The document discusses sustainability reporting and the key questions that CEOs and boards should consider. More than 3,000 companies worldwide issue sustainability reports, including over two-thirds of the Fortune Global 500. While reporting is currently voluntary, the trend is toward greater transparency and disclosure as external stakeholders increasingly expect reports. Sustainability reports should communicate performance on environmental, social and economic issues as well as related risks and opportunities.
Sustainability scorecards are an increasingly important tool that affects companies at every level of the supply chain. Driven by large, multinational corporations and government regulations, more and more buyers—including the Federal government--are requiring their suppliers to engage in sustainable business practices.
Our complimentary white paper on sustainability scorecards provides you with valuable insights gained from our extensive research on supply chain sustainability including market leaders Dell, Ford, and Google, among others.
Download the white paper now to learn:
-Who is using scorecards—and why
-How NGOs, trade associations, and government are influencing the supply chain
-Three simple rules for compliance with scorecard requests
Contributors to the paper include:
Bruno Sarda – Director of Sustainability Operations at Dell:
“Our large customers demand it [sustainability disclosure] and about 2/3 of our public sector customers demand a high level of disclosure…”
Geraldine Link – Public Policy Director at National Ski Area Association:
“Energy is a very important topic in this industry and if we can reduce our carbon footprint, we can save money and help the environment at the same time. This is no longer the exception, but the rule…”
Mark Newton – Vice President of Sustainability at Timberland:
“From the highest levels of a corporation, organizations are beginning to think holistically and to engage suppliers to be innovative in their efforts…”
Covid-19 Is a Call for Retail Banks to Accelerate Digital TransformationBoston Consulting Group
We see nine imperatives that can help retail banks remain firmly on their feet during the crisis and enable them to move forward rapidly in its aftermath. Ultimately, the crisis reinforces an urgent need for banks to accelerate their digital transformations.
Sustainability scorecards are an increasingly important tool that affects companies at every level of the supply chain. Driven by large, multinational corporations and government regulations, more and more buyers—including the Federal government--are requiring their suppliers to engage in sustainable business practices.
Our complimentary white paper on sustainability scorecards provides you with valuable insights gained from our extensive research on supply chain sustainability including market leaders Dell, Ford, and Google, among others.
Download the white paper now to learn:
-Who is using scorecards—and why
-How NGOs, trade associations, and government are influencing the supply chain
-Three simple rules for compliance with scorecard requests
Contributors to the paper include:
Bruno Sarda – Director of Sustainability Operations at Dell:
“Our large customers demand it [sustainability disclosure] and about 2/3 of our public sector customers demand a high level of disclosure…”
Geraldine Link – Public Policy Director at National Ski Area Association:
“Energy is a very important topic in this industry and if we can reduce our carbon footprint, we can save money and help the environment at the same time. This is no longer the exception, but the rule…”
Mark Newton – Vice President of Sustainability at Timberland:
“From the highest levels of a corporation, organizations are beginning to think holistically and to engage suppliers to be innovative in their efforts…”
Covid-19 Is a Call for Retail Banks to Accelerate Digital TransformationBoston Consulting Group
We see nine imperatives that can help retail banks remain firmly on their feet during the crisis and enable them to move forward rapidly in its aftermath. Ultimately, the crisis reinforces an urgent need for banks to accelerate their digital transformations.
What Drives Inventory Effectiveness in a Market-Driven World? Summary ChartsLora Cecere
Survey Details: The research for this report was conducted from February 12 – October 8, 2015. Surveys were conducted among Manufacturers, Retailers, and Wholesalers/Distributors/Co-operatives with $250M+ in revenue and who use (and are familiar with) inventory optimization software (n=64). Respondents were evenly split between those using basic (ERP or ERP+APS) and advanced (software in addition to ERP/APS) software. All surveys were conducted by Supply Chain Insights.
Objective: To understand the impact of inventory optimization software on supply chain excellence. NOTE: inventory optimization software was defined as “any form of ERP (Enterprise Resource Planning), APS (Advanced Planned Software), or sophisticated inventory planning tools.”
Highlight: Companies who use advanced software are more likely to be satisfied with their software, to be effective at making inventory decisions and to drive a return on investment for their software.
Supply Chain Metrics That Matter: A Focus on Brick & Mortar Retail-18 FEB 2013Lora Cecere
The bricks and mortar retailer is being squeezed. Growth is slowing and margin is under pressure. With the rise of e-commerce, the role of the store is being redefined. It is about service and the customer experience. As a result, it is time to rethink the metrics that matter and focus outside-in on the shopper experience.
In this report, we share insights on the current state of bricks and mortar retail and offer our suggestions.
Brick & mortar retailers have weathered an intense decade with the persistent rise of e-commerce. The shopper has changed and recovery from the Great Recession is ongoing, but slow. Our previous Supply Chain Metrics That Matter: A Focus on Retail report focused on the broader industry trends affecting five different divisions of retailers and the challenges of multi-channel retail. This report narrows the focus to three segments of brick & mortar retailers struggling to adapt to the new world.
A retailer is not a retailer. We believe that retailers should be compared by business model. We do not believe that one can throw all retailers together and identify the “most improved” or “best” supply chain. There are too many variables and circumstances affecting the retail landscape to make valid comparisons. In our research, we find that small and well-defined peer groups offer the best way forward for understanding both segment and industry specific trends.
The industry segments analyzed in this report are grocery, mass and specialty. Grocery retailers are involved in the sale of perishable and non-perishable food stuffs. Mass retailers are larger companies focused on providing a comprehensive retail experience to their customers. Finally, specialty retailers are dedicated to specific customers, activities and goods. The companies in this analysis represent both American and global retailers.
Our grocery peer group consists of Carrefour, Delhaize Group, Safeway and The Kroger Co. The mass retailer peer group includes Costco, Metro, Target and Walmart. The choice of specialty retailers was by far the most difficult because there are so many dedicated stores in this category. For this publication, our peer group includes Bed Bath & Beyond, Dick’s Sporting Goods, Foot Locker and Ross Stores. Additional information about all of these companies is presented in the Appendix.
How life sciences can win with blockchainToni Borges
The IBM Institute for Business Value surveyed 205 life sciences executives in 18 countries. The study, conducted in collaboration with the Economist Intelligence Unit (EIU), included chief financial officers (CFOs), chief technology officers (CTOs) and chief information officers (CIOs). Those participating had to meet specific criteria: they were either working with — or planning to work with — blockchains in the next 12 months, and they needed to be familiar with the blockchain strategies of their organizations.
Many of the world’s most powerful brands were established when we had a seemingly endless supply of water, farmland and human capital. If companies wanted to expand their production or open a new facility, they did so with little concern about the availability of resources to support the operation. Today’s executives, however, are faced with a barrage of crises related to water and energy scarcity, talent shortages and extreme weather events that put their facilities and ability to meet customer demand at constant risk.
This report explores labour, physical and natural resource challenges. It is based on a survey of 800 respondents in four industries and five regions around the world and on the Global Resource Management Index, which explores the interplay of indicators of resource use, sustainability, capacity and regulatory context in the same four industries and five regions. The included industries—food & beverage, hospitality services, consumer goods and healthcare services—are among those that typically face a mix of resource challenges globally and have proven innovative in addressing them.
Supply Chain Metrics That Matter: A Focus on Medical Device Companies – 2016Lora Cecere
Executive Overview
Globalization. Compliance. Risk Management. Corporate Social Responsibility (CSR). Patient outcomes. Over the last decade the number and variety of supply chain initiatives exploded for the medical device leader. As a result, the supply chain group, and the related business imperatives, grew in importance.
Overall the medical device supply chain fared better through the decade than other industries, despite the fact that they are smaller, more focused companies trying to become global. (see Table C in the appendix for company size). On average the industry performance on operating margin and inventory turns was better in 2006 than 2015. The reason? The medical device supply chain entered the decade as a supply chain laggard. Through focused supply chain programs they were able to catch up to the level of other industries.
Table 6. Industry Snapshot of Performance
We hope this report can be a guide to help companies understand what is possible, and how supply chain metrics drive value. In the medical device industry we find most companies to be stuck. They have either regressed in supply chain performance or they are at the same point they were a decade ago. For many supply chain leaders that attend conferences, this may seem unfathomable. There is an industry belief that companies have implemented new technologies, and evolved processes, and driven improved balance sheet results. The goal of this report is to enable benchmarking and to spark a new conversation on the definition of supply chain excellence.
Resilient Supply Chains: How to Dynamically Manage Risk, Opportunity, and Bus...IHS
Supply chain disruptions are occurring at an alarming rate. An unrelenting barrage of man-made risk and natural disasters has made a profound and highly-visible impact on many global operations. Despite immediate attention on short term recovery, companies affected experience sustained, long-term impacts to share price, shareholder value, and operating performance.
Companies can no longer afford to be unprepared for the inevitability of disruption. As simple players within large, globally-integrated supply chains, they must become resilient to the volatile factors threatening sustained performance. And, resilience will only be achieved when companies master the ability to sense and respond to changes -- before they occur.
Join this 1-hour webcast where IHS experts will discuss supply chain risk and outline the importance of becoming resilient:
Who is at risk from supply chain disruption?
What does it mean to be resilient?
Where do traditional approaches to risk fail?
Why are leaders re-tooling their super-lean supply chains?
How can your organization sense and respond to change?
A recording of this presentation can be viewed here: http://www.slideshare.net/ihs_supplychain/resilient-supply-chains-how-to-dynamically-manage-risk-opportunity-and-business-continuity-25924392
In all of its forms, risk management is rapidly growing in importance within the commodity asset class. It will only become even more critical and complex in the future. Driven by unprecedented levels of change in the industry ranging from geopolitics to carbon, effective risk management is shifting for many commodity firms from just another activity to be managed to a critical component of business strategy that helps drive and inform brand, gain financing and trust, and demonstrates proper controls.
Supply Chain Metrics That Matter: Third Party Logistics Providers-10 DEC 2013Lora Cecere
Executive Overview
Third party logistics (3PL) providers fill a critical role in today’s global supply chains. With the rise in e-commerce, the growth of global markets, and the reshaping of the retail market, dependency on 3PLs is rising. It is an industry with fierce competition. Despite the promises of technology-driven differentiation, as of yet, no 3PL has successfully been able to differentiate and create significant brand loyalty. This is the market opportunity moving forward.
Today, companies on average send 30% of goods through third party logistics (3PL) providers. The 3PL market is now $148 billion in size with single-digit annual growth. Hit hard by the Great Recession, the industry is still in recovery. The 3PL industry has matured over the last 50 years; but it operates at a low margin, struggling to balance what we term The Effective Frontier.
The ongoing inability to drive resiliency on The Effective Frontier by managing tradeoffs of growth, profitability, cycle and complexity should be a concern for those working in, or working with, the 3PL industry. Comparable results from ten industries are shown in Table 1, ranked by average operating margin. 3PLs not only occupy the second lowest ranking, they have also seen the most significant drop in operating margin as a percentage since 2000. In this report, we look more closely at the current state of the industry.
Supply Chain Metrics That Matter: A Focus on the Chemical IndustryLora Cecere
Supply Chain Metrics That Matter is a series of reports published intermittently throughout the year by Supply Chain Insights LLC. Within the world of Supply Chain Management (SCM), each industry is unique. To help companies understand the differences, we share deep analysis in each report.
While we find it useful to understand the evolution of supply chain excellence by comparing industries, we feel the true stories of supply chain excellence can only be really understood by comparing what happened within a period by peer group. The goal of this series is to share these insights.
The use of new forms of data is not an evolution. Instead, powering big data supply chains, and innovating through new forms of analytics, is a step change.
New forms of data do not fit traditional architectures. Traditional supply chains were architected to use structured data with software using relational databases. The big data era will make many of the investments from the last decade obsolete.
Big data offers the opportunity to redefine supply chain processes from the outside-in (from the channel back) and define the customer-centric supply chain. This is in stark contrast to the inflexible IT investments installed over the last decade to respond inside-out based on order shipments. These traditional investments in Enterprise Resource Planning (ERP), Advanced Planning Systems (APS) and traditional Business Intelligence (BI) for reporting, improved the supply chain response, but did not allow the organization to sense, shape or orchestrate outside-in. New forms of data (e.g., images, social data, sensor transmission, input from global positioning systems (GPS), the Internet of Things, and unstructured text from email, blogs and ratings and reviews) offer new opportunities. They also require new techniques and technologies.
Big data offers new opportunities for the corporation to listen, test and learn, and respond faster. In this study, companies see the greatest opportunity to use big data for “demand” (to better know the customer and improve the response); however, actual investments are in “supply” not “demand.” Respondents view supply-centric projects like product traceability (involving product serialization and traceability), supply chain visibility and temperature controlled handling as important.
Is big data a problem or a new market opportunity? Like the respondents of this survey, we believe that big data represents an opportunity for all. In the study, one-fourth of respondents currently have a big data initiative. However, interest is growing. Sixty-five percent have or plan to have a big data initiative in the future. Despite the hype, and the intensity of marketing rhetoric in the market, in our year-over-year studies on big data we see very little change in activity.
Despite the fact that the IT group is more likely to see big data as a problem, 49% of those with a big data initiative report that it is headed by an IT leader.
Big data represents a new opportunity, but seizing it requires a new form of leadership. It can ignite new business models and drive channel opportunities. However, it cannot be big data for big data itself. Instead, the initiatives need to be aligned to business objectives with a focus on small and iterative projects. It requires innovation. To move forward, companies need to embrace new technologies and redesign processes. It is not the case of stuffing new forms of data into old processes.
Supply Chain Metrics That Matter – A Focus on Auto Parts Companies 19 SEP 2017Lora Cecere
Report Details: This report is based on analysis of financial balance sheet and income statement data within the Automotive Parts industry, for the period of 2004-2016. The data is collected from YCharts.
Objective: To use the financial balance sheet and income statement data to better understand the state of the Automotive Parts industry supply chains and to determine which companies’ supply chains did the best on the delivery of a portfolio of metrics over the last 13 years.
Highlight: As the technology for automotive vehicles continues to evolve, it will become more paramount than ever for Auto Parts companies to become more demand-driven in their supply chain planning processes. Companies across the board saw their revenue drop significantly during the 2004-2016 period. Those who redefined their manufacturing and distribution processes, drove strong balance sheet results. Others learned that doing traditional retail more efficiently was not enough. As a result only one company, Autoliv Inc, made the list of Supply Chains to Admire Winners.
Capitalizing on the ICD-10 Coding System: What Healthcare Organizations Need ...Cognizant
Having transitioned successfully to the ICD-10 coding system, healthcare organizations must now look beyond simply achieving compliance, and employ the system to identify and eliminate financial divergence, reduce revenue leaks, improve quality ratings, and drive competitive advantage.
What Drives Inventory Effectiveness in a Market-Driven World? Summary ChartsLora Cecere
Survey Details: The research for this report was conducted from February 12 – October 8, 2015. Surveys were conducted among Manufacturers, Retailers, and Wholesalers/Distributors/Co-operatives with $250M+ in revenue and who use (and are familiar with) inventory optimization software (n=64). Respondents were evenly split between those using basic (ERP or ERP+APS) and advanced (software in addition to ERP/APS) software. All surveys were conducted by Supply Chain Insights.
Objective: To understand the impact of inventory optimization software on supply chain excellence. NOTE: inventory optimization software was defined as “any form of ERP (Enterprise Resource Planning), APS (Advanced Planned Software), or sophisticated inventory planning tools.”
Highlight: Companies who use advanced software are more likely to be satisfied with their software, to be effective at making inventory decisions and to drive a return on investment for their software.
Supply Chain Metrics That Matter: A Focus on Brick & Mortar Retail-18 FEB 2013Lora Cecere
The bricks and mortar retailer is being squeezed. Growth is slowing and margin is under pressure. With the rise of e-commerce, the role of the store is being redefined. It is about service and the customer experience. As a result, it is time to rethink the metrics that matter and focus outside-in on the shopper experience.
In this report, we share insights on the current state of bricks and mortar retail and offer our suggestions.
Brick & mortar retailers have weathered an intense decade with the persistent rise of e-commerce. The shopper has changed and recovery from the Great Recession is ongoing, but slow. Our previous Supply Chain Metrics That Matter: A Focus on Retail report focused on the broader industry trends affecting five different divisions of retailers and the challenges of multi-channel retail. This report narrows the focus to three segments of brick & mortar retailers struggling to adapt to the new world.
A retailer is not a retailer. We believe that retailers should be compared by business model. We do not believe that one can throw all retailers together and identify the “most improved” or “best” supply chain. There are too many variables and circumstances affecting the retail landscape to make valid comparisons. In our research, we find that small and well-defined peer groups offer the best way forward for understanding both segment and industry specific trends.
The industry segments analyzed in this report are grocery, mass and specialty. Grocery retailers are involved in the sale of perishable and non-perishable food stuffs. Mass retailers are larger companies focused on providing a comprehensive retail experience to their customers. Finally, specialty retailers are dedicated to specific customers, activities and goods. The companies in this analysis represent both American and global retailers.
Our grocery peer group consists of Carrefour, Delhaize Group, Safeway and The Kroger Co. The mass retailer peer group includes Costco, Metro, Target and Walmart. The choice of specialty retailers was by far the most difficult because there are so many dedicated stores in this category. For this publication, our peer group includes Bed Bath & Beyond, Dick’s Sporting Goods, Foot Locker and Ross Stores. Additional information about all of these companies is presented in the Appendix.
How life sciences can win with blockchainToni Borges
The IBM Institute for Business Value surveyed 205 life sciences executives in 18 countries. The study, conducted in collaboration with the Economist Intelligence Unit (EIU), included chief financial officers (CFOs), chief technology officers (CTOs) and chief information officers (CIOs). Those participating had to meet specific criteria: they were either working with — or planning to work with — blockchains in the next 12 months, and they needed to be familiar with the blockchain strategies of their organizations.
Many of the world’s most powerful brands were established when we had a seemingly endless supply of water, farmland and human capital. If companies wanted to expand their production or open a new facility, they did so with little concern about the availability of resources to support the operation. Today’s executives, however, are faced with a barrage of crises related to water and energy scarcity, talent shortages and extreme weather events that put their facilities and ability to meet customer demand at constant risk.
This report explores labour, physical and natural resource challenges. It is based on a survey of 800 respondents in four industries and five regions around the world and on the Global Resource Management Index, which explores the interplay of indicators of resource use, sustainability, capacity and regulatory context in the same four industries and five regions. The included industries—food & beverage, hospitality services, consumer goods and healthcare services—are among those that typically face a mix of resource challenges globally and have proven innovative in addressing them.
Supply Chain Metrics That Matter: A Focus on Medical Device Companies – 2016Lora Cecere
Executive Overview
Globalization. Compliance. Risk Management. Corporate Social Responsibility (CSR). Patient outcomes. Over the last decade the number and variety of supply chain initiatives exploded for the medical device leader. As a result, the supply chain group, and the related business imperatives, grew in importance.
Overall the medical device supply chain fared better through the decade than other industries, despite the fact that they are smaller, more focused companies trying to become global. (see Table C in the appendix for company size). On average the industry performance on operating margin and inventory turns was better in 2006 than 2015. The reason? The medical device supply chain entered the decade as a supply chain laggard. Through focused supply chain programs they were able to catch up to the level of other industries.
Table 6. Industry Snapshot of Performance
We hope this report can be a guide to help companies understand what is possible, and how supply chain metrics drive value. In the medical device industry we find most companies to be stuck. They have either regressed in supply chain performance or they are at the same point they were a decade ago. For many supply chain leaders that attend conferences, this may seem unfathomable. There is an industry belief that companies have implemented new technologies, and evolved processes, and driven improved balance sheet results. The goal of this report is to enable benchmarking and to spark a new conversation on the definition of supply chain excellence.
Resilient Supply Chains: How to Dynamically Manage Risk, Opportunity, and Bus...IHS
Supply chain disruptions are occurring at an alarming rate. An unrelenting barrage of man-made risk and natural disasters has made a profound and highly-visible impact on many global operations. Despite immediate attention on short term recovery, companies affected experience sustained, long-term impacts to share price, shareholder value, and operating performance.
Companies can no longer afford to be unprepared for the inevitability of disruption. As simple players within large, globally-integrated supply chains, they must become resilient to the volatile factors threatening sustained performance. And, resilience will only be achieved when companies master the ability to sense and respond to changes -- before they occur.
Join this 1-hour webcast where IHS experts will discuss supply chain risk and outline the importance of becoming resilient:
Who is at risk from supply chain disruption?
What does it mean to be resilient?
Where do traditional approaches to risk fail?
Why are leaders re-tooling their super-lean supply chains?
How can your organization sense and respond to change?
A recording of this presentation can be viewed here: http://www.slideshare.net/ihs_supplychain/resilient-supply-chains-how-to-dynamically-manage-risk-opportunity-and-business-continuity-25924392
In all of its forms, risk management is rapidly growing in importance within the commodity asset class. It will only become even more critical and complex in the future. Driven by unprecedented levels of change in the industry ranging from geopolitics to carbon, effective risk management is shifting for many commodity firms from just another activity to be managed to a critical component of business strategy that helps drive and inform brand, gain financing and trust, and demonstrates proper controls.
Supply Chain Metrics That Matter: Third Party Logistics Providers-10 DEC 2013Lora Cecere
Executive Overview
Third party logistics (3PL) providers fill a critical role in today’s global supply chains. With the rise in e-commerce, the growth of global markets, and the reshaping of the retail market, dependency on 3PLs is rising. It is an industry with fierce competition. Despite the promises of technology-driven differentiation, as of yet, no 3PL has successfully been able to differentiate and create significant brand loyalty. This is the market opportunity moving forward.
Today, companies on average send 30% of goods through third party logistics (3PL) providers. The 3PL market is now $148 billion in size with single-digit annual growth. Hit hard by the Great Recession, the industry is still in recovery. The 3PL industry has matured over the last 50 years; but it operates at a low margin, struggling to balance what we term The Effective Frontier.
The ongoing inability to drive resiliency on The Effective Frontier by managing tradeoffs of growth, profitability, cycle and complexity should be a concern for those working in, or working with, the 3PL industry. Comparable results from ten industries are shown in Table 1, ranked by average operating margin. 3PLs not only occupy the second lowest ranking, they have also seen the most significant drop in operating margin as a percentage since 2000. In this report, we look more closely at the current state of the industry.
Supply Chain Metrics That Matter: A Focus on the Chemical IndustryLora Cecere
Supply Chain Metrics That Matter is a series of reports published intermittently throughout the year by Supply Chain Insights LLC. Within the world of Supply Chain Management (SCM), each industry is unique. To help companies understand the differences, we share deep analysis in each report.
While we find it useful to understand the evolution of supply chain excellence by comparing industries, we feel the true stories of supply chain excellence can only be really understood by comparing what happened within a period by peer group. The goal of this series is to share these insights.
The use of new forms of data is not an evolution. Instead, powering big data supply chains, and innovating through new forms of analytics, is a step change.
New forms of data do not fit traditional architectures. Traditional supply chains were architected to use structured data with software using relational databases. The big data era will make many of the investments from the last decade obsolete.
Big data offers the opportunity to redefine supply chain processes from the outside-in (from the channel back) and define the customer-centric supply chain. This is in stark contrast to the inflexible IT investments installed over the last decade to respond inside-out based on order shipments. These traditional investments in Enterprise Resource Planning (ERP), Advanced Planning Systems (APS) and traditional Business Intelligence (BI) for reporting, improved the supply chain response, but did not allow the organization to sense, shape or orchestrate outside-in. New forms of data (e.g., images, social data, sensor transmission, input from global positioning systems (GPS), the Internet of Things, and unstructured text from email, blogs and ratings and reviews) offer new opportunities. They also require new techniques and technologies.
Big data offers new opportunities for the corporation to listen, test and learn, and respond faster. In this study, companies see the greatest opportunity to use big data for “demand” (to better know the customer and improve the response); however, actual investments are in “supply” not “demand.” Respondents view supply-centric projects like product traceability (involving product serialization and traceability), supply chain visibility and temperature controlled handling as important.
Is big data a problem or a new market opportunity? Like the respondents of this survey, we believe that big data represents an opportunity for all. In the study, one-fourth of respondents currently have a big data initiative. However, interest is growing. Sixty-five percent have or plan to have a big data initiative in the future. Despite the hype, and the intensity of marketing rhetoric in the market, in our year-over-year studies on big data we see very little change in activity.
Despite the fact that the IT group is more likely to see big data as a problem, 49% of those with a big data initiative report that it is headed by an IT leader.
Big data represents a new opportunity, but seizing it requires a new form of leadership. It can ignite new business models and drive channel opportunities. However, it cannot be big data for big data itself. Instead, the initiatives need to be aligned to business objectives with a focus on small and iterative projects. It requires innovation. To move forward, companies need to embrace new technologies and redesign processes. It is not the case of stuffing new forms of data into old processes.
Supply Chain Metrics That Matter – A Focus on Auto Parts Companies 19 SEP 2017Lora Cecere
Report Details: This report is based on analysis of financial balance sheet and income statement data within the Automotive Parts industry, for the period of 2004-2016. The data is collected from YCharts.
Objective: To use the financial balance sheet and income statement data to better understand the state of the Automotive Parts industry supply chains and to determine which companies’ supply chains did the best on the delivery of a portfolio of metrics over the last 13 years.
Highlight: As the technology for automotive vehicles continues to evolve, it will become more paramount than ever for Auto Parts companies to become more demand-driven in their supply chain planning processes. Companies across the board saw their revenue drop significantly during the 2004-2016 period. Those who redefined their manufacturing and distribution processes, drove strong balance sheet results. Others learned that doing traditional retail more efficiently was not enough. As a result only one company, Autoliv Inc, made the list of Supply Chains to Admire Winners.
Capitalizing on the ICD-10 Coding System: What Healthcare Organizations Need ...Cognizant
Having transitioned successfully to the ICD-10 coding system, healthcare organizations must now look beyond simply achieving compliance, and employ the system to identify and eliminate financial divergence, reduce revenue leaks, improve quality ratings, and drive competitive advantage.
Avoiding the Reporting Trap - A Frontrunner Approach for Building 'Investor P...Finch & Beak
From 18 years of experience and supported by 2014 Dow Jones Sustainability Index data from the chemical, pharmaceutical, food and telecommunication industries, this report is created for companies that are looking to improve their ROI from sustainability by embedding it into the business strategy. Using best practice examples on sustainable innovations , it shows an effective approach to actively avoid the reporting trap.
Never worry about accounting homework again, because our professionals are here! Our account service comes with a team of professionals who are more than ready to take on your assignment just log on to http://www.helpwithassignment.com/accounting-assignment-help
Sustainability Reporting: Definition, Benefits, And Challenges | Enterprise W...Enterprise Wired
Sustainability reporting has emerged as a critical tool for organizations to transparently communicate their environmental, social, and governance (ESG) performance.
When it comes to sustainability reporting, companies may feel like they’re in an increasingly uncomfortable public-private vice. On one side, consumers and shareholders are pressuring organizations to be better corporate citizens and increase transparency. Governments are establishing more reporting requirements as well, which will inevitably multiply through initiatives such as the recent Sustainable Innovation Forum at COP21.
No matter how you look at it, the call for climate action is coming
in surround sound. Integrated reporting is becoming more and
more mainstream.
The good news is that sustainability programs and reporting can
boost consumer confidence, shareholder esteem — and a company’s bottom line.
ACCOUNTING MATTERSThe business case for integrated reporti.docxnettletondevon
ACCOUNTING MATTERS
The business case for integrated reporting:
Insights from leading practitioners, regulators,
and academics
Jenna J. Burke *,1, Cynthia E. Clark
School of Business, Bentley University, 175 Forest Street, Waltham, MA 02452, U.S.A.
Business Horizons (2016) 59, 273—283
Available online at www.sciencedirect.com
ScienceDirect
www.elsevier.com/locate/bushor
KEYWORDS
Integrated reporting;
IIRC;
ESG reporting;
Non-financial
disclosure
Abstract Integrated reporting, a new development in the reporting landscape,
seeks to concisely communicate a firm’s value through a more holistic picture that
integrates financial and non-financial information. This practice is in its infancy in the
United States and Europe, with many firms unsure of what integrated reporting is,
what its benefits are, and even how to set it up. Drawing upon transcripts from
19 unstructured panel interviews at a global symposium on the subject, we discuss the
business case for integrated reporting, as well as the multitude of challenges a firm
faces when beginning its integrated reporting journey. We also summarize experi-
ences and tips from interviewees on the need for integrated thinking, the most
effective use of the International Integrated Reporting Council’s framework, the best
way to obtain high-quality data, the ideal audience of such reports, and the options
for report assurance.
# 2016 Kelley School of Business, Indiana University. Published by Elsevier Inc. All
rights reserved.
1. An overview of integrated reporting
There is a high demand for corporate reporting on
integrated financial, social, and environmental
metrics (Stewart, 2015). This demand comes
from a broad set of stakeholders, ranging from
customers and suppliers to investors and employees
(KPMG, 2013). To address this demand, integrated
reporting offers a focus on long-term performance
* Corresponding author
E-mail addresses: [email protected] (J.J. Burke),
[email protected] (C.E. Clark)
1 Doctoral candidate in accountancy
0007-6813/$ — see front matter # 2016 Kelley School of Business, I
http://dx.doi.org/10.1016/j.bushor.2016.01.001
from various perspectives. Gone are the days where
financial performance is the only measure of a
company’s worth.
Integrated reporting is a relatively new develop-
ment. It seeks to offer a more holistic picture of the
modern corporation by shifting away from stand-
alone sustainability or social responsibility reports,
and toward a document that communicates a broad-
er picture of business model value creation. Adopt-
ers of integrated reporting believe that it makes a
firm’s strategy more transparent and that it instills
greater confidence in the sustainability of the firm’s
business model. Yet despite a growing demand for
transparency, very few U.S. firms are currently
issuing an integrated report (KPMG, 2013).
ndiana University. Published by Elsevier Inc. All rights reserved.
http://crossmark.crossref.org/dialog/?doi=10.1016/j.bushor.2016.01.001&.
Term Paper: Towards a Definition of Organizational SustainabilityAntony Upward
This term paper for York University Master of Environmental Studies course ES/ENVS5150 Perspectives on Green Business (Fall 2010, Prof. Brian Milani) develops a working definition of organizational sustainability and explores the implications for the reporting of organizational performance.
This paper got a positive review from Prof. Milani who said the paper was "interesting and thoughtful".
Presentation delivered at the Women in Finance Conference, South Africa.
The presentation deals with Integrated Sustainability Reporting, South Africa, 2010.
SustainAbility launched a tool to help companies improve transparency in their sustainability reporting.
The report notes that in order for transparency to instigate change, companies must increase their efforts on three transparency elements: materiality, valuation of externalities and integration.
IR Integrated Reporting - Creating Value Value to the Board #IIRCAgustin del Castillo
There is a recognized need to promote financial stability and sustainable development. Much can be achieved
if investment decisions are made on the basis of long- term value creation, especially if corporate behaviour
is aligned to this aim. Demonstrating the link between investment decisions, corporate behaviour and reporting is one aim of this Creating Value series.
Triggers and considerations for refreshing CSR marketing servicesTilly Pick
A major trend that I consider in my work and that is influencing tomorrow’s winners is the rise in environmental, social and governance principles (ESG). That’s code for “we need to all be considerate global citizens.” (CSR, or Corporate Social Responsibility, is how ESG relates to brand marketing.) People are taking notice, at all levels and everywhere. From stock exchanges to massive pension funds, the UN to Millennials, and big non-profits to those on shoe-string budgets, the discussions and work that are happening will lead to good things. For customers. Investors. Employees. Suppliers. Our communities, too. Nirvana for marketers wired to create value that makes a difference. Follow me here, on Twitter and LinkedIn if you feel the same way.
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Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
Know more: https://www.synapseindia.com/technology/mean-stack-development-company.html
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Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
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Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
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1. Climate
change
and
sustainability
Seven
questions
CEOs
and
boards
should
ask
about
‘triple
bottom
line’
reporting.
1.
Who
issues
sustainability
reports?
More
than
3,000
companies
worldwide,
including
more
than
two-‐thirds
of
the
Fortune
Global
500.
2.
Why
report
on
sustainability
if
you
don’t
have
to?
Increasingly,
external
stakeholders
such
as
institutional
investors
expect
it.
Reporting
can
also
bring
operational
improvements,
strengthen
compliance,
and
enhance
your
corporate
reputation.
3.
What
information
should
a
sustainability
report
contain?
Reports
should
contain
key
performance
indicators
relevant
to
the
reporter’s
industry.
Four
principles
for
deciding
what
to
include
are
materiality,
stakeholder
inclusiveness,
sustainability
context,
and
completeness.
4.
What
governance,
systems
and
processes
are
needed
to
report
on
sustainability?
Governance
requires
a
high-‐level
mandate
and
clear
reporting
lines.
Also
needed:
robust
systems
and
processes
that
help
companies
collect,
store
and
analyze
sustainability
information.
5.
Do
sustainability
reports
have
to
be
audited?
Not
yet.
But
they
are
being
more
closely
monitored
than
ever
before.
As
this
trend
continues,
users
of
sustainability
information
will
come
to
expect
that
the
information
has
been
validated
by
a
reliable
third
party.
6.
What
are
the
challenges
and
risks
of
reporting?
Sustainability
reporting
presents
many
challenges,
including
data
consistency,
striking
a
balance
between
positive
and
negative
information,
continually
improving
performance
and
keeping
reports
readable
and
concise.
7.
How
can
companies
get
the
most
value
out
of
sustainability
reporting?
Sustainability
reports
should
be
mandatory
reading
for
all
employees,
and
can
be
a
valuable
tool
for
communicating
with
external
audiences
as
well.
Setting
targets
in
the
form
of
KPIs
also
forces
the
organization
to
meet
publicly
stated
goals,
which
makes
reporting
an
accountability
tool.
Contacts
Contents
Download
our
current
thought
leadership
and
research
findings
at
ey.com/climatechange
In
the
face
of
mounting
pressure
to
be
transparent,
a
growing
number
of
organizations
are
choosing
to
report
on
sustainability
or
corporate
social
responsibility
(CSR).
Sustainability
reports
help
readers
understand
how
well
the
2. reporting
organization
adheres
to
the
“triple
bottom
line”
of
environmental,
social
sustainability-‐related
risks
and
opportunities
facing
the
reporting
entity,
whether
it’s
a
public
or
private
An
organization
that
reports
on
its
sustainability
practices
is
expected
to
show
not
only
where
it
has
succeeded,
but
where
it
may
have
fallen
short.
This
creates
an
element
of
reputational
risk
in
the
short
organization’s
“triple
bottom
line”
performance;
greater
stakeholder
trust;
improved
risk
management;
and
data
on
issues
such
as
greenhouse
gas
emissions
(GHG),
water
use,
and
supply
chain
activities
can
help
companies
enhance
decision-‐making
while
reducing
risk.
Failure
to
report
on
sustainability,
by
contrast,
can
increase
risk.
Companies
that
do
not
release
sustainability
information
may
appear
less
transparent
than
competitors
that
do,
coming
across
as
laggards
becomes
mandatory
and
standards
are
tightened,
glaring
discrepancies
might
appear
between
past
reports
and
newer
ones.
All
of
these
factors
have
created
momentum
in
the
direction
of
more
openness
and
more
reporting.
Although
most
reporting
is
voluntary,
the
broad
trend
is
toward
greater
disclosure.
Voluntary
reporting
standards
have
been
developed
to
guide
organizations
in
preparing
sustainability
reports
(see
Section
3).
As
a
result,
many
are
considering
reporting,
but
have
not
yet
set
up
the
processes
and
systems
needed
reputation
and
to
reduce
any
long-‐term
risks
related
to
sustainability.
boards
should
ask
about
‘triple
bottom
line’
reporting.
01
Reporting
is
sometimes
thought
of
as
the
province
of
large
organizations,
but
it’s
becoming
common
among
midsize
and
smaller
enterprises
as
well.
Questions
they
ask
is,
“Who
else
is
doing
this?”
More
than
3,000
companies
worldwide
02
Download
our
current
thought
leadership
and
research
findings
at
ey.com/climatechange
Ford,
Johnson
&
Johnson,
Chevron,
ConocoPhillips,
Xerox,
Microsoft,
Cisco,
HP,
Disney,
Procter
&
Gamble
and
Best
Buy.
Among
European
companies,
reporters
include
Vodafone,
Siemens,
Shell,
BASF,
Arcelor
Mittal,
Novartis,
Carrefour,
Nokia,
HSBC
and
Novo
Nordisk.
Sustainability
reporting
was
originally
done
mostly
by
consumer-‐based
businesses
and
Permanente,
cities
including
New
York
and
Chicago,
and
even
business
and
trade
associations.
Reporting
has
developed
more
slowly
in
North
America
than
in
some
other
regions.
nearly
20
years
ago.
In
Sweden,
all
state-‐owned
companies
are
required
to
report
publicly
on
sustainability.
Japanese
companies
predominate
in
sustainability
reporting
in
Asia,
but
Chinese
companies
are
starting
to
do
it
as
well.
Reporting
is
sometimes
thought
of
as
the
province
of
large
organizations,
and
many
reporting
entities
are
indeed
big
multinationals.
But
the
practice
is
also
becoming
common
among
midsize
and
smaller
enterprises.
For
example,
Vancouver
City
Savings
(Vancity),
a
midsize
credit
union,
based
in
Vancouver,
Canada,
is
a
leading
sustainability
reporter.
3. 1.
Who
issues
sustainability
reports?
Research
by
Ernst
&
Young
shows
that
more
than
two-‐thirds
of
the
Fortune
Global
500
companies
publish
some
form
of
sustainability
or
corporate
responsibility
report.
with
a
long-‐term
trend.
Although
reporting
is
voluntary,
the
broad
trend
is
toward
greater
disclosure.
Download
our
current
thought
leadership
and
research
findings
at
ey.com/climatechange
Companies
that
have
adopted
leading
practices
in
sustainability
reporting
BHP
Billiton
stakeholders
to
clearly
understand
the
issues
BHP
Billiton
faces
and
the
management
strategies
in
place
to
address
them.
http://www.bhpbilliton.com/bb/sustainableDevelopment.jsp
Veolia
Environnement
information
into
their
annual
report
and
accounts.
Leading
reporters
integrate
them
fully,
rather
than
just
including
a
small
www.sustainable-development.veolia.com
Vancouver
City
Savings
(Vancity)
Sustainability
Reporting
Award.
Vancity
was
praised
for
clearly
demonstrating
how
it
engages
stakeholders
and
for
integrating
“triple
bottom
line”
thinking
into
its
business
operations.
http://www.vancity.com/AboutUs/OurBusiness/OurReports
Telefónica
S.A.
This
major
Spanish
telecommunications
company
is
recognized
for
adding
credibility
to
its
reporting
through
third-‐party
assurance.
It
was
a
runner-‐up
in
the
CR
Reporting
Awards
conferred
by
Corporate
Register,
an
organization
that
promotes
corporate
responsibility
worldwide.
publications.telefonica.com/node/46131
Equity
analysts
increasingly
consider
sustainability
practices
when
valuing
and
rating
public
companies.
Download
our
current
thought
leadership
and
research
findings
at
ey.com/climatechange
Pressure
from
external
stakeholders
Although
most
reporting
is
voluntary,
companies
face
growing
pressure
to
release
information
community
associations,
customers,
suppliers
and
employees
want
more
information
about
companies’
long-‐term
impact
on
society.
In
particular,
powerful
customers
can
force
companies
to
become
more
transparent,
the
classic
example
being
Walmart,
which
launched
a
supplier
sustainability
initiative
in
July
2009.
Pressure
from
institutional
investors
Shareholder
initiatives
such
as
the
United
Nations
Principles
for
Responsible
Investment
its
kind,
Principles
for
Responsible
Investment
is
one
of
the
largest:
its
800
signatories
manage
more
than
US$22
trillion
in
capital
and
include
large
investment
funds
such
as
BlackRock
and
TIAA-‐CREF.
There
has
even
been
a
4. proliferation
of
indices
benchmarking
the
stocks
of
companies
seen
as
sustainability
leaders.
These
include
the
Dow
Jones
Global
Sustainability
50
Index.
In
addition,
sustainability
data
is
now
available
to
institutional
investors
through
commercial
information
services
such
as
Bloomberg
and
Thomson
Reuters,
and
to
individual
investors
through
websites
such
as
Fidelity.com.
Stakeholders
can
easily
obtain
a
company’s
2.
Why
report
on
sustainability
if
you
don’t
have
to?
Sustainability
information
and
compare
its
reports
with
those
of
its
competitors.
More
than
information
such
as
emissions
data,
energy
consumption,
human
rights
information,
corporate
policies
and
board
composition.
Thomson
Reuters
gives
more
than
400,000
subscribers
access
to
similar
information
at
the
touch
of
a
button.
Institutional
investors
and
other
users
are
reviewing
sustainability
data
over
time,
comparing
it
across
and
within
industry
sectors,
and
sometimes
ranking
disclosure
levels
and
reporting
quality.
Such
scrutiny
makes
it
important
that
companies
maintain
complete
and
accurate
data
on
their
sustainability
practices.
Research
also
indicates
that
equity
analysts
increasingly
consider
sustainability
practices
when
valuing
and
rating
public
companies.
In
mid-‐2010,
a
global
Ernst
&
Young
survey
of
300
executives
at
large
companies
showed
that
43%
believe
equity
analysts
consider
factors
related
to
climate
change
when
valuing
a
company.
More
recently,
a
study
by
Ioannis
Ioannou
of
the
London
Business
School
and
George
Serafeim
at
Harvard
showed
that
equity
analysts
have
begun
giving
higher
ratings
to
companies
with
exemplary
CSR
practices.
The
research,
published
in
August
2010,
surveyed
more
than
4,100
publicly
traded
companies
over
a
16-‐year
period.
It
found
that
since
1997,
analysts
have
viewed
CSR
strategies
as
creating
in
recent
years
they
have
issued
more
favorable
ratings
to
companies
that
have
sustainability
strategies
in
place.
Operational
improvements
reporting
helps
companies
identify
sustainability-‐
related
opportunities
for
revenue
growth
and
cost
containment.
Although
it
may
be
a
truism
to
observe
that
“what
gets
measured
gets
Sustainability
reporting
helps
companies
identify
opportunities
for
revenue
growth
and
cost
containment.
Download
our
current
thought
leadership
and
research
findings
at
ey.com/climatechange
managed,”
reporting
requires
measurement,
and
this
in
turn
helps
companies
manage
their
In
February
2010,
the
Securities
and
Exchange
Commission
(SEC)
published
interpretive
guidance
regarding
its
disclosure
requirements
related
to
climate
change
risk.
Issued
in
response
to
petitions
from
several
institutional
investors,
the
guidance
does
not
amend
any
existing
disclosure
requirements
or
create
any
new
ones;
however,
it
does
signal
that
companies
should
maintain
a
heightened
awareness
of
climate
change
risk
when
preparing
maintaining
such
awareness.
Regular
reporting
could
also
prevent
companies
from
running
afoul
of
stricter
“truth
in
on
companies
to
substantiate
claims
such
as
statements
that
products
are
“recyclable”
or
“carbon
neutral.”
Product
claims
made
in
a
5. sustainability
report
could
be
subject
to
this
new
guidance.
Reporting
on
“green
product
development”
gives
organizations
an
opportunity
to
document
the
basis
for
any
such
claims
they
make.
Reputation
managementDone
properly,
reporting
on
sustainability
helps
companies
establish
a
reputation
for
transparency
and
build
stakeholder
trust.
Research
conducted
by
the
Global
Reporting
Initiative
(see
next
section)
shows
that
82%
of
US
companies
and
66%
of
those
in
Europe
cite
By
reporting
on
sustainability,
organizations
can
show
stakeholders
that
they
have
been
heard.
Download
our
current
thought
leadership
and
research
findings
at
ey.com/climatechange
Although
no
universal
reporting
standards
exist
yet,
there
are
some
widely
used
voluntary
guidelines
that
prescribe
the
kind
of
information
companies
should
disclose.
Together,
these
widespread
use,
including
the
AA1000
Account
Ability
Principles
Standard
and
the
Global
Reporting
Initiative
(GRI)
Reporting
Framework.
The
GRI
guidelines
have
been
updated
twice
since
their
inception,
making
the
current
version
the
“third
generation”
or
G3.
Developed
in
consultation
with
private
industry,
it
is
currently
used
in
65
countries
and
comprises
a
set
of
core
guidelines
that
apply
to
all
organizations,
plus
supplemental
guidance
applicable
to
particular
industries.
GRI
also
has
issued
protocols
human
rights.1
GRI
suggests
some
guidelines
for
ensuring
that
reports
are
of
acceptable
quality.
They
should
be
timely,
for
example,
and
clearly
understandable
to
nonexperts.
They
should
be
balanced,
And
they
should
be
accurate,
meaning
that
certain
types
of
oversight
or
assurance
are
necessary.
1
Several
components
of
the
GRI
Guidelines
are
undergoing
revision,
including
community
impact,
human
rights,
gender
and
report
content
and
materiality.
A
90-‐
day
public
comment
period
ended
in
August
2010.
Version
G3.1
of
the
Guidelines
is
expected
in
early
2011.
3.
What
information
should
a
sustainability
report
contain?
11
Most
organizations
develop
key
performance
indicators
(KPIs)
on
which
to
report.
Some
set
targets
for
limiting
their
total
direct
and
indirect
greenhouse
gas
emissions
by
weight;
others
measure
the
percentage
of
recycled
materials
used
in
their
business,
or
the
size
and
biodiversity
value
of
the
water
bodies
affected
by
their
operations.
A
2010
report
by
Harvard
develop
KPIs
that
take
into
account
the
types
of
indicators
typically
associated
with
the
reporter’s
industry
peers.
Choosing
the
issues
and
indicators
to
focus
on,
and
determining
the
reporting
boundaries,
are
fundamental
to
the
preparation
and
quality
of
any
report.
To
make
those
choices,
an
with
its
activities.
Stakeholder
engagement
is
one
means
of
identifying
issues
that
are
material
to
society,
and
therefore
to
an
organization.
Leading
reporters
use
what
they
learn
from
stakeholder
engagement
to
formulate
strategies
and
operations
that
are
consistent
with
sustainable
development.
By
6. reporting
on
sustainability,
organizations
can
respond
to
stakeholder
concerns
and
expectations,
showing
stakeholders
that
they
have
been
heard.
GRI
suggests
that
organizations
use
four
main
principles
for
identifying
material
issues
to
disclose
in
their
reports
(See
box
to
the
right).
Most
organizations
develop
key
performance
indicators
(KPIs)
on
which
to
report.
Download
our
current
thought
leadership
and
research
findings
at
ey.com/climatechange
Deciding
what
to
disclose:
guidelines
from
GRI
Many
companies
follow
the
GRI
framework
when
deciding
what
to
include
in
their
sustainability
reports.
The
framework
starts
with
a
series
of
principles
that
organizations
can
use
to
judge
whether
a
particular
piece
of
information
merits
inclusion
in
their
sustainability
reports.
The
principles
are
materiality,
stakeholder
inclusiveness,
sustainability
context,
and
completeness.
Materiality
extend
to
factors
with
longer-‐term
implications.
Determining
what
is
material
requires
that
the
organization
assess
its
“overall
mission
and
competitive
strategy,
concerns
expressed
by
stakeholders,
broader
social
expectations,
and
the
Stakeholder
inclusiveness
—
Reports
should
respond
to
stakeholders’
“reasonable
expectations
and
interests.”
In
this
or
whose
actions
are
likely
to
affect
the
organization’s
ability
to
carry
out
its
business
strategy
and
achieve
its
goals.
Sustainability
context
—
The
purpose
of
a
sustainability
report
is
to
show
how
an
organization
is
helping
to
improve
(or
at
least
halt
the
deterioration
of)
environmental,
social
and
other
conditions
over
the
long
term.
Reporting
on
isolated
or
income
levels
and
the
capacity
of
social
safety
nets
to
absorb
those
in
poverty
or
those
living
close
to
the
poverty
line.”
performance
in
the
reporting
period.
Source:
GRI
Sustainability
Reporting
Guidelines,
Version
3.0
13
Companies
should
begin
moving
beyond
spreadsheet-‐based
processes
for
gathering
and
reporting
data.
Download
our
current
thought
leadership
and
research
findings
at
ey.com/climatechange
mechanisms
for
doing
so
accurately
and
completely.
This
can
be
a
challenge,
because
CSR
information
comes
from
a
variety
of
business
functions
and
geographic
locations
(see
graphic
on
page
17).middle
managers,
sustainability
reporting
is
a
mandate
that
needs
high-‐level
support.
A
corporate
governance
structure
with
clear
reporting
lines
helps
establish
the
requisite
backing
from
senior
leadership
and
provides
accountability
at
the
operational
level.
Some
organizations
link
sustainability
performance
to
executive
compensation,
a
step
likely
to
sharpen
organizational
focus
on
the
issue.
4.
What
governance,
systems
and
processes
are
needed
to
report
on
sustainability?
After
governance
mechanisms
are
in
place,
companies
must
consider
how
they
will
collect,
store
and
analyze
sustainability
information.
A
need
for
more
robust
7. systems
and
processes
will
become
increasingly
evident
as
reporting
requirements
and
regulations
evolve,
particularly
those
related
to
GHG
emissions.
The
main
principle
to
keep
in
mind
is
that
processes
grow
more
accurate
as
they
become
more
automated
because
automation
lowers
the
likelihood
of
manual
error.
To
establish
robust
systems
that
meet
their
emerging
needs,
companies
should
begin
moving
beyond
spreadsheet-‐based
processes
for
gathering
and
reporting
data.
Larger
companies
are
beginning
to
adopt
web-‐based
technologies,
which
can
streamline
reporting
and
lower
its
costs.
Sustainability
reporting
is
a
mandate
that
needs
high-‐level
support.
Download
our
current
thought
leadership
and
research
findings
at
ey.com/climatechange
Controls
needed
for
sustainability
accounting
reports,
which
are
likely
to
become
more
common
in
the
future.
should
evaluate
the
key
role
that
application
controls
can
play
in
sustainability
reporting.
Factors
to
consider
include:
Usability
and
functionality:
Does
the
application
function
as
designed?
Access
rights
and
controls:
Does
the
system
prevent
unauthorized
alteration
of
data
by
means
of
user
authentication
controls
and
access
control
mechanisms?
Sustainability
information
is
accurate,
valid,
complete
and
timely?
Does
the
system
to
prepare
reports
in
accordance
with
the
organization’s
sustainability
accounting
policies?
Organizational
needs?
Can
the
same
information
be
reported
in
different
ways
to
support
various
reporting
purposes?
Does
the
system
export
data
for
use
in
other
applications?
software
vendor?
What
is
the
expected
life
span
of
the
software?
At
this
stage
in
the
development
of
sustainability
reporting
software,
no
single
application
will
meet
all
needs
and
objectives.
Nevertheless,
by
considering
their
needs
and
the
various
software
options
available,
organizations
can
move
beyond
spreadsheet
reporting
to
automate
systems
and
processes
in
a
way
that
helps
reduce
error
and
makes
reporting
more
accurate.
Users
of
sustainability
information
will
come
to
expect
that
the
information
has
been
validated
by
a
reliable
third
party.
Download
our
current
thought
leadership
and
research
findings
at
ey.com/climatechange
North
America
currently
has
comparatively
few
requirements
for
third-‐party
assurance
of
sustainability
reports.
Companies
that
emit
a
certain
level
of
greenhouse
gases
are
subject
to
reporting
requirements,
as
are
those
in
mining
or
other
extractive
industries,
but
they
are
exceptions
to
the
rule.
As
sustainability
reporting
matures,
however,
stakeholder
expectations
are
likely
to
rise,
making
external
assurance
a
virtual
requirement.
Companies
now
obtaining
a
lower
level
of
assurance,
typically
described
as
“limited”
or
“review”
assurance,
will
come
under
pressure
to
move
toward
a
“reasonable”
or
“examination”
companies
using
its
guidelines
declare
a
reporting
level
of
A,B
or
C,
depending
on
how
the
GRI
indicators
are
applied,
then
allows
companies
to
apply
a
“plus”
(+)
at
each
level
if
they
media
read
them
to
assess
the
sustainability
performance
of
the
reporting
entities,
while
investment
fund.
As
this
trend
continues,
users
of
sustainability
information
will
come
to
expect
that
the
information
has
been
validated
by
a
reliable
third
party.
8. Companies
will
begin
seeking
third-‐party
assurance
of
their
reports
not
only
because
of
improving
transparency,
third-‐party
assurance
shows
that
the
organization
is
serious
about
addressing
the
issues
tied
to
its
social,
environmental
and
economic
performance.
It
helps
mitigate
the
reputational
risk
of
reporting,
especially
that
of
having
to
restate
performance
information
because
of
inaccurate
data.
Assurance
sends
a
message
that
the
report
is
relevant,
reliable
and
free
from
bias.
And
third-‐party
providers
can
sometimes
recommend
5.
Do
sustainability
reports
have
to
be
audited?
organization
overall.
In
addition,
some
executives
who
sign
the
reports
may
desire
third-‐party
assurance
to
protect
their
personal
reputations.
Because
rating
agencies
may
use
sustainability
related
information
to
assign
a
grade
to
the
company’s
debt,
accurate
sustainability
reporting
can
help
to
lower
a
company’s
cost
of
borrowing.
Third-‐party
assurance
makes
it
more
likely
that
ratings
are
based
on
accurate
information.
Having
reports
audited
also
helps
to
verify
data
used
to
set
reduction
goals.
If
a
company
sets
a
goal
but
does
not
reach
it,
this
can
be
viewed
as
a
failure.
Much
of
the
entity
audit
a
report
helps
organizations
assess
whether
their
performance
goals
are
being
measured
properly.
Companies
must
take
care
when
selecting
an
assurance
provider.
Global
companies,
or
those
with
a
combination
of
voluntary
and
mandatory
reporting
requirements,
will
need
a
provider
Assurance
sends
a
message
that
the
report
is
relevant,
reliable
and
free
from
bias.
Download
our
current
thought
leadership
and
research
findings
at
ey.com/climatechange
Standards
for
assurance
in
sustainability
reporting
There
are
two
primary
global
assurance
standards.
The
International
Standard
on
Assurance
Engagements
3000
(ISAE
3000)
is
the
benchmark
that
accountants
most
often
use
as
a
basis
for
assurance
of
sustainability
reports.
It
was
developed
by
the
International
Auditing
and
Assurance
Standards
Board,
whose
standards
exist
primarily
for
assurance
engagements.
The
other
global
standard,
AA1000AS
(2008),
was
designed
for
use
beyond
the
accounting
profession.
It
was
created
information,
addresses
management
and
reporting
systems
and
processes.
Using
both
ISAE
3000
and
AA1000AS
(2008)
American
Institute
of
CPAs’
AT101
and
the
Canadian
Institute
of
Chartered
Accountant
Handbook
Section
CICA
5025,
By
giving
stakeholders
something
to
measure,
companies
are
putting
Download
our
current
thought
leadership
and
research
findings
at
ey.com/climatechange
Although
the
rewards
of
reporting
on
sustainability
can
be
great,
there
are
challenges
as
well.
Data
consistency
poses
a
risk,
particularly
if
companies
report
through
multiple
channels
such
as
printed
reports,
websites,
and
supplier
sustainability
indices.
A
major
challenge
consists
of
ensuring
the
comparability
of
data
from
different
business
units
or
subsidiaries
and
across
reporting
formats.
A
multinational
corporation
with
operations
in
10
countries,
each
using
that
do
not
9. allow
for
direct
comparison.
Intercompany
comparability
is
another
issue.
Although
data
released
by
one
company
may
not
be
comparable
with
that
reported
by
others,
stakeholders
could
mistakenly
compare
dissimilar
data
and
draw
erroneous
conclusions.
Even
when
some
degree
of
comparability
is
achieved,
organizations
face
the
possibility
that
in
reporting
to
a
wide
range
of
stakeholders,
they
may
release
inconsistent
information
through
different
channels.
Many
companies
undertake
benchmarking
exercises
to
better
understand
the
reporting
practices
of
competitors,
compare
those
practices
with
their
own,
and
determine
how
stakeholders
might
perceive
any
discrepancies.
Sustainability
reporting
also
requires
that
companies
strike
the
right
balance
of
positive
and
negative
information.
Although
reporting
negative
results
could
cause
reputational
damage,
companies
are
expected
to
portray
their
sustainability
practices
“warts
and
all.”
If
reports
closer
inspection,
don’t
really
exist.
In
all
likelihood,
companies
that
conscientiously
apply
one
6.
What
are
the
challenges
and
risks
of
reporting?
of
the
various
sustainability
frameworks
probably
will
not
engage
in
green
washing,
simply
reports
mainly
as
a
public
relations
tool
are
unlikely
to
fool
anyone,
since
stakeholders
who
rely
on
sustainability
information
to
make
investment
decisions
are
sophisticated
enough
to
view
excessively
promotional
claims
with
skepticism.
The
very
process
of
reporting
can
create
continual
pressure
on
the
company
to
improve
its
may
expect
to
see
constant
improvement
from
one
reporting
period
to
another.
By
giving
Another
challenge:
keeping
reports
readable
and
concise.
Some
companies
place
their
sustainability
data
in
a
table
or
chart
displaying
KPIs
in
an
easy-‐to-‐read
matrix
that
tracks
year-‐on-‐year
progress
toward
the
organization’s
stated
goals.
This
format
is
recommended
by
groups
such
as
GRI.
The
very
process
of
reporting
can
create
pressure
on
the
company
continually
to
improve
its
performance.
Download
our
current
thought
leadership
and
research
findings
at
ey.com/climatechange
25
Smart
companies
use
sustainability
reports
to
help
reduce
resistance,
litigation
and
create
a
better
public
image.
Download
our
current
thought
leadership
and
research
findings
at
ey.com/climatechange
Sustainability
reports
can
be
a
valuable
tool
for
communicating
with
both
internal
and
external
audiences.
For
starters,
companies
can
use
them
to
raise
awareness
inside
the
organization,
making
them
mandatory
reading
for
all
employees.
Reports
also
provide
an
excellent
means
of
reaching
a
wide
range
of
external
stakeholders
such
as
customers,
suppliers,
investors,
Beyond
their
communications
value,
reports
can
help
organizations
accomplish
goals
related
them
to
do.
Setting
targets
in
the
form
of
KPIs,
and
communicating
those
targets
externally,
forces
the
organization
to
focus
on
meeting
its
publicly
stated
objectives.
In
this
way,
reporting
becomes
an
accountability
tool.
In
addition,
companies
in
certain
industries
need
to
maintain
their
social
license
to
operate.
10. 7.
How
can
companies
get
the
most
value
out
of
sustainability
reporting?
Other
expensive
distractions
quickly
raise
their
cost
of
doing
business.
Smart
companies
use
sustainability
reports
to
ensure
less
resistance,
less
litigation
and
a
better
public
image,
all
of
Finally,
as
government
entities
and
private-‐sector
companies
develop
supplier
sustainability
new
information
when
a
potential
customer
requests
it
as
part
of
the
supplier
vetting
process.
Next
stepsWhere
sustainability
and
the
“triple
bottom
line”
are
concerned,
the
bar
is
rising.
To
meet
it,
companies
must
begin
moving
away
from
reporting
designed
mainly
to
generate
positive
publicity,
and
toward
more
rigorous
and
externally
validated
communications
that
address
real
business
issues.
Such
a
shift
will
require
that
management
take
a
broader
interest
in
the
thought-‐provoking
perspectives
on
capturing
opportunities
and
reducing
sustainability-‐related
risk
at
ey.com/climatechange.
Reports
can
help
organizations
cut
costs,
business
imperatives.
Download
our
current
thought
leadership
and
research
findings
at
ey.com/climatechange
A
checklist
of
next
steps.
If
your
company
does
not
report
on
sustainability
issues,
or
releases
only
a
brief
summary
of
its
environmental
impacts,
here
are
some
questions
to
consider:
What
feedback
are
we
getting
from
our
stakeholders?
Is
there
pressure
from
our
stakeholders
to
report?
How
are
we
perceived
externally?
Do
we
have
a
good
understanding
of
the
risks
associated
with
sustainability?
What
are
our
peers
and
competitors
doing?
If
your
company
currently
issues
a
sustainability
report,
and
wants
to
take
its
game
to
the
next
level,
management
should
be
asking
the
following
questions:
Are
we
engaging
and
responding
to
our
stakeholders?
Do
we
want
to
be
a
leader
in
this
area?
What
level
of
assurance
do
we
currently
obtain?
Do
we
want
a
more
rigorous
process
to
ensure
that
our
reporting
is
credible?
REPRINT
FROM
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&
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