The Business of Sustainability€¦ · Cost reduction is becoming an important reason for...

The Business of Sustainability the future of integrated reporting

What we will cover today

• Evolution of sustainability reporting

• Market expectations and awareness

• Changes in business reporting expectations

• Business complexity in 2014

• Integrated reports-where to start

• EarthCheck’s approach

EarthCheck Product & Service Portfolio

Risk Training and Education Reporting

A Network of Sustainable Destinations and Businesses

Well Intentioned Tick Boxes

ISO

Carbon

The Green Economy

The Green Advantage:

Rio Earth Summit Agenda 21 (1992)

Compliance Based Reporting

Process Based Management Systems

Kyoto Protocol (1997)

Performance Based Reporting

Risk & Resilience

Integrated reporting

Rio +20

1) Superficial

2) Minor discussion

3) Minimal &

Informed

4) Responsible &

Aware

(Understanding)

5) Connecting:

‘Meaningful

Experiences’

A Roadmap – where have we come from?

Reality check: 22 years after RIO…

7

TRENDS

Changing customer expectations and awareness

RFP Compliance and carbon reporting

Employee interest and engagement

Water, waste, & energy costs

Targets and benchmarks/metrics

Social media/digital revolution

Sea of labels

Growth of global reporting requirements

Financial reporting

Cost reduction is becoming an important reason for undertaking sustainable practices, but regulatory and compliance requirements, brand enhancement and risk management are among the main drivers.

• The main challenges companies are encountering with regard to reporting relate to finding good consistent data and relevant benchmarks.

• Despite strong sustainability performances by many companies, corporate initiatives are still viewed with scepticism.

• Employees have emerged as a key stakeholder group

• Verification and assurance of data and benchmarking is required

Responsible business is changing

• Safety, governance and risk concerns

• Quality and service

• Employee retention

• Customer satisfaction

Institutionalization of corporate sustainability together with:

Positioning – Market / Competitive Environment

Accreditation

•National & State Schemes

•Quality Assurance

•GRI (KPMG,PWC etc..)

•CDP

•GSTC

Certification /

Verification

•GGC

•Ecotourism AU

•Green Seal

•Green Key

•Green Key Global

•Travelife

•LECS

•Climate Action Australia

•Rainforest Al.

Metric Organisations

•HARA

•Brighter Planet

•GG Index

•NABERS

Internal Programs

•Green Engage

•LightStay

•Thrive

•Planet21

•SRC

ISO Process

•14001

•26000

•50001

•OH&S

•20121

Capacity

•Internal HR

•Hotel Schools

•University

•Technical Colleges

•RTO’s

Industry Standards

•GSTC

•WTTC/ITP

CARBON ECONOMY

• Visitors are seeking unique experiences

• They are more socially aware

• They will ask questions about your performance & sustainability record

83% of consumers

will trust a company

more if it is

socially responsible.

USA Today

Corporate adoption of sustainability

CSR take-up within a company

The big issues

Water-Energy Nexus: “In a world where water scarcity is a major and growing challenge, meeting future energy needs depends on water availability –and meeting water needs depends on wise energy policy decisions.” World Policy Institute and EBG Capital, March 2011

Next step: Integrated resource management

A sea of tourism certification schemes

Performance-based focused on progress and compliance with both internal and external goals. The awarding body applies criteria, and benchmarks performance rather than intent. Process based focused on setting up management systems within business, and using internal systems for monitoring and improving procedures and practices.

Certification Schemes

Regulatory Reporting

Management Reporting

Financial Reporting

- Annual Reports - Mandated - Disclosures

- operational performance - Business units

Reporting demands are changing

Housekeeping F&B Engineering Finance Purchasing

Budget Silo’s

Financial rankings and ratings

Down Jones Sustainability Index

Carbon Disclosure Project

Fortune’s Most Admired Companies

FTSE 4 Good

Bloomberg SRI

Global Compact

ASX Corporate Governance Principles

Hong Kong Stock Exchange Guidelines

Sustainability is not a logo.

It’s what you do!

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Taking Action

Get the basics right

1. A clear vision, mission and mandate for action

2. Set clear and achievable targets in Business planning

3. Appoint project champions

4. Align with brand message and delivery

5. Celebrate achievements

6. Communicate success with all stakeholders

Understanding integrated reporting

An integrated report is a concise communication about how an organization's strategy, governance, performance and prospects, lead to the creation of value over the short term, medium and long term. The International IR Framework

The value creation process

Integrated reporting guiding principles

The following principles underpin the preparation and presentation of an integrated report, informing the content of the report and how information is presented:

A Strategic focus and future orientation

B Connectivity of information

C Stakeholder relationships

D Materiality

E Conciseness

F Reliability and completeness

G Consistency and comparability

Integrated report elements An integrated report should include the following eight content elements:

A Organizational overview and external environment

B Governance

C Business model

D Risks and opportunities

E Strategy and resource allocation

F Performance

G Outlook

H Basis of preparation

There is no one size fits all model for integrated reporting

Each business is unique, and needs to tailor their integrated reporting to affectively address their mission, size and culture. Guiding Principles and Content elements hold true

3. Certify & Implement

• Online program

• Prepare Health Check

• Tips and resource support

• Collect data and measure performance

EarthCheck Program

Consulting Support

EarthCheck Evaluate

• Relationship manager

• Comprehensive performance review

• Third party audit

• Software platform with resources

• Carbon measurement

• Optional indicators

• Access to EMS/risk templates

• Available in four languages

• International compliance

EarthCheck Certified

Training & Capacity Online Support Full Service

EarthCheck Assessed

2. Commit Measure

WHAT IS EARTHCHECK EVALUATE?

It is a simple, practical tool

It provides a healthcheck

EarthCheck Evaluate is an entry level program that

evaluates an operator’s economic, social and

environmental level of practice

To ensure transparency, a sample of properties are verified

annually against a process aligned to the international

standard ‘International Accreditation Forum Inc (IAF)

MD1:2007’ by an EarthCheck Assessor.

Online registration and payment

•Payment will need to be made to receive access to the software in my EarthCheck)

HOW DO YOU USE EARTHCHECK EVALUATE?



Access to My EarthCheck

•Proceeding through each section of the checklist to identify if best practice has been implemented

•Identify areas of improvement

•EarthCheck offers online services at a fixed cost if needed to progress








Checklist is submitted

•An overall score is calculated from the number of positive responses per section

•The higher the number of positive responses the better the score!

•Additionally an individual score per section is calculated to give the operator an indication of their strengths and weaknesses within the overall score








Checklist is submitted

•An overall score is calculated from the number of positive responses per section

•The higher the number of positive responses the better the score!

•Additionally an individual score per section is calculated to give the operator an indication of their strengths and weaknesses within the overall score

Achievement is granted

•The scores align to an EarthCheck Rating with 1 star being the worst and 5 stars being the best

•Access to achievement logo online


Successful Sustainability Programs 1. Top down management commitment including

a written environment and social sustainability policy.

2. Dedicated and trained staff responsible for taking the written policy forward.

3. Management tools, programs and processes that allow you to collect and assess your destination’s environmental footprint (including energy, water and waste etc.) “If you can’t measure it, you can’t manage it”.

4. Developing and implementing environmental and social management and improvement systems.

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