Description
This is a presentation about the sustainability reporting.
What should a company report?
Reporting Principles and Guidelinescan report? Which companies
GRI Application Levels Standard Disclosures
1
2
•Materiality •Stakeholder inclusiveness
• Any Size, Location or Sector • Whether Small and Large
Sustainability reporting is the practice of It is the Global Reporting Initiative’s (GRI) 4 •Completeness To support this expectation, and to measuring, disclosing, and being accountable Principles mission to fulfil clearly and openly about and communicate this need by providing a Sector Standard •Balance 5 Protocols to Guidelines sustainability, a Management Approach trusted and globally shared framework offor credible Disclosures framework Supplements 6 •Comparabilityinternal and external stakeholders concepts, consistent language, and metrics is sustainability reporting that can be used by for 7 •Accuracy organizational performance towards the goal of required organizations of any size, sector, or location sustainable development •Timeliness Performance Indicators
•Sustainability Context • Geographically dispersed 3 Economic Environmental Social Strategy and Profile
How to Report?
•Reliability
What to report?
8 9
10
•Clarity
The GRI Reporting Framework
ENERGY
EN4 INDIRECT ENERGY CONSUMPTION BY PRIMARY SOURCE 1. Energy consumption upstream from org. boundary 2. Intermediate energy eg: electricity EN3 DIRECT ENERGY CONSUMPTION BY PRIMARY ENERGY SOURCE 1. Energy efficiency 2. Operational costs 3. Environmental footprint
WATER
BIODIVERSITY
EN11 EN8 LOCATION OF LAND TOTAL WITHDRAWAL BY OWNED,LEASED,MANAGED SOURCE IN OR ADJACENT TO 1. Baseline figure to PROTECTED AREAS calculate efficiency. 1. Identify risks and 2. Org. importance as a manage impact on water user biodiversity
EN 12 SIGNIFICANT IMPACTS OF ACTIVITIES, PRODUCTS & SERVICES ON BIODIVERSITY IN PROTECTED AREAS AND OUTSIDE PROTECTED AREAS 1. Direct and indirect impacts 2. Developing a strategy to mitigate such impacts.
EMISSIONS, EFFLUENTS & WASTE
MATERIALS
EN2 % OF MATERIALS USED THAT ARE RECYCLED 1. Helps reduce demand for virgin materials 2. Lowers overall cost of production
ENVIRONMENT PERFORMANCE INDICATORS
EN28 FINES & SANCTIONS FOR NON-COMPLIANCE WITH ENVIRONMENTAL LAWS 1. Greater compliance reduces financial risk 2. Gaining new permits EN27 % OF PRODUCTS SOLD & PACKAGING MATERIAL RECLAIMED 1. Designing recyclable products. 2. Extent to which they are reused.
EN16 TOTAL DIRECT & INDIRECT GREENHOUSE GAS EMISSIONS BY WEIGHT 1. Org. can control the volumes and get rewarded for the same.
EN21 TOTAL WATER DISCHARGE BY QUALITY AND DESTINATION 1. Ecological impact 2. Improving the quality of discharged water reduces risks.
EN1 MATERIAL USED BY WEIGHT OR VOLUME 1. Reducing Material Intensity 2. Conservation of global resource base 3. Monitoring costs
COMPLIANCE
PRODUCTS & SERVICES
EN26 INITIATIVES TO MITIGATE ENVIRONMENTAL IMPACTS OF PRODUCTS & SERVICES AND EXTENT OF IMPACT MITIGATION 1. Actions taken by org. in product & service design and delivery 2. Making products future ready.
PR6 PROGRAMS FOR ADHERENCE TO LAWS , STANDARDS, AND PR3 VOUNTARY CODES RELATED TO TYPE OF PRODUCT & SERVICE INFORMATION REQUIRED BY PROCEDURES, & PERCENTAGE MARKETING COMMUNICATIONS OF SIGNIFICANT PRODUCTS & SERVICES SUBJECT TO SUCH INFORMATION INCLUDING ADVERTISING, REQUIREMENTS PROMOTIONS & SPONSORSHIP 1. Information on sustainability impacts of products & services (positive & negative) necessary for end users to make informed purchasing choices. 1. Marketing communications 2. Linked to compliance with certain type of regulations and codes. that do not conform to generally 3. Extent to which product labeling addresses product or service accepted ethical or cultural impacts on sustainability. standards, privacy intrusion, dual
PRODUCT & SERVICE LABELING
MARKETING COMMUNICATION
CUSTOMER HEALTH & SAFETY
PR1 LIFE CYCLE STAGES IN WHICH HEALTH AND SAFETY IMPACTS OF PROCUCTS & SERVICES ARE ASSESSED FOR IMPROVEMENT, AND PERCENTAGE OF SIGNIGICANT PROUCTS AND SERVICES CATEGORIES SUBJECT TO SUCH PROCEDURES 1. Efforts made buy the organization to address health and safety across the life cycle of product/service. 2. Direct impact on organization’s reputation. 3. Legal and financial risk due to product recall. 4. Market differentiation.
PRODUCT RESPONSIBILITY PERFORMACE INDICATORS
standards, or attempts to influence vulnerable audience such as children can be a major issue for stakeholders. 2. Inappropriate marketing approaches may incur risks for organizations like alienation of customers &other stakeholders, damage to reputation, financial costs and legislative actions.
PR9 MONETARY VALUE OF SIGNIFICANT FINES FOR NON-COMPLIANCE WITH LAWS AND REGULATIONS CONCERNING THE PROVISION AND USE OF PRODUCTS & SERVICES 1. Identification of administrative or judicial sanctions levied against the organization for failure to comply with laws and regulations. 2. Helps in ensuring that the organization does not deal in any product which contravenes statutory regulation. 3. Mitigate risk and expand further.
COMPLIANCE
1. Direct Economic Value Generated Why? Creating wealth Economic Wealth Direct monetary value added EVG&D
3. Orgn.’s Benefit plan obligations Why? Attract & maintain a stable workforce Long term financial & strategic planning received from the Govt.
Economic Performance
An organization’s 2. Finance Implications of economic performance is Financial assistance 4. fundamental to understanding the organization Why? Why?
Physical risks like storms, Climate change Develops a balanced picture and its basis for sustainability. What is reported transactions between theof Regulatory risks the
organization and the local govt. less frequently, butCost implications by readers of often desired Adopting newer technologies
Market Presence reports, is the organization’s sustainability 2. Locally based hiring 1. Locally based suppliers
Why? Why? contribution to the sustainability of the can understand local Mgmt. Supporting local businesses
economic systems Indirectly attract investment needs in which the organization
Indirect economic impact
operates.
Social License to operate Strategy – sure supply, stable economy & efficient Maintain community relations
Enhance human capital Benefit to local communities Social license to operate
1. Development of Infrastructure for public benefit Why? Orgn.’s capital contribution to the economy Improving quality of life for the local communities
Employment
Labor/Management Relations
Occupational Health and Safety
The structure of the Labor Indicators is broadly opportunity Diversity and equal based on the concept of decent work. The set Training and
1.Total Workforce Why? Scale of operations Orgn. Structure Business Model Strategy 2.Total Turnover Why? Dissatisfaction Potential inequity Productivity Costs
begins with disclosures on the scope and
education
1. Collective diversity of the reporting organization’s Bargaining 1. Work related Why? workforce, emphasizing aspects Breakdown of diseases,fatalities 1. of gender and Human right Why? employees in Stable society age distribution Orgn.’s duty categories Avg. Hrs./yr. of Freedom Why? training/emplyee Responsible mgmt. Low absenteeism Staff morale Diversity Why? Productivity Human capital Maintaining & 2. Minimum improving human notice periods 2. Health 2. Ratio of basic capital Why? salary of men to Investment on Timely discussions Education Why? women employees Minimize adverse Best practice Why? Motivation impacts Prevention better Equality Maintain employee than cure Firm’s reputation & satisfaction Social license legal challenges
Community
Corruption
Public policy
Compliance
The Society Performance Indicators focus on the
impacts organizations have on the communities in
Impacts of operations on Participation in public which 1. % of BUs analyzed for how the organization’s Monetary value of they operate, and communities policy development and fines / non-monetary Risks related to lobbying interactions with other social institutions are managed sanctions for noncorruption Why? compliance Better management of and mediated. In particular, information is sought on both 2. % of employees trained Why? +ve and –ve impacts This info. provides insight Why? in orgn.’s anti-corruption bribery policies and corruption, involvement extent to which into the in public policy- Conformity to certain Brand and reputation publicly-expressed performance standards making,3. monopoly practices, positions on sustainability and compliance with Actions taken in Ability to maintain and are consistently embedded Reducing financial risks response to incidents laws and regulations of other than labor and initiate existing operations across the organization and corruption aligned across di?erent Reputation environmental. units Why? Brand and reputation Legal proceedings Basic socially responsible conduct
Investment and Procurement Practices Non Discrimination
1.% agreements going through HR screening Why? HR integration into economic decisions Strategy to reduce risks Reputation Stability 2.% suppliers going through HR screening Why? Outsourcing Reputation Stability
Human Rights Performance Indicators elicit
disclosures on the impacts and activities an organization has on the civil and political
Freedom of association and collective bargaining
Total no. of Child Labor incidents of rights of its stakeholders. Human Rights human Risks to freedom Forced and discrimination of association Indicators focus on how the reporting compulsory labor Why? Incidents of child Why? Anti-discrimination maintains and respects the basic labor organization Fundamental policy is a key Incidents of provision of UN rights of requirement of a human being, whereas the Indicators forced labor Why? Declaration of HR international Basic socially on Labor Practices re?ect the quality of the conventions, social responsible Why? Opportunities must conduct legislation and Not subjected to exist for employees work and the working environment. guidelines forced labor is a to exercise their Key principle of Fundamental right to freedom major HR provision of UN and collective declarations Declaration of HR bargaining
Economic Performance Indicators
Market Presence & Climate Economic Performance
•Did not report •No explicit trends •Value distributed lists •Local Programs
Economic Performance
•Strength of diverse business •Retained growth trajectory and created wealth •Customer focused approach •Employees shape an organization
Indirect Economic Impact
Environment Performance Indicators
Energy
• Energy Efficiency & Conservation Guidelines • Reduced energy consumption by more than 8.4 million kW-hrs • Enhancing employee energy use awareness • Daytime cleaning program
Water
• Conservation > 835,000 gallons • Deployment of low flush valves • Automatic faucet sensors • Waterless and/or low flow urinals, • Reclamation of grey water for irrigation.
Emissions
•Carbon •Consumption Footprint •Conservation • Make the data •Initiatives collection more userfriendly • GHG % balanced
Energy
Water
• Embedded ingredient • Measure and Monitor usage • Water Efficiency
Emissions
• Aligning operations • Air dispersion analysis • Green buildings
Other Performance Indicators
Society
•Compliance •Community -Education -Disaster Relief
Labor & HR
•Compensation •Diversification •Training
Product
•Customer Safety •Privacy •Compliance
Society
•Compliance •Corruption •Community
Labor & HR
•Talent Acquisition •Training •Safety •Welfare
Product
•Customer Safety •Satisfaction •Innovations -Fired Heaters -Clean Energy Equipment
Sustainability Reporting - A Business
•Shows Company commitment to sustainable development
•Highlights the areas for improvement for better business performance, operational efficiency and cost savings •Analysis of energy, water, waste and purchases provide valuable information for making decisions on capital expenses, retrofits and programs
•Demonstrates the long-term sustainable financial value of the organization
•Helps to attract capital from green investors by identifying new markets and business opportunities
•Helps attract and retain quality staff
•Improves communication, trust and reputation with all stakeholders
GRI Home - http://www.globalreporting.org/Home Fluor Sustainability Report 2009 L&T Sustainability Report 2009
Thank You!
doc_695174681.pptx
This is a presentation about the sustainability reporting.
What should a company report?
Reporting Principles and Guidelinescan report? Which companies
GRI Application Levels Standard Disclosures
1
2
•Materiality •Stakeholder inclusiveness
• Any Size, Location or Sector • Whether Small and Large
Sustainability reporting is the practice of It is the Global Reporting Initiative’s (GRI) 4 •Completeness To support this expectation, and to measuring, disclosing, and being accountable Principles mission to fulfil clearly and openly about and communicate this need by providing a Sector Standard •Balance 5 Protocols to Guidelines sustainability, a Management Approach trusted and globally shared framework offor credible Disclosures framework Supplements 6 •Comparabilityinternal and external stakeholders concepts, consistent language, and metrics is sustainability reporting that can be used by for 7 •Accuracy organizational performance towards the goal of required organizations of any size, sector, or location sustainable development •Timeliness Performance Indicators
•Sustainability Context • Geographically dispersed 3 Economic Environmental Social Strategy and Profile
How to Report?
•Reliability
What to report?
8 9
10
•Clarity
The GRI Reporting Framework
ENERGY
EN4 INDIRECT ENERGY CONSUMPTION BY PRIMARY SOURCE 1. Energy consumption upstream from org. boundary 2. Intermediate energy eg: electricity EN3 DIRECT ENERGY CONSUMPTION BY PRIMARY ENERGY SOURCE 1. Energy efficiency 2. Operational costs 3. Environmental footprint
WATER
BIODIVERSITY
EN11 EN8 LOCATION OF LAND TOTAL WITHDRAWAL BY OWNED,LEASED,MANAGED SOURCE IN OR ADJACENT TO 1. Baseline figure to PROTECTED AREAS calculate efficiency. 1. Identify risks and 2. Org. importance as a manage impact on water user biodiversity
EN 12 SIGNIFICANT IMPACTS OF ACTIVITIES, PRODUCTS & SERVICES ON BIODIVERSITY IN PROTECTED AREAS AND OUTSIDE PROTECTED AREAS 1. Direct and indirect impacts 2. Developing a strategy to mitigate such impacts.
EMISSIONS, EFFLUENTS & WASTE
MATERIALS
EN2 % OF MATERIALS USED THAT ARE RECYCLED 1. Helps reduce demand for virgin materials 2. Lowers overall cost of production
ENVIRONMENT PERFORMANCE INDICATORS
EN28 FINES & SANCTIONS FOR NON-COMPLIANCE WITH ENVIRONMENTAL LAWS 1. Greater compliance reduces financial risk 2. Gaining new permits EN27 % OF PRODUCTS SOLD & PACKAGING MATERIAL RECLAIMED 1. Designing recyclable products. 2. Extent to which they are reused.
EN16 TOTAL DIRECT & INDIRECT GREENHOUSE GAS EMISSIONS BY WEIGHT 1. Org. can control the volumes and get rewarded for the same.
EN21 TOTAL WATER DISCHARGE BY QUALITY AND DESTINATION 1. Ecological impact 2. Improving the quality of discharged water reduces risks.
EN1 MATERIAL USED BY WEIGHT OR VOLUME 1. Reducing Material Intensity 2. Conservation of global resource base 3. Monitoring costs
COMPLIANCE
PRODUCTS & SERVICES
EN26 INITIATIVES TO MITIGATE ENVIRONMENTAL IMPACTS OF PRODUCTS & SERVICES AND EXTENT OF IMPACT MITIGATION 1. Actions taken by org. in product & service design and delivery 2. Making products future ready.
PR6 PROGRAMS FOR ADHERENCE TO LAWS , STANDARDS, AND PR3 VOUNTARY CODES RELATED TO TYPE OF PRODUCT & SERVICE INFORMATION REQUIRED BY PROCEDURES, & PERCENTAGE MARKETING COMMUNICATIONS OF SIGNIFICANT PRODUCTS & SERVICES SUBJECT TO SUCH INFORMATION INCLUDING ADVERTISING, REQUIREMENTS PROMOTIONS & SPONSORSHIP 1. Information on sustainability impacts of products & services (positive & negative) necessary for end users to make informed purchasing choices. 1. Marketing communications 2. Linked to compliance with certain type of regulations and codes. that do not conform to generally 3. Extent to which product labeling addresses product or service accepted ethical or cultural impacts on sustainability. standards, privacy intrusion, dual
PRODUCT & SERVICE LABELING
MARKETING COMMUNICATION
CUSTOMER HEALTH & SAFETY
PR1 LIFE CYCLE STAGES IN WHICH HEALTH AND SAFETY IMPACTS OF PROCUCTS & SERVICES ARE ASSESSED FOR IMPROVEMENT, AND PERCENTAGE OF SIGNIGICANT PROUCTS AND SERVICES CATEGORIES SUBJECT TO SUCH PROCEDURES 1. Efforts made buy the organization to address health and safety across the life cycle of product/service. 2. Direct impact on organization’s reputation. 3. Legal and financial risk due to product recall. 4. Market differentiation.
PRODUCT RESPONSIBILITY PERFORMACE INDICATORS
standards, or attempts to influence vulnerable audience such as children can be a major issue for stakeholders. 2. Inappropriate marketing approaches may incur risks for organizations like alienation of customers &other stakeholders, damage to reputation, financial costs and legislative actions.
PR9 MONETARY VALUE OF SIGNIFICANT FINES FOR NON-COMPLIANCE WITH LAWS AND REGULATIONS CONCERNING THE PROVISION AND USE OF PRODUCTS & SERVICES 1. Identification of administrative or judicial sanctions levied against the organization for failure to comply with laws and regulations. 2. Helps in ensuring that the organization does not deal in any product which contravenes statutory regulation. 3. Mitigate risk and expand further.
COMPLIANCE
1. Direct Economic Value Generated Why? Creating wealth Economic Wealth Direct monetary value added EVG&D
3. Orgn.’s Benefit plan obligations Why? Attract & maintain a stable workforce Long term financial & strategic planning received from the Govt.
Economic Performance
An organization’s 2. Finance Implications of economic performance is Financial assistance 4. fundamental to understanding the organization Why? Why?
Physical risks like storms, Climate change Develops a balanced picture and its basis for sustainability. What is reported transactions between theof Regulatory risks the
organization and the local govt. less frequently, butCost implications by readers of often desired Adopting newer technologies
Market Presence reports, is the organization’s sustainability 2. Locally based hiring 1. Locally based suppliers
Why? Why? contribution to the sustainability of the can understand local Mgmt. Supporting local businesses
economic systems Indirectly attract investment needs in which the organization
Indirect economic impact
operates.
Social License to operate Strategy – sure supply, stable economy & efficient Maintain community relations
Enhance human capital Benefit to local communities Social license to operate
1. Development of Infrastructure for public benefit Why? Orgn.’s capital contribution to the economy Improving quality of life for the local communities
Employment
Labor/Management Relations
Occupational Health and Safety
The structure of the Labor Indicators is broadly opportunity Diversity and equal based on the concept of decent work. The set Training and
1.Total Workforce Why? Scale of operations Orgn. Structure Business Model Strategy 2.Total Turnover Why? Dissatisfaction Potential inequity Productivity Costs
begins with disclosures on the scope and
education
1. Collective diversity of the reporting organization’s Bargaining 1. Work related Why? workforce, emphasizing aspects Breakdown of diseases,fatalities 1. of gender and Human right Why? employees in Stable society age distribution Orgn.’s duty categories Avg. Hrs./yr. of Freedom Why? training/emplyee Responsible mgmt. Low absenteeism Staff morale Diversity Why? Productivity Human capital Maintaining & 2. Minimum improving human notice periods 2. Health 2. Ratio of basic capital Why? salary of men to Investment on Timely discussions Education Why? women employees Minimize adverse Best practice Why? Motivation impacts Prevention better Equality Maintain employee than cure Firm’s reputation & satisfaction Social license legal challenges
Community
Corruption
Public policy
Compliance
The Society Performance Indicators focus on the
impacts organizations have on the communities in
Impacts of operations on Participation in public which 1. % of BUs analyzed for how the organization’s Monetary value of they operate, and communities policy development and fines / non-monetary Risks related to lobbying interactions with other social institutions are managed sanctions for noncorruption Why? compliance Better management of and mediated. In particular, information is sought on both 2. % of employees trained Why? +ve and –ve impacts This info. provides insight Why? in orgn.’s anti-corruption bribery policies and corruption, involvement extent to which into the in public policy- Conformity to certain Brand and reputation publicly-expressed performance standards making,3. monopoly practices, positions on sustainability and compliance with Actions taken in Ability to maintain and are consistently embedded Reducing financial risks response to incidents laws and regulations of other than labor and initiate existing operations across the organization and corruption aligned across di?erent Reputation environmental. units Why? Brand and reputation Legal proceedings Basic socially responsible conduct
Investment and Procurement Practices Non Discrimination
1.% agreements going through HR screening Why? HR integration into economic decisions Strategy to reduce risks Reputation Stability 2.% suppliers going through HR screening Why? Outsourcing Reputation Stability
Human Rights Performance Indicators elicit
disclosures on the impacts and activities an organization has on the civil and political
Freedom of association and collective bargaining
Total no. of Child Labor incidents of rights of its stakeholders. Human Rights human Risks to freedom Forced and discrimination of association Indicators focus on how the reporting compulsory labor Why? Incidents of child Why? Anti-discrimination maintains and respects the basic labor organization Fundamental policy is a key Incidents of provision of UN rights of requirement of a human being, whereas the Indicators forced labor Why? Declaration of HR international Basic socially on Labor Practices re?ect the quality of the conventions, social responsible Why? Opportunities must conduct legislation and Not subjected to exist for employees work and the working environment. guidelines forced labor is a to exercise their Key principle of Fundamental right to freedom major HR provision of UN and collective declarations Declaration of HR bargaining
Economic Performance Indicators
Market Presence & Climate Economic Performance
•Did not report •No explicit trends •Value distributed lists •Local Programs
Economic Performance
•Strength of diverse business •Retained growth trajectory and created wealth •Customer focused approach •Employees shape an organization
Indirect Economic Impact
Environment Performance Indicators
Energy
• Energy Efficiency & Conservation Guidelines • Reduced energy consumption by more than 8.4 million kW-hrs • Enhancing employee energy use awareness • Daytime cleaning program
Water
• Conservation > 835,000 gallons • Deployment of low flush valves • Automatic faucet sensors • Waterless and/or low flow urinals, • Reclamation of grey water for irrigation.
Emissions
•Carbon •Consumption Footprint •Conservation • Make the data •Initiatives collection more userfriendly • GHG % balanced
Energy
Water
• Embedded ingredient • Measure and Monitor usage • Water Efficiency
Emissions
• Aligning operations • Air dispersion analysis • Green buildings
Other Performance Indicators
Society
•Compliance •Community -Education -Disaster Relief
Labor & HR
•Compensation •Diversification •Training
Product
•Customer Safety •Privacy •Compliance
Society
•Compliance •Corruption •Community
Labor & HR
•Talent Acquisition •Training •Safety •Welfare
Product
•Customer Safety •Satisfaction •Innovations -Fired Heaters -Clean Energy Equipment
Sustainability Reporting - A Business
•Shows Company commitment to sustainable development
•Highlights the areas for improvement for better business performance, operational efficiency and cost savings •Analysis of energy, water, waste and purchases provide valuable information for making decisions on capital expenses, retrofits and programs
•Demonstrates the long-term sustainable financial value of the organization
•Helps to attract capital from green investors by identifying new markets and business opportunities
•Helps attract and retain quality staff
•Improves communication, trust and reputation with all stakeholders
GRI Home - http://www.globalreporting.org/Home Fluor Sustainability Report 2009 L&T Sustainability Report 2009
Thank You!
doc_695174681.pptx