1. Sustainability Reporting Trends Sustainability Reporting TrendsAutomotive SectorJune 2011Mike WallaceDirector, Focal Point USAGlobal Reporting Initiativewallace@globalreporting.org+1 212 339 0356

2. What’s the problem?

3. Comes in all shapes & sizes CSR - Corporate Social Responsibility SD - Sustainable Development ES - Environmental Sustainability BE - Business Ethics CE - Corporate Ethics CG - Corporate Governance ESG - Environmental, Social & Governance IR - Integrated reporting What is your “Footprint”?

4. Who cares?

5. Increasing Stakeholders and Demand Modern Due Diligence

6. What’s a solution?

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

8. Global Reporting Initiative Non-profit, originated in United States in 1997 Reputable, respected, credible multi-stakeholder approach Many more reporters have made reference to the Guidelines. www.globalreporting.org

10. What are we seeing?

15. GM

16. P&G

17. Sunoco

18. 586 first-time reporters in 2010.G2 G3

19. GRI Reports by Region 2010*

20. Who are some of these reporters?

21. GRI Reports Listhttp://www.globalreporting.org/GRIReports/GRIReportsList/

22. GRI Reporters (North American Sample)

23. Where do we find a strong business case?

24. As a buyer, what information do you expect?When you buy a house, a car, a product or service . . . What information do you deserve? Is it useful & comparable?

25. 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

26. Signatories to the PRI (US)800+ international signatories PARTIAL LIST OF ASSET OWNERS (200): AFL-CIO Reserve Fund / AFL-CIO Staff Retirement Plan CalPERS / CalSTRS Connecticut Retirement Plans and Trust Funds (CRPTF) General Board of Pension and Health Benefits United Methodist Church Illinois State Board of Investments Los Angeles County Employees Retirement Association (LACERA) Maryland State Retirement and Pension System New York City Employees Retirement System / New York State Local Retirement System SEIU Pension Plans Master Trust State Universities Retirement System of Illinois Teachers' Retirement System of the City of New York Universal Health Care Foundation of Connecticut

28. Capital Group International

29. Clear Bridge Advisors

30. MFS Investment Management

31. Principal Global Investors

32. T. Rowe Price

34. Can any of this really be measured? How would you do this?

35. ESG Analysis of Tech Sector X Updated 2010

36. Technology Hardware Technology Software & Services

38. Energy Consumption

39. Human Rights

40. Policies

41. Board Make-UpBuilt around GRI

42. ESG Disclosure Score

43. Environmental Criteria

44. Social & Governance Criteria

45. Bloomberg Survey “With over 300,000 users, the Bloomberg Professional service provides a great opportunity and platform for you to share information with current and potential investors concerning your Sustainability or Corporate Social Responsibility program.” “Our survey is based on the guiding principles of the GRI framework.”

46. So what?

47. NASDAQ OMX Sustainability Index

48. Dow Jones – Ind. Avg. vs. SI Source: Bloomberg

49. Bloomberg – Reporters vs. Non

50. What about the automotive sector?

51. Chrysler in dates 1998: Chrysler and its subsidiaries entered into a partnership dubbed a "merger of equals" with German-based Daimler-Benz AG, creating the combined entity DaimlerChrysler AG Daimler subsequently acquired Chrysler 2007: DaimlerChrysler announced the sale of 80.1% of Chrysler Group to American private equity firm Cerberus Capital Management 2009: Chrysler Group LLC emerged from a Chapter 11 reorganization bankruptcy and was sold to the Italianautomaker Fiat 2011: Fiat bought out the remaining U.S. Treasury’s stake in Chrysler for $500 million increasing its ownership of the automaker to 52%. BOTH FIAT & DAIMLER ARE CURRENTLY A GRI REPORTER

52. DAIMLER Reporting

53. DAIMLER Reporting http://sustainability.daimler.com/daimler/annual/2011/nb/English/pdf/002_GRI_ENG.pdf

54. GRI Index

56. Environmental

57. Labor Practices and Decent Work

58. Human Rights

59. Society

61. FIAT Reporting Sustainability Report

64. Environmental performance indicator

65. Social performance indicator

66. Employment

67. Human Rights

68. Society

70. WHAT ABOUT THE CUSTOMERS?

71. Chrysler supply chain

72. ADAC-Non GRI Reporter

73. FORD Reporting http://corporate.ford.com/microsites/sustainability-report-2009-10/default

74. FORD Reporting http://corporate.ford.com/microsites/sustainability-report-2009-10/gri

77. Environmental

78. Labor Practices and Decent Work

79. Human Rights

80. Society

82. Atlas-Non GRI Reporter

83. BOSCH Reporting http://www.bosch.com/en/com/sustainability/report/gri_index/gri-index.html

84. CREATIVE FOAM-Non GRI Reporter

85. Johnson Controls Reporting

87. Environmental

89. Society

92. Organizational profile

93. Report Parameters

94. Governance, Commitments & Engagement

96. Environmental disclosure

97. Labor practices and decent work

98. Human rights

99. Society

100. Product ResponsibilityProduct Responsibility

101. Product responsibility: GE

102. GAS-Non GRI Reporter

103. SMR-Non GRI Reporter

104. SMR: Costumers Served

105. TRW-Non GRI Reporter

106. Industry Associations

107. FLEXTRONICS-Non GRI Reporter

108. “Autos” at Goldman Sachs Goldman Sachs 2010

109. ESG in the Automotive Market Table as of 2010

110. What is next?

112. Human Rights

113. Environmental

114. Labor Practices and Decent Work

115. Product Responsibility

117. How else can you find value? Government Uptake Supply Chain Financial Markets, Private Equity & Exchanges Integrated Reporting G4 Development

119. 65 percent of the standards are classified as mandatory, the rest are considered voluntary

120. United States

121. WH CEQ - EO 13514

122. USPS, US Army, etc….

123. GSA

124. Department of State

126. Mainstream Uptake May 2010 January 2011

127. International Integrated Reporting Committee (IIRC) http://theiirc.org

128. Early Adopters of Integrated Reporting

129. What about G4?