Post on 04-Apr-2018
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
1/43
Sustainability ReportingCII Karnataka
Latha Sankarnarayan
COO, Green Evangelist
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
2/43
Sustainable Development
25 years of a
definition that forced
to the world to think
how we live
The commission was
established by the UN
to rally nations and
pursue sustainabilitytogether
Sustainable development
is development that meets
the needs of the presentwithout compromising theability of futuregenerations to meet their
own needs.- Brundtland Commission
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
3/43
But why for Businesses?
With great power comesgreat responsibility
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
4/43
An Apple can solve the Euro Crisis
At the Apple shareholders
meeting, one investor
turned to the company's
CEO and suggested that
Apple buy out Greece for
the cash it had in hand
USD 97 Billion
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
5/43
Apple - Power
Courtesy mbaonline.com
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
6/43
Along come the questions
From investors, shareholders, employees, the
NGOs in China, contract workers
Where did Apple get so much money from?
Where will it go?
How much are they giving back to society?
How many jobs does it translate to its home
country USA?
Is iphone metaphor for innovation coming at
the cost of Chinese workers?
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
7/43
Questions raised, answers few
Apple shoots down shareholder proposals:
Asked Apple to establish a sustainability
report
the other called for Apple to establish a board-
of-directors sustainability committee
Most valued company but not most
responsible?
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
8/43
Dow Jones Sustainability Index (DJSI) 2010
DJSI World Index DJSI Europe Index DJSI Eurozone Index1. Adidas - Germany2. BMW AG - Germany3. Coca-Cola Co USA4. Christian Dior S.A. - France5. Halliburton Co. USA6. Hewlett Packard Co. USA7. Hyundai S Korea8. Intel Corp. USA9. Mitsubishi Corp. Japan10. McDonalds Corp. USA11. Nokia Corp. - Finland12. Panasonic Corp. Japan
13. Rolls-Royce Group PLC UK14. Samsung Electronics SKorea
15. Siemens AG - Germany16. Starbucks Corp. USA17. Toshiba Corp. Japan18. Unilever - UK
19. AB Volvo - Sweden20. Woodside Petroleum - AUS
1. Adidas AG - Germany2. Air France - KLM - France3. Astrazeneca PLC UK4. BMW AG- Germany5. Coca-Cola Hellenic Bottling
Co. S.A. Greece6. Deutsche Bank AG - GER7. European Aeronautic
Defence & Space - France8. LOral S.A. France9. LVMH Moet Hennessy Louis
Vuitton France
10. Nestle S.A. Switzerland11. Siemens - Germany12. ThyssenKrupp AG -
Germany13. Volkswagen AG Germany14. AB Volvo Sweden15. Wolters Kluwer N.V.
Netherlands16. Xstrata PLC UK
1. Abertis InfraestructurasSpain
2. Adidas AG - Germany3. ArcelorMittal - France4. BMW AG Germany5. Christian Dior S.A. France6. Enel S.p.A. Italy7. Finmeccanica S.p.A. Italy8. Fortum Oyj Finland9. Indra Sistemas S.A. Spain10. Infineon Technologies GER11. LeGrand S.A. France
12. Puma AG Rudolf DasslerSport Germany13. Siemens AG Germany14. Suez Environement
France15. ThyssenKrupp AG
Germany
M.I.A.: Apple
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
9/43
In contrast
Samsung regularly publishes annual
sustainability report
It has a broad sustainability program focusing
on 6 areas: Talent Management, Integrity
Management, Green Management, Social
Contributions, Products and Services, and
Partner Collaboration
The Dow Jones Sustainability Index (DJSI)
annual review 2011 has named Samsung as the
worlds most sustainable technology company
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
10/43
Apple vs Samsung
Does it mean Samsung is more responsible
than Apple
Probably not
However, its a qualitative statement, as Apple
certainly comes across as less TRANSPARENT
than Samsung
And, hence to stakeholder Apple appears
ambiguous
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
11/43
Hence the case forSustainability Reporting
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
12/43
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
13/43
The why of reporting - Benefits
From a Stakeholder perspective:
Makes businesses more transparent
Gauge the companys true value
Understand its tangible and intangible assests
Follow the progress of the company in non-
economic aspects
Builds trust, and enhances the corporate
reputation
Opens dialogue with the stakeholders
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
14/43
The why of reporting - Benefits
From Internal Company perspective
Risk Mitigation
Being articulate helps define the strategy
Long term management plans
Benchmarking and assessment against the best,
laws and performance
Setting goals and implementation
Streamline process, increase efficiency
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
15/43
Peer Pressure
Recommendation of the UN Secretary General'sHigh Level Panel on Global Sustainability
Rio+20 negotiating text -Zero Draft: A global
policy framework requiring all listed and large
private companies to consider sustainability issues
and to integrate sustainability information within
the reporting cycle.
Governmental pressure
Supply-chain pressure (e.g. PUMA)
Customer pressure (e.g. IT companies)
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
16/43
IT PUTS THE HOUSE IN ORDER;WITH SYSTEMATICAND LONG-TERM VIABILITY
In a nutshell
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
17/43
Different forms ofdisclosure
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
18/43
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
19/43
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
20/43
Indian Disclosureperspective
Ministry of Corporate
Affairs Voluntary
guidelines
Disclose: 2.5% ofrevenues for CSR
SEBI ruling on top 100
companies as per market
capitalisation
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
21/43
Global Reporting Initiative (GRI)
The contribution of GRI to sustainabledevelopment is the construction of a Reporting
Framework to help organisations to measure,
understand, improve and report on their
sustainability performance.
A GRI sustainability reporting process is an
ongoing cycle of engagement to understand,debate, measure and improve internal
processes, and to monitor and communicate
performance.
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
22/43
GRI-G3
GRI-G3ECONOMIC
EconomicPerformance
Market Presence
Indirect EconomicImpacts
ENVIRONMENT
Materials
Energy
Water
Biodiversity
Emissions,
Effluents, andWaste
Products andServices
Compliance
Transport
LABOR PRACTICESAND DECENTWORK
Employment
Labor
ManagementRelations
OccupationalHealth and Safety
Training andEducation
Diversity andEqual Opportunity
HUMAN RIGHTS
Investment andProcurementPractices
Non-discrimination
Freedom ofAssociation andCollectiveBargaining
Abolition of ChildLabor
Prevention ofForced andCompulsory Labor
Complaints andGrievancePractices
Security Practices
Indigenous Rights
SOCIETY
Community
Corruption
Public Policy
Anti-CompetitiveBehavior
Compliance
PRODUCTRESPONSIBILITY
Customer Healthand Safety
Product andService Labelling
MarketingCommunications
Customer Privacy
Compliance
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
23/43
GRI reporting process
Prepare Connect
Define
Monitor Communicate
A GRI sustainability process is an ongoing cycleof engagement to understand, debate,
measure ad improve internal processes and to
monitor and communicate performance
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
24/43
Reporting phasesWho'sresponsible
Who'sinvolved
DeadlineBudgetneeded
Internal kick off meeting to identifyorganizational goals and impacts and agree onreporting process
Map and prioritize stakeholders then consultthem
Combine two inputs (internal and externalengagement) and write recommendation
Approve indicators to monitor, report on andfuture goals
Check where you are (use of self assessmenttools)
Change business procedures and managementsystems if necessary
Monitor and control the indicators
Define communication method and plan
Come to conclusions (both negative andpositive) and approve conclusions to bepublished
Write the report, communicate and distributethe report
Overall project coordinator
Overall decision makers
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
25/43
Content of a GRI report
Strategy and Profile:
What sets the overall context of understanding organizational
performance such as its strategy, profile and governance
Management Approach: How an organisation addressed a given set of topics in order to
provide context for understanding performance in a specific
area
Performance Indicators: Indicators that elicit comparable information on the economic,
environmental and social performance of the organisation
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
26/43
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
27/43
Application Levels
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
28/43
What are application levels?
The Application Levels indicate the extent towhich the G3 Guidelines have been applied in
sustainability reporting. They communicate which
part of the Reporting Framework has been
addressed - which set of disclosures, varying withthe different Levels. Application Levels reflect the
degree of transparency in reporting.
The Levels do not give an opinion on the
sustainability performance of the reportingorganization, the quality of the report, or on
formal compliance with the G3 Guidelines
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
29/43
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
30/43
Materiality
Definition of materiality
Stakeholder Identification
Issues identification
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
31/43
Stakeholder Inclusiveness
Identification
Dialogue
Engagement
Issues
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
32/43
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
33/43
Investors
CommunityGovt./
Regulators
CustomersEmployeesSuppliers/Vendo
rs/Partners
Industry
Association
Stakeholders
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
34/43
Stakeholder Mapping
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
35/43
GRI-G3 index
http://www.globalreporting.org/http://localhost/var/www/apps/conversion/current/GRI/G3_QuickReferenceSheet.pdfhttp://localhost/var/www/apps/conversion/current/GRI/G3_QuickReferenceSheet.pdfhttp://www.globalreporting.org/http://www.globalreporting.org/http://www.globalreporting.org/7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
36/43
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
37/43
About Green Evangelist
Influencing business
karma
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
38/43
An introduction
GREEN EVANGELIST
A sustainability consulting company
Provides effective strategies and solutions that
enable your business to become sustainable
through
o Stakeholder engagement, risk prediction, capitalizing
opportunities and enabling transparent business
operations.
Started in Feb 2009 and influencing business
karma in small but effective ways
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
39/43
Our clientele
SterliteIndustries
Dr. Reddys
Ultratech
Cement
Tata Tinplate
Hindalco
Nasscom
Sesa Goa
Mind tree
Akshayakalpa
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
40/43
Recognition
Outlook Money
The Hindu
Businessline
Yourstory.in,
a Network 18
company
Bangalore Mirror
http://119.82.71.56/article.aspx?265533http://www.thehindubusinessline.com/todays-paper/article1014753.ece?viewImage=1http://www.thehindubusinessline.com/todays-paper/article1014753.ece?viewImage=1http://yourstory.in/2010/07/sejal-sheth-and-latha-sankarnarayan-founders-green-evangelist-influencing-business-karma/http://yourstory.in/2010/07/sejal-sheth-and-latha-sankarnarayan-founders-green-evangelist-influencing-business-karma/http://yourstory.in/2010/07/sejal-sheth-and-latha-sankarnarayan-founders-green-evangelist-influencing-business-karma/http://goo.gl/Ui1SOhttp://goo.gl/Ui1SOhttp://yourstory.in/2010/07/sejal-sheth-and-latha-sankarnarayan-founders-green-evangelist-influencing-business-karma/http://yourstory.in/2010/07/sejal-sheth-and-latha-sankarnarayan-founders-green-evangelist-influencing-business-karma/http://yourstory.in/2010/07/sejal-sheth-and-latha-sankarnarayan-founders-green-evangelist-influencing-business-karma/http://yourstory.in/2010/07/sejal-sheth-and-latha-sankarnarayan-founders-green-evangelist-influencing-business-karma/http://www.thehindubusinessline.com/todays-paper/article1014753.ece?viewImage=1http://www.thehindubusinessline.com/todays-paper/article1014753.ece?viewImage=1http://119.82.71.56/article.aspx?2655337/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
41/43
Associations
Enact Sustainable Strategies, Sweden
Swedens leading sustainability consulting firm
Clientele include AstraZeneca, Volvo, Vattefall,
Trelleborg, Pernod Ricard, Heidelberg CementGroup, Swedish Institute amongst others
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
42/43
Our areas of focus in Sustainability
SustainabilityAssessment
Strategic Solutions
Reporting
Aligning Social initiativeswith Business
Sustainable Training
Workshops on specificissues
Employee/stakeholdertraining and awareness
Sustainability
Communications
StakeholderEngagement Framework
Stakeholder dialogue
Industry Wide StudyResearch
Benchmarking and BestPractices
Supply chain study
Influencing Business Karma
7/31/2019 Presentation of Why Sustainability Reporting presented at CII Karnataka
43/43
Thank You
Latha Sankarnarayan
URL: www.greenevangelist.com
Email:latha.sankarnarayan@greenevangelist.com
http://www.greenevangelist.com/http://www.greenevangelist.com/