jacqueline kuehnel

Alberta Sustainable Tourism Forum

Thursday, December 9, 2010 Morely, Alberta

Communicating your Sustainable PracticesJacqueline Kuehnel

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Communicating Sustainability Through Reporting Key Objectives

• To communicate sustainability internally and externally using reporting‐like rigor

• To identify what to include in a report, ways to structure the report, how to

address

diverse stakeholder groups and improve the reporting process overall

• Learn how to create a report that is both a communications vehicle and a management

tool

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Why Communicate Sustainability ?

• Stakeholder expectations• You can’t manage what you don’t measure• More companies reporting –

peer pressure• Increased reporting pressures and requests‐

rating groups, shareholder

resolutions

• A tool to drive and manage changeBenefits

Raise staff awareness

Transparency to stakeholders

Attract investment

Enhance reputation

Risk awareness

Act of producing report requires commitment and systematic approach

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Internal Value

Attracting/retaining

employees and motivating

them

Strengthening data collection

and management

Improving performance

efficiency and effectiveness

Providing broader

performance information to

senior management for

stewardship (managing risks),

and to the Board for

oversight and strategy

4Alberta Sustainable Tourism Forum December 9, 2010

External Value

– Contributing to community

or national “license to

operate”

– Enhancing reputation

– Facilitating regulatory

approvals

Strengthening market access and share


Report Structure

• By stakeholders• By corporate principles

or commitments

• By business line or operational sites

• By key issues (e.g. Climate Change)

Alberta Sustainable Tourism Forum December 9, 2010

A Stakeholder Approach

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Shareholders

Insurers

Strike, sabotage

Shutdown, delay

Company

Customers

Media

NGOs

Government

Financiers

Export market Regulators

CommunityEmployees

Loss of operating license

Disinvestment

Campaigns

Negative publicityContract loss, boycott

Loss of cover

Increased cost

Market loss


Foundations of Good Reporting Stakeholder Engagement

What do they want to know?Indicators need to be relevant to the company, its business and stakeholders: • Employees:

-

stable employer, respected corporate citizen, info on levels of

remuneration, nature and extent of employment opportunities

• Customers -

values, attitudes, societal risks linked to activities• Suppliers

-

what demands they will face through CSR commitment• Government

-

compliance • NGOs

-

critical eye, often the target of reports• Investors

-

risks and opportunities• Communities

-

local risks and opportunities, donations, development


Foundations of Good Reporting Stakeholder Engagement

To whom do we report?• Direct and indirect stakeholders• Determine level of interest and level of importance• High level of influence and interest should be main target• What do you want to gain from communicating with them and what

do they want from you?

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Leve

l of i

nflu

ence

Level of interest

Keep satisfied

Respond to requests

Focus efforts

Keep informed


Approaches to Reporting

• “Me too”Reactive

What are others in our sector doing?

Report card

Checkmark approach• “Classical”

Goal is to influence perceptions

of the report’s readers

May affect business strategy and decisions

Public relations/communications focus• “Transformational”

Proactive

Process of reporting to drive change in the company, industry

Link to business goals and strategy

Integrated management and reporting approach

CSR is a journey, report is a tool and one result, not

the end result

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REACTIVE

PROACTIVE

Five Reporting Steps

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Foundations of Good Reporting Objectives –

Internal Review

Few companies start out with an integrated approach:

Step 1: Define reporting objectives:• Why are we reporting?

Step 2: Take stock of internal issues:

What is current CSR knowledge and practice? How willing is the company to embrace

transparency? What is the attitude towards stakeholder engagement? What are the

company’s short and long term business objectives? What are the pressure

points?

• What are we reporting on already? What are our reporting demands?

• How do these measures tie into our business objectives? Our existing business tools? To our

stakeholder concerns?—management system approach

• Do we want to be a leader? or fast follower?‐

assess what others are doing

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Foundations of Good Reporting Internal Readiness, Cost, Data, Indicators

Step 3: Prepare & be aware

• Start with building commitment from the inside out‐

employee engagement is

the key to CSR (CSR committee –

include naysayers and the legal department)

• Engage stakeholders (stakeholder mapping)

• Do your due diligence

• Be aware of:

Cost vs. benefit

Long lead time necessary for new measures

Transparency vs. legal complianceStep 4: Collect data & develop indicators• Choose a framework & management system• Define boundaries – What is our sphere of influence?• Assign accountability• Focus on indicators that are most relevant to the business and to stakeholders

• Set goals & targets13Alberta Sustainable Tourism Forum December 9, 2010

Foundations for Good Reporting Format, Disseminate

Step 5: Decide on report format and create report• Find out from stakeholders how they want to get the

information• Consider multiple vehicles

– Print report– Web-based– Summary brochures– CD– Newsletters– Blogs

• Find a good writer with experience in the field (1 day

per page)


Issues‐Based

Reporting

• Materiality

check

• Identify issues:

what is the range of your company’s sustainability issues? From whose

perspective?

• Prioritize issues: what issues are most important? In what way and to whom?

• Review: internal and external validation



Source: Symantec Materiality Matrix

Materiality for TUI Travel Plc.

• Aviation and climate change

• Protecting destinations from the impact of climate change

• Protecting destinations from the impact of tourism

• Shifting demographics and consumer trends

Source: sd2008tuitravelplc.com/tui/sd


Codes, Guidelines & Frameworks

More than 350 global codes and standards documents for all

businesses sectors

• These codes and standards can be categorized into six types: – Voluntary and aspirational codes/guidelines: UN Global Compact,

UNWTO Global Sustainability Tourism Criteria, Green Tourism Business Scheme

– General standards:

Principles for Global Corporate Responsibility –

Benchmarks, CBSR GoodCompany Guidelines

– Government sponsored codes & norms:

OECD Guidelines and the ILO Principles

– Legal frameworks:

Sarbanes-Oxley, OFR– Management systems:

ISO 14001, ISO 26000– Reporting standards: Global Reporting Initiative (GRI)-

Tour Operator Supplement Developed with TOI, Accountability AA1000 Assurance

– Carbon Disclosure Project (CDP)


The Global Reporting Initiative (GRI)

What is the GRI?• World‐wide, multi‐

stakeholder network• Default standard• Over 1,100 GRI reporters and

counting in 60 countriesWhy use the GRI?• Comprehensive checklist• Comparability (interest from

investors)• Auditability • Supply chain demands


The Six Sins Of Greenwashing

Green∙wash (grēn'wŏsh', ‐wôsh') –

verb: the act of misleading consumers

regarding the environmental practices of a company or the

environmental benefits of a product or service.

1.

The hidden trade‐off

2.

No proof

3.

Vagueness

4.

Irrelevance

5.

Lesser of two evils

6.

Fibbing

7.

Worshiping false labels

©2007. TerraChoice Environmental Marketing Inc. http://sinsofgreenwashing.org/findings/the‐seven‐sins/


http://sinsofgreenwashing.org/findings/the-seven-sins/

Good Green Marketing 101

• Be self‐honest about the whole, lifecycle‐based, environmental

impacts of your product. Acknowledge them and address them one step at a time.

• Make, claim, and ask your customers to support stepwise

progress (they will). But don’t overstate your progress; there’s no such thing(yet) as a truly “green”

or “environmentally‐friendly”

product.

• Ask your customers to join you on a journey to evermore sustainable products. This is the most honest message,

(and it makes for great and long‐lasting customer relationships).

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Source: TerraChoice Environmental Marketing Inc.


Report Content ‐

Key Elements

Organizational profile Report scope Performance highlights Senior Management letterManagement systems Stakeholder engagement

process Performance

(environmental, social,

economic, governance)

Strategic context Industry context Graphs & charts Year‐over‐year data Forward looking

information Breadth of CSR issues Links Feedback mechanisms


Sustainability Communications Do’s

• Give a clear picture

of corporate values, principles, governance and

management practices as well as performance.• Strike the balance

between what stakeholders find interesting to

know, what they have a right to know, and what is practical and

valuable for business to manage and report.• Focus on quality not quantity and not attempt to be everything to

everyone.• Explain to readers what they should expect.• Provide relevant, reliable

and comparable information.

• Provide context

– business, industry & sustainability.

• Focus on materiality, strategies, risks and opportunities.• Provide some form of assurance.


Sustainability Communications Don’ts

• Don’t strive to be everything to everyone• Don’t ‘carpet bomb’

–

thin is in

• Don’t be afraid to make and admit mistakes – nobody’s perfect but own up to shortfalls and discuss remediation

• Don’t produce “smiling, happy people”

reports – balance the good, the bad & the ugly!

• Don’t forget to market the report


Launching Your Sustainability Communication Plan

• Allocate a budget (from marketing ?)

• Market internally & externally (podcasts, treasure hunts, newsletter, internet & intranet)

• Keep the report consistent with other company marketing materials (logo, colours, look & feel)

• Be creative! See examples from other sectors such as Starbucks, Timberland


An Example: ACCOR’s EARTH GUESTS

At stake� Thousands of companies implement their sustainable

development policy in more and more comprehensive way that also includes their travel policy.Accor’s action� In order to spread sustainable development principles among our

customers (especially the business ones) and to meet the

growing demand, Accor is working on its travels offer.Where we are� Earth Guest Discovery program (responsible incentive), in process in 10 hotels� Some pilot hotels on carbon report and offset displayOur achievement� “Earth Guest discovery”, Accor’s responsible incentive travel offer:‐

Activity that allows the discovery of local cultures and economies, of heritage beauty and surrounding nature‐

2008: 8 hotels integrate the program� Carbon report and offset‐

Novotel London West (UK) and Mercure hotels in Australia offer

GHG emission offset through the financing of projects that

promote renewable energy production and reforestation

program

Source: http://www.oecd.org/dataoecd/39/53/45557603.pdf


http://www.oecd.org/dataoecd/39/53/45557603.pdf

The Future of CSR Reporting

Today• Annual• Reporting• Company• Soft CSR• Encyclopedias• Operational performance• OECD• Risk

Tomorrow• 24/7/365• Communication & Management• Value chain• Hard (boards, investors)• Prospectus• Products & markets• BRICs – Emerging economies • Value & opportunity


Resources

• Presentation developed from a Canadian Business for Social

Responsibility Workshop –

2008

• “Gaining Momentum: Corporate Sustainability Reporting in

Canada”

–

Stratos

• “Indicators that Count”

–

BITC

• “The Materiality Report”

‐

AccountAbility

• “Sustainable Development Reporting: Striking the Balance”

‐

WBCSD • “Reporting in Context 2006”

‐

Context

• “Risk & Opportunity – Best Practice in Non‐Financial

Reporting”

–

Sustainability

• “Reporting the Business Implications of Climate Change in

Sustainability Reports”

‐

KPMG

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Useful Websites

Seven Sins of Greenwashing ‐

Retrieved:

http://sinsofgreenwashing.org/findings/greenwashing‐report‐2010/

Communication and Sustainable Tourism –

Retrieved:

http://www.usaid.gov/our_work/agriculture/landmanagement/pubs/commun_sust_t

ourism.pdf

Government of Canada –

Sustainability Reporting Kit

http://www.sustainabilityreporting.ca/content/?module=1&section=1&chapter=1

&page=1

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http://sinsofgreenwashing.org/findings/greenwashing-report-2010/

http://sinsofgreenwashing.org/findings/greenwashing-report-2010/

http://www.usaid.gov/our_work/agriculture/landmanagement/pubs/commun_sust_tourism.pdf



http://www.sustainabilityreporting.ca/content/?module=1&section=1&chapter=1&page=1



Thank You!

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Reporting Challenges

Developing field, moving target

When do you start?

Showing link with strategic direction

Much talk on good reporting ‐

actual performance can be

difficult to judge

Materiality‐

to the business and stakeholders

Many companies look at reporting as an obligation

Who reads the report?

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Reporting

Challenges

• Addressing multiple stakeholders• Timing & resource allocation• Credibility • Integration of CSR reporting with financial reporting• Standardization

vs. individuation

• What information to include – trade‐offs between completeness & focus on issues of greatest

importance• Report content & structure

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AccountAbility’s AA1000 Assurance Standard

• Emerging reporting‐ related standard is

AccountAbility’s AA1000 Assurance Standard. This is a process standard for

social and ethical accounting, auditing and

reporting, that focuses on stakeholder involvement

in the reporting process

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• Focus: reports will focus away from ‘outputs’

(e.g. How much

money did we contribute to community causes?) and will

focus on ‘impacts’

E.g. What was the impact on society of that

donation. In other words, the degree to which a company’s

CSR performance has actually improved conditions in society

or the environment and your business.• Usage: with a focus on impacts, the report will be used as a

management tool

as opposed to a report card.

• Indicators: will move from ‘lagging’‐

what happened in the

past, to ‘leading’‐

do we have the ability to improve our

impacts, what programs/processes are we working on to

improve our impacts?

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• Audience: the reports are changing from single all inclusive

reports to smaller ones tailored to specific

audiences. E.g. one

for employees, one for customers. The reports will be

distributed in a means that best reaches the audiences. E.g.

employees on the intranet, customers at point of sale.• Reporting on influence: value chain, industry, public policy• Issues based reporting:

e.g. climate change, sourcing

• Integrating

the report with other corporate communications

(look and style)

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jacqueline kuehnel

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