usgbc greenbuild oct 2011
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Sustainability Reporting Trends
Sustainability Reporting y p gTrendsOctober 2011
Mike WallaceDirector, Focal Point USA
Venue, Date
Global Reporting [email protected]+1 212 339 0356+1 212 339 0356
Range of Terminologyg gy• CSR - Corporate Social Responsibility• CC - Corporate Citizenshipp p• SD - Sustainable Development• ES - Environmental Sustainability• BE - Business Ethics • CE - Corporate Ethics
CG C t G• CG - Corporate Governance• ESG - Environmental, Social & Governance• IR Integrated reporting• IR - Integrated reporting
What is your “Footprint”?What is your Footprint ?
Increasing Stakeholders and Demand
Modern DDue
Diligence
GRI’s Vision & Mission
Vision A sustainable global economy where organizationsA sustainable global economy where organizations manage their economic, environmental, social and governance performance and impacts responsibly g p p p yand report transparently.
Mi iMissionTo make sustainability reporting standard practice by providing guidance and support to organizationsproviding guidance and support to organizations.
The GRI GuidelinesEnvironmental• EN 3 - Direct energy consumption by primary
energy sourceLaborLabor• 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 takenProduct ResponsibilityProduct Responsibility• PR 6 - Programs for adherence to laws, standards,
and voluntary codes related to marketing communications, including advertising, promotion, ad sponsorshipad sponsorship.
Economic• EC 4 – Significant financial assistance received
from government.
Wh th R t ?Who are these Reporters?
GRI Reporting Trends1818
1600
1800
2000Year # of
reportsGrowth rate
1999 11
US Reporters in 1999•Bristol-Myers Squibb•GM
1116
1491
1200
1400
1600
2000 44 300%
2001 122 177%
2002 139 14%
•GM•P&G•Sunoco
709800
10002003 166 20%
2004 274 65%
2005 373 36%
2006 516 38%
139 166
274373
516
200
400
6002006 516 38%
2007 709 37%
2008 1116 58%
2009 1491 34%
11 44122 139 166
0
200
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
2010 1818 22%
586 first-time reporters in 2010
G2 G3
GRI Reports by Region 2010*
O i Af iOceania4%
Africa3%
Europe
Northern America
14%Europe
45%
Latin America14%
Asia20%
14%
20%
GRI Reports by Sector 2010*300
250
300
150
200
50
100
0
50
GRI Reports Listhttp://www.globalreporting.org/GRIReports/GRIReportsList/
GRI Reporters (North American Sample)( p )
What so special about a a so spec a abou aGRI Report?
Johnson Controls Reporting
GRI IndexHighlights:
• Economic
• Environmental
L b P ti d D t• Labor Practices and DecentWork
• Human Rights• Human Rights
• Society
• Product Responsibility
Wh ll ?Who really cares?
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– 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
Environmental Criteria - BloombergCompanyNames
Environmental Disclosure
Score
Total Energy Consumption
(Mwh)
Total GHG Emission(Th Tonnes)
Water Consumption(Thousands of cubic
meters)
Total Waste(Thousands of metric
tons)
2010 2009 2010 2009 2010 2009 2010 2009 2010 2009
Apple ‐‐‐ 12.40 ‐‐‐ n/a ‐‐‐ 9542.00 ‐‐‐ n/a ‐‐‐ n/a
CA Inc n/a n/a ‐‐‐ ‐‐‐ n/a n/a ‐‐‐ ‐‐‐ ‐‐‐ ‐‐‐CA, Inc. n/a n/a ‐‐‐ ‐‐‐ n/a n/a ‐‐‐ ‐‐‐ ‐‐‐ ‐‐‐
Dell 37.98 40.31 676.00 619.90 366.19 406.25 1596.00 1683.00 52.61 100.00
EMC ‐‐‐ 54.26 ‐‐‐ 932.51 ‐‐‐ 386.26 ‐‐‐ ‐‐‐ ‐‐‐ ‐‐‐
Fujitsu 55.04 55.04 6638.90 7713.89 273.00 428.00 23106.00 24569.00 32.44 29.71
HP ‐‐‐ 44.19 ‐‐‐ 4046.00 ‐‐‐ 1951.00 ‐‐‐ 7647.00 ‐‐‐ 124.48
Intel ‐‐‐ 46.51 ‐‐‐ 5110.00 ‐‐‐ n/a ‐‐‐ 30379.32 ‐‐‐ 44.48
IBM ‐‐‐ 41.09 ‐‐‐ 6323.06 ‐‐‐ n/a ‐‐‐ ‐‐‐ ‐‐‐ 87.33
Microsoft 11.63 n/a ‐‐‐ ‐‐‐ ‐‐‐ ‐‐‐ ‐‐‐ ‐‐‐ ‐‐‐ ‐‐‐
Toshiba 53.49 56.59 15398.33 15856.11 3078.00 3435.00 52930.00 55800.00 2610.00 291.00
Social & Governance Criteria - Bloomberg Company Social Disclosure Score Governance Disclosure scoreCompany
NameSocial Disclosure Score Governance Disclosure score
2010
2009
% Employees Unionized
Community Spending
(Mn $) 2010
2009
% IndependentDirectors
% Women on Board
Scor
e2
Scor
e 2 ( $)
Scor
e2
Scor
e 2
2010 2009 2010 2009 2010 2009 2010 2009
Apple ‐‐‐ 8.77 ‐‐‐ ‐‐‐ ‐‐‐ ‐‐‐ 51.79 ‐‐‐ 85.71 ‐‐‐ ‐‐‐Apple
CA, Inc. 3.51 3.51 ‐‐‐ ‐‐‐ n/a n/a 46.43 46.43 88.89 90.00 22.22 20.00
Dell 29.82 38.60 ‐‐‐ ‐‐‐ 27.43 40.89 51.79 57.14 81.82 83.33 ‐‐‐ ‐‐‐
EMC ‐‐‐ 42.11 ‐‐‐ 0.00 ‐‐‐ ‐‐‐ ‐‐‐ 66.07 ‐‐‐ 82.00 ‐‐‐ 9.00
Fujitsu 47.37 45.61 46.97 50.35 50.00 20.00 57.14 57.14 30.00 30.00 10.00 0.00
HP ‐‐‐ 43.86 ‐‐‐ ‐‐‐ n/a 52.20 ‐‐‐ 57.14 ‐‐‐ 90.91 ‐‐‐ 18.19
I t l 50 88 n/a 100 00 75 00 90 91 27 00Intel ‐‐‐ 50.88 ‐‐‐ ‐‐‐ n/a 100.00 ‐‐‐ 75.00 ‐‐‐ 90.91 ‐‐‐ 27.00
IBM ‐‐‐ 40.35 ‐‐‐ ‐‐‐ n/a 185.90 ‐‐‐ 51.79 ‐‐‐ 92.86 ‐‐‐ 21.42
Microsoft 36.84 14.04 0.00 0.00 687.50 516.90 57.14 46.43 78.00 80.00 22.22 20.00
T hib 36 84 36 84 189 00 3000 00 53 57 51 79 28 57 28 57 0 00 0 00Toshiba 36.84 36.84 ‐‐‐ ‐‐‐ 189.00 3000.00 53.57 51.79 28.57 28.57 0.00 0.00
I th ROI?Is there ROI?
Bloomberg – Reporters vs. Non
Sustainability PerformanceSource: Bloomberg
Sustainability PerformanceGRI Reporters Presence:
• 95% of the Dow Jones Sustainability Index
78% f th FTSE4G d• 78% of the FTSE4Good
• 70% of the Global 100• 70% of the Global 100
• 70% of the NASDAQ OMX CRD Sustainability Index
H d GRI h l ?How does GRI help?
GRI Developments & Trends
• Government Uptake
• Supply Chain
• Financial Markets
• G4 Development
Global Regulatory Review"M t ki t i bilit"More governments are making sustainability
reporting mandatory.“
• 142 regulatory instruments addressing• 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
TrainingTraining
Suppliers
GRI Stakeholders
Mainstream Uptake
May 2010 January 2011May 2010 January 2011
Continuous Improvement:Continuous Improvement:Sector SupplementsSec o Supp e e s
&G4 Development
Sector SupplementsAvailable: Under Development: Pilot Version:
Electric Utilities
Financial Services
Airport Operators
Construction & Real
Automotive
Logistics and
Food Processing
Estate
Event Organizers
Transportation
Public Agency
Mining & Metals Media Telecommunications
NGO Oil & Gas Apparel and Footwear
Construction & Real Estate Sector SupplementSector Supplement
•Alstria REIT-AG, Germany•APG All Pensions Group, The Netherlands •Arup, United Kingdom
•Hindustan Construction Company Limited, India •International Labor Organization (ILO),Arup, United Kingdom
•Bloomberg, United Kingdom •British Property Federation, United Kingdom B ilding and Wood Workers’ International
International Labor Organization (ILO), Switzerland •Landcom, Australia •Lend Lease, Australia O ford Properties Gro p Canada•Building and Wood Workers’ International,
Switzerland •Cebu Holdings, Philippines •Centre for Science and Environment, New
•Oxford Properties Group, Canada •ProLogis, United States of America •REALPac, Canada •The Energy and Resource Institute
Dehli, India •Ceres, United States of America •Citycon, Finland •Engineers Against Poverty United
gy(TERI), India •UK Green Building Council, United Kingdom •United Nations Environment Programme•Engineers Against Poverty, United
Kingdom •Essar Investments Limited, India •Hermes, United Kingdom
•United Nations Environment Programme (UNEP), France •University of Arizona, United States of America •University of Melbourne, Australia
G4 Development Process
Consensus Based Approach:Consensus Based Approach:• Call for Sustainability Reporting Topics (closed)• Registration for Public Comment gPeriod (closed)• Open Public Comment Period (90-day - through Nov. 24, 2011)
Thank you
Mike WallaceDirector, Focal Point USAGlobal Reporting InitiativeGlobal Reporting [email protected]+1 212 339 0356Twitter: M A WallaceTwitter: M_A_WallaceLinked In: http://www.linkedin.com/in/mikewallace
Venue, Date