GRI Launch of the US external assurance study with G&A Institute & Bloomberg
1. GRI Sector Leader
Webinar Series
Enhancing quantity and quality of reporting
The launch of GRI’s US external assurance study
Rina Levy, Bloomberg (GRI Sector Leader)
rilevy1@bloomberg.net
Louis Coppola, G&A Institute (GRI Data Partner)
lcoppola@ga-institute.com
Mike Wallace, Marjella Alma, GRI Focal Point USA
alma@globalreporting.org
Venue, Date wallace@globalreporting.org
GRI webinar with Bloomberg and G&A Institute, 3 April 2013
2. Outline
Introduction
Mike – GRI
US trends in sustainability reporting
Louis - G&A Presenter
The launch of the US external assurance study
Marjella – GRI Presenter
The value assurance (data)
Rina – Bloomberg Moderator
4. Summing up the State of
Sustainability Reporting in the U.S.A.
April 3, 2013
Louis D Coppola – Executive Vice President
GOVERNANCE & ACCOUNTABILITY INSTITUTE, INC.
(GRI Data Partner for the US)
5.
6.
7. Our Findings: About Corporations and Their
Sustainability and Responsibility (“S&R”)
Leaders in S&R Enjoy Competitive Advantages
Greater access to capital - attracting patient, long-
term investors – asset owners using ESG screens
Can dramatically lower operating costs
Create clear product & service differentiation
Reduce regulatory or litigation issues
Better enhance and protect their brands, reputation
Enjoy share price enhancement vs. peers
Improve corporate risk management processes
10. Submit Your Reports – PLEASE!
Download the Submission Sheet:
www.sustainabilityhq.com/reports
Send the completed form to reports@ga-institute.com
Visit the GRI Global Database
database.globalreporting.org
11. Trends – Characteristics We See
Leadership companies set pace for peers
investment peers and sector or industry peers
Reporting is becoming “more than annually”
Formats are diverse – print, on-line, hybrids
“Integrated” reports – pacesetters like Clorox (2nd)
Integration of key corporate documents
Reports are end of process – GRI Framework provides
rigorous process – enhances company operations,
marketing, finances, performance
Being used like a Six Sigma or TQM process
Assurance Slowly Being Acquired by Leaders
13. S&P 500 Reporters / Fortune 500 Reporters
VS S&P 500 Equal Weighted Index (01/07 – 9/12 5+ Years)
14. Are Sustainability Reporters More
Likely to be Included in Leading Indexes?
Some Answers:
NASDAQ OMX CRD Global Sustainability Index ® (QCRD)
Yes
Dow Jones Sustainability Index World®
Yes
Dow Jones Sustainability Index North America®
Yes
15. NASDAQ OMX CRD Global Sustainability Index ®
(As of June 30, 2011)
97% are reporting
86% of those use the GRI Framework
16. Dow Jones Sustainability Index World®
(As of September 2012)
98% are reporting
85% of those use the GRI Framework
17. Dow Jones Sustainability Index North America®
(As of September 2012)
85% are reporting
77% of those use the GRI Framework
18. What Impact Does Sustainability Reporting have on
Selection for Third Party Reputational Lists?
Some Answers:
Yes for Newsweek Greenest Companies in America®
Ranking Top 100 and 500
Yes for CRO 100 Best Corporate Citizens®
Yes for Ethisphere’s World’s Most Ethical Companies®
19. Newsweek Greenest Companies in America®
GRI Reporters on Average Rank The Highest
Not Reporting – Lowest Average Score
20. Newsweek Greenest Companies in America®
GRI Reporters on Average – Most Favorable Scores
Not Reporting – Lowest Average Score
(NOTE: Higher is Favorable except Envtl_Impact)
21. CRO 100 Best Corporate Citizens
(As of March 2011)
53% are reporting
72% of those use the GRI Framework
22. Ethisphere’s 2012 World’s Most Ethical Companies
(As of March 2012)
76% are reporting
90% of those use the GRI Framework
23. Does Sustainability Reporting have an impact
on Sustainability Ratings and Rankings?
Some Answers:
Yes for Carbon Disclosure Project (CDP)
Disclosure Score + Performance Score
Yes for Glass Door Rankings (4 Rankings Analyzed)
Yes for CSRHub Company Ratings
Yes for BrandLogic/CRD Corporate Sustainability IQ
Matrix
Yes for Bloomberg ESG Disclosure Score
24. Average CDP Disclosure Score 2012
(As of September 2012)
GRI and GRI Reference
Score Most Favorably
25. Average CDP Performance Score 2012
(As of September 2012)
Most Common GRI Reporting Score is an A
26. Glassdoor Ratings
(As of July 2012)
GRI Reporting Companies Have Happier Employees
And More Respected CEOs
27. CSRHub Company Ratings
(As of June 2012)
GRI Reporting Companies Score Higher
Across the Board
28. Brandlogic
Corporate
Sustainability IQ
Matrix
(As of June 2012)
The Most Favorable
Quadrant - Leaders
Is Made up of 100%
GRI Reporters
29. Average Bloomberg ESG Disclosure Score
(As of September 2012)
GRI Has the Highest Average Scores &
The Top 32 (highest ranking) companies
are ALL GRI Reporters
30. S&P 500 Report Conclusions
GRI Reporting Companies
Outperform S&P Index Peers
Are Selected More Often For Leading Reputational Lists
Get Rated Higher by Sustainability Raters
Included More Often In Leading Sustainability Indexes
31. Keep up with G&A
In 2012 we analyzed over 450 reports for quantitative and qualitative
information.
Launching our New Awards and Recognition services for corporate consulting
clients next week with 3BL Media.
Keep up with reporting at www.SustainabilityHQ.com/reporting
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Proud to help GRI Launch the publication on assurance today
32. GOVERNANCE & ACCOUNTABILITY INSTITUTE
215 Park Avenue South, 10th Floor (at Union Square)
New York, New York 10003
Tel 646 430 8230
Web www.ga-institute.com
Louis Coppola, MBA - Executive Vice President, Technology & GRI Strategies
Tel 646.430.8230 x14 - Email lcoppola@ga-institute.com
36. STANDARDIZE DATA?
• 50% of GRI
compliant
companies have a
Bloomberg ESG
Disclosure Score of
40 and above
vs
• 3% of those not
reporting according
to GRI have a score
of 40 and above
39. How does GRI help?
GRI Mission
To make sustainability reporting standard practice by
providing guidance and support to organizations.
40. 95% of Global 250 companies issue
sustainability reports – 80% use GRI
4
41. The GRI Guidelines – the Inventory
GRI Principles:
These guide the content and quality of your
reporting.
Materiality, boundary-setting, inclusiveness,
stakeholder engagement etc.
GRI reporting elements:
1. Profile Disclosures
Strategy, About, Governance.
2. Disclosures on Management Approach
EC, EN, LA, HR, SO, PR
3. Performance Indicators
EC, EN, LA, HR, SO, PR
42. Sustainability Reports in the USA
GRI G3 + G3.1 GRI reference Non-GRI sustainability report
US GRI data partner
47
46% growth in
absolute number of 23
GRI reports (w/
index)
2010 - 2011
269
187
141
119
71
2007 2008 2009 2010 2011
43. Launch of the US assurance paper
Data Partner G&A
Data Providers:
Bloomberg
KPMG
44. GRI and assurance
• GRI recommends external assurance, but does
not endorse particular providers nor
approaches.
• Report on external assurance: Profile
Disclosure 3.13
45. GRI’s six key qualities
(G3 GL, pg 38) External assurance should
• Be conducted by external party competent in subject + assurance;
• Be implemented in a manner that is systematic, documented,
evidence-based, and characterized by defined procedures;
• Assess whether the report provides a reasonable + balanced
presentation of performance;
• Utilize parties that come to an independent + impartial
conclusion;
• Assess the extent to which GRI framework was applied;
• results in set of written conclusions that is publicly available.
46. Application levels and assurance
• Sustainability reports based on G3(.1) Guidelines (w/
an Index) that seek external assurance can be
illustrated with a “+” – (A+, B+ C+) when the
reporting organization determines the 6 key qualities
are met.
• During the GRI Application Level Check GRI does not
assess whether the external assurance for a report
meets the key qualities for assurance identified by
GRI, and offers no opinion on whether the “+” is
justifiable.
47. Key Findings
The report shows that in the USA, only 10
percent (26 out of 269) of GRI-based
sustainability reports declared a “+” in 2011.
52. Scope of assurance
For 16 out of the 30 assurance statements, a
wide range of sustainability topics were assured.
- some engagements only covered KPI’s
7 were performed for GHG emissions only
7 statements were performed on environmental
topics (water, carbon and waste)
53. Level of assurance
The level of assurance was not specified in 11
out of 30 assurance statements
54. Standards
A third of assurance statements (= 10
statements for 8 organizations) did not make
reference to any assurance standards.
55. Who should provide it?
Considerations from interviewees:
1) Interviewees looked at what value assurance
could provide at a particular stage in the
reporting process.
2) Interviewees talked about the rigor and
perceived credibility of the external
assurance approach and provider.
56. Questionnaire
• Why & perceived value
• Understanding of GRI and of assurance
• Composition of team providing assurance
• Approach & process
• Duration
• Presentation of outcomes
• Future of assurance
59. Quote from AICPA
Amy Pawlicki, from assurance standard developer AICPA, says:
“We are very pleased that GRI has conducted this research
study to gain a better understanding of third-party
verification on GRI -based reports. This research
represents an important step in helping the preparers
and users of sustainability disclosures better
assess the diversity of assurance options available
to them.”
63. More 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