A passion for sustainability

Transcription

1 A passion for sustainability Creating a report that delivers value to your business Elizabeth Mathew, Shohini Parker, Mary Stewart

2 We steadfastly pursued the idea that we must practice what we preach when talking to our clients about the benefits of reducing greenhouse emissions Tony Cooper, CEO

3 Content Why report? Building the business case How did we go about reporting? Application of GRI principles: relevance Highlight: stakeholder engagement Carbon footprint Assess, reduce, offset What next?

4 The business case for reporting

5 Defining the business case Voluntarily developing and publishing a sustainability report is an investment requiring justification. What is required? How can the investment return be measured?

6 What do the stakeholders want? The right level of sustainability reporting for a company will meet the expectations of its stakeholders. Stakeholders vary depending on ownership structure, company size, industry sector. Understanding stakeholders expectations may be achieved through direct engagement or external research. What priority does the company place on meeting the expectations of their stakeholders?

7 What do investors want? For publicly listed companies, it s getting hot in here! Investors applying increased public pressure. ACSI for the first time named laggards within the ASX200 Several studies found correlations between the quality of companies sustainability reporting and company value, confidence in broader company governance, and risk management practices. What will investors assume in the absence of disclosed sustainability data? Will this affect company value?

8 What do stakeholders want? Privately owned companies: key stakeholders may be other parties. Clients may require supplier companies to meet certain ESG criteria. Special interest groups may identify sustainability risks along a supply chain and cause significant brand and reputational damage.

9 Case study: Why did Energetics invest in a sustainability report? Client expectations we practise what we preach, a sector driver Client requirements in tendering, a supply chain driver Brand value Showcasing our expertise Staff expectations To meet the expectations of our people

10 Stakeholder expectations are changing The Global Reporting Initiative (GRI) is no longer considered a prerequisite for best practice reporting. A stand-alone sustainability report may not be necessary. Existing data, processes and reports may be used to produce a fit-for-purpose sustainability report in a streamlined and cost-effective way.

11 What s in it for us? The research says... What is the expected impact on company value? The Australian Accounting Review, March 2013: A strong positive correlation was found between an organisation s level of sustainability reporting and its expected future value. What material risk areas could be mitigated? Could any risks be increased? ACSI: a strong correlation exists between higher quality sustainability reporting and the perception that companies are properly managing those risks (via independent Regnan and MCSI ratings).

12 Scope of our report

13 The framework Global Reporting Initiative (GRI) 3.1 guidelines How to disclose sustainability performance ( A framework Globally applicable guidelines Sector specific supplements Assists in managing sustainability (not just sustainability reporting) Triple bottom line approach

14 Report content Content Strategy and profile Management approach Selection of performance indicators Report content principles Writing a quality report GRI application levels Quantity does not equal quality!

15 The value of stakeholder engagement Phase 1 Identify Full suite of GRI 3.1 indicators Shortlisted by project team Outcome: 23 preliminary indicators 17 core indicators 6 additional indicators

16 The value of stakeholder engagement Phase 2 Prioritise Identified and prioritised stakeholders Full suite of indicators excluding indicators not relevant to our business Developed and sent online survey questionnaire to stakeholders Undertook materiality assessment Outcome: 30 preliminary indicators 11 material aspects 6 non-material aspects.

17 The value of stakeholder engagement Phase 3 Validate Reporting team conducted peer reviews Aligned outcome of first two phases with data availability and monitoring systems Streamlined reporting based on relevance and impact on Energetics 21 performance indicators 18 core indicators 3 additional indicators

18 Our disclosure

19 Summary of our disclosure Standard disclosures Strategy and Analysis Organisational profile Report parameters Governance, commitments and engagement Energetics' total (full+partial) Total GRI indicators

20 Performance indicators Number of performance indicators Economic performance Environmental performance Social performance Energetics' total (full+partial) Total GRI indicators

21 Energetics carbon neutral position

22 Carbon footprint boundary Life Cycle Assessment Inclusive Precautionary Embodied energy Office supplies Consultant services Functions hosted Business Case for information quality Waste From building Energetics Pty Ltd Work related travel Air, road, rail Available on-line Energy sources Electricity Natural gas Infrastructure Leased offices

23 Carbon footprint

24 Emissions reduction initiatives eteam projects Office energy use Sensors on lighting controls and changed fittings Energy efficient white goods Work related travel Videoconferencing facilities Emissions from waste Liaison with cleaners

25 Carbon footprint

26 Carbon footprint

27 Carbon offsets Selection criteria Need to be an ethical fit Need to meet our budget Need to be defensible, additional, retireable, transparent What did we buy? LifeStraw/Safe Water Provision project in Kenya (Gold Standard) Many additional sustainability criteria Run of river hydro project in India (VCS) Affordable and defensible

28 What next?

29 A commitment to action Committed to reporting every two years Public statement of our intent to change and improve. Achieve targets and maintain our position Be innovative in how we progress Challenges lying ahead in light of economic situation.

30 Meet our people Brisbane Canberra Melbourne Perth Sydney Follow Linkedin.com/company/energetics-pty-ltd Subscribe Energetics free newsletter provides companies with insight into energy and carbon issues.

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32 GRI steps Prepare Visualise Sustainability Report, Peer Analysis Project Management Kick-off mtg Preliminary key aspects, challenges, opportunities Connect Identify stakeholders Prioritise Stakeholders Stakeholder consultation to help affirm key aspects and expectations - variety of dialogue forms possible Define Select issues for action and report MATERIALI TY Recommend ations Decisions on Report content Discuss and set Goals Internal Checks on feasibility of Goals Monitor Check Processes Collect Data Ensure Quality of Data against Principles Follow-up Communicate Choose communicati on mode Write the report Finalise Report Launch it Prepare for next cycle

33 Links to more information Our Year Ending March 2012 Sustainability Report Energetics Life Cycle Assessment (LCA) Energetics Emissions Monitoring Plan (EMP) Global Reporting Initiative (GRI) Lifestraw /Safe Water Provision project in Kenya Run of river hydro