1. Sustainability Reporting Trends
Sustainability Reporting
y p g
Trends
October 2011
Mike Wallace
Director, Focal Point USA
Global Reporting Initiative
Venue, Date wallace@globalreporting.org
+1 212 339 0356

2. Range of Terminology
g gy
• CSR - Corporate Social Responsibility
• CC - Corporate Citizenship
p p
• SD - Sustainable Development
• ES - Environmental Sustainability
• BE - Business Ethics
• CE - Corporate Ethics
• CG -CCorporate Governance
t G
• ESG - Environmental, Social & Governance
• IR - Integrated reporting
What is your “Footprint”?
Footprint ?

3. Increasing Stakeholders and Demand
Modern
Due
Diligence

4. GRI’s Vision & Mission
Vision
A sustainable global economy where organizations
manage their economic, environmental, social and
g
governance p performance and impacts responsibly
p p y
and report transparently.
Mission
Mi i
To make sustainability reporting standard practice by
providing guidance and support to organizations
organizations.

5. 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.
sponsorship
Economic
• EC 4 – Significant financial assistance received
from government.

6. Who
Wh are these Reporters?
th R t ?

7. GRI Reporting Trends
2000
Year # of Growth
1818
1800
US Reporters in 1999 reports rate
•Bristol-Myers Squibb
1999 11
1600 •GM 1491
2000 44 300%
1400
•P&G
2001 122 177%
•Sunoco
1200 2002 139 14%
1116
2003 166 20%
1000
2004 274 65%
800 2005 373 36%
709
2006 516 38%
600 516 2007 709 37%
373 2008 1116 58%
400
274
2009 1491 34%
200 139 166
122
2010 1818 22%
44
11
0 586 first-time
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
reporters in 2010
G2 G3

8. GRI Reports by Region 2010*
O
Oceania
i Af i
Africa
4% 3%
Northern
America
14%
Europe
45%
Latin America
14%
Asia
20%

9. GRI Reports by Sector 2010*
300
250
200
150
100
50
0

10. GRI Reports List
http://www.globalreporting.org/GRIReports/GRIReportsList/

11. GRI Reporters
(North American Sample)
( p )

12. What so spec a abou a
a special about
GRI Report?

13. Johnson Controls Reporting

14. GRI Index
Highlights:
• Economic
• Environmental
• L b P ti
Labor Practices and D
d Decent
t
Work
• Human Rights
• Society
• Product Responsibility

15. Who
Wh really cares?
ll ?

16. 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
• 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

17. Environmental Criteria - Bloomberg
Company Environmental Total Energy Total GHG Emission Water Consumption Total Waste
Names Disclosure Consumption (Th Tonnes) (Thousands of cubic (Thousands of metric
Score (Mwh) meters) tons)
2010 2009 2010 2009 2010 2009 2010 2009 2010 2009
Apple ‐‐‐ 12.40 ‐‐‐ n/a ‐‐‐ 9542.00 ‐‐‐ n/a ‐‐‐ n/a
CA, Inc.
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

18. Social & Governance Criteria - Bloomberg
Company Social Disclosure Score Governance Disclosure score
Name
% Employees Community % Independent % Women on
Score 2010
Score 2009
Score 2010
Score 2009
Unionized Spending Directors Board
(
(Mn $)
2
2
2
2
2010 2009 2010 2009 2010 2009 2010 2009
Apple ‐‐‐ 8.77 ‐‐‐ ‐‐‐ ‐‐‐ ‐‐‐ 51.79 ‐‐‐ 85.71 ‐‐‐ ‐‐‐
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
Intel
I t l ‐‐‐ 50.88
50 88 ‐‐‐ ‐‐‐ n/a 100.00
100 00 ‐‐‐ 75.00
75 00 ‐‐‐ 90.91
90 91 ‐‐‐ 27.00
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
Toshiba
T hib 36.84
36 84 36.84
36 84 ‐‐‐ ‐‐‐ 189.00
189 00 3000.00
3000 00 53.57
53 57 51.79
51 79 28.57
28 57 28.57
28 57 0.00
0 00 0.00
0 00

19. Is th
I there ROI?

20. Bloomberg – Reporters vs. Non

21. Sustainability Performance
Source: Bloomberg

22. Sustainability Performance
GRI Reporters Presence:
• 95% of the Dow Jones Sustainability Index
• 78% of th FTSE4G d
f the FTSE4Good
• 70% of the Global 100
• 70% of the NASDAQ OMX CRD
Sustainability Index

23. How d
H does GRI h l ?
help?

24. GRI Developments & Trends
• Government Uptake
• Supply Chain
• Financial Markets
• G4 Development

25. Global Regulatory Review
"More governments are making sustainability
"M t ki t i bilit
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, etc….
• GSA
• Department of State
• SEC

26. Supply Chain Ripple
Customer
Training
Suppliers
GRI Stakeholders

27. Mainstream Uptake
May 2010
May 2010 January 2011
January 2011

28. Continuous Improvement:
Sec o Supplements
Sector Supp e e s
&
G4 Development

29. Sector Supplements
Available: Under Development: Pilot Version:
Electric Utilities Airport Operators Automotive
Financial Services Construction & Real Logistics and
Estate Transportation
Food Processing Event Organizers Public Agency
Mining & Metals Media Telecommunications
NGO Oil & Gas Apparel and Footwear

30. Construction & Real Estate
Sector Supplement
•Alstria REIT-AG, Germany •Hindustan Construction Company Limited,
•APG All Pensions Group, The Netherlands India
•Arup, United Kingdom
Arup, •International Labor Organization (ILO),
International
•Bloomberg, United Kingdom Switzerland
•British Property Federation, United •Landcom, Australia
Kingdom •Lend Lease, Australia
•Building and Wood Workers’ International
B ilding International, •Oxford Properties Gro p Canada
O ford Group,
Switzerland •ProLogis, United States of America
•Cebu Holdings, Philippines •REALPac, Canada
•Centre for Science and Environment, New •The Energy and Resource Institute
gy
Dehli, India (TERI), India
•Ceres, United States of America •UK Green Building Council, United
•Citycon, Finland Kingdom
•Engineers Against Poverty United
Poverty, •United Nations Environment Programme
Kingdom (UNEP), France
•Essar Investments Limited, India •University of Arizona, United States of
•Hermes, United Kingdom America
•University of Melbourne, Australia

31. G4 Development Process
Consensus Based Approach:
• Call for Sustainability Reporting
Topics (closed)
• Registration for Public Comment
g
Period (closed)
• Open Public Comment Period (90-
day - through Nov. 24, 2011)

32. Thank you
Mike Wallace
Director, Focal Point USA
Global Reporting Initiative
wallace@globalreporting.org
+1 212 339 0356
Twitter: M A Wallace
M_A_Wallace
Linked In:
http://www.linkedin.com/in/mikewallace
Venue, Date