1 / 21

Harnessing Sustainability Ratings to Move Markets European University at St. Petersburg Dr. Allen L. White 30 Septem

Harnessing Sustainability Ratings to Move Markets European University at St. Petersburg Dr. Allen L. White 30 September 2013. Peter Bakker President , WBCSD; former CEO, TNT.

tamal
Download Presentation

Harnessing Sustainability Ratings to Move Markets European University at St. Petersburg Dr. Allen L. White 30 Septem

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Harnessing Sustainability Ratings to Move Markets European University at St. Petersburg Dr. Allen L. White 30 September 2013

  2. Peter Bakker President, WBCSD; former CEO, TNT “I am a capitalist…The mistake currently lies in only expecting (and managing) a return on financial capital. Capitalism requires a new operating system and needs to be re-booted so that we expect and manage the return on financial, natural and social capital. Business as usual is not an option for a future-proofed economy in which nine billion people live well with the limits of the planet by mid-century.”

  3. About GISR • Founders: The Global Initiative for Sustainability Ratings (GISR) is a joint project of Ceres and Tellus Institute — partners that founded the Global Reporting Initiative (GRI) • Vision:Redefine the definition and measurement of company value creation that incorporates all forms of capital: human, intellectual, natural, social, along side financial • Mission: Create a world class corporate sustainability ratings standard as an instrument for embedding sustainability into company practices and financial markets worldwide • Strategy: Steward a multi-stakeholder and global process comprising: investment managers, pension funds, companies, NGOs, accountancies, academics, governments and raters • Launch: June 2011 • Role: A standard setter. GISR will not rate companies; its standard will be applied by existing and future ratings organizations

  4. 20 Years of Sustainability Metrics • More voluminous • GISR data base: 1500+ indicators/500+ issues • SASB: 900+ indicators; 500+ unique • GRI: G4: 29 issues/149 “disclosures”; sector research: 2800 indicators • More applications • SRI • Self Assessment • Stock Exchanges • Ratings: Sustainability and Credit …………………. More material? More impactful?

  5. Sustainability Ratings: What’s the Problem? • Too many indicators • Too many issues • Too many surveys • Too much volatility • Too little transparency >>>Curbs utility, uptake, integration, and impact Opportunity—grow the supply and credibility of quantity of quality ratings; mainstream sustainability, enhance company practices, move financial markets…

  6. Value Proposition for the GISR Standard • Companies • Survey Fatigue • Transparency • Convergence • Investors • Clarity • Relevance • Raters • Credibility • Market Expansion

  7. Sustainability Information Value Chain

  8. Standards Ecosystem

  9. Selected GISR Partners Sponsors Investors Companies NGOs & Foundations Metanoia Fund

  10. Building the Standard: Content and Accreditation Levels

  11. Component 1: Principles Exposure Draft>>>Beta>>>Version 1.0: November 2013 Process • Assurability • Continuous Improvement • Impartiality • Inclusiveness • Transparency Content • Balance • Comparability • Comprehensiveness • Sustainability Context • Long-Term Horizon • Materiality • Value Chain

  12. Example 1: A Balancing Act-- Transparency • Companies: Essential for performance improvement • Raters: IP is part of the business model • Investors: Essential for informed choice and application Thus, transparency of what, to whom and in what form?

  13. Example 2: A Balancing Act – Comprehensiveness and Sustainability Context SUSTAINABILITY CONTEXT - FINISH LINE Peer comparison 3 START LINE X 4 1 2 Baseline year PerformanceToday CompanyGoal

  14. Credit Ratings:The Next Sustainability Frontier • Sustainability ratings rate companies • Credit ratings rate debt issues • Companies, public and private, float issues >>>>>Credit markets=$10’s trillions/year

  15. State of Play – Credit Ratings Source: NRSRO Annual Certifications, 2011

  16. Sustainability: Embedded in Business Risk Profile

  17. Ratings 2020: Companies and Credit Ratings 2013 Ratings 2020 RATINGS 2020 FINISH LINE • Financial • Ratings START LINE • Integrated • Ratings Sustain. Ratings

  18. Sustainability Ratings 2020

  19. An Invitation • Support GISR’s Standard Development Activities • Technical Committee, Expert Advisor Committee, feedback on public exposure and beta versions: www.ratesustainability.org • Join the Supporting Stakeholder Program • A growing multi-stakeholder network of supporters http://ratesustainability.org/get-involved/become-a-supporting-stakeholder/ • Contact GISR to Explore Opportunities for Collaboration : http://ratesustainability.org/contact-gisr/

  20. Thank you For more information: www.ratesustainability.org Mark.tulay@ratesustainability.org

More Related