Trends in Digital Sustainability Communication

CSR2012

Agenda

• A transparency revolution

• Findings in the KWD Webranking

• Trends and Best Practice

• Challenges and opportunities

• Going forward

Corporate responsibility towards stakeholders

Company

All companies communicate CSR/Sustainability

• 97 % of the 150 largest listed European companies have a CSR section on their website

• 80 % of the 150 largest European companies have a Sustainability report

Source: KWD Webranking 2011

This is confirmed by the KPMG study on CR reporting

• 95 % of the largest 250 global companies have CR reporting

• It is a dramatic increase over the years

• All (!) of the 100 largest UK companies have CR reporting

Source: KPMG International Survey of Corporate Responsibility Reporting 2011

19931996199920022005200820110

10

20

30

40

50

60

70

80

90

100

1218 21

28

41

53

64

35

45

64

83

95

N100 G250

Pe

rce

nt

It is a transparency revolution

>85%

of the largest 750 European companies have a CSR

section on their corporate website

95%

of the largest 250 global companies have CR reporting100

%of the 100 largest companies in UK

have a sustainability report

80%

of the largest 150 European

companies have sustainability

report, 35% have a digital report

97%

of the largest 150 European companies have a CSR

section on their corporate website

Source: KWD Webranking 2011, KPMG International Survey of Corporate Responsibility Reporting 2011

From

4%in the KWD Webranking 2010

CSR more important in KWD Webranking 2011

To

8%in the KWD Webranking 2011

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20110

5

10

15

20

2 24

7 810 11

13

16 1517 18Number of data points

Financial markets demand for CSR– Top 5

1 Environmental targets and achievements

2 Sustainability/CR report

3 Supply chain standards

4 Social data

5 CR initiatives and memberships

CSR criteria in KWD Webranking 2011

1 Strategy

2 Code of conduct

3 Supply chain standards

4 CR initiatives and memberships

5 Environmental targets and achievements

6 Certified environmental management systems

7 Social data

8 Social targets and achievements

9 Community involvement and charity

10 Sustainability/CR report

11 Reporting standards

12 Sustainability index

13 CR contacts

New!

…and the top companies in Europe

Enel

L’Oréal RepsolRWESnam Rete Gas

Coca Cola Hellenic

Rank Country Score

1 (1) Finland 66%

2 (8) Spain 59%

3 (3) Sweden 58%

4 (7) Italy 54%

5 (2) Denmark 52%

5 (4) UK 52%

5 (5) Netherlands 52%

8 (6) Germany 50%

9 (10) France 44%

10 (9) Switzerland 39%

11 (11) Belgium 37%

12 (13) Turkey 18%

13 (12) Russia 17%

14 (-) Poland 13%

· Finish companies still in the lead as most transparent in Europe

· Almost all countries get a higher score compared to last year

Spanish and Italian companies improve most


Top 10 companies in Italy and Spain

Rank

Italien companies Score

1 Enel 100%

1 Snam Rete Gas 100%

3 Fiat 97%

4 Eni 91%

4 Telecom Italia 91%

6 Saipem 88%

7 Intesa Sanpaolo 84%

7 Terna 84%

7 UniCredit Group 84%

10Banca Monte Dei Paschi Siena 78%


Rank

Spanish companies Score

1 Repsol 100%

2 Acciona 84%

3 Ferrovial 78%

3Red Eléctrica de España 78%

5 BBVA 72%

6 ACS 69%

6 Telefónica 69%

8 Iberdrola 66%

9 Banco de Sabadell 63%

9 Gas Natural 63%

9 Mapfre 63%

Community involvement and charity most common information…

92%of 150 largest European

companies


companies


http://www.bicworld.com/en/sustainable-development/social/

…as well as having a Code of conduct


companies


companies


A majority have a Sustainability Report


companies,

35% have digital report


companies, 14% have digital report


But: Few have contacts (!)



companies


companies

Why?

Klicka på ikonen för att lägga till en bild

Responsible investments increase rapidly

Company Specialized funds PRI signatories

Nordic Large Cap < 1% 30%

Nordic Large Cap Renewable 6% 50%

Nordic Mid Cap 1% 45%

0

200

400

600

800

1,000

159280313354375388437

537683

879

2002 2005 2007 20090

1,000

2,000

3,000

4,000

5,000

6,000

3361,033

2,665

5,000

Source: Vigeo 2010, Eurosif 2010, KW IR 2011

Many act in the name of sustainability

950> $30 trillion

20%

Against a background of scandals, protests and volatility

950> $30 trillion

20%

Who and what?


One size fits no one!

Customer

Consumer

Society

Employees

Suppliers

Investors

NGOs

Digitalmedia

Traditionalmedia

Company

“The many”

Experts

Experts; e.g. investors and NGOsDigital sustainability report

The many; e.g. consumers and employeesCampaign site on CSR

Customer

Consumer

Society

Employees

Suppliers

Investors

NGOs

Digitalmedia

Traditionalmedia

Company

Customers otherstakeholders

Financial institutions

Politicians

Industry organizationScientists

Owners stakeholders

Experts

Student organizations

Consumer organizationsPublic

Media

NGOs

Industry analysts

Future employees

Unions

Local community

Bloggers

Consumers

Customers customers i.e. retailGovernment

Investors

Customers

Employees

Owners

Regulatory authorities

Suppliers

Competitors

is now used by1 in 9 people on earth 250

millions

40 millions

120 millions

800 millions

85% of the European and North American companies on the Dow Jones Sustainability Index are using social media, but only 42% to communicate CSR.

2 perspectives:Challenge and opportunity


1)

http://www.youtube.com/watch?v=1BCA8dQfGi0

2)

http://www.youtube.com/watch?v=7vadVqLKY0c&feature=player_embedded

Going forward


A trend that seems to last into 2012Which part of the website do you plan to improve next year?

Investor Relations sector

CSR section

Press room

About Us section

Career section

Social media connection*

Online annual report

Corporate Governance section

Contact information

Other

Risk and debt related information

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

43%

37%

32%

29%

28%

27%

23%

17%

12%

9%

6%

One concept for all

Strategic concept and a business plan

Selecting channels; report, website, social media…

CSR2012

APPENDIX


Rank Top 10 sectors Score

1 (1) Gas, water & multiutilities 67%

2 (10)Pharmaceuticals & biotechnology

60%

3 (2) Automobiles & parts 59%

4 (3) Industrial engineering 58%

5 (14)Technology equipment & defence

57%

6 (5) Beverages & Tobacco 56%

7 (8) Chemicals 55%

8 (11) Retail 52%

9 (7) Large international banks 51%

9 (4) Oil & gas producers 51%

Sectors; top and bottom 10


Rank Bottom 10 sectors Score

17 (19) Media 44%

20 (24) Oil equipment & services 41%

20 (21)Basic industries (Mining, metals, paper & pulp)

41%

20 (9) Food producers 41%

20 (23) Household & luxury goods 41%

24 (15) Insurance 38%

25 (27) Local banks 31%

25 (25) Software & computer services 31%

27 (26)Healthcare equipment & services

27%

28 (28) Holding companies 22%

Decide on message and target group, and

1 Listen!

2 Learn!

3 Test!

4 Plan!

5 Implement!

6 Engage!

7 Evaluate!

GRI becomes the standard for reporting


companies


companies


CR reporting has gained ground within the Top 100 companies in each country 100% of the 100 largest companies in UK report on

Sustainability

Källa: KPMG International Survey of Corporate Responsibility Reporting 2011

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Top 10 Companies in Germany

Rank

Company Score

1 RWE 100%

2 BASF 97%

3 Deutsche Post DHL 91%

3 Henkel 91%

3 Volkswagen 91%

6 Merck Kgaa 88%

7 Bayer 84%

7 BMW 84%

7 Man 84%

10 Daimler 81%Source: KWD Webranking 2011

Top 10 Companies in Italy and Spain

Rank

Company Score

1 Enel 100%

1 Snam Rete Gas 100%

3 Fiat 97%

4 Eni 91%

4 Telecom Italia 91%

6 Saipem 88%

7 Intesa Sanpaolo 84%

7 Terna 84%

7 UniCredit Group 84%

10Banca Monte Dei Paschi Siena 78%


Rank

Company Score

1 Repsol 100%

2 Acciona 84%

3 Ferrovial 78%


5 BBVA 72%

6 ACS 69%

6 Telefónica 69%

8 Iberdrola 66%


9 Gas Natural 63%

9 Mapfre 63%

Top 10 Companies in Netherlands

Rank

Company Score

1 DSM 88%

1 KPN 88%

3 Arcelormittal 81%

3 Heineken NV 81%

3 Royal Dutch Shell 81%

6 Akzo Nobel 78%

7 Ahold 69%

7 ASML 69%

7 Unilever 69%

10 Philips Electronics 63%Source: KWD Webranking 2011

Top 10 Companies in Spain

Rank

Company Score

1 Repsol 100%

2 Acciona 84%

3 Ferrovial 78%


5 BBVA 72%

6 ACS 69%

6 Telefónica 69%

8 Iberdrola 66%


9 Gas Natural 63%

9 Mapfre 63%


Top 10 companies in Sweden

Rank

Company Score

1 ABB 91%

1 Electrolux 91%

1 SKF 91%

4 AstraZeneca 81%

5 Atlas Copco 78%

5 SCA 78%

5 SSAB 78%

5 Swedbank 78%

5 TeliaSonera 78%

10 Ericsson 75%Source: KWD Webranking 2011

Top 10 Companies in UK

Rank

Company Score

1 Xstrata 97%

2 ARM Holdings 91%

2 BP 91%

2British American Tobacco 91%

2 Centrica 91%

6 Anglo American 84%

6 BG Group 84%

6 BT Group 84%

6 Tullow Oil 84%


Business

Trends in Digital Sustainability Communication