The Evolution of
Corporate Reporting
for Integrated
Performance
The UN Global Compact-Accenture CEO study on Sustainability
2013 shows that CEO’s recognize the sustainability challenge, but
grapple with measuring and valuing their activities
Situation
Sustainability is perceived to be very important by
CEO´s:
•93% believe that sustainability will be important to the
future success of their business.
Complication
•80% view sustainability as a route to competitive
advantage in their industry.
However CEO´s find sustainability difficult to
implement and quantify:
•38% believe they can accurately quantify the value of
their sustainability efforts.
•37% see the lack of a link to business value as a barrier
to accelerating progress.
• The KPMG study reviewed corporate
reports issued between 2012 and 2013 by
the 10 largest global companies in each of
10 industry sectors.
• 100 companies (and their associated
corporate foundations) invested
approximately, 2.5 percent of their pre-tax
profits in programs to tackle social and
environmental challenges.
Source :
http://www.kpmg.com/Global/en/IssuesAndInsigh
ts/ArticlesPublications/sustainableinsight/Pages/unlocking-value-socialinvestment.aspx
• 80% reported none or limited quantified
metrics for the impact of the programs they
fund.
• 68% reported no detailed investment
strategy.
The evolution (a short history)
• Innovest Strategic Value
Advisors
• Formation of
Global Reporting
Initiative (GRI)
• Sustainable Asset
Management (SAM)
• KLD Research
83
• EIRIS
Research
88
90
92
95
96
97
• Launch of Dow Jones
Sustainability Index (DJSI)
• Formation of oekom research
AG through spun- off from
ökom GmbH
98
• Formation of Risk
Metrics Group
through spun off
from J.P. Morgan
• Domini Social
Index
99
• Launch of the Dow
Jones STOXX
Sustainability Index
• Launch of FTSE4
Good Index Series
00
01
• Launch of Carbon Disclosure
Project (CDP)
• Calvert Social Index
• United Nations Environnent
Programme Finance Initiative
(UNEP FI)
Source: RobecoSAM
4
The evolution (a short history)
• Launch of Dow Jones Sustainability
Index Asia Pacific, and Korea
• Launch of S&P/Hawkamah
ESG Pan Arab Index
• Thomson Reuters acquired ASSET4
• Mexican Stock Exchange
Sustainability Index
• Bloomberg launched ESG Data Service
• Foundation of Glass,
Lewis & Co.
02
03
04
• RiskMetrics acquired KLD Research and
Innovest
• Launch of the Dow Jones
Sustainability Index North
America
• Merger of Jantzi Research with
Sustainalytics
• Launch of UNPRI
05
06
07
08
09
10
• S&P ESG India
• NASDAQ OMX - GES
Sustainability Index
JSE SRI Index
• Launch ASPI
• Bovespa Corporate
Sustainability Index
• Goldman Sachs Sustain
Focus List
12
• Acquisition of
Responsible
Research by
Sustainalytics
• Inclusion of ESG
ratings in asset
manager search
process by Mercer
• Launch of the Ethibel
Sustainability Index
• Vigeo Research
11
• First Chinese Sustainability
Index
• S&P EGX ESG Index (Egypt)
• Launch of BSEGreenex, India's
first green index
• MSCI acquired RiskMetrics
Group, Inc.
Source: RobecoSAM
5
And the story continued in 2013 ……
• SASB issues first set of standards for
healthcare sector issued
• GRI issues G4 Guidelines
• IIRC issues first <IR> Framework
Complex landscape
MVR
Disclosure
Low
Impact
Disclosure
Low
Impact
Ratings&&
Rating
Investment
Investment
MVR
Measurement
Measurement
Changing the
Rules of the
Game
Lower
Impact
Lower
Impact
Valuation
Valuation
Techniques
7
Future evolution – Convergence, alignment …..
8