the future of sustainability reporting - corporate citizenship · the future of sustainability...

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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

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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


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

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Asking questions

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Ask a Question


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

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About our research


What we have heard

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“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?”


The Reporting Journey: 8 Defining Questions

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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?


Four drivers of change

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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.


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


Driver 2: Issues Expansion RESPONDING TO A CHANGING LANDSCAPE

The scope and significance of issues are expanding across extended value chains.

Patagonia


Driver 3: Standards Proliferation RESPONDING TO A CHANGING LANDSCAPE

There is a rapid proliferation of sustainability-related standards, rankings, ratings, and

indices.


Driver 4: Digital Innovation RESPONDING TO A CHANGING LANDSCAPE

Digital innovation offer new ways of presenting data and communicating with

audiences.


Davida Heller Assistant Vice President

Corporate Sustainability


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


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$100B Environmental Finance Goal Reporting

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For more information on Citi’s Citizenship report

and sustainability strategy please visit www.citizenship.citigroup.com

http://www.citizenship.citigroup.com/


Audience Poll


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

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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

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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

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The Reporting Journey: Where do you fall?

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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


Q&A


Thank you for joining us!


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

mailto:[email protected]



http://www.corporate-citizenship.com/






https://www.linkedin.com/company/corporate-citizenship?trk=biz-companies-cym




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