5 March - Atlanta - NAEM Conference on Sustainability Management and Reporting; National Association for Environmental Managers

1. Sustainability Reporting
and the GRI framework
Global Reporting Initiative
Focal Point USA
Marjella Alma
Manager External Relations
Venue, Date alma@globalreporting.org
+1 917 690 0909
NAEM, Corporate Sustainability Management Conference, 7-8 March 2012

2. Outline
Sustainability Reporting
About GRI
The GRI Guidelines
Drivers and Trends

3. Range of terminology
• CSR - Corporate Social Responsibility
• CC - Corporate Citizenship
• SD - Sustainable Development
• ES - Environmental Sustainability
• BE - Business Ethics
• CE - Corporate Ethics
• CG - Corporate Governance
• ESG - Environmental, Social & Governance
• IR - Integrated reporting
What is your “Footprint”?

4. Recent research shows that..
1. Sustainability reporting is de facto
The largest and most law for business
comprehensive survey
of CR reporting trends
published 1. Sustainability reporting enhances
financial value
Vast coverage of 3,400+
companies 2. Combined reporting leads to IR
Most comprehensive 3. Data integrity is essential
study since the first
report in 1993
4. Leaders choose external assurance
KPMG International Corporate Responsibility Reporting Survey 2011

5. What builds the business case?
• Principles for Responsible Investment (PRI) [2006]
– Currently represents over $22 Trillion in investment capital
– Close to 1000 signatories
• Investor Network on Climate Risk (INCR) [2003]
– Currently represents over $9 Trillion in investment capital
– 90+ members
• Carbon Disclosure Project (CDP) [2002]
– Currently represents over $71 Trillion in investment capital
– act on behalf of 551 institutional investors
• Institutional Investors Group on Climate Change (IIGCC) [2001]
– Currently represents $6 Trillion in investment capital
– 70 members
• Interfaith Center on Corporate Responsibility (ICCR) [1972]
– Currently represents over $100 Billion
– 300 members

6. Who’s using sustainability data?

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

8. Towards a sustainable economy..
GRI Vision
A sustainable global economy where organizations
manage their economic, environmental, social and
governance performance and impacts responsibly and
report transparently.
GRI Mission
To make sustainability reporting standard practice by
providing guidance and support to organizations.

9. The GRI Guidelines
Environmental
• EN 3 - Direct energy consumption by primary
energy source
Labor
• LA 7 - Rates of injury, occupational diseases, lost
days and absenteeism, and number of work related
fatalities by region.
Human Rights
• HR 4 - Total number of incidents of discrimination
and actions taken
Product Responsibility
• PR 6 - Programs for adherence to laws, standards,
and voluntary codes related to marketing
communications, including advertising, promotion,
ad sponsorship.
Economic
• EC 4 – Significant financial assistance received
from government.

10. How do I get started?

11. Collect and present ESG data

12. Display it with a GRI content index
Highlights:
• Economic
• Environmental
• Labor Practices and Decent Work
• Human Rights
• Society
• Product Responsibility
GRI Sector Supplement
• Automotive Supplement

13. A GRI report..
makes use of the
G3 or G3.1
Guidelines
includes a
GRI Content Index
and preferably
declares an
Application Level

14. GRI Application Levels

15. GRI Content Index
• An Index is the gateway to
and road map for a GRI report
• Improves data accessibility for
your stakeholders
• Ties all different sustainability information sources
together.

16. GRI Application Level Check

17. GRI reports get recognition
GRI reports list - free Featured reports

18. What about data quality?
More than 70 percent of the G250 and 64 percent of
N100 engage major accountancy firms.
Reinforce credibility among
stakeholders
Improve quality of reported
information
Improve reporting
processes
Primarily responding to
legal requirements
Drive performance
0% 5% 10% 15% 20% 25% 30% 35%
Source: KPMG International Survey of Corporate Responsibility Reporting 2011

19. Who is using the GRI framework?

20. Sustainability disclosure database
http://database.globalreporting.org

21. GRI reporting in the USA
200
180
160
140
120
100 USA
80
60
40
20
0
yr99 yr00 yr01 yr02 yr03 yr04 yr05 yr06 yr07 yr08 yr09 yr10

22. 2000
GRI reporting - worldwide
1800
1600 November 2011: The GRI Guidelines
are used by 80 percent of the G250
1400
1200
1000
Rest of Worl
USA
800
600
400
200
0
yr99 yr00 yr01 yr02 yr03 yr04 yr05 yr06 yr07 yr08 yr09 yr10

23. USA - GRI Reporters

24. How is this data used?

25. Market evolution
300,000+ subscribers
globally
4,000+ companies and
climbing
ESG Aspects
•Emissions
•Energy Consumption
•Human Rights
•Policies
•Board Make-Up
Built around GRI

26. Environmental criteria
Company Environmental Total Energy Total GHG Emission Water Consumption Total Waste
Names Disclosure Consumption (Th Tonnes) (Thousands of cubic (Thousands of metric
Score (Mwh) meters) tons)
2010 2009 2010 2009 2010 2009 2010 2009 2010 2009
BMW --- 50.39 --- 3635.76 --- 1139.06 --- 3222.35 --- 450.51
Daimler 55.81 54.26 10327.00 8631.00 3699.00 3036.00 14050.00 11960.00 1022.00 787.00
Fiat --- 60.47 --- 8580.99 --- 2571.81 --- 34518.00 --- 1252.02
Toyota 37.98 37.98 --- --- n/a n/a 27411.00 29323.00 102.00 105.00
Peugeot --- 61.24 --- 6725.60 --- 920.27 --- 13850.03 --- 1029.60
Renault --- 37.21 --- 4704.57 --- 1238.36 --- 10681.60 --- 848.14
Ford --- 39.53 --- 15141.00 --- n/a --- 24100.00 --- 108.50
Honda 38.76 36.43 111111.11 108333.34 3980.00 3590.00 30000.00 27000.00 --- ---
Nissan 34.88 34.88 6525.28 6480.28 n/a n/a 15629.00 20902.00 869.00 888.00
Hyundai --- 38.76 --- n/a --- 1986.00 --- 16980.00 490.63

27. Financial market players
May 2010
January 2011

28. Governments
More governments are making
sustainability reporting
mandatory.
142 regulatory instruments in
over 30 countries
USA: WH CEQ - EO 13514
USPS, US Army, etc
GSA
Department of State
SEC

29. MNE’s and their supply chains
Customer
Training
Suppliers
GRI Stakeholders

30. Current GRI projects:

31. Towards the 4th generation of GRI
G4 - fourth generation
G4 aims to improve on content in the current
Guidelines – G3 and G3.1 – with strengthened
technical definitions and improved clarity.

32. G4 Developments - Timeline

33. G4 as a stepping stone
Sustainability
Reporting
Sustainability Disclosure
Mainstreaming
G4
Integrated
Reporting
Other paths to
mainstreaming

34. When you want more…

35. … involvement with GRI
In addition to getting started with GRI reporting,
you can:
• Join the Organizational Stakeholder Program
• Become a US Sector Leader
• Participate in Working Groups
• Participate in Governance Structures

36. Thank you!
More information:
Marjella Alma
Manager External Relations
alma@globalreporting.org
+1 917 690 0909
www.globalreporting.org
Venue, Date http://database.globalreporting.org
NAEM, Corporate Sustainability Management Conference, 7-8 March 2012