measurement and accountability: why bother? johanne gélinas partner, sustainability & climate...
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Measurement and Accountability: Why Bother?
Johanne GélinasPartner, Sustainability & Climate Change
CSIN 2nd National Conference - Accountability Through Measurement
March 2, 2010
2 Measurement and Accountability: Why Bother? © Samson Bélair/Deloitte & Touche s.e.n.c.r.l. and affiliated entities
Measurement and Accountability: Why Bother?
Measurement
Accountability
Corporate Responsibility
Sustainable Business
3 Measurement and Accountability: Why Bother? © Samson Bélair/Deloitte & Touche s.e.n.c.r.l. and affiliated entities
What is driving companies to act?
Environmental impact
Climate change
Product stewardship
Workforce practices
Responsible sourcing
Impact on local communities
Communication and reporting
Demanding stakeholders
Clients / consumers
Local communities
Shareholders
NGOs
Governments
Employees
Suppliers / producers
Media
Governance
Stakeholders require companies to progress along several key sustainability issues
Key sustainability issuesCompanies
4 Measurement and Accountability: Why Bother? © Samson Bélair/Deloitte & Touche s.e.n.c.r.l. and affiliated entities
Disclosure on sustainability performance is essential to demonstrate accountability
• Requirements for sustainability performance disclosure (e.g. Quebec public sector)
• Accounting standards and securities commissions (e.g. climate change risks)
Regulatory obligations
• Carbon Disclosure Project• Socially Responsible Investment
(Ethical Investment Fund, Fondaction, …)Pressure from inverstors
• NGO, local communities• Clients• Employees, tradeunions
Stakeholders’ expectations
Standards and guidelines
Companies face many pressures regarding disclosure of sustainability performance
5 Measurement and Accountability: Why Bother? © Samson Bélair/Deloitte & Touche s.e.n.c.r.l. and affiliated entities
Key elements for building stakeholder trust
Companies need to be able to demonstrate progress on relevant sustainability issues, thereby meeting stakeholders’ expectations
Key elements:
Quality - Credibility
Transparency - Disclosure
Materiality - Relevance
Measurement(Performance management)
Accountability(Stakeholder
trust)
6 Measurement and Accountability: Why Bother? © Samson Bélair/Deloitte & Touche s.e.n.c.r.l. and affiliated entities
Build credibility through quality of information
The quality of sustainability information is of strategic importance to corporate communications
Factual data
• Vague claims are considered greenwashing
Verifiable data
• Internal controls and internal audit -> internal accountability, continuous improvement
• External assurance -> external accountability, stakeholder confidence
7 Measurement and Accountability: Why Bother? © Samson Bélair/Deloitte & Touche s.e.n.c.r.l. and affiliated entities
Sustainability issues differ from one industry to another
• Materiality matrix: stakeholder concern vs. impact to business
Sustainability information needs to be put in context
Focus on material and relevant sustainability issues
Performance without context Performance with context
Level of water supplyLevel of water use
E.g. Water use:
8 Measurement and Accountability: Why Bother? © Samson Bélair/Deloitte & Touche s.e.n.c.r.l. and affiliated entities
Sustainability reporting is embedded in corporate communications
XBLR – cross-referencing
Stakeholder feedback
Quarterly updates
Social media
GRI - leading reporting framework
Top-level commitment
3rd party assurance
Sustainability governance
Disclosure on ecosystems services
“Layered” reporting
ROI of sustainability projects
Life-cycle thinking
9 Measurement and Accountability: Why Bother? © Samson Bélair/Deloitte & Touche s.e.n.c.r.l. and affiliated entities
And sustainability attributes are part of product marketing
Tesco (UK) Walmart
(Product sustainability index in development)
10 Measurement and Accountability: Why Bother? © Samson Bélair/Deloitte & Touche s.e.n.c.r.l. and affiliated entities
Sustainability reporting and disclosure have to be integrated into a structured strategic approach to sustainability
2. Vision & Strategy
3. Execution1. Diagnosis
4. Reporting & Disclosure
Issues Identification
and Prioritisation
Strategy and Targets Definition
Actions Plans
& KPIs
Tracking and Performance Disclosure
Risks
• Reputation
• Financial
• Social climate
• Regulatory compliance
• Market loss
Opportunities
• Cost reduction
• Innovation
• Brand and image
• Market Positioning
• Talent retention
11 Measurement and Accountability: Why Bother? © Samson Bélair/Deloitte & Touche s.e.n.c.r.l. and affiliated entities
Strategic thinking to sustainability leads to value creation
Key Issues
• Environmental impact
• Climate change
• Responsible sourcing
• Human rights
• Health and safety
• Governance
• Impact on communities
• Reputation
Risk Management = Protecting Value“License to operate”• Protect reputation and brand
• Preserve market share and resources
New Opportunities = Creating Value
“License to grow”• Develop new market opportunities and new business
models
• Innovate on responsible products
• Become an employer of choice
Long Term Vision
2010 2012 2015 2020 2025
Sustainable company = Manage short-term risks + Grasp long-term opportunities
12 Measurement and Accountability: Why Bother? © Samson Bélair/Deloitte & Touche s.e.n.c.r.l. and affiliated entities
Johanne GélinasJohanne Gélinas
PartnerSustainability & Climate ChangeDeloitte & Touche Tel: [email protected]
PartnerSustainability & Climate ChangeDeloitte & Touche Tel: [email protected]
Valerie ChortValerie Chort
PartnerSustainability & Climate ChangeDeloitte & Touche Tel: [email protected]
PartnerSustainability & Climate ChangeDeloitte & Touche Tel: [email protected]
Contacts
