Welcomes you to

Sponsored by

Exhibitors

How is EICC tackling CSR Reporting and Transparency?

Transparency• Identified as a key issue in 2012• Formed task force, developed KPIs and maturity

curve• Launching “data mining” project to help member

companies track KPIs in their EICC audits and SAQs

• Looking for ways to improve VAP protocol to collect better, quantifiable KPI data.

• Coming soon - An enhanced EICC baseline, and confidential benchmarking on KPIs for member companies.

Transparency KPIs:Labor Health and Safety Environment Ethics and

Governance- % workers consistently within 60 hr work week- % of workers consistently meeting EICC rest day requirement - % of purchasing managers responsible for working hours results of suppliers

- Injury rate- occupational disease rate- # lost days from injury- absenteeism rate- # work-related fatalities

- Total Weight of Hazardous and Non-Hazardous Waste by type and destination.

- Total Weight of Waste by Type and Disposal Method

- % and total number of business units analyzed for risks related to corruption

- % student workers- % workers under 18- % student workers that have a contract agreement signed by the vocational school, the company and the student- Description in place to ensure tasks assigned to young workers are appropriate for their age

- % of total workforce represented in formal joint management-worker health and safety committees

- Total Water Withdrawal by Source- Total water discharge by wastewater quality

Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with laws and regulations.

- risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor.

Number of successful prosecutions and amount of related fines

Total Direct (Scope 1) & Indirect (scope 2) Greenhouse Gases by Weight

- # of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes

% of workers trained on their rights - Grievance mechanisms in place, evidence they are in use and accessible to young/student workers

Evidence of unreported injuries and/or work-related disease or fatalities.

Have public GHG reduction goal and share reduction achieved in absolute and normalized values (EICC)

- % of employees trained in organization’s anti-corruption policies and procedures.

- Y/N Does the company have a publicly available conflict minerals policy.

Working Maturity Curve - TTF

AwarenessAwareness

ImpactImpact

CommitmentCommitment

IntegratedIntegrated

StrategicStrategic

Information from these levels contribute to EICC’s aggregated information.

Proposal: must have 10 members report on a metric before it is aggregated.

Awareness

AwarenessAwareness

ImpactImpact

CommitmentCommitment

IntegratedIntegrated

StrategicStrategic

• Identify 10 KPIs to start program (easiest to report)• Develop corporate commitment to track and report on these KPIs in

own operations (with eye to tracking and reporting in supply chain over time)

• Begin developing company-specific roadmap for all steps in maturity curve.

Commitment

AwarenessAwareness

ImpactImpact

CommitmentCommitment

IntegratedIntegrated

StrategicStrategic

• Report on 10 KPIs for own operations (to EICC, public if interested)• All 10 KPIs should have quantitative metrics to report• Develop plan to report on 26 KPIs for own facilities and supply

chain• Develop goals for at least 10 KPIs, report to EICC (and public if

interested).

Impact

AwarenessAwareness

ImpactImpact

CommitmentCommitment

IntegratedIntegrated

StrategicStrategic

• Report on 26 KPIs for own operations and 10 for supply chain• All KPIs should have quantitative metrics to report• Almost all reporting should be public• Finalize plan to report on 26 KPIs for supply chain• Report on year-over-year progress on KPI goals for own operations (and if

possible, for supply chain) If not progress has been made, explain why.• Develop additional KPI quantitative metrics within key 26 to add depth to

reporting• Develop KPIs unique to your business and begin reporting on them

Strategic

AwarenessAwareness

ImpactImpact

CommitmentCommitment

IntegratedIntegrated

StrategicStrategic

• Report on 26 KPIs for own operations and all 26 for supply chain

• All KPIs should have quantitative metrics to report• All reporting should be public• Report on year-over-year progress on KPI goals for

own operations (and if possible, for supply chain) If not progress has been made, explain why.

• Report on additional quantitative metrics associated with KPIs for deeper data

• Reportin on KPIs unique to your business, set goals, and track over time

Maturity curve in action tracking transparency performance improvement

1. Awareness 2. Commitment 3. Impact 4. Strategic 5. Integrated

L - Working Hours Working on corporate commitment. TBD.

L – Child Labor Have had corporate commitment since 2007.

Have not reported baseline data, will report to EICC in 2014

H&S – Injury rates Have had corporate commitment since 2007

Reporting casualties and lost days publicly for own operations since 2008

Reporting on 12 key H&S metrics for own operations since 2012, will begin reporting to EICC immediately.

Reporting on 5 key H&S supply chain metrics since 2012 for tier 1 suppliers. Built dashboard for reporting and will share with other EICC members

H&S key metrics included in Annual report since 2011.

ENV – GHG emissions Developing corporate commitment

ENV – waste Developed corporate commitment

Establishing a baseline in 2014

ENV – wastewater Developed corporate commitment to tracking and mitigation

Established wastewater baseline and reported publicly in 2011

Reporting on wastewater by facility and developed intensity benchmarks.

Developing long-term broader reporting for supply chain in 2014.

ETH – anti-corruption Establishing corporate policies in 2013

EICC’s Annual Reporting

• Traditionally have reported on activity across industry, but not much on performance.

• Currently performing “data mining” of VAP audits to present an industry performance baseline in 2014 (11 KPIs, 8 connected to GRI indicators).

• By 2015, hope to expand to 26 KPIs, and continue to increase data set across industry.

Welcomes you to

Sponsored by

Exhibitors

www.cdp.net | @CDP

CDP: sustainability reporting and ranking

Maxfield Weiss, Senior ManagerCDP North AmericaEICC ConferenceOctober 2, 2013

www.cdp.net | @CDP

Overview

Increasing Investor Interest in CDP

CDP Questionnaire - Ratings/Rankings (CDLI/CPLI)

CDP Data Link to Sustainability Ratings/Rankings

Company Benchmarking & Supplier Ranking

Agenda

www.cdp.net | @CDP

Mission

To transform the global economic system to prevent dangerous climate change and value our natural resources by putting relevant information at the heart of business, investment and policy decisions.

www.cdp.net | @CDP

About CDP

CDP is an international, not-for-profit organization providing the only global system for companies and cities to measure, disclose, manage and share vital environmental information.

CDP has 501(c)3 charitable status in the U.S. via its fiscal agent and sponsor liaison,

Rockefeller Philanthropy Advisors

www.cdp.net | @CDP

Overview

Increasing Investor Interest in CDP

CDP Questionnaire - Ratings/Rankings (CDLI/CPLI)

CDP Data Link to Sustainability Ratings/Rankings

Company Benchmarking & Supplier Ranking

Agenda

www.cdp.net | @CDP

CDP Signatories: Increasing Investor Interest

To transform the global economic system to prevent dangerous climate change and value our natural resources by putting relevant information at the heart of business, investment and policy decisions.

Forests

100Companies reporting via FFD

Water

340+Companies reporting via CDP

Climate change

4100+ Companies reporting via CDP

0

15

30

45

60

75

90

0

150

300

450

600

750

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Assets ($ trillion)

Num

ber o

f Sig

nato

ries

CDP Signatories & Signatory Assets: 2003 - 2013

Climate change signatories Water signatories Forests signatoriesClimate change assets Water assets Forests assets

www.cdp.net | @CDP

CDP: Providing data to educate and inform the market

www.cdp.net | @CDP

Overview

Increasing Investor Interest in CDP

CDP Questionnaire - Ratings/Rankings (CDLI/CPLI)

CDP Data Link to Sustainability Ratings/Rankings

Company Benchmarking & Supplier Ranking

Agenda

www.cdp.net | @CDP

1. Management Strategies, targets, emissions reduction activities

2. Risks & Opportunities:Regulatory, physical and other

3. Emissions & Energy reporting:Energy use, greenhouse gas emissions

4. Supply Chain module:Customer specific information – e.g. allocating emissions to members

The CDP questionnaire inquires about:

www.cdp.net | @CDP

Disclosure drives behavior change

Data informs investment and

procurement analysis and engagement

Benchmarking accelerates

learning

Disclosure process

improves performance

www.cdp.net | @CDP

Disclosure Score Performance Score

Understanding Climate Disclosure & Performance Leadership Index rankings - CDLI & CPLI

www.cdp.net | @CDP

Financial performance of leading CDP companies (Global 500)

CDP & Sustainable Insights Capital Management link

climate change engagement to finical performance

Companies with superior CDP disclosure provide:

+5.2% return on equity

+18.1% cash flow stability

+1.6% dividend growth over low scoring peers

www.cdp.net | @CDP

Overview

Increasing Investor Interest in CDP

CDP Questionnaire - Ratings/Rankings (CDLI/CPLI)

CDP Data Link to Sustainability Ratings/Rankings

Company Benchmarking & Supplier Ranking

Agenda

www.cdp.net | @CDP

CDP data informs ratings and rankings

CDP placed 1st most credible and 2nd most familiar sustainability ratings/rankings in study

~75% other most familiar, relevant ratings/rankings incorporate CDP data

CDP partners with other organizations and companies that provide research, data products, indices and ratings/rankings to companies, investors and consumers.

www.cdp.net | @CDP

CDP’s Link to the Newsweek Green Rankings

GREEN SCORE

Companies on the S&P 50500 and the Global 500 are ranked by their overall Green Score. This score is derived from three component scores: 1.Environmental Impact Score2.Environmental Management Score3.Environmental Disclosure Score*

*Assesses the breadth and quality of company environmental reporting, as determined by the level of involvement in key transparency initiatives. These include the CDP.

www.cdp.net | @CDP

CDP’s Link to the Newsweek Green Rankings

Apple#118 (-68 since 2011)Technology Equipment

Apple's Green Score took a hit this year due to the company’s resistance to participating in public reporting via the Carbon Disclosure Project (CDP) for the second straight year. The CDP is a leading environmental nonprofit that publicly surveys the world’s largest companies on their greenhouse-gas emissions, management systems, and reduction

Caterpillar#252 (-108 since 2011)Industrial Goods

Caterpillar slipped from 144 in 2011 to 252 in 2012, in part due to weakened public-disclosure practices. It failed to complete a submission to the Carbon Disclosure Project this year and did not prepare its corporate responsibility report according to Global Reporting Initiative guidelines (a widely accepted standard). Additionally, the company was fined $2.55 million by the U.S. Department of Justice as a result of engines that did not conform to environmental regulations...

www.cdp.net | @CDP

Shareholders Care – Bloomberg

Over 1,000,000 CDP data points are downloaded via

Bloomberg every 6 weeks

www.cdp.net | @CDP

Shareholders Care – Google Finance

www.cdp.net | @CDP

New collaborations to streamline corporate sustainability reporting

Through an agreement with SAM, from 2013 responding companies will have the option of sharing their CDP data with DJSI thus avoiding duplication (DJSI has incorporated 7 CDP climate change questions)

Through an MoU, CDP and GRI are working together to promote the harmonization of sustainability reporting guidelines.

(GRI has adopted CDP climate change questions into GRI G4)

CDP and SASB signed an MoU to promote greater understanding, visibility and support for the development of disclosure standards for climate change-related and sustainability issues.

(CDP’s data will determine the materiality of climate change-related issues in more than 80 industries.)

www.cdp.net | @CDP

Overview

Increasing Investor Interest in CDP

CDP Questionnaire - Ratings/Rankings (CDLI/CPLI)

CDP Data Link to Sustainability Ratings/Rankings

Company Benchmarking & Supplier Ranking

Agenda

www.cdp.net | @CDP

Companies are utilizing CDP data intelligence tools to:

Establish emissions targets

Identify initiatives of best practice

Benchmark their emissions targets

Assess the risks to the business

Assess the level of detail that competitors are disclosing

Companies are Using CDP Data

www.cdp.net | @CDP

CDP Supplier Data Use by Purchasing Companies

Supplier EvaluationIn conjunction with members L’Oreal & Coca-Cola, CDP developed a supplier score card designed to inform meaningful interactions between buyer and vendor.

Price Negotiation “When suppliers ask for price increases due to energy cost, we first turn to their CDP reporting history. We require reporting on energy and climate risk management before granting these increases unless there are exceptional circumstances.”

Risk Management Marfrig Group uses the data collected from suppliers through CDP Supply Chain to conduct a risk and opportunity analysis on climate risk management.

www.cdp.net | @CDP

Thank you.

Maxfield Weiss

Senior Manager, Disclosure Services

646.517.1457

maxfield.weiss@cdp.net

Welcomes you to

Sponsored by

Exhibitors