4. “To make our economy sustainable we have to relearn
everything we have learnt from the past.
That means making more from less and ensuring that
governance, strategy and sustainability are inseparable.
Integrated Reporting builds on the practice of Financial
Reporting, and Environmental, Social and Governance-
or ESG/Sustainability – Reporting, and equips companies
to strategically manage their operations, brand and
reputation to stakeholders and be better prepared to
manage any risk that may compromise the long-term
sustainability of the business”
Professor Mervyn King, Chairman of the GRI
5. An integrated report ….
The core concepts revolve around an “inclusive”
approach and “integrated” reporting to provide a
holistic and forward looking picture of the reporting
organisation to the multitude of stakeholders who are
impacted by and who in turn impact the reporting
organisation.
6. Key considerations:
• Integrated reporting….
– Is the evolution of sustainability reporting from a
“nice to have” to a “need to have” basis
– Is communicating the business strategy and
processes which exist or are to be implemented to
manage both financial and sustainability issues
– Is a journey and progressively needs to cover the
multiple needs of the different user types
– Requires the development of a framework to
ensure all reporting requirements are being met.
Source: KPMG – Integrated Reporting – Understanding the requirements - 2011
7. Reporting Progress
Sustainability Report
Integrated Report
Annual Report
• Financial • Lots of issues • Core elements
Results • Lots of that
• Compliance stakeholders contribute to
Statutory • Stakeholder core value
Information based creation
• Shareholders • Most material
based to value
creation for
stakeholders
• Stakeholder
based
Source: Next Generation Consultants – www.nextgeneration.co.za
8. What this means….
• This change requires not only
new skills and competencies
but also a new mind shift
about fundamentally different
communication strategies
• This new era of Corporate
Reporting focuses on enabling
stakeholders to make
informed assessments as
opposed to companies telling
their (one-sided) story
• It requires integrated strategic
communication strategies that
considers, allows and
encourages stakeholders to
influence business strategy
9. New era of Responsibility -
Transparency/ Accountability / Comparability
• Principles of Reporting
– Materiality
– Inclusiveness
– Completeness
– Balance
– Comparability
– Accuracy
– Timeliness
– Clarity
– Reliability
– Transparency
– Accountability
10. Where to start
• Assessing the enterprise’s baseline
economical, environmental and
social performance – more
specifically impact and risks
• Analysing corporate management
and accountability structures and
systems to manage material risks
• Conducting a materiality analysis
of risks and opportunities
• Confirming the most material
issues with stakeholders
– This information then defines the
baseline for an organisation’s own
roadmap to sustainability
11. Facilities Managers have the
ability to significantly influence
sustainability outcomes in a
wide range of activities such as
building design, planning and
construction, waste
management, environmental
management, purchasing, and
building and grounds
maintenance.
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12. IMPLICATIONS FOR FACILITIES
MANAGERS
The economics of green buildings, once defined in
simplified, cost of construction terms, now factor into a
much more complex economic framework. In this
framework, corporate financial accounting practices are
called-on to place greater emphasis on expenditures
related to energy and utilities, and they are measured
alongside the carbon footprint of enterprise
organisations. One of the most critical areas of focus for
these organisations is their facilities, and it is through
strong emphasis on sustainable operations, energy
efficiency, and green building practices that some of
the world’s largest companies are improving their
environmental performance, expanding their profits
and influencing partners and competitors.
13. Role and Responsibilities
The Responsibility:
• First, facility managers play an
important role in delivering
sustainable performance.
This includes facility
performance, staff
management, purchasing and
waste management.
• Second, facility managers will
be involved in gathering the
performance information
related to facilities in both the
environmental and social
performance sections of the
reports.
14. At the bottom line of corporate
sustainability reporting lay the
nexus between carbon output and
operations costs. As companies use
less energy, extract fewer
resources, and manage tighter
operational waste streams, they
emit less CO2 and spend less.
Innovation in buildings and facilities
is at the centre of this.
15. Sustainability and • While the heart of any green building
project is minimizing the impact that
Facilities
the built environment has on the
Management natural environment, green buildings
also offer healthy, productive
workspaces that cost less to operate
and maintain than conventional
buildings
• Typical issues facility managers should
consider are:
– Reduced Costs Through Energy
Efficiency
– Water Efficiency Savings
– Savvy Waste Management
– Increased Occupant Health and
Productivity
16. • Helps identify opportunities for saving energy,
water, materials, and money.
• Helps identify opportunities for waste minimization
and reuse.
• Helps identify and address risks, potentially lowering
Value of sustainable facility costs.
facilities management • Adds rigor to internal data gathering and information
– Internal Operational systems (including environmental management
systems) to ensure facilities have the baseline
Benefits information necessary to measure and drive
continuous improvement in their operations.
• Facilitates opportunities to benchmark
environmental and social performance against other
entities.
• Promotes organisational learning by making linkages
across typically independent functions within a
facility more apparent, such as finance, quality
control, procurement, facilities, environmental and
safety compliance, etc.
• Opens value-generating internal conversations that
would not otherwise occur.
17. • Helps strengthen partnerships and build trust with
Value of sustainable local communities, regulators, suppliers and
facilities customers.
• Supports proactive engagement with regulators.
management – • Supports supply-chain performance reporting
External Stakeholder expectations.
Benefits • Positions a facility to take advantage of
performance-focused, regulatory approaches.
• Sharpens management’s ability to assess a facility's
positive and negative impacts on the environment
and society.
• Provides advance warning of potential liabilities and
performance problems, and highlights “triple
bottom line” opportunities.
• Helps a company achieve external value from its
environmental management system.
• Assist with overall organisational sustainability
reporting processes.
18. Case Study 1 - Walmart
• Wal-Mart has made
– 1) High performance construction the centrepiece of
new superstores and
– 2) Through the incorporation of high efficiency
lighting, and
– 3) Enhanced building features, has reduced electricity
consumption and claimed improved environmental
performance.
– 4) By instituting energy and carbon guidelines for
suppliers, Wal-Mart tightly controls the carbon
footprint downstream to its suppliers’ manufacturing
bases
– 5) And it has influenced green building retrofits and
large-scale facility improvements outside of the
organisation.
• Wal-Mart is a key example of the new economic framework
in its full glory – that there exists a correlation between
environmental sustainability and increased share value for
the investors.
19. Case Study 2 – LA’s Staples Centre
• Staples Centre – Owned by AEG – home to
LA Lakers and LA Clippers
• The vision –
– To “sustain a culture of environmental
stewardship – reducing and recycling
waste, fighting global warming, and
educating our guests and employees”
• The goal –
– To have 100 % of its facilities and venues
include environmental messaging and
information by 2020.
• The Sustainability Report –
– Leading the way in the sports, facility
management, and live entertainment
industries. AEG’s sustainability report
covers the broad array of impacts and
strategies, including energy and
climate, water, purchasing, and recycling
and waste.
20. Case Study 3 – Palazzo Hotel Vegas
• Energy Efficiency
– Energy-efficient lighting and air
conditioning (representing savings of
10,100 megawatt hours [mwh] of
electricity — enough to power more
than 700 homes annually)
– Lighting power demand reduced by two-
thirds in the guest room tower of 3,066
suites
– Solar pool heating (annual savings of
340,000 therms of natural gas —
enough natural gas to power a city bus
for 1.02 million miles)
• Waste reduction
– Landfill deposits reduced by 72%
• Water conservation
– Overall water increased efficiency
resulting in annual savings of 33.3
million gallons
21. Assisting you with Sustainability Reporting
Refer to hand out/ worksheet
22. In summary:
Reporting is not an end in itself. Even
good reporting does not necessarily
result in improved sustainability.
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23. Thank You
Questions
Please note:
This presentation is part of a larger body of research and knowledge.
For more information:
www.nextgeneration.co.za
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