Official Newswire Of the 2013 - CPA Canada · Official Newswire Of the 2013 ... about an item is...

Official Newswire Of the 2013

cPa caNada cOrPOrate rePOrtiNg awards

2013 cPa caNada cOrPOrate rePOrtiNg awards

Judges’ BOOk PriNted By rr dONNelley

1

Now in their 62nd year, the corporate reporting

awards celebrate the “best of the best” in corporate

reporting. this year’s winners stand out among an elite

group.

there are some titans in the winners’ circle again

this year — companies that have long established

themselves for excellence in corporate reporting. we

are also celebrating some companies that challenged

themselves to join the ranks of our 2013 cra winners.

crown organization entrants also earned high praise

from the judges, a recognition that relevant and useful

financial reporting is as critical in the public sector as

in the private. the applause is not reserved solely for

the award winners.

By entering the corporate reporting awards, entrants

send a strong message about leadership, transparency

and the desire to build trust with investors. their

disclosures are assessed against extremely rigorous

judging criteria. the experts who sit on the

independent panel of judges search for elements

that set the bar higher and higher every year.

for this is the key to continued excellence: notching

the bar upwards.

long gone are the days when organizations could rise

to the top with high-quality financial statements alone.

in an international capital market, investors literally

have an entire world of investment choices. to stand

out, corporate reporting must tell the reader about the

company’s strategy, the risks affecting it, the results

of applying that strategy in terms of both financial

performance and sustainability matters, and the

governance practices that provide oversight. all this

needs to be communicated in a way that is relevant,

frank and comprehensive, and leverages print and

web-based distribution formats.

telling that story effectively in an environment of

ever-changing and increasingly complex standards

and regulation continues to demand more and more

innovation.

responding to concerns about the length and

complexity of reporting, for example, some companies

are revisiting their presentation formats and better

organizing financial statement content by integrating

discussions of accounting policies, and judgments and

estimates with the discussion of the related financial

statement line item so that all the relevant information

about an item is available in one place.

another result of increased complexity in financial

reporting seems to be more non-gaaP measures.

the best of these provide additional insights into a

company’s performance, for example a measure of

free cash flow that indicates a company’s capacity

to generate discretionary cash for common equity

investors. the lack of standard definitions for non-

gaaP measures is seen by many as a weakness,

however, so companies are challenged here to ensure

that the presentation and accompanying disclosure of

these measures addresses critics’ complaints of poor

comparability between companies and in some cases

inconsistent reporting from period to period.

integrated reporting is another concept that is

gaining some traction in the corporate reporting

marketplace. recognizing the increasing importance

of comprehensive and concise reporting, the

international integrated reporting council (iirc)

is developing an integrated reporting framework

with the intent of encouraging companies to prepare

a concise “integrated report” that explains how an

organization’s strategy, governance, performance and

prospects lead to the creation of value. leaders in

reporting are currently experimenting with how best

to communicate this information, and a pilot program

is providing the iirc with insights from its participants.

the demand for excellence will continue to be pursued

alongside the emergence of complex new standards

and regulations. in 2013, for example, annual reports

will see most of the first annual reporting of several

new international financial reporting standards

dealing with consolidations, joint arrangements

and fair value measurement.

the companies that enter the corporate reporting

awards send a strong signal that they are up for the

reporting challenges before them. My congratulations

to all of you.

The Bar Continues to Risekevin dancey, fcPa, fca

President and ceO, cPa canada

THE CPA CANADA CORPORATE REPORTING AWARDS 2013

THANKS TO OUR SPONSORS

cPa canada thanks the corporate reporting awards sponsors for promoting excellence in business reporting.

thank you all for recognizing the relevance of integrity and transparency in reporting. the combined effort helps make canada’s capital markets stronger.

Bronze sponsor:

Official Newswire of the

2013 cPa canada corporate reporting awards:

gold sponsors: Magazine sponsor:

3

the awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

about the Judging groups. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

the 2013 corporate reporting awards Panel of Judges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

governance, reporting and sustainability resources to enhance the quality and effectiveness of canadian organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

awards of excellence for large and small federal crown corporationslarge federal crown corporations — cBc/radio-canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

small federal crown corporations — defence construction canada. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

awards of excellence for Provincial crown corporationsProvincial crown corporations — sasktel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

awards of excellence for corporate reporting: industry sector awards Overall award of excellence in corporate reporting — telus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

clean technology — capstone infrastructure corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

communications and Media — telus. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29

consumer Products — canadian tire corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

diversified industries — stantec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

financial services — royal Bank of canada. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

industrials and energy — Bombardier inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Mining — Potashcorp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39

Oil & gas — suncor energy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

utilities & Pipelines/real estate — enbridge inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43

small cap/Venture — catalyst Paper corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45

awards of excellence in Judging categories financial reporting - Best Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48

award of excellence in financial reporting — Potashcorp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

honourable Mention in financial reporting — telus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

the Board’s role in strategic Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54

award of excellence in corporate governance — td Bank group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

honourable Mention in corporate governance — royal Bank of canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63

electronic, social and Mobility reporting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .64

award of excellence in electronic disclosure — Potashcorp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

honourable Mention in electronic disclosure — gOldcOrP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69

sustaining Momentum: leading the way in sustainability reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70

award of excellence in sustainable development reporting — suncor energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

honourable Mention in sustainable development reporting — telus. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

list of entries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

Table of Contents

5

The Awardsthe corporate reporting awards encourage participants to raise the bar for excellence in corporate

reporting. the following awards are presented to tsX companies and crown corporations that

stand out as the best among the best.

CROWN CORPORATION AWARDSawards of excellence are presented to federal and provincial crown corporations for financial

reporting.

INDUSTRY SECTOR AWARDS industry sector awards are given to companies that display excellence within their industry

categories. this year the industry categories include: clean technology; communications and

Media; consumer Products; diversified industries; financial services; industrials and energy, Mining,

Oil and gas; small cap/Venture; and real estate/utilities and Pipelines.

these awards are given to tsX issuers who receive the highest scores in four judging categories.

OVERALL AWARD OF EXCELLENCEamong the 10 industry sector winners, one is selected as the recipient of the 2013 Overall award of

excellence.

JUDGING CATEGORY AWARDSawards of excellence and honourable Mentions are given to reports deemed to be the best, across

all industry sectors, in each of the four judging categories:

financial reporting: the company’s annual report has the unique ability to communicate the past

year’s results within the context of the corporate strategies, competitive strengths and industry

fundamentals.

corporate governance disclosure: demonstrating excellence in corporate governance reporting

requires disclosures that are comprehensive, organized and go above and beyond what is required

by canadian securities administrators requirements.

electronic disclosure: as the growth of data analytics continues, corporate websites need to be

extremely well-organized, contain as much relevant information as possible, and be presented in

such a way that data is easily accessible to users.

sustainable development reporting: economic, social and environmental performance

measurement and reporting is a growing area in the corporate reporting field. communicating

sustainability issues and performance in a contextualized, readable and credible manner is what

sets apart the leaders in this category.


About the Judging groups

Chartered Professional Accountants of Canada cPa canada is the national organization established to support unification of the canadian ac-

counting profession under the chartered Professional accountant (cPa) designation. it was cre-

ated by the canadian institute of chartered accountants (cica) and the society of Management

accountants of canada (cMa canada) to provide services to all cPa, ca, cMa and cga account-

ing bodies that have unified or are committed to unification. as part of the unification effort, cPa

canada and the certified general accountants association of canada (cga-canada) are working

toward integrating their operations. unification will enhance the influence, relevance and contri-

bution of the canadian accounting profession both at home and internationally.

The Canadian Investor Relations Institutethe canadian investor relations institute (ciri) is a professional, not-for-profit association of

executives responsible for communication between public corporations, investors and the finan-

cial community. ciri contributes to the transparency and integrity of the canadian capital market

by advancing the practice of investor relations, the professional competency of its members and

the stature of the profession. with 600 members and four chapters across the country, ciri is the

voice of ir in canada. for further information, please visit www.ciri.org.

CFA Society Toronto cfa society toronto supports the professional and business development of more than 8,000

cfa charterholders in toronto, making it the second-largest member society in the world. it

provides members with a local perspective on a global designation, including: educational pro-

grams, sponsored events, job postings, quarterly newsletters, a comprehensive affinity program

and networking opportunities. a not-for-profit organization, cfa society toronto is affiliated with

cfa institute, the global body that administers the chartered financial analyst curriculum and

sets voluntary, ethics-based performance-reporting standards for the investment industry. cfa

society toronto’s members are leaders in ethics in the financial community. for more information,

please refer to www.cfatoronto.ca.

7

the 2013 CorporAte reporting AwArds pAnel of Judges a multi-disciplinary panel of experts plays an integral role in the corporate reporting awards

program.

cPa canada thanks the 2013 judges for their hard work and dedication in reviewing the 63 public

companies and crown organizations that entered the competition this year. their volunteer

contribution elevates the overall quality of corporate reporting in canada.

special thanks to our overall judging coordinator, Bill Buchanan, fcPa, fca, and the lead judges

from our partners at deloitte, Pwc, ernst & young, cfa society toronto and canadian investor

relations institute.

leAd Judges

crown corporations

Jon Dervin,

cPa, ca, cPa (ill.) ernst & young llP

Jim Keates,

cPa, ca, MBa Principal

cPa canada

Bill Buchanan, fcPa, fcacPa canada

Jane Macielciri

Ashley Smithsenior administrator

cfa society toronto

financial reporting

electronic disclosure

Gerald Trites, fca, cPa, cisa Zorba research inc.

corporate governance disclosure

Mike Harris, fcPa, cia, icd.dPartner

Pwc

sustainability development reporting

Valerie ChortPartner and National leader,

sustainability,

deloitte

Pamela Campagnoni, cPa, ca, cPa (ill.) Principal

cPa canada


Judgesrhylin BailieVice-President, communications

and investor relations

J. Proust & associates

christopher Barltrop

fcPa, fca retired Partner

BdO canada llP

Matthew Batterton

cPa, ca ernst & young llP

Jackie Beith, cPa, ca Ontario lottery and gaming corp.

carolyn Beniukassociate

Pwc

etienne Boucher-labelle

cPa, caernst & young llP

lorie Brièrethe works design

communications ltd.

Mark Burnes, cPa, cadirector

Pwc

daniel callejasassociate

Pwc

andre charbonneau

cPa, ca, cPa (ill.)ernst & young llP

kate charletonconsultant, climate change

and sustainability services

ernst & young llP

courtney craibPresident

craib design &

communications inc.

catherine croftonVice-President, sales

Q4 web systems inc.

Jennifer d’aoustManager, climate change


ernst & young llP

John desjardins, caPartner

kPMg llP

kim drenner, Mscassociate climate change


ernst & young llP

Jacob dwhytiesenior analyst

Nera economic

consulting

tracy ewingconsultant

Johanna field, cPa, cagrant thornton llP

gerry fields, llB, Jdcornerstone group

alex fisher, cPa, cacPa canada

dana fountainconsultant, sustainability

deloitte

kelly freeman, cMadirector, investor relations

Potashcorp

wesley gee, Msc, aieMathe works design

communications ltd.

suzie gignac


Bruce grantier

Basc, MBa, cfa, caia, icd.d Managing director, airth inc.

founder, investorlit

Meghan harrissenior Manager and western Market

leader, climate change and

sustainability services

ernst & young llP

Nancy hoo, cPa, cafour seasons hotels and resorts

emily huang, cMa, MBateam lead

Pwc

deepak Jaswal, llBassociate

Pwc

sheryl JoyceVice-President, Marketing

and communications

Q4 web systems inc.

aaron kabucis, cfatMX equicom

Bill kessels, cPa, caernst & young llP

9

Philip kovenPrincipal

koven & associates

craig Mass, caivanhoe energy

Jeff Mazzer, cPa, caOntario lottery

and gaming corp.

carolyn Mcgill, MBa

stephen Mcintyre,


abel Medrano, ciateam lead

Pwc

allison Metzak, Maassociate

women in capital Markets

Jason Moore, cPa, ca

Jesse Moran, MBa senior associate

Pwc

kathryn Morrisonsustainalytics

dirushan Naidu, cPa, caernst & young llP

eva Oloumi, MBaassociate

Pwc

andrea Orzech, cPa, cacanadian tire corp. ltd.

Jessica Pavan, MBaassociate

Pwc

andrew Perro, rgdsenior art director

craib design &

communications inc.

stephanie Poon, cfa, llMscotiabank

Natalia Pereskokova, MBadirector

Pwc

answerd ramcharan, cfainvestment industry

regulatory Organization of canada

suzette ramcharanst. andrew goldfields ltd.

christine rhodes, cisaManager, climate change


ernst & young llP

stephen rigassio, MBaassociate

Pwc

agnieszka rumassociate csr adviser

canadian Business for

social responsibility

todd scaletta

MBa, fcMa, c.dir. cPa canada

Mark schmeer, Ma, cfa

Benjamin setosenior associate

Pwc

ryan shacklock, ca, ctPManager, investor relations

Potashcorp

susan sheehan

MBa, csr-P leapfrog sustainability inc.

Nick sladeassociate

Pwc

Peter smalleyconsultant

the delphi group

Joe sollysenior Manager, sustainability

deloitte

Bill stait, cMasenior analyst, investor relations,

cenovus energy inc.

william swirsky

fcPa, fca, icd.d corporate director

susan todd, cPa, caPrincipal

solice works inc.

Jennifer Vienofidelity investments

alan willis, cPa, caalan willis & associates

Viren wong, cPa, cfa, frM Portfolio Manager

full cycle energy investment

Management

elaine wyattPrincipal

wyatt strategic communications

Otto yung, cfaBluenorth capital

2013 CPA Canada Corporate Reporting Award Winners:

Full disclosures.Unquestionable clarity.Open lines of communication. Toronto Stock Exchange and TSX Venture Exchangeapplaud today’s award winners and are proud to count them among our listed companies.

Congratulations!

TMX, Toronto Stock Exchange, TSX, TSX Venture Exchange, and Exchange with Us are trademarks of TSX Inc.

Toronto Stock Exchange (TSX) and TSX Venture Exchange are part of TMX Group…equities, derivatives, fi xed income, energy, data and over 160-years of know-how under one roof.

SIGNATURESPONSOR

PROUDSPONSOR

SIGNATURESPONSOR

PROUDSPONSOR

tmx.com/exchange

11

Governance, reporting and sustainability resources to enhance the quality and effectiveness of Canadian organizationsgord Beal, cPa, ca, M.ed

Vice-President, research, guidance and support, cPa canada

today’s accounting profession is recognized for its commitment to

the highest standards for financial reporting, auditing and assurance

standards, risk management and organizational effectiveness.

Professional accountants foster confidence in canadian business

and contribute to the health and sustainability of canada’s capital

markets and economy through their leadership and use of best

practices in business and finance.

the chartered Professional accountants of canada (cPa canada)

and its legacy designations have demonstrated a long-standing

commitment to excellence in corporate, private, public sector

and not-for-profit reporting and governance. an example of

this commitment is our presentation each year of the corporate

reporting awards.

cPa canada represents the canadian accounting profession

both nationally and internationally. we are a founding member

of the international federation of accountants (ifac) and the

global accounting alliance (gaa). we also support the standard-

setting process through funding and staff resources to facilitate

independent standard-setting by canada’s accounting and audit and

assurance standards boards.

when dealing with issues and best practices for publicly traded or

private entities, and public sector or not-for-profits, cPa canada

utilizes advisory boards, committees and task forces that provide

forums for disseminating and sharing knowledge and views on

the measurement, reporting and governance of organizational

2013 CPA Canada Corporate Reporting Award Winners:

Full disclosures.Unquestionable clarity.Open lines of communication. Toronto Stock Exchange and TSX Venture Exchangeapplaud today’s award winners and are proud to count them among our listed companies.

Congratulations!

TMX, Toronto Stock Exchange, TSX, TSX Venture Exchange, and Exchange with Us are trademarks of TSX Inc.

Toronto Stock Exchange (TSX) and TSX Venture Exchange are part of TMX Group…equities, derivatives, fi xed income, energy, data and over 160-years of know-how under one roof.

SIGNATURESPONSOR

PROUDSPONSOR

SIGNATURESPONSOR

PROUDSPONSOR

tmx.com/exchange


performance. the boards, committees and task forces consist

of association members who represent small, medium and large

organizations across industry sectors, along with other key

stakeholders such as regulators, standard-setters, academics,

analysts, directors, and investors. these volunteer experts help

develop and shape cPa canada’s research, thought leadership

and guidance and support resources, which are accessible to both

members and other stakeholder organizations from our website.

cPa canada’s library of financial and performance reporting, audit

and assurance, governance and sustainability resources is geared

towards a diverse audience, including chief financial officers,

auditors, directors, controllers and other senior management. it is

presented in a number of formats, including executive summaries,

research findings, guides, frameworks, case studies, toolkits, alerts

and more.

To learn more about the guidance and support resources CPA Canada offers visit our website at www.cpacanada.ca.

in our financial reporting section www.cpacanada.ca/financialreporting

you can find information on:

• international financial reporting standards

• accounting standards for Private enterprises

• Management’s discussion and analysis and other beyond-gaaP reporting

• accounting standards for Not-for-Profit Organizations

• accounting standards for Pension Plans and the Public sector

in our audit and assurance section www.cpacanada.ca/auditandassurance

you can find information on:

• canadian auditing standards

• review engagement standards

• canadian standards on Quality control

• compilation engagement standards

• Other assurance and related services standards

for resources to enhance board governance and organizational oversight for

audit committees and boards of directors of both corporate and not-for-profit

organizations visit www.cpacanada.ca/governance. two of our key resources

include “A Framework for Board Oversight of Enterprise Risk” and the series

“20 Questions Directors or Not-for-profit Directors Should Ask…” which covers

subjects directors might ask management, advisers or themselves.

as a founding member of the global reporting initiative (gri), whose

sustainability reporting guidelines are used around the world, cPa canada

provides research and resources on economic, social, and environmental

performance to capital markets and other stakeholders. for more information,

visit: www.cpacanada.ca/sustainability.

13

AWARDS OF EXCELLENCE FOR

FEDERAL CROWN CORPORATIONS

this is the seventh year that federal crown corporations have been invited to participate in the corporate reporting awards.


15

CBC/Radio-Canada

cBc/radio-canada’s annual report strikes an

ideal balance between reader engagement and

the delivery of key information.

the report presents a clear, concise and

consistent demonstration of the commitment

of senior management and the board to

implement cBc’s five-year strategic plan,

2015: Everyone, Every Way. the focus of that

strategy, mirrored in the report’s overall theme,

“More canadian, More regional, More digital”

permeates all sections.

Judges found some particularly effective

aspects of the report help set it apart, including

improved content in reporting the results of

the business as a whole; review of the key risks

facing the organization with clear explanations

of the future plans to 2015; and a more effective

use of graphics compared to peers.

Other highlights: an interactive and easy-to-

navigate web version of the annual report,

and online communications that took the

organization to another level in terms of

leveraging the use of emerging technologies

and social media.

AwArd of exCellenCe in finAnCiAl reporting

Federal Crown Corporations – Large

the report presents a clear, concise and consistent demonstration of the commitment of

senior management and the board to implement cBc’s five-year strategic plan,

2015: Everyone, Every Way.


17


Federal Crown Corporations – Small

Defence Construction Canadadefence construction canada’s annual report

celebrates its 60th anniversary serving

the department of National defence and,

more recently, communications security

establishment canada.

calling its report a very interesting read, the

judges praise defence construction canada

for the amount of relevant detail it shares in a

concise and clear fashion, while integrating the

appropriate use of pictures and stories.

By showcasing projects past and present, to

demonstrate how defence construction canada

has been serving government and industry

since 1951, the report provides readers with a

good understanding of the organization, its

history, market and industry.

the Management’s discussion and analysis

is praised for its discussion of known trends,

events, demands and uncertainties that would

affect the defence contractor’s reported

financial information and would therefore be

indicative of future performance.

the judges also praise the report for lining up

nicely with the corporate plan and for the solid

discussion of the initiatives undertaken with

regard to its five key planning themes: business

management, service delivery, people, strategic

management and leadership, corporate

governance and stakeholder relationships.

Other highlights: strategic and operational

performance indicators; discussion of risk

management, financial performance and actual

performance versus plan and deficit-reduction

action plan.

calling its report a very interesting read, the judges praise defence construction canada for

the amount of relevant detail it shares in a concise and clear fashion.


Nominations open for the CPA Canada Awards of Excellence in Public Sector Financial Management

Nominations are now being accepted for the CPA Canada Awards of Excellence in Public Sector Financial Management.

Presented annually by chartered Professional accountants of

canada (cPa canada), the program honours the exceptional work

of a federal public servant or team that excels in the field of financial

management. the program was formerly called the Award of Excellence for Comptrollership in the Public Sector.

award categories include Innovation, Financial Leadership (CFO) and Lifetime Achievement.

an independent selection committee comprised of senior public

servants and industry experts will judge and determine the 2014

award winners. the awards ceremony will be held in Ottawa in May.

award nominations can be submitted by any person within the

government of canada, as well as the general public. Nominations

close on february 7, 2014.

Visit www.cpacanada.ca/PsfMawards for nomination forms.

19

AWARD OF EXCELLENCE FOR

PROVINCIAL CROWN CORPORATIONS

this is the fourth year that provincial crown corporations have been invited to take part in the corporate reporting awards.


21


Provincial Crown Corporations

SaskTel

sasktel’s report to the Province of

saskatchewan, Connecting. Tomorrow. Today., excels on several levels.

Judges praise the focused and clear message

that is conveyed when discussing the

transformation into what is described in the

president and ceO’s message as the “telco 2.0

era.”

sasktel’s effective discourse on the future

of the communications industry, the impact

broadband technology is having on sasktel and

its competition, and the regulatory environment

in which it operates is also impressive.

with the stated aim of making saskatchewan

one of the most connected places to live in

canada firmly established, the report focuses

on key areas of long-term sustainability and

includes tables showing 2012 targets, actual

results and 2013 expected goals.

its annual Management’s discussion and

analysis provides a concise and insightful

discussion of sasktel’s operations. it includes

detailed overviews of its major business lines

and subsidiaries and also describes the core

priorities, strategic initiatives and an enterprise-

wide approach to operational and financial risk

management.

Other highlights: sasktel’s excellent

corporate governance overview, outlining in

sufficient detail its governance practices and

benchmarking against the requirements of

the corporate securities act, as well as solid

use of graphics in describing new services and

markets.

Judges praise the focused and clear message that is conveyed when discussing the

transformation into what is described in the president and ceO’s message as the

“telco 2.0 era.”


WHAT IS LISTED

Every issue off ers intelligent, authoritative and thought-provoking columns on governance, corporate fi nance, investor relations, compensation, risk and environmental aff airs. Listed’s features and special reports detail the ins and outs of strategy changes, industry and sector trends, the stories behind the year’s mergers and acquisitions and the nerve-wracking career trajectories of some of Canada’s most daring CEOs.

Exclusive to Listed is � e Director’s Chair. Governance and leadership expert David W. Anderson delivers up in-depth interviews with some of the highest-profi le directors in Canada like Charles Sirois, Steve Snyder and Purdy Crawford to name but three who have lent their views to our magazine.

You can also count on Listed to provide regular updates on market activity, career insights, relevant technology trends, management tips and a quarterly economic out-look. Our back page Insider profi le show-cases people at the centre of deals, big issues, policy debates and other matters of immediate reader interest.

To summarize, every issue provides readers with thought leadership, guidance and direction to help their companies and to elevate their careers to the next level.

If you are not already one of the more than 10,000 senior executives and directors receiving Listed, take this opportunity now and visit http://listedmag.com/subscribe.

You will be pleased you did.

Listed Magazine25 Isabella Street, Toronto, ON M4Y [email protected]

The Magazine for Canadian Listed Companies.

Listed is the only magazine in Canada written exclusively for the directors and executive leadership of Canadian public companies. Published quarterly, Listed’s award-winning content covers the most important topics relevant to our C-suite audience.

23

AWARDS OF EXCELLENCE IN CORPORATE REPORTING

INDUSTRY SECTOR AWARDS

contestants were judged within their respective industry sectors in the following areas:

• financial reporting (annual and interim)

• electronic disclosure

• corporate governance disclosure

• sustainable development reporting (may not apply to all industry sectors)

the following 10 companies ranked the highest across all of the judging categories compared to other contestants within the same industry. Out of these, one contestant was recognized as the winner of the Overall award of excellence.


25

TELUS

telus captures top honours once again this

year, winning the Overall award of excellence

in corporate reporting. this is the fourth

consecutive year the telecommunications

company has won the overall award — a very

significant achievement, given the fierce

competition for the top spot.

telus earns high praise for its financial

reporting, corporate governance disclosure and

sustainable development reporting.

its financial reporting is transparent, addressing

past achievements and future priorities

and providing full disclosure of its growth

capabilities. it is commended for weaving

the investor proposition throughout the

Management’s discussion and analysis, as it

discusses its priorities, core business strategies,

results and risk assessments. it also provides

eight years of financial and operating results.

its corporate social responsibility report

includes extensive assurance of key

performance indicators, even including

reference to water use and absenteeism, which

judges find quite rare. the company is also

commended for making a direct connection

between sustainability and business success.

telus also scores high points for its corporate

governance disclosure. Judges cite the

board’s adoption of a well-written mandate

in which it explicitly assumes responsibility

for the stewardship of the corporation. clear

information is provided pertaining to the

integrity of the chief executive officer and other

senior officers, succession planning, principal

risks of business and strategic planning process.

the website is commended for its overall

aesthetics and appeal, featuring intuitive

navigation, unique graphics and bold use of

colour, shading and white space.

telus also won the award of excellence in

the communications and Media sector and

honourable Mention in the financial reporting

and sustainable development reporting

categories.

these achievements not only serve telus and

its stakeholders well, they serve as a blue ribbon

standard for corporate reporting in canada

— an example for other public companies to

emulate.

Overall Award of Excellence in Corporate Reporting


27

AwArd of exCellenCe in CorporAte reporting

Clean Technology

Capstone Infrastructure Corporationeffective, engaging, informative and industry-

leading. those are just some of the adjectives

the judges use to describe capstone

infrastructure’s corporate reporting materials.

Judges commend the company for providing

readers with useful and relevant information

that is necessary to understand capstone’s

business, strengths, and mandate, as well as its

strategic objectives and plans to achieve them.

the annual report, interim and quarterly

disclosures, and print and electronic financial

reporting mechanisms all receive high praise.

from the first page of financial highlights in


and clear mission and investment statements,

the annual report allows investors to gain a

thorough understanding of the company, its

strategic plans, growth picture and value,

making what judges called a “compelling case”

for investing.

the goals for the year are clearly stated

and those that were not met are explained

openly. Variance explanations are to the point

and bolded, making them easy to follow.

the methods used to calculate non-gaaP

measures are clearly explained. the judges find

the financial statements and notes to be well

organized and presented in an understandable

and visually appealing way.

the judges also commend the information

provided on board management and

governance, the overall summary of the year’s

operations, accounting policy disclosures and

presentation of future accounting changes

describing these elements as informative, well

written, balanced and clearly laid out. the

annual report is lauded for its sleek design and

effective use of graphs and charts.

Judges are impressed with the strong outlook

sections and segment analysis, discussions

about risks and market fundamentals and

expectations for the coming year. the company

is commended for including performance

information dating back to 2004 to aid in

trend analysis. the scorecard presentation is

described as excellent. the nine-year financial

review and two-year quarterly information

contained in the supplementary information

help investors see the company’s short- and

long-term position.

Other highlights: access to electronic

information is quick, and the website is easy to

navigate; financial statements are downloadable

in excel; Pdfs include information on their size;

user customization and rss links are available,

as is an investor briefcase.


29


Communications and Media

TELUS

consistently on brand and on message in its

corporate governance, financial, sustainability

and environmental reporting, telus continues

to build on its legacy of excellence in business

reporting.

Proclaimed the leading light in its industry

sector once again, telus provides a

comprehensive, best-in-class annual report

that achieves the highest standards of financial

reporting. the reader is constantly engaged,

whether reading the report in print or online,

and consistently reminded of the investment

opportunity.

telus presents an unwavering focus on

transparency in addressing past achievements

and future priorities, full disclosure of its growth

capabilities and proficiency in delivering

sustainable results. segment-specific industry

highlights, performance and plans are all well

presented. combined, these elements succeed

in conveying a clear and distinct investment

proposition.

in judging both the report and website’s overall

aesthetics and appeal, the judges are equally

complimentary, noting the ease of navigation,

integration of unique graphics and bold use of

colour, shading and white space, all of which

improve readability, engaging readers from the

start and throughout.

dynamic, brand-related, friendly messaging

is apparent throughout, bringing telus’s

reputation for performance and innovation

home to readers again and again. it infuses the

company’s reporting, from the annual report’s

front-cover theme, “Putting you first,” with

its dedicated customer focus, to the section

entitled “you have questions. we have the

answers,” which features company executives

answering questions.

Positive and upbeat throughout its reporting,

telus continues to demonstrate the high

regard in which it holds its many stakeholder

communities and its ongoing commitment to

them.


31


Consumer Products

Canadian Tire Corporation

Judges describe canadian tire’s information as

detailed, insightful and thorough.

canadian tire marked an important anniversary

with the release of its 2012 annual report: 90

years as a canadian retailing icon. it’s only

fitting, then, that in both print and digital

formats the company wins high praise for the

coverage accorded its history.

canadian tire presents a solid investment

argument thanks to an excellent financial

highlights section, the overview of its

businesses (including its community-based

charitable program, Jumpstart) and discussion

of its past performance, key priorities for the

coming year and future outlook — all presented

from a strategic point of view.


(Md&a) provides a comprehensive description

of each core business segment and is

commended for its focus on key performance

indicators, and the integration of numeric and

graphical charts in the historical performance

highlights section.

complementing the Md&a, the annual financial

statements include a thorough discussion of

risks and assumptions and are considered both

readable and easy to understand. regarding

supplementary information, the judges cite the

five- and 10-year historical summaries, which

distinguish ifrs-based amounts from previous

gaaP-based amounts.

the judges are particularly impressed with

the spotlight canadian tire shines on its

strategic initiatives, or what the company

dubs its Strategic Pillars, using easy-to-follow

performance tables for 2012 and 2013. rich in

quantitative detail and tying in directly with

the Message to investors, these tables serve

to outline the company’s main objectives

and related activities, while comparing those

activities to actual performance.

Other highlights: the website’s interactive

stock calculator, which allows users to quickly

calculate how an investment in canadian tire

has grown or changed; historical price look-

up reaching back to the 1970s; access to the

current stock price with only a 20-second delay;

a stock chart that can be modified for time

and frequency; ability to compare the stock’s

performance against various indices; and an

excellent glossary of terms.


33


Diversified Industries

Stantec

stantec wins high praise from the judges for

its emphasis on integrity, transparency and

sustainability. its interactive, mobile-friendly

website is singled out as a dynamic and visually

rewarding experience.

its Message to investors is commended

for providing a clear and straightforward

description of the company’s corporate

strategy and an emphasis on values and

governance. the “why invest in stantec”

graphic is compelling.

the scorecard disclosures in the annual

Management’s discussion and analysis are

commended for providing results by practice

area set against 2012 targets. additionally, the

judges are impressed with the presentation of

2013 outlook and targets in the interim report;

analysis of growth by acquisition versus organic

growth; five-year financial summary highlights;

balance sheet components in the notes to the

annual financial statements; and an “unusually

detailed” cash-flow statement.

the supplementary information provides

governance data that includes votes for and

withheld by each director, excellent committee

reports and a proxy circular that makes full use

of charts.

stantec’s website and electronic disclosures are

described by judges as including “everything an

investor would need.” the website’s innovative

design, high-resolution images and well laid-

out and layered content hierarchy make it

easy to identify what is new and to locate key

information.

Other highlights: good search functionality, faQ

and contact pages; a “breadcrumb” trail, which

is a navigation aid that allows users to keep

track of their location on the site; content that

is written specifically for the web; and up-to-

date social media links to youtube and twitter,

among others, displayed globally in the footer.


35

Royal Bank of Canada

with the addition of this industry-sector-

specific win to its impressive awards showing,

royal Bank of canada proves yet again that the

bar can never be set too high when it comes to

transparency and accountability in corporate

governance, financial and social responsibility

reporting, and investor relations.

royal Bank of canada’s corporate reporting

materials are comprehensive and well-balanced.

royal Bank is top in class for its annual

financial statements, scorecard and electronic

disclosures, explicit reporting on how it

identifies and manages principal and emerging

risks, discussion of performance against major

financial objectives and description of its

overarching goals.

as an exemplar of what can be achieved in

maximizing the use of print and digital tools,

rBc does an important service to its diverse

stakeholders.

Overall, its reporting is factual and well

balanced, and integrates its print and digital

platforms. the annual report is interactive,

complementing the print version.

Other highlights: the website’s strong video

component; links to industry conferences

and other presentations; rss feeds; user

customization tools; ease of navigation; sort-

and-filter functions that allow users to access

historical and other information quickly

throughout the website; and a large social

media presence that extends to supporting a

dedicated investor-relations twitter account.


Financial Services


37


Industrials and Energy

Bombardier Inc.

as the only manufacturer in the world that

produces both planes and trains, Bombardier

has a wealth of information to impart to its vast

network of stakeholders, and it did so most

effectively this year.

Bombardier’s corporate and financial

disclosures, both print and web-based, are

described as clear and comprehensive. the

company is commended for the depth of

reporting, analysis in the Management’s

discussion and analysis (Md&a) of its different

lines of business, as well as the abundance of

industry and supplementary information.

Bombardier’s aptly themed annual report,

Stepping into the Future, and corporate social

responsibility (csr) report, Shaping the Future of Mobility, Responsibly, are both well put

together, well written, nicely designed and

presented. the judges commend the summary

scorecard of achievements against previously

stated goals that is included in the csr.

the company’s annual financial statements

address all required information in an easy-

to-read format, and the interim financial

statements are judged to be consistent with

the former and good on analysis. the clear

and comprehensive Md&a disclosures and

plentiful use of colourful charts and graphs

are impressive, as are the key performance

indicator (kPi) tables and list of kPi

achievements.

in terms of electronic disclosures, the website is

easy to navigate. Judges single out the share-

price tab, revealing quotes, charts and a stock

calculator as being particularly good. Judges

call the up-to-date and historical information

easily accessible as well as factual and well

balanced.

Other highlights: Bombardier’s profile, and

strategy and market documents, all of which

make its strategic plans clear.


39


Mining

PotashCorp

Potashcorp’s success in building and

sustaining a well-integrated and well-oiled

print and electronic reporting platform speaks

to its commitment to its many and diverse

stakeholders and to the power of transparency

and accountability when both are done well.

with its Message to investors, Management’s

discussion and analysis, annual financial

statements, supplementary information,

scorecard disclosure, interim reports and

earnings news releases, Potashcorp sets the

industry benchmark. it provides a credible and

understandable argument for investing in the

company.

Potashcorp’s disclosures, in their writing,

organization, presentation, clarity and overall

quality, are fair and balanced, shedding light on

all aspects of its business operations.

in so doing, the company succeeds in giving

virtually every user — from casual readers to

sophisticated investors to professional financial

analysts — tools suited to meet their needs

in understanding its past and present, and its

outlook for the future.

the company’s website features advanced

digital capabilities through its “datatool,” which

is integrated with the “MyPOt” feature. this is

an excellent example of the kind of functionality

today’s users expect when it comes to

crunching numbers. the tool, a compendium of

information about the company, enables users

to select key data points and the timeframe for

each, plus save, export and share customized

reports.

Other highlights: Potashcorp’s strength in

corporate governance, as demonstrated in the

clear management perspectives shared in video

clips featuring its ceO and cfO.


41


Oil & Gas

Suncor Energy

given the size and breadth of its operations—

from oil sands development to product

marketing under the Petro-canada brand—

suncor energy presents an overall picture of

itself as a fully integrated company.

the company is direct, open and transparent in

explaining the risks and opportunities it faces

and how it is addressing areas such as climate

change and tailings management.

the board mandate is comprehensive, including

details on the strategic planning process,

principal risks, communication policy and the

board’s access to advisors. there is specific

disclosure in a separate appendix related to

committee relationships with internal and

external auditors.

suncor’s print and online disclosures are

well written and easy to grasp. the specific

information required to understand the

entity, its investment proposition and how

it maximizes value through its integrated

approach is provided throughout.

the presentation structure is enhanced by the

table of contents gracing the annual report’s

inside cover, financial highlights on the opening

page and good use of colour, white space,

graphs and photos in the body text.

suncor is commended for the detailed

scorecard presentation, which outlines its

goals, results and targets for the coming

year; providing five years of key indicators;

its risk discussion, offering important insights

into its operations; and separation of capital

expenditures into sustaining and growth

categories.

its Management’s discussion and analysis

includes comprehensive sections on risk,

liquidity and capital investments; discusses

the strategy informing each of its business

units, their performance, key indicators and

impairments for the year, and one-time items

that impact earnings; and presents an analysis

of pricing and economic sensitivities.

Other highlights: the website’s investor relations

content; “connect with us” page linking users

with its social media channels, featuring blog

content and videos; and sophisticated use of

meta-page titles and “breadcrumb” trails, and

other innovative features.


43

Enbridge Inc.enbridge, a third-time industry sector

winner, displays impressive corporate

reporting strengths in its print and digital

communications.

enbridge’s 2013 win is a tribute to the North

american energy leader’s expertise in

conveying its corporate vision, values, operating

strengths, commitment to sustainable initiatives

and mastery of positioning. the company stays

on message by placing the most important

information — why invest in enbridge? — front

and centre.

its Message to investors is one such example,

positioning the company as a safe, reliable and

trusted partner to consumers and investors.

its forward-looking orientation, discussed in

the context of market and industry issues,

emphasizes enbridge’s growth strategy, setting

the stage for its ability to continue to improve

its performance and deliver results.

enbridge scored high marks for the clarity of

its presentation, both in the logical progression

of its story and in the continuity of design. the

Management’s discussion and analysis (Md&a)

provides a high-level overview of the company’s

business lines and performance metrics. for

each segment it balances the good news (its

objectives) with the bad (known factors that

will affect future prospects) in explaining

the strategy and rationale behind its capital

expenditures.

Overall, the content is meaningful, written in

plain language and consistent throughout.

the information disclosed is timely, reliable

and relevant in bolstering the reader’s

understanding of enbridge. colour, white space,

captions, headlines, type styles, photographs,

charts and maps are all used effectively.

the annual financial statements and notes

are well-organized and comprehensive, and

the supplementary information, supported on

enbridge’s website by an expansive investor

relations section, solidifies the investment

proposition by providing a wide array of easy-

to-find information.

the website itself is described by the judges as

“visually stunning” and “best in class.”

Other highlights: the Md&a in the interim

financial report interprets rather than reiterates

the financial statements; and the fourth-quarter

earnings news release provides a good and

balanced performance summary concerning

major developments, events and factors

relevant to forming a view of the future.


Utilities & Pipelines/Real Estate


45


Small Cap/Venture

Catalyst Paper Corporationthe good-news story told in catalyst Paper

corporation’s winning annual report, Our Tomorrow: Starts Today, is of its post-

restructuring emergence and turnaround in

2012.

recognizing that this can be a difficult story to

tell, the judges find catalyst’s annual report to

be very effective in that regard. information is

presented clearly and intuitively, aided visually

by a liberal use of colourful graphics, charts and

tables highlighting its financial performance

and other trends.

the judges consider the realistic insights

proffered about the restructuring in the

President and ceO’s Message to shareholders

and in the detailed and comprehensive

Management’s discussion and analysis (Md&a)

very compelling.

further, the Md&a section presents a thorough

discussion of market conditions, outlook

and risks; concise descriptions of capital

expenditures and key performance indicators,

as measured against the company’s stated

objectives; plus clear descriptions of each of

catalyst’s core businesses and approach to

corporate governance.

Judges are impressed by the company’s

full disclosure in the financial statements

of information related specifically to the

restructuring, accompanied by detailed notes

and a good description of how it employed

new accounting standards related to such

reorganizations.

the financials are organized and easy to read.

high marks are given for the performance

and outlook summary presented for the year

and discussion of major developments, post-

restructuring, presented in its interim report

and fourth-quarter earnings news release.

catalyst’s environmental sustainability overview

is comprehensive, focusing on various business

processes, and its coverage is supported by

detailed qualitative analysis of environmental,

social and economic issues.

Other highlights: the website is easy to access

and read on a mobile device; information

placement is intuitive; the investment

proposition is clearly set out; information

useful to potential investors includes financials,

webcasts and presentations; and site navigation

is smooth.

Congratulations to the reCipients of the

2013 Cpa Canada’s Corporate

reporting awards

We know something about winning awards, we have been honoured a few times ourselves.

We know that the hard work, the long hours, the dedication of your teams and the unswerving commitment to the highest standards of disclosure and transparency not only brought you this honour, but also the recognition from the investors and stakeholders who value your company and your dedication. Once again, congratulations…

You are the Best

The Magazine for Canadian Listed Companies

www.listedmag.com

47

AWARDS OF EXCELLENCE IN

JUDGING CATEGORIES

One award of excellence and one honourable Mention are given in each of the following four judging categories, regardless of industry sector:

• financial reporting (annual and interim)

• corporate governance disclosure

• electronic disclosure

• sustainable development reporting


Promoting and encouraging excellence in

annual reporting was the motivation behind

the inaugural corporate reporting awards

competition, started in 1951 by the canadian

institute of chartered accountants, now

chartered Professional accountants of canada

(cPa canada). speaking as someone who has

been involved in the programs for many years,

it is heartening to see the great advancements

that have been made in the ensuing years.

in the beginning the program consisted of

a review of a hard-cover annual report, a

basic document containing not much beyond

required financial statements and related

notes. Management’s discussion and analysis

was added by regulation in 1989, and several

years later this was followed by voluntary

governance and corporate responsibility

reporting. the award program responded to

these environmental changes and has now

significantly evolved to include separate

judging categories for financial reporting,

as well as disclosures concerning electronic

reporting, corporate governance and

sustainable development.

the judges involved in the financial reporting

category review the total annual financial

reporting package, including an overview look

at electronic, governance and sustainability

disclosures. the content of interim reports

and earnings news releases are also assessed.

while financial reporting continues to evolve,

the fundamental importance of transparency

and accountability never changes. these

characteristics continue to be the key

ingredients found in all award-winning reports.

the role of the annual report has changed over

the years in response to evolving regulatory

disclosure and technological advances. for

most companies, the printed annual report is

still arguably one of the single most important

sources of the information they make public.

the printed report allows the preparer to

control the structure and context of investor

messages and to present them to general-

purpose users with maximum impact.

On the other hand, most companies recognize

the unique benefits that flow from creative uses

of their websites and other electronic media.

these include immediacy and the capacity to

handle vast quantities of information, as well as

a host of technological advantages that enable

companies to tell their stories to general and

special purpose users. some leading companies

are beginning to integrate environmental, social

and governance reporting for a more complete

picture of how this enhances value.

Financial Reporting - Best Practices Bill Buchanan, fcPa, fca, is the overall judging co-ordinator and lead financial

reporting judge representing the chartered Professional accountants (cPa)

49

the financial reporting category is reviewed

by a distinguished panel of judges representing

cPa canada, the canadian investor relations

institute and investment professionals who are

members of cfa society toronto.

this year’s winner of the award of excellence

in financial reporting, Potashcorp, did an

outstanding job. shareholder value creation

and the progress of attaining corporate

goals and strategies are all extremely well

presented. the reporting package is a model of

communications excellence.

telus, this year’s honourable mention in

the financial reporting category, provides a

comprehensive annual report, achieving very

high standards in financial reporting, including

the use of eXtensible Business reporting

language (XBrl).

Potashcorp, telus, and the other industry

sector award winners also employ a number of

other best practices that caught the attention

of our financial reporting judges.

here are the top five trends our judges noted

this year in the top-ranking annual/financial

reports:

1. The Investment Proposition

Many annual reports have a section that

describes the company and why an

individual should invest in it. the winning

companies design hard copy and online

reports to constantly remind readers of the

investment opportunity.

2. Financial Statements Virtually all financial statements are very

well organized and presented. in-depth

discussion of critical accounting judgments

and estimates is well covered. the top

ranking companies differentiate judgments

from estimates and provide understandable

explanations. recent and coming

accounting pronouncements are disclosed,

with winning companies disclosing ranges

of likely impacts. risk management

disclosures are comprehensively covered,

are usually well balanced, and explain

the board’s role in policy formulation and

monitoring in this area.

3. Scorecard Disclosure

winning companies provide well-articulated

and clear performance assessments

against specific targets (achieved versus

not achieved). they also provide specific

measurable information on future goals,

objectives and targets.

4. Electronic Disclosure

excellence in business and financial

reporting on the websites requires

continuous innovation. reports have to be

extremely well written, engaging, interesting

and, of course, visually appealing. the

winning companies routinely provide htMl

links, financial statements in excel format,

file sizes and download times. Only a very

few make financial information available in

XBrl.

5. Management’s Discussion and Analysis (MD&A) the reports follow cPa canada’s principles

and recommended disclosure practices for

Md&a. the six principles and a five-part

framework of recommended disclosure

practices help companies effectively tell

their stories to investors. the winning

companies make creative and liberal use of

graphs, charts and illustrations to enhance

the delivery of key information and to make

it clearer and more understandable.

the quality of financial reporting continues to

improve. while this poses an ever-increasing

challenge to our judges, the beneficiary of

improved disclosure is the canadian investor,

who is provided with more transparency and

increased accountability with which to make

investment decisions. this is what financial

reporting should be all about. we congratulate

those who do it well.


51

AwArd of exCellenCe

Financial Reporting

PotashCorp

Potashcorp proves once again that its

integrated print and web-based corporate

reporting platform is top in class. this is the

fifth year running that Potashcorp, the world’s

leading potash producer, has taken top spot in

the financial reporting category.

so solid is the writing, organization,

presentation, overall clarity and quality of its

disclosures that it actually elicits bravos from

the judges. Potashcorp’s reporting is held

up as a model without parallel, for providing

a credible and understandable argument for

investing in the company.

the judges praise the company’s Management’s

discussion and analysis for its candid

descriptions of the corporate mission, profile,

targets and goals, and focus on sustainable

value.

calling its reporting “complete, fair, balanced,

understandable, relevant and comparable,”

the judges note that Potashcorp provides

comparative data on market size, growth

and penetration by competitors, as well as

performance indicators and clear assessments

regarding specific targets.

the company explains the strategies it uses to

manage reported risks and deals openly with

both positive and negative performance. its

“year in review” includes a scorecard against

which to measure achieved versus non-

achieved goals, and provides future targets with

specific metrics. the scorecard also provides

financial performance highlights that reconcile

easily with the audited financial statements.

the annual financial statements integrate

Potashcorp’s accounting policies, estimates,

judgments and supporting information, making

it easy for users to understand each financial

item. Potashcorp is also commended for the

integrated online reporting tool, very robust

notes and the timeliness of the statements,

issued within 50 days of year-end.

Other highlights: an interim report that

interprets, rather than reiterates, the financial

statements, and offers meaningful ratios, robust

contingency disclosures and graphics that

complement the text; a financial Outlook with

specific goal measurements; and the earnings

news release, featuring key performance and

outlook highlights.


53

honourAble Mention

Financial Reporting

TELUS

a multiple corporate reporting award

recipient, this year telus adds honourable

Mention in the financial reporting category to

its celebrated record.

the judges are impressed by the consistent

tone set by telus’s “Putting you first” theme.

unambiguous and used in both print and digital

formats of the annual report, this statement

articulates the priority it places on speaking

plainly to investors and customers alike, as well

as its emphasis on shareholder value creation

and organizational ingenuity.

Placement of the scorecard at the front of the

report reflects its importance. the disclosures,

particularly the cfO letter, provide exceptional

clarity as the lead-in to the Management’s

discussion and analysis (Md&a). the risk and

risk-mitigation strategies are well presented in

the latter, as are the specific actions taken and

management’s comments.

the corporate investor proposition is woven

throughout the Md&a in telus’s discussion

of its priorities, core business strategies, key

performance drivers, results, capabilities and

risk assessments, and in the comparisons it

draws with competitors.

the judges commend telus for providing

eight years of financial and operating results,

plus segmented highlights.

the supplementary information is candid and

substantial. the section that features company

executives answering questions, the extensive

biographies in the report and the community

investment section all add a personal

feel. reference to the availability of online

information for key stakeholder groups on the

back cover is unique and effective.

Other highlights: management’s assumptions

for year-over-year targets that provide

transparency and a mechanism to bridge

the metrics; the scorecard’s measurable and

cohesive goals that represent telus’s key

success drivers; the extensive amount of

relevant data analysis and updates contained

in the interim financial report, which reflect

progress toward targets while alerting readers

to items that could potentially change results;

and the fourth-quarter earnings news release,

which delivers a blend of actual results, updates

to business developments, annual guidance and

segment results.


christie J.B. clark, fcPa, fca

Boards are ultimately responsible for the long-

term success of their organizations. this means

that strategy cannot be neglected; it must

be one of the central elements of the board’s

activities. there is a great deal of confusion

among boards as to what they should or

shouldn’t do when it comes to participating in

strategy.

we sat down with chris clark, former ceO of

Pwc canada and current corporate director

with five public companies and two not-for-

profit organizations, to explore his thoughts

on how boards are getting involved in their

organizations’ strategies and the role boards

can play in ensuring a commitment to

transparency and disclosure are considered in

the strategic plan.

The Board’s Role in Strategic Planning

Past Role

• ceO and senior Partner,

Pwc canada (2005 – 2011)

Current Board Positions

• air canada (chair, audit committee)

• alpine canada

(chair, governance and audit committee)

• Brookfield Office Properties

(chair, audit committee)

• choice Properties reit

• igM financial

• loblaw companies limited

(chair, audit committee)

• the canadian Partnership against cancer

(chair of the Board)

Corporate Governance Disclosure for the 11th year running, Pwc evaluated corporate governance disclosures for publicly traded

companies vying for corporate reporting awards. Pwc used the most recent annual shareholder

meeting Management information circular, annual information form and company websites to

determine the winners in the corporate governance category. the judging criteria were updated to

keep pace with the regulatory requirements and recommendations outlined in the National Policy 58-201, National Instruments 58-101 and 52-110, Dodd-Frank Wall Street Reform and Consumer Protection Act and Internal Control-Integrated Framework during april 2013.

the 2013 award of excellence in corporate governance disclosure is awarded to td Bank group.

honourable Mention in this category is royal Bank of canada.

55

PwC: You retired as Canadian CEO and senior partner of PwC almost three years ago, and you now sit on multiple public and not-for-profit boards. How has the change in perspective changed the way you see strategic planning?

chris clark: how i think about strategy and its

importance to an organization hasn’t changed,

although my role in the process has changed

dramatically. as ceO of Pwc my job was to

identify the different strategic options, land

on a recommendation of what we should be

doing and why; identify the risks associated

with that course of action and then execute

the strategy, which is the most difficult part.

My job now as a director is not to get involved

in the development of the strategy but rather

to test and probe the organization’s strategy

and use my experiences and skills to help

management refine the strategy. ultimately,

though, it is up to management to make a

decision and then execute.

PwC: Across the different boards you sit on … how do they differ in the way they view their role in strategy development?

cc: fundamentally, all the organizations with

which i’m involved believe they need to have

a strategic plan and set a goal for where the

organization wants to be and how to get there;

but there are differences in how companies

work with their boards to create that strategy.

i think a lot of that is probably organizational

culture and the personality of the ceO.

Personally, i think the best results come by

involving the board early in the process.

i have experienced strategy sessions where

management presents the strategy to the

board and, for all intents and purposes, the

plan is baked and there is little or no room

for change or discussion of the alternatives. i

don’t think that’s an ideal approach because

it doesn’t allow for a healthy debate with the

board which reaffirms: what are the strategic

options, the key issues and risks associated

with each? and are we allocating our people

and capital in the best possible way?

debating the strategy is a best practice

because you get buy-in, you get engagement,

you get alignment and you get both

management and the board feeling that

they’ve been part of the process. Once

you’ve had the debate, though, the board

and management must leave the room

standing together on a course of action with

appropriate timelines and key performance

indicators.

PwC: How should management and the board approach strategy?

cc: there are many successful ways to

approach this, i was part of one recently that

worked very well. essentially it was a two-step

process.

first the board and management got together

and we looked at the economic environment,

as well as what’s happening from an industry

perspective. this allowed the board and

management to understand and discuss the

external forces that are likely to impact the

business going forward over the next one to

five years.

we also looked at direct competitors. how

are they performing in the marketplace? how

do we benchmark against them, looking at

both revenue and cost, as well as stock market

performance?

and, where appropriate, we looked at what’s

taking place in other parts of the world.

for example, what does management see

happening in europe or asia in their industry

that can be applied in canada?

© 2012 PricewaterhouseCoopers LLP, an Ontario limited liability partnership. All rights reserved. 2088-02 1012

Making the complex simpleWe assist companies in setting clear measures to strengthen performance

www.pwc.com/ca/cfoagenda

We applaud organizations who are committed to reporting that is relevant, clear and easy to understand.

57

Once we understood the background elements,

we were then ready to talk strategy, taking into

account the current position of the company.

the next step involved management coming

to the board with a sophisticated plan for

what they wanted to do. together we explored

management’s plan and discussed the

alternatives they looked at and why they made

the decisions they did. it wasn’t a whiteboard

session but rather a debate of the issues and

risks associated with the proposed course of

action.

this included breaking up into small groups

of board members and management to

discuss questions around human resources,

culture, revenue growth ideas, or what other

topics were relevant. i think this exercise

was particularly good as it promoted board

involvement through increased discussion. the

ideas were then shared with the whole group,

and management took that information away to

incorporate into the strategy.

PwC: What levels of management should be involved in planning with the board?

cc: at certain points of the process you want

to include a broad array of management

that goes a tier below the most senior

executives. they should attend the meeting

and present the part of the plan for which

they are responsible and then participate

in the discussion. that does two things: it

gives them exposure to the board so they are

better engaged on the strategy. it also gives

the board exposure to them; this becomes

important later during succession planning

discussions as it gives the board a window into

what talents are waiting in the wings.

PwC: During the planning process, as you test and challenge management’s strategic plan, what are you asking?

cc: at the end of the day, it’s not about

challenging management’s plan, it’s about

applying your skills, expertise and experience

to help make the strategy better. this is where

the different backgrounds and expertise of

board members can make a difference.

One question i do like to ask in any strategy

meeting is “tell me what you’re not going to

do.” don’t just tell me what you’re going to

do. tell me the three or four things that you

looked at this year that you’re not going to

do because you don’t have time, you don’t

have the money, you don’t have the people,

you don’t have the expertise … whatever it is …

here’s always a thousand and one things you

could be doing; but ensuring that management

has the right focus is critical.

PwC: Once the strategy is set what should the board do to monitor the plan?

cc: while it may sound trite, i think that the

development of the strategy is the easier part;

the execution and delivery of that strategy is

more difficult. and that’s why you don’t finish

the strategy, say “that’s nice” and put it on

the shelf only to be revisited again next year…

it has to be a living document. what are the

kPis? how are we measuring up? these are

critical questions to be answered during the

year.

you’ve got to come back to it — especially

when the marketplace is changing. But you

have to balance that with the knowledge that

“Tell me what you’re not going to do.”


it takes time for a strategy to take hold. and

this may include a recognition that revenue

or profitability will dip while the organization

charts a different course or implements a

change in strategy. it is all about finding

the right balance between making long-

term investments and achieving short-term

profitability.

what you can’t do is change your strategy

based on short-term results or the fact that

analysts don’t like what you’re doing. you’ve

got to look past that to the creation of

shareholder value over the long term.

PwC: When a board isn’t involved in strategy, and assuming it wants to be — how can a board change this?

cc: i think that the board should seek change

if it is not happy with the process. this might

be through comments on the annual board

effectiveness survey, bringing it up at an

in-camera session or speaking to the chair

directly who can then have a conversation with

the ceO.

last year i was involved on a board where

this observation was made through the board

effectiveness survey by a number of board

members. this year there was a note that went

out to all board members well in advance of

the strategy session saying “this is what we’re

planning, this is how we’re thinking of doing

it and this is how we’re going to get you more

involved than you were last year.” it turned out

to be a much better day for both management

and the board.

PwC: What’s the board’s role in setting targets?

cc: i don’t believe it’s up to the board

to set targets. i really believe that this is

management’s job. as a board, it’s up to us

to challenge what management recommends,

to make sure they are appropriate, and in

that process provide insight and possible

alternatives. then monitor how management is

doing against those targets.

PwC: How are organizations integrating elements of risk with the strategic plan?

cc: Management and boards are getting

better at defining a company’s key risks, as

well as their risk appetite and tolerances,

as part of a broad enterprise wide-risk

management strategy. the challenge for many

organizations is then weaving that into the

strategic plan. i think many organizations have

the two separate, where the strategy sits here

and the risk piece sits there, without the two

being married together. it’s not easy to do, but

it is important to the success of the plan.

PwC: Is there a benefit to a board becoming more transparent about its activities?

cc: there is certain competitive information

that the board and management should always

keep guarded, but i don’t think there is any

risk in disclosing how boards and management

come together to discuss and agree upon a

strategy.

“As a board, it’s up to us to challenge what management recommends.”

59

PwC: Where else can directors turn to broaden their knowledge to help guide the strategic process?

cc: Making sure the board hears the voice of

independent third parties is critical. the board

needs to understand the voice of the client or

customer. you can’t just rely on what you’re

hearing from management.

when i was at Pwc we closely monitored

what is called the Net Promoter score. this

metric is one of the best available to define

how an organization is measuring up in the

marketplace — where it’s succeeding and

where it’s falling short with its clients or

customers.

PwC: What’s the board’s role in monitoring the success of the strategy?

cc: On a regular basis, the board should

receive a package that details what’s going on

in the industry, as well as progress against the

plan. this should include: how are competitors

doing? what are the analysts saying? Because

if some trends are developing, management

needs to react and the board needs to

consider their reaction in the same way it

considered the strategic plan. it might mean

a slight deviation from plan, or it might

mean steady state. But the board needs to

understand the issues.

reading analysts’ reports is also important.

this can be uncomfortable especially when

they disagree with the direction you helped

set, but it gives you a view into what people

are thinking and saying. and understanding

why analysts think what they think can

improve your perspective to help guide

strategy.

Nobody likes to see their stock go down,

but you can’t react to every opinion on the

street. ultimately, the director’s job is to drive

shareholder value, and that comes through a

well thought-out strategy and ensuring that

management is seeing it out while reacting

appropriately to changing factors.

PwC: Looking forward, what do you see changing in the way boards view their role in strategy?

cc: i think boards are going to continue

to become more involved in the strategic

planning exercise. that’s what boards want

and that’s what shareholders want. People

want boards to add more value and this is one

way of doing it. the marketplace is expecting

board members to be more engaged and

involved in the setting of strategy, monitoring

results and holding management accountable

to do what they say they’re going to do.


61

TD Bank Groupwhat truly distinguishes this year’s winner of

the award of excellence for best corporate

governance disclosure is its continuing

commitment to surpass regulatory and investor

expectations, thanks to the thoroughness and

transparency of its disclosures.

ranked first among 49 canadian public

companies vying for this coveted distinction

across 10 major industry sectors, td Bank

group is lauded by the judges for the particular

initiatives it has taken to further enhance its

governance processes and practices.

the judges single out as a best practice

an annual review process, via 360-degree

feedback and in-camera discussions, that

addresses how well td’s board, its committees

and individual directors have fulfilled their

responsibilities. the judges also applaud the

board’s adoption of a majority voting policy,

and decision to publish voting results by

director, including votes “for” and “withheld,”

timed to coincide with its annual shareholders’

meeting.

the judges find equally impressive the

comprehensive written mandate of the

board, as well as that of its risk committee,

and discussion (with action words in bold)

of its risk-management role, strategic

planning processes and weighting of risks

and opportunities. the audit committee’s

role and responsibility is also thoroughly and

comprehensively disclosed.

Praiseworthy as well, the judges find, is a

Nominating committee composed entirely

of independent directors, and a well-written

charter that describes how the committee

appoints and removes directors. this is

accompanied by an excellent skills matrix

outlining the competencies and attributes

sought, along with the complete work histories

of existing board members.

the company also has a communications policy

designed to instill in the board the importance

of communicating proactively and responsively

with shareholders, interested parties and the

public.

the judges, moreover, deem the executive

compensation regime linking pay to

performance fully and exhaustively disclosed.

Other highlights: td’s step-by-step guidance

on how to interpret and apply its code of

ethics; positions on money-laundering and

handling of other forms of fraud; its third-

party-operated ethics Point hotline; director

orientation sessions, materials and continuing

education programs; and its addressing key

insider information topics in a succinct, easy to

understand way.

AwArd of exCellenCe

Corporate Governance Disclosure


63

Royal Bank of Canadacommunicating effectively and responsively

to stakeholders is the hallmark of a strong

corporate governance culture, one that

bolsters performance enterprise-wide, boosts

marketplace competitiveness and builds

shareholder value.

it is only fitting, then, that royal Bank of

canada, among this country’s most respected

financial institutions, has upheld its enviable

track record and frontrunner status for yet

another year. the company’s honourable

Mention for excellence in corporate

governance disclosure speaks further to the

height of the bar it has set in the industry.

this is thanks largely to its explicit reporting

on how it identifies and manages principal

and emerging risks and its thoroughness in

describing the roles and responsibilities of its

board of directors and committees.

the judges cite as best practice the board’s

corporate governance strategy disclosures

that highlight the achievements of each of

its committees for the year, as well as regular

assessment of its own effectiveness and that

of each committee and individual director.

also made explicit is the independence of all

board members, as described in comprehensive

biographies presented in an easy to read

tabular format.

in addition, the judges praise the detailed

explanations given for the process the

board follows in nominating directors under

the auspices of its corporate governance

and Policy committee; good description

of its adoption of a majority voting policy;

acknowledgement of the ongoing need for

greater diversity in board makeup, including

gender diversity; and extent of the professional

development opportunities made available to

members.

Other highlights: the highly thorough disclosure

regarding board approval of the president

and ceO’s mandate and responsibilities;

engagement by the compensation committee

of consultants to assist in tying remuneration to

corporate goals; the audit committee’s written

charter, and excellent disclosure detailing its

quarterly meetings held independently of

management, and the risk committee’s similar

disclosure practice in meeting with the chief

risk officer; the monitoring of the conduct

code; well-represented succession planning;

and full contact information for accessing a

whistleblower hotline.

honourAble Mention

Corporate Governance Disclosure


Electronic, Social and Mobility Reportinggerald trites, fca, cPa, cisa, Zorba research inc.

lead Judge for electronic disclosure

the world of investor relations (ir) reporting

in electronic form continues to change rapidly.

the increasing role of social media is a major

agent of change. and the growing use of

mobile units, like tablets and smart phones, is a

trend that simply must be recognized by all ir

professionals.

these are major factors to the judges in the

electronic disclosure category of the corporate

reporting awards. we look closely at the way

companies are using social media — twitter,

linkedin, facebook, slideshare, blogs and many

others.

Many companies are using social media — not

always for ir purposes, but often for general

promotional purposes. the most widely used

tool in ir is twitter, which companies are finding

useful for conveying simple events, like earnings

releases, dividend announcements and other

corporate actions. Over the past few years, the

use of social media has moved from a sideshow

to an integral part of mainstream media. ir

needs to catch up. and some companies are

indeed working on that.

the use of mobile units means that information

often needs to be presented differently to

accommodate smaller screens and limited

functionality. Our judges now test the ir

websites on their mobile units as part of

their review. even some of the top sites need

improvement in this area.

at the same time, we can’t lose sight of the

central purpose of ir reporting: to provide

useful, relevant and timely information to

investors to enable them to make informed

and rational decisions. to achieve this goal,

the information needs to be presented in such

a way that the most important information

is readily available in a form that is useful for

analysis. it needs to be prioritized.

innovation remains important. Just cataloguing

the information is not enough because people

expect to get the information they need

quickly and easily. companies that do the best

reporting are constantly finding new and better

ways to get the information out there.

for example, Potashcorp offers a feature that

allows investors to customize the Pdf files

65

they download. we have long said that large

Pdf files do not lend themselves to finding the

needed facts quickly and are not particularly

useful for data analysis. But they continue to be

an attractive way to provide information and

companies use them a great deal. the idea of

customizing Pdfs for download is a useful and

creative response to this dilemma. it’s about

giving the users a choice.

More companies are implementing data analysis

tools, an approach that reflects the growing

reality that investors want to obtain individual

data points to download into their own tools for

further analysis.

finally, a relatively new approach to corporate

reporting is the advent of integrated reports.

these reports combine financial and business

reporting with sustainability and governance

reporting. integrated reports recognize the

importance of sustainability and governance to

investor value. although this importance has

long been addressed by providing separate

reports in these areas, there has been a

growing recognition that as they are all related,

presenting them in an integrated fashion shows

how they impact on the overall picture. we

are starting to see integrated reporting by the

leading companies.

there is much for companies to contemplate in

their efforts to determine how to move forward

with their ir reporting. social media, mobility,

the need for data analysis and integrated

reporting are all major change trends. in the

midst of this major change, it is critical not to

lose sight of the primary objective: to provide

information to investors that is readily available,

understandable, relevant, clear and useful.

Quite a challenge!

WebFilings congratulates the winners of the 2013 Corporate Reporting Awards

Achieve excellence with Wdesk—BUSINESS REPORTING IN REAL TIME

Visit webfilings.com for more information.


67

PotashCorp

Potashcorp earned this year’s award of

excellence in electronic disclosure by rising

to an obvious creative challenge: maximizing

the multimedia possibilities of presenting

corporate and financial data online. “great”

and “excellent” are adjectives the judges use

liberally to account for the company’s first-

place finish.

from the immediacy and robust nature

of its downloadable quarterly and annual

financials in excel, to the fast and useful search

functions and its engaging use of charts,

videos and product and service summaries,

“nothing is lacking in explaining the context

for Potashcorp’s business and investment

proposition” and “vision of its role in the global

food solution,” the judges conclude.

the company earns top marks for its website,

which provides “visual prioritization to content”

through a compelling use of graphic devices,

video integration and beautiful imagery. in

addition to offering multiple ways to access

content, the site is credited with being quick

to load and uncluttered. its major sections

are readily visible, and meta-page titles are

consistent throughout.

the website also features “effective use of

relational links” at the top and bottom of all

pages, a documents summary available in its

“library,” a registration form for email alerts,

investor relations contact information and links

to both sedar and the sec.

Judges cite the “datatool,” integrated with the

“MyPOt” feature, for its innovation. the tool, a

compendium of information about Potashcorp,

enables users to select key data points and the

time frame for each, as well as save, export and

share customized reports. a powerful press-

release filtering feature was also singled out.

social media serves as yet another vehicle

the company employs widely to disseminate

corporate — and investor relations-related

content, notably via twitter, facebook,

youtube, stocktwits, livestream and linkedin.

Other highlights: an excellent corporate

social responsibility section and the clear

management perspectives that emerge in the

videos featuring the company’s ceO and cfO.

“for overall effectiveness, these videos provide

a really good sense of the company, the market

opportunity, the culture,” the judges said.

AwArd of exCellenCe

Electronic Disclosure


69

GOLDCORP

Venerable canadian mining company goldcorp

inc. has the distinction of being accorded

honourable Mention in the electronic disclosure

category this year. deservedly so.

goldcorp wins high praise from the judges for

excellence in deploying its website and social

media to give users, stakeholders and investors

a largely transparent, interactive window on

its corporate outlook, financials, mine holdings

throughout the americas, and overall value

proposition.

the centrepiece of its “why goldcorp?” landing

page is a two-minute video featuring its ceO

explaining the company’s commitment to

delivering sustainable prosperity. hard evidence

to back up those words and robust corporate

social responsibility data garnered it a “best of

class” in what in essence is a rave review.

its “responsible Mining” section, in particular,

is replete with examples of the company’s

sustainability, infrastructure and community

investment efforts, dedicated partnerships and

programs.

in terms of navigability, goldcorp.com was

deemed by the judges to be well-organized,

top to bottom, and “very user friendly.” the

website’s landing pages are clearly and simply

labelled and feature extensive drop-down

menus, allowing users quick access to the

information they’re seeking, as well as the

ability to download material in a variety of

formats.

among the site’s many resource-rich investor

features is an interactive financial database

equipping readers with innovative and user-

friendly tools with which to conduct financial

analyses.

Other highlights: analyst coverage, stock

information, reports and filings, reserves and

resources, along with webcasts, presentations,

investor faQs and information packages, all of

which are readily downloadable.

honourAble Mention

Electronic Disclosure


Sustaining Momentum: Leading the Way in Sustainability Reportingdeloitte & touche llP – sustainability and climate change solutions

chartered Professional accountants of canada

Judging panels led by cPa canada and

deloitte have independently reviewed each

eligible sustainability disclosure provided by

the publicly traded companies that entered the

2013 corporate reporting awards. this year,

the judging panels declared suncor energy the

overall winner in sustainability reporting and

awarded telus an honourable mention.

each year reveals a number of bar-setting

trends among the leading reports that define

the best practices. as in past years, nearly all

of the reports were aligned with the global

reporting initiative (gri), which levelled the

playing field in terms of the scope of issues

covered within sustainability reports. the way

companies communicated the issues and their

performance in a contextualized, readable and

credible manner is what sets the leaders apart.

following are highlights of the elements the

judges found in the leading reports:

• Materiality process and depiction: a key

tool to focus and frame a leading report

is the use of a materiality assessment or

review. this process helps to identify and

focus on what material issues matter most

to the organization. Matrices were used to

visually depict to the reader the material

issues and their level of significance to

stakeholders and the business. the best

materiality matrixes show annual changes

in hierarchy, demonstrating that issues are

not static and stakeholder concerns can

evolve over time.

• assurance: the inclusion of assurance

continues to define the leading reports.

assurance can come from external

verification, internal quality assurance or

through the gri application level checks.

the highest level of assurance remains

third-party auditing, which demonstrates

transparency and accountability to

stakeholders and a commitment to the

highest level of corporate reporting.

• interactive approaches to reporting: in

2013 the average report length decreased

compared to previous years. this is the

result of reporters turning to web-based

material to supplement reports and

allowing users to focus on material relevant

to their interest. with these new tools and

approaches companies are broadening the

71

amount of previous years’ data they can

provide, allowing readers to look back on

not just the last three years, but up to 10

years’ worth of data. a number of leading

reports allowed users to select specific

information and combine it into a tailored

Portable document format (Pdf), using

a hyperlink to take the user from the

document to the website where additional

or more specific information was provided.

increasing the functionality of the report

and allowing users to design their own

report not only helps readers navigate

reams of information, but it can reduce the

printing of unnecessary material.

• Performance scorecards: setting goals

and targets for the short term and long

term, at a high level and indicator level,

are common ways for companies to show

their commitment and approach towards

implementing corporate responsibility.

leading reporters transparently track both

their successes, targets not met and the

related challenges in meeting their goals.

using simple and easy-to-read tables,

the leading reporters provided additional

context and clarity for targets that they

failed to meet — an approach that shows

accountability.

general areas for improvement include:

• stakeholder disclosure: Many reports

list stakeholders, but detailed and clear

discussion on their selection, methods

and frequency of engagement, and main

priorities remains a challenge. Providing

greater detail gives confidence that the

process is being conducted in a thorough

and meaningful way that will address

stakeholders’ key concerns.

• transparently addressing controversy: as

the expression goes, sunlight is the best

disinfectant, and a corporate responsibility

report offers a company an excellent

platform to openly discuss and provide

context for any controversies. too often

reporters do not utilize this opportunity

to reach out directly to stakeholders. By

tackling these issues head-on, they can

provide explanations, demonstrate revised

policies and report on their actions or

inactions.

• Performance analysis and targets:

generally, most reporters provided their

quantitative performance results for

the current year; however, not as many

reporters provided their future targets or

a comparison of the current year’s results

to their previously disclosed targets or to

last year’s results. Providing this type of

analysis would be helpful to readers who

will get a better understanding of how a

company is doing and where the company

is headed.

it’s no surprise that sustainability reporting

is growing and improving — let’s keep the

momentum going.


73

AwArd of exCellenCe

Sustainable Development Reporting

Suncor Energy

capturing this award for the third year in a

row, suncor energy cements its reputation as a

national leader among sustainability reporters,

not only in the oil and gas sector but across

all sectors. its “report on sustainability 2013”

exemplifies the leading trends and again raises

the bar for the competition.

suncor uses a combination of approaches,

including a summary report, sustainability

video, dedicated website and traditional

standalone report to reach a wide audience

in an effective way. its reporting is clear,

concise and comprehensive, reflecting an

excellent understanding of its audience and

a commitment to directly addressing the

challenges it faces. the ceO’s message reflects

strong commitment from senior management.

the energy giant uses a materiality review to

effectively focus and distill the wide range of

topics pertinent to its business, highlighting

in great detail and transparency the areas

of importance to its stakeholders. using

hyperlinks, the reader can navigate seamlessly

from the materiality review to the relevant

report sections on each identified topic.

the company also provides context to

readers in its discussion of material topics

and performance indicators. Multi-year data is

easily searchable and, in certain high-profile

areas such as greenhouse-gas emissions, the

company provides estimates five years into

the future. suncor self-reports as a+ under the

gri-g3.1 applications level. to demonstrate

further accountability, it has obtained third-

party assurance on selected key report metrics.

suncor’s progress report on key focus areas

outlines the current year’s goals — and the

company’s performance against those goals

— as well as next year’s goals, giving readers

a clear picture of where it is at and where it is

going.

direct, open and transparent in its approach,

suncor explains the risks and opportunities it

faces and how it is addressing areas such as

climate change and tailings management. it

clearly articulates its strategy and demonstrates

its commitment as a responsible company to

being part of the solution to its stakeholders.

suncor’s sustainability message is clear and

comprehensive. it is abundantly clear why

suncor is a leader in sustainability reporting.


75

honourAble Mention

Sustainable Development Reporting

TELUSfor the third consecutive year, telus proves

once again why it merits this prestigious

honour recognizing excellence in sustainable

development reporting.

through its standalone report, Putting You First, and interactive website, telus demonstrates

the strength of its continuing commitment to

being a leader in this field. its online report

is easy to navigate, giving readers the ability

to find topics quickly and also drill down

effortlessly for more detail.

in clear, easy-to-read language telus invites

readers to dive into the core details and context

surrounding its commitment to sustainability.

it frames its report using a materiality analysis,

which includes a material issues matrix

highlighting and prioritizing the issues of key

interest to stakeholders.

successes, challenges and issues are disclosed

transparently, presenting readers with a

balanced picture of telus’s sustainability

performance. the summary tables throughout

the report clearly and succinctly outline 2012

results against targets and are supported by

relevant explanations. they also address 2013

targets.

in terms of greenhouse-gas emissions, the

telecommunications provider self-reports at

a gri-g3 a+ level. Moreover, it obtains third-

party assurances regarding a broad range

of key performance indicators. this further

underscores its commitment to ensuring the

credibility of its metrics.

symbols are used liberally throughout the

report so readers can easily identify which

indicators have been subject to third-party

review. in addition to the executive review and

sign-off process, telus continues to ensure

all report contributors provide a reasonable

accuracy and veracity statement, further

demonstrating its commitment to presenting

quality data.

a direct connection exists between

sustainability and business success, a fact

telus demonstrates again and again,

thanks to its in-depth explanations regarding

management approaches, stakeholder

engagement, governance systems and policies,

plus the ample coverage it gives management

accountability and involvement.

telus’s sustainability reporting clearly shows

why it so justly deserves this honourable

mention.


List of EntriesCLEAN TECHNOLOGYcapstone infrastructure corporation

cascades inc.

Newalta corporation

COMMUNICATIONS & MEDIABce inc.

rogers communications inc.

telus

thomson reuters corporation

CONSUMER PRODUCTScanadian tire corporation, limited

empire company limited

the North west company inc.

DIVERSIFIED INDUSTRIESd+h

finning international inc.

Mullen group ltd.

sNc-lavalin inc.

stantec

FINANCIAL SERVICESatB financial

BMO financial group

ciBc

genworth canada

intact financial corporation

laurentian Bank of canada

royal Bank of canada

scotiabank

td Bank group

INDUSTRIALS & ENERGYBombardier inc.

canelson drilling inc.

enerflex ltd.

trinidad drilling ltd

MININGagrium inc.

goldcorp inc.

hudBay Minerals inc.

iaMgOld

Potashcorp

Primero Mining

silvercorp Metals inc.

OIL & GASarc resources ltd.

cenovus energy

freehold royalties ltd.

suncor energy

talisman energy inc.

SMALL CAP/VENTUREcatalyst Paper corporation

Painted Pony Petroleum ltd.

Pure technologies ltd.

UTILITIES & PIPELINES/REAL ESTATEBrookfield Office Properties inc.

capital Power

enbridge inc.

inter Pipeline

Pembina Pipeline corporation

transcanada

LARGE CROWNScanada deposit insurance corporation

canada Mortgage and housing corporation

cBc/radio-canada

export development canada

farm credit canada (fcc)

SMALL CROWNSdefence construction canada

Pacific Pilotage authority

royal canadian Mint

telefilm canada

PROVINCIAL CROWNSalberta Pensions services corporation (aPs)

saskatchewan transportation company

sasktel

workers’ compensation Board of Nova scotia

worksafe Bc

Date post:	07-Jun-2020
Category:	Documents
Upload:	others
View:	2 times
Download:	0 times

Official Newswire Of the 2013 - CPA Canada · Official Newswire Of the 2013 ... about an item is...

Documents