TBLI CONFERENCE @BOOTH/KELLOGG 2015: "How key ESG metrics can help the market...
Nys Annual Energy Conference
1. Advanced Energy Conference 2010
New York Hilton, NYC – November 8, 2010
Methodology on a Global Reporting Initiative:
Defining, Benchmarking & Analyzing
Corporate Energy Usage
Dr. Andes Fortino, P.E., Associate Provost, NYU-POLY
Jeffrey Seigel, Adjunct Professor of Mgmt, NYU-POLY
Dr. Paolo Taticchi, Assistant Professor, Univ of Perugia
Dr. Bala Balachandran, Professor Accounting, NYU-Stern
Emanuele Raggi, Research Scholar, Univ of Perugia
2. The Problem
• Corporations use an exorbitant amount of energy amongst
their offices, manufacturing, shipping, employees, etc.
• More and more corporations are reporting their sustainability
efforts in their in their integrative annual reports (the so-
called triple bottom line)
• Reporting formats, statistics and methods are left up to the
companies, no universal standards exist
• Just as there are GAAP standards for financial reporting, there
should be similar standards for sustainability reporting so
companies’ efforts can be easily compared and analyzed
3. The Solution
• Develop reporting standards for sustainability
efforts to easily compare company results
• Start by studying current Corporate Sustainability
Reporting standards to gauge how they define,
analyze and benchmark organizational energy
usage
• Propose a standard format for reporting
5. Global Academic Team
• Project Team: Academic Staff from NYU-POLY,
University of Perugia and NYU-Stern
– Dr. Andes Fortino, P.E., Associate Provost, NYU-POLY
– Jeffrey Seigel, Adjunct Professor of Mgmt, NYU-POLY
– Dr. Paolo Taticchi, Asst Professor, Univ of Perugia
– Dr. Bala Balachandran, Professor Accounting, NYU-Stern
– Emanuele Raggi, Research Scholar, Univ of Perugia
6. Why Corporate Energy Reporting?
• Impacts Efficiency, Productivity & Profitability
• Impacts Triple Bottom Line, Climate & Social Justice
• Majority of S&P 500 Reporting Climate Risks
• 80% of Global Fortune 500 Produce ESG Reports
• Climate Change Risks & Opportunities
– Educates Stakeholders: Investors, Consumers, etc.
– Enhances Brand Image and Reputation
• No Official Global Carbon Disclosure Framework
• Linking GRI & CDP Methodology Created Foray into
Global Corporate Reporting Standardization
8. Our Efforts and Methodology
• We intend to contribute to the corporate
reporting standardizing efforts by:
– Reviewing the energy use reporting of several
multi-nationals who use the Global Reporting
Initiative and / or the Carbon Disclosure Project
– Benchmark and analyze how the two reporting
methodologies work in tandem
– Pose solutions for how standardized energy
reporting can be brought to all companies
9. Report Summary
• Corporations use Exorbitant Amounts of Energy
• How do you Track Corporate Energy Usage?
• Global Reporting Initiative Standards (GRI)
• Carbon Disclosure Project Standards (CDP)
• Global Team will Write a Methodology Report
– Defining, Benchmarking & Analyzing Corporate Energy
Usage using the Exacting Standards of the GRI & CDP
– Energy Usage Impacts Efficiency, Productivity, Profitability,
Climate Change, Economics Environment, Social Justice
– Corporate Energy Data Reported & Analyzed; Next Step?
11. Global Reporting Initiative (GRI)
• Multi-Stakeholder Nonprofit Organization
• GRI Develops Sustainability Performance Guidelines
for Economic, Environmental & Social Performance
• Created Sustainability Reporting G3 Guidelines
• As of 1/09, more than 1,500 Organizations from 60
Countries use the GRI G3 Guidelines
• 1,300 Organizations Published GRI Reports in 2009
• Alliances-UNEP, UN Global Compact, Earth Charter
13. G3 Energy Initiatives
• EN3 - Direct Energy Consumption
• EN4 - Indirect Energy Consumption
• EN5 - Energy Saved by Conservation
• EN6 - Provide Renewable Energy
• EN29 - Environmental Impacts of
Transporting Products
www.globalreporting.org / 2010
15. Carbon Disclosure Project (CDP)
• Launched in 2000 to Gauge Climate Change
• Helps Investors Gauge GHG, Carbon & Energy
• CDP Focuses on Individual Companies
• Largest Database Corporate Climate Change Data
• 3,000 Organizations in 60 Countries Measure GHG
• Act on Behalf of 534 Institutional Investors Holding
$64 Trillion in Assets Under Management
• Backing from HSBC, JP Morgan, BofA, Merrill, etc.
17. Abridged GRI / CDP Linkage Table
• GRI Assurance 3.13
– Policy and current practice with regard to seeking external
assurance for the report…..
• CDP 20.1 External Verification/ Assurance
– Please indicate the percentage of reported emissions that
have been verified/assured and attach .....
• Comments
– The CDP focuses on emissions data and asks for …..
– GRI asks companies to: “Explain the relationship between
the reporting organization and …..
www.cdproject.org / 2010
18. Carbon Disclosure Project (CDP)
• Why is this important?
• Governments are making the environment a focus of
policy
• But there are no standards to measure performance
in this area
www.cdproject.org / 2010
19. Conclusion
• Global Energy Reporting Standards are
needed
• A methodology has been identified
• Our team is working on contributing to this
effort
• Your feedback and collaboration is welcomed.
20. Contact Information
• We welcome your input, questions and suggestions
• Jeffrey S. Seigel
Adjunct Professor of Management
Polytechnic Institute of NYU
40 Saw Mill River Road
Hawthorne, NY 10531
(917) 886 - 8011
jeffreyseigel@optonline.net
