SUSTAINABILITY REPORTING.pptx

TOPICS TO BE COVERED
• Corporate Sustainability Reporting Standards
• Public disclosure of Corporate information
• Sustainability reporting by independent organizations:
1. Global reporting Initiative (GRI)
2. Sustainability Accounting Accounting Standards Boards (SASB)
3. Task force on Climate- Related Financial Disclosures

CORPORATE SUSTAINABILITY REPORTING STANDARDS
The world is full of different sustainability reporting standards, and it is easy to get mired in
the maze of acronyms that surround the term corporate sustainability. A quick google search
and you’re looking at:
•ESG (Environmental, Social and Governance)
•CSR (Corporate Social Responsibility)
•SDGs (Sustainable Development Goals) etc.

•ESG (Environmental, Social and Governance)
ESG stands for Environmental, Social, and Governance. Investors are increasingly applying
these non-financial factors as part of their analysis process to identify material risks and
growth opportunities.
The three pillars of ESG are:
•Environmental – this has to do with an organisation's impact on the planet.
•Social – this has to do with the impact an organisation has on people, including staff and
customers and the community.
•Governance – this has to do with how an organisation is governed. Is it governed
transparently?

ESG investing
ESG investing is a form of sustainable investing that considers environmental, social and
governance factors to judge an investment’s financial returns and its overall impact. An
investment’s ESG score measures the sustainability of an investment in those specific
categories.
https://youtu.be/ff5xTYpzOXs

CSR includes bringing value to the community and generating a positive impact.
Corporate Social Responsibility (CSR) is the idea that a company should play a positive role
in the community and consider the environmental and social impact of business decisions.
The four main types of corporate social responsibility are environmental responsibility,
ethical responsibility, philanthropic responsibility, and economic responsibility.

4 types of corporate responsibility your business can practice
In recognition of how important socially responsible efforts are to their customers, employees
and stakeholders, many companies focus on four broad CSR categories.
1.Environmental efforts: One primary focus of CSR is the environment. Businesses have
large carbon footprints, regardless of size. Any steps a company can take to reduce its
footprint is considered good for both the company and society.
2.Philanthropy: Businesses can practice social responsibility by donating money, products
or services to social causes and nonprofits. Larger companies tend to have plentiful
resources that can benefit charities and local community programs; however, even as a
small business, your efforts can make a difference. If you have a specific charity or program
in mind, reach out to the organization. Ask them about their specific needs and whether a
donation of money, time or your company’s products would best help them.

3. Ethical labor practices: Companies can demonstrate CSR by treating employees fairly
and ethically. This is especially true of businesses that operate in international locations with
labor laws that differ from those in the U. S.
4. Volunteering: Participating in local causes or volunteering your time (and your staff’s
time) to community events says a lot about your company’s sincerity. When your company
does good deeds without expecting anything in return, you express concern (and support)
for specific issues and social causes.

What to avoid when creating a socially responsible business model
Becoming a socially responsible business can be simple, but there are a few caveats.
1. Don’t choose unrelated initiatives.
Avoid participating in charitable efforts that are not related to your core business focus or that violate
your company’s ethical standards in any way. Instead of blindly sending money to a completely
unrelated organization, find a nonprofit that your company believes in or invest in a project in your
community.
2. Don’t use CSR as a marketing scheme.
Don’t use CSR opportunities solely for marketing purposes. Schmidt said running a corporate
responsibility campaign as a quick marketing scheme can backfire if your business doesn’t follow
through. Instead of trying a one-time stunt, adopt socially responsible business practices over time.
Schmidt said employees and consumers react positively to companies that embrace long-term
social responsibility.
3. Don’t wait for the industry to catch up.
If you are considering sustainable activities that aren’t legally required yet, don’t wait. By adopting

Examples of CSR companies
If you’re looking for CSR inspiration for your business, here are six companies practicing corporate
social responsibility on a large scale.
•LEGO: The toy company has invested millions of dollars into addressing climate change and
reducing waste. LEGO’s environmentally conscious efforts include reduced packaging, sustainable
materials, and investments in alternative energy.
•TOMS: TOMS donates one-third of its net profits to charities that support physical and mental
health as well as educational opportunities. During the pandemic, the brand directed all charitable
donations to the TOMS COVID-19 Global Giving Fund.
•Johnson & Johnson: The brand Johnson & Johnson focuses on reducing its environmental
impact by investing in alternative energy sources. Globally, Johnson & Johnson also works to
provide clean, safe water to communities.

Examples of CSR companies
•Starbucks: The global coffee chain has implemented a socially responsible hiring process to
diversify its workforce. Its efforts are focused on hiring more veterans, young people looking to start
their careers, and refugees.
•Google: Google has demonstrated its commitment to the environment by investing in renewable
energy sources and sustainable offices. CEO Sundar Pichai is also known to take stands on certain
social issues.
•Pfizer: The pharmaceutical company’s focus on corporate citizenship is reflected in its healthcare
initiatives, which include spreading awareness about non-infectious diseases and providing
accessible health services to women and children in need.
https://www.youtube.com/watch?v=Zc102xiah1M https://www.youtube.com/watch?v=l9IyDvkxADU&list=RDLVZc
102xiah1M&index=2

SDG AGENDA 2030
https://sdgs.un.org/2030agenda

https://www.youtube.com/watch?v=M-iJM02m_Hg
https://www.youtube.com/watch?v=qfOgdj4Okdw
https://www.youtube.com/watch?v=xubK4T9Nc8A
https://www.youtube.com/watch?v=wXASRXbjR08
https://www.youtube.com/watch?v=HW76iOQ7qVQ
https://www.youtube.com/watch?v=qAIolKgDPrA
https://www.youtube.com/watch?v=o08ykAqLOxk

•ESG vs CSR vs SDGs.

https://youtu.be/0Str8LGguFQ

CORPORATE SUSTAINABILITY AND ESG
It helps to think of corporate sustainability as an umbrella term.
Put simply, it means an overall approach to managing organizations that prioritize environmental and
social value creation alongside the traditional goals of profitability and growth.
ESG (Environmental, Social, and Governance) are the three broad categories within which corporate
sustainability is measured.
Shaping your ESG & Sustainability Reporting Journey:
https://youtu.be/D1cI5KFpXRs

Environmental
The impact an organization’s
operations have on the
environment and the steps
companies take to reduce it. The
impact here includes everything
from greenhouse gas emissions,
waste management, energy
usage, etc.

Social
How an organization manages its relationships with the people who work for and with it, as well as
the local communities within which it operates.
Governance
The internal governance of the organization. It’s compliance with regulations, internal controls and
checks, decision-making processes, and protection of stakeholder rights.
Whichever reporting standard you follow for sustainability reporting it will be broadly broken down
along the above-mentioned categories.

PUBLIC DISCLOSURE OF CORPORATE INFORMATION
Information about federal corporations is public information. This includes a corporation’s registered
office address, and the names and addresses of its directors.
Why corporate information is public information
The corporate laws that govern federal corporations require the public disclosure of this information.
This applies even after a corporation has been dissolved, amalgamated or discontinued. Corporate
information is made public to help people, like investors, financial institutions and other stakeholders, make
timely and informed decisions about Canadian corporations.
Some public information on a corporation, such as the registered office address, the names and addresses
of directors and its governing legislation, is published on the Corporations Canada’s online database.

PUBLIC DISCLOSURE OF CORPORATE INFORMATION
Directors’ information is corporate information
Information about directors is corporate information, and as such, is required to be made public.
It is important that it be made public because this disclosure lets people know who is responsible for the
corporation.
Those who may want to access public corporate information include shareholders, investors or legal
counsel.
While a person’s home address is usually considered to be personal information, the Privacy Act allows for
this information to be made available to the public because corporate laws require its disclosure.

The address directors must provide can either be
a residential address
or
an address for service that is not their residential address. An address for service is an address where legal
documents must be accepted by the director or someone on the director’s behalf.
A director’s address cannot be a post office box.

Corporate information regarding directors must be updated within 15 days of the change being made.
This can be done by an individual who is authorized by the directors to do so.
It is free and easy through the Online Filing Centre (a corporation key is required).
Anyone who is not authorized to update this information can either contact the corporation or
contact Corporations Canada.
While corporate information must be made public, other types of information collected by Corporations
Canada are managed according to governmental legislation and policies.

Identity of directors and officers is publicly disclosed; identity of shareholders of private, non-listed
companies is not publicly disclosed.
However, this may be obtained on payment of certain nominal fees on the online portal of the
Ministry of Corporate Affairs.

SUSTAINABILITY RATING
Although remarkable it’s not just about the rising rates of sustainability reporting.
It is also about who is doing it. More and more small to medium-sized companies are now voluntarily
incorporating sustainability within their organizations.
They are using sustainable reporting as a marketing tool to showcase their long-term strategic
commitment to it and create value around it.
At the same time, more and more people are looking at the ESG performance of companies before
buying their products or working with/for them as suppliers/freelancers or as full-time employees.

GRI (Global Reporting Initiative): GRI standards remain universally accepted and essentially form the
bedrock of corporate sustainability reporting worldwide. The pioneers in sustainability reporting, GRI
standards, to some degree, permeate through the reporting requirement directives of most countries.
Disclosures are made under social, environmental and economic categories, and companies, depending
on their disclosure requirements, can choose whether they want to use the core or comprehensive
standards. As of 2020, 73 percent of the world’s largest 250 companies use GRI standards for
sustainability reporting.
https://www.youtube.com/watch?v=ePeYRg8x-4w
IIRF (International Integrated Reporting Framework): Mainly targeting investors this framework is used
to show how a company creates value, its stakeholder relationships, it’s ethics and culture.
SOME KEY SUSTAINABILITY REPORTING STANDARDS
FOR YOUR CONSIDERATION:
Standards for Comprehensive Sustainability Reporting

ISO 26000: Aimed at all types of organizations, this standard provides guidelines pertaining to principles
and practices concerning social responsibility. Being primarily a guidance rather than requirements
based standard, ISO 26000 is not meant for certification or regulatory use.
SASB (Sustainability Accounting Standards Board): An independent U.S. based organization, the SASB
provides exhaustive industry-based standards. These standards are based on recognition and disclosure
of environmental, social and governance impacts of companies.
https://www.youtube.com/watch?v=wF59lU2RvDU
Task Force on Climate- Related Financial Disclosures: The Taskforce on Nature-related Financial
Disclosures (TNFD) is a new global initiative which aims to give financial institutions and companies a
complete picture of their environmental risks.
https://www.youtube.com/watch?v=roX4F4XVd_o
https://www.youtube.com/watch?v=GIcdttw92iI
SOME KEY SUSTAINABILITY REPORTING STANDARDS
FOR YOUR CONSIDERATION:
Standards for Comprehensive Sustainability Reporting

A company, depending on its needs, can choose which one to follow, or simultaneously what
combination of frameworks to base its report upon.
However, a few factors determine which framework you choose:
• If the report is mandated by government regulation you want to check which frameworks the
regulation accepts and/or if it has a particular submission format of its own.
• If you belong to a particular industry segment where one framework is more favored for disclosures
over others. For e.g., GRESB (Global Real Estate Sustainability Benchmark) for the real estate sector.
• What disclosures the standards are used for, for e.g., GHG Protocol for greenhouse gas emissions.
WHICH SUSTAINABILITY REPORTING STANDARD TO CHOOSE?

Alongside the above mentioned more widely used standards, there are various others such as:
International Standards of Accounting and Reporting (ISAR)
British Standard on Sustainability Management (BS 8900)
European Union NonFinancial Reporting Directive (NFRD)
The United Nations Global Compact (UNGC)
OECD Guidelines for Multinational Enterprises
ILO Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy
OTHER SUSTAINABILITY REPORTING STANDARDS

SUSTAINABILITY REPORTING.pptx

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