Transcript Standard EN Template - CSIN

Measurement and Accountability:
Why Bother?
Johanne Gélinas
Partner,
Sustainability & Climate Change
CSIN 2nd National Conference Accountability Through Measurement
March 2, 2010
Measurement and Accountability: Why Bother?
Sustainable Business
Corporate Responsibility
Accountability
Measurement
1 Measurement and Accountability: Why Bother?
© Samson Bélair/Deloitte & Touche s.e.n.c.r.l. and affiliated entities
What is driving companies to act?
Stakeholders require companies to progress along several key sustainability issues
Demanding stakeholders
Companies
Key sustainability issues
Clients / consumers
Environmental impact
Suppliers / producers
Climate change
Employees
Responsible sourcing
Shareholders
Product stewardship
Media
Workforce practices
Governments
Impact on local communities
NGOs
Communication and reporting
Local communities
Governance
2 Measurement and Accountability: Why Bother?
© Samson Bélair/Deloitte & Touche s.e.n.c.r.l. and affiliated entities
Disclosure on sustainability performance is essential to
demonstrate accountability
Companies face many pressures regarding disclosure of sustainability performance
Regulatory
obligations
• Requirements for sustainability performance disclosure
(e.g. Quebec public sector)
• Accounting standards and securities commissions
(e.g. climate change risks)
Pressure from
inverstors
• Carbon Disclosure Project
• Socially Responsible Investment
(Ethical Investment Fund, Fondaction, …)
Stakeholders’
expectations
• NGO, local communities
• Clients
• Employees, tradeunions
Standards and
guidelines
•
•
•
•
Global Reporting Initiative
AA 1000
ISO 26000
Dow Jones Sustainability Index
3 Measurement and Accountability: Why Bother?
•
•
•
•
UN Global Compact
ILO Conventions
UN Millennium Dev. Goals
OHSAS
© Samson Bélair/Deloitte & Touche s.e.n.c.r.l. and affiliated entities
Key elements for building stakeholder trust
Companies need to be able to demonstrate progress on relevant sustainability issues,
thereby meeting stakeholders’ expectations
Key elements:
Quality - Credibility
Measurement
(Performance
management)
Materiality - Relevance
Accountability
(Stakeholder
trust)
Transparency - Disclosure
4 Measurement and Accountability: Why Bother?
© Samson Bélair/Deloitte & Touche s.e.n.c.r.l. and affiliated entities
Build credibility through quality of information
The quality of sustainability information is of strategic importance to corporate
communications
Factual data
• Vague claims are considered
greenwashing
Verifiable data
• Internal controls and internal audit -> internal accountability, continuous
improvement
• External assurance -> external accountability, stakeholder confidence
5 Measurement and Accountability: Why Bother?
© Samson Bélair/Deloitte & Touche s.e.n.c.r.l. and affiliated entities
Focus on material and relevant sustainability issues
Sustainability issues differ from one industry to another
• Materiality matrix: stakeholder concern vs.
impact to business
Sustainability information needs to be put in context
E.g. Water use: Performance without context
Level of water use
6 Measurement and Accountability: Why Bother?
Performance with context
Level of water supply
© Samson Bélair/Deloitte & Touche s.e.n.c.r.l. and affiliated entities
Sustainability reporting is embedded in corporate
communications
Top-level commitment
Social media
Sustainability governance
“Layered” reporting
Quarterly updates
Stakeholder feedback
GRI - leading reporting framework
XBLR – cross-referencing
Disclosure on ecosystems services
3rd party assurance
ROI of sustainability projects
Life-cycle thinking
7 Measurement and Accountability: Why Bother?
© Samson Bélair/Deloitte & Touche s.e.n.c.r.l. and affiliated entities
And sustainability attributes are part of product
marketing
Tesco (UK)
Walmart
(Product sustainability
index in development)
8 Measurement and Accountability: Why Bother?
© Samson Bélair/Deloitte & Touche s.e.n.c.r.l. and affiliated entities
Sustainability reporting and disclosure have to be
integrated into a structured strategic approach to
sustainability
Risks
2. Vision & Strategy
Strategy and Targets
Definition
• Reputation
• Financial
• Social climate
• Regulatory compliance
• Market loss
Opportunities
1. Diagnosis
3. Execution
Issues
Identification
and
Prioritisation
Actions Plans
& KPIs
• Cost reduction
• Innovation
• Brand and image
• Market Positioning
• Talent retention
9 Measurement and Accountability: Why Bother?
4. Reporting & Disclosure
Tracking and Performance
Disclosure
© Samson Bélair/Deloitte & Touche s.e.n.c.r.l. and affiliated entities
Strategic thinking to sustainability leads to value creation
Sustainable company = Manage short-term risks + Grasp long-term opportunities
2010
2012
2015
Key Issues
Risk Management = Protecting Value
• Environmental impact
• Climate change
“License to operate”
• Protect reputation and brand
• Responsible sourcing
• Preserve market share and resources
2020
2025
Long Term
Vision
• Human rights
• Health and safety
• Governance
• Impact on communities
• Reputation
New Opportunities = Creating Value
“License to grow”
• Develop new market opportunities and new business
models
• Innovate on responsible products
• Become an employer of choice
10 Measurement and Accountability: Why Bother?
© Samson Bélair/Deloitte & Touche s.e.n.c.r.l. and affiliated entities
Contacts
Johanne Gélinas
Partner
Sustainability & Climate Change
Deloitte & Touche
Tel: 514-393-5408
[email protected]
Valerie Chort
Partner
Sustainability & Climate Change
Deloitte & Touche
Tel: 416-601-6147
[email protected]
11 Measurement and Accountability: Why Bother?
© Samson Bélair/Deloitte & Touche s.e.n.c.r.l. and affiliated entities