
Three new GRI Standards for Sustainability Reporting Come into Effect
Three new GRI Standards for Sustainability Reporting Come into EffectThree new GRI Standards for Sustainability Reporting Come into Effect
Three new GRI Standards for Sustainability Reporting Come into EffectSustainability Knowledge Group
 
BA VALUE FOR AN ESG FRAMEWORK FOR A SUSTAINABLE BUSINESS MODEL IIBA
BA VALUE FOR AN ESG FRAMEWORK FOR A SUSTAINABLE BUSINESS MODEL IIBABA VALUE FOR AN ESG FRAMEWORK FOR A SUSTAINABLE BUSINESS MODEL IIBA
BA VALUE FOR AN ESG FRAMEWORK FOR A SUSTAINABLE BUSINESS MODEL IIBAAustraliaChapterIIBA
 

Similar to 05 Sustainability reporting (20)

Business Responsibility Reporting
Business Responsibility ReportingBusiness Responsibility Reporting
Business Responsibility Reporting
 
Corporate Reporting.pptx
Corporate Reporting.pptxCorporate Reporting.pptx
Corporate Reporting.pptx
 
CSR – Planning and Implementation Support
CSR – Planning and Implementation SupportCSR – Planning and Implementation Support
CSR – Planning and Implementation Support
 
Webinar: Decoding Sustainability Reporting
Webinar: Decoding Sustainability ReportingWebinar: Decoding Sustainability Reporting
Webinar: Decoding Sustainability Reporting
 
Green audit
Green auditGreen audit
Green audit
 
Green audit
Green auditGreen audit
Green audit
 
More than Green Initiatives: Developing the Future of Sustainability Accounti...
More than Green Initiatives: Developing the Future of Sustainability Accounti...More than Green Initiatives: Developing the Future of Sustainability Accounti...
More than Green Initiatives: Developing the Future of Sustainability Accounti...
 
Sustainability, Organizations, and Accountants
Sustainability, Organizations, and AccountantsSustainability, Organizations, and Accountants
Sustainability, Organizations, and Accountants
 
Webinar: Reporting Matters 2019 - The State of Play
Webinar: Reporting Matters 2019 - The State of PlayWebinar: Reporting Matters 2019 - The State of Play
Webinar: Reporting Matters 2019 - The State of Play
 
ESG in India - Persofi Offering.pdf
ESG in India - Persofi Offering.pdfESG in India - Persofi Offering.pdf
ESG in India - Persofi Offering.pdf
 
Presentation may 2014 rmit sustainability and integrated reporting
Presentation   may 2014 rmit sustainability and integrated reportingPresentation   may 2014 rmit sustainability and integrated reporting
Presentation may 2014 rmit sustainability and integrated reporting
 
Sustainability goal setting guide to 7 top third party standards
Sustainability goal setting guide to 7 top third party standardsSustainability goal setting guide to 7 top third party standards
Sustainability goal setting guide to 7 top third party standards
 
Energy & Sustainability Goal-Setting: A Guide To 7 Top Third Party Standards
Energy & Sustainability Goal-Setting: A Guide To 7 Top Third Party StandardsEnergy & Sustainability Goal-Setting: A Guide To 7 Top Third Party Standards
Energy & Sustainability Goal-Setting: A Guide To 7 Top Third Party Standards
 
Sustainability Accounting and Reporting - Social Cost of Carbon
Sustainability Accounting and Reporting -  Social Cost of CarbonSustainability Accounting and Reporting -  Social Cost of Carbon
Sustainability Accounting and Reporting - Social Cost of Carbon
 
ngo.ppt
ngo.pptngo.ppt
ngo.ppt
 
CFO15_Integrated Reporting_Final
CFO15_Integrated Reporting_FinalCFO15_Integrated Reporting_Final
CFO15_Integrated Reporting_Final
 
Corporate r esponsibility basic learning
Corporate r esponsibility  basic learningCorporate r esponsibility  basic learning
Corporate r esponsibility basic learning
 
Responsible Business Forum Sustainability Report
Responsible Business Forum Sustainability ReportResponsible Business Forum Sustainability Report
Responsible Business Forum Sustainability Report
 
Three new GRI Standards for Sustainability Reporting Come into Effect
Three new GRI Standards for Sustainability Reporting Come into EffectThree new GRI Standards for Sustainability Reporting Come into Effect
Three new GRI Standards for Sustainability Reporting Come into Effect
 
BA VALUE FOR AN ESG FRAMEWORK FOR A SUSTAINABLE BUSINESS MODEL IIBA
BA VALUE FOR AN ESG FRAMEWORK FOR A SUSTAINABLE BUSINESS MODEL IIBABA VALUE FOR AN ESG FRAMEWORK FOR A SUSTAINABLE BUSINESS MODEL IIBA
BA VALUE FOR AN ESG FRAMEWORK FOR A SUSTAINABLE BUSINESS MODEL IIBA
 

More from CA. (Dr.) Rajkumar Adukia

Global role of ca in the whole gamut of succession and transfer of asset incl...
Global role of ca in the whole gamut of succession and transfer of asset incl...Global role of ca in the whole gamut of succession and transfer of asset incl...
Global role of ca in the whole gamut of succession and transfer of asset incl...CA. (Dr.) Rajkumar Adukia
 
Opportunities for CAs as independent directors to enhance the credibility and...
Opportunities for CAs as independent directors to enhance the credibility and...Opportunities for CAs as independent directors to enhance the credibility and...
Opportunities for CAs as independent directors to enhance the credibility and...CA. (Dr.) Rajkumar Adukia
 
Value added professional opportunities for chartered accountants
Value added professional opportunities for chartered accountantsValue added professional opportunities for chartered accountants
Value added professional opportunities for chartered accountantsCA. (Dr.) Rajkumar Adukia
 
Professional services a chartered accountant can provide in preventing money ...
Professional services a chartered accountant can provide in preventing money ...Professional services a chartered accountant can provide in preventing money ...
Professional services a chartered accountant can provide in preventing money ...CA. (Dr.) Rajkumar Adukia
 
Audit will be there as long as economic or non economic activities are ther...
Audit will be there as long as economic or non   economic activities are ther...Audit will be there as long as economic or non   economic activities are ther...
Audit will be there as long as economic or non economic activities are ther...CA. (Dr.) Rajkumar Adukia
 
Encyclopedia on commercial contract management
Encyclopedia on commercial contract managementEncyclopedia on commercial contract management
Encyclopedia on commercial contract managementCA. (Dr.) Rajkumar Adukia
 
Expert role of c as in financial planning to help enrich the society
Expert role of c as in financial planning to help enrich the societyExpert role of c as in financial planning to help enrich the society
Expert role of c as in financial planning to help enrich the societyCA. (Dr.) Rajkumar Adukia
 
Corporate social responsibility an opportunity to improve the status of soc...
Corporate social responsibility   an opportunity to improve the status of soc...Corporate social responsibility   an opportunity to improve the status of soc...
Corporate social responsibility an opportunity to improve the status of soc...CA. (Dr.) Rajkumar Adukia
 
The Chartered Accountants contribution in protecting minority interest for th...
The Chartered Accountants contribution in protecting minority interest for th...The Chartered Accountants contribution in protecting minority interest for th...
The Chartered Accountants contribution in protecting minority interest for th...CA. (Dr.) Rajkumar Adukia
 
Use extraordinary power of subconscious mind to get extraordinary results in ...
Use extraordinary power of subconscious mind to get extraordinary results in ...Use extraordinary power of subconscious mind to get extraordinary results in ...
Use extraordinary power of subconscious mind to get extraordinary results in ...CA. (Dr.) Rajkumar Adukia
 
Go global with the knowledge of IPSAS the internationally accepted accounting...
Go global with the knowledge of IPSAS the internationally accepted accounting...Go global with the knowledge of IPSAS the internationally accepted accounting...
Go global with the knowledge of IPSAS the internationally accepted accounting...CA. (Dr.) Rajkumar Adukia
 
Audit to an enterprise is an important as oxygen for human being
Audit to an enterprise is an important as oxygen for human beingAudit to an enterprise is an important as oxygen for human being
Audit to an enterprise is an important as oxygen for human beingCA. (Dr.) Rajkumar Adukia
 
How to earn big riches and realise our dreams?
How to earn big riches and realise our dreams?How to earn big riches and realise our dreams?
How to earn big riches and realise our dreams?CA. (Dr.) Rajkumar Adukia
 
My thoughts on nfra consultation paper on statutory audit and auditing standa...
My thoughts on nfra consultation paper on statutory audit and auditing standa...My thoughts on nfra consultation paper on statutory audit and auditing standa...
My thoughts on nfra consultation paper on statutory audit and auditing standa...CA. (Dr.) Rajkumar Adukia
 
This Diwali discover the inner LIGHT in you!
This Diwali discover the inner LIGHT in you!This Diwali discover the inner LIGHT in you!
This Diwali discover the inner LIGHT in you!CA. (Dr.) Rajkumar Adukia
 
PROFESSIONAL OPPORTUNITIES FOR CHARTERED ACCOUTANT IN THE ALTERNATIVE DISPUTE...
PROFESSIONAL OPPORTUNITIES FOR CHARTERED ACCOUTANT IN THE ALTERNATIVE DISPUTE...PROFESSIONAL OPPORTUNITIES FOR CHARTERED ACCOUTANT IN THE ALTERNATIVE DISPUTE...
PROFESSIONAL OPPORTUNITIES FOR CHARTERED ACCOUTANT IN THE ALTERNATIVE DISPUTE...CA. (Dr.) Rajkumar Adukia
 
The Expert Role of Chartered Accountant in Stock Audit
The Expert Role of Chartered Accountant in Stock AuditThe Expert Role of Chartered Accountant in Stock Audit
The Expert Role of Chartered Accountant in Stock AuditCA. (Dr.) Rajkumar Adukia
 
Chartered Accountant’s Role in an Enterprise Risk Management
Chartered Accountant’s Role in an Enterprise Risk ManagementChartered Accountant’s Role in an Enterprise Risk Management
Chartered Accountant’s Role in an Enterprise Risk ManagementCA. (Dr.) Rajkumar Adukia
 
UNFOLDS NEW PROFESSIONAL OPPORTUNITIES AVAILABLE FOR THE CHARTERED ACCOUNTANT...
UNFOLDS NEW PROFESSIONAL OPPORTUNITIES AVAILABLE FOR THE CHARTERED ACCOUNTANT...UNFOLDS NEW PROFESSIONAL OPPORTUNITIES AVAILABLE FOR THE CHARTERED ACCOUNTANT...
UNFOLDS NEW PROFESSIONAL OPPORTUNITIES AVAILABLE FOR THE CHARTERED ACCOUNTANT...CA. (Dr.) Rajkumar Adukia
 
The role of Chartered Accountant in capacity as Virtual Entrepreneur Mentor t...
The role of Chartered Accountant in capacity as Virtual Entrepreneur Mentor t...The role of Chartered Accountant in capacity as Virtual Entrepreneur Mentor t...
The role of Chartered Accountant in capacity as Virtual Entrepreneur Mentor t...CA. (Dr.) Rajkumar Adukia
 

More from CA. (Dr.) Rajkumar Adukia (20)

Global role of ca in the whole gamut of succession and transfer of asset incl...
Global role of ca in the whole gamut of succession and transfer of asset incl...Global role of ca in the whole gamut of succession and transfer of asset incl...
Global role of ca in the whole gamut of succession and transfer of asset incl...
 
Opportunities for CAs as independent directors to enhance the credibility and...
Opportunities for CAs as independent directors to enhance the credibility and...Opportunities for CAs as independent directors to enhance the credibility and...
Opportunities for CAs as independent directors to enhance the credibility and...
 
Value added professional opportunities for chartered accountants
Value added professional opportunities for chartered accountantsValue added professional opportunities for chartered accountants
Value added professional opportunities for chartered accountants
 
Professional services a chartered accountant can provide in preventing money ...
Professional services a chartered accountant can provide in preventing money ...Professional services a chartered accountant can provide in preventing money ...
Professional services a chartered accountant can provide in preventing money ...
 
Audit will be there as long as economic or non economic activities are ther...
Audit will be there as long as economic or non   economic activities are ther...Audit will be there as long as economic or non   economic activities are ther...
Audit will be there as long as economic or non economic activities are ther...
 
Encyclopedia on commercial contract management
Encyclopedia on commercial contract managementEncyclopedia on commercial contract management
Encyclopedia on commercial contract management
 
Expert role of c as in financial planning to help enrich the society
Expert role of c as in financial planning to help enrich the societyExpert role of c as in financial planning to help enrich the society
Expert role of c as in financial planning to help enrich the society
 
Corporate social responsibility an opportunity to improve the status of soc...
Corporate social responsibility   an opportunity to improve the status of soc...Corporate social responsibility   an opportunity to improve the status of soc...
Corporate social responsibility an opportunity to improve the status of soc...
 
The Chartered Accountants contribution in protecting minority interest for th...
The Chartered Accountants contribution in protecting minority interest for th...The Chartered Accountants contribution in protecting minority interest for th...
The Chartered Accountants contribution in protecting minority interest for th...
 
Use extraordinary power of subconscious mind to get extraordinary results in ...
Use extraordinary power of subconscious mind to get extraordinary results in ...Use extraordinary power of subconscious mind to get extraordinary results in ...
Use extraordinary power of subconscious mind to get extraordinary results in ...
 
Go global with the knowledge of IPSAS the internationally accepted accounting...
Go global with the knowledge of IPSAS the internationally accepted accounting...Go global with the knowledge of IPSAS the internationally accepted accounting...
Go global with the knowledge of IPSAS the internationally accepted accounting...
 
Audit to an enterprise is an important as oxygen for human being
Audit to an enterprise is an important as oxygen for human beingAudit to an enterprise is an important as oxygen for human being
Audit to an enterprise is an important as oxygen for human being
 
How to earn big riches and realise our dreams?
How to earn big riches and realise our dreams?How to earn big riches and realise our dreams?
How to earn big riches and realise our dreams?
 
My thoughts on nfra consultation paper on statutory audit and auditing standa...
My thoughts on nfra consultation paper on statutory audit and auditing standa...My thoughts on nfra consultation paper on statutory audit and auditing standa...
My thoughts on nfra consultation paper on statutory audit and auditing standa...
 
This Diwali discover the inner LIGHT in you!
This Diwali discover the inner LIGHT in you!This Diwali discover the inner LIGHT in you!
This Diwali discover the inner LIGHT in you!
 
PROFESSIONAL OPPORTUNITIES FOR CHARTERED ACCOUTANT IN THE ALTERNATIVE DISPUTE...
PROFESSIONAL OPPORTUNITIES FOR CHARTERED ACCOUTANT IN THE ALTERNATIVE DISPUTE...PROFESSIONAL OPPORTUNITIES FOR CHARTERED ACCOUTANT IN THE ALTERNATIVE DISPUTE...
PROFESSIONAL OPPORTUNITIES FOR CHARTERED ACCOUTANT IN THE ALTERNATIVE DISPUTE...
 
The Expert Role of Chartered Accountant in Stock Audit
The Expert Role of Chartered Accountant in Stock AuditThe Expert Role of Chartered Accountant in Stock Audit
The Expert Role of Chartered Accountant in Stock Audit
 
Chartered Accountant’s Role in an Enterprise Risk Management
Chartered Accountant’s Role in an Enterprise Risk ManagementChartered Accountant’s Role in an Enterprise Risk Management
Chartered Accountant’s Role in an Enterprise Risk Management
 
UNFOLDS NEW PROFESSIONAL OPPORTUNITIES AVAILABLE FOR THE CHARTERED ACCOUNTANT...
UNFOLDS NEW PROFESSIONAL OPPORTUNITIES AVAILABLE FOR THE CHARTERED ACCOUNTANT...UNFOLDS NEW PROFESSIONAL OPPORTUNITIES AVAILABLE FOR THE CHARTERED ACCOUNTANT...
UNFOLDS NEW PROFESSIONAL OPPORTUNITIES AVAILABLE FOR THE CHARTERED ACCOUNTANT...
 
The role of Chartered Accountant in capacity as Virtual Entrepreneur Mentor t...
The role of Chartered Accountant in capacity as Virtual Entrepreneur Mentor t...The role of Chartered Accountant in capacity as Virtual Entrepreneur Mentor t...
The role of Chartered Accountant in capacity as Virtual Entrepreneur Mentor t...
 

05 Sustainability reporting

  • 1. Role of Institutions in facilitating Sustainability Reporting By CA. Rajkumar S Adukia To receive regular updates on various professional issues kindly send test mail to www.caaa.in 1 rajkumarfca-subscribe@yahoogroups.com
  • 2. The Presentation • • • • • Why Report on Sustainability? The Sustainability Report Institutions on Sustainability Trends in Sustainability The Way Forward www.caaa.in 2
  • 3. Why Report on Sustainability ? – Enhanced business value – Improved operations – Strengthened relationships – Enhanced trust and credibility www.caaa.in – Meet growing expectations of broad range of stakeholders – Improved reputation with socially responsible investors – Employee recruitment and retention – Brand protection and customer loyalty 3
  • 4. The Sustainability Report • Environmental Issues – Climate change and energy – Ecosystem services – Local environmental impacts • Health and Safety Issues • Social and Economic Issues – Community and society – Local content – Human rights – Business ethics and transparency – Labor practices – Workforce protection – Product health, safety and environmental risks – Process safety and asset integrity www.caaa.in 4
  • 6. Global Reporting Initiative • The GRI is a network based organization that has created one of the most credible sustainability reporting frameworks. • The GRI network consists of : – – – – – – – – – www.caaa.in -Governance Bodies Board of Directors, Stakeholder Council, Technical Advisory Committee and Organizational Stakeholders Secretariat Governmental Advisory Group Organizational Stakeholders Focal Points 6
  • 7. GRI Reporting Framework • G3 Guidelines • Sector Supplements • National Annexs www.caaa.in 7
  • 9. Three Pillars of CSR The three pillars of corporate social responsibility are • environment, • society, and • governance www.caaa.in 9
  • 10. The Triple Bottom Line • The TBL is an accounting framework that incorporates three dimensions of performance: – social, – environmental and – financial. www.caaa.in 10
  • 11. The Triple Bottom Line (TBL) TBL differs from traditional reporting as it includes • ecological (or environmental) and • social measures that can be difficult to assign appropriate means of measurement. The TBL dimensions are also commonly called the three Ps: people, planet and profits. We will refer to these as the 3Ps. www.caaa.in 11
  • 12. The 3Ps Policy The 3 dimensions of Sustainability Reporting • Planet - minimize the environmental impacts and work for the better utilization of natural resources • People - social and community view on people’s autonomy and quality of life • Profit - longevity of the organization is ensured by the goal of profitability earned through operational efficiency, strict cost controls and ethical and transparent behavior www.caaa.in 12
  • 14. Application of Triple Bottom Line Measurement The application of the TBL by businesses, nonprofits and governments are motivated by the principles of economic, environmental and social sustainability, but differ with regard to the way they measure the three categories of outcomes. www.caaa.in 14
  • 15. ICAI on Sustainability Reporting The Institute of Chartered Accountants of India (ICAI) has set up the ICAI – Accounting Research Foundation (ICAIARF), which has undertaken a special project to suggest a suitable framework for sustainability reporting for Indian companies. www.caaa.in 15
  • 16. MCA on Sustainability Reporting The Ministry of Corporate Affairs, Government of India in association with the Indian Institute of Corporate Affairs has released the voluntary guidelines on social, environmental and economic responsibilities of business www.caaa.in 16
  • 17. RBI on Sustainability Reporting In the financial sector, there is a visible trend to promote environmentally and socially responsible lending and investment, with the Reserve Bank of India recently issuing a circular for highlighting role of banks in promoting sustainable development. www.caaa.in 17
  • 18. GOI on Sustainability Reporting • The Government of India released the Corporate Social Responsibility Voluntary Guidelines in 2009 for businesses. • The Ministry of Corporate Affairs, Government of India has formally released the ‘National Voluntary Guidelines for the Social, Environmental and Economic Responsibilities of Business, 2011” on 8th July 2011. www.caaa.in 18
  • 19. The guidelines have 9 basic principles 1. Ethics, Transparency and Accountability 2. Goods and services that are safe and contribute to sustainability 3. Well being of employees 4. Responsive towards stakeholders 5. Respect and promote human rights www.caaa.in 19
  • 20. The guidelines have 9 basic principles 6. Environment 7. Influence public and regulatory policy in a responsible manner 8. Inclusive growth and equitable development 9. Provide value to customers and consumers www.caaa.in 20
  • 21. National Action Plan on Climate Change • A Multipronged Strategy for Sustainable Development • Established in June 2007, under the chairmanship of the Prime Minister of India, to co-ordinate national action for assessment, adaptation, and mitigation of climate change. www.caaa.in 21
  • 23. Clean Development Mechanism (CDM) in India • The total number of CDM projects registered at the Clean Development Mechanism Executive Board (CDM EB) as on September 2012 is 532 • The National Clean Development Mechanism Authority (NCDMA) has accorded Host Country Approval to 1226 projects, facilitating an investment of more than USD 3,405. www.caaa.in 23
  • 24. Clean Development Mechanism (CDM) in India • The most of the • It is estimated, if all projects are in sectors these projects get like energy efficiency, registered by the fuel switching, CDM Executive industrial processes, Board, they have the municipal solid waste potential to generate and renewable a total 573 million energy. Certified Emission Reductions (CERs) by the year 2012. www.caaa.in 24
  • 25. Green House Gas Emissions in India • A recent study by the Government of India estimates future GHG emissions, using different models. • . www.caaa.in • The study concludes that the estimates of India's per capita GHG emissions in 2030-31 vary from 2.77 to 5 tCO eq, with four of the five studies estimating that India's per capita GHG 2 emission will stay below 4 tonnes per capita 25
  • 26. Eleventh Five Year Plan (2007-2012) Highlights Energy Sector www.caaa.in 26
  • 29. CII on Sustainability Reporting • Confederation of Indian Industry [CII] and the Carbon Disclosure Project [CDP] have commenced a new initiative titled CII-CDP Disclosure to Action. The CDP-related activity in India, now in its sixth year, has clearly revealed that climate change represents significant risks and opportunities to Indian businesses. www.caaa.in 29
  • 30. Trends in Sustainability Reporting - 1 • Just 40 companies in India disclose their Sustainability Performance • Sectors like construction and building material, metals and mining, oil and gas and chemicals t lead the reporting initiative in India www.caaa.in 30
  • 31. Trends in Sustainability Reporting - 2 • Indian reporters use Global Reporting Initiative (GRI) guidelines to prepare the sustainability report • Very few Sustainability Reporters in India have a Strategy with well defined objectives and a SMART Target www.caaa.in 31
  • 32. Trends in Sustainability Reporting - 3 • The content of sustainability reports focus more on complying to the reporting guidelines requirements rather than elaborating on materiality, stakeholder engagement and future plans and targets. • Climate change has emerged on the key sustainability risks across industries www.caaa.in 32
  • 33. Trends in Sustainability Reporting - 4 • There is an increasing trend of companies engaging accountancy firms for assuring their sustainability reports in India. • A recent trend observed is to include sustainability elements as part of internal audit so that the issues are discussed at the board level. www.caaa.in 33
  • 34. Consequences of Compulsory Sustainable Reporting • The social responsibility of business leaders increases • Sustainable development and Employee training become a high priority issues for Companies • Corporate Governance improves www.caaa.in 34
  • 35. Consequences of Compulsory Sustainable Reporting • Corporate boards supervise management more effectively • Corporations implement more ethical practices • Managerial Credibility Increases www.caaa.in 35
  • 36. Integrated Reporting • Integrated Reporting <IR> is the language for sustainable business. • Companies communicate how value is created and will be preserved over the short, medium and long term • Integrated Report, talks about the way in which an organization’s strategy, governance, performance and prospects lead to the creation and preservation of value. www.caaa.in 36
  • 37. The International Integrated Reporting Council (IIRC) • Aims to create a globally accepted framework for accounting for sustainability, bringing together financial, environmental, social and governance information in an "integrated" format. www.caaa.in 37
  • 38. IIRC – IFAC - ICAI • The IIRC membership includes IFAC • The Institute of Chartered Accountants of India (ICAI) is a member of the International Federation of Accountants (IFAC) www.caaa.in 38
  • 39. Way Forward • The Sustainability Report is sure to find information on the following areas namely – Sustainability issues, challenges, dilemmas and opportunities. – Regulatory environment and fact-based information – Information of interest to investors such as materiality of issues in financial terms, vision and strategy statements, goals and targets, etc. www.caaa.in 39
  • 40. Way Forward – Explanation on identification and prioritization of material issues. – Reader friendly report design. www.caaa.in 40
  • 41. About the Author • • • • CA. Rajkumar S Adukia is an eminent business consultant, academician, writer, and speaker. He is the senior partner of Adukia & Associates. In addition to being a Chartered Accountant, Company Secretary, Cost Accountant, MBA, Dip IFR (UK), Mr. Adukia also holds a Degree in Law and Diploma in Labor Laws and IPR. Mr. Adukia, a rank holder from Bombay University completed the Chartered Accountancy examination with 1st Rank in Inter CA & 6th Rank in Final CA, and 3rd Rank in Final Cost Accountancy Course in 1983. He started his practice as a Chartered Accountant on 1st July 1983, in the three decades following which he left no stone unturned, be it academic expertise or professional development. www.caaa.in 41
  • 42. About the Author • He has been coordinating with various Professional Institutions, Associations, Universities, University Grants Commission and other Educational Institutions. • Authored more than 50 books on a vast range of topics including Internal Audit, Bank Audit, SEZ, CARO, PMLA, Anti-dumping, Income Tax Search, Survey and Seizure, IFRS, LLP, Labour Laws, Real estate, ERM, Inbound and Outbound Investments, Green Audit etc. • The author can be reached at rajkumarfca@gmail.com. For more details log on to www.caaa.in www.caaa.in 42