Knowledge for a better world

Sunniva Bratt Slette – Researcher, NTNU Sustainability

SMART Conference 29.11.2016

Materiality and integrated reporting for corporate sustainability

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1 Introduction

2 Research Question

3 Theoretical context

4 Methodology

5 Findings

6 Discussion and conclusion

7 Summary

Agenda

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Strategic research areas 2014-2023

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Integration of Sustainable Development Goals

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1 Introduction

2 Research Question

3 Theoretical context

4 Methodology

5 Findings

6 Discussion and conclusion

7 Summary

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How can materiality and integrated reporting assist firms in achieving corporate sustainability?

Research Question

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1 Introduction

2 Research Question

3 Theoretical context

4 Methodology

5 Findings

6 Discussion and conclusion

7 Summary

Knowledge for a better world

Models for sustainable development

“Weak sustainability” (O'Riordan, 1998)

Economy Society

Environment Sustainable development

Economy

Society

Sustainable development

Environment

”Strong sustainability” (After Adams, 2006)

Governance

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Business model for sustainability

Existing business model

Sustainable

value creation

Transformed business model

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Corporate sustainability

Companies or economic actors which

operate within planetary boundaries.

After Griggs et al. (2013)

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Materiality and integrated reporting

Materiality

Address the limited resources of firms and only focus on issues most

material for sustainable value creation for a firm and its stakeholders.

Integrated reporting

A combination of a traditional, financially oriented annual report and the

material parts of a corporation’s sustainability report.

(Eccles & Krzus, 2014)

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Sustainable Wood Industry

1 Introduction

2 Research Question

3 Theoretical context

4 Methodology

5 Findings

6 Discussion and conclusion

7 Summary

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Data from Master’s thesis: 45 interviews with 33 stakeholders

Stakeholders

Financial institutions

Public institutions

Companies

Research and academia

Non-governmental organizations

International organizations

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Sustainable Wood Industry

1 Introduction

2 Research Question

3 Theoretical context

4 Methodology

5 Findings

6 Discussion and conclusion

7 Summary

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• v

Integrated reporting gives transparency, comparability across sectors and highlights “best practice”.

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Eccles’ Statement of Materiality

Relevance motives to integrated reporting and prevents “Death by Reporting”.

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Sustainable Value Matrix

Sustainable Value Matrix Systematizes and integrates firms’ sustainability efforts e

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Source: Atlas Copco, annual report 2015, p. 127

Materiality Matrix e Maps how companies should prioritize their resources for innovation and reporting in relevant areas only.

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Example: Yara’s Materiality Matrix Integrates the SDGs in sustainability efforts e

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1 Introduction

2 Research Question

3 Theoretical context

4 Methodology

5 Findings

6 Discussion and conclusion

7 Summary

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Standardized reporting reduces confusion

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Sustainability reporting closes the gap

Private funding Public funding

Sustainability reporting

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rce:

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o

Transparency for sustainable investments

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Nasjonalt senter for bærekraftige forretningsmodeller kan bidra til å bringe FNs bærekraftsmål inn i næringslivet

Tverrfaglig verdiskaping

Foto: Sunniva Bratt Slette

1 Introduction

2 Research Question

3 Theoretical context

4 Methodology

5 Findings

6 Discussion and conclusion

7 Summary

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Clear indicators benefits sustainability

Economic growth

Environmental protection

Social progress and fair trade

Foto

: Pu

blic

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mai

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ictu

res.

net

Governance and transparency

Corporate sustainability

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“The best way to predict the future is to invent it”

- Alan Curtis Kay, computer scientist (1940)

Knowledge for a better world

sustainabillity_wide

Sunniva Bratt Slette sunniva.slette@ntnu.no +47 922 53 676

NTNU Sustainability – Knowledge for change https://www.ntnu.edu/sustainability

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