Ecological Footprint = 1,5

Transcription

1 Redefining Value

2 COMPLEX PUZZLE

3 Complicated World

4 Ecological Footprint = 1,5

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6 Business Solutions Scaling up requires 3 key elements ACTION2020 PRIORITY AREAS TO REACH SOCIETAL MUST-HAVES Today Improve Business Case

7 IMPROVE THE BUSINESS CASE

8 Long-term vision True cost, True value management Financial Capital Business Management Traditional management Natural Capital Social Capital

9 Transformation Needed Business Solutions ACTION2020 PRIORITY AREAS TO REACH SOCIETAL MUST-HAVES Today Improve Business Case

10 Cost of Risk

11 Radical Transparency

12 Changing the rules of the game

13 Capital Market Valuations

14 WBCSD Redefining Value Accelerate progress to a world where more sustainable companies are recognized and rewarded, and therefore are more successful. Integrate natural and social capital measurement and valuation into corporate performance management. Improve the effectiveness of nonfinancial internal and external reporting. Measurement, valuation and reporting reflect the true value of a company and discloses true profit and true cost. 14

15 TRENDS in CORPORATE REPORTING

16 Reporting is a dynamic process And not a goal in itself, but an instrument to: 1. improve the effectiveness of corporate investments in sustainability 2. trigger internal changes towards integrated decision-making Key role to play in accelerating transition towards true value

17 A complex landscape requiring business leadership! Disclosure MVR Disclosure Low Impact Measurement MVR Measurement Low Impact Changing the Rules of the Game Lower Impact Ratings & & Investment Investment Lower Impact Valuation Techniques Valuation 17

18 A process founded on integrated thinking that results in a periodic integrated report by an organization about value creation over time and related communications regarding aspects of value creation.

19 IIRC uptake: dependencies on capitals Votorantim Group

20 And more SASB established in the US in 2013 aims to develop sustainability accounting standards to support publicly-listed corporations disclose material factors in compliance with the US SEC requirements GRI G4 guidelines issued in 2013 with a strengthened focus on materiality (stakeholder approach) CDSB is expanding its Climate Change Reporting Framework to include information about environmental matters in mainstream corporate reports to be launched in 2015 EU passed legislation to require member businesses (>500 employees and/or public interest) to disclose sustainability performance last April 20

21 Financial Accounts INTEGRATED VALUATION INTEGRATED REPORTING Meaningful transparency Non-Financial Reporting T R U E Accounting Principles - GAAP - Management Accounts FINANCIAL CAPITAL Comparability & Materiality Better informed decisions Non-Financial Principles - GASP - EP&L and other methodologies Natural Capital Protocol NATURAL CAPITAL H O W - W H A T SP&L and other methodologies Social Capital Protocol SOCIAL CAPITAL V A L U E

22 What about corporate practice? Less than 12% of reports reviewed reflect those sustainability issues considered to be material to the business. 80% of WBCSD members produce a stand-alone sustainability report with the rest developing self-declared integrated reports 75% use the GRI Guidelines with an upward trend to combine the use of several frameworks 60% of total reports reviewed have some form of assurance on their sustainability disclosures with limited level as the dominant form When known, the average time period between year-end and the publication date is approximately six months reflecting a disconnect between sustainability and financial reporting cycles 22

23 Internal decision-making External disclosure Management tools Reporting frameworks 23

24 WBCSD is not new to this space Social Profit & Loss Account Feasibility Study

25 Natural and Social Capital Protocol Components Top-down Elements Protocol Frameworks Purpose > Principles > Scope & boundaries > Overview of Components Practical Methodologies & Guidelines Approaches to measurement & valuation, e.g. S P&L; E P&L; others Metrics Key Performance Indicators > Units of Measurement, incl. from SASB; GRI Bottom-up Elements Measurement & Valuation of Action 2020 Priority Areas Minimum standards > best practice > methodologies > KPIs Sector Initiatives standardized metrics / methodologies by sector Human Rights Skills & Employment Inclusive Business Rural Livelihoods Sustainable Lifestyles Climate & Energy Water Ecosystems & Land Use Chemica ls Forests Mobility Cement 25

26 Overall coordination Multi-stakeholder consultation process Generic Natural Capital Protocol Sector guides for Food & Beverage + Apparel 26

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