Non-Financial Reporting - NASDAQ OMX Corporate Solutions

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Sustainability Reporting Trends
“Game Changing Developments”
March 2012
Mike Wallace
Director, Focal Point USA
Global Reporting Initiative
[email protected]
+1 212 339 0356
Venue, Date
What is the current
situation?
Range of Terminology
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CSR
CC
SD
ES
BE
CE
CG
ESG
IR
- Corporate Social Responsibility
- Corporate Citizenship
- Sustainable Development
- Environmental Sustainability
- Business Ethics
- Corporate Ethics
- Corporate Governance
- Environmental, Social & Governance
- Integrated reporting
Non-Financial Reporting
How does GRI help?
GRI’s Vision & Mission
Vision
A sustainable global economy where organizations
manage their economic, environmental, social and
governance performance and impacts responsibly
and report transparently.
Mission
To make sustainability reporting standard practice by
providing guidance and support to organizations.
The GRI Guidelines
Environmental
• EN 3 - Direct energy consumption by primary
energy source
Labor
• 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 taken
Product Responsibility
• PR 6 - Programs for adherence to laws, standards,
and voluntary codes related to marketing
communications, including advertising, promotion,
ad sponsorship.
Economic
• EC 4 – Significant financial assistance received
from government.
GRI Harmonization – Local & Global
What are we seeing?
Corporate Sustainability:
A Progress Report
October 2011
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Reviewed 3400 companies representing the national leaders
from 34 countries around the world, including the 250 largest
global companies
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Ninety-five percent of the 250 largest companies in the world
(G250 companies) now report on their corporate
responsibility (CR) activities, two-thirds of non-reporters are
based in the US.
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CR reporting has gained ground within the Top 100 companies
in each of the 34 countries surveyed.
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The total number of reporting N100 companies increased by
11 percentage points, to 64 percent in 2011.
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Eighty percent of G250 and 69 percent of N100 companies
are now aligning to GRI reporting standards.
Who are these Reporters?
GRI Reporters
(North American Sample)
US Business Roundtable
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ABB
Accenture
Abbott
Alcoa
American Electric Power
AT&T
CB Richard Ellis Group Inc.
CH2MHill Companies, Ltd.
Chevron
Chubb
Citi
Coca-Cola
Conoco Philips
Cummins
Darden
Deloitte
Dow Chemical
Duke Energy
DuPont
Eastman Kodak Co.
EMC
Exxon Mobil
Freeport McMoran
General Electric
General Motors
HSBC
IBM
International Paper
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ITT
Johnson & Johnson
Johnson Control
Life Technologies Corp
McKesson Corp.
Merck
Motorola
NexTera (Formerly FPL)
Office Depot
Owens Corning
PepsiCo
Pfizer
Praxair
Proctor & Gamble Co.
Ryder
Sara Lee
SAP USA
SAS
Southern Company
Siemens Corp
Target Corporation
Tyco
UAL Corporation
Weyerhauser
Whirlpool Corporation
Williams
Xerox
Who really cares?
Increasing Stakeholders and Demand
Modern
Due
Diligence
Shareholder Initiatives & Coalitions
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Principles for Responsible Investment (PRI) [2006]
– Currently represents over $30 Trillion in investment capital
– 900+ signatories
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Investor Network on Climate Risk (INCR) [2003]
– Currently represents over $10 Trillion in investment capital
– 100+ members
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Carbon Disclosure Project (CDP) [2002]
– Currently represents over $71 Trillion in investment capital
– act on behalf of 550+ institutional investors
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Institutional Investors Group on Climate Change (IIGCC) [2001]
– Currently represents $6 Trillion in investment capital
– 70 members
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Interfaith Center on Corporate Responsibility (ICCR) [1972]
– Currently represents over $100 Billion
– 300 members
Signatories to the PRI (US)
900+ international signatories
PARTIAL LIST OF ASSET OWNERS (200):
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AFL-CIO Reserve Fund / AFL-CIO Staff Retirement Plan
CalPERS / CalSTRS
Connecticut Retirement Plans and Trust Funds (CRPTF)
General Board of Pension and Health Benefits United Methodist Church
Illinois State Board of Investments
Los Angeles County Employees Retirement Association (LACERA)
Maryland State Retirement and Pension System
New York City Employees Retirement System / New York State Local Retirement S
SEIU Pension Plans Master Trust
State Universities Retirement System of Illinois
Teachers' Retirement System of the City of New York
Universal Health Care Foundation of Connecticut
Signatories to the PRI (US)
900+ international signatories
PARTIAL LIST OF INVESTMENT MANAGERS:
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BlackRock
Calvert Investments
CBRE Investors
Domini Social Investments
JPMorgan Asset Management
Kohlberg Kravis Roberts & Co, LLP
Krull & Company
Northern Trust Global Investments
Prudential Real Estate Investors
Russell Investments
TD Asset Management Inc.
The Townsend Group
TIAA - CREF
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Boston Trust
Capital Group International
Clear Bridge Advisors
MFS Investment Management
Principal Global Investors
T. Rowe Price
Tower Capital Asset
Management LP
Mainstream Involvement
How would you conduct
due diligence?
Can any of this really be
measured?
Sustainability Performance
GRI Reporters Presence:
• 95% of the Dow Jones Sustainability Index
• 78% of the FTSE4Good
• 70% of the Global 100
• 70% of the NASDAQ OMX CRD
Sustainability Index
Market Evolution
300,000+ data terminals
globally
5,000+ companies and
climbing
Sustainability Aspects
• Emissions
• Energy Consumption
• Human Rights
• Policies
• Board Make-Up
Built around GRI
Environmental Criteria (2010)
Company
Names
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
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2010
2009
Apple
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12.40
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n/a
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9542.00
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n/a
CA, Inc.
n/a
n/a
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n/a
n/a
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Dell
37.98
40.31
676.00
619.90
366.19
406.25
1596.00
1683.00
52.61
100.00
EMC
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54.26
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932.51
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386.26
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Fujitsu
55.04
55.04
6638.90
7713.89
273.00
428.00
23106.00
24569.00
32.44
29.71
HP
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44.19
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4046.00
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1951.00
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7647.00
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124.48
Intel
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46.51
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5110.00
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n/a
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30379.32
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44.48
IBM
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41.09
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6323.06
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87.33
Microsoft
11.63
n/a
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Toshiba
53.49
56.59
15398.33
15856.11
3078.00
3435.00
52930.00
55800.00
2610.00
291.00
Sustainability Performance
MSCI World & GRI
2002 to 2012
S&P 500 & GRI
2001 to 2011
GRI Developments & Trends
• SROs - Stock Exchanges
• Regulatory Developments
– National & State Regulation
– Supply Chain Implications
• Supply Chain Developments
Mainstream Uptake
May 2010
January 2011
Global Regulatory Review
"More governments are making sustainability
reporting mandatory.“
• 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, GSA, etc….
• SEC
• Dodd-Frank
• CA Transparency on Trafficking &
Slavery
Supply Chain Ripple
• Sept 2011 – GSA
• Oct 2011 – MS
• Jan 2012 - Apple
Supply Chain Ripple
Customer
Training
Suppliers
GRI Stakeholders
View Forward
G4 timeline - Working Groups and 2nd PCP
2011
MAY JUN
JUL
AUG SEP
2012
OCT
NOV DEC
JAN
FEB
MAR APR
MAY JUN
JUL
2013
AUG SEP
OCT
NOV DEC JAN
FEB
MAR APR MAY JUN
Text Revision / Editing Task Force
We are here
Preparatory Stage
MAY JUN
JUL
Public Comment
Period 1
AUG SEP
OCT
We
are here!
Working
Working Groups
Meet
Groups
Formed
NOV DEC
JAN FEB
MAR APR
2011
G4 Working Groups
• Supply Chain Disclosure
• Disclosure on Management
Approach
Working
Groups
Mee t
Public Comment
Period 2
MAY JUN
JUL
2012
AUG SEP
OCT
Governance
Bodies give
Final Vote
NOV DEC
JAN
Final Edit
LAUNCH
FEB MAR APR MAY JUN
2013
• Governance & Remuneration
• Boundary
• Application Level
Thank you
Mike Wallace
Director, Focal Point USA
Global Reporting Initiative
[email protected]
+1 212 339 0356
Twitter: M_A_Wallace
Linked In:
http://www.linkedin.com/in/mikewallace
Venue, Date
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