Sustainability Reporting

What is Sustainability Reporting?

Sustainability Reporting
Sustainability Reporting is a structured, continuous process of collecting,
monitoring & reporting information on the companys economic,
environmental & social performance. The information to be disclosed must
be in alignment with the stakeholders expectations.


Triple Bottom Line

Why do Sustainability Reporting?
Companies are under increasing pressure from key stakeholders to be transparent about their
values, principles & performance as regards sustainable development.

Sustainability Reporting is an effective response to this need for greater accountability and
transparency.

It has now become established as an important element of business communication by the
worlds leading companies, with over 2,500 reports published in 2007 and with over 3,100
reports published in 2008.

Indian Companies are also picking up the pace along with their international peers.
The Market Landscape
Why should one report?
Most structured process of stakeholder engagement

Helps in formulating a comprehensive corporate strategy by
eliminating risks

Attracts Favorable Financing - Better valuation in
partnerships, joint ventures or acquisitions

Ensures continuous improvement - Public Disclosure of
goals & targets puts extra responsibility

Can instill consumer confidence in the brand, give a license
to operate and confer a competitive advantage


How to do Sustainability Reporting?
GRI Guidelines
Most accepted framework
Designed for use by organizations of any size, sector, or location.
Contains general and sector-specific content that has been agreed by a
wide range of stakeholders around the world to be generally applicable
for reporting an organizations sustainability performance.
Global Compact
AA1000 Series
How is it done?
G
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I

G
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I
D
E
L
I
N
E
S

Reporting using GRI Guidelines
What does a report contain?
CEOs statement
Key Risks & Opportunities
Organizational Profile
Primary Products/Services
Scale of the Organization - Turnover, Markets served, No .of employees etc.
Nature of ownership
Report Parameters
Process for defining report content - Materiality
Boundary of the report
Assurance
Corporate Governance
Stakeholder Engagement
Management Approach on each of the bottom-line
Performance Disclosures

Sustainability Reporting Process @ EVI?
EVI Approach to Sustainability Reporting
Identify Stakeholders
Prioritize
Stakeholders
Engage Stakeholders
Stakeholder
Engagement
Management
Approach
Relevant aspect and
parameters to report
Data Collection
GRI G3
Framework Report Writing
Communication
Sustainability
Strategy and road
map
Sustainability
Report
Views on performance
Relevant issues to address and report
Priority issues
Core team formation
Role and responsibility
Capacity building
The Reporting Process
Managemen
t Workshop
Overview
Team
formation
Timelines
Action Plan
Capacity
Building
Workshops
Environment
workshop
Social
workshop
Economic
workshop
Monitoring
&
Verification
Data
Consistency
Check
Data Analysis
Report
Content
Preparation
CEOs
statement
Corporate
Governance
Management
Approach
Report
Writing
Principles for
quality
Report
Designing
Submission of
draft report
Core Team Formation
Overall Project
Coordinator
Environment Project
Coordinator
(En PC)
Social Project
Coordinator
(Sc PC)
Economic Project
Coordinator
(Ec PC
Design Project
Coordinator(D-PC)
Overall Coordinator Responsible for driving the exercise and liaisoning with the
people concerned including the top management
Environment Coordinator Responsible for the environment team, collection of data
and reporting
Social Coordinator Responsible for the social team, collection of data and reporting
Environment Coordinator Responsible for the economic team, collection of data
and reporting
Design Coordinator Responsible for the design team, collection of visuals and
design of the report

Management Workshop
Agenda
Presentation on Sustainability Reporting
Context, Need & Benefits Overview of GRI
(Global Reporting Initiative) G3 guidelines
and the KPIs (Key Performance Indicators)

Overview of Reporting Process for the
organization

Define Roles & Responsibilities and form
teams

Finalize the timelines for different stages
of reporting process

Define the various modes of Stakeholder
Engagement
Deliverables
Roles & Responsibilities Matrix - Key
person responsible for overall project co-
ordination as well as individual co-
ordinators for environment social &
economic . Key responsibilities of the top
management like reviewing & providing
feedback at different stages of the reporting
process.
Timelines for the individual stages
Stakeholder Engagement Process -
Discussion would be initiated on the modes
of stakeholder engagement and the extent
of the engagement level
Action Plan: The action plan would list
down the detailed reporting process with
defined roles, responsibilities & timelines.
Stakeholder Engagement Maturity Model
The ultimate aim of sustainability
reporting is to identify stakeholder
expectations against your current
actions, identify gaps, act on them
and report your performance
Monitor
Stakeholder
Inform
Stakeholders
Work in
contractual
agreement
Gain information
and provide
feedback
Understand Issue and
Involve in decision
making
Partnership: Develop
mutually agreed
solutions
Delegate decision
making on issues to
stakeholders
No Goal
We at EVI believes that the aim of
sustainability reporting cannot be
achieved without Stakeholder
engagement and thus we strive to
map organization on the stakeholder
engagement maturity model and
enable them to move upwards every
year
Stakeholder Mapping
Stakeholders
Representation
Responsibility
and
Dependence
Proximity and
Influence
Stakeholder Mapping
Proximity
Longstanding Relationship
Internal Stakeholders
Closeness to Production site
High
Medium
Low
Influence
Responsibility
Financial
Legal
Operational
None
Dependency
Representation
Yes
No
Yes
No
Prioritizing Stakeholders
Given limited resources it is important that we rank stakeholders for result
oriented and focused engagement outcome
Stakeholder Engagement Mode
Stakeholder
Engagement
Mode for the
Current Year
Desired Goal
of
Engagement
Current Goal
of
Engagement
Stakeholder
Best
Practices
Desired Goal of Engagement: Level on stakeholder engagement maturity model, that an
organization wants to achieve with a particular stakeholder in the current year
Current Goal of Engagement: Level on stakeholder engagement maturity model,
determined based on the current engagement policy and mode with particular stakeholder
Stakeholder: Engagement mode also depends on which stakeholder we wish to engage
Best Practices: Best modes of engagement in the global as well as organizational context
Stakeholder Engagement
EVI helps the organization in the following areas:

Facilitation of Stakeholder Engagement
Questionnaire Formulation
Analysis of Response Expectation & Grievances
Materiality Separate issues relevant to organization and are actionable
Formulation of strategy to align along with the expectation and resolve grievances

Environment Workshop
Agenda
Presentation on environmental aspects as
given in GRI G3 guidelines
Identify environmental aspects relevant
to the Organization based on stakeholder
engagement
Map strategies & goals in place to address
those aspects
Identify KPIs relevant to the identified
aspects
Presentation on each KPI Relevance,
Guidance on Data Collection & Monitoring
Process
Provide templates for data collection
Deciding timelines for data collection for
each KPI and the person responsible for
doing it
Deliverables
Material Aspects to the organization -
These would be identified by EVI based on
the relevant environmental aspects
identified during workshop and training
would be imparted to En-PC on how to
conduct the exercise.
KPIs to report
Timelines & Role & Responsibility Matrix
Strategy & Goals: This would list
strategies in place to address the identified
environmental concerns and goals which
have been undertaken for the subsequent
years



Reporting Aspects - Environment
Environment: Aspects to be reported under this head are:
Materials (Raw material Consumed, Recycled)
Energy (Direct Energy Diesel, Petrol etc, Indirect Energy Electricity, Initiatives taken for
improving energy efficiency)
Water (Water Consumed, Recycled/Reused, Initiatives taken for improving water
efficiency)
Emissions, Effluents & Waste (SOx, NOx emissions, Waste Water Discharge, Solid Waste
Disposal, Initiatives for waste minimization)
Biodiversity
Product & Services
Environmental Compliance

Social Workshop
Agenda
Presentation on social aspects as given in
GRI G3 guidelines
Identify social aspects relevant to the
Organization based on stakeholder
engagement
Map strategies & goals in place to address
those aspects
Identify KPIs relevant to the identified
aspects
Presentation on each KPI Relevance,
Guidance on Data Collection & Monitoring
Process
Provide templates for data collection
Deciding timelines for data collection for
each KPI and the person responsible for
doing it
Deliverables
Material Aspects to the organization -
These would be identified by EVI based on
the relevant social aspects identified during
workshop and training would be imparted
to Sc-PC on how to conduct the exercise.
KPIs to report
Timelines & Role & Responsibility Matrix
Strategy & Goals: This would list
strategies in place to address the identified
social concerns and goals which have been
undertaken for the subsequent years





Reporting Aspects - Social
Social: Aspects are classified into 4 sub-categories:
Labor Practices
Employment (Total Workforce by type, contract, region; Attrition, Employee Benefits)
Labor Management Relations (Collective Bargaining, Employee Union etc.)
Occupational Health & Safety (Occupational Diseases, Absenteeism, Training regarding
serious diseases etc.)
Training & Education (Average hours of training per employee, Skills Management)
Diversity & Equal Opportunity (Composition of governance bodies etc.)
Human Rights
Investment & Procurement Practices (No. of Investment Agreements, suppliers which
have undergone human rights screening)
Non-discrimination
Freedom of Association & Collective Bargaining
Child Labor
Force & Compulsory Labor


Reporting Aspects Social Contd.
Society
Community (Details about programs that assess & manage impact of operations on
communities, CSR Initiatives, Case Studies etc.)
Corruption (Policy related to corruption, Business Units analyzed for corruption, Action )
Public Policy (Participation in public policy development, Contributions to political parties)
Compliance
Product Responsibility
Customer Health & Safety (Health & Safety Aspect of product & services)
Product & Service Labeling (Product/Service Information requirement, Customer
Satisfaction Assessment etc.)
Marketing Communications (Marketing Communications, Advertising etc.)
Customer Privacy (Customer Privacy & Loss of customer data)
Compliance
Economic Workshop
Agenda
Presentation on economic aspects as
given in GRI G3 guidelines
Identify economic aspects relevant to the
Organization based on stakeholder
engagement
Map strategies & goals in place to address
those aspects
Identify KPIs relevant to the identified
aspects
Presentation on each KPI Relevance,
Guidance on Data Collection & Monitoring
Process
Provide templates for data collection
Deciding timelines for data collection for
each KPI and the person responsible for
doing it
Deliverables
Material Aspects to the organization -
These would be identified by EVI based on
the relevant social aspects identified during
workshop and training would be imparted
to Ec-PC on how to conduct the exercise.
KPIs to report
Timelines & Role & Responsibility Matrix
Strategy & Goals: This would list
strategies in place to address the identified
social concerns and goals which have been
undertaken for the subsequent years





Reporting Aspects - Economic
Economic: Aspects to be reported under this head are:
Economic Performance (Direct economic value generated Net Sales, Revenue from
financial investments, Revenue from sale of assets etc; Direct Economic Value Distributed
Operating Costs, Employee Salaries & Benefits, Taxes, Community Investments etc;
Financial Implications of Climate Change)
Market Presence (Policies, Practices of spending on locally-based suppliers; Procedures for
local hiring etc.)
Indirect Economic Aspects (Development & Impact of Infrastructure investments and
services provided primarily for public benefit e.g. road development etc.)

Monitoring and Verification
The overall project co-ordinator i.e. the PC would collate monthly
data from each of the Environmental, Social & Economic Project Co-
ordinators (En-PC, S-PC & Ec-PC).
EVI would verify whether the data collected conforms to
requirements of the GRI G3 guidelines
If not, suggest proper method for data collection and provide
detailed guidance
Analyse data for identifying trends which can assist in decision
making for improving the performance on the relevant KPI
Provide information on best practices prevailing in the industry
EVIs Role: The main task in Stage 3 to be done by EVI would be the verification of data sent by the
organization and its conformity to the GRI Framework. Each of the co-ordinators would be trained
to carry out the exercise of verification and conformity for the next reporting cycle.

Organization's role: Organizations role would be to collect data required for each indicator and
send it within the agreed timelines for verification and conformity.

Report Preparation, Approval and Assurance Support
Report Content Preparation
Top Management Interaction
: CEOs/MDs Statement,
Relevance of Sustainability
for the organization its
strategy for Sustainable
Development and key
Impacts, Risks &
Opportunities
Organizational Profile: Name
of the organization, Primary
brands, products, Locations of
Headquarters & Offices,
Markets served, Nature of
Ownership etc.
Management Approach
towards sustainability
Report Writing
Report Structuring: Collation
and framed according to the
GRI G3 guidelines
Report Design: This involves
finalizing the Pages, Graphics,
Text layout
Report Quality: The report
would be refined based on
the six parameters given in
the GRI G3 guidelines for
defining the report quality.
The six parameters are (1)
Balance (2) Comparability (3)
Accuracy (4) Timeliness (5)
Clarity (6) Reliability
Approval by Top Management
and Assurance Support
Top Management approval
would be sought on the
content & design of the
report. The
suggestions/comments made
by them would be
incorporated in the final
version
EVI will help in selecting the
assurance provider
EVI will also help in providing
guidance to organization in
arranging the required data
as to serve as evidence to the
claims made in the report and
incorporate the changes
suggested.
* EVIs role in all these steps would be more of an advising role where EVI would suggest how to structure the various
segments of the report, how to ensure the best quality etc. EVI would support and not write and design the report on
behalf of the organization unless decided earlier but only support the organization
Report Launch and Sign Off
Report Launch
Communication Strategies: Identify modes of making the report available to
all the stakeholders
Establishing Feedback Collection & Review Process

EVIs Role: EVIs role in this step would be to suggest various modes of
communication and establishing a structure for feedback collection.
Organizations role would be to ensure the report is made available to all the
relevant stakeholders, to collect their feedback and take action.
Sign Off Meeting
Presentation on Key Observations & Findings
Giving suggestions for improvements in the next report
Roadmap discussion on Sustainable Development
Discussion on further engagement options
Feedback on EVIs performance

Sustainability Reporting Case Study
GRI Reporting Case Study
No
Goal
Monitor
and
Inform
Stakehold
ers
Gain
Informatio
n and
Provide
Feedback
Work with
stakeholde
rs ,
understan
d issues,
involve in
decision
making
Delegate
decision
making on
issues
develop
mutually
agreed
solutions
Stakeholder Engagement Maturity Model
Identified
stakeholders
Mapped the
organization on
maturity model
Decided the
actual goal of
engagement
Facilitated
Stakeholder
Engagement
Identified
Issues
Facilitated
reporting
performance
and approach
Process
Phase 1- Internal
reporting for
capacity building
Phase 2
Stakeholder
engagement and
handholding for
external reporting
Leading
Indian
Bank
Handholding for
external reporting
Leading
Pig Iron
Company
Phase 1- Setting if
Sustainability cell ,
strategy and gap
identification
Phase 2
Stakeholder
engagement and
handholding and
writing of report
Leading
Irrigation,
Food
Processing
Company
Key Learning: Best Practices
Project Coordinator should be from top management. Ensure
involvement of senior management at every step.

Boundary determination to be done and agreed mutually before start of
data collection

Maintain track and back-up of every source of data

Roles & Responsibilities to be unambiguously determined and adhered

Challenge each statement which makes a claim (e.g. water positive) and have
sufficient supporting documents


Contact Information
Emergent Ventures India
11
th
Floor, Vatika Professional Point
Gurgaon, Haryana, India 122001
Website: www.emergent-ventures.com