The Future of Sustainability Reporting - Corporate Citizenship · Corporate Citizenship Victoria A. Tan HEAD, GROUP RISK MANAGEMENT & SUSTAINABILITY Ayala Corporation 2 . ... STAGE

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JUNE 2015

The Future of Sustainability Reporting: From Routine to Strategic

1 The Future of Reporting: From Routine to Strategic | 2015 | © Corporate Citizenship

About Corporate Citizenship

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Established in 1997, we are one of the longest-

standing specialist sustainability consultancies.

We are a global business consultancy

specialising in sustainability.

Based in London, New York, San Francisco,

Singapore and Santiago.

Working experience in more than 40 countries

across Africa, India, South East Asia and Latin

America.

“Corporate Citizenship helped us to understand the issues, anticipated what’s next and realise the opportunities for growth.”

Global VP, Sustainable Business


Speakers

Nana Guar SENIOR CONSULTANT

Corporate Citizenship

Nana Guar Senior Consultant Mike Tuffrey

DIRECTOR


Junice Yeo DIRECTOR


Victoria A. Tan HEAD, GROUP RISK MANAGEMENT & SUSTAINABILITY

Ayala Corporation

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What we will cover today

• About our research

– Reporting challenges

– The Reporting Journey: 8 Defining Questions

– Four drivers of change

• Responding to a changing landscape

• Global views: Sustainability Reporting in Southeast Asia

• Ayala Corporation

• Discussion and Q&A

• Round up

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Asking questions

4

Ask a Question


About our research


What we have heard

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“It’s hard to know what is relevant, what to leave out,

where to start.”

“Who actually reads them? This isn’t that clear. I think

they try to reach too many audiences, and generally

fail as they try to be a hybrid to everyone rather than

focussed on say, convincing the investor that CR is

linked to the bottom line.”

“Generally I’d like to see

reports move away from the

fluffy stuff…and become

more data and results

oriented- demonstrating the

quantifiable contribution CR

is making o the company

and wider stakeholders.”

Sustainability

Reporting In 2015

“Nobody actually reads it

cover-to-cover but it’s a

helpful review of CR activities

and for benchmarking. “I’m not 100%

convinced by the

whole integrated

reporting stuff…

integration can lose

the sustainability

message.”

“How does the report add value to our brand?”

“There are many other avenues through which to give

updates on CR activities- it doesn’t all need to go in the

one report!”

“With all the standards,

requirements, where will all the

data go?”


The Reporting Journey: 8 Defining Questions

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1. Aims What is the objective of the report?

2. Audience Who are the audiences for the report?

3. Materiality What is the approach to identifying issues that are important to the business and to

stakeholders?

4. Systems & Processes What types of reporting systems and processes are in place to facilitate sustainability

communications

5. Standards &

Frameworks

What reporting standards and frameworks are used?

6. Outputs What is produced from the reporting process?

7. Engagement What is the approach to engaging audiences?

8. Frequency How often will the exercise be repeated or other outputs be produced?


Four drivers of change

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III. Standards Proliferation There is a rapid proliferation of

sustainability-related standards,

rankings, ratings, and indices.

I. Strategic Alignment Closer alignment between sustainability

and commercial decisions has become

a business imperative.

II. Issues Expansion The scope and significance of issues are

expanding across extended value

chains.

IV. Digital Innovation Digital innovation offer new ways of

presenting data and communicating

with audiences.


Responding to a

changing landscape

10 10 The Future of Reporting: From Routine to Strategic | 2015 | © Corporate Citizenship

Driver 1: Strategic Alignment RESPONDING TO A CHANGING LANDSCAPE

Closer alignment between sustainability and commercial decisions has become a

business imperative.

Environmental Profit and Loss Account (EP&L) Big Targets, Big Plans Integrated

Reporting

NB: Placeholder for

MAD.


Driver 2: Issues Expansion RESPONDING TO A CHANGING LANDSCAPE

The scope and significance of issues are expanding across extended value chains.

“Our vision is to double the size of the business, whilst reducing our environmental footprint and increasing our positive social impact”

NB: Placeholder for

MAD.

Greenhouse Gas Footprint


Driver 3: Standards Proliferation RESPONDING TO A CHANGING LANDSCAPE

There is a rapid proliferation of sustainability-related standards, rankings, ratings, and

indices.


Driver 4: Digital Innovation RESPONDING TO A CHANGING LANDSCAPE

Digital innovation offer new ways of presenting data and communicating with

audiences.


Global views:

Sustainability Reporting in

Southeast Asia


Drivers of change in Southeast Asia

1. Drive to integrate sustainability in the business

Changing business environments often linked with natural and man-made disasters.

2. Drive for deeper engagement

Smallholder farmers, rural communities and Asian familiy businesses result in complex supply chains

3. Drive for standards

Major ASEAN corporations are motivated to achieve global standards as an assurance of good business practice.

4. Drive for audience engagement

Target audiences range from NGOs to new graduates. Companies are looking for ways to differentiate.


Sustainability Reporting in Southeast Asia


Advancements among SEA reporters


Ayala Corporation

Victoria A. Tan Head, Group Risk Management and Sustainability

Ayala Corporation


Audience Poll


Audience Poll (to be updated during run through)

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Ask a Question


Audience Poll

1. What is your organisation’s primary purpose for reporting?

a. Mandatory compliance with regulators

a. Investor confidence

b. Broader stakeholder expectations for responsible business

c. Driving performance and operational change in the business

d. Leadership position on big (sector or global) issues


Audience Poll

2. Who is your primary reporting audience?

a. Employees & Recruits

b. Investors

c. Analysts

d. Key Opinion Formers

e. Academics, Think Tanks

f. Government & Regulators

g. NGOs & Critics

h. Consumers

i. Local Communities

j. Media


Audience Poll

3. What is your primary approach to identifying topics to report?

a. Based on compliance with regulator requirements

b. Internal views (e.g. company and management priorities)

c. External stakeholder views

d. Formal materiality exercise bringing together internal and external stakeholders


Discussion and Q&A


The Reporting Journey

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STAGE 1 STAGE 2 STAGE 3 STAGE 4 STAGE 5

1. Aims Mandatory /Compliance-based

and reputation performance operational

change

Influencing the

debate

2. Audience Undefined or compliance-based

Everybody Defined multi-audience

Prioritised target audiences

3. Materiality Random or compliance-based selection of issues

Anything and everything

Informal and/or internally focused materiality process

Formal materiality exercise

Extensive process to aggregate and prioritise

4. Systems & Processes Weak or ad hoc systems

Add-on systems Embedded systems Extended systems

Integrated systems

5. Standards & Frameworks

Compliance-based or none

Informed guidance

Commitment to specific frameworks and guidance

Strategic selection of advanced standards

Value-added standards

6. Outputs Reviews and pamphlets

Full-length report or PDFs

Stratified communications

Targeted Engagement

Bespoke Communications suite

7. Engagement Business as usual or ad-hoc

Business as usual interactions

Enabled feedback Interactive Targeted engagement of priority audiences

8. Frequency As required Annually or every two years

Defined and regular time period

Ongoing Real-time


Thank you for joining us!


For further information please contact:

Nana Guar – Senior Consultant E: [email protected] T: +44 (0) 207 861 1616 W: www.corporate-citizenship.com E: [email protected]

Twitter: @CCitizenship

LinkedIn: Corporate Citizenship Company

Contact us

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Of 203 Vitacura - Santiago Chile

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T: +44 (0)20 7861 1616 T: 1-212-226-3702 T: 1-415-416-9580 T: +56 (2)2 247 9008 T: +65 6836 9098

mailto:[email protected]



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Documents

The Future of Sustainability Reporting - Corporate Citizenship · Corporate Citizenship Victoria A. Tan HEAD, GROUP RISK MANAGEMENT & SUSTAINABILITY Ayala Corporation 2 . ... STAGE