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JUNE 2015
The Future of Sustainability Reporting: From Routine to Strategic
1 The Future of Reporting: From Routine to Strategic | 2015 | © Corporate Citizenship
About Corporate Citizenship
1
Established in 1997, one of the longest-standing
specialist sustainability consultancies
A global business, with offices in London, New
York, San Francisco, Singapore and Santiago
Working experience in more than 40 countries
across Africa, India, South East Asia and Latin
America.
Owned by Chime Communications PLC
(London Stock Exchange: CHW.L)
“Corporate Citizenship helped us to understand the issues, anticipated what’s next and realise the opportunities for growth.”
Global VP, Sustainable Business
2 The Future of Reporting: From Routine to Strategic | 2015 | © Corporate Citizenship
Speakers
Nana Guar
SENIOR CONSULTANT
Corporate Citizenship
London
Nana Guar
Senior Consultant Davida Heller
ASSISTANT VICE PRESIDENT
CORPORATE SUSTAINABILITY
Citigroup
Megan DeYoung
DIRECTOR
Corporate Citizenship
New York
2
3 The Future of Reporting: From Routine to Strategic | 2015 | © Corporate Citizenship
Asking questions
3
Ask a Question
4 The Future of Reporting: From Routine to Strategic | 2015 | © Corporate Citizenship
What we will cover today
• About our research
– Reporting challenges
– The Reporting Journey: 8 Defining Questions
– Four drivers of change
• Responding to a changing landscape
• Guest Presenter: Citi
• Audience Poll
• Discussion and Q&A
• Round up
4
5 The Future of Reporting: From Routine to Strategic | 2015 | © Corporate Citizenship
About our research
6 The Future of Reporting: From Routine to Strategic | 2015 | © Corporate Citizenship
What we have heard
6
“It’s hard to know what is relevant, what to leave out,
where to start.”
“Who actually reads them? This isn’t that clear. I think
they try to reach too many audiences, and generally
fail as they try to be a hybrid to everyone rather than
focussed on say, convincing the investor that CR is
linked to the bottom line.”
“Generally I’d like to see
reports move away from the
fluffy stuff…and become
more data and results
oriented- demonstrating the
quantifiable contribution CR
is making o the company
and wider stakeholders.”
Sustainability
Reporting In 2015
“Nobody actually reads it
cover-to-cover but it’s a
helpful review of CR activities
and for benchmarking. “I’m not 100%
convinced by the
whole integrated
reporting stuff…
integration can lose
the sustainability
message.”
“How does the report add value to our brand?”
“There are many other avenues through which to give
updates on CR activities- it doesn’t all need to go in the
one report!”
“With all the standards,
requirements, where will all the
data go?”
7 The Future of Reporting: From Routine to Strategic | 2015 | © Corporate Citizenship
The Reporting Journey: 8 Defining Questions
7
1. Aims What is the objective of the report?
2. Audience Who are the audiences for the report?
3. Materiality What is the approach to identifying issues that are important to the business and to
stakeholders?
4. Systems & Processes What types of reporting systems and processes are in place to facilitate sustainability
communications
5. Standards &
Frameworks
What reporting standards and frameworks are used?
6. Outputs What is produced from the reporting process?
7. Engagement What is the approach to engaging audiences?
8. Frequency How often will the exercise be repeated or other outputs be produced?
8 The Future of Reporting: From Routine to Strategic | 2015 | © Corporate Citizenship
Four drivers of change
8
III. Standards Proliferation There is a rapid proliferation of
sustainability-related standards,
rankings, ratings, and indices.
I. Strategic Alignment Closer alignment between sustainability
and commercial decisions has become
a business imperative.
II. Issues Expansion The scope and significance of issues are
expanding across extended value
chains.
IV. Digital Innovation Digital innovation offer new ways of
presenting data and communicating
with audiences.
9 The Future of Reporting: From Routine to Strategic | 2015 | © Corporate Citizenship
Responding to a
changing landscape
10 10 The Future of Reporting: From Routine to Strategic | 2015 | © Corporate Citizenship
Driver 1: Strategic Alignment RESPONDING TO A CHANGING LANDSCAPE
Closer alignment between sustainability and commercial decisions has become a
business imperative.
Environmental Profit and Loss Account (EP&L) Big Targets, Big Plans Scenario Planning
11 11 The Future of Reporting: From Routine to Strategic | 2015 | © Corporate Citizenship
Driver 2: Issues Expansion RESPONDING TO A CHANGING LANDSCAPE
The scope and significance of issues are expanding across extended value chains.
Patagonia
12 12 The Future of Reporting: From Routine to Strategic | 2015 | © Corporate Citizenship
Driver 3: Standards Proliferation RESPONDING TO A CHANGING LANDSCAPE
There is a rapid proliferation of sustainability-related standards, rankings, ratings, and
indices.
13 13 The Future of Reporting: From Routine to Strategic | 2015 | © Corporate Citizenship
Driver 4: Digital Innovation RESPONDING TO A CHANGING LANDSCAPE
Digital innovation offer new ways of presenting data and communicating with
audiences.
14 The Future of Reporting: From Routine to Strategic | 2015 | © Corporate Citizenship
Davida Heller Assistant Vice President
Corporate Sustainability
15 15 The Future of Reporting: From Routine to Strategic | 2015 | © Corporate Citizenship
Activities are organized under three primary pillars:
Sustainable Progress: Citi’s Sustainability Strategy STRATEGY FOCUSES ON THREE THEMATIC PRIORITIES:
• Combating Climate Change - Identifying solutions that are client-centered, scalable and have the
potential for global impact
• Championing Sustainable Cities - Leveraging our people and relationships to support the promise as well
as address the challenges of urbanization and growth
• Engaging People and Communities - Considering the benefits and risks to impacted communities in both
urban and rural areas to conduct our business in a manner that supports universal human rights
16 The Future of Reporting: From Routine to Strategic | 2015 | © Corporate Citizenship
3
$100B Environmental Finance Goal Reporting
16
17 The Future of Reporting: From Routine to Strategic | 2015 | © Corporate Citizenship
For more information on Citi’s Citizenship report
and sustainability strategy please visit www.citizenship.citigroup.com
18 The Future of Reporting: From Routine to Strategic | 2015 | © Corporate Citizenship
Audience Poll
19 The Future of Reporting: From Routine to Strategic | 2015 | © Corporate Citizenship
Audience Poll
1. What is your organisation’s primary purpose for reporting?
a. Mandatory compliance with regulations
b. Shareholder confidence
c. Broader stakeholder expectations for responsible business
d. Driving performance and operational change in the business
e. Leadership position on big sector or global issues
19
20 The Future of Reporting: From Routine to Strategic | 2015 | © Corporate Citizenship
Audience Poll
2. Who is your primary reporting audience?
a. Employees & Recruits
b. Investors & Analysts
c. Key Opinion Formers (e.g. academics, NGOs, think tanks)
d. Government & Regulators
e. Consumers & Customers
f. Local Communities
g. Business Partners
20
21 The Future of Reporting: From Routine to Strategic | 2015 | © Corporate Citizenship
Audience Poll
3. What is the primary way your organisation identifies topics to report?
a. Compliance with regulatory requirements
b. Voluntary reporting framework
c. Sustainability / Corporate responsibility team
d. External stakeholder views
e. Formal materiality assessment
21
22 The Future of Reporting: From Routine to Strategic | 2015 | © Corporate Citizenship
The Reporting Journey: Where do you fall?
22
KEY CONSIDERATIONS STAGE 1 STAGE 2 STAGE 3 STAGE 4 STAGE 5
1. Aims Mandatory /Compliance-based
and reputation performance operational
change
Influencing the
debate
2. Audience Undefined or compliance-based
Everybody Defined multi-audience
Prioritised target audiences
3. Materiality Random or compliance-based selection of issues
Anything and everything
Informal and/or internally focused materiality process
Formal materiality exercise
Extensive process to aggregate and prioritise
4. Systems & Processes Weak or ad hoc systems
Add-on systems Embedded systems Extended systems
Integrated systems
5. Standards & Frameworks
Compliance-based or none
Informed guidance
Commitment to specific frameworks and guidance
Strategic selection of advanced standards
Value-added standards
6. Outputs Reviews and pamphlets
Full-length report or PDFs
Stratified communications
Targeted Engagement
Bespoke Communications suite
7. Engagement Business as usual or ad-hoc
Business as usual interactions
Enabled feedback Interactive Targeted engagement of priority audiences
8. Frequency As required Annually or every two years
Defined and regular time period
Ongoing Real-time
23 The Future of Reporting: From Routine to Strategic | 2015 | © Corporate Citizenship
Q&A
24 The Future of Reporting: From Routine to Strategic | 2015 | © Corporate Citizenship
Thank you for joining us!
25 The Future of Reporting: From Routine to Strategic | 2015 | © Corporate Citizenship
For further information please contact:
Nana Guar – Senior Consultant E: [email protected] T: +44 (0) 207 861 1616
London W: www.corporate-citizenship.com E: [email protected]
Twitter: @CCitizenship
LinkedIn: Corporate Citizenship Company
Contact us
London Office Holborn Gate, 5th Floor 26 Southampton Buildings London WC2A 1PQ
United Kingdom
New York Office 241 Centre Street 4th Floor New York, NY 10013
United States
San Francisco Office 901 Mission Street Suite 105 San Francisco, CA 94103
United States
Santiago Office Nueva Costanera 3698 Of 203 Vitacura - Santiago
Chile
Singapore Office 12 Kallang Avenue Aperia #04-25 Singapore
339511
T: +44 (0)20 7861 1616 T: 1-212-226-3702 T: 1-415-416-9580 T: +56 (2)2 247 9008 T: +65 6836 9098
For further information please contact:
Megan DeYoung – Director E: [email protected] T: 1-212-226-3702
New York