
Sustainability Reporting – O’Brien

“High Performance Buildings” - Video

Project Teams - Working Session
Agenda
Sustainability Reporting
Sources:
“Sustainability – The New Business Paradigm”, Chapter 10 (to be published
in 2010)
Sustainability Report by Teri
“Sustainability Reporting”, Professor Ans Kolk, University of Amsterdam
Business School, VBA Journal, 2005
“10 Trends in Sustainability Reporting”, Globe Net, February 10, 2010
Definition
 Background
 10 Trends
 Why Companies Report
 Types of Reports:

◦ Required by Legislation
◦ Voluntary Initiatives
Voluntary Initiatives
 Pros and Cons: Reporting
 Benefits
 Sample Reports

Topics


Sustainability Reporting is the practice of
measuring, disclosing, and being accountable to
internal and external stakeholders for
organizational performance against specific
environmental, social and economic/governance
(“ESG”) goals and metrics.
Sustainability Reporting is rapidly gaining
adoption across all market sectors globally, and
is now the norm among large companies
globally, driven mainly by global investment
community demand.
Definition
Reporting on performance can help a company
drive internal change in numerous ways:
•
•
•
•
•
forces the company to acknowledge sustainability
issues and assess if any gaps exist.
when communicated internally, the company leaders
can show managers and employees as to what needs
to be done and rally support for a cause or an action.
The report can serve as a part of the check in a
standard “Plan – Do – Check – Act” (PDCA) process.
change can also come about a benchmarking study
whereby data is collected and compared to a best-inclass company.
sustainability reports also invite comments and
scrutiny from external stakeholders.
Background

Financial statements capture only a portion of corporate risks and valuecreation potential, with the balance derived from intangible factors such
as strategy, product innovation, brand and reputation management,
energy/resource efficiency, commercial risk reduction, and environmental
and social risk reduction.

Sustainability reporting is largely voluntary worldwide.

Sustainability reporting is now the norm among large companies globally,
increasing from about 300 sustainability reports in 1996 to 3,100 (The
Global Reporting Initiative reported more than 1,000 organizations
worldwide that have registered sustainability reports in 2008 based on the
GRI G3 Guidelines.)

Sustainability reporting in the U.S. has been much slower to develop than
in Europe.

Most industrialized countries have long-standing environmental laws that
restrict environmental-impact activities and require some form of
environmental regulatory reporting.
10 Trends

The evolution of metric frameworks for sustainability reporting is a major
challenge for suppliers and users.

Multiple metric frameworks, a lack of uniform definitions, and a lack of
consistent applications are producing variable and unreliable
measurement and disclosure results.

The emergence of national and regional legislation and regulation, which
have not been integrated and/or synchronized with multiple metric
frameworks, is a major challenge.

Synchronization of voluntary reporting frameworks with governmental
and regulatory requirements may be driven in part by recent initiatives
by GRI and the World Intellectual Capital Initiative

Governmental, regulatory, and audit oversight of sustainability issues will
become the norm within five years, in both the developed and developing
world, across all industries
10 Trends continued

Providing information about challenges and achievements to
shareholders, employees, the public and other stakeholders

An internal commitment to environmental and social responsibility

As a marketing tool, associating the company with sound
environmental management and sustainable activities

Tracking progress on integration of sustainability principles into
company planning and programs

Taking first steps towards doing things in a more sustainable way

A successful pilot project persuades decision-makers to take the
initiative company-wide

A commitment while becoming a world leader in sustainability
Why Do a Report?
Self-assessment tool
 Management system
 External monitoring mechanism
 Action plan
 Business development tool
 Communications vehicle

Looking beyond short-term band-aids to find
longer term solutions that make business sense
Importance of Sustainability Reporting

Required by Legislation

Voluntary Initiatives
Types of Reports
Required by Legislation

Carbon Disclosure Project (CDP)
https://www.cdproject.net/en-US/Pages/HomePage.aspx

Dow Jones Sustainable Index (DJSI)
http://www.sustainability-index.com/

Global Reporting Initiative (GRI)
http://www.globalreporting.org/Home

UN Global Compact COP
https://globalcompact.pbworks.com/Introduction+-+The+10+Principles
Voluntary Initiatives
Pros: Reporting
Cons: Reporting
Reduce operating costs and improve efficiencies;
 Develop innovative products and services for
access to new markets;
 Improve reputation and brand value;
 Recruit and retain excellent people;
 Gain better access to investor capital;
 Enhance the public value of the company;
 Reduce liabilities through integrated risk
management.

Benefits

Intensive, year-round process

Frequency of reporting – Annual (aligned with
annual reporting process)

Format and Medium - PDF format in combination
with stand-alone hard copy and web-based
interactive reporting

Principles for ensuring Report Quality: Material
issues and topics; Balance; Comparability; Accuracy;
Timeliness and Clarity
Preparing a Sustainability Report
0.5
1.5
3.0
Brainstorming
0.25
1.5
2.0
Outline
Development
0.75
3.0
6.0
Information
Collection
1.0
3.0 Writing and
7.0 Design
1.0
Internal
2.0
Review
4.0
1.0
External
1.0
Review
2.0
Duration (Months)
Minimum
Average
Maximum
Typical Reporting Process

Cascades, Inc.

Desert Glory
Sample Reports
Questions?