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Reporting and benchmarking corporate responsibility and sustainability efforts

Marjella Alma - Manager External Relations – GRI USAalma@globalreporting.org+1 917 690 0909

Global Communications Forum, 16 May 2012

Vision of the Global Reporting Initiative

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

Question: what essential information did we forget to account for in the past?

GRI is not just about reporting, it’s about the process

The GRI reporting process is

• About identifying your main sustainability impacts together with your stakeholders

• About understanding the link between your business’ everyday activities and the world around it

• About measuring the activities’ impacts and setting targets for improvements over time

• About publicly disclosing these impacts and your performance over time.

A shift in corporate reporting

Financial report

Environ-mental report

ESG disclosures

ESG disclosures

ESG disclosures

ESG disclosures

Sustainability report

Drivers

• Leading companies– supply chain management– efficiency & innovation

• Financial crisis – shift to longer-term thinking

• Investors & rating agencies– demand for ESG factors

• Regulatory environment

How do you measure sustainability impacts?Who defines the metrics to measure them?

GRI - network organization

What does GRI offer? GRI MissionTo make sustainability reporting standard practice by providing guidance and support to organizations.

GRI creates a..Sustainability Reporting Framework to measure social,

environmental & economic (ESG) performance of organizations

• Global collaborating non-profit• Credible, multi-stakeholder

approach• Global de facto standard• Offices in Amsterdam, Beijing,

Delhi, Sao Paulo, New York and Melbourne.

Focus on those topics that matter mostGRI key principle = materiality

The GRI Guidelines

Free downloads:• G3.1 Guidelines• Sector Supplements

(financial services, electric utilities, airports, mining and metals, oil and gas, events, media etc)

https://www.globalreporting.org/reporting/latest-guidelines/g3-1-guidelines/Pages/default.aspx

The GRI GuidelinesGRI Principles:

These guide the content and quality of your reporting.

Materiality, boundary-setting, inclusiveness, stakeholder engagement etc.

GRI reporting elements:

1. Profile Disclosures

Strategy, About, Governance.

2. Disclosures on Management Approach

EC, EN, LA, HR, SO, PR

3. Performance Indicators

EC, EN, LA, HR, SO, PR

Recent research shows that.. sustainability reporting is de facto

law for business

sustainability reporting enhances financial value

combined reporting leads to IR

data integrity is essential

leaders choose external assurance

The largest and most comprehensive survey of CR reporting trends published

Vast coverage of 3,400+ companies

Most comprehensive study since the first report in 1993

KPMG International Corporate Responsibility Reporting Survey 2011

Business case for reporting

Opportunities

Risks

Internal External

Improved business models

Attract investment

Attract talent Stakeholder dialogue

Competitive advantage

Improved reputation and trust

Waste, CO2 and water reduction Governmental and

stock exchange regulation

Innovation

Internal1. Develop a vision & strategy on sustainability2. Improve management systems and cut costs3. Identify strengths & weaknesses4. Attract & motivate the staff5. Connect departments & promote innovation

Identified benefits

External1. Enhances reputation, trust and respect2. Improves transparency and dialogue with stakeholders3. Demonstrates commitment to sustainability4. Enables comparability and benchmarking5. Attract investors6. Source of competitive advantage & become a “market leader”

Supporters of the business case• Principles for Responsible Investment (PRI) [2006]

– Currently represents over $22 Trillion in investment capital– Close to 1000 signatories

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

Mainstream involvement

Reporting trends

US GRI data partner

2007 2008 2009 2010 2011

71119 141

187

273

23

47

Sustainability Reports in the USAGRI G3 + G3.1 GRI reference Non-GRI sustainability report

46% growth in GRI reports2010 vs 2011

Data integrity

* Data from the Sustainability Disclosure Database as of 12 April 2012

Africa Asia Europe Latin America Northern America

Oceania0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

23 125 446

87

40

35

21 112 415

170

167

41

Not assuredExternally assured

American GRI reporters

GRI’s Sector Leaders:

A GRI report..makes use of the G3 or G3.1 Guidelines

includes a GRI Content Index

and preferably declares an Application Level

Display data with a GRI content index

As it:• gives you flexibility to reach different stakeholders in

different ways.• gives you flexibility to reference already existing

content.• enhances ease of access for your stakeholders.• communicates your Application Level.

Sustainability disclosure database

The GRI benchmarking tool

reportedon and to what extent.

Sector: Financial Services

GRI info sharing

The Get Started Videohttps://www.globalreporting.org/reporting/get-started/Pages/default.aspx

Learning Publicationshttps://www.globalreporting.org/reporting/reporting-support/publications/Pages/default.aspx

GRI WebinarsOS – internationalOS - USA

GRI Certified Training Courses

USA Training PartnersCurrentBrownFlynn and Isos Group

To be certifiedBoston College, Deloitte and ERM

https://www.globalreporting.org/reporting/reporting-support/gri-training-and-workshops/certified-training-partners/Pages/United-States.aspx

GRI Events

Monthly Organizational Stakeholder Webinars

US Organizational Stakeholder Webinars

General webinarsFriday 20 April – How to create your first GRI report?

GRI Focal Point USA featuring US Sector Leader Bloomberg

ChallengesMainstreaming sustainability reporting

– continuous development – G4– integrated reporting - IIRC

Technology developments – from report to reporting

– stakeholder engagement– multimedia reporting formats– XBRL/tagging

More involvement with GRI?

• Join the Organizational Stakeholder Program

• Become a US Sector Leader

• Participate in Working Groups

• Participate in Governance Structures

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Thank you!More information:

www.globalreporting.orghttp://database.globalreporting.org