This document summarizes the growth and trends in sustainability reporting using the Global Reporting Initiative (GRI) guidelines. It notes that 80% of large global companies and 69% of large companies in selected countries now use the GRI guidelines. The number of known GRI-based reports grew 16% from 2010 to 2011. However, reporting is still dominated by Europe and there are challenges in improving reporting in areas of weak governance. The document discusses how sustainability reporting can help with issues like risk management, stakeholder engagement, innovation, and access to capital and markets. Challenges include increasing the number and quality of reports as well as addressing performance disclosure in weak governance states.
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Are Reporting Standards & Guides Really Effective?-Mr. Douglas Kativu
1. Douglas Kativu, FP South Africa
Calabar, Cross River State 21062013
Integrating and Communicating
Sustainability and Responsibility
2. “We cannot talk of growth when millions are left behind”
Kofi Annan
“… it is essential that African countries
ensure that growth is as inclusive as
possible and not follow China’s
prioritization of growth over development
which has brought huge wealth inequality
and environmental problems”
Gao Xiping, President and Chairman of
China Investment Corporation
4. • Secretariat
• FPs- Brazil; Australia; China; India; USA; SA
• Governance bodies- BoD; SC; TAC
• Organizational Stakeholders
• Governmental Advisory Group
• Certified Training & Data Partners
• Strategic Alliances
GRI: A network organization
5. “ What you can’t measure, you
cannot manage. What you can’t
manage, you cannot change.”
measuring, disclosing & being accountable to SHs for ESG
performance
Peter Drucker
Writer, professor and management
consultant
9. Sustainability reporting trends
KPMG Survey 2011
Calabar, Cross River 21062013
• 80% of the G250 and 69% of the N100 companies
use GRI’s Sustainability Reporting Guidelines
10. Business case of Sustainability Reporting
Reference: KPMG International Survey of Corporate Responsibility Reporting 2011
(34 countries)
11. 2010 & 2011 GRI Reporting by Region
2010 2011
Africa
3% Oceania
5%
Northern
America
13%
Latin
America
15%
Asia
20%
Europe
44%
Africa
5%
Oceania
4%
Latin
America
14%
Northern
America
14%
Asia
18%
Europe
45%
n =
1971
n =
2291
*Based on Sustainability Disclosure Database data from 7 January 2013
97% of the registered 2010 and 2011 GRI reporting organizations in Africa are from
South Africa. Organizations from Egypt, Kenya, Mauritius, and Nigeria constitute the
remaining 3% of the 2011 reporters*.
12. What is the impact of sustainability reporting to
sustainable development and poverty alleviation?
13. • Improved governance and leadership
• Management of risk
• Stakeholder engagement and inclusiveness- social license, expectations, opportunity
• Integration, Innovation (products & services) - shared value
• Innovation – resource and operational efficiencies
• Access to markets and capital (investor confidence)
• Labour practices- productivity & skills retention
COMPETITIVENESS
Value in reporting process
14. Challenges. Opportunities.
• More Reports: 4000 /45000 publicly traded companies /82000
multinational companies
• Better Reporting: focus on materiality: what matters, where it matters.
•
• Performance and disclosure in weak governance states
• Global vs granular/ local scale
• Shaping the local drivers for reporting
Leadership
Public policy – voluntary to compliance
Role of markets
Calabar, Cross River State 21062013
15. Sustainability Reporting requirements/recommendations on the rise
Market regulators: Sustainability Reporting listing requirements/recommendations/guidance for certain companies in place
Governments: Sustainability Reporting policy/regulation for certain companies and/or certain KPIs in place
Market regulators & Governments Sustainability Reporting requirements/recommendations in place
Policy initiatives worldwide
EU