Sustainability

Sustainability reporting getting more press

It has been a while since my last post on Earth Day 2020. A lot has happened in that time. In the future, I hope to be more timely in my posts.

In the past year, sustainability reporting has been getting more press. As investors demand more information from companies about their sustainability impacts, reporting frameworks are in the spotlight.

2020 KPMG Survey

In December 2020 KPMG published its 11th edition of the KPMG Survey of Sustainability Reporting. The results of the survey are based on the sustainability reports from 5,200 companies in 52 countries and jurisdictions. They found that 96% of the world’s largest 250 companies (G250) report on their sustainability performance. Among the largest 100 firms in 52 countries (N100), 80% of these 5,200 companies do so. The dominant sustainability reporting framework was the GRI Standards. Almost three-quarters (73%) of the G250 and two-thirds (67%) of the N100 now use GRI.

It is amazing to see increased interest during the past year in sustainability reporting. This has been great for me as I have been busy as a trainer and consultant with the ISOSGroup. My courses include CDP Climate Change, the Global Reporting Initiative Sustainability Standards, ESG Foundations and Sustainable Development Goals. These are online courses that work quite well. Our live sessions allow us to interact directly with participants throughout the course. Without having to travel to the trainings, our carbon footprint has gone down considerably.

I wanted to share some comments from recent participants in the training courses offered by ISOSGroup.

If you are interested in learning more about sustainability reporting, check out the upcoming courses here. I hope to see you there!

Covid 19, Sustainability, Sustainable Development

Sustainability During and After Covid-19

So many things have happened since my last blog post. It seems like years ago. Each day I try to put current events into perspective by thinking about how a focus on sustainability can help.

On a personal level, I talk to friends, family and colleagues to learn how everyone is coping with their new economic, environmental and social situations. I do what I can from a distance by listening and encouraging.

On a professional level, I listen to experts in sustainability and think about the future. In a recent webinar, Sustainability After Covid 19: Voices from GGGI, OECD, UNEP and World Bank hosted by Green Growth Knowledge Partnership, leaders in sustainability expressed the importance of sustainable development as we go forward. One of the speakers summarized it well! He said that sustainable development is more important than ever for the world to recover. We should not squander this opportunity to get it right with regard to rebuilding the economy, environment and society.

 

We need to address the problems and devastation caused by Covid-19. This includes the environmental and social conditions leading to its spread. In addition, we need to work together using our knowledge of sustainable practices to plan for the future.

I urge you to watch the recorded version of this webinar to help inspire you to contribute to a sustainable approach going forward.

Be healthy and safe! Happy Earth Day!

 

Integrated Reporting

SB New Metrics 19 Conference

At the SB New Metrics 19 Conference on Wednesday, November 20, 2019, I will be part of this panel.

Truly Integrated Sustainability and Financial Reporting: Evolution and Technology Solutions

This panel will discuss and demonstrate how integrated reporting can be done in a way that includes BOTH financial and non-financial data. The panel involves discussion of a format that can be used internally for strategy-setting and decision-making and externally to communicate out to investors and analysts. The report protocol and data is assurable. It is designed to meet SEC materiality disclosure standards to be used in 10K filings.

Using a single software platform, this session will show how a public company can begin producing an integrated report. It bridges the gap between ESG data (think CSO) and financial data (think CFO) in a simple and relevant manner. The demo will be used to briefly present how data is collected, structured, audited and communicated to all stakeholders. The discussion will highlight both investors’ and auditors’ points of view.

Please join Bob Laux, Patrick Elie, Andrew Hall, Maxime Cossette and myself for this interesting event.

 

 

Sustainability

The Emergence of Integrated Reporting

 

 

If you want to learn more about Integrated Reporting and how it can help your company, I think you will like this post.

On October 15, 2019, the Integrated Reporting <IR> U.S. Community hosted a webinar featuring John Wilcox, Chairman of Morrow Sodali, and Bob Laux, U.S. Lead for the International Integrated Reporting Council.

They presented an overview of The Emergence of Integrated Reporting, a paper by the Integrated Reporting Working Group at the Conference Board.

Why is Integrated Reporting important?

Using the Integrated Reporting <IR> Framework is important for all companies because it represents the next step for companies interested in enhancing their corporate reporting. Financial statements provide only a piece of the information necessary to understand the value of a company.

Over the past three decades, tangible assets have become a smaller portion of a company’s total value. In a recent study of the components of the S&P 500 Market Value, Ocean Tomo reported that in 2015 only 16% of the companies’ market value represented tangible assets.

 

 

Companies need to report on a variety of factors that affect their value but are not captured in financial statements. The <IR> framework provides a comprehensive approach to explaining from management’s perspective how value is created in the short, medium, and long term. In addition, this framework provides an opportunity for internal management to focus on issues that are material to creating value for the company.

Integrated reporting supports integrated thinking. This allows for the integration of the company’s components that are critical to its long term success. For example, in a technological services company information about its management of intellectual property and human resources is essential for creating long term value. The <IR> framework is designed for reporting on these critical issues as they interact with the company’s strategy, risks and opportunities as well as its governance structure.

As part of the webinar presentation, Bob Laux discussed The Integrated Reporting Process to illustrate how an organization creates value over time. The following graphic shows the six capitals (financial, manufactured, intellectual, human, social and relationship, and natural) of the <IR> framework and their contribution to an organization’s current and potential value.

 

I recommend that you read this interesting report and watch the recorded webinar here.

Integrated Reporting <IR> U.S. Community is a great resource for those interested in the integrated reporting movement in the U.S. This community provides live presentations on a variety integrated reporting topics that range from actual company reports to issues about assurance on integrated reports.

Integrated Reporting, Sustainability

Integrated Reporting U.S. Community

Integrated Reporting <IR> U.S. Community is a great resource for those interested in the integrated reporting movement in the U.S. This community provides live presentations on a variety integrated reporting topics that range from actual company reports to issues about assurance on integrated reports.

On August 27, 2019, a live webinar featured Intel’s 10-K Presentation of Its Multiple Capitals. Katie Stipic and Erika Kelley from the Intel External Reporting team did an excellent job explaining Intel’s integrated reporting journey. You can watch that recorded webinar here.

On September 19, 2019, at 2:00PM ET, you can view the next <IR> U.S. Community live webinar that features a conversation with Yafit Cohn, Vice President, Chief Sustainability Officer and Group General Counsel at The Travelers Companies, Inc.

It looks like it will be interesting! You still have time to register! I plan to be there.