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Sustainability Reporting Trends. Sustainability Reporting Trends October 2011 Mike Wallace Director, Focal Point USA Global Reporting Initiative wallace@globalreporting.org +1 212 339 0356. Range of Terminology. CSR - Corporate Social Responsibility CC - Corporate Citizenship
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Sustainability Reporting Trends Sustainability Reporting TrendsOctober 2011Mike WallaceDirector, Focal Point USAGlobal Reporting Initiativewallace@globalreporting.org+1 212 339 0356
Range of Terminology • CSR - Corporate Social Responsibility • CC - Corporate Citizenship • SD - Sustainable Development • ES - Environmental Sustainability • BE - Business Ethics • CE - Corporate Ethics • CG - Corporate Governance • ESG - Environmental, Social & Governance • IR - Integrated reporting What is your “Footprint”?
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 Reporting Trends • US Reporters in 1999 • Bristol-Myers Squibb • GM • P&G • Sunoco 586 first-time reporters in 2010 G2 G3
GRI Reports Listhttp://www.globalreporting.org/GRIReports/GRIReportsList/
US Business Roundtable • 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 April 2009 • 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 April 2010
Shareholder Initiatives & Coalitions • Principles for Responsible Investment (PRI) [2006] • Currently represents over $22 Trillion in investment capital • 800+ 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
Analysis of Tech Sector Based on 2010 information
Analysis of Tech Sector Based on 2010 information
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
GRI Developments & Trends • Government Uptake • Supply Chain • Financial Markets • G4 Development
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, etc…. • GSA • Department of State • SEC
Supply Chain Ripple Customer Training Suppliers GRI Stakeholders
Mainstream Uptake May 2010 January 2011
G4 Development Process • Consensus Based Approach: • Call for Sustainability Reporting Topics (closed) • Registration for Public Comment Period (closed) • Open Public Comment Period (90-day - through Nov. 24, 2011)
Mike WallaceDirector, Focal Point USAGlobal Reporting Initiativewallace@globalreporting.org+1 212 339 0356Twitter: M_A_WallaceLinked In: http://www.linkedin.com/in/mikewallace Thank you