Overview Sustainability Reporting

National Thermal Power Corporation 2 July 2008

Confederation of Indian Industry

Sustainability
Continuance in the long term Synonymous with triple bottom line Triple bottom line with process elements of accountability and stakeholder engagements

Confederation of Indian Industry

Sustainability: American Electric Power

Sustainability requires commitment, collaboration, action and results. It also involves a willingness to lead and to take prudent risks on behalf of shareholders and society. To be a good corporate citizen requires us to be transparent, willing to listen to all points of view and to hold ourselves accountable for our impacts on society.

Confederation of Indian Industry

Sustainability: KEPCO
Contributing to the national economy with stable supply of quality electricity and enhanced global competitiveness Contributing to environment protection and creating environmental values for future generations through environment-oriented management Seeking mutual prosperity with stakeholders and contributing to social development through fulfillment of social responsibilities

We will leap forward as the World-renowned Comprehensive Energy Provider through management where economy, environment, society and human beings are balanced.
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Confederation of Indian Industry

Sustainability Report: Duke Energy

Sustainability is shorthand for our business philosophy; simply put, we believe that responsible actions lead to long-term success. Sustainability is more than good corporate citizenship. Its about pursuing our vision of tomorrow while serving our stakeholders well today. Its also about facing challenges honestly and head-on, without sacrificing profitability.

Duke Energy 2006-2007 Sustainability Report

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Confederation of Indian Industry

Sustainability: Green Mountain Power

Green Mountain Power is committed to sustainability in a variety of ways. Recently, we announced that we have become carbon neutral in our operations. We have a reputation of being a premier employer and providing our employees a great place to work. We believe that our financial position continues to be strong, particularly in light of the recent merger with Gaz Mtro. Perhaps our largest sustainability challenge, however, relates to the power that we generate, purchase, transmit, and distribute to our customers.
Green Mountain Power
Sustainability Report 2006
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Confederation of Indian Industry

Sustainability Report
Information Disclosure on:
Triple

bottom line elements of

Process

Accountability
Stakeholder Engagements

Confederation of Indian Industry

Overview: Changing demands related to information disclosure

The emerging show me world As trust diminishes, the demand for transparency in the form of assurance mechanisms increases

High trust

Trust me

Tell me
Show me
Low trust

Involve me

Low transparency
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Confederation of Indian Industry

High transparency

Sustainability Report - Stakeholder Value

Public Impact

Employees Board Brand Management

Building Internal Capabilities & Readers

Government Consumers Media Local Communities

Engaging External Constituencies

Quality & Production Management EHS Management

Human Resources

Investors NGOs Insurers Trade Associations Suppliers

Managing Todays Business & showing Results

Confederation of Indian Industry

Stakeholders & Information

Suppliers possibilities of supply and delivery, conditions of supply, delivery and payment, solvency Employees security of employment, inclome opportunities, working conditions, career options, image Neighbouring Community at Location noise pollution, emissions, volume of traffic, environmental impact, environmental hazards, jobs

Company
Customers range of services / products, environmental impact / friendliness, social conditions of production, general conditions, quality
Authorities abidance of laws and regulations, quality of management, tax hierarchy
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Shareholders, Creditors, Banks, Insurances assets, returns on capital, investment risks, liquidation value

Competition strategic plans, competitive strategies, benchmarking

Confederation of Indian Industry

Global Reporting Initiative (GRI) Guidelines

Incorporates the active participation of representatives from a variety of disciplines from the world over. Multi-stakeholder in nature Most popular worldwide Most credible, internationally legitimate and acceptable reporting format www.globalreporting.org
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Confederation of Indian Industry

Sustainability Report Content Framework assists organizations to disclose information on:

Strategy

& Analysis: including statement from the CEO

Organizational Profile Report

Parameters Commitments & Engagements

Governance,

Management Approach
Performance
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Indicators: Environmental, Social and economic indicators

Confederation of Indian Industry

 Economic:

Economic performance (value generated and distributed) Market presence (e.g. local hiring, local suppliers) Indirect Economic Impacts
Materials Energy Water Biodiversity Emissions, effluents, and waste Products and services (e.g. their impact, product reclamation) Compliance Transport Employment Labour management relations Occupational health and safety Training and education Diversity and equal opportunity

(Human Rights):
Investment and procurement practices Non-discrimination Freedom of association and collective bargaining Child labor Forced and compulsory labor Security practices Indigenous rights Community Corruption Public Policy Anti-competitive behavior Compliance Customer health and safety Product and service labeling Marketing communications Customer privacy Compliance

Environmental:

(Society):

Social: (Labor practices)

(Product responsibility):

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Confederation of Indian Industry

Why Report on Economic Issues

Relevance:
Impact on the economic conditions of its stakeholders

Impact on economic systems at local, national and global

levels Flow of capital among different stakeholders Management
approach Main economic impacts of the organization throughout

Strategy & Analysis

society.

Results

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Confederation of Indian Industry

Why Report on Environment Issues

Relevance:
Impacts on living and
Strategy & Analysisnatural non-living

systems

Performance related to inputs Related to biodiversity, environmental compliance, Management

approach

environmental expenditure Impact of products and services.

Results

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Confederation of Indian Industry

Why Report on Social Issues

Relevance:

Strategy & Analysis

Impact an organization has on the social system within which it operates.

Management Performance regarding labour practices, human rights, society approach and product responsibility. Results

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Confederation of Indian Industry

G3 Guidelines: Standard Disclosures

The Context Strategy, Profile, Governance Management Approach Results Performance

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Confederation of Indian Industry

Sustainability Reporting - Benefits

Identified by the top management of Indian companies
Focussed attention - structured approach Motivating continual improvement & better data management Helps in becoming market leader Influencing policy makers Improves trust & enhances image Investor confidence Marketing tool - demonstration effect Will assist in stakeholder dialogue Builds ownership and commitment Helps in thinking ahead vision

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Confederation of Indian Industry

Sustainability Reporting - Benefits

Identified by the core team of report preparing companies of India
To operationalise the Vision statement. To improve the existing system of Stakeholder dialogue with

Employees, government, civil society (includes NGOs), industry associations, shareholders, financial institutions

To enhance data management

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Confederation of Indian Industry

Sustainability Reporting is a Process

Reporting is :
Broader

process of defining organisational strategy, implementing action plans, assessing outcomes. Continuous improvement tool for efficiency, being focussed and sustainable. Integral part to implement companys sustainability vision serves as a marker and begins the process of improvement

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Confederation of Indian Industry

Sustainability Reporting Process

Top management commitment and leadership Allocation of resources TIME, PEOPLE

Multidisciplinary team
Consultative approach

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Confederation of Indian Industry