Venue, Date

Sustainability Reporting and the GRI framework Global Reporting Initiative Focal Point USA

Marjella Alma Manager External Relations alma@globalreporting.org +1 917 690 0909

NAEM, Corporate Sustainability Management Conference, 7-8 March 2012

Outline

Sustainability Reporting

About GRI

The GRI Guidelines

Drivers and Trends

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”?

Recent research shows that.. 1. Sustainability reporting is de facto law for business

1. Sustainability reporting enhances

financial value

2. Combined reporting leads to IR

3. Data integrity is essential

4. Leaders choose external assurance

The largest and most comprehensive survey of CR reporting trends published

Vast coverage of 3,400+ companies

Most comprehensive study since the first report in 1993

KPMG International Corporate Responsibility Reporting Survey 2011

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

Who’s using sustainability data?

Can any of this really be measured?

How would you do this?

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.

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.

How do I get started?

Collect and present ESG data

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

A GRI report.. makes use of the

G3 or G3.1

Guidelines

includes a

GRI Content Index

and preferably

declares an

Application Level

GRI Application Levels

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.

GRI Application Level Check

GRI reports get recognition GRI reports list - free Featured reports

What about data quality? More than 70 percent of the G250 and 64 percent of N100 engage major accountancy firms.

0% 5% 10% 15% 20% 25% 30% 35%

Drive performance

Primarily responding tolegal requirements

Improve reportingprocesses

Improve quality of reportedinformation

Reinforce credibility amongstakeholders

Source: KPMG International Survey of Corporate Responsibility Reporting 2011

Who is using the GRI framework?

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

GRI reporting in the USA

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GRI reporting - worldwide

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Rest of World

USA

November 2011: The GRI Guidelines

are used by 80 percent of the G250

USA - GRI Reporters

How is this data used?

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

Environmental criteria

Company Names

Environmental Disclosure

Score

Total Energy Consumption

(Mwh)

Total GHG Emission (Th Tonnes)

Water Consumption (Thousands of cubic

meters)

Total Waste (Thousands of metric

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

Financial market players

May 2010

January 2011

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

MNE’s and their supply chains

Training

Customer

Suppliers

GRI Stakeholders

Current GRI projects:

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.

G4 Developments - Timeline

G4 as a stepping stone

Mai

nst

ream

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Sust

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abili

ty D

iscl

osu

re

Integrated Reporting

Sustainability Reporting

G4

Other paths to mainstreaming

When you want 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

Venue, Date

Thank you!

More information: Marjella Alma Manager External Relations alma@globalreporting.org +1 917 690 0909 www.globalreporting.org

http://database.globalreporting.org

NAEM, Corporate Sustainability Management Conference, 7-8 March 2012