presentation of why sustainability reporting presented at cii karnataka

7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka

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Sustainability ReportingCII Karnataka

Latha Sankarnarayan

COO, Green Evangelist


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Sustainable Development

25 years of a

definition that forced

to the world to think

how we live

The commission was

established by the UN

to rally nations and

pursue sustainabilitytogether

Sustainable development

is development that meets

the needs of the presentwithout compromising theability of futuregenerations to meet their

own needs.- Brundtland Commission


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But why for Businesses?

With great power comesgreat responsibility


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An Apple can solve the Euro Crisis

At the Apple shareholders

meeting, one investor

turned to the company's

CEO and suggested that

Apple buy out Greece for

the cash it had in hand

USD 97 Billion


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Apple - Power

Courtesy mbaonline.com


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Along come the questions

From investors, shareholders, employees, the

NGOs in China, contract workers

Where did Apple get so much money from?

Where will it go?

How much are they giving back to society?

How many jobs does it translate to its home

country USA?

Is iphone metaphor for innovation coming at

the cost of Chinese workers?


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Questions raised, answers few

Apple shoots down shareholder proposals:

Asked Apple to establish a sustainability

report

the other called for Apple to establish a board-

of-directors sustainability committee

Most valued company but not most

responsible?


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Dow Jones Sustainability Index (DJSI) 2010

DJSI World Index DJSI Europe Index DJSI Eurozone Index1. Adidas - Germany2. BMW AG - Germany3. Coca-Cola Co USA4. Christian Dior S.A. - France5. Halliburton Co. USA6. Hewlett Packard Co. USA7. Hyundai S Korea8. Intel Corp. USA9. Mitsubishi Corp. Japan10. McDonalds Corp. USA11. Nokia Corp. - Finland12. Panasonic Corp. Japan

13. Rolls-Royce Group PLC UK14. Samsung Electronics SKorea

15. Siemens AG - Germany16. Starbucks Corp. USA17. Toshiba Corp. Japan18. Unilever - UK

19. AB Volvo - Sweden20. Woodside Petroleum - AUS

1. Adidas AG - Germany2. Air France - KLM - France3. Astrazeneca PLC UK4. BMW AG- Germany5. Coca-Cola Hellenic Bottling

Co. S.A. Greece6. Deutsche Bank AG - GER7. European Aeronautic

Defence & Space - France8. LOral S.A. France9. LVMH Moet Hennessy Louis

Vuitton France

10. Nestle S.A. Switzerland11. Siemens - Germany12. ThyssenKrupp AG -

Germany13. Volkswagen AG Germany14. AB Volvo Sweden15. Wolters Kluwer N.V.

Netherlands16. Xstrata PLC UK

1. Abertis InfraestructurasSpain

2. Adidas AG - Germany3. ArcelorMittal - France4. BMW AG Germany5. Christian Dior S.A. France6. Enel S.p.A. Italy7. Finmeccanica S.p.A. Italy8. Fortum Oyj Finland9. Indra Sistemas S.A. Spain10. Infineon Technologies GER11. LeGrand S.A. France

12. Puma AG Rudolf DasslerSport Germany13. Siemens AG Germany14. Suez Environement

France15. ThyssenKrupp AG

Germany

M.I.A.: Apple


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In contrast

Samsung regularly publishes annual

sustainability report

It has a broad sustainability program focusing

on 6 areas: Talent Management, Integrity

Management, Green Management, Social

Contributions, Products and Services, and

Partner Collaboration

The Dow Jones Sustainability Index (DJSI)

annual review 2011 has named Samsung as the

worlds most sustainable technology company


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Apple vs Samsung

Does it mean Samsung is more responsible

than Apple

Probably not

However, its a qualitative statement, as Apple

certainly comes across as less TRANSPARENT

than Samsung

And, hence to stakeholder Apple appears

ambiguous


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Hence the case forSustainability Reporting


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The why of reporting - Benefits

From a Stakeholder perspective:

Makes businesses more transparent

Gauge the companys true value

Understand its tangible and intangible assests

Follow the progress of the company in non-

economic aspects

Builds trust, and enhances the corporate

reputation

Opens dialogue with the stakeholders


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The why of reporting - Benefits

From Internal Company perspective

Risk Mitigation

Being articulate helps define the strategy

Long term management plans

Benchmarking and assessment against the best,

laws and performance

Setting goals and implementation

Streamline process, increase efficiency


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Peer Pressure

Recommendation of the UN Secretary General'sHigh Level Panel on Global Sustainability

Rio+20 negotiating text -Zero Draft: A global

policy framework requiring all listed and large

private companies to consider sustainability issues

and to integrate sustainability information within

the reporting cycle.

Governmental pressure

Supply-chain pressure (e.g. PUMA)

Customer pressure (e.g. IT companies)


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IT PUTS THE HOUSE IN ORDER;WITH SYSTEMATICAND LONG-TERM VIABILITY

In a nutshell


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Different forms ofdisclosure


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Indian Disclosureperspective

Ministry of Corporate

Affairs Voluntary

guidelines

Disclose: 2.5% ofrevenues for CSR

SEBI ruling on top 100

companies as per market

capitalisation


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Global Reporting Initiative (GRI)

The contribution of GRI to sustainabledevelopment is the construction of a Reporting

Framework to help organisations to measure,

understand, improve and report on their

sustainability performance.

A GRI sustainability reporting process is an

ongoing cycle of engagement to understand,debate, measure and improve internal

processes, and to monitor and communicate

performance.


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GRI-G3

GRI-G3ECONOMIC

EconomicPerformance

Market Presence

Indirect EconomicImpacts

ENVIRONMENT

Materials

Energy

Water

Biodiversity

Emissions,

Effluents, andWaste

Products andServices

Compliance

Transport

LABOR PRACTICESAND DECENTWORK

Employment

Labor

ManagementRelations

OccupationalHealth and Safety

Training andEducation

Diversity andEqual Opportunity

HUMAN RIGHTS

Investment andProcurementPractices

Non-discrimination

Freedom ofAssociation andCollectiveBargaining

Abolition of ChildLabor

Prevention ofForced andCompulsory Labor

Complaints andGrievancePractices

Security Practices

Indigenous Rights

SOCIETY

Community

Corruption

Public Policy

Anti-CompetitiveBehavior

Compliance

PRODUCTRESPONSIBILITY

Customer Healthand Safety

Product andService Labelling

MarketingCommunications

Customer Privacy

Compliance


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GRI reporting process

Prepare Connect

Define

Monitor Communicate

A GRI sustainability process is an ongoing cycleof engagement to understand, debate,

measure ad improve internal processes and to

monitor and communicate performance


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Reporting phasesWho'sresponsible

Who'sinvolved

DeadlineBudgetneeded

Internal kick off meeting to identifyorganizational goals and impacts and agree onreporting process

Map and prioritize stakeholders then consultthem

Combine two inputs (internal and externalengagement) and write recommendation

Approve indicators to monitor, report on andfuture goals

Check where you are (use of self assessmenttools)

Change business procedures and managementsystems if necessary

Monitor and control the indicators

Define communication method and plan

Come to conclusions (both negative andpositive) and approve conclusions to bepublished

Write the report, communicate and distributethe report

Overall project coordinator

Overall decision makers


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Content of a GRI report

Strategy and Profile:

What sets the overall context of understanding organizational

performance such as its strategy, profile and governance

Management Approach: How an organisation addressed a given set of topics in order to

provide context for understanding performance in a specific

area

Performance Indicators: Indicators that elicit comparable information on the economic,

environmental and social performance of the organisation


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Application Levels


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What are application levels?

The Application Levels indicate the extent towhich the G3 Guidelines have been applied in

sustainability reporting. They communicate which

part of the Reporting Framework has been

addressed - which set of disclosures, varying withthe different Levels. Application Levels reflect the

degree of transparency in reporting.

The Levels do not give an opinion on the

sustainability performance of the reportingorganization, the quality of the report, or on

formal compliance with the G3 Guidelines


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Materiality

Definition of materiality

Stakeholder Identification

Issues identification


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Stakeholder Inclusiveness

Identification

Dialogue

Engagement

Issues


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Investors

CommunityGovt./

Regulators

CustomersEmployeesSuppliers/Vendo

rs/Partners

Industry

Association

Stakeholders


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Stakeholder Mapping


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GRI-G3 index
http://www.globalreporting.org/http://localhost/var/www/apps/conversion/current/GRI/G3_QuickReferenceSheet.pdfhttp://localhost/var/www/apps/conversion/current/GRI/G3_QuickReferenceSheet.pdfhttp://www.globalreporting.org/http://www.globalreporting.org/http://www.globalreporting.org/


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About Green Evangelist

Influencing business

karma


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An introduction

GREEN EVANGELIST

A sustainability consulting company

Provides effective strategies and solutions that

enable your business to become sustainable

through

o Stakeholder engagement, risk prediction, capitalizing

opportunities and enabling transparent business

operations.

Started in Feb 2009 and influencing business

karma in small but effective ways


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Our clientele

SterliteIndustries

Dr. Reddys

Ultratech

Cement

Tata Tinplate

Hindalco

Nasscom

Sesa Goa

Mind tree

Akshayakalpa


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Recognition

Outlook Money

The Hindu

Businessline

Yourstory.in,

a Network 18

company

Bangalore Mirror
http://119.82.71.56/article.aspx?265533http://www.thehindubusinessline.com/todays-paper/article1014753.ece?viewImage=1http://www.thehindubusinessline.com/todays-paper/article1014753.ece?viewImage=1http://yourstory.in/2010/07/sejal-sheth-and-latha-sankarnarayan-founders-green-evangelist-influencing-business-karma/http://yourstory.in/2010/07/sejal-sheth-and-latha-sankarnarayan-founders-green-evangelist-influencing-business-karma/http://yourstory.in/2010/07/sejal-sheth-and-latha-sankarnarayan-founders-green-evangelist-influencing-business-karma/http://goo.gl/Ui1SOhttp://goo.gl/Ui1SOhttp://yourstory.in/2010/07/sejal-sheth-and-latha-sankarnarayan-founders-green-evangelist-influencing-business-karma/http://yourstory.in/2010/07/sejal-sheth-and-latha-sankarnarayan-founders-green-evangelist-influencing-business-karma/http://yourstory.in/2010/07/sejal-sheth-and-latha-sankarnarayan-founders-green-evangelist-influencing-business-karma/http://yourstory.in/2010/07/sejal-sheth-and-latha-sankarnarayan-founders-green-evangelist-influencing-business-karma/http://www.thehindubusinessline.com/todays-paper/article1014753.ece?viewImage=1http://www.thehindubusinessline.com/todays-paper/article1014753.ece?viewImage=1http://119.82.71.56/article.aspx?265533


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Associations

Enact Sustainable Strategies, Sweden

Swedens leading sustainability consulting firm

Clientele include AstraZeneca, Volvo, Vattefall,

Trelleborg, Pernod Ricard, Heidelberg CementGroup, Swedish Institute amongst others


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Our areas of focus in Sustainability

SustainabilityAssessment

Strategic Solutions

Reporting

Aligning Social initiativeswith Business

Sustainable Training

Workshops on specificissues

Employee/stakeholdertraining and awareness

Sustainability

Communications

StakeholderEngagement Framework

Stakeholder dialogue

Industry Wide StudyResearch

Benchmarking and BestPractices

Supply chain study

Influencing Business Karma


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Thank You

Latha Sankarnarayan

URL: www.greenevangelist.com

Email:[email protected]
http://www.greenevangelist.com/http://www.greenevangelist.com/

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