Accounting Reporting
Triple Bottom Line (Sustainability) Reporting
1
Recap
Historical trends in CSR
Current trends in CSR
CSR initiatives
The Australian Minerals Industry and CSR
2
2
Overview
Triple Bottom line reporting
Rationale for TBL
UNEP five stage model
TBL media
GRI
Performance indicators – economic, social and environmental
Attractions of GRI, future projects
PER
Trends in TBL
Why TBL reporting is beneficial?
Relevance of TBL reporting
3
3
Triple Bottom Line Reporting
The reporting of the social, environmental and economic performance of an organization to relevant stakeholders
G3 definition:
“practice of measuring, disclosing, and being accountable to internal and external stakeholders for organizational performance for the goal of sustainable development”
Such reporting is usually with the domain of the environmental/sustainable development as well as communications/public relations staff
A TBL report should provide a balanced and reasonable representation of organizational performance – positive as well as negative
4
4
Rationale for Triple Bottom Line Reporting
Moral and ethical reasons, duty
Social pressure, licence to operate
Peer and industry pressure
Competitive advantage
Corporate performance
Image management, public relations, corporate reporting awards and indices
Financial benefits from investor reactions
Party to setting of voluntary and mandatory standards
Existing regulation
5
5
UNEP five stage reporting model
Green Glossies, short statement in annual report
One-off Standalone report
Annual reporting linked to environmental management systems
TRI style reporting, Corporate and site reports available
Sustainable development reporting with links to environmental, economic and social aspects of corporate performance
6
6
Triple Bottom Line Reporting Media
Annual reports
Social and environmental reports
Media releases
Newsletters, advertisements and brochures
The World Wide Web
Social Media
7
7
Global Reporting Initiative
Global set of voluntary guidelines for triple bottom line reporting
G4 is the latest version of guidelines
Includes reporting standards and guidelines, implementation manual, and sector supplements
Goal is to demonstrate, benchmark and compare performance
A typical report should include vision and strategy, organisation profile, governance structure and management systems, GRI content index and performance indicators
8
8
Performance Indicators
Economic performance
Economic performance
Market presence
Indirect Economic impacts
Procurement Practices
Environmental Performance
Materials
Energy
Water
Biodiversity
Emissions
Effluents and Waste
Products and Services
Compliance
Transport
Overall Performance
Supplier Environmental Assessment
Environmental Grievance Mechanisms
9
9
Indicators…
Social Performance
Labour Practices and Decent Work
Employment
Labour/management relations
Occupational health and safety
Training and Education
Diversity and equal opportunity
Equal remuneration for Women and Men
Supplier Assessment for Labor Practices
Labor Practices Grievance mechanisms
10
10
Indicators…
Human Rights
Investment
Non-discrimination
Freedom of Association and Collective Bargaining
Child Labour
Forced or Compulsory Labour
Security Practices
Indigenous Rights Assessment
Supplier Human Rights Assessment
Human Rights Grievance mechanisms
11
11
Indicators…
Society
Local Communities
Anti-Corruption
Public Policy
Anti-Competitive behaviour
Compliance
Supplier Assessments for Impacts on Society
Grievance Mechanisms for Impacts on Society
Product responsibility
Customer Health and Safety
Product and Service Labelling
Marketing Communications
Customer Privacy
Compliance
12
12
Attractions of the GRI framework
Robust reporting principles
Grounded in international conventions
Common framework for all
Broad international acceptance
Sound governance
Guided by multi-stakeholder input
Systematic improvement process
Core versus Comprehensive reports
13
13
The Global Reporting Initiative – Current priorities
Standardising Sustainability Guidelines
Report Services
Report or explain campaign
Integrated Reporting
14
14
Public environmental reporting in Australia
“the voluntary public presentation of information about an organization’s environmental performance over a specified period, usually a financial year. An organization’s PER may be published as a standalone document, a website or as part of an annual report”
Public environmental reporting framework
Plan
Investigate rationale for PER
Identify key stakeholders
Measure
Identify key environmental aspects and impacts
Develop environmental performance indicators
Set objectives and targets
Measure and evaluate
Report and review
Strengthen effectiveness of communication
Publish, Distribute, Use and Review
Triple Bottom Line reporting in Australia
15
15
Trends in Triple Bottom Line Reporting
Based on global surveys by KPMG and UNEP/SustainAbility
Wide disparities in reporting
TBL reporting is a large company and developed/western country phenomena
Industry effects are directly related to reporting
Uptake of reporting levels off
Proportion of companies that report are relatively low
Compared to environmental issues, coverage of social and economic issues is far more superficial
16
16
Why Triple Bottom Line reporting is beneficial?
Reputation enhancement
Gain stakeholder confidence
Operational and management improvements
Improved management of risks
Ability to benchmark performance
Capacity to recruit and retain excellent staff
Greater control of environmental disclosure
Creation of market opportunities
Satisfying a mandatory or signatory reporting need
17
17
Relevance of Triple Bottom Line reporting
Reporting needs to be matched by action involving management of critical social and environmental issues
Relevance Lost debate of the late 1980s (Kaplan and Johnson, 1987) has implication for reporting on social and environmental issues
18
18
Summary
Triple bottom line reporting is now more prominent than environmental reporting
The Global Reporting Initiative is an attempt to provide a unified framework for reporting on economic, social and environmental issues
Triple Bottom Line Reporting is only an initial step in the progress towards sustainability
19
19
Next
Management Systems for Sustainability
20
20