Venue, Date

GRI Update: The Latest Trends in Sustainability Reporting Boston College CCC February 13, 2013 Atlanta, Georgia

Mike Wallace, Director Global Reporting Initiative, Focal Point USA wallace@globalreporting.org Marjella Alma, Manager External Relations Global Reporting Initiative, Focal Point USA alma@globalreporting.org

What is the current

situation?

What do we know?

•We have 1 planet

•We know it’s acreage (or is it hectares)?

•We know how much it has produced

•We know how much we’d like it to produce

What do we know?

What do we know?

• CSR - Corporate Social Responsibility

• CC - Corporate Citizenship

• SD - Sustainable Development

• ES - Environmental Sustainability

• BE - Business Ethics

• CE - Corporate Ethics

• CG - Corporate Governance

• ESG - Environmental, Social & Governance

• IR - Integrated reporting

• SV - Shared Value

• II - Impact Investing

What is GRI’s role?

GRI’s Vision & Mission

Vision

A sustainable global economy where

organizations manage their economic,

environmental, social and governance

performance and impacts responsibly and report

transparently.

Mission

To make sustainability reporting standard practice

by providing guidance and support to

organizations.

GRI Guidelines

GRI Principles:

These guide the content and quality of your

reporting.

Materiality, boundary-setting, inclusiveness,

stakeholder engagement etc.

GRI reporting elements:

1. Profile Disclosures

Strategy, About, Governance.

2. Disclosures on Management Approach

EC, EN, LA, HR, SO, PR

3. Performance Indicators

EC, EN, LA, HR, SO, PR

Sample Indicators EN 3 - Direct energy consumption by primary energy

source

LA 7 - Rates of injury, occupational diseases, lost days and

absenteeism, and number of work related fatalities by

region.

HR 6 - Operations and significant suppliers identified as

having significant risk for incidents of child labor,

and measures taken to contribute to the effective

abolition of child labor.

PR 6 - Programs for adherence to laws, standards, and

voluntary codes related to marketing communications,

including advertising, promotion, ad sponsorship.

EC 6 – Policy, practices and proportion of spending on

locally-based suppliers at significant locations.

Who is using GRI?

A Progress Report

• Reviewed 3400 companies representing the national leaders from 34 countries around the world, including the 250 largest global companies

• Ninety-five percent of the 250 largest companies in the world (G250 companies) now report on their corporate responsibility (CR) activities, two-thirds of non-reporters are based in the US.

• CR reporting has gained ground within the Top 100 companies in each of the 34 countries surveyed.

• The total number of reporting N100 companies increased by 11 percentage points, to 64 percent in 2011.

• Eighty percent of G250 and 69 percent of N100 companies are now aligning to GRI reporting standards.

October 2011

GRI Reporting in the US (2007 – 2011)

*Based on Sustainability Disclosure Database data from 4 February 2013

0

50

100

150

200

250

300

2007 2008 2009 2010 2011

Relative growth in GRI reporting in the US

’07 – ’08 ‘08 – ’09 ‘09 – ’10 ’10 – ’11

67% 21% 30% 42%

GRI Reporters

Is there measurable ROI?

Investor Coalitions • Principles for Responsible Investment (PRI) [2006]

– Currently represents over $22 Trillion in investment capital

– Close to 1000 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

Financial Market Uptake

Sustainability Performance

MSCI World & GRI 2002 to 2012

S&P 500 & GRI 2001 to 2011

GRI Reporting - Does it matter?

What are some unique

developments?

Stock Exchange Activity

May 2010 January 2011

Public Agency Uptake "More governments are making sustainability

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, GSA, etc….

• SEC

• Dodd-Frank

• CA Transparency on Trafficking &

Slavery

Recent Precedents

Supply Chain Ripple

What’s the North

American plan & how can

you help?

GRI: North American Presence

• Governance Bodies – US BoD, Advisory Group

• 6 Sector Leaders

• 100+ Organizational Stakeholders

• 6 Certified Training Partners

• GRI Master Classes/G4 workshops

• Regional Conferences

• Webinars

• (Research) projects

Increase of Network (OS & SL)

Association Activity

HELP: Reduce, Reuse, Recycle

Survey Fatigue & SMEs

Training

Customer

Suppliers

GRI Stakeholders

Regional Capacity Building Program

Sustainability Disclosure Database

GRI Benchmarking Database

database.globalreporting.org

• Depicts who

reports & to what

extent

• Provides country

& sector filtering

capabilities

• Identifies &

benchmarks

material issues

most reported

What you should know

about G4?

How the GRI network does it?

Through a “Due Process” !

BoD

Public

Comment

Period

WG BoD

Public

Comment

Period

SC +

TAC

G4 challenges • Demand for sustainability performance

information is increasing – also from regulators

• Metrics is not coherent/harmonized

• Lack of precision - leads to high reporting and verification costs

• Most reports lack material focus

• Information in pdf of other unfriendly formats

• “Integrated Reporting” is a trend

G4 Objectives

• To be user-friendly for beginners and experienced reporters

• To improve the technical quality, clearer definitions

• To align with other reporting frameworks

• To offer guidance which leads to material reports (“materiality”)

• To offer guidance on how to link the sustainability reporting and Integrated Report - aligned with IIRC

• To provide support to improve data search (XBRL)

Revisions

• Disclosure of management approach

• Governance and remuneration

• Boundary-setting (Value Chain)

• Application Levels

• Supply Chain

• Revision - topics: GHG, Anti-Corruption,

• And… material topics per sector!

Status

• GRI Working Groups have finalized their work

• Two Public Comment Periods have been succesfully completed

Next steps

• Approval by Stakeholder Council and TAC

• Approval by Board

• Release on 22 May 2013

Venue, Date

GRI CONFERENCE

22-24 May 2013, Amsterdam

Global Conference and N-A events

11 April Pre-Conference event at NYSE

21 May North American outing, seminar and cocktailparty, NYSE Euronext, Amsterdam

22-24 May Global Conference, Amsterdam

Public North-American event & networking dinner

June Post Conference events in the US

There are sponsorship opportunities

More involvement with GRI?

In addition to getting started with GRI reporting,

you can:

• Join the Organizational Stakeholder Program

• Become a US Sector Leader

• Participate in Working Groups

• Participate in Governance Structures

Venue, Date

Thank you! More information: www.globalreporting.org http://database.globalreporting.org Mike Wallace, Director Global Reporting Initiative, Focal Point USA wallace@globalreporting.org Marjella Alma, Manager External Relations Global Reporting Initiative, Focal Point USA alma@globalreporting.org