Réunion du réseau R3 des «Responsables du reporting RSE» 15 mars 2012 Propriété IRSE Reproduction interdite Formation Management de la RSE 11 mars 2011 1
Bienvenue au réseau R3 Une communauté d échanges entre experts du reporting RSE Avec un objectif unique de servir la connaissance de l enjeu du reporting extra financier, sa qualité et son utilité Pour échanger sur les modalités de construction du sujet, dans son actualité, et partager des réflexions et des expériences pratiques entre professionnels Animé par quelques responsables et l Institut RSE, de manière informelle Des réunions dans les entreprises 2
Bienvenue au réseau R3 Avec le soutien d Orientation Durable (cabinet de recrutement en DD & RSE) et du C3D (Collège des directeurs du développement durable) 3
Merci à nos hôtes et à nos invités Gérard Leseul, responsable développement durable et RSE du Crédit Mutuel Nicolas Jandot, consultant senior de l Institut RSE Mark Line et David Knight, associés dirigeants de Twotomorrows Débat Martine Léonard, présidente de la commission développement durable de la SFAF (Société française des analystes financiers) 4
Notre sujet : quel reporting extra-financier en Grande Bretagne? La démarche de reporting RSE des entreprises en Grande Bretagne: Spécificités d'approche Référentiels utilisés Mode de vérification Utilisation des outils de communication 5
Programme des échanges 18h à 18h10 Accueil par Gérard Leseul, Crédit Mutuel 18h10 à 18h20 Présentation de Nicolas Jandot, consultant senior de l Institut RSE 18h20 à 18h50 Exposé de Mark Line et David Knight, Twotomorrows, sur les grandes tendances du reporting extra-financier en Grande- Bretagne 6
Programme des échanges 18h50 à 19h Echanges avec la salle 19h à 19h15 Martine Léonard, présidente de la commission développement durable de la SFAF (Société française des analystes financiers) 7
Réunion réseau R3 15 mars 2012 Le reporting extra-financier au Royaume-Uni Insights from extra-financial reporting in the UK
Britannia rules the wave! UK tops many studies on reporting Source: KPMG International study on reporting, November 2011 Réunion R3: Le reporting extra-financier au Royaume-Uni Reproduction interdite 9
UK combines a strong interest in ESG information from its investors with a high level of integration of ESG information by issuers Réunion R3: Le reporting extra-financier au Royaume-Uni Reproduction interdite 10
UK combines a strong interest in ESG information from its investors with a high level of integration of ESG information by issuers (2) Source: Bloomberg and SAM, 2011 Réunion R3: Le reporting extra-financier au Royaume-Uni Reproduction interdite 11
Reuters points out the relevancy of reporting in UK UK companies publish many CSR reports Source: Asset 4 - Reuters, ESG Reporting trends, 2010 (on data FY2009) Source: Corporate Register, March 2011 (covering CSR reports published in 2010) Réunion R3: Le reporting extra-financier au Royaume-Uni Reproduction interdite 12
UK s most famous sustainability business case Marks & Spencer s Plan A (because there is no Plan B) One of the best sustainability report: - Embedded strategic and long-term vision (2015 2020) - Value-added and money saved thanks to CSR actions explicitly measured and reported - Key CSR issues linked to action plans and bridged with relevant indicators and objectives - No story telling or wishful thinking - Innovating best practices - Concise (20/80 Law): finds good balance between quality and quantity of information Réunion R3: Le reporting extra-financier au Royaume-Uni Reproduction interdite 13
UK companies in the top 2 CSR ratings Réunion R3: Le reporting extra-financier au Royaume-Uni Reproduction interdite 14
Those stats lead us to a few questions What is the main driver of reporting in UK? What makes CSR reporting in UK «unique» in comparizon with other countries? Are UK investors satisfied with the ESG information they get? UK opinion on the EU s project on ESG reporting since UK did not need a strong legislative push (unlike France, Denmark, Sweden etc )? Why climate change matters more in UK than in other countries? Any Stern effect? How is integrated reporting thought out? Why such a limited standardization in the verification of ESG information? Réunion R3: Le reporting extra-financier au Royaume-Uni Reproduction interdite 15
Pour en savoir plus Retrouvez-nous sur notre site Internet : www.institutrse.com 16
Non Financial Reporting UK/Global Perspective Two Tomorrows, 2012
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Market-led reporting landscape UK reporting is generally marketled and self-regulatory Companies rather than government are shaping the reporting landscape Appeal to customer base Maintain positive reputation/image Attract investors Companies can use their own ideas and are not restricted by many rules on reporting yet Two Tomorrows, 2011 23
Financial Benefits of CSR 47% of G250 Increased Revenues Improved Cost Savings Increased Market Share Source: Reporting Survey KPMG 2011 Marks & Spencer payback for Plan A within 2 years, worth 50m in profits 2010 UK Cooperative Group Ethical Consumer Survey 18% growth worth 43.2 billion in 2009 AT Kearney survey 2010 strong commitment to CSR outperformed peers by15% in 16 out of 18 industries 24
Push and Pull Performance H I G H L O W Opportunities Critical Risks Two Tomorrows, 2011 UK companies look to each other for new ideas, but also to keep up with the pack Companies don t want to be seen as laggards! Benchmarking commonplace Stakeholder expectations Customers to NGO s Stakeholder Expectations 25
Materiality-Driven Reporting UK demonstrating strong leadership in using materiality to create better reports: More relevant to company s core business activities More relevant and accessible to stakeholders Better targeted at various audiences More focused and more precise Global trend towards robust materiality GRI G4 also moving us in this direction
Benefits of Materiality Helps identify, understand & prioritise impacts and resources A framework that feeds into business strategy Systematic justification Enables focused reporting Improves internal and external communication, and engagement with stakeholders Allows organisations to anticipate future operational conditions and opportunities Helps us identify the core, significant risks that affect our ability to deliver our commercial strategies Rio Tinto 27
Rio Tinto s Materiality Test 28 Two Tomorrows, 2011
Stakeholder led No longer good enough for companies to choose their own material issues validate by inviting external opinion Builds TRUST and accountability Is efficient, helps anticipate future operating conditions, risks and opportunities
AA1000SES A robust framework for designing, implementing, assessing and communicating Principles-based Inclusive Material Responsive Open-source, systems-based, aligned with other key standards Generally applicable guidance for continuous improvement regardless of starting point 30 Source: AA1000 SES 2011
Vodafone materiality & stakeholder engagement Vodafone utilise significant stakeholder engagement across many stakeholder groups to inform their materiality mapping The feedback we receive from external stakeholders informs our judgment about sustainability priorities for our business and feeds into our sustainability strategy as appropriate. Vodafone
Issues raised by investors in 2011 CO 2 emissions Corporation tax (UK) UK Bribery Act Adult content Gambling Egypt situation Global Network Initiative Socially beneficial services health / agriculture Smart grids Mobile banking Solar power Suppliers Handset recycling Millennium development goals Governance Data protection / privacy
What investors want Integrated report with a GRI G3.1 Index (they don t read reports) Leadership re CSR issues Chair/CEO Durability of business model Clarity on material issues and governance Material KPI s, assured/verified Clear, downloadable CDP return Remuneration determined in part by SD/ESG performance Material v s Strategic issue Material: (5-10% impact on KPI s) Strategic: impact on business long term 35 Source compiled from Ethical Corporation Reporting conference Nov 09 Two Tomorrows, 2011
Global Trends Two Tomorrows, 2011 36
Rise in legislation, use of GRI Integration Print v s internet Social media, video and interactivity More focused using materiality Verification to stakeholder assurance Two Tomorrows, 2011 37
Rise in Reporting Legislation EU EU Accounts Modernisation Directive Enhanced review of business including nonfinancial key performances indicators on environmental and social issues EC Communication on Corporate Social Responsibility (October 2011) Spain: Sustainable Economy Law (2011) Denmark, Norway, Sweden, France, Netherlands and UK Non-EU Brazil: adopted IFRS (2010) China: CSR Guidelines (2009) South Africa: King III Code of Governance Principles (2009) Australia: ACSI template (2010-) New Zealand US (TRI/ Sarbanes Oxley 2002) Canada Two Tomorrows, 2011 38
G4 consultation outputs Governance Sustainability Strategy, risks and opportunities Material issues coverage, KPI s and targets Standardised sector metrics Sustainability v s integrated reporting guidance Topic focus; e.g. Ethics, eco-innovation, biodiversity/ecosystem evaluation Two Tomorrows, 2011 39
Integrated Reporting It is about integrated reporting not one integrated report Support the information needs of long-term investors Reflect the interconnections between environmental, social, governance and financial factors in decisions Rebalance performance metrics away from an undue emphasis on short-term financial performance Bring reporting closer to the information used by management to run the business on a day-to-day basis 40 Two Tomorrows, 2011
Business Model Reporting how they create and generate value over the long term The missing link to unify a company s story with stakeholder/investor engagement? FTSE100 in 2011: - 68% mention business model - Only a quarter provide real detail Source: Black Sun
Digital v s Print reporting Benefits to online reporting Faster Cheaper Wider distribution Lower environmental impact sometimes! Not set in stone Opportunities Real time reporting Integrate and link to other corporate material Multiple ways of organising content Audience-led distribution Encourage dialogue, gather feedback Two Tomorrows, 2011 42
Report formats
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Source: Berkeley/SustainAbility 2009 Two Tomorrows, 2011 45
The rise and rise Years to reach 50 million users: Radio: 38 years TV: 13 years WWW: 7 years Facebook: 400 million users in 5 years The number 1 reason 1.6 billion people go online is social media Two Tomorrows, 2011 46 Two Tomorrows, 2011
Using social media We don t have a choice on whether we do social media, the question is how well we do it. Eric Qualman, author Socialnomics Two Tomorrows, 2011 47
PepsiCo Refresh films uploaded visitors vote grants made Two Tomorrows, 2011 48
GE Ecomagination GE define categories Ideas shared Commented on Funding decision Developed Taken to market Two Tomorrows, 2011 49
Risks of social media You are not in control of it: it is viral Hijack potential: e.g. Vodafone's #makesmesmile Twitter campaign was hijacked by fair-tax protesters UKUncut Always open: resources needed You must be ready to connect on all the relevant issues at all times People don t like parasite marketing @KennethCole: Re Egypt tweet: we weren't intending to make light of a serious situation. We understand the sensitivity of this historic moment KC Two Tomorrows, 2011 50
Top tips Define your goals and choose your tools Twitter broadcasts; Facebook conversations Know your audience What do your audience like to do? What can they access? Be straight with people To win trust Integrate tools and media Think about the user journey Plan to maintain and enhance It needs nurturing Understand the risks So you can avoid them! Two Tomorrows, 2011 51
Trust through assurance Trust in your report and trust in your company 52 Two Tomorrows, 2011
Stakeholder credibility AA1000 AS (08) Stakeholders voices in reports: Comment boxes, videos, blogs, web-forums, panel statements and formal responses to NGO reports. Stakeholder Panels: Strategy (e.g. EDF Energy) Review (e.g. Shell) Assurance (e.g. Balfour Beatty) Two Tomorrows, 2011 53
Adding Credibility To Reports AA1000AS and APS (2008) Two Tomorrows, 2011 54
Unilever external commentary Two Tomorrows, 2011 55
Balfour Beatty Panel Two Tomorrows, 2011 56