@GRIAusConf_Linking Sustainability Data To Value - Annabelle Bennett
1. Linking Sustainability
Data To Value
Chair: Eszter Vitorino Füleky, Network Relations Manager,
Global Reporting Initiative
Dr Maria Balabat, Senior Lecturer, University of New South Wales
Annabelle Bennett, Account Director, Trucost
Dr Lara Jefferson, Manager, Environment and Approvals, Crosslands
Resources Limited co-presenting with
Kylie Ashenbrenner, Principal Consultant Strategic Projects at ERM
2. Natural Capital Assessment
Puma Environmental Profit & Loss Account
GRI Conference Australia
Annabelle Bennett annabelle.bennett@trucost.com
March 27th 2012
4. Trucost data
The world’s most comprehensive data on corporate environmental impacts
Greenhouse Gases Air Pollutants
Water Land and Water Pollutants
Waste Natural Resource Usage
5. Trucost
Trucost has analysed the environmental performance of >5,000 suppliers,
representing $100billion expenditure.
Trucost has conducted environmental footprint analysis of funds worth
$2.7trillion.
Trucost data drives $582million AUM in environmentally optimised funds.
Trucost data is used by 15 academic institutions (including Harvard,
Yale & Oxford University) and is supported by an International Academic
Advisory Panel.
Trucost has been researching, standardising and validating the world’s
most comprehensive data on corporate environmental impacts for +10 yrs.
8. What is an Externality?
An externality is a side effect or
consequence of an industrial or
commercial activity that affects
other parties without this being
reflected in the cost of the
goods or services
10. Environmental damage caused by world’s
largest 3,000 companies
$2.2tn
>50%
Proportion of company earnings that could be
at risk from environmental costs
11. What is an Ecosystem Service?
Ecosystem services are the
benefits that people and
economies obtain from
ecosystems e.g. Fresh water,
timber and fisheries, climate
regulation, erosion control and
recreation
17. E P&L approach
Engagement
Quantification Refine E
and data Valuation E P&L
of E KPIs KPIs
collection
• Calculated • Engaged strategic • Refined • GHG and water • GHG
supply chain suppliers calculations of consumption emissions
impacts back to supply chain valuation co- and water use
raw materials • Collected supplier impacts efficients derived valued in
specific data economic
• Over €1bn • PUMA operational terms
expenditure • Established E KPI data added
analysed locations of raw
material flows
(E KPIs) x (GHG & Water Valuation) = E P&L
Best available techniques used: Spend Analysis, Hybrid Environmental Input-Output
Modelling, Life Cycle Assessment, Production Flow Analysis, environmental economics - valuation of
alternative cost models
18. Water and GHG dependency
PUMA GHG usage (2010): 716.6 ktCO2e PUMA water usage (2010): 77,493,100 m3
21. We are still responsible
“Once we know and are aware,
we are responsible for our
action and our inaction. We can
do something about it or ignore
it. Either way, we are still
responsible.”
Jean Paul Sartre
Editor's Notes
External costs are incurred whenever a natural resource is used or emissions are made to air, land or water. The external cost of using an environmental resource, such as water, or emitting a pollutant, such as carbon dioxide, is the cost that is borne by society through the degradation of the environment but which is not borne by the company that uses the resource or emits the pollutant. Trucost prices the damage that is done to society and human capital by pollutants and natural resource use, including quantifying associated human health costs. Trucost, and many leading academics, believe that pricing these resources and pollutants in financial terms provides the most suitable weighting factor to differentiate the relative damage of a range of impacts. The same approach was applied by the Stern Review on the Economics of Climate Change, a study commissioned by the UK government in 2006. The costs provide a good proxy for potential exposure to policy measures that seek to apply the “polluter pays” principle. Companies are increasingly required to contribute to external costs through regulations or economic instruments, which often “internalise” costs per unit of resources used and emissions released (i.e, through carbon taxes or allowances). The external environmental costs of a company's operations give a good long-term indicator of the environmental sustainability of the company's activities.
External costs are incurred whenever a natural resource is used or emissions are made to air, land or water. The external cost of using an environmental resource, such as water, or emitting a pollutant, such as carbon dioxide, is the cost that is borne by society through the degradation of the environment but which is not borne by the company that uses the resource or emits the pollutant. Trucost prices the damage that is done to society and human capital by pollutants and natural resource use, including quantifying associated human health costs. Trucost, and many leading academics, believe that pricing these resources and pollutants in financial terms provides the most suitable weighting factor to differentiate the relative damage of a range of impacts. The same approach was applied by the Stern Review on the Economics of Climate Change, a study commissioned by the UK government in 2006. The costs provide a good proxy for potential exposure to policy measures that seek to apply the “polluter pays” principle. Companies are increasingly required to contribute to external costs through regulations or economic instruments, which often “internalise” costs per unit of resources used and emissions released (i.e, through carbon taxes or allowances). The external environmental costs of a company's operations give a good long-term indicator of the environmental sustainability of the company's activities.