Global Sustainability Reporting – a 21st Century Value Proposition for Your Association

Fred Soudain, Public Affairs Director, MCI GroupAnthony Hodge, President, ICMM

Tom Cecich, ASSE Board of Directors, VP Council Professional AffairsMike Wallace, Director, Focal Point USA (GRI)

Remote Meeting Technology

provided by

The growing impact of sustainability among

EU associations ASAE Panel Session

Global Sustainability Reporting – A 21st Century Value Proposition for Your Association

Sunday 7th August 2011 - Fred Soudain, MCI PA Director

World is changingSustainability is one of the defining issues of our time

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Holistic Sustainability

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Trend. Sustainability 2.0 Transition to Mainstream

The transition towards mainstreamingsustainability

• 93% say critical to theirSuccess

• UNGC Accenture Report

Strategic CEO Priority

• Big brands Walmart, Nike, HP, IBM measuring & ranking suppliersSupply Chain

Revolution

• 76% buy green products (Eur & US)

• All brands developing more sustainable products

ChangingConsumerBehaviour

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Innovative Companies Focus on Sustainability

� Innovative companies are embracing sustainability “as a new means to profit”

- Redesign of business models

- Product design protocols

- Production, inventory and distribution methods

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Sustainability is Important to Customers

� End consumers as well as business and government customers are increasingly driving a company’s strategy for developing sustainable products and services

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Sustainability Changes Reporting

� Critical role that innovative, leading-edge technologies play to advance sustainability

� Role of reporting crucial

Staying Thought Leaders & becoming

AGENTS of CHANGE?

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Sustainability: The New Building Block of Successful Associations

IT AFFECTS

Products & Services

Governance & Reporting

Communication

Event & Office Op.

Talent

Education

EU Associations & Sustainability:A Different Context

- A strong policy push in Europe

- An overcrowded regulatory & standards

environment (60 out 142)

- Not necessarily more compulsory schemes

- Next decade perceived as “critical” in the EU

- EU is a “big open sky think tank on sustainability”

���� Sustainability is strongly link to Public

Affairs in Europe

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But Europe is fragmentedThe European Union: 493 million people – 27 countrie s

Member states of the European Union

Candidate countries

EU Associations & Sustainability:What do they do?

- Increased pressure to report

- From reactive to pro-active regulatory advocacy

- Communicating “sustainability” credentials (PA Content)

- More and more Public Private Partnerships (PPPs)

- promoting exchange of best practice between country based associations

The EU associations landscape:

� No more than 30 associations are role model in sustainability strategy and deployment

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Sustainability & US associationsA 2nd chance for global leadership

- Europe leads on sustainability concepts

- But too fragmented for creating global

solutions

- US associations can learn on the link “Public

Affairs & Sustainability”

- … But are better shaped for creating the

“new building block” (Governance, Products & Services, Talent, Edcuation)

���� http://lessconversationmoreaction.com/about/

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Thank you

ICMM: Mining, sustainability, and reporting

Anthony Hodge, Ph.D., P. Eng., PresidentAmerican Society of Association Executives, 7 August 2011

ICMM at a glance

www.icmm.com

Over 800 sites in 62 countries

CEO led

20 member companies

31 Association members

www.icmm.com2

ICMM member companies

www.icmm.com

Vale

Freeport-McMoRan Copper & Gold

Newmont

BHP Billiton Australia

Brazil

Barrick

Goldcorp

Teck

Canada

Mitsubishi Materials

JX Nippon Mining & Metals

Sumitomo Metal Mining

Japan

African Rainbow Minerals

AngloGold Ashanti

Gold Fields

South Africa

XstrataSwitzerland

Anglo American

Lonmin

Rio Tinto

United Kingdom

United States

MMG China

Areva France

Hydro Norway

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Where does ICMM come from?

www.icmm.com4

Where do we come from?

www.icmm.com

4 regional reports4 regional reports4 regional reports4 regional reports23 global workshops 23 global workshops 23 global workshops 23 global workshops 175 research projects175 research projects175 research projects175 research projects50,000 people involved50,000 people involved50,000 people involved50,000 people involved

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ICMM member commitments

www.icmm.com

1. Implement ethical business practices and apply good corporate governance

2. Integrate SD in corporate decision- making

3. Uphold fundamental human rights

4. Manage risks based on sound science

5/6. Improve environment, health and safety performance continuously

7. Conserve biodiversity & conduct integrated land use planning

8. Apply materials and product stewardship

9. Contribute to community development

10. Publicly report, independently assure and engage openly and transparently

Mining and Protected Areas

Mining: Partnerships for Development

Climate Change

Mining and Indigenous Peoples

Mercury Risk Management

Transparency of Mineral Revenues

10 principles for sustainable development 6 position statements

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Delivering on the commitments

www.icmm.com

Robust entry criteria and process

Clear performance expectations

Reporting... and redress?

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Key to effective applied sustainability

www.icmm.com

Addressing the business process ...

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.....as much as its substance

Collaboration, inevitably more in the future, not less

A risk assessment framework for relations between EI companies and public and private security providers to ensure respect for human rights

Multi-stake-holderinitiatives

Industry-ledinitiatives

Verification/publication of company payments and government revenues from EI sector. Civil society involvement to increase government accountability

Mandatory principles, reporting and third party assurance

IFC Performance standards: ‘do no harm’ social and environmental safeguards

NGO calls to further toughen reporting & governance requirements

European Multi-Stakeholder Forum on CSR

US government

Equator principles. Financial industry benchmark for social & environmental risk assessment and management in project financing

Dodd-Frank Act. Reporting requirements for companies that source minerals from the DRC; health and safety performance of coal companies; disclosure of payments to governments

Gov’t / inter-gov’tinitiatives

www.icmm.com9

www.icmm.com

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Oil & Gas

Chemical

Packaging

Electrical utilities

Mining

Forest

ICMM member companies

2010

2007

“4” + “5 (Excellent),” All Stakeholders, 2007–2010

ICMM members’ better performance is evidence that the ICMM principles and guidelines have a very positive effect. In light of the recent oil and gas environmental disasters that have occurred (i.e., the Gulf of Mexico oil spill), it is perhaps not surprising that stakeholders have given the oil and gas industry the lowest rating of all industries tested.

2007 Subsample: Those who have heard of ICMM (n=623)

Transition to Sustainable Development

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Looking Forward (1 of 2)

www.icmm.com

Climate change Water Human rights

Biodiversity Corruption and transparency

Workplace fatalities

Distribution of economic benefits of mining; poverty reduction

Indigenous Peoples’ role in decision-making

Increasing public concerns about:11

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Looking Forward (2 of 2):

www.icmm.com

Intensifying political struggles over distribution of resource rents

Increased emphasis on corporate social and environmental practices

Increased NGO campaigning on a range of issues (community consent, ethical sourcing, biodiversity, energy minerals, chemicals management)

Increasing complexity and breadth of issues facing the industry

Growing recognition that no single interest can address issues effectively (growing need for multi-interest collaboration)

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Growing pressure on disclosure and responsibility

www.icmm.com

Extractive Industries Transparency Initiative (EITI)

and IFC Performance

Standards

Dodd-Frank Wall Street Reform and

Consumer Protection Act

(2010)

SEC guidance on Climate Change

Disclosures (02/10)Principles for Responsible

Investment (800 signatories)

Investor-led calls to listing authorities and stock exchanges to

require companies to consider

sustainability

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The value proposition of reporting on sustainability

www.icmm.com

Better relationships

Respect and integrity

Better reputation

Better decision-making

Transparency and

Accountability

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ICMM at a glance

www.icmm.com

Our role: a catalyst for improving environmental and social performance in the mining and metals industry

ICMM Visionleading mining and metals

companies working together and with others to strengthen the contribution

to sustainable development

Fundamental implicationcreating value for

shareholders while simultaneously creating

value for host communities and societies

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For further information please contact:

Anthony Hodge Ph.D., P. Eng. President

www.icmm.com

www.icmm.com

Tom Cecich

ASSE VP Professional Affairs

August 7, 2011

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Universe of ESG Issues and Opportunities

Source: Hauser Center for Nonprofit Organizations at Harvard University

Source: Hauser Center for Nonprofit Studies, Harvard University

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NIOSH* Science Blog – June 13, 2011

Safety Has Not Been Asked to Prom

“Environmental stewardship and occupational safety share considerable overlap. Both are key sustainability issues, yet the green movement has outstripped workplace safety. What can OSH learn from green?”

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*National Institute for Occupational Safety and Health

Definition of Safety and Health

Sustainability

� This includes the responsibility to ensure that the protection of human life and the safety, health and well-being of workers, customers, and neighboring communities are a primary considerations in any business endeavor.

- ASSE Sustainability Task Force

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Importance of Sustainability

To corporations:

� 93% of global CEOs surveyed said that they felt sustainability issues are critical to their companies’ future success.

� 96% believe that sustainability must be fully integrated into a company’s strategy and operations (up from 72% in 2007).

� Over 3,000 corporations participated in sustainability reporting or reporting for similar issues in 2008 (up from 26 corporations in 1992).

� Almost 80% of the Global 250 companies publicly reported on social and environmental data in 2008 (up from 50% in 2005).

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Importance of Sustainability

To investors:

� Socially Responsible Investing, or SRI, now accounts for $2.71 trillion of the $25.1 trillion, or 12% of the total invested in the American marketplace.

� Nearly 50 socially responsible investing (SRI) indices exist.

� Over 650 investment institutions have signed the Principles for Responsible Investment (PRI), an initiative backed by the UN which “aims to help investors integrate consideration of environmental, social and governance (ESG) issues into investment decision-making and ownership practices, and thereby improve long-term returns to beneficiaries.”

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The Status of Safety and Health in Sustainability

� There is no widely accepted definition of safety and health sustainability.

� No agreements exist on the key performance indicators to measure sustainable safety and health performance, and reporting on safety and health performance is not comprehensive.

� Most corporations include safety as part of their annual corporate social responsibility or sustainability reports but the focus tends to be on lagging indicators. The scope of the questions on many of the widely recognized global indices is limited, terms are undefined, and the focus is on results rather than process.

� In a review of a popular website that lists sustainable development conferences worldwide, there are 295 conferences scheduled for the upcoming 12 months and none has safety and health as its focus.

� There are over 35 sustainability centers or institutes currently in existence, but none has safety and health as its focus. Many have academic affiliations and facilitate research – virtually none of it is related to safety and health.

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Review of Existing Indexes

(from rating organizations)

� Dow Jones Sustainability Index

� The Global Reporting Initiative

� The Pacific Sustainability Index

� FTSE4Good Index

� Wal-Mart Supplier Sustainability Assessment

� Dozens of Socially Responsible Investment Funds

� Financial Analysis and Intelligence Firms

� Bloomberg

� Thomson-Reuters

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So Why Did ASSE Start This Debate?

� Raise awareness of the importance of workplace safety and health in the business community – particularly in the C-Suite

� Add recognition to safety and health profession (the function)

� Add value to the safety and health professional

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What Do We Want To Accomplish?

� Raise the bar for safety and health globally� Influence how safety and health is viewed by key stakeholders

� Influence the way safety and health performance is measured and reported� Improve the quality and comprehensiveness of reporting

� Promote value of leading indicators

� Simplify reporting through promotion and use of global consensus standard index

� Get ahead of the curve for standardized safety and health reporting to stakeholders� Improve and standardize external safety and health rating

systems

� Influence GRI, Investment community, IIRC, NGO’s, Governments, other stakeholders, etc.

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Progress To Date

� Developed draft model safety and health index� Vetting in USA� Seeking international review and buy-in� Needs industry sanity check

� Formed partnership with ASSE, AIHA and IOSH (UK)� Represents 80,000 members - 8,000 international (non US/UK)� Reaching out to INSHPO (13 global associations of safety and health

professionals)

� Incorporate the Center for Safety and Health Sustainability� Have several corporate backers

� Meetings with Global Reporting Initiative (GRI)� US Leader (US)� Global Chief Executive (Amsterdam)� Agreement to partner on GRI Version 4 (due out August 2013)

� Discussion with other reporting stakeholders� Social Investment Forum (US)� KPMG

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ASSE’s

Safety and Health Sustainability Index

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Six Essential Elements of Safety and

Health Sustainability� Values and Beliefs

� Safety and Health Social Responsibility Commitment � Codes of Business Conduct

� Operational Excellence� Integrated and Effective Safety and Health Management

System� Professional Safety and Health Competencies

� Oversight and Transparency� Executive Leadership Oversight of Safety and Health� Transparent Reporting of Key Safety and Health Performance

Indicators

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Center for Safety and Health in Sustainability

Vision

� For all organizations to recognize their responsibility to ensure that the protection of human life and the safety, health and well-being of workers, customers, and neighboring communities are among the primary considerations in any business practices, operations or development.

Goals

� To provide a strong voice and comprehensive leadership for safety and health in shaping sustainability policies.

� To educate the business community on the importance of safety as part of good corporate governance and corporate social responsibility/sustainability.

� To provide new insights into the measurement, management, and impact of safety and health sustainability.

� To be a recognized thought leader for sustainability and corporate social responsibility.

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Venue, Date

Sustainability Reporting & AssociationsAugust 2011

Mike WallaceDirector, Focal Point USAGlobal Reporting Initiative

Sustainability Reporting Trends

Who cares?

Increasing Stakeholders and

Demand

Modern Due

Diligence

What’s the problem?

Range of Terminology

• CSR - Corporate Social Responsibility• CC - Corporate Citizenship• SD - Sustainable Development• ES - Environmental Sustainability• BE - Business Ethics • CE - Corporate Ethics• CG - Corporate Governance• ESG - Environmental, Social & Governance• IR - Integrated reporting

What is your “Footprint”?

What’s the solution?

GRI’s Vision & Mission

GRI’s VisionA sustainably global economy where organizations manage their economic, environmental, social and governance performance and impacts responsibly and report transparently.

GRI’s MissionTo make sustainability reporting standard practice by providing guidance and support to organizations.

The GRI GuidelinesEnvironmental• EN 3 - Direct energy consumption by primary

energy sourceLabor• LA 7 - Rates of injury, occupational diseases, lost

days and absenteeism, and number of work related fatalities by region.

Human Rights• HR 4 - Total number of incidents of discrimination

and actions takenProduct Responsibility• PR 6 - Programs for adherence to laws, standards,

and voluntary codes related to marketing communications, including advertising, promotion, ad sponsorship.

Economic• EC 4 – Significant financial assistance received

from government.

What are we seeing?

11 44122 139 166

274

373

516

709

1116

1491

1818

0

200

400

600

800

1000

1200

1400

1600

1800

2000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

GRI Reporting TrendsYear # of

reportsGrowth rate

1999 11

2000 44 300%

2001 122 177%

2002 139 14%

2003 166 20%

2004 274 65%

2005 373 36%

2006 516 38%

2007 709 37%

2008 1116 58%

2009 1491 34%

2010 1818 22%

• 586 first-time reporters in 2010.

G2 G3

US Reporters in 1999•Bristol-Myers Squibb•GM•P&G•Sunoco

GRI Reports by Region 2010*

Europe45%

Asia20%

Latin America14%

Northern America

14%

Oceania4%

Africa3%

GRI Reports by Sector 2010*

0

50

100

150

200

250

300

Mainstream Uptake

May 2010 January 2011

Environmental Criteria

Company

Names

Environmental

Disclosure

Score

Total Energy

Consumption

(Mwh)

Total GHG Emission

(Th Tonnes)

Water Consumption

(Thousands of cubic

meters)

Total Waste

(Thousands of metric

tons)

2010 2009 2010 2009 2010 2009 2010 2009 2010 2009

Apple --- 12.40 --- n/a --- 9542.00 --- n/a --- n/a

CA, Inc. n/a n/a --- --- n/a n/a --- --- --- ---

Dell 37.98 40.31 676.00 619.90 366.19 406.25 1596.00 1683.00 52.61 100.00

EMC --- 54.26 --- 932.51 --- 386.26 --- --- --- ---

Fujitsu 55.04 55.04 6638.90 7713.89 273.00 428.00 23106.00 24569.00 32.44 29.71

HP --- 44.19 --- 4046.00 --- 1951.00 --- 7647.00 --- 124.48

Intel --- 46.51 --- 5110.00 --- n/a --- 30379.32 --- 44.48

IBM --- 41.09 --- 6323.06 --- n/a --- --- --- 87.33

Microsoft 11.63 n/a --- --- --- --- --- --- --- ---

Toshiba 53.49 56.59 15398.33 15856.11 3078.00 3435.00 52930.00 55800.00 2610.00 291.00

Bloomberg – Reporters vs. Non

Global Regulatory Review"More governments are making

sustainability reporting mandatory.“

• 142 regulatory instruments addressing sustainability reporting exist in over 30 countries

• 65% are classified as mandatory, the rest voluntary

• United States• WH CEQ - EO 13514• USPS, US Army, etc….• GSA• Department of State• SEC

Who are some of these reporters?

GRI Reports Listhttp://www.globalreporting.org/GRIReports/GRIReportsList/

GRI Reporters (North American Sample)

US Business Roundtable• ABB

• Accenture

• Abbott

• Alcoa

• American Electric Power

• AT&T

• CB Richard Ellis Group Inc.

• CH2MHill Companies, Ltd.

• Chevron

• Chubb

• Citi

• Coca-Cola

• Conoco Philips

• Cummins

• Darden

• Deloitte

• Dow Chemical

• Duke Energy

• DuPont

• Eastman Kodak Co.

• EMC

• Exxon Mobil

• Freeport McMoran

• General Electric

• General Motors

• HSBC

• IBM

• International Paper

• ITT

� Johnson & Johnson

� Johnson Control

� Life Technologies Corp

� McKesson Corp.

� Merck

� Motorola

� NexTera (Formerly FPL)

� Office Depot

� Owens Corning

� PepsiCo

� Pfizer

� Praxair

� Proctor & Gamble Co.

� Ryder

� Sara Lee

� SAP USA

� SAS

� Southern Company

� Siemens Corp

� Target Corporation

� Tyco

� UAL Corporation

� Weyerhauser

� Whirlpool Corporation

� Williams

� Xerox

April 2009

April 2010

Organizational Stakeholders

How can GRI support your efforts?

Association Relationship

Step 1: Compare the Overlap- Google “GRI Reports List”- Sort by Industry/Sector/Country

Step 2: Assess the Needs & Interests- Review action & in-action of members- Understand market drivers

Step 3: Engage alongside GRI- Coordinate webinar/presentations- Become GRI Organizational Stakeholder- Enhance understanding & reporting- Inform G4 development

Venue, Date

Mike WallaceDirector, Focal Point USAGlobal Reporting Initiativewallace@globalreporting.org+1 212 339 0356Twitter: M_A_WallaceLinked In: http://www.linkedin.com/in/mikewallace

Thank you