The Business of Sustainability€¦ · Cost reduction is becoming an important reason for...
Transcript of The Business of Sustainability€¦ · Cost reduction is becoming an important reason for...
The Business of Sustainability the future of integrated reporting
What we will cover today
• Evolution of sustainability reporting
• Market expectations and awareness
• Changes in business reporting expectations
• Business complexity in 2014
• Integrated reports-where to start
• EarthCheck’s approach
EarthCheck Product & Service Portfolio
Risk Training and Education Reporting
A Network of Sustainable Destinations and Businesses
Well Intentioned Tick Boxes
ISO
Carbon
The Green Economy
The Green Advantage:
Rio Earth Summit Agenda 21 (1992)
Compliance Based Reporting
Process Based Management Systems
Kyoto Protocol (1997)
Performance Based Reporting
Risk & Resilience
Integrated reporting
Rio +20
1) Superficial
2) Minor discussion
3) Minimal &
Informed
4) Responsible &
Aware
(Understanding)
5) Connecting:
‘Meaningful
Experiences’
A Roadmap – where have we come from?
Reality check: 22 years after RIO…
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TRENDS
Changing customer expectations and awareness
RFP Compliance and carbon reporting
Employee interest and engagement
Water, waste, & energy costs
Targets and benchmarks/metrics
Social media/digital revolution
Sea of labels
Growth of global reporting requirements
Financial reporting
Cost reduction is becoming an important reason for undertaking sustainable practices, but regulatory and compliance requirements, brand enhancement and risk management are among the main drivers.
• The main challenges companies are encountering with regard to reporting relate to finding good consistent data and relevant benchmarks.
• Despite strong sustainability performances by many companies, corporate initiatives are still viewed with scepticism.
• Employees have emerged as a key stakeholder group
• Verification and assurance of data and benchmarking is required
Responsible business is changing
• Safety, governance and risk concerns
• Quality and service
• Employee retention
• Customer satisfaction
Institutionalization of corporate sustainability together with:
Vs
Positioning – Market / Competitive Environment
Accreditation
•National & State Schemes
•Quality Assurance
•GRI (KPMG,PWC etc..)
•CDP
•GSTC
Certification /
Verification
•GGC
•Ecotourism AU
•Green Seal
•Green Key
•Green Key Global
•Travelife
•LECS
•Climate Action Australia
•Rainforest Al.
Metric Organisations
•HARA
•Brighter Planet
•GG Index
•NABERS
Internal Programs
•Green Engage
•LightStay
•Thrive
•Planet21
•SRC
ISO Process
•14001
•26000
•50001
•OH&S
•20121
Capacity
•Internal HR
•Hotel Schools
•University
•Technical Colleges
•RTO’s
Industry Standards
•GSTC
•WTTC/ITP
CARBON ECONOMY
• Visitors are seeking unique experiences
• They are more socially aware
• They will ask questions about your performance & sustainability record
83% of consumers
will trust a company
more if it is
socially responsible.
USA Today
Corporate adoption of sustainability
CSR take-up within a company
The big issues
Water-Energy Nexus: “In a world where water scarcity is a major and growing challenge, meeting future energy needs depends on water availability –and meeting water needs depends on wise energy policy decisions.” World Policy Institute and EBG Capital, March 2011
Next step: Integrated resource management
A sea of tourism certification schemes
Performance-based focused on progress and compliance with both internal and external goals. The awarding body applies criteria, and benchmarks performance rather than intent. Process based focused on setting up management systems within business, and using internal systems for monitoring and improving procedures and practices.
Certification Schemes
Regulatory Reporting
Management Reporting
Financial Reporting
- Annual Reports - Mandated - Disclosures
- operational performance - Business units
Reporting demands are changing
Housekeeping F&B Engineering Finance Purchasing
Budget Silo’s
Financial rankings and ratings
Down Jones Sustainability Index
Carbon Disclosure Project
Fortune’s Most Admired Companies
FTSE 4 Good
Bloomberg SRI
Global Compact
ASX Corporate Governance Principles
Hong Kong Stock Exchange Guidelines
Sustainability is not a logo.
It’s what you do!
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Taking Action
Get the basics right
1. A clear vision, mission and mandate for action
2. Set clear and achievable targets in Business planning
3. Appoint project champions
4. Align with brand message and delivery
5. Celebrate achievements
6. Communicate success with all stakeholders
Understanding integrated reporting
An integrated report is a concise communication about how an organization's strategy, governance, performance and prospects, lead to the creation of value over the short term, medium and long term. The International IR Framework
The value creation process
Integrated reporting guiding principles
The following principles underpin the preparation and presentation of an integrated report, informing the content of the report and how information is presented:
A Strategic focus and future orientation
B Connectivity of information
C Stakeholder relationships
D Materiality
E Conciseness
F Reliability and completeness
G Consistency and comparability
Integrated report elements An integrated report should include the following eight content elements:
A Organizational overview and external environment
B Governance
C Business model
D Risks and opportunities
E Strategy and resource allocation
F Performance
G Outlook
H Basis of preparation
There is no one size fits all model for integrated reporting
Each business is unique, and needs to tailor their integrated reporting to affectively address their mission, size and culture. Guiding Principles and Content elements hold true
3. Certify & Implement
• Online program
• Prepare Health Check
• Tips and resource support
• Collect data and measure performance
EarthCheck Program
Consulting Support
EarthCheck Evaluate
• Relationship manager
• Comprehensive performance review
• Third party audit
• Software platform with resources
• Carbon measurement
• Optional indicators
• Access to EMS/risk templates
• Available in four languages
• International compliance
EarthCheck Certified
Training & Capacity Online Support Full Service
EarthCheck Assessed
2. Commit Measure
WHAT IS EARTHCHECK EVALUATE?
It is a simple, practical tool
It provides a healthcheck
EarthCheck Evaluate is an entry level program that
evaluates an operator’s economic, social and
environmental level of practice
To ensure transparency, a sample of properties are verified
annually against a process aligned to the international
standard ‘International Accreditation Forum Inc (IAF)
MD1:2007’ by an EarthCheck Assessor.
Online registration and payment
•Payment will need to be made to receive access to the software in my EarthCheck)
HOW DO YOU USE EARTHCHECK EVALUATE?
Online registration and payment
•Payment will need to be made to receive access to the software in my EarthCheck)
Access to My EarthCheck
•Proceeding through each section of the checklist to identify if best practice has been implemented
•Identify areas of improvement
•EarthCheck offers online services at a fixed cost if needed to progress
HOW DO YOU USE EARTHCHECK EVALUATE?
Online registration and payment
•Payment will need to be made to receive access to the software in my EarthCheck)
Access to My EarthCheck
•Proceeding through each section of the checklist to identify if best practice has been implemented
•Identify areas of improvement
•EarthCheck offers online services at a fixed cost if needed to progress
Checklist is submitted
•An overall score is calculated from the number of positive responses per section
•The higher the number of positive responses the better the score!
•Additionally an individual score per section is calculated to give the operator an indication of their strengths and weaknesses within the overall score
HOW DO YOU USE EARTHCHECK EVALUATE?
Online registration and payment
•Payment will need to be made to receive access to the software in my EarthCheck)
Access to My EarthCheck
•Proceeding through each section of the checklist to identify if best practice has been implemented
•Identify areas of improvement
•EarthCheck offers online services at a fixed cost if needed to progress
Checklist is submitted
•An overall score is calculated from the number of positive responses per section
•The higher the number of positive responses the better the score!
•Additionally an individual score per section is calculated to give the operator an indication of their strengths and weaknesses within the overall score
Achievement is granted
•The scores align to an EarthCheck Rating with 1 star being the worst and 5 stars being the best
•Access to achievement logo online
HOW DO YOU USE EARTHCHECK EVALUATE?
Online registration and payment
•Payment will need to be made to receive access to the software in my EarthCheck)
Access to My EarthCheck
•Proceeding through each section of the checklist to identify if best practice has been implemented
•Identify areas of improvement
•EarthCheck offers online services at a fixed cost if needed to progress
Checklist is submitted
•An overall score is calculated from the number of positive responses per section
•The higher the number of positive responses the better the score!
•Additionally an individual score per section is calculated to give the operator an indication of their strengths and weaknesses within the overall score
Achievement is granted
•The scores align to an EarthCheck Rating with 1 star being the worst and 5 stars being the best
•Access to achievement logo online
HOW DO YOU USE EARTHCHECK EVALUATE?
Online registration and payment
•Payment will need to be made to receive access to the software in my EarthCheck)
Access to My EarthCheck
•Proceeding through each section of the checklist to identify if best practice has been implemented
•Identify areas of improvement
•EarthCheck offers online services at a fixed cost if needed to progress
Checklist is submitted
•An overall score is calculated from the number of positive responses per section
•The higher the number of positive responses the better the score!
•Additionally an individual score per section is calculated to give the operator an indication of their strengths and weaknesses within the overall score
Achievement is granted
•The scores align to an EarthCheck Rating with 1 star being the worst and 5 stars being the best
•Access to achievement logo online
HOW DO YOU USE EARTHCHECK EVALUATE?
Successful Sustainability Programs 1. Top down management commitment including
a written environment and social sustainability policy.
2. Dedicated and trained staff responsible for taking the written policy forward.
3. Management tools, programs and processes that allow you to collect and assess your destination’s environmental footprint (including energy, water and waste etc.) “If you can’t measure it, you can’t manage it”.
4. Developing and implementing environmental and social management and improvement systems.
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