20130612 gri tsx
- 1. Welcome to GRI’s Official Canadian #G4launch in Toronto 12 June, 2013 Toronto, 12 June 2013 – hosted by Toronto Stock Exchange G4 Campaign Sponsor
- 2. 1:00 – 1.10 Opening – Mike Wallace, Director GRI Focal Point USA 1.10 – 2.10 Master Class II G4 Download – Sustainalytics 2.10 – 2.30 Interview with Suncor Energy; Q&A 2:30 – 2:45 Break 2:45 – 3:45 Panel Discussion with investors 3:45 – 4:45 Master Class III G4 Applied to Canadian context 4.45 – 6.00 Reception Agenda
- 3. North American G4 Campaign G4 Campaign Sponsors Participating Certified Training Partners & Sector Leaders: • Boston College • BrownFlynn • Deloitte • ERM • ISOS Group • Lead Canada w/Sustainalytics • Bloomberg • Clorox • Curran & Connors • Dell • NYSE Euronext • Sprint • The Mosaic Company
- 4. Focus on what matters, where it matters
- 5. VISION A sustainable global economy where organizations manage their economic, environmental, social and governance performance and impacts responsibly and report transparently. MISSION To make sustainability reporting standard practice by providing guidance and support to organizations Vision & Mission of GRI
- 6. Meanwhile in Europe… EC Proposal for EU directive All large companies in the EU will have to disclose information on (a) policies, (b) risks and (c) results as regards environmental matters, social and employee-related aspects, respect for human rights, anti-corruption and bribery issues, and diversity on the boards of directors. 16 April 2013
- 7. Key objectives GRI More reporters! Better transparency! It’s not just about your report, it’s about transparency creating real change.
- 8. Harmonization & alignment International North American
- 10. Why G4? GRI anticipates: • continued strong growth in sustainability reporting • increasing interest from report users for well-presented and accessible information • harmonization between reporting tools and systems • the integration of financial and sustainability reporting
- 11. Starting points for G4 • G4 Objectives o Be user-friendly for beginner and experienced reporters o Improve technical quality, with clearer definitions o Align with other international reporting references (frameworks) o Lead to reports that cover material topics o Offer guidance on how to link sustainability and integrated reporting, aligned with the IIRC o Improve data access (XBRL)
- 12. G4 development timeline Jan Feb Mar Apr May Jun Jul Aug Sep 2013 TAC Final check on G4 content G4 launch SC and TAC Concur. BoD approval Roll-out Phase SC and BoD - final feedback to G4 We are here Focused consultation GRI technical and editorial improvements, layout improvements, etc.
- 13. G4 Launch at the GRI Conference • Over 1600 people, from over 80 countries • Over 40 sessions, with close to 200 speakers
- 14. North American G4 Campaign Pre-Conference 11 April – GRI @ NYSE, New York 2 May– GRI @ CERES, San Francisco 15 May – GRI @ webinar, online G4 Local Launch 3 June – GRI @ Sustainable Brands ‘13, San Diego 6 June – GRI @ Sustainability Summit, Kansas City 10, 11 June – GRI @ Deloitte, Vancouver & Calgary TODAY – GRI @ Toronto Stock Exchange, Toronto 19 June & 24 June – GRI @ webinar, online Before… and after…
- 16. Master Class II: G4 Download Presented by GRI’s Certified Training Partner (in Canada):
- 17. About Sustainalytics Certified-GRI training: In collaboration with Lead Canada, we provide the GRI- certified 2-day training workshop across Canada. Reporting best practices: Our global team of sector-specific analysts read and analyse thousands of sustainability reports annually. Reporting Awards Judge: For the past several years, Sustainalytics has participated as a judge for the sustainability category. Sustainalytics is a global leader in sustainability research and analysis.
- 18. Master Class II Agenda 18 Overview of sustainability reporting The GRI’s 5-Step Reporting Process 1. Obtain an overview 2. Choose the preferred ‘in accordance’ option 3. Prepare to disclose general standard disclosures 4. Analyze materiality related to specific standard disclosures 5. Prepare the sustainability report Questions & Discussion
- 19. Overview of Sustainability Reporting
- 20. Conveys disclosures on an organization’s impacts – positive or negative – on the environment, society, and the economy Sets in motion a process that helps organizations to set goals, measure performance, and manage change Sustainability reporting is driving improved performance Sustainability reporting
- 21. The mainstreaming of responsible investment is founded on the recognition that ESG issues can be material. Academic and sell-side research strongly supports this view It is a view also supported by the CFA, the SEC, McKinsey and Co., the Harvard Business Review, and many of the world’s largest institutional investors 21 Sustainability is being Driven by Competitive Investment Returns http://funds.rbcgam.com/_assets-custom/pdf/RBC-GAM-does-SRI-hurt-investment-returns.pdf http://www.hbs.edu/faculty/Publication%20Files/12-035.pdf https://www.dbadvisors.com/content/_media/Sustainable_Investing_2012.pdf http://dupress.com/articles/finding-the-value-in-environmental-social-and-governance-performance http://www.generationim.com/sustainability/report/
- 22. 22 Sustainability is Being Driven by Ratings/Rankings Raters Examples: Rankings and data produced by SRI information providers Reputation indices produced by NGOs/ Media/Research firms Rankings Examples: Indices Examples Indices developed by financial index companies
- 23. Sustainability and Transparency is Driven by the Need to Build Public Trust
- 24. Growth in sustainability reporting
- 25. Sustainability reporting in Canada In 2012, there were 2 times as many reporters in EU compared to North America. 25 In 2011, Canadian companies published 3% of total global GRI reports, the 10th highest reporting level in the world. Source: GRI Sustainability Reporting Statistics Publication year 2011
- 26. Sustainability reporting by type 26 Source: GRI Sustainability Reporting Statistics Publication year 2011 The majority of GRI reports are from publicly listed companies.
- 27. 27 Source: GRI Sustainability Reporting Statistics Publication year 2011 2011 GRI Reports by Sector Sustainability reporting by sector
- 28. The GRI’s 5-Step Reporting Process
- 29. About the GRI 29 GRI Network Focal Points USA Focal Point Advisory Groups Organizational Stakeholders Training Partners CANADA: Sustainalytics/ LEAD Canada Neuvaction GRI reporters Governance bodies Technical Advisory Committee (Chair: Denise Esdon, E&Y) Secretariat (Amsterdam)
- 30. Key Changes in G4 30 Greater focus on materiality ABC application levels have been replaced by an “in accordance” system - Core or Comprehensive Aspect specific guidance for Disclosures on Management Approach (DMAs) Approach to boundary-setting has changed New “level of coverage” concept Enhanced focus on key areas including: governance and supply chain disclosures
- 31. The GRI’s 5-Step Reporting Process 31 1. • Obtain an overview 2. • Choose the preferred ‘in accordance’ option 3. • Prepare to disclose general standard disclosures 4. • Prepare to disclose specific standard disclosures 5. • Prepare the sustainability report
- 32. 1. • Obtain an overview 2. • Choose the preferred ‘in accordance’ option 3. • Prepare to disclose general standard disclosures 4. • Prepare to disclose specific standard disclosures 5. • Prepare the sustainability report The GRI’s 5-Step Reporting Process
- 33. 33 G4 Sustainability Reporting Guidelines The GRI’s 5-Step Reporting Process 1. Obtain an overview
- 34. The Reporting Principles should be applied by all organizations when preparing a sustainability report. 34 Principles for Defining Report Content Sustainability Context Stakeholder Inclusiveness Materiality Completeness Principles for Ensuring Report Quality Balance Comparability Accuracy Timeliness Clarity Reliability The GRI’s 5-Step Reporting Process 1. Obtain an overview
- 35. 1. • Obtain an overview 3. • Prepare to disclose general standard disclosures 4. • Prepare to disclose specific standard disclosures 5. • Prepare the sustainability report The GRI’s 5-Step Reporting Process 2. • Choose the preferred ‘in accordance’ option
- 36. 36 ‘In accordance’ options: Organizations may prepare their sustainability report ‘in accordance’ with the G4 Guidelines using one of two options: core and comprehensive The options do not indicate quality or performance Report should include statement if partially but not fully in accordance with either option Not ‘in accordance’ ‘In accordance’ with the Core option ‘In accordance’ with the Comprehensive option The GRI’s 5-Step Reporting Process 2. Choose the preferred ‘in accordance’ option
- 37. 1. • Obtain an overview 2. • Choose the preferred ‘in accordance’ option 4. • Prepare to disclose specific standard disclosures 5. • Prepare the sustainability report The GRI’s 5-Step Reporting Process 3. • Prepare to disclose general standard disclosures
- 38. Applicable to all organizations; helps to set the stage and provide context Core option = 34 general disclosures required Comprehensive option = all (58) general disclosures required The GRI’s 5-Step Reporting Process 3. Prepare to disclose general standard disclosures G4 General disclosures Strategy and analysis 2 indicators Organizational profile 14 indicators Material aspects and boundaries 7 indicators Stakeholder engagement 4 indicators Report profile 6 indicators Governance 22 indicators Ethics and integrity 3 indicators Specific disclosures
- 39. 39 The GRI’s 5-Step Reporting Process 3. Prepare to disclose general standard disclosuresStakeholder Engagement G4-24 Provide a list of stakeholder groups engaged by the organization G4-25 Report the basis for identification and selection of stakeholders with whom to engage G4-26 Report the approach to engagement, including frequency by type G4-27 Report key topics and concerns raised by stakeholders and where they are addressed
- 40. 1. • Obtain an overview 2. • Choose the preferred ‘in accordance’ option 3. • Prepare to disclose general standard disclosures 5. • Prepare the sustainability report The GRI’s 5-Step Reporting Process 4. • Prepare to disclose specific standard disclosures
- 41. The GRI’s 5-Step Reporting Process 4. Prepare to disclose specific standard disclosures G4 General disclosures Specific disclosures Economic 4 aspects 9 indicators Environmental 12 aspects 34 indicators Labour 8 aspects 16 aspects Human Rights 10 aspects 12 indicators Society 7 aspects 11 indicators Products 5 aspects 9 indicators Applicable to all organizations based on materiality DMAs should be reported for material aspects New aspects and indicators in G4 mostly related to supply chain DMA Categories Aspects Indicators
- 42. 42 The GRI’s 5-Step Reporting Process 4. Prepare to disclose specific standard disclosures DMAs Describe why the aspect is material Describe the management approach Describe how the management approach is evaluated Aspect-specific DMA guidance available for 23 aspects ‘Disclosures on Management Approach’: DMAs provide narrative on an organization’s material aspects DMAs describe policies, commitments, organizational responsibility, etc.
- 43. Materiality is to be determined at the Aspect level The GRI’s 5-Step Reporting Process 4. Prepare to disclose specific standard disclosures
- 44. 44 Core option 1 indicator per material aspect Comprehensive option All listed indicators per material aspect E.g. All 3 for the aspect ‘water’ Guidance is included on how and what information and data to compile – use this guidance! Example: Aspect - Water The GRI’s 5-Step Reporting Process 4. Prepare to disclose specific standard disclosures
- 45. 45 ‘Reasons for omissions’: In exceptional cases, an organization may omit a general or specific disclosure if it is: Not applicable Business confidential Legally prohibited, or If data is not available However, must provide good rationale The GRI’s 5-Step Reporting Process 4. Prepare to disclose specific standard disclosures
- 46. 46 Sector Supplements: Ten sector supplements were created under G3 to reflect that many sectors had unique impacts The aspects and indicators contained within remain valid. If a sector- specific aspect is material, then it must be included in the report. The GRI’s 5-Step Reporting Process 4. Prepare to disclose specific standard disclosures Finalized sector supplements Financial Services Electric Utilities Food Processing Mining and Metals NGO Airport Operations Construction and Real Estate Event Organizers Media Oil and Gas
- 47. 47 When preparing to disclose specific standard disclosures, materiality should be at the forefront The GRI’s 5-Step Reporting Process 4. Prepare to disclose specific standard disclosures “Material topics for a reporting organization should include those topics that have a direct or indirect impact on an organization’s ability to create, preserve or erode economic, environmental and social value for itself, its stakeholders and society at large.” https://www.globalreporting.org/reporting/guidelines- online/TechnicalProtocol/Pages/MaterialityInTheContextOfTheGRIReportingFramework.aspx
- 48. 48 The GRI offers a 4-step process for defining material aspects The GRI’s 5-Step Reporting Process 4. Prepare to disclose specific standard disclosures
- 49. 49 Identify a list of aspects and topics that have the potential to be material The GRI’s 5-Step Reporting Process 4. Prepare to disclose specific standard disclosures International Norms and Standards Ratings NGOs/Academics/Expert Bodies Your activities
- 50. 50 For each identified aspect, determine where the impact occurs – internally (G4-20) or externally (G4-21)? Determine the geographical boundary– in what regions does the organization have an impact? The GRI’s 5-Step Reporting Process 4. Prepare to disclose specific standard disclosures
- 51. 51 The GRI’s 5-Step Reporting Process 4. Prepare to disclose specific standard disclosures
- 52. 52 For each aspect identified, consider the impact on stakeholders, and the impact on the organization. Y-axis: What is the degree of stakeholder interest? X-axis: Can the aspect have an impact on the organization from a financial, operational, strategic, reputational or regulatory perspective? What is the likelihood and potential severity of the impact? What is the level of coverage for each aspect? The GRI’s 5-Step Reporting Process 4. Prepare to disclose specific standard disclosures
- 53. 53 The GRI’s 5-Step Reporting Process 4. Prepare to disclose specific standard disclosures
- 54. 54 The GRI’s 5-Step Reporting Process 4. Prepare to disclose specific standard disclosures Level of Coverage Once you have identified the material aspects you need to determine level of coverage. Level of coverage refers to the amount of prominence, amount of data and narrative description disclosed by an organization about an aspect. Factors include: priority, boundary, data availability. Organizations should disclose when information presented does not cover the full boundary identified
- 55. 55 The GRI’s 5-Step Reporting Process 4. Prepare to disclose specific standard disclosures Core Comprehensive General Standard Disclosures 34 out of 58 All 58 Core Comprehensive Specific Standard Disclosures DMAs For material aspects only For material aspects only Indicators At least one per material aspect All indicators for material aspects Sector specific disclosures Required if available for the sector and if material Required if available for the sector and if material Review of disclosure requirements:
- 56. 56 Ensure that the list of material aspects present a reasonable and balanced picture of the organization’s positive and negative impacts Apply the ‘completeness’ and ‘stakeholder inclusiveness’ principles Obtain executive sign-off Determine what material aspects have data already available. Prepare systems to collect data. The GRI’s 5-Step Reporting Process 4. Prepare to disclose specific standard disclosures
- 57. 1. • Obtain an overview 2. • Choose the preferred ‘in accordance’ option 3. • Prepare to disclose general standard disclosures 4. • Prepare to disclose specific standard disclosures The GRI’s 5-Step Reporting Process 5. • Prepare the sustainability report
- 58. 58 The GRI’s 5-Step Reporting Process 5. Prepare the sustainability report A GRI content index directs the reader to where the disclosure is reported – sustainability report, website, annual report, etc. A GRI report must state an ‘in accordance’ option and include a GRI content index to support the declaration
- 59. 59 The GRI’s 5-Step Reporting Process 5. Prepare the sustainability report GRI recommends the use of external assurance, but it is not a requirement to be ‘in accordance’ with either the core or comprehensive option The “+” has been eliminated
- 60. 60 The GRI’s 5-Step Reporting Process 5. Prepare the sustainability report Organizations are not required to submit their sustainability report to the GRI Organizations may register its sustainability report (including non-GRI reports) with the GRI in order to be included in the GRI’s Sustainability Disclosure Database
- 61. Thank You Questions & Discussion Simon MacMahon Global Director Advisory Services Sustainalytics Simon.macmahon@sustainalytics.com Kathryn Morrison Associate Analyst Sustainalytics Kathryn.morrison@sustainalytics.com
- 62. Interview with Suncor Energy Q&A
- 63. BREAK
- 64. Panel Discussion
- 65. Master Class III: G4 Presented by GRI http://vimeo.com/67809773?d96a349c52fc4f68eea46a47ccb3d360
- 66. G4 applied to Canadian context How do we scale it up? GRI presenters: Mike Wallace & Marjella Alma Panelists: Bob Willard, sustainability author and expert, The Sustainability Advantage Denise Esdon, Partner Ernst & Young Canada; GRI Board of Directors, Chairwoman GRI’s Technical Advisory Committee Helle Bank Jorgensen, Special Advisor UN Global Compact; B-Accountability Valerie Chort, Partner, National Leader Sustainability, Deloitte Canada, G4 Campaign Sponsor Agenda
- 67. Public & Private Regulation Harmonization & Integration Supply chain & Procurement Sustainability - Mega trends
- 68. Regulatory trends "More governments are making sustainability reporting mandatory.“ In 2006, 58 percent of policies were mandatory; now, more than two thirds (72 percent) of the 180 policies in the 45 reviewed countries are mandatory.
- 69. What’s happening with the neighbors?
- 70. Stock exchange activity May 2010 January 2011
- 71. • GRI G4 & Other Initiatives: • OECD MNE Guidelines • UNGC Principles • UN Guiding Principles on Business and Human Rights • GHG: CDP, Climate Registry, WRI, ISO • GRI G4 & Integrated Reporting Harmonization in G4
- 72. Harmonization: other initiatives Where? Legend, links to OECD/UNGC
- 73. Harmonization: GHG Where? GHG disclosures * G4 WG with CDP & Climate Registry * Aligned with WRI & ISO 14064
- 74. Harmonization: other initiatives Where? Linkage tables in G4
- 75. • GRI & Other Initiatives: • OECD MNE Guidelines • UNGC Principles • UN Guiding Principles on Business and Human Rights • GRI & Integrated Reporting • GRI & Supply Chain Harmonization: Integrated Reporting
- 76. New publication Harmonization - Integrated reporting 76
- 77. • GRI & Other Initiatives: • OECD MNE Guidelines • UNGC Principles • UN Guiding Principles on Business and Human Rights • GRI & Integrated Reporting • GRI & Supply Chain Supply Chain
- 78. Supply Chain – G4-12 Describe the supply chain Supply Chain Disclosures
- 79. Overview of Supply Chain Disclosures in G4, pg 86 Supply Chain Disclosures
- 80. Public & Private Regulation Harmonization & Integration Supply chain & Procurement Sustainability - Mega trends
- 81. •Learning Services Material – G4 Bridging Module July 2013 – Standard course & Pathways I: September 2013 – SME course & Pathways II December 2013 •Reports Services - GSI – Decision on “In accordance” checks: September 2013 – Certified Software for G4 and G4 online Post G4 Launch - Roll out phase