Sustainability Reporting Trends

Sustainability Reporting y p gTrendsOctober 2011

Mike WallaceDirector, Focal Point USA

Venue, Date

Global Reporting Initiativewallace@globalreporting.org+1 212 339 0356+1 212 339 0356

Range of Terminologyg gy• CSR - Corporate Social Responsibility• CC - Corporate Citizenshipp p• SD - Sustainable Development• ES - Environmental Sustainability• BE - Business Ethics • CE - Corporate Ethics

CG C t G• CG - Corporate Governance• ESG - Environmental, Social & Governance• IR Integrated reporting• IR - Integrated reporting

What is your “Footprint”?What is your Footprint ?

Increasing Stakeholders and Demand

Modern DDue

Diligence

GRI’s Vision & Mission

Vision A sustainable global economy where organizationsA sustainable global economy where organizations manage their economic, environmental, social and governance performance and impacts responsibly g p p p yand report transparently.

Mi iMissionTo make sustainability reporting standard practice by providing guidance and support to organizationsproviding guidance and support to organizations.

The GRI GuidelinesEnvironmental• EN 3 - Direct energy consumption by primary

energy sourceLaborLabor• LA 7 - Rates of injury, occupational diseases, lost

days and absenteeism, and number of work related fatalities by region.

Human Rights• HR 4 - Total number of incidents of discrimination

and actions takenProduct ResponsibilityProduct Responsibility• PR 6 - Programs for adherence to laws, standards,

and voluntary codes related to marketing communications, including advertising, promotion, ad sponsorshipad sponsorship.

Economic• EC 4 – Significant financial assistance received

from government.

Wh th R t ?Who are these Reporters?

GRI Reporting Trends1818

1600

1800

2000Year # of

reportsGrowth rate

1999 11

US Reporters in 1999•Bristol-Myers Squibb•GM

1116

1491

1200

1400

1600

2000 44 300%

2001 122 177%

2002 139 14%

•GM•P&G•Sunoco

709800

10002003 166 20%

2004 274 65%

2005 373 36%

2006 516 38%

139 166

274373

516

200

400

6002006 516 38%

2007 709 37%

2008 1116 58%

2009 1491 34%

11 44122 139 166

0

200

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

2010 1818 22%

586 first-time reporters in 2010

G2 G3

GRI Reports by Region 2010*

O i Af iOceania4%

Africa3%

Europe

Northern America

14%Europe

45%

Latin America14%

Asia20%

14%

20%

GRI Reports by Sector 2010*300

250

300

150

200

50

100

0

50

GRI Reports Listhttp://www.globalreporting.org/GRIReports/GRIReportsList/

GRI Reporters (North American Sample)( p )

What so special about a a so spec a abou aGRI Report?

Johnson Controls Reporting

GRI IndexHighlights:

• Economic

• Environmental

L b P ti d D t• Labor Practices and DecentWork

• Human Rights• Human Rights

• Society

• Product Responsibility

Wh ll ?Who really cares?

Shareholder Initiatives & Coalitions• Principles for Responsible Investment (PRI) [2006]

– Currently represents over $22 Trillion in investment capital– 800+ signatories

• Investor Network on Climate Risk (INCR) [2003]– Currently represents over $9 Trillion in investment capital

90+ members– 90+ members

• Carbon Disclosure Project (CDP) [2002]– Currently represents over $71 Trillion in investment capital– act on behalf of 551 institutional investors

• Institutional Investors Group on Climate Change (IIGCC) [2001]– Currently represents $6 Trillion in investment capital– 70 members

• Interfaith Center on Corporate Responsibility (ICCR) [1972]– Currently represents over $100 Billion– 300 members

Environmental Criteria - BloombergCompanyNames 

Environmental Disclosure  

Score

Total Energy Consumption

(Mwh)

Total GHG Emission(Th Tonnes)  

Water Consumption(Thousands of cubic 

meters)

Total Waste(Thousands of metric 

tons)

2010 2009 2010 2009 2010 2009 2010 2009 2010 2009

Apple ‐‐‐ 12.40 ‐‐‐ n/a ‐‐‐ 9542.00 ‐‐‐ n/a ‐‐‐ n/a

CA Inc n/a n/a ‐‐‐ ‐‐‐ n/a n/a ‐‐‐ ‐‐‐ ‐‐‐ ‐‐‐CA, Inc. n/a n/a ‐‐‐ ‐‐‐ n/a n/a ‐‐‐ ‐‐‐ ‐‐‐ ‐‐‐

Dell 37.98 40.31 676.00 619.90 366.19 406.25 1596.00 1683.00 52.61 100.00

EMC ‐‐‐ 54.26 ‐‐‐ 932.51 ‐‐‐ 386.26 ‐‐‐ ‐‐‐ ‐‐‐ ‐‐‐

Fujitsu 55.04 55.04 6638.90 7713.89 273.00 428.00 23106.00 24569.00 32.44 29.71

HP ‐‐‐ 44.19 ‐‐‐ 4046.00 ‐‐‐ 1951.00 ‐‐‐ 7647.00 ‐‐‐ 124.48

Intel ‐‐‐ 46.51 ‐‐‐ 5110.00 ‐‐‐ n/a ‐‐‐ 30379.32 ‐‐‐ 44.48

IBM ‐‐‐ 41.09 ‐‐‐ 6323.06 ‐‐‐ n/a ‐‐‐ ‐‐‐ ‐‐‐ 87.33

Microsoft 11.63 n/a ‐‐‐ ‐‐‐ ‐‐‐ ‐‐‐ ‐‐‐ ‐‐‐ ‐‐‐ ‐‐‐

Toshiba 53.49 56.59 15398.33 15856.11 3078.00 3435.00 52930.00 55800.00 2610.00 291.00

Social & Governance Criteria - Bloomberg Company Social Disclosure Score Governance Disclosure scoreCompany

NameSocial Disclosure Score Governance Disclosure score

2010

2009

% Employees Unionized

Community Spending

(Mn $) 2010

2009

% IndependentDirectors

% Women on Board

Scor

e2

Scor

e 2 ( $)

Scor

e2

Scor

e 2

2010 2009 2010 2009 2010 2009 2010 2009

Apple ‐‐‐ 8.77 ‐‐‐ ‐‐‐ ‐‐‐ ‐‐‐ 51.79 ‐‐‐ 85.71 ‐‐‐ ‐‐‐Apple

CA, Inc. 3.51 3.51 ‐‐‐ ‐‐‐ n/a n/a 46.43 46.43 88.89 90.00 22.22 20.00

Dell 29.82 38.60 ‐‐‐ ‐‐‐ 27.43 40.89 51.79 57.14 81.82 83.33 ‐‐‐ ‐‐‐

EMC ‐‐‐ 42.11 ‐‐‐ 0.00 ‐‐‐ ‐‐‐ ‐‐‐ 66.07 ‐‐‐ 82.00 ‐‐‐ 9.00

Fujitsu 47.37 45.61 46.97 50.35 50.00 20.00 57.14 57.14 30.00 30.00 10.00 0.00

HP ‐‐‐ 43.86 ‐‐‐ ‐‐‐ n/a 52.20 ‐‐‐ 57.14 ‐‐‐ 90.91 ‐‐‐ 18.19

I t l 50 88 n/a 100 00 75 00 90 91 27 00Intel ‐‐‐ 50.88 ‐‐‐ ‐‐‐ n/a 100.00 ‐‐‐ 75.00 ‐‐‐ 90.91 ‐‐‐ 27.00

IBM ‐‐‐ 40.35 ‐‐‐ ‐‐‐ n/a 185.90 ‐‐‐ 51.79 ‐‐‐ 92.86 ‐‐‐ 21.42

Microsoft 36.84 14.04 0.00 0.00 687.50 516.90 57.14 46.43 78.00 80.00 22.22 20.00

T hib 36 84 36 84 189 00 3000 00 53 57 51 79 28 57 28 57 0 00 0 00Toshiba 36.84 36.84 ‐‐‐ ‐‐‐ 189.00 3000.00 53.57 51.79 28.57 28.57 0.00 0.00

I th ROI?Is there ROI?

Bloomberg – Reporters vs. Non

Sustainability PerformanceSource: Bloomberg

Sustainability PerformanceGRI Reporters Presence:

• 95% of the Dow Jones Sustainability Index

78% f th FTSE4G d• 78% of the FTSE4Good

• 70% of the Global 100• 70% of the Global 100

• 70% of the NASDAQ OMX CRD Sustainability Index

H d GRI h l ?How does GRI help?

GRI Developments & Trends

• Government Uptake

• Supply Chain

• Financial Markets

• G4 Development

Global Regulatory Review"M t ki t i bilit"More governments are making sustainability

reporting mandatory.“

• 142 regulatory instruments addressing• 142 regulatory instruments addressing sustainability reporting exist in over 30 countries

• 65% are classified as mandatory, the rest voluntary

• United States• WH CEQ - EO 13514• USPS, US Army, etc….• GSA• Department of State• SEC

Supply Chain Ripple

Customer

TrainingTraining

Suppliers

GRI Stakeholders

Mainstream Uptake

May 2010 January 2011May 2010 January 2011

Continuous Improvement:Continuous Improvement:Sector SupplementsSec o Supp e e s

&G4 Development

Sector SupplementsAvailable:  Under Development: Pilot Version:

Electric Utilities

Financial Services

Airport Operators

Construction & Real 

Automotive

Logistics and 

Food Processing

Estate

Event Organizers

Transportation

Public Agency

Mining & Metals Media Telecommunications

NGO Oil & Gas Apparel and Footwear

Construction & Real Estate Sector SupplementSector Supplement

•Alstria REIT-AG, Germany•APG All Pensions Group, The Netherlands •Arup, United Kingdom

•Hindustan Construction Company Limited, India •International Labor Organization (ILO),Arup, United Kingdom

•Bloomberg, United Kingdom •British Property Federation, United Kingdom B ilding and Wood Workers’ International

International Labor Organization (ILO), Switzerland •Landcom, Australia •Lend Lease, Australia O ford Properties Gro p Canada•Building and Wood Workers’ International,

Switzerland •Cebu Holdings, Philippines •Centre for Science and Environment, New

•Oxford Properties Group, Canada •ProLogis, United States of America •REALPac, Canada •The Energy and Resource Institute

Dehli, India •Ceres, United States of America •Citycon, Finland •Engineers Against Poverty United

gy(TERI), India •UK Green Building Council, United Kingdom •United Nations Environment Programme•Engineers Against Poverty, United

Kingdom •Essar Investments Limited, India •Hermes, United Kingdom

•United Nations Environment Programme (UNEP), France •University of Arizona, United States of America •University of Melbourne, Australia

G4 Development Process

Consensus Based Approach:Consensus Based Approach:• Call for Sustainability Reporting Topics (closed)• Registration for Public Comment gPeriod (closed)• Open Public Comment Period (90-day - through Nov. 24, 2011)

Thank you

Mike WallaceDirector, Focal Point USAGlobal Reporting InitiativeGlobal Reporting Initiativewallace@globalreporting.org+1 212 339 0356Twitter: M A WallaceTwitter: M_A_WallaceLinked In: http://www.linkedin.com/in/mikewallace

Venue, Date