The Evolution of Corporate Reporting

for Integrated Performance

The UN Global Compact-Accenture CEO study on Sustainability 2013 shows that CEO’s recognize the sustainability challenge, but grapple with measuring and valuing their activities

Com

plic

ation

However CEO´s find sustainability difficult to implement and quantify:•38% believe they can accurately quantify the value of their sustainability efforts.•37% see the lack of a link to business value as a barrier to accelerating progress.

Situ

ation

Sustainability is perceived to be very important by CEO´s: •93% believe that sustainability will be important to the future success of their business.•80% view sustainability as a route to competitive advantage in their industry.

• The KPMG study reviewed corporate reports issued between 2012 and 2013 by the 10 largest global companies in each of 10 industry sectors.

• 100 companies (and their associated corporate foundations) invested approximately, 2.5 percent of their pre-tax profits in programs to tackle social and environmental challenges.

• 80% reported none or limited quantified metrics for the impact of the programs they fund.

• 68% reported no detailed investment strategy.

Source : http://www.kpmg.com/Global/en/IssuesAndInsights/ArticlesPublications/sustainable-insight/Pages/unlocking-value-social-investment.aspx

83 88 92 999890 0095 96 97 01

• Formation of Risk Metrics Group through spun off from J.P. Morgan• EIRIS

Research

• Domini Social Index

• Launch of Carbon Disclosure Project (CDP)

• Calvert Social Index

• United Nations Environnent Programme Finance Initiative (UNEP FI)

• KLD Research

• Innovest Strategic Value Advisors

• Sustainable Asset Management (SAM)

• Launch of Dow Jones Sustainability Index (DJSI)

• Formation of oekom research AG through spun- off from ökom GmbH

• Formation of Global Reporting Initiative (GRI)

• Launch of the Dow Jones STOXX Sustainability Index

• Launch of FTSE4 Good Index Series

Source: RobecoSAM

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The evolution (a short history)

The evolution (a short history)

• Vigeo Research • First Chinese Sustainability Index

• S&P EGX ESG Index (Egypt)

• MSCI acquired RiskMetrics Group, Inc.

JSE SRI Index

02 03 05 100904 1106 07 08 12

• Bovespa Corporate Sustainability Index

• S&P ESG India

• NASDAQ OMX - GES Sustainability Index

• Launch of the Dow Jones Sustainability Index North America

• Launch of UNPRI

• Launch of the Ethibel Sustainability Index

• Launch ASPI

• Goldman Sachs Sustain Focus List

• Launch of Dow Jones Sustainability Index Asia Pacific, and Korea

• Thomson Reuters acquired ASSET4

• Bloomberg launched ESG Data Service

• RiskMetrics acquired KLD Research and Innovest

• Merger of Jantzi Research with Sustainalytics

• Foundation of Glass, Lewis & Co.

• Launch of S&P/Hawkamah ESG Pan Arab Index

• Mexican Stock Exchange Sustainability Index

• Acquisition of Responsible Research by Sustainalytics

• Inclusion of ESG ratings in asset manager search process by Mercer

• Launch of BSE- Greenex, India's first green index

Source: RobecoSAM

5

• SASB issues first set of standards for healthcare sector issued

• GRI issues G4 Guidelines

• IIRC issues first <IR> Framework

And the story continued in 2013 ……

Complex landscape

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MVR Disclosure

MVRMeasurement

ValuationTechniques

Ratings & Investment

LowImpact

Lower Impact

Low Impact

Changing the Rules of the

Game

LowerImpact

Disclosure Measurement

ValuationRating & Investment

Future evolution – Convergence, alignment …..

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