This document provides an agenda and objectives for an upcoming webinar on integrated reporting. The webinar will feature a panel of experts who will share practices and trends in integrated reporting, deliver insights and best practices, and provide information on getting involved in integrated reporting standards evolution. The panelists will represent organizations like the International Integrated Reporting Council, SASB, and companies currently implementing integrated reporting.

1. Integrated Reporting:
On-the-Ground Perspectives
Prepared for March 27, 2013

2. Webinar objectives
• Share up-to-the-moment practices and trends in
integrated reporting
• Deliver actionable insights and best practices
from standards-setting bodies and companies
currently working towards integrated disclosure
• Provide information on getting involved in
integrated reporting and standards evolution
• Spread the word (event hashtag: #IRnow)
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3. Agenda
Panelists
• Aleksandra Dobkowski-Joy, Principal,
Framework LLC
• Ricky Cronin, Relationships Manager,
International Integrated Reporting Council (IIRC)
• Michael Van Brunt, Director of Sustainability,
Covanta Energy
• Lelanie Sherman, General Manager: Financial and
Management Reporting, Eskom Holdings SOC Limited
• Marisa Mackey, Associate Director of Education,
Sustainability Accounting Standards Board (SASB)
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4. About Framework LLC
• Consultancy founded in 2003
• Services and research focused on value creation
through managing for sustainability
• Clients represented in the Fortune 500,
S&P 500, Dow Jones Sustainability,
FTSE4Good and Global FT500 indices
• GRI organizational stakeholder
• Strategic counsel to UN Global Compact
U.S. Network
• Woman-owned business certified by WBENC
• Based in Stamford, Conn., plus presence in
Seattle and partners in Mexico, Germany
@SustainStrategy
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5. Framework capabilities
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6. Have a question?
• Expand the ―chat‖ window of the
GoToWebinar control panel
• Select ―send question to staff‖ from
the drop-down menu
• Type your question or comment into
the chat box
• We will respond to questions
throughout the session and at the
end of the webinar
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7. Setting a framework for integrated reporting
Ricky Cronin, Relationship Manager, IIRC
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8. <IR> Explained
Concise communication of value over time
(investor audience)
strategy
Financial
governance Non-financial
reporting reporting
performance
prospects
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9. Value to Businesses
93% better quality data collection
88% better decision making
72% better internal understanding
of the whole business
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10. Value to Investors
BUSINESS VALUE TODAY’S REPORT
CONTENT
strategic issues
strategic growth
plans and forecasts
development plans
past performance
business as usual
■ Issues central to long-term value are overlooked
■ Markets compensate by pricing in risk
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11. IIRC Pilot Program
■ 85 businesses testing <IR> Framework
■ 30 members of Investor Network
AES Brasil Petrobras
BNDES Port Metro Vancouver
Cliffs Natural Resources Prudential Financial
Edelman Teck Resources
Jones Lang LaSalle The Clorox Company
MASISA S.A. The Coca-Cola Company
Microsoft Corporation Vancity
Natura Via Gutenberg
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12. Examples Database
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13. Getting Involved with <IR>
■ Consultation Draft of <IR> Framework to be released
April 16
 90-day open comment period
 Will be available on our website: www.theiirc.org
■ Visit the Emerging Integrated Reporting Database:
http://examples.theiirc.org/home
■ Join the Pilot Program!
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14. Preparing for integrated disclosure
Aleksandra Dobkowski-Joy, Framework LLC
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15. Framework LLC research
―The State of Integrated Reporting‖
• Reviewed reports self-identified by co’s as
―integrated‖
• Listed in GRI Sustainability Disclosure Database
- G3 or G3.1 reporter
- ―Large‖ or ―Multi-National Enterprise‖
- Published in English
- 2011 or 2012 reporting year; 9/12 cut-off date
• Company appears on Fortune’s Global 500 list
• Only evaluated the report identified as integrated
• Download full paper at framework-llc.com
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16. Sample is diverse in industries, locations
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17. Integrated reporting criteria
Category Criteria
Description of Business Model
Strategic Focus and Forward- Description of Strategic Objectives
Looking Orientation (20%)
Discussion of Future Opportunities, Challenges,
and Uncertainties
Robustness of Process
Description and Prioritization of Key Material
Materiality (40%)
Issues
Materiality Relevance
Linkage to Financials
Discussion of Environmental, Economic, and
Connectivity of Information (40%) Societal Context
Connectivity Between Past, Present and Future
Performance
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18. Results of analysis
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19. Setting the stage for integrated disclosure
Integrated disclosure is evidence of
―joined-up‖ thinking and action:
• strategic planning
• enterprise risk management
• organizational accountability
• internal and external communication
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20. Getting ready for integration
Check your (org) charts What kind of integration is evident in your company’s
organizational and accountability structures?
Does your CSO work in isolation? Are there high-level
cross-functional groups that regularly review material
(including ESG) issues?
Embrace materiality Have you conducted a materiality analysis?
How aligned are corporate vision, strategy, goals, and
targets with material issues?
Mind the gap Is there congruence between the material issues in
your sustainability report and the risk factors in your
annual financial report?
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21. Getting ready for integration, continued…
Speak the language Are you communicating effectively with your CFO,
CEO, and investor relations department?
Are you eliminating ―divisive‖ language that
inadvertently creates a false dichotomy between ESG
and financial issues?
Lather, rinse, and Are you prototyping integrated thinking and disclosure
on scales both large and small? For example:
repeat application of reporting standards, contextual goal
setting, communication with investors, etc.
―Investors have actually been asking about
sustainability for years; they just don’t call it that.‖
- Erika Karp
UBS Managing Director and Head of Global Sector Research
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22. Towards more integrated disclosure
Michael Van Brunt, Covanta Energy
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23. Covanta’s mission: clean energy from waste
About Covanta
Covanta’s mission is to be the world's leading
EfW company. We believe that waste is a
valuable resource that can be a source of clean,
safe, and renewable energy and environmental,
social, and economic benefits.
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24. Covanta 2010/2011 Corporate Sustainability Report
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25. Covanta reporting objectives
Disclose material information to stakeholders
•Communicate strategic approach to sustainability
•Provide data/narratives around priority (material) issues
•Incorporate stakeholder viewpoints and concerns
Advance integration of sustainability initiatives
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and core business objectives
•Establish goals/targets for material issues
•Begin quantifying financial impacts of sustainability
Gain recognition for sustainability efforts
•Elevate Covanta’s reputational profile
•Educate/inform stakeholders on Covanta’s approach to
renewable energy, EfW, recycling, etc.
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26. Preparation for reporting: materiality analysis
Materiality matrix
• Report focuses on material issues
• Material issues are of high concern
to stakeholders and have a
significant impact on Covanta
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27. Integrating sustainability into strategy and
operations
Clean World Initiative
• Covanta’s business strategy is
driven by Covanta’s Clean World
Initiative (CWI)—a set of policies
and overarching objectives directing
continuous improvement and
innovation in our environmental,
health, and safety; research and
development; public policy; and
community outreach efforts.
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28. Financial linkages in Operations goals/targets
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29. Eskom’s integrated reporting journey
Lelanie Sherman, Eskom
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30. Eskom at a glance
• Strategic 100% state-owned electricity utility, strongly supported by the South
African government
• Supplies approximately 95% of South Africa’s electricity and more than 40% of
Africa’s electricity
• For the year ended 31 March 2012: Generation capacity– 31 March 2012
• Electricity sales of 224 785GWh Hydro
• Electricity revenues of R113.0
billion
• As at 31 March 2012: Pumped Storage Coal
• 43 473 employees 1.4%
• 4.9 million customers 3.4%
41.7GW
• Net maximum generating capacity 4.4%
net maximum 85.0%
capacity
of 41 647MW 5.8%
• 372 031km of cables and power Nuclear
lines
• Our financial year-end is 31 March Gas
In support of
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31. Eskom’s Integrated Reporting Journey
Eskom sees the Integrated Report as a key tool to
honour the commitment to transparency to Eskom’s 2012
stakeholders and to improve on reporting, internally Integrated report aligned
and externally, regarding the way Eskom manages with IIRC and IRC of SA
the business and makes decisions based on discussion papers
integrated information. B+ GRI declaration
Integrated reporting, when done properly, is an
excellent platform to discuss historic
performance, but more importantly, to communicate
Eskom’s objectives, future plans, risk assessments
and action plans, etc. with internal and external
stakeholders.
2002
First Integrated
Annual Report 2011
(including Financial Integrated Annual Results
and Sustainability with B+ GRI declaration
1994 information)
First
Environmental
Report for 2008
Eskom Integrated Annual
In support of
Results with first B+ 31
GRI declaration

32. Eskom’s Integrated Reporting Journey (cont)
What changed in 2012 for Eskom Reporting:
• Integrated Reporting Steering Committee (IRSC), an official sub-committee of the
executive management committee(Exco), established and chaired by Finance Director –
supported by various working committees – guiding, monitoring and approval of <IR>
• We aligned our quarterly internal reporting to Exco and Board with external reporting -
improving consistency of information flow and the process of compiling the reports gets
easier (practice makes perfect)
• We changed from one big report (A4, >360 pages) to 1 smaller printed report (A5, 160
pages) and 2 internet based reports
• Integrated report included summarised financial statements (web report and hard
copy)
• Divisional report (web report)
• Full annual financial statements (web report)
• We improved our Internet functionality – making it more user friendly and connecting
Eskom’s reports
• Released an interim Integrated Report in November 2012 – a first!
In support of
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33. Eskom’s Integrated Reporting Journey (cont)
Within the Integrated report for 2012, Eskom’s key focus was:
• Reducing the length of the report, whilst improving the quality of the information
we share
• Materiality
• Stakeholder Engagement
• Demonstrating connectivity within our report with the key focus of bringing in our
strategic priorities and how it connects with our results
• Improving our internal processes of producing the various reports
• Use of standardised templates to submit information to the core reporting team
• Small core reporting team that has the final editorial rights
• Piloting software that assist with the writing – improved version control,
track changes, integration and cross referencing of numbers
• A lot of planning upfront – who, what, where and how
In support of
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34. Eskom’s Integrated Reporting Journey (cont)
For the 2013 Integrated report, the key focus is:
• Improving our application of Materiality and Stakeholder Engagement
• Improving the way we ―connect the dots‖ for the stakeholders
• Bringing in Eskom’s business model
• Continued improvement in our processes for compiling our reports
• Further enhancement in our use of the Internet
In support of
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35. Driving integration of financial and ESG disclosure
Marisa Mackey, SASB
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36. Sustainability Accounting Standards Board
The Sustainability Accounting
Standards Board is a US- Materiality Map
based non-profit engaged in for 89 Industries
the creation and dissemination
of sustainability accounting
standards for use by publicly-
listed corporations in the US Industry
in disclosing material
sustainability issues for the Training & KPIs and
benefit of investors and the Certification Disclosure
public.
Protocols
It will move corporations from
transparency to
performance, promote
sustainable value Online Expert
creation, ultimately enhancing
industry competitiveness and Forum (IWGs)
addressing sustainability
challenges.
36 3/26/2013 © 2012 SASB™ CONFIDENTIAL & PROPRIETARY

37. The most stable markets in the world…
Founded in the US in 1973, The Financial Accounting
Standards Board takes responsibility for establishing
Generally Accepted Accounting Principles, or
GAAP, on behalf of the SEC.
The SEC mandates certain content and disclosures in
SEC filings, such as audited financial statements and
Management’s Discussion and Analysis (MD&A).
These filings, and the standards that underlie
them, play a fundamental role in making our markets
the most efficient, liquid, and resilient in the world.
A primary goal of United States securities laws is to promote
honest and efficient markets and informed investment decisions
through full and fair disclosure of material issues.
37 3/26/2013 © 2012 SASB™ CONFIDENTIAL & PROPRIETARY

38. A changing world
The world population is increasingly urban
Global population by type of area and by region:
1950-2050
 Corporate growth and success are no
Growth
longer constrained solely by the availability
of financial capital.
 Global resource constraints and
management of environmental and social
issues are integral to the long term Source: UN Population Division, World Population
Prospects: The 2008 Revision, 2008
success and sustainable value creation of
companies. The world could be running out of some
resources
Global supply forecasts according to the implied ultimate recoverable
 Inadequate pricing of externalities present resources of conventional oil, date of peak production and the post-
peak aggregate decline rate
a skewed view of performance for
resource intensive companies.
 Governments are less able to regulate the
complex interactions, dependencies, and
impacts of companies on society.
Source: World Bank, Global Economic Prospects, 2007
Reporting to investors and the public must reflect a balanced view of risks
and opportunities across all forms of capital a company employs.
38 3/26/2013 © 2012 SASB™ CONFIDENTIAL & PROPRIETARY

39. Changing valuations
Components of S&P 500 Market Value
100%
80%
60%
40%
20%
0%
1975 1985 1995 2005 2010
Tangible Assests Intangible Assets Source: Ocean Tomo
39 3/26/2013 © 2012 SASB™ CONFIDENTIAL & PROPRIETARY

40. Materiality Matters
SEC materiality
• Rule 12b-2
• Rule 12b-20 The Supreme Court’s Definition
• Rule 10b-5
―Material information‖ is defined as presenting a
• Rule 210.1-02
(Regulation S-X)
substantial likelihood that the disclosure of the
omitted fact would have been viewed by the
• Rule 210.4-01 (a)
reasonable investor as having significantly
• (Regulation S-X)
altered the “total mix” of information made
• Rule 210.4-02
(Regulation S-X) available.
• Item 101, 103, and 303
(TSC Indus. V. Northway, Inc., 426 U.S. 438 (1976) and Basic v.
(Regulation S-K)
Levinson, 485 U.S. 224 (1988))
• Staff Accounting
Bulletin No. 99
SASB adheres to the materiality of information requiring disclosure as defined by
U.S. regulation, SEC rulings, and judicial review, effectively bridging the gap
between financial reporting and sustainability reporting. An integrated view of
materiality is essential for integrated reporting.
40 3/26/2013 © 2012 SASB™ CONFIDENTIAL & PROPRIETARY

41. SEC, FASB and SASB
US GAAP SASB Materiality Map
and KPIs
Integrated Reporting
SASB completes the picture on corporate performance
41 3/26/2013 © 2012 SASB™ CONFIDENTIAL & PROPRIETARY

42. Creating a race to the top
Comparable information in a public eye will encourage companies to compete on
key dimensions of sustainability, and investors to drive capital to the most
sustainable outcomes.
SASB KPIs
42 3/26/2013 © 2012 SASB™ CONFIDENTIAL & PROPRIETARY

43. 10 sectors in 10 quarters
Time Frame Sector
Q4, 2012 Health Care Services
Q1, 2013 Financials
Q2, 2013 Technology & Communication
Q3, 2013 Non-Renewable Resources
Q4, 2013 Transportation
Q1, 2014 Services
Q2, 2014 Resource Transformation
Q3, 2014 Consumption
Q4, 2014 Renewable Resources & Alt. Energy
Q1, 2015 Infrastructure
43 3/26/2013 © 2012 SASB™ CONFIDENTIAL & PROPRIETARY

44. SASB’s rigorous, ANSI compliant standards setting process
Standards
Prior Work Launch of IWG Forum Council
• Recruit IWG Forum Disbanded Process
IWGs Review
• Liaise
with
Industry
Groups
30 Day Response to
Industry Review KPI Prepare Prepare Draft for
IWG Review Comment Comments
Research Material Issues Harvesting Strawmen Public Comment
30 Days
SASB SASB SASB SASB IWG Forum SASB Public
SASB
2-Month Intensive
4-Month Preparation Phase 3-Month Refinement
Development Phase
Prepare final draft of KPIs Standards Finalization of KPIs for all industries KPIs
for Standards Council Council Review in a sector and release preparation Release of
30 Days of draft standards 30 Days Sector KPIs
after comment for Public
SASB SASB use and
Stds. Council Industry pilot
3-Month Refinement Phase (Continued)
44 3/26/2013 © 2012 SASB™ CONFIDENTIAL & PROPRIETARY

45. Get involved!
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46. What you can do
• Review and comment on the discussion draft of the
IIRC reporting framework to be released April 16,
2013.
• Help pioneer sustainability standards for your
industry by registering for a SASB industry working
group. The group for Technology and
Communications kicks off on May 1.
• Attend or monitor the 2013 GRI Conference on
Sustainability and Reporting (May 22-24), which
will include discussion of how the G4 relates to
integrated reporting.
• Participate in Framework’s Sustainability
Integration webinar on May 1… stay tuned for
details!
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47. Resources
• A recording of this webinar, along with
materials from the
IIRC, SASB, Covanta, Eskom, and
Framework LLC, will be available on our
site, framework-llc.com
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48. Thank You!
Aleksandra Dobkowski-Joy
adjoy@framework-llc.com
(203) 563-0644
@SustainStrategy
© 2013 Framework LLC
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