20130612 gri tsx
DESCRIPTION
GRI Launched of G4 in Canada - Toronto, June 12, 2013TRANSCRIPT
Welcome to GRI’s Official Canadian
#G4launch in Toronto
12 June, 2013
Toronto, 12 June 2013 – hosted by Toronto Stock Exchange
G4 Campaign Sponsor
1:00 – 1.10 Opening – Mike Wallace, Director GRI Focal Point USA
1.10 – 2.10 Master Class II G4 Download – Sustainalytics
2.10 – 2.30 Interview with Suncor Energy; Q&A
2:30 – 2:45 Break
2:45 – 3:45 Panel Discussion with investors
3:45 – 4:45 Master Class III G4 Applied to Canadian context
4.45 – 6.00 Reception
Agenda
North American G4 Campaign
G4 Campaign Sponsors
Participating
Certified Training Partners & Sector Leaders:
• Boston College • BrownFlynn • Deloitte • ERM • ISOS Group • Lead Canada w/Sustainalytics
• Bloomberg • Clorox • Curran & Connors • Dell • NYSE Euronext • Sprint • The Mosaic Company
Focus on what matters, where it matters
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
Vision & Mission of GRI
Meanwhile in Europe…
EC Proposal for EU
directive
All large companies in the
EU will have to disclose
information on (a) policies,
(b) risks and (c) results as
regards environmental
matters, social and
employee-related aspects,
respect for human rights,
anti-corruption and bribery
issues, and diversity on the
boards of directors.
16 April 2013
Key objectives GRI
More reporters!
Better transparency!
It’s not just about your report, it’s about
transparency creating real change.
Harmonization & alignment
International North American
Market uptake
And others…
Why G4?
GRI anticipates:
• continued strong growth in sustainability reporting
• increasing interest from report users for well-presented and accessible information
• harmonization between reporting tools and systems
• the integration of financial and sustainability reporting
Starting points for G4
• G4 Objectives
o Be user-friendly for beginner and experienced reporters
o Improve technical quality, with clearer definitions
o Align with other international reporting references (frameworks)
o Lead to reports that cover material topics
o Offer guidance on how to link sustainability and integrated reporting, aligned with the IIRC
o Improve data access (XBRL)
G4 development timeline
Jan Feb Mar Apr May Jun Jul Aug Sep
2013
TAC
Final check
on G4
content
G4 launch
SC and TAC Concur.
BoD approval Roll-out Phase
SC and BoD -
final feedback
to G4
We are here
Focused consultation
GRI technical and editorial improvements,
layout improvements, etc.
G4 Launch at the GRI Conference
• Over 1600 people, from over 80 countries
• Over 40 sessions, with close to 200 speakers
North American G4 Campaign Pre-Conference
11 April – GRI @ NYSE, New York
2 May– GRI @ CERES, San Francisco
15 May – GRI @ webinar, online
G4 Local Launch
3 June – GRI @ Sustainable Brands ‘13, San Diego
6 June – GRI @ Sustainability Summit, Kansas City
10, 11 June – GRI @ Deloitte, Vancouver & Calgary
TODAY – GRI @ Toronto Stock Exchange, Toronto
19 June & 24 June – GRI @ webinar, online
Before… and after…
Master Class II: G4 Download
Presented by GRI’s Certified Training Partner (in Canada):
About Sustainalytics
Certified-GRI training: In collaboration with Lead Canada, we provide the GRI-certified 2-day training workshop across Canada.
Reporting best practices: Our global team of sector-specific analysts read and analyse thousands of sustainability reports annually.
Reporting Awards Judge: For the past several years, Sustainalytics has participated as a judge for the sustainability category.
Sustainalytics is a global leader in sustainability research and analysis.
Master Class II Agenda
18
Overview of sustainability reporting
The GRI’s 5-Step Reporting Process
1. Obtain an overview
2. Choose the preferred ‘in accordance’ option
3. Prepare to disclose general standard disclosures
4. Analyze materiality related to specific standard disclosures
5. Prepare the sustainability report
Questions & Discussion
Overview of Sustainability Reporting
Conveys disclosures on an organization’s impacts – positive or negative – on the environment, society, and the economy
Sets in motion a process that helps organizations to set goals, measure performance, and manage change
Sustainability reporting is driving improved performance
Sustainability reporting
The mainstreaming of responsible investment is founded on the recognition that ESG issues can be material.
Academic and sell-side research strongly supports this view
It is a view also supported by the CFA, the SEC, McKinsey and Co., the Harvard Business Review, and many of the world’s largest institutional investors
21
Sustainability is being Driven by Competitive Investment Returns
http://funds.rbcgam.com/_assets-custom/pdf/RBC-GAM-does-SRI-hurt-investment-returns.pdf http://www.hbs.edu/faculty/Publication%20Files/12-035.pdf https://www.dbadvisors.com/content/_media/Sustainable_Investing_2012.pdf http://dupress.com/articles/finding-the-value-in-environmental-social-and-governance-performance http://www.generationim.com/sustainability/report/
22
Sustainability is Being Driven by Ratings/Rankings
Raters Examples:
Rankings and data
produced by SRI
information providers
Reputation indices
produced by NGOs/
Media/Research firms
Rankings Examples:
Indices Examples
Indices developed
by financial index
companies
Sustainability and Transparency is Driven by the Need to Build Public Trust
Growth in sustainability reporting
Sustainability reporting in Canada
In 2012, there were 2 times as many reporters in EU
compared to North America.
25
In 2011, Canadian companies published 3% of total global GRI
reports, the 10th highest reporting level
in the world.
Source: GRI Sustainability Reporting Statistics Publication year 2011
Sustainability reporting by type
26 Source: GRI Sustainability Reporting Statistics Publication year 2011
The majority of GRI
reports are from
publicly listed
companies.
27 Source: GRI Sustainability Reporting Statistics Publication year 2011
2011 GRI Reports by Sector
Sustainability reporting by sector
The GRI’s 5-Step Reporting Process
About the GRI
29
GRI Network
Focal Points
USA Focal Point
Advisory Groups Organizational
Stakeholders
Training Partners
CANADA: Sustainalytics/
LEAD Canada
Neuvaction
GRI reporters
Governance bodies
Technical Advisory Committee (Chair: Denise Esdon, E&Y)
Secretariat (Amsterdam)
Key Changes in G4
30
Greater focus on materiality
ABC application levels have been replaced by an “in accordance” system - Core or Comprehensive
Aspect specific guidance for Disclosures on Management Approach (DMAs)
Approach to boundary-setting has changed
New “level of coverage” concept
Enhanced focus on key areas including: governance and supply chain disclosures
The GRI’s 5-Step Reporting Process
31
1. • Obtain an overview
2. • Choose the preferred ‘in accordance’ option
3. • Prepare to disclose general standard
disclosures
4. • Prepare to disclose specific standard
disclosures
5. • Prepare the sustainability report
1. • Obtain an overview
2. • Choose the preferred ‘in accordance’ option
3. • Prepare to disclose general standard
disclosures
4. • Prepare to disclose specific standard
disclosures
5. • Prepare the sustainability report
The GRI’s 5-Step Reporting Process
33
G4 Sustainability Reporting Guidelines
The GRI’s 5-Step Reporting Process 1. Obtain an overview
The Reporting Principles should be applied by all organizations when preparing a sustainability report.
34
Principles for Defining Report
Content
Sustainability Context
Stakeholder Inclusiveness
Materiality
Completeness
Principles for Ensuring Report
Quality
Balance
Comparability
Accuracy
Timeliness
Clarity
Reliability
The GRI’s 5-Step Reporting Process 1. Obtain an overview
1. • Obtain an overview
3. • Prepare to disclose general standard
disclosures
4. • Prepare to disclose specific standard
disclosures
5. • Prepare the sustainability report
The GRI’s 5-Step Reporting Process
2. • Choose the preferred ‘in accordance’ option
36
‘In accordance’ options:
Organizations may prepare their sustainability report ‘in accordance’ with the G4 Guidelines using one of two options: core and comprehensive
The options do not indicate quality or performance
Report should include statement if partially but not fully in accordance with either option
Not ‘in accordance’ ‘In accordance’ with the
Core option ‘In accordance’ with the Comprehensive option
The GRI’s 5-Step Reporting Process 2. Choose the preferred ‘in accordance’ option
1. • Obtain an overview
2. • Choose the preferred ‘in accordance’ option
4. • Prepare to disclose specific standard
disclosures
5. • Prepare the sustainability report
The GRI’s 5-Step Reporting Process
3. • Prepare to disclose general standard
disclosures
Applicable to all organizations; helps to set the stage and provide context
Core option = 34 general disclosures required
Comprehensive option = all (58) general disclosures required
The GRI’s 5-Step Reporting Process 3. Prepare to disclose general standard disclosures
G4
General disclosures
Strategy and analysis
2 indicators
Organizational profile
14 indicators
Material aspects and boundaries
7 indicators
Stakeholder engagement
4 indicators
Report profile 6 indicators
Governance 22 indicators
Ethics and integrity
3 indicators
Specific disclosures
39
The GRI’s 5-Step Reporting Process 3. Prepare to disclose general standard disclosures
Stak
eho
lde
r En
gage
me
nt
G4-24
Provide a list of stakeholder groups engaged by the organization
G4-25
Report the basis for identification and selection of stakeholders with whom to
engage
G4-26
Report the approach to engagement, including frequency by type
G4-27
Report key topics and concerns raised by stakeholders and where they are
addressed
1. • Obtain an overview
2. • Choose the preferred ‘in accordance’ option
3. • Prepare to disclose general standard
disclosures
5. • Prepare the sustainability report
The GRI’s 5-Step Reporting Process
4. • Prepare to disclose specific standard
disclosures
The GRI’s 5-Step Reporting Process 4. Prepare to disclose specific standard disclosures
G4
General disclosures
Specific disclosures
Economic 4 aspects 9 indicators
Environmental 12 aspects 34 indicators
Labour 8 aspects 16 aspects
Human Rights 10 aspects 12 indicators
Society 7 aspects 11 indicators
Products 5 aspects 9 indicators
Applicable to all organizations based on materiality
DMAs should be reported for material aspects
New aspects and indicators in G4 mostly related to supply chain
DMA
Categories Aspects Indicators
42
The GRI’s 5-Step Reporting Process 4. Prepare to disclose specific standard disclosures
DMAs
Describe why the aspect is material
Describe the management
approach
Describe how the management
approach is evaluated
Aspect-specific DMA guidance available for
23 aspects
‘Disclosures on Management Approach’: DMAs provide narrative on an organization’s
material aspects
DMAs describe policies, commitments, organizational responsibility, etc.
Materiality is to be determined at the Aspect level
The GRI’s 5-Step Reporting Process 4. Prepare to disclose specific standard disclosures
44
Core option 1 indicator per
material aspect
Comprehensive option All listed indicators
per material aspect
E.g. All 3 for the aspect ‘water’
Guidance is included on how and what information and data to compile – use this guidance!
Example: Aspect - Water
The GRI’s 5-Step Reporting Process 4. Prepare to disclose specific standard disclosures
45
‘Reasons for omissions’:
In exceptional cases, an organization may omit a general or specific disclosure if it is: Not applicable
Business confidential
Legally prohibited, or
If data is not available
However, must provide good rationale
The GRI’s 5-Step Reporting Process 4. Prepare to disclose specific standard disclosures
46
Sector Supplements: Ten sector supplements were created
under G3 to reflect that many sectors had unique impacts
The aspects and indicators contained within remain valid. If a sector-specific aspect is material, then it must be included in the report.
The GRI’s 5-Step Reporting Process 4. Prepare to disclose specific standard disclosures
Finalized sector supplements Financial Services Electric Utilities Food Processing Mining and Metals NGO
Airport Operations Construction and Real Estate Event Organizers Media Oil and Gas
47
When preparing to disclose specific standard disclosures, materiality should be at the forefront
The GRI’s 5-Step Reporting Process 4. Prepare to disclose specific standard disclosures
“Material topics for a reporting organization should include those topics that have a direct or indirect impact on an organization’s ability to create, preserve or erode economic, environmental and social value for itself, its stakeholders and society at large.”
https://www.globalreporting.org/reporting/guidelines-online/TechnicalProtocol/Pages/MaterialityInTheContextOfTheGRIReportingFramework.aspx
48
The GRI offers a 4-step process for defining material aspects
The GRI’s 5-Step Reporting Process 4. Prepare to disclose specific standard disclosures
49
Identify a list of aspects and topics that have the potential to be material
The GRI’s 5-Step Reporting Process 4. Prepare to disclose specific standard disclosures
International Norms
and Standards Ratings NGOs/Academics/Expert
Bodies Your activities
50
For each identified aspect, determine where the impact occurs – internally (G4-20) or externally (G4-21)?
Determine the geographical boundary– in what regions does the organization have an impact?
The GRI’s 5-Step Reporting Process 4. Prepare to disclose specific standard disclosures
51
The GRI’s 5-Step Reporting Process 4. Prepare to disclose specific standard disclosures
52
For each aspect identified, consider the impact on stakeholders, and the impact
on the organization.
Y-axis:
What is the degree of stakeholder interest?
X-axis:
Can the aspect have an impact on the organization from a financial, operational, strategic, reputational or regulatory perspective?
What is the likelihood and potential severity of the impact?
What is the level of coverage for each aspect?
The GRI’s 5-Step Reporting Process 4. Prepare to disclose specific standard disclosures
53
The GRI’s 5-Step Reporting Process 4. Prepare to disclose specific standard disclosures
54
The GRI’s 5-Step Reporting Process 4. Prepare to disclose specific standard disclosures
Level of Coverage
Once you have identified the material aspects you need to determine level of coverage.
Level of coverage refers to the amount of prominence, amount of data and narrative description disclosed by an organization about an aspect.
Factors include: priority, boundary, data availability.
Organizations should disclose when information presented does not cover the full boundary identified
55
The GRI’s 5-Step Reporting Process 4. Prepare to disclose specific standard disclosures
Core Comprehensive
General Standard Disclosures
34 out of 58 All 58
Core Comprehensive
Specific Standard Disclosures
DMAs For material aspects only For material aspects only
Indicators At least one per material aspect
All indicators for material aspects
Sector specific disclosures
Required if available for the sector and if material
Required if available for the sector and if material
Review of disclosure requirements:
56
Ensure that the list of material aspects present a reasonable and balanced picture of the
organization’s positive and negative impacts
Apply the ‘completeness’ and ‘stakeholder inclusiveness’ principles
Obtain executive sign-off
Determine what material aspects have data already available. Prepare systems to collect data.
The GRI’s 5-Step Reporting Process 4. Prepare to disclose specific standard disclosures
1. • Obtain an overview
2. • Choose the preferred ‘in accordance’ option
3. • Prepare to disclose general standard
disclosures
4. • Prepare to disclose specific standard
disclosures
The GRI’s 5-Step Reporting Process
5. • Prepare the sustainability report
58
The GRI’s 5-Step Reporting Process 5. Prepare the sustainability report
A GRI content index directs the reader to where the disclosure is reported – sustainability
report, website, annual report, etc.
A GRI report must state an ‘in accordance’ option and include a GRI content index to support the declaration
59
The GRI’s 5-Step Reporting Process 5. Prepare the sustainability report
GRI recommends the use of external assurance, but it is not a
requirement to be ‘in accordance’ with either the core or comprehensive option
The “+” has been eliminated
60
The GRI’s 5-Step Reporting Process 5. Prepare the sustainability report
Organizations are not required to submit their sustainability report to the GRI
Organizations may register its sustainability report (including non-GRI reports)
with the GRI in order to be included in the GRI’s Sustainability Disclosure Database
Thank You
Questions & Discussion
Simon MacMahon
Global Director Advisory Services
Sustainalytics
Kathryn Morrison
Associate Analyst
Sustainalytics
Interview with Suncor Energy Q&A
BREAK
Panel Discussion
Master Class III: G4
Presented by GRI
http://vimeo.com/67809773?d96a349c52fc4f68eea46a47ccb3d360
G4 applied to Canadian context
How do we scale it up?
GRI presenters: Mike Wallace & Marjella Alma
Panelists: Bob Willard, sustainability author and expert, The Sustainability Advantage Denise Esdon, Partner Ernst & Young Canada; GRI Board of Directors, Chairwoman GRI’s Technical Advisory Committee Helle Bank Jorgensen, Special Advisor UN Global Compact; B-Accountability Valerie Chort, Partner, National Leader Sustainability, Deloitte Canada, G4 Campaign Sponsor
Agenda
Public & Private Regulation
Harmonization & Integration
Supply chain & Procurement
Sustainability - Mega trends
Regulatory trends
"More governments are making sustainability reporting mandatory.“
In 2006, 58 percent of policies were mandatory; now, more than two thirds (72 percent) of the 180 policies in the 45 reviewed countries are mandatory.
What’s happening with the neighbors?
Stock exchange activity
May 2010 January 2011
• GRI G4 & Other Initiatives:
• OECD MNE Guidelines
• UNGC Principles
• UN Guiding Principles on Business and Human Rights
• GHG: CDP, Climate Registry, WRI, ISO
• GRI G4 & Integrated Reporting
Harmonization in G4
Harmonization: other initiatives
Where?
Legend, links to OECD/UNGC
Harmonization: GHG
Where?
GHG disclosures
* G4 WG with CDP & Climate
Registry
* Aligned with WRI & ISO 14064
Harmonization: other initiatives
Where? Linkage tables in G4
• GRI & Other Initiatives:
• OECD MNE Guidelines
• UNGC Principles
• UN Guiding Principles on Business and Human Rights
• GRI & Integrated Reporting
• GRI & Supply Chain
Harmonization: Integrated Reporting
New publication
Harmonization - Integrated reporting
76
• GRI & Other Initiatives:
• OECD MNE Guidelines
• UNGC Principles
• UN Guiding Principles on Business and Human Rights
• GRI & Integrated Reporting
• GRI & Supply Chain
Supply Chain
Supply Chain – G4-12 Describe the supply chain
Supply Chain Disclosures
Overview of Supply Chain Disclosures in G4, pg 86
Supply Chain Disclosures
Public & Private Regulation
Harmonization & Integration
Supply chain & Procurement
Sustainability - Mega trends
•Learning Services Material
– G4 Bridging Module July 2013
– Standard course & Pathways I: September 2013
– SME course & Pathways II December 2013
•Reports Services - GSI
– Decision on “In accordance” checks: September 2013
– Certified Software for G4 and G4 online
Post G4 Launch - Roll out phase
Thank You
www.grifocalpointblog.org/usa www.griconference.org
82