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.
Corporate Sustainability:A Progress Report P R October 2011 • Reviewed 3400 companies representing the national leaders from 34 countries around the world, including the 250 largest global companies • Ninety‐five percent of the 250 largest companies in the world (G250 companies) now report on their corporate (G250 companies) now report on their corporate responsibility (CR) activities, two‐thirds of non‐reporters are based in the US. • CR reporting has gained ground within the Top 100 companies in each of the 34 countries surveyed. • The total number of reporting N100 companies increased by The total number of reporting N100 companies increased by 11 percentage points, to 64 percent in 2011. • Eighty percent of G250 and 69 percent of N100 companies are now aligning to GRI reporting standards. li i i d d
GRI Reports by Region 2010* O Oceania i Af i Africa 4% 3% Northern America 14% Europe 45% Latin America 14% Asia 20%
GRI Reports by Sector 2010*300250200150100 50 0
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
Increasing Stakeholders and Demand Modern Due Diligence
Shareholder Initiatives & Coalitions• Principles for Responsible Investment (PRI)  – Currently represents over $30 Trillion in investment capital – 900+ signatories 900+ signatories• Investor Network on Climate Risk (INCR)  – Currently represents over $10 Trillion in investment capital – 100+ members 100+ members• Carbon Disclosure Project (CDP)  – Currently represents over $71 Trillion in investment capital – act on behalf of 550+ institutional investors act on behalf of 550+ 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 PRI (US) 900+ international signatoriesPARTIAL LIST OF ASSET OWNERS (200):• AFL CIO Reserve Fund / AFL CIO Staff Retirement Plan AFL‐CIO Reserve Fund / AFL‐CIO Staff Retirement Plan• CalPERS / CalSTRS• Connecticut Retirement Plans and Trust Funds (CRPTF)• General Board of Pension and Health Benefits United Methodist Church General Board of Pension and Health Benefits United Methodist Ch rch• 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 S• SEIU Pension Plans Master Trust• State Universities Retirement System of Illinois• Teachers Retirement System of the City of New York• Universal Health Care Foundation of Connecticut Universal Health Care Foundation of Connecticut
Signatories to the PRI (US) 900+ international signatoriesPARTIAL LIST OF INVESTMENT MANAGERS:• BlackRock • Boston Trust• Calvert Investments • Capital Group International • CBRE Investors • Clear Bridge Advisors• Domini Social Investments l • MFS Investment Management • JPMorgan Asset Management • Principal Global Investors • Kohlberg Kravis Roberts & Co, LLP • T. Rowe Price• Krull & Company & Company • Tower Capital Asset To er Capital Asset• Northern Trust Global Investments Management LP• Prudential Real Estate Investors• Russell Investments Russell Investments• TD Asset Management Inc.• The Townsend Group• TIAA ‐ CREF
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 US LegislationCalifornia’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 October 14, 2011 “. . . The objective of this contract is to equip the government with the i h ih h skills it requires to complete a GRI report. The work performed under this contract shall result in a core group of GSA personnel developing expertise in the application of GRI standards to GSAs operational environment, application of the GRI Framework and principles to GSAs SSPP, and how the agency should approach its first‐ever GRI sustainability report..”
Supply Chain Ripple October 13, 2011 “. . . Microsoft will also encourage all its suppliers ll it li to consider use of the reporting guidelines reporting guidelines provided by the Global Reporting Initiative. . . .”
Supply Chain Ripple Customer Training Suppliers GRI Stakeholders
Mainstream UptakeMay 2010May 2010 January 2011 January 2011
International Integrated Reporting Committee (IIRC) http://theiirc.org
G4 Development ProcessConsensus Based Approach:• Phase I:Call for Sustainability Reporting Topics• Phase II:Registration for Public Comment Period• Phase III:FIRST - Open Public Comment Period(90-day - through Nov. 24, 2011)• 2012Working Group Development
Thank you Mike Wallace Director, Focal Point USA Global Reporting Initiative email@example.com +1 212 339 0356 Twitter: M_A_Wallace Linked In: http://www.linkedin.com/in/mikewallace http://www linkedin com/in/mikewallaceVenue, Date