The Future of Corporate Sustainability Reporting

© 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Corporate Sustainability Reporting: A Mainstream Practice…

KPMG Survey of Corporate Responsibility Reporting:

Source: KPMG International Survey of Corporate Responsibility Reporting 2011

2013?

© 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

But Still a Maturing Practice…

Data quality continues to be a significant issue among companies issuing sustainability reports with 33% of the largest 250 global companies issuing a restatement to CR report

Update of definitions applied

Restatements due to error or omission

Update of scope

Restatements due to updated calculation methodology

0% 10% 20% 30% 40% 50% 60%

* Source; Audit Analytics, 2011

© 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

And a need to improve effectiveness

“We believe that reporting practices need to change to ensure that businesses are truly valued on what is important, that stakeholders have timely information, and that reports are read and used by investors and other stakeholders.”

-- Peter Bakker, President & CEO, WBCSD

© 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

2013: A Milestone Year

TEEB: Natural Capital Accounting

SASB

UNGC Advanced Reporting Requirements

UK’s Strategic Report Guidelines

IIRC Integrated Reporting Framework

CDP Expands

GRI’s G4 GuidelinesThe B Team

EC Directive

© 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Panel Discussion

Katie Schmitz Eulitt

Director, Stakeholder Engagement

SASB

Mike Wallace

Director, Focal Point USA

GRI

6

© 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

© 2013 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Panel Discussion

Katie Schmitz Eulitt

Director, Stakeholder Engagement

SASB

Mike Wallace

Director, Focal Point USA

GRI

8