Venue, Date

Sustainability Reporting Trends

“Game Changing Developments”

September 2012

Mike Wallace

Director, Focal Point USA

Global Reporting Initiative

wallace@globalreporting.org

@M_A_Wallace

Why would anyone want

to voluntarily report?

- Respond to Stakeholders

- Demonstrate Leadership

- Document ROI

Increasing Stakeholders and Demand

Modern

Due

Diligence

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

Non-Financial Reporting

Of all these stakeholders,

who is doing the most

significant due diligence?

- Financial Market Activity

- Customer Interests

- Regulatory Developments

Financial Market Activity

Shareholder Initiatives & Coalitions

• Principles for Responsible Investment (PRI) [2006] – Currently represents over $30 Trillion in investment capital

– 1000+ signatories

• Investor Network on Climate Risk (INCR) [2003] – Currently represents over $10 Trillion in investment capital

– 100+ members

• Carbon Disclosure Project (CDP) [2002] – Currently represents over $71 Trillion in investment capital

– act on behalf of 550+ 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

Who else is looking?

Stock Exchange Activity

May 2010 January 2011

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

Bloomberg ESG Peer Comparison

Customer Interests

Supply Chain Developments

• Sept 2011 – GSA

• Oct 2011 – MS

• Jan 2012 - Apple

Supply Chain Developments

Training

Customer

Suppliers

GRI Stakeholders

Regulatory Developments

Regulatory Developments "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

Demonstrating Leadership

Performance Recognition

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

Document ROI

Performance Over Time

MSCI World & GRI 2002 to 2012

S&P 500 & GRI 2001 to 2011

What you should know

about GRI?

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.

GRI: Global Network Organization

*Business

*Civil Society

Governments

*Financial markets

*Labor

*Mediating institutions

Academia

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 Global Harmonization

Association Activity

What are we seeing?

Corporate Sustainability:

A Progress Report • Reviewed 3400 companies representing the national leaders

from 34 countries around the world, including the 250 largest global companies

• 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.

• CR reporting has gained ground within the Top 100 companies in each of the 34 countries surveyed.

• The total number of reporting N100 companies increased by 11 percentage points, to 64 percent in 2011.

• Eighty percent of G250 and 69 percent of N100 companies are now aligning to GRI reporting standards.

October 2011

Country Level Specifics USA – 9th place from 74% up to 83% in 3 years

2008 versus 2011 of N100 companies

2

9

US Reporting Trends (Absolute figures)

US GRI data partner

71 119

141 187

273

23

47

2007 2008 2009 2010 2011

Sustainability Reports in the USA

GRI G3 + G3.1 GRI reference Non-GRI sustainability report

46% growth in absolute

number of GRI reports (w/

index) 2010 - 2011

And counting!!

* Data from the Sustainability Disclosure Database as of 12 April 2012

23 125 446

87

40

35

21 112 415

170

167

41

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Africa Asia Europe Latin America NorthernAmerica

Oceania

Not assured

Externally assured

Data Integrity

Growing International Trends “Integrated Reporting”

87%

13%

2010

Notintegrated

Integrated

79%

21%

2011

*Sustainability Disclosure Database data from 1 February 2012

American GRI reporters

GRI Sector Leaders:

What’s on the horizon –

G4?

GRI – Due Process

BoD

Public

Comment

Period

WG BoD

Public

Comment

Period

SC +

TAC

G4 - Stepping Stone Towards Integrated Reporting

Mai

nst

ream

ing

Sust

ain

abili

ty D

iscl

osu

re

Integrated Reporting

Sustainability Reporting

G4

Other paths to mainstreaming

View Forward G4 timeline - Working Groups and 2nd PCP

We are here!

MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN

MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN

2011 2012 2013

2011 2012 2013

Text Revision / Editing Task Force

Preparatory StagePublic Comment

Period 1Public Comment

Period 2

Working GroupsMeet

Final Edit LAUNCHGovernance Bodies give Final Vote

WorkingGroupsFormed

Working GroupsMeet

We are here

G4 Working Groups • Supply Chain Disclosure • Disclosure on Management

Approach

• Governance & Remuneration • Boundary • Application Level

G4 PCP 1 - Participants

Business 29%

Civil Society Organization

9%

Financial Markets &

Information Users

4%

Labor 1%

Mediating Institution

57%

AFRICA 3%

ASIA 17%

EUROPE 41%

LATIN AMERICA

19%

NORTHERN AMERICA

15%

OCEANIA 5%

Constituency

Breakdown

Regional Breakdown

Total 1834

More involvement with GRI?

In addition to getting started with GRI reporting,

you can:

• Join the Organizational Stakeholder Program

• Become a US Sector Leader

• Participate in Working Groups

• Participate in Governance Structures

Cipriani Wall Street, 55 Wall Street, New York, NYOctober 2-3, 2012

www.COMMITForum.com

Event brought to you by:

Venue, Date

Mike Wallace

Director, Focal Point USA

Global Reporting Initiative

wallace@globalreporting.org

Twitter: M_A_Wallace

Linked In: http://www.linkedin.com/in/mikewallace

Thank you