Sonal Kaushik's presentation for the Orientation Session on Sustainability Reporting on 9th May 2013 at Bombay Chamber

1. Overview on Sustainability
Reporting
Sonal Kaushik
Environmental Management Centre LLP

2. What is Sustainability Reporting?
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Disclosure in public domain about non-financial
performance
here, Non-financial means = Governance, Environment, Social, Health &
Safety
In simple words…..
It is an organizational report that talks about the
performance of four key areas namely economic,
environmental, social and governance.

3. Sustainability Reporting
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Sustainability reporting is the practice of measuring,
disclosing, and being accountable to internal and external
stakeholders for organizational performance towards the
goal of sustainable development.
– Global Reporting Initiative (GRI)
The founding motto of the GRI,
“What you cannot measure, you cannot manage,” Adding to it
….If you cannot manage, you cannot perform.”

4. What is the Purpose?
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Benchmarking and assessing sustainability performance
with respect to laws, norms, codes, performance
standards, and voluntary initiatives;
Demonstrating how the organization influences and is
influenced by expectations about sustainable
development; and
Comparing performance within an organization and
between different organizations over time.
Intended to improve internal processes, engage
stakeholders and attract investors !

5. Who offers guidance on Sustainability
Reporting?
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The following organizations offer sustainability reporting
guidance (globally)
The Global Reporting Initiative
Organization for Economic Cooperation and development
(OECD Guidelines for Multinational Enterprises)
The United Nations Global Compact (the Communication on
Progress)
International Organization for Standardization (ISO 26000,
International Standard for social responsibility)
Now in India..
Ministry of Corporate Affairs with GIZ – has came up with
NationalVoluntary Guidelines (NVGs)
SEBI has come with ‘Business Responsibility Reporting (BRR)’

6. What is GRI ?
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GRI – a non-profit organisation and a multi-stakeholder
network in 30 countries
GRI is a global initiative to standardise NFR which the
organisations adopt and has become the de-facto
standard globally. GRI is a long term, multi-
stakeholder, international process whose mission is to
develop and disseminate globally applicable SR
guidelines.

7. Evolution of GRI
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1997
• CERES,Tellus Institute & UNEP initiated GRI
2000
• Version 1 of SR guidelines released
2002
• Version 2 of SR guidelines released during WSSD at Johannesburg
• It became a separate permanent Institution, headquartered in NL
2008 • Version 3 called as GRI G3 guidelines on SR released
2010 • GRI Focal point opened in New Delhi, India
2011
• Organisations from 60 countries report based on GRI;
• Almost 7500 GRI based Reports registered on GRI
Although the GRI is independent, it remains a collaborating centre of UNEP
and works in cooperation with the United Nations Global Compact

8. GRI G3 Guidelines
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Standard
Disclosure
Disclosure
Items
Disclosure on
Management Approach
and Indicators
Strategy & Analysis
Organizational Profile
Report Parameters
Governance,
Commitments and
engagements
Economic Environment Social
3 Aspects
9 Indicators
9 Aspects
30 Indicators
5 Aspects, 14 Indicators
Society
Labour
Human Rights
Product
Responsibility
5 Aspects, 11 Indicators
7 Aspects, 8 Indicators
5 Aspects, 9 Indicators
In Total – 34 Aspects and 81 Indicators

9. Example : Human Rights Indicator
ASPECTS
• Investment and Procurement
Practices
• Non-Discrimination
• Freedom of Association &
Collective bargaining
• Child Labour
• Forced & Compulsory Labour
• Security practices
• Indigenous rights
Total number of incidents of discrimination
and actions taken
Total no. of incidents of discrimination
Status of incidents –
• Reviewed
• Actions taken
• Implemented
• Resolved/ completed
INDICATOR
DATA REQD.
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10. What are NVGs?
Issued by MoCA (prepared by IICA)
NVGs are NOT reporting guidelines but lays down the
basic requirements for businesses to function responsibly
Principle based approach
There are 9 Principles supported by core elements
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11. 9 Principles of NVGs
Businesses should -
P1: Conduct and govern themselves with Ethics,Transparency and
Accountability
P2: Provide goods and services that are safe and contribute to sustainability
throughout their life cycle
P3: Promote the wellbeing of all employees
P4: Respect the interests of, and be responsive towards all stakeholders,
especially those who are disadvantages, vulnerable and marginalised
P5: Respect and promote human rights
P6: Respect, protect, and make efforts to restore the environment
P7: When engaged in influencing public and regulatory policy, should do so
in a responsible manner
P8: Support inclusive growth and equitable development
P9: Engage with and provide value to their customers and consumers in a
responsible manner
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12. Example: P3: Wellbeing of Employees
freedom of association, collective
bargaining and grievance redressal
mechanisms
equal opportunities irrespective of caste,
creed, gender, race, religion or sex
not use child labour, forced labour
work-life balance of employees
timely payment of fair
living wages to meet basic needs
Safe, hygienic and humane workplace
environment
continuous skill enhancement
harassment free workplace
• Total number of employees with percentage of
employees that are engaged through contractors
• Statement on non-discriminatory employment
policy of the business entity
• Percentage of employees who are women
• Number of persons with disabilities hired
• Amount of the least monthly wage paid to any
skilled and unskilled employee
• Number of training and skill up-gradation
programmes organized during the reporting period
for skilled and unskilled employees
• Number of incidents of delay in payment of wages
during the reporting period
• Number of grievances submitted by the employees
CORE ELEMENTS INDICATORS
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13. What is BRR?
SEBI issued a Circular dated 13th August 2012, where it
says that listed companies should include BRR as part of
the Annual Reports.
Mandatory for 100 listed companies for both NSE & BSE
Others, should voluntarily disclose
The provisions of the Circular is applicable for FY ending
on or after Dec 31, 2012
BRR is based on NVG principles and a simplified format
given as Annexure 1 of the Circular.
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14. BRR Framework
Sec A: General Information about the Company
Sec B: Financial Details
Sec C: About the Subsidiaries/ JVs
Sec D: BR Information (based on principle-wise policy)
Sec E: Principle-wise Performance
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15. 15

16. 16

17. 17

18. How do a Company start on SR?
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19. Company
Create
baseline
through
Indicators
• GRI
• NVGs
• Integrated
Reporting
Sustainability
Indicators?
Set Goals & Targets as per the baseline
prepared to move towards Sus. Dev.
Commitment required,
henceVision and Policy to be
formulated & approved by
BOD
DISCLOSURE of :
• approach/ process
• governance
• targets
• performance
= Sustainability
Report
To achieve the targets
Action Planning &
Implementation
of Actions
Measure the
Indicators
again
Performance!!
Input from
Stakeholders
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20. Reporting phases
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Prepare
Connect
DefineMonitor
Report
1- 1.5 months
1- 1.5 months
1- 1.5 months
6 months
1- 1.5 months
Year 1
Plan for reporting
process
Engage with
Stakeholders
Finalise the Indicators,
Actions & Report
Content
Measure the data
Monitor the actions
Write the Report,
Communicate and
collect feedback

21. Benefits of SR
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Internal benefits for companies includes :
Increased understanding of risks and opportunities
Emphasizing the link between financial and non-financial performance
Influencing long term management strategy and policy, and business
plans
Streamlining processes, reducing costs and improving efficiency
Benchmarking and assessing sustainability performance with respect
to laws, norms, codes, performance standards, and voluntary
initiatives
Avoid being implicated in publicized environmental, social and
governance failures
Comparing performance internally, and between organizations and
sectors

22. Benefits of SR
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External benefits of sustainability reporting can include:
Mitigating - or reversing - negative environmental, social and
governance impacts
Improving reputation and brand loyalty
Enabling external stakeholders to understand company’s true
value, and tangible and intangible assets
Demonstrating how the organization influences, and is
influenced by, expectations about sustainable development
Attract investors

23. Case Study : Veriform
VeriForm, an energy-intensive steel fabricating
company located in Cambridge, Ontario.
The company invested $46,186 between 2006
and 2008 to cut its energy costs.
VeriForm reduced its natural gas consumption by
90%.
It’s electricity bill dropped by more than 58%, and
its profit increased by 76%.
Equally impressive, the average payback period
for its 42 energy saving projects was 6.3 months,
which equates to an annual ROI of 190 %.
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24. What was done at Veriform?
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25. Case Study : Veriform
VeriForm has implemented over 42 energy conservation
and waste reduction projects since 2006.Their achievement
highlights:
58% reduction in electricity usage
90.5% reduction in natural gas usage
100% elimination of paper product waste
Overall reduction of annual CO2 emissions by 115 tonnes
Source: http://www.veriform.ca/energy.html
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26. Thank You!
sonal.kaushik@emcentre.com
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