cleanmed april 2011 final

Sustainability Reporting TrendsGlobal Reporting Initiative

S t i bilit R ti T dSustainability Reporting Trends in Health CareApril 2011

Mike WallaceDirector, Focal Point USAGlobal Reporting InitiativeGlobal Reporting [email protected]+1 212 339 0356

What are we talking gabout & who really

cares?

© GRI 2011

What are the issues?

CSR - Corporate Social ResponsibilitySD - Sustainable DevelopmentES - Environmental SustainabilityyBE - Business Ethics CE - Corporate EthicspCG - Corporate GovernanceESG - Environmental, Social & GovernanceESG Environmental, Social & GovernanceIR - Integrated reporting

What is your “Footprint”?© GRI 2011

What is your Footprint ?

Increasing Stakeholders and Demand

Modern DDue

Diligence

© GRI 2011

How do YOU define it?UN B dtl d C i i (1987)UN Brundtland Commission (1987)Development that meets the needs of the present without compromising the ability of future generations to meet their p g y gown needs.

How are companies re defining it?How are companies re-defining it?CSR & Sustainability are approaches to business operation and innovation that build employee engagement, improve environmental performance, create positive social impacts, enable operational efficiency, reduce cost, foster innovation, strengthen relationships withfoster innovation, strengthen relationships with customers and consumers and ultimately… create business advantage.

Dave Stangis VP CSR/Sustainability

© GRI 2011

Dave Stangis – VP CSR/SustainabilityCampbell’s Soup

What is GRI?

© GRI 2011

Global Reporting Initiative• Non-profit, originated in

United States in 1997

• Reputable, respected, credible multi-stakeholdercredible multi-stakeholder development approach

P i li bl i t t &• Pursing reliable, consistent & comparable sustainability reportingp g

• www.globalreporting.org

© GRI 2011

GRI’s Vision & MissionGRI’s VisionA sustainably global economy where organizations manage their economic, environmental, social and governance performance and impacts responsibly and report transparently.

GRI’s MissionTo make sustainability reporting standard practice by providing guidance and support

© GRI 2011

to organizations.

What are reporting guidelines?E i t lEnvironmental

EN 3 - Direct energy consumption by primary energy source

LaborLaborLA 7 - Rates of injury, occupational diseases, lost days and absenteeism, and number of work related fatalities by region.

Human RightsHR 4 - Total number of incidents of discrimination and actions taken

P d t R ibilitProduct Responsibility• PR 6 - Programs for adherence to laws, standards,

and voluntary codes related to marketing communications, including advertising, promotion, , g g, p ,ad sponsorship.

Economic• EC 4 – Significant financial assistance received

f

© GRI 2011

from government.

I b d t ll Is anybody actually doing this?doing this?

- External ViewInternal View- Internal View

© GRI 2011

Fortune 250 Survey• 80% of Global Fortune 250 companies now release CR data

• Doubled since 2005 - up from 37%

October 2008

p• Increasingly driven by economic concerns

• 74% of top 100 US companies published corporate responsibility (CR) information in 2008 either as part of their annual financial report or as ainformation in 2008 either as part of their annual financial report or as a separate document

• Reasons cited:• 70% cited ethical considerations as primary driver for CR disclosures• 70% cited ethical considerations as primary driver for CR disclosures• 50% cited economic concerns as the leading reason

• GRI is used by:77% of G250• 77% of G250

• 69% of N100 in 22 countries

© GRI 2011

Standardized ReportingOctober 2008October 2008

© GRI 2011

GRI Reporting Trends1818

1600

1800

2000 Year # of reports

Growth rate

1999 11

2000 44 300%

2001 122 177%

US Reporters in 1999•Bristol-Myers Squibb

1116

1491

1200

1400

1600 2001 122 177%

2002 139 14%

2003 166 20%

2004 274 65%

2005 373 36%

Bristol Myers Squibb•GM•P&GS

709800

1000

2005 373 36%

2006 516 38%

2007 709 37%

2008 1116 58%

2009 1491 34%

•Sunoco

139 166

274373

516

200

400

6002009 1491 34%

2010 1818 22%

• 586 first-11 44

122 139 166

0

200

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

time reporters in 2010.

G2 G3

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GRI Reports by Region 2010*Oceania AfricaOceania

4%Africa

3%

Europe

Northern America

14%p

45%

Latin America14%

Asia20%20%

© GRI 2011

GRI Reports by Sector 2010*300

250

150

200

100

0

50

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Who are some of th t ?these reporters?

© GRI 2011

GRI Reporters (North American Sample)(North American Sample)

© GRI 2011

US Business RoundtableGRI Reporters

April 2009ABBAccentureAbbottAlcoa American Electric Power AT&T

ITTJohnson & Johnson Johnson ControlLife Technologies Corp McKesson Corp.Merck

April 2009

AT&TCB Richard Ellis Group Inc. CH2MHill Companies, Ltd.Chevron Chubb Citi

Merck Motorola NexTera (Formerly FPL) Office Depot Owens Corning PepsiCo

Coca-ColaConoco Philips Cummins Darden Deloitte

PepsiCoPfizerPraxairProctor & Gamble Co. RyderSara Lee

April 2010

Dow Chemical Duke Energy DuPont Eastman Kodak Co. EMCExxon Mobil

SAP USA SAS Southern Company Siemens CorpTarget Corporation TycoExxon Mobil

Freeport McMoranGeneral Electric General Motors HSBCIBM

Tyco UAL Corporation WeyerhauserWhirlpool Corporation Williams Xerox

© GRI 2011

International Paper

What about Healthcare?

© GRI 2011

CHW - Social Responsibility Report

Social ResponsibilityResponsibility

Report

© GRI 2011

Sustainability Journey

CHW Highlights :

• 1996: “Endorsed CeresPrinciples and committed toannual public reporting”annual public reporting”

• 2003: CHW started using GRI/G3 GuidelinesGRI/G3 Guidelines

• 2010: “An Enduring Mission”the name of their last reportt e a e o t e ast epo t

© GRI 2011

Topics Covered:

Issues Covered:

E i t l I di t• Environmental Indicators

• Economic Indicators

• Social Indicators

• Labor Practices and DecentLabor Practices and Decent Work

• Human Rights g

• Product Responsibility

© GRI 2011

What about Healthcare’s Supply Chain?

© GRI 2011

Who supplies healthcare? Example of North America GRI Reporters

© GRI 2011

Healthcare Supply Chain Disclosure

• Strategy and analysisO i ti l fil

Issues Covered:

• Organizational profile• Report Parameters• Governance, Commitments &

Engagement g g• Management Approach and

Performance Indicators:o Economic disclosure

E i l di lo Environmental disclosureo Labor practices and decent worko Human rights o Society

P d t R ibilit

Prod ct Responsibilit

o Product Responsibility

© GRI 2011

Product Responsibility

Product Responsibility: GE PR1 Life cycle stages in which health and safety Our products & services PartialPR1

impacts of products… Environment

PR2 Total number of incidents of non-compliance with regulations…

Our products & servicesEnvironment

Partial

PR3 Type of product and service information i d b d

Product Issues are disclosed on a case-by-case basis in the i ti f th Citi hi R t D t th l itrequired by procedures… various sections of the Citizenship Report. Due to the complexity

of the 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 with regulations and…

GE does not report on this metric.

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 voluntary codes related to marketing

Operational ExcellenceOur Products & Services

Partialand voluntary codes related to marketing… Our Products & Services

PR7 Total number of incidents of non-compliance…

GE does not report on this metric

PR8 Total number of substantiated complaints regarding breaches of customer privacy…

GE does not report on this metricg g p y

PR9 Monetary value of significant fines for non-compliance with laws and regulations…

Any significant legal actions and material regulatory fine/settlements 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

Full

© GRI 2011

and services during 2009


Product Responsibility

© GRI 2011


Issues Covered:

• Economic• Economic

• Environmental

• Labor Practices and Decent Work

• Human Rights

• Society


© GRI 2011

Product Responsibility: Baxter

PR1 Life cycle stages in which health and safety impacts of products…

Product Sustainability Review

PR2 Total number of incidents of non-compliance with regulations

Safetycompliance with regulations…

PR3 Type of product and service information required by procedures…

Clinical TrialsProduct Use

PR4 Total number of incidents of non-compliance with regulations and voluntarycompliance with regulations and voluntary codes…

PR5 Practices related to customer satisfaction…

PR6 Programs for adherence to laws, standards and voluntary codes related to marketing

Product Useand voluntary codes related to marketing…


Product Use

PR8 Total number of substantiated complaints regarding breaches of customer privacy…ega d g b eac es o custo e p acy


SafetyProduct Use

© GRI 2011


Product safety Product sustainability

© GRI 2011

Healthcare Supply Chain DisclosureIssues Covered:ssues Co e ed

• Economic Disclosure

• Environmental Disclosure

• Social Disclosure

• Labor Practices and DecentWork

• Human Rights

• SocietySociety


© GRI 2011

Product Responsibility: CloroxLif l t i hi h h lth d f t 2 2PR1 Life cycle stages in which health and safety impacts of products…

Pg 24-25www.cloroxcsr.com/products-safety

PR2 Total number of incidents of non-li ith l ti

N/Rcompliance with regulations…

PR3 Type of product and service information required by procedures…

Pg 25Corporate Responsibility Report 2010

PR4 Total number of incidents of non- N/RPR4compliance with regulations and voluntary codes…

PR5 Practices related to customer satisfaction… Pg 19-20Corporate Responsibility Report 2010

PR6 Programs for adherence to laws, standards and voluntary codes related to marketing…

Pg 20 Corporate Responsibility Report 2010


N/Rp

PR8 Total number of substantiated complaints regarding breaches of customer privacy…

N/R


N/R

© GRI 2011

Why does this matter yto you?

© GRI 2011

As a buyer, what do you expect?expect?

When you buy a house, a car, a When you buy a house, a car, a product or service . . .

What about the companies in your own pension plan?your own pension plan?What information do you

deserve?

I it f l & bl ?© GRI 2011

Is it useful & comparable?

Shareholder Initiatives & Coalitions

Principles for Responsible Investment (PRI) [2006]Currently represents over $22 Trillion in investment capital800+ signatories

Investor Network on Climate Risk (INCR) [2003]Currently represents over $9 Trillion in investment capital90+ members90+ members

Carbon Disclosure Project (CDP) [2002]Currently represents over $71 Trillion in investment capitalact on behalf of 551 institutional investors

Institutional Investors Group on Climate Change (IIGCC) [2001]Currently represents $6 Trillion in investment capital70 members

Interfaith Center on Corporate Responsibility (ICCR) [1972]Currently represents over $100 Billion300 members

© GRI 2011

GRI Reporters - Databasehttp://www.globalreporting.org/GRIReports/GRIReportsList/

© GRI 2011

ESG Analysis of Medical Sector**

Johnson & Johnson

X X X X 6.67JohnsonAstraZeneca X X X 5.93

Becton Dickinson X X 6.90

Baxter X X X 6 78Baxter X X X 6.78

Merck & Co. X --- ---

GalaxoSmithKline X X --- ---

Sanofi-Aventis X --- ---

Abbott X X X 6.68

Pfizer X --- ---

Novartis X X X 6.61

Roche X X X 6.19

Allergan X --- ---

© GRI 2011

Medtronic X X X 6.52Based on 2010 data

Structure of the Health Care Industry

Health Care Providers

Medical Equipment

M di l S liMedical Supplies

Biotechnologygy

Pharmaceuticals

© GRI 2011

ESG at Goldman SachsPharma, Biotecs, Generics, ,

Company Corporate Governance

SocialEnvironment Overall 2010

ESG ScoreLeadership Employees Stakeholders

Johnson & Johnson 27 8 17 19 16 87

AstraZeneca 23 9 15 23 15 85

Merck & Co. 27 5 17 24 11 84

GalaxoSmithKline 24 8 14 22 13 81

S fi A ti 22 7 15 18 17 79Sanofi-Aventis 22 7 15 18 17 79

Abbott 27 7 12 20 10 76

Pfizer 27 6 13 14 7 67

N ti 24 8 15 20 11 78Novartis 24 8 15 20 11 78

Roche 20 8 13 19 18 78

Eli Lilly 27 7 12 17 8 71

Allergan 20 5 11 15 17 68

Watson Phrmaceutical 21 2 6 11 4 44

Maximum Score 30 10 20 30 20 110

© GRI 2011

Maximum Score 30 10 20 30 20 110

Medical Technology

Company Corporate Governance

SocialEnvironment Overall 2010

ESG ScoreLeadership Employees Stakeholders

Baxter 26 7 14 21 8 76

Medtronic 23 4 8 21 18 74

Becton Dickinson 24 7 6 17 4 58

Boston Scientific 23 3 6 20 4 56

Hospiria 22 5 8 10 10 55

St. Jude Medical 24 2 8 14 4 52

Stryker 21 2 9 14 4 50

Covidien 23 2 6 14 4 49

Edwards 19 2 5 12 4 42Lifesciences 19 2 5 12 4 42

Maximum score 30 10 20 30 20 110

© GRI 2011

What is the latest game changer?

© GRI 2011

Market Evolution300,000+ subscribers globally

3,500+ companies and climbing

ESG Aspects•Emissions •Energy Consumption•Energy Consumption•Human Rights•Policies•Board Make-UpBoard Make Up

Built around GRI

© GRI 2011

Bloomberg Company ReviewEATON Corp.• 70,000+ employees• $11 Billion in sales in 2009

Bloomberg Call Notes:

• $11 Billion in sales in 2009• Doing business in over 150 countries

“ . . . to make our (Bloomberg) content relevant to the marketplace, we needed to display the information exactly in the format provided by GRI (Global Reporting Initiative), as this has become the marketthis has become the market standard.”

© GRI 2011

Bloomberg Survey

“With over 300,000 users, the Bloomberg Professional service provides a great opportunity and platform for you to share information

ith t d t ti l i twith current and potential investors concerning your Sustainability or Corporate Social Responsibility program ”program.

“Our survey is based on the guiding principles of the GRIguiding principles of the GRI framework.”

© GRI 2011

Sustainability Performance

© GRI 2011

Environmental Performance

© GRI 2011

Sustainability Performance

© GRI 2011

GRI PublicationsGRI Guidelines & Template:

GRI Learning Publications:

Research and Development Publications…

© GRI 2011

p

Sector SupplementsAvailable: Under Development: Pilot Version:

Electric Utilities

Financial S i

Airport Operators

Construction &

Automotive

Logistics and Services

Food Processing

Real Estate

Event Organizers

Transportation

Public Agency

Mining & Metals Media Telecommunications

NGO Oil & Gas Apparel and Footwear

© GRI 2011

Certified Training PartnersCertified Training Partners

Over 60 certified training partners globallyOver 60 certified training partners globallyOver 5000 people trained

North America Partners

www.brownflynn.com http://isosgroup.com/ www.leadcanada.net

© GRI 2011

GRI Certified Software & Tools ProgramProgram

PE International May 2010SAP S2D2

Jun 2010Jun 2010

Microsoft EnviroCIPEnablon

Sep 2010Dec 2010Dec 2010Enablon

CSRwareCA Inc

Dec 2010Jan 2011May 2011CA Inc May 2011

© GRI 2011

GRI Regional RepresentationBrazil, Australia, India, China & US

20092009

20092009

2009200920102010

2009200920072007 20092009

© GRI 2011

S l Ch iLatest Developments

Supply Chain

Financial Markets Private Equity & ExchangesFinancial Markets, Private Equity & Exchanges

Integrated ReportingIntegrated Reporting

Government UptakeGovernment Uptake

G4 Developmentp

© GRI 2011

Global Regulatory Review"More governments are making sustainabilitymaking sustainability reporting mandatory.“

142 l t i t t• 142 regulatory instruments addressing sustainability reporting exist in the 30 p gcountries

• 65 percent of the standards• 65 percent of the standards are classified as mandatory, the rest are considered voluntary

© GRI 2011

GRI Reporters - Public SectorA Coruña Port Authority - SpainAbu Dhabi Chamber of Commerce & Industry - United Arab EmiratesAlsterdorf assitenz umland - GermanyArchitectural Services Department -China

UNEP Division of Technology,Industry and Economics (DTIE) – FranceEduvic - SpainEjército de ChileElectrical and Mechanical Services Department Government of Hong Kong

Nomura Research Institute JapanOffice National des Forest - FrancePenrith City Council – New ZealandQueensland Environmental Protection Agency – AustraliaRedland City Council New ZealandChina

ASM Bressanone - ItalyaT - Republic of KoreaAuckland City Council - New ZealandBilprovningen - SwedenBSCI - Belgium

Department, Government of Hong Kong - ChinaEMC (Environmental Management Corporation) – Republic of KoreaEmvisesa - SpainEnvironment Agency Abu Dhabi

Redland City Council - New ZealandRedland Shire Council - New ZealandSeoul Metro - Republic of KoreaServiguide - SpainSociedade Galega do Medio Ambiente (SOGAMA) - SpainSC e g u

Canada Post - CanadaCity of Amsterdam – The NetherlandsCity of Melbourne - AustraliaCity of Waidhofen an der Ybbs -Germany

o e t ge cy bu ab(EAD) - United Arab EmiratesFaHCSIA - AustraliaFondaction - CanadaGold Coast City Council - AustraliaHokkaido - Japan

(SOG ) SpaSociété de transport de Montréal -CanadaSOSFO – Republic of KoreaSystem State of the Environment of Minas Gerais - Brazil

City West Water - AustraliaConfederació de Cooperatives de Catalunya - SpainContext Group – United KingdomCSIRO - AustraliaDepartment of Corrections New

Ihobe - SpainInypsa - SpainKCSC – Republic of KoreaKED (Hellenic Public Real Estate Corporation) - GreeceKorea Tourism Organization

TEP - ItalyThe World Bank - USAUS Army- USAUS Postal ServiceVägverket - SwedenWaitakere City Council New ZealandDepartment of Corrections – New

ZealandDepartment of the Environment and Heritage (DEH) - AustraliaDepartment of Sustainability and Environment (DSE) - Australia

Korea Tourism Organization –Republic of KoreaLebensministerium Oesterreich - AustriaLinklaters – United KingdomMinistry Economic Affairs – The Netherlands

Waitakere City Council - New Zealand

© GRI 2011

( )* Between 2001 and 2009

V i US d E i ti i l diRecent ObservationsVarious US and European organizations, including Health Care Without Harm, have stated that the existing GRI “product responsibility” standard needs more G p p yspecifics on disclosure of companies' safer materials policies such as:

• Whether a company has a restricted substances list • Whether a company has list of substances of concern targeted for phase-outconcern targeted for phase out • Programs and metrics for achievement of those goals

The upcoming process of seeking stakeholder input on G4 standards will be an opportunity for healthcare institutions, NGOs and others to weigh in on whether

© GRI 2011

institutions, NGOs and others to weigh in on whether such additional guidelines are needed

Global Reporting Initiative

Thank you

Mike WallaceDirector, Focal Point USAGlobal Reporting Initiativewallace@globalreporting [email protected]+1 212 339 0356

cleanmed april 2011 final

Health & Medicine