Sustainability reporting

John Maddocks - CIPFA

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Sustainability accounting and reporting can …

… ‘enable the systematic identification and interlinking of the economic, social and environmental costs and benefits of organisational strategies and actions’

Source: Accounting for sustainability: Practical insights (2010)

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Voluntary reporting frameworks

Prince’s ‘Accounting for sustainability project (A4S) ‘Connected Reporting Framework’ (CRF) Embed sustainability into decision making

Global Reporting Initiative (GRI) G3 reporting framework launched 2006

International Integrated Reporting Committee launched in 2010, includes A4S and GRI Aim - a globally accepted framework for

integrated reporting

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FReM Sustainability reporting guidance

2010/11 dry run

2011/12 revised

Greening governmentcommitments

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Greening government commitments – 2015 targets

Reduce greenhouse gas emissions by 25% from a 09/10 baseline

Reduce waste by 25% from a 2009/10 baseline Reduce water consumption from a 2009/10

baseline Ensure government buys more sustainable and

efficient products and engages with its suppliers to understand and reduce the impacts of its supply chain

Source http://sd.defra.gov.uk

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FReM guidanceFocus on environment

Small number of key environmental indicators:

1. Greenhouse gas emissions2. Waste3. Finite resources: water

Linked to financial information

Short narrative - performance and targets

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Two new areas to report on

1. Biodiversity action plans

2. Sustainable procurement

No financial information required on these two aspects

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Greenhouse gas emissions Greenhouse gas protocol & Defra guidance

GHG emissions to be reported include:

Direct emissions from sources owned and controlled by the organisation (e.g. gas boilers)

Indirect emissions from energy supplied by third parties (e.g. electricity)

Emissions arising from official business travel directly paid for by the organisation

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Waste

Minimum reporting requirements:

Absolute values for waste produced by the organisation (administrative and operational, not including construction)

Categories:• Total waste• Landfill• Recycled• Incinerated/energy from waste

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Water

Direct water use

Broken down by source:

Water from 3rd party supplier Abstracted water Collected water

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Report format

Report format is not prescribed: ‘… develop format to fit their business …’

Minimum should include: Overall strategy Three indicators – GHG, waste, water Two overviews – biodiversity,

procurement Brief commentaries on reported

performance and future plans supported by notes

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GREENHOUSE GAS EMISSIONS2008-09

2009-10

2010-11

Graphical Analysis

Non-Financial Indicators (tCO2e)

Total Gross Emissions for Scopes 1 & 2. 650 600 550

Total Net Emissions for Scopes 1 & 2. 520 450 320

Gross emissions attributable to Scope 3 official business travel 250 230 198

Financial Indicators (£k)

CRC Gross Expenditure (2010 onwards) 218 237 400Expenditure on accredited offsets (eg GCOF). - - -

Expenditure on official business travel. 250 190 165

TARGETS AND COMMENTARY

Dept Yellow has a target to reduce its carbon emissions by 30% (to xxx tonnes) by March 2012 from our 2006-2007 levels which it is on track to achieve. A new target is currently being considered for the period beyond 2012 and this will be disclosed in the 2012-13 business plan due to be published in February 2012. [Central Government Departments could include performance against SoGE targets, and local Government could include performance against National Indictors].

DIRECT IMPACTS COMMENTARY

The main direct impacts for Department Yellow are in its electricity and fuel consumption. Strategies have been prepared to reduce these direct impacts through efficiency programmes.

OVERVIEW OF INDIRECT IMPACTS

Dept Yellow is able to significantly influence the emissions of its supply chain through procurement specifications. An action plan is now in place to communicate to suppliers about future contracts and expectations with regards to emissions reductions. We also actively discuss our emissions policy with the public to encourage them to consider their own personal impact when making use of our services.

Greenhouse Gas Emissions

0

100

200

300

400

500

600

700

800

900

2008-09 2009-10 2010-11Financial Year

tonn

es/C

O2e

Other

Official Travel - Air

Official Travel - Rail

Official Travel - Road

Gas Consumption

Electricity Consumption

Example of part of report

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CIPFA ‘Sustainability reporting’

Builds on A4S approach and HMT guidance Considers inclusion of additional indicators for:

social economic governance

Focus where greatest value added Small number of key indicators Forward looking Embedding

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HR example

Our people 2009 2010 2011

Staff (FTE) at year end nnn nnn nnn

Staff expenditure £££ £££ £££

Absenteeism (% of total work hours) % % %

Annual per capita expenditure on absenteeism £££ £££ £££

Staff turnover % % %

Recruitment and induction expenditure for year £££ £££ £££

Staff development (% undertaking certified learning)

% % %

Annual per capita expenditure on certified learning

£££ £££ £££

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First published 2007, reported on:

General sustainability Waste Transport Resource use Procurement Buildings Workplaces Climate change People

Sustainability ReportWest Sussex County Council

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West Sussex – web - four examples

Objective Annual metric Target Results

Increase the number of staff travelling to work by sustainable modes of transport

Percentage of staff that use sustainable travel options to get to work

55% Achieved

Reduce the amount of carbon dioxide from County Council buildings

Reduction in carbon dioxide emissions

13,880 tonnes

Slight slippage

Reduce the amount of water consumed by County Council buildings

Reduction in water used

10% On target

Maintain an acceptable rate of employee turnover

Total rate of employee turnover

8-12% On target

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Making it happen

Collaboration across teams Identify scope of report Material and strategically important metrics Identify existing data and gaps Implement systems and processes to extract data Address issues of comparability, completeness

and quality Adopt a clear reporting style, comparing

performance over a number of years Link to decision making