Presentation to 100+ North American utility experts about GRI reporting.

1. Sustainability Reporting Trends
Sustainability Reporting Trends
Utility Environmental
y
Benchmarking Forum
September 2011
Mike Wallace
Director, Focal Point USA
Global Reporting Initiative
Venue, Date wallace@globalreporting.org
+1 212 339 0356

2. Why should this matter to
y s ou d s a e o
you?

3. As a buyer, what information do you expect?
When you buy a house, a car, a product or
service . . .
i
What i f
Wh t information do you d
ti d deserve?
?
Do
D you want it to be useful & comparable?
t t b f l bl ?

4. What is the cu e
a s e current
situation?

5. Range of Terminology
g gy
• CSR - Corporate Social Responsibility
• CC - Corporate Citizenship
p p
• SD - Sustainable Development
• ES - Environmental Sustainability
• BE - Business Ethics
• CE - Corporate Ethics
• CG -CCorporate Governance
t G
• ESG - Environmental, Social & Governance
• IR - Integrated reporting
What is your “Footprint”?
Footprint ?

6. Who
Wh really cares?
ll ?

7. Increasing Stakeholders and Demand
Modern
Due
Diligence

8. Shareholder Initiatives & Coalitions
• Principles for Responsible Investment (PRI) [2006]
– Currently represents over $22 Trillion in investment capital
– 800+ signatories
• Investor Network on Climate Risk (INCR) [2003]
– Currently represents over $9 Trillion in investment capital
– 90+ members
• Carbon Disclosure Project (CDP) [2002]
– Currently represents over $71 Trillion in investment capital
– act on behalf of 551 institutional investors
• Institutional Investors Group on Climate Change (IIGCC) [2001]
– Currently represents $6 Trillion in investment capital
– 70 members
• Interfaith Center on Corporate Responsibility (ICCR) [1972]
– Currently represents over $100 Billion
– 300 members

9. Signatories to the UN PRI (US)
800
800+ international signatories
PARTIAL LIST OF ASSET OWNERS (200):
• AFL-CIO Reserve Fund / AFL-CIO Staff Retirement Plan
• CalPERS CalSTRS
C lPERS / C lSTRS
• Connecticut Retirement Plans and Trust Funds (CRPTF)
• General Board of Pension and Health Benefits United Methodist Church
• Illinois State Board of Investments
• Los Angeles County Employees Retirement Association (LACERA)
• Maryland State Retirement and Pension System
• New York City Employees Retirement System / New York State Local
Retirement System
• SEIU Pension Plans Master Trust
• State Universities Retirement System of Illinois
• Teachers' Retirement System of the City of New York
• Universal Health C Care Foundation of C
f Connecticut

10. Signatories to the PRI (US)
800
800+ international signatories
PARTIAL LIST OF INVESTMENT MANAGERS:
• BlackRock
• Calvert Investments • Boston Trust
• CBRE Investors • Capital Group International
• Domini Social Investments • Clear Bridge Advisors
• JPMorgan Asset Management • MFS Investment
• Kohlberg Kravis Roberts & Co, LLP Management
• Krull C
K ll & Company • Principal Global Investors
• Northern Trust Global Investments • T. Rowe Price
• Prudential Real Estate Investors • Tower Capital Asset
• Russell Investments Management LP
• TD Asset Management Inc.
• The Townsend Group
• TIAA - CREF

11. Mainstream Involvement

12. How would you conduct
y
due diligence?
Can any of this really be
measured?

13. Analysis of Tech Sector
Apple
A l x x 7.95
CA ‐‐‐
Dell x x x x 6.14
EMC x 6.86
Fujitsu x ‐‐‐
HP x x x 7.74
Intel x x x x 7.96
IBM x x x 7.60
7 60
Microsoft x x x x 6.54
Toshiba ‐‐‐
Based on 2010 information

14. Analysis of Tech Sector
Social
Corporate Overall 2010
Company Environment
Governance ESG Score
Leadership
d hi Employees
l Stakeholders
k h ld
Apple 28 3 11 7 14 63
CA, Inc. 25 4 14 16 9 68
Dell 27 8 16 8 21 80
EMC 26 5 19 12 14 76
Fujitsu 13 7 10 10 18 58
HP 26 8 16 10 25 85
Intel n/a n/a n/a n/a n/a n/a
IBM 24 9 20 12 20 85
Microsoft 29 7 15 17 15 83
Toshiba 19 7 13 10 18 67
Maximum
30 10 30 15 30 115
Score
Based on 2010 information

15. Market Evolution
300,000+ data terminals
globally
5,000+ companies and
climbing
Sustainability Aspects
• Emissions
• Energy Consumption
• Human Rights
• Policies
• Board Make Up
Make-Up
Built around GRI

16. ESG Disclosure Score
Company Name Environmental Disclosure Social Disclosure Score Governance Disclosure Overall ESG
Score Score Disclosure Score
2010 2009 2010 2009 2010 2009 2010 2009
Apple ‐‐‐ 12.40 ‐‐‐ 8.77 ‐‐‐ 51.79 ‐‐‐ 20.66
CA, Inc. na na 3.51 3.51 46.43 46.43 11.57 11.57
Dell 37.98
37 98 40.31
40 31 29.82
29 82 38.60
38 60 51.79
51 79 57.14
57 14 39.26
39 26 43.80
43 80
EMC ‐‐‐ 54.26 ‐‐‐ 42.11 ‐‐‐ 66.07 ‐‐‐ 54.13
Fujitsu 55.04 55.04 47.37 45.61 57.14 57.14 53.72 53.31
HP ‐‐‐ 44.19 ‐‐‐ 43.86 ‐‐‐ 57.14 ‐‐‐ 47.11
Intel ‐‐‐ 46.51 ‐‐‐ 50.88 ‐‐‐ 75.00 ‐‐‐ 54.13
IBM ‐‐‐ 41.09
41 09 ‐‐‐ 40.35
40 35 ‐‐‐ 51.79
51 79 ‐‐‐ 43.39
43 39
Microsoft 11.63 na 36.84 14.04 57.14 46.43 28.10 14.05
Toshiba 53.49 56.59 36.84 36.84 53.57 51.79 49.59 50.83

17. Environmental Criteria - Bloomberg
Company Environmental Total Energy Total GHG Emission Water Consumption Total Waste
Names Disclosure Consumption (Th Tonnes) (Thousands of cubic (Thousands of metric
Score (Mwh) meters) tons)
2010 2009 2010 2009 2010 2009 2010 2009 2010 2009
Apple ‐‐‐ 12.40 ‐‐‐ n/a ‐‐‐ 9542.00 ‐‐‐ n/a ‐‐‐ n/a
CA, Inc.
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

18. Social & Governance Criteria - Bloomberg
Company Social Disclosure Score Governance Disclosure score
Name
% Employees Community % Independent % Women on
Score 2010
Score 2009
Score 2010
Score 2009
Unionized Spending Directors Board
(
(Mn $)
2
2
2
2
2010 2009 2010 2009 2010 2009 2010 2009
Apple ‐‐‐ 8.77 ‐‐‐ ‐‐‐ ‐‐‐ ‐‐‐ 51.79 ‐‐‐ 85.71 ‐‐‐ ‐‐‐
CA, Inc. 3.51 3.51 ‐‐‐ ‐‐‐ n/a n/a 46.43 46.43 88.89 90.00 22.22 20.00
Dell 29.82 38.60 ‐‐‐ ‐‐‐ 27.43 40.89 51.79 57.14 81.82 83.33 ‐‐‐ ‐‐‐
EMC ‐‐‐ 42.11 ‐‐‐ 0.00 ‐‐‐ ‐‐‐ ‐‐‐ 66.07 ‐‐‐ 82.00 ‐‐‐ 9.00
Fujitsu 47.37 45.61 46.97 50.35 50.00 20.00 57.14 57.14 30.00 30.00 10.00 0.00
HP ‐‐‐ 43.86 ‐‐‐ ‐‐‐ n/a 52.20 ‐‐‐ 57.14 ‐‐‐ 90.91 ‐‐‐ 18.19
Intel
I t l ‐‐‐ 50.88
50 88 ‐‐‐ ‐‐‐ n/a 100.00
100 00 ‐‐‐ 75.00
75 00 ‐‐‐ 90.91
90 91 ‐‐‐ 27.00
27 00
IBM ‐‐‐ 40.35 ‐‐‐ ‐‐‐ n/a 185.90 ‐‐‐ 51.79 ‐‐‐ 92.86 ‐‐‐ 21.42
Microsoft 36.84 14.04 0.00 0.00 687.50 516.90 57.14 46.43 78.00 80.00 22.22 20.00
Toshiba
T hib 36.84
36 84 36.84
36 84 ‐‐‐ ‐‐‐ 189.00
189 00 3000.00
3000 00 53.57
53 57 51.79
51 79 28.57
28 57 28.57
28 57 0.00
0 00 0.00
0 00

19. Bloomberg Survey
“With over 300,000 users, the Bloomberg
Professional service provides a great
opportunity and platform for you to share
information with current and potential
i f ti ith t d t ti l
investors concerning your Sustainability or
Corporate Social Responsibility program.”
“Our survey is based on the guiding
principles of the GRI framework.”

20. Sustainability Performance
GRI Reporters Presence:
• 95% of the Dow Jones Sustainability Index
• 78% of th FTSE4G d
f the FTSE4Good
• 70% of the Global 100
• 70% of the NASDAQ OMX CRD
Sustainability Index

21. Sustainability Performance
Source: Bloomberg

22. NASDAQ OMX Sustainability Index

23. Bloomberg – Reporters vs. Non

24. How d
H does GRI h l ?
help?

25. GRI’s Vision & Mission
Vision
A sustainable global economy where organizations
manage their economic, environmental, social and
g
governance p performance and impacts responsibly
p p y
and report transparently.
Mission
Mi i
To make sustainability reporting standard practice by
providing guidance and support to organizations
organizations.

26. The GRI Guidelines
Environmental
• EN 3 - Direct energy consumption by primary
energy source
Labor
• 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 taken
Product Responsibility
• PR 6 - Programs for adherence to laws, standards,
and voluntary codes related to marketing
communications, including advertising, promotion,
ad sponsorship.
sponsorship
Economic
• EC 4 – Significant financial assistance received
from government.

27. What
Wh t are we seeing?
i ?

28. GRI Reporting Trends
2000
Year # of Growth
1818
1800
US Reporters in 1999 reports rate
•Bristol-Myers Squibb
1999 11
1600 •GM 1491
2000 44 300%
1400
•P&G
2001 122 177%
•Sunoco
1200 2002 139 14%
1116
2003 166 20%
1000
2004 274 65%
800 2005 373 36%
709
2006 516 38%
600 516 2007 709 37%
373 2008 1116 58%
400
274
2009 1491 34%
200 139 166
122
2010 1818 22%
44
11
0 586 first-time
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
reporters in 2010
G2 G3

29. GRI Reports by Region 2010*
O
Oceania
i Af i
Africa
4% 3%
Northern
America
14%
Europe
45%
Latin America
14%
Asia
20%

30. GRI Reports by Sector 2010*
300
250
200
150
100
50
0

31. Who
Wh are these Reporters?
th R t ?

32. GRI Reports List
http://www.globalreporting.org/GRIReports/GRIReportsList/

33. GRI Reporters
(North American Sample)
( p )

34. US Business Roundtable
• ABB • ITT
• Accenture Johnson & Johnson April 2009
• Abbott Johnson Control
• Alcoa Life Technologies Corp
• American Electric Power McKesson Corp.
• AT&T Merck
• CB Richard Ellis Group Inc.
p Motorola
• CH2MHill Companies, Ltd. NexTera (Formerly FPL)
• Chevron Office Depot
• Chubb Owens Corning
• Citi PepsiCo
• Coca-Cola Pfizer
• Conoco Philips Praxair
• Cummins Proctor & Gamble Co.
• Darden Ryder
• Deloitte Sara Lee
April 2010
• Dow Chemical SAP USA
• Duke Energy SAS
• DuPont Southern Company
• Eastman Kodak Co. Siemens Corp
• EMC Target Corporation
• Exxon Mobil Tyco
• Freeport M M
F t McMoran UAL Corporation
C ti
• General Electric Weyerhauser
• General Motors Whirlpool Corporation
• HSBC Williams
• IBM Xerox
• International Paper

35. What does GRI look like in
action?
Varying Perspectives:
- Customer/Consumer
- Local Community/Mayor
- Peer/Competitor
- Employer/Employee
A unique tour of reporting through the economy

36. Social Responsibility Report
Social
Responsibility
p y
Report

37. Sustainability Journey
CHW Highlights :
1996: “Endorsed Ceres
Principles and committed to
annual public reporting”
2003: CHW started using GRI
G3 Guidelines
2010: “An Enduring Mission”
the title of their last report

38. Topics Covered:
Issues Covered:
• E i
Environmental I di t
t l Indicators
• Economic Indicators
• Social Indicators
• Labor Practices and Decent
Work
• Human Rights
g
• Product Responsibility

39. What do they buy?
What do they want to
know?

40. Healthcare Supply Chain Disclosure
Issues Covered:
• Strategy and analysis
• Organizational p
g profile
• Report Parameters
• Governance, Commitments &
Engagement
• Management Approach and
Performance Indicators:
o Economic disclosure
o Environmental di l
E i l disclosure
o Labor practices and decent work
o Human rights
o Society
o Product Responsibility
P d tR ibilit
Product Responsibility
P d tR ibilit

41. Product Responsibility - GE
PR1 Life cycle stages in which health and safety Our products & services Partial
impacts of products… Environment
PR2 Total number of incidents of non‐compliance Our products & services Partial
with regulations… Environment
PR3 Type of product and service information Product Issues are disclosed on a case‐by‐case basis in the various
required by procedures…
i db d sections of the Citizenship Report. Due to the complexity of the
ti f th Citi hi R t D t th l it f th
business and ongoing litigation related to its range of products and
services, GE does not formally report this indicator.
PR4 Total number of incidents of non‐compliance GE does not report on this metric.
with regulations and…
PR5 Practices related to customer satisfaction… GE does not release customer satisfaction data for proprietary and
competitive reasons. More on customers can be found in the Our
Customers section.
PR6 Programs for adherence to laws, standards and Operational Excellence Partial
voluntary codes related to marketing…
voluntary codes related to marketing Our Products & Services
Our Products & Services
PR7 Total number of incidents of non‐compliance… GE does not report on this metric
PR8 Total number of substantiated complaints GE does not report on this metric
regarding breaches of customer privacy…
PR9 Monetary value of significant fines for non‐ Any significant legal actions and material regulatory fine/settlements Full
compliance with laws and regulations… are disclosed in our public filings.
There were no significant fines for non‐compliance with laws and
regulations concerning the provision and use of GE products and
services during 2009

42. Healthcare Supply Chain Disclosure

43. Healthcare Supply Chain Disclosure
Product Responsibility

44. Healthcare Supply Chain Disclosure
Issues Covered:
• Economic
• Environmental
• Labor Practices and Decent
Work
• Human Rights
• Society
• Product Responsibility

45. Product Responsibility
PR1 Life cycle stages in which health and safety Product Sustainability Review
impacts of products…
PR2 Total number of incidents of non‐compliance Safety
with regulations…
with regulations…
PR3 Type of product and service information Clinical Trials
required by procedures… Product Use
PR4 Total number of incidents of non‐compliance
with regulations and voluntary codes…
with regulations and voluntary codes
PR5 Practices related to customer satisfaction…
PR6 Programs for adherence to laws, standards and Product Use
voluntary codes related to marketing…
PR7 Total number of incidents of non‐compliance… Product Use
PR8 Total number of substantiated complaints
regarding breaches of customer privacy…
PR9 Monetary value of significant fines for non‐
y g Safety
y
compliance with laws and regulations… Product Use

46. Supply Chain Disclosure – Clorox
Product safety
Product sustainability

47. Healthcare Supply Chain Disclosure
Issues Covered:
I C d
• Economic Disclosure
• Environmental Disclosure
• Social Disclosure
• Labor Practices and Decent
Work
• Human Rights
• Society
• Product Responsibility

48. Product Responsibility - Clorox
PR1 Life cycle stages in which health and safety
if l i hi h h l h d f Pg 24‐25
impacts of products…
www.cloroxcsr.com/products‐safety
PR2 Total number of incidents of non‐compliance N/R
with regulations…
PR3 Type of product and service information Pg 25
required by procedures… Corporate Responsibility Report 2010
PR4 Total number of incidents of non‐compliance N/R
with regulations and voluntary codes…
PR5 Practices related to customer satisfaction… Pg 19‐20
Corporate Responsibility Report 2010
PR6 Programs for adherence to laws, standards and Pg 20
voluntary codes related to marketing… Corporate Responsibility Report 2010
PR7 Total number of incidents of non‐compliance… N/R
PR8 Total number of substantiated complaints N/R
regarding breaches of customer privacy…
PR9 Monetary value of significant fines for non‐ N/R
compliance with laws and regulations…

49. Johnson Controls Reporting

50. Johnson Controls Sustainability Journey
Highlights:
• 2004: Johnson Controls
issued their first Sustainability
Report using GRI Guidelines
• 2005-2009: The issued several
Business and Sustainability
Reports
p
• 2010:”Business and Sustainability”
the name of their last report
• 2011: Next report coming soon

51. GRI Index
Highlights:
• Economic
• Environmental
• L b P ti
Labor Practices and D
d Decent
t
Work
• Human Rights
• Society
• Product Responsibility

52. Johnson Controls: Product Responsibility
Customer Health and Safety
PR1 Life cycle stages in which health and safety impacts of
Life cycle stages in which health and safety impacts of Product Safety Assess
Product Safety Assess
products…
PR2 Total number of incidents of non‐compliance with Product Health & Safety Non‐compliance
regulations…
Product and Service Labeling
Product and Service Labeling
PR3 Type of product and service information required by Product Information Labeling
procedures…
PR4 Total number of incidents of non‐compliance with Labeling Non‐compliance
regulations and…
PR5 Practices related to customer satisfaction… Customer Satisfaction
Marketing Communications
PR6 Programs for adherence to laws, standards and Marketing Law Programs
voluntary codes related to marketing…
PR7 Total number of incidents of non‐compliance… Marketing Non‐compliance
Customer Privacy
PR8 Total number of substantiated complaints regarding Customer Privacy Breach
breaches of customer privacy…
Compliance
PR9 Monetary value of significant fines for non‐ Total Non‐compliance Fines
compliance with laws and regulations…

53. GRI Developments & Trends
• Government Uptake
• Supply Chain
• Financial Markets, Private Equity & Exchanges
• Integrated Reporting
• G4 Development

54. Global Regulatory Review
"More governments are making sustainability
"M t ki t i bilit
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

55. US Postal Service

56. US Army

57. Supply Chain Ripple
Customer
Training
Suppliers
GRI Stakeholders

58. Mainstream Uptake
May 2010
May 2010 January 2011
January 2011

59. International Integrated Reporting
Committee (IIRC)
http://theiirc.org

60. Early Adopters of Integrated
Reporting

61. Co
Continuous Improvement:
uous p o e e
G4 Development

62. G4 Development Process
Consensus Based Approach:
• Call for Sustainability Reporting
Topics (closed)
• Registration for Public Comment
g
Period (closed)
• Open Public Comment Period (90-
day - through Nov. 24, 2011)

63. How can GRI support
your efforts?

64. GRI Publications
GRI Guidelines & Template:
GRI Learning Publications:
• Research and Development Publications…

65. GRI Publications
• GRI’s research & development publication
series
• Linkage documents

66. Sector Supplements
Available: Under Development: Pilot Version:
Electric Utilities Airport Operators Automotive
Financial Services Construction & Real Logistics and
Estate Transportation
Food Processing Event Organizers Public Agency
Mining & Metals Media Telecommunications
NGO Oil & Gas Apparel and Footwear

67. Certified Training Partners
g
Over 60 certified training partners globally
Over 60 certified training partners globally
Over 5000 people trained
North America Partners
North America Partners
www.brownflynn.com http://isosgroup.com/ www.leadcanada.net

68. GRI Certified Software & Tools
Program
• PE International
• SAP
• S2D2
• Microsoft
• EnviroCIP
• Enablon
• CSRware
• CA Inc

69. Organizational Stakeholders

70. GRI Regional Representation
Brazil, Australia, India, China & US
2009
2010
2009
2007 2009

71. Thank you
Mike Wallace
Director, Focal Point USA
Global Reporting Initiative
wallace@globalreporting.org
+1 212 339 0356
Twitter: M A Wallace
M_A_Wallace
Linked In:
http://www.linkedin.com/in/mikewallace
Venue, Date