USA:9 first-time G4 reports

And here we are, in the U.S. Following my post on 16 first-time G4 reporters in Belgium, that may have been a surprise to some of you, here is a more modest collection of first-time G4 reporters coming out of the U.S. Here follows a selection of 9 U.S reports - all first time reports and all in accordance with G4 (core or comprehensive). This is out of a total of more than 50 G4 reports published in the U.S. in 2014, according to the GRI Sustainability Disclosure database. 

AMN Healthcare: AMN Healthcare is a leader in healthcare workforce solutions, and the largest healthcare staffing company in the U.S., employing almost 2,000 people. 17 material issues are defined and the company reports against 18 performance indicators. Materiality, for the purposes of this inaugural report, AMN says, is limited to areas directly under operational control. This means, I guess, that AMN is looking at its people and services and how they are managed, as a first stage, rather than the outcomes of the contribution that AMN makes in healthcare quality across the U.S. The report opens with a good overview of the trends in the industry - identifying both the risks and opportunities. Material issues are explained and the company's approach is described. However, there is a little disconnect between what's material and the performance measures that support the management approach - for example - business loyalty is a material issue and relates to customer retention. However, AMN does not offer a metric specifically related to this. Similarly, there is a shortage of relevant context in some areas, for example, AMN claims ongoing improvement in health claims as proof that the company's approach to health and wellness is working. This is really great. Some sense of context - how this level of claims stacks up against the sector or other companies would help us understand whether this is good performance relative to industry practice and norms. Overall, though, this is a credible first-report from AMN that demonstrates positive practice and intention. 

Axalta Coating Systems: Axalta provides paints and coatings to a range of industrial customers. The company's liquid and powder coating brands are sold in more than 130 countries, produced in 35 manufacturing centers on six continents and supported by seven research and development centers. Axalta employs more than 12,000 people. The report is a 74 pager, with slight marketing overtones, and a separate GRI Content Index downloadable from Axalta's sustainability website. Interestingly, the list of Axalta's 11 most material issues appears right at the end of the report, on page 70, although the company maintains that these issues "informed the structure and content" of the report. By and large, this seems to have worked, although there are issues for which Axalta has not yet formulated a position or organized itself to collect data. Axalta reports against 31 performance indicators although the link between performance indicators and material impacts is not entirely clear at all times. Axalta admits what is a frequent dilema for G4 reporting companies: material aspects that do not have "pre-defined GRI indicators". In these cases, Axalta has described its approach. In future, Axalta could develop a company metric to support managing and reporting performance on these issues. Overall, another credible report.  

Cigna: Cigna is a global health service company with products and services provided through a range of subsidiary companies. Cigna's products include healthcare services and insurance. Cigna operates in 30 countries with 80 million customer relationships throughout the world and 35,000 employees worldwide. Cigna's first report is an 88 pager (including 13 pages of GRI Content Index). Cigna has selected 17 Material Aspects from the GRI table of Aspects, and reports against 24 performance indicators. However, in the process describing stakeholder engagement and materiality assessment, the four issues that appear to be most significant to internal and external stakeholders are four sub-areas relating to healthcare. These issues appear as the focus of Cigna's charitable and foundation-supported activities but do not seem to link directly to the core business approach of Cigna. One of these, for example, is health equity. This is well discussed in the Cigna report - good contextual information and a detailed description of how Cigna is adressing this issue through its core business. Health equity, however, is not really counted as a material impact or as a performance indicator. I think this is one of the inherent problems as companies try to fit their reporting into the G4 framework - there are some issues that just don't fit and companies need to find their own way of reflecting these issues effectively. In this case, it seems that Cigna has a great understanding of what's important, good focus and a strategic approach. The G4 framework could be used more effectively to help reflect this. 

Indianapolis Airport Authority (IAA): This is a solid first report from the Indianapolis Airport Authority which is a municipal corporation established in 1962. The IAA operates in central Indiana with main offices in Indianapolis. Including the Indianapolis International Airport, the IAA currently owns, develops, and operates six airports in the Indianapolis area, employing approximately 450 people. For the second consecutive year and third time overall, the Indianapolis International Airport (IND) was recognized as the best airport in North America by Airports Council International. IND was also named best airport in North America for 2012 and 2010 and has been ranked in the top three airports in North America in every year since. Hopefully, the focus on sustainability has supported IND's positioning here :). The report is a simple word-format compilation of 70 pages. Material issues are not specifically listed, but the GRI Content Index references 24 material Aspects are 41 performance indicators. The material Aspects are picked from the GRI predefined table of Aspects and the report narrative does not prioritize these issues. The content for the report was selected using an internal survey of employees. For the future, IAA offers to include broader stakeholder input based on responses to a SurveyMonkey survey which is available online. However, the survey is elementary, listing the full G4 Aspect list, with no real background or explanation. I doubt responses to this survey will be of any real value to IAA. On the other hand, I do feel that the IAA deserves recognition for making efforts toward greater transparency and engagement. This is a genuine and credible, if a little clumsy, attempt at reporting that does not really exploit the opportunity of G4. However, I am sure that, with the right leadership and processes, IAA will mature into a better reporter, based on deeper embedding of sustainability practices and realization of the value this brings. 

Murphy Warehouse Company: Murphy is a full-service supply chain logistics business based in Minnesota and employing around 180 people. It's a family-owned business that was founded in 1904 with "a horse and a wagon" and is currently managed by President and CEO, Richard T. Murphy Jr who is a fourth generation Murphy family member. The company, and its report, oozes genuine family values and spirit and the accomplishments of this small-sized enterprise in the area of sustainability are impressive, in a way which appears to truly reflect a business approach and not just a nice-to-have. In fact, Murphy is one of the few first-time G4 reports that I have come across so far that actually defines a focused set of materially important issues and a set of  targets.

On the other hand, Murphy's use of the G4 framework is rather ingenuous and, although the report itself is a great 20 page review of performance and activities, largely focusing on the identified material impacts of this business, there are inconsistencies in the use of G4. For example, the separate 12-page GRI Content Index lists every single core disclosure, DMA and performance indicator, but in several cases, inadequate responses are provided. Murphy maintains that the report was externally assured but no assurance statement is available and it is not clear exactly what was assured and how. The GRI Content Index omits the obligatory "assurance" column so this is rather obtuse. The link between material impacts and G4 disclosures is not always quite clear, for example, "Materials and Resources" is noted as a material impact. A Disclosure on Management Approach statement appears in the report. But responses to the two possible performance indicators relating to this material impact - G4-EN1 and EN2- are "Murphy does not report on this indicator. Murphy is a service company that does not manufacture a product."  Go figure. Overall, however, I like the Murphy report and I believe the company's sustainable approach. The use of G4 has not really added value, possibly because the framework was not fully understood. An SME reporter such as this could deliver a fine report without complicating life by attempting to be "in accordance" and no one would object. On the other hand, using the G4 framework does imply familiarity with it and adherence in a more consistent way. 

Newfield Exploration Company: Newfield Exploration Company (NYSE:NFX) is an independent energy company headquartered in Texas. Newfield is engaged in the exploration, development and production of crude oil, natural gas and natural gas liquids. The company is 25 years old and employs around 1,500 people. Newfield's inaugural report is both a positive example of the use of G4 and an example of the limitations of the framework. This is one of the first G4 first-time reports I have seen that actually presents a list of material impacts that was not created by box-ticking the G4 predefined list. It includes material Aspects such as: Community Safety, Well Integrity, Induced Seismicity, Hydraulic Fracturing and Community Relations, that are not G4 standardized Aspects.

Newfield notes: "Our materiality assessment identified significant topics that do not fully align with a GRI Aspect. ... We fully report on these topics; however, GRI indicators are unavailable and omissions are not applicable." This is a good approach by Newfield and shows serious consideration of the G4 framework. On the other hand, however, the company has not provided performance indicators for these material Aspects, as even if they are not predefined G4 Aspects, stating them as material requires a performance indicator that tracks what the company is doing to manage the issue.

In other respects, this is a methodically written and clear report that applied the G4 framework well. 18 material impacts are defined, and Newfield reports against 22 performance indicators (some partially, includes indicators from the Oil and Gas Sector Disclosures), as well as additional indicators that confirm to the Oil and Gas Industry Guidance on Voluntary Sustainability Reporting developed by IPIECA (the global oil and gas industry association for environmental and social issues), API (American Petroleum Institute)  and IOGP (International Association of Oil & Gas Producers, formerly known as OGP). Newfield also maintains an external advisory group made up of 7 expert stakeholders. This advisory group wrote a commentary for the report, including recommendations, something I find to be good practice. Newfield's report is a good example of the use of G4 for a first-timer, and appears to be in line with the spirit of G4 and not just the letter.

Simple Green (Sunshine Makers, Inc.): Simple Green is the brand of Sunshine Makers, a privately-owned family company founded over 39 ago by the father of Bruce FaBrizio who runs the company today. The company developed a biodegradable, not-toxic, non-flammable, non-abrasive cleaning formula and now sells environmentally friendly cleaning products in 41 countries, manufactured in 11 facilities worldwide. Sunshine Makers employs 59 people directly and works with a network of partners for distribution. Sunshine Makers also founded EGBAR (“Everything’s Gonna Be All Right”), a non-profit foundation for environmental education and community improvement projects.

Simple Green's Value Chain

Simple Green's report is impressive. It's nicely designed, well-structured and reflects a strong sense of sustainability culture and practice, not specifically created in order to write a report, but something that has flown out of the spirit of the founding family and extends throughout the entire value chain. It does not shy away from admitting areas of activity that the company has not yet managed to address, and transparently reports outcomes of a more structured stakeholder engagement process conducted for the first time in 2013.

Simple Green identifies 14 material topics and reports against 34 performance indicators. The company makes it clear how it selected the material content for this inaugural report in a way which I find to be transparent and credible: "The content of this report was defined by multiple elements. They included (1) availability of data for the reporting period, (2) our current understanding of our value chain, (3) discussion with our stakeholders, (4) surveys of our stakeholders, (5) an aspect-impact analysis and (6) a materiality assessment."

The report contains targets for environmental impacts and is assured for all general and some performance indicators. All in all, a very professional, interesting and mature first report. As you can probably see from the number of photos I clipped from the report, I liked this one best of all the U.S. first timers. 

Whitewave Foods: The WhiteWave Foods Company "is working to change the way the world eats for the better." Prior to 2013, WhiteWave Foods was a wholly-owned subsidiary of Dean Foods but from July 2013 the company became completely independent.  White Wave brands in the U.S. includes Silk® plant-based foods and beverages, International Delight® and LAND O’LAKES® coffee creamers and beverages, and Horizon Organic® premium dairy products. In Europe, Alpro® and Provamel®, offer plant-based nutrition food and beverage products. The company employs almost 2,000 people. 

This 58 page report defines 17 material topics and reports against 24 performance indicators from G4 and from the Food and Beverage Sector Disclosures. One of the nice things about this report is the clear connection between material topics and the performance indicators that support them. It's absolutely clear that what's material is measured. This is the spirit of G4 and hardly any of the first-time G4 reporters I have seen have done this explicitly. It makes like much easier and clearer for report users. 

Aside from this, the report provides a good overview of how WhiteWave is operating responsibly and advancing organic and plant-based food products to support healthy lifestyles. What I am missing, though, in this report, is a sense of whether this is actually changing markets and consumer perceptions and behaviors. Despite a nice value chain graphic.....

... this report stays largely at the front end ... when it gets to consumer use and impacts on consumers, I find the WhiteWave report less informative. WhiteWave writes: "Today, nutritious dairy alternatives made from soy, almonds, coconut, rice and hazelnuts are a huge and growing category, embraced by millions for their health and sustainability benefits." I'd have welcomed a little more context here .. How rapidly is the market growing? What are the challenges of providing such alternatives to mainstream consumers? Is this a niche market and if so, why? What are the scientific health benefits of WhiteWave's alternative food products and what impact could this have on health and wellbeing in society? etc. This is the real sustainability story of WhiteWave and I am wondering why changing consumer perceptions and practices in relation to healthy eating and the value of alternative food products is not material for WhiteWave. As it stands, however, the company tells a great story in a well-put-together first-time G4 report. 

UniGroup, Inc.: UniGroup is a $1.6 billion transportation company headquartered in Missouri. UniGroup and its subsidiaries provide services under a range of brands including United Van Lines, Mayflower Transit, United Containers, Mayflower Containers, UniGroup Logistics, UniGroup Relocation and more. The group has 903 employees in the U.S.  

UniGroup's report is a simple no-frills word-format 35 pager with a really REALLY detailed materiality matrix that was developed internally by company staff. It contains more issues that I was able to count without getting lost, with 19 issues in the top-right (most important to everyone) quadrant.  I always wonder how companies manage to plot issues on such a matrix with such detail and whether the relative positioning of issues in such a granular way is actually helpful to anyone.  

In any case, the top three issues stand out as being emissions, customer privacy and customer health and safety. In the case of customer health and privacy, the report barely refers to this - the disclosure is all about driver safety. In the case of customer privacy, there is a short paragraph but no reponse to the performance indicator as required. In the case of emissions, the DMA is "UniGroup recognizes that the environmental impact of the emissions from those vehicles operating under our authority is material" but no data is reported against Scope 1 or Scope 2 emissions, though Scope 3 emissions are recorded, though I suspect that might actually be Scope 1 emissions (fuel). 

Here we have an example of a really good effort on materiality mapping, but a disconnect in the way the report is constructed and a gap in adherence to the G4 framework. Rather than jump to G4 core, this company might have been better starting with a simpler report that reflects what it is doing, rather than trying to accommodate a more advanced approach that is driven by materiality developed through due process. The report is a good first dive into transparency and it is clear that much work and thought has gone into its production, and indeed, it projects a positive disposition towards sustainability and certain achievements in performance. I think, however, that UniGroup might have benefited from a little guidance in the preparation of this report. 

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So there we have it.... 9 first-time G4 reports, all rather different and all rather unique. All challenges and all achievements. My overall impression, though, is that the use of G4 is still evolving. Rather than helping guide the way companies report, there is still a lot of "report first and then force-fit G4". I am optimistic that this will change.... second round reports, I am sure, will be a different ball-game.

In the meantime, though, we continue on our journey. Next up....

elaine cohen, CSR consultant, Sustainability Reporter, HR Professional, Ice Cream Addict. Author of Understanding G4: the Concise guide to Next Generation Sustainability Reporting  AND  Sustainability Reporting for SMEs: Competitive Advantage Through Transparency AND CSR for HR: A necessary partnership for advancing responsible business practices . Contact me via Twitter (@elainecohen)  or via my business website www.b-yond.biz   (Beyond Business Ltd, an inspired CSR consulting and Sustainability Reporting firm).  Check out our G4 Report Expert Analysis Service - for published G4 reports or pre-publication - write to Elaine at info@b-yond.biz to help make your G4 reporting  even better.

Belgium: 16 first-time G4 reports

How easy is it to start your reporting journey with a G4 report? If you have never reported ever ever in the past, going straight to G4 could be a good approach, enabling you to cut to the chase and avoid the trial and error of ten to twenty years of reporting experience of thousands of companies. Going straight to G4 could enable first-time reporters to deliver focused reports, unburdened by prior reporting history. On the other hand, maybe G4 is more challenging than just another join-the-dots exercise and first-timers might not really get the value out of what it all really means. I decided to try and find out.

The GRI Sustainability Disclosure Database at around mid-December shows 92 first-time reporters who used G4 for their first report - 11 published in 2013 and 81 published in 2014. These first-time reporters came from 30 countries with Belgium in winning position way out in front with 16 first-time reports in accordance with G4. The U.S. delivered 8 first-time G4 reports, Columbia and Germany produced 6, and Spain, 5. All other countries produced 4 or fewer first-time reporters using G4.

In terms of sectors, there is a broad range and surprisingly, the non-profit sector delivered the highest number of first-time G4 reports with 8, but the construction sector delivered 7 reports while the construction materials sector delivered 5, so that's 12 reports with something to do with construction. The energy and real estate sectors each delivered 6 reports, and all the rest, 4 or fewer.

Naturally, I wondered how they all are doing it. Join me for the tour.

I thought we would start with Belgium, seeing that G4 for first-time reports appears at first glance to have become popular to the level of cult. 16 out of the 23 G4 reports published in Belgium in 2014 were first-timers. But only because someone had a big vision with cash support behind it. The visionary, as far as I can tell, was the European Social Fund (ESF) with an aim to drive the creation of sector "CSR passports" that would define the specific CSR challenges and issues facing companies in Belgium in each sector, and select 15 - 20 performance indicators especially relevant to each sector. Grants were awarded to consulting firms to work with sector organizations and individual companies to develop this set of issues and refine the CSR Passportד. The work involved companies in the relevant sectors publishing first Sustainability Reports using G4 guidelines. The horticulture and construction sectors came first, and several others are planned to follow. There are also some non-profit organizations that were funded as well. Sort of a Belgian SASB -style initiative, and a really great one at that. It's a very practical approach - develop a deeper understanding of what's important while actually delivering report outputs. Maybe that's a better way than just defining standards - maybe the standards should be defined through the reporting process and not separate from it. But that's another discussion. What I have stumbled on, quite by chance, in Belgium, is a really fabulous initiative that has brought many small companies onto the sustainability and reporting map. Of the 16 first time G4 reporters in Belgium, 15 appear to have been funded through European Social Fund (ESF). I have split them in to three sections for the purpose of this review.

First off, we have 7 out of the 16 first-timer Belgian reports that are simple, no-frills self-declared G4 core reports. You can find them on the GRI Sustainability Disclosure Database. All reports were supported by a Belgian consultancy called Kreski in a fully-funded project of EDUplus, the Belgian agency of European Social Fund (ESF) within the context of the CSR Passport project. All reports are prepared in word format, and follow the G4 guidelines in the most basic way, providing responses to the disclosure requirements and providing the data as required. Material Aspects, for example, are not separately listed - the way to know what's material is to check what's reported in the GRI Content Index. While all these reports are rather elementary, and possibly-don't-or-just-about meet the requirements for G4 reports, the idea is great and it's inspiring to see the willingness of these small companies to participate in this project. Some reports are more detailed than others, but all follow a simple flow and deliver a minimal but credible and admirable level of transparency for a group of mainly small companies, most of which are still owned by their founders or families of the founders. Of course, as it was fully-funded, it didn't cost them money... but it did require time, effort, thought and a willingness to disclose. I hope this process was energizing for the companies involved and that reporting won't be just a flash in the pan. Now the basis is created, perhaps the second report may be easier to develop.

The 7 reports in this bunch are from companies in the agriculture, textiles and construction sectors:

Alsico Group: Alsico is a third-generation run workwear clothing company founded in 1934. Currently it employees around 4,000 people and has a turnover of around Euro 170 million. This is a 37 page report covering 14 performance indicators.

Berry Alloc: Berry Alloc is a floor and wall covering company making laminates, parquets, vinyl planks and wall panels. The company is part of the Beaulieu International Group and has around 134 employees with plants in 3 countries. This is a 46 page report covering 18 performance indicators.

Fruitbedrijf Cocquyt: This is a fourth-generation run family-owned fruit producng firm founded in the 1920s, specializing in apples, pears and cherries. Thee are 10 permanent employees, supplemented by up to 70 seasonal workers. This is a 6 page report covering 17 performance indicators.

Decospan: Decospan  a wood veneer processing company with 122 employees, family owned, founded in 1978. The company is headquartered in Belgium and has subsidiaries in 8 countries in Europe. This is a 51 page report covering 23 performance indicators and a little more substantial in terms of scope and narrative that the others in this bunch.

Elanco:  Elanco is a family firm of around 70 employees founded in 1948. The company makes work clothing, specializing in uniform shirts and blouses. This is a 6 page report covering 16 performance indicators.

TomatoMasters: This is a tomato grower, the third largest in Flanders, privately owned, founded in 2012 based on a tradition of tomato growing since 1981.  Tomato Masters has 30 employees, supplemented by seasonal workers. This is a 23 page report covering 21 performance indicators.

Van Heurck NV: A private company, manufacturer of protective workwear, founded in 1920, witha 2013 turnover of Ruro 4 million, and 307 employees (of which 91% are women). This is a 14 page report covering 25 performance indicators.

While these reports are all commendable, and possibly a good way to jump-start a reporting process, the proof of their value will be in the second reports of these companies, and potentially a visible shift in approach and integration of sustainability themes into these businesses. At this point, it looks like we have reports, but not transformation. However, so far, an impressive initiative.

Next, in addition to the two construction sector reports already mentioned above, we have 5 reports from the construction sector that bring us to a total of 12 of the 16 first-time G4 reports from Belgium. These reports are generally offer more depth and evidence of a deeper connection to sustainability practice. These reports were supported by the Belgian Federation of the Concrete Industry as a key sector influencer and player, and all reports describe stakeholder consultation with other association players in the concrete industry that has led to a definition of material issues for each.  While each report is different, they all tend to follow the G4 guidelines in an orderly way, focusing primarily on direct economic, social and environmental impacts. This is good basic reporting and it is inspiring to see such a range of fairly small companies get engaged with sustainability reporting, each in its own way within a specific sector and project context. These five construction sector CSR Passport participants are:

Dak Plus: This is a family run firm with six employees, engaged in providing roofing solutions.  This is a 62 page report, but the reason it is so long is the inclusion of around 30 pages of detailed finances including budget lines for three years. Total - radical - transparency, but maybe just a little too total. This report was was partially assured (three indicators). 12 performance indicators support the stated material issues which are defined in a materiality matrix after discussion with external stakeholders.

This looks like a nice report - my Dutch is not so great so I didn't make the effort to read it all - but it looks as though it would be quite interesting to read as it seems that this company gets what sustainability is all about. It's an impressive report for such a small outfit. It's also pleasantly designed. The plan is to report every 2 years. Let's hope Dak Plus manages to achieve this.

Kerkstoel Group: This is a family-owned concern in the construction industry which brings together a number of companies under one holding, with a total of 131 employees. The report is 36 pages and states 15 material issues and reports against 25 performance indicators.

O Beton: O Beton is a privately owned company founded in 2012 and run by its two partners. O Beton employs 16 people. This is a short G4 report of 29 well-spaced pages, defining 13 material Aspects and reporting against 19 performance indicators.

Stradus Infra: This is a manufacturer of precast concrete and customized products for public places. The company employs 271 people and is part of the international diversified building materials group, CRH.  A sustainability approach seems to be reasonably well-embedded at Stradus Infra. For example, by the end of 2014 the company plans to manufacture all its products using self-generated renewable wind and solar energy. This is a solid report of 55 pages, defining 14 material Aspects and reporting against 26 performance indicators.

By the way, I love the title of this report - even if my Dutch is not that great, it has a certain ring to it.

Wycor nv: Wycor is a maker of joinery and building finishing materials for renovation, and internal and exterior finishing. The company is a limited company owned by private investors, and employs 220 people. This is a word-format report of 64 pages, defining 16 material Aspects (of which 6 are most material) and reporting against 16 performance indicators of which two are from the Construction Sector Supplement. Three performance indicator disclosures were externally assured. A materiality matrix is presented:

I didn't take the time here to see if I could guess from these reports what might be the content of the Belgian Construction Sector CSR Passport, but with such a great collection of disclosures and dialogue within the sector, I am sure this will make for a great addition to the body of sustainability knowledge and practice.

Three more ESF-supported first-time G4 reporters from Belgium in 2014 are from the non-profit sector. These are:

Amival: Amival (Labor for the disabled) was founded in 1964 as a non-profit organization with an aim to help create meaningful and rewarding employment for people with disabilities. The organization maintains several workshops where employees with disabilities can work and deliver a useful output for society while gaining skills and self-respect. The work centers around packaging, assembly and dis-assembly of electronic products, preparing promotional items and much more. The company - a "protected workplace" - has 70 employees that support the provision of work for 400 employees with disabilities. This is an 82 page report, identifying 14 material Aspects and reporting against 16 G4 performance indicators and one other called "extra" as a self-defined performance metric. A fabulous organization and a nicely laid out report.

Bewel: Bewel is another non-profit organization that supports the creation of job opportunities for people with disabilities. The work here includes silkscreen printing, textile conditioning, packaging work, cleanroom work for medical supplies and gardening and landscape maintenance work. Bewel has 10 centers in the Limburg area of Belgium, with an employee headcount of more than 1,900, making Bewel one of the largest employees in the Limburg area. This is a 51 page report, identifying 20 material Aspects and reporting against 29 G4 performance indicators and two others called "extra" as self-defined performance metrics. This looks like a well written report with some super photos of Bewel employees.

DeWinning: De Winning is the umbrella organization for 4 non-profit organizations that share a mission to support the professional integration of individuals who encounter difficulties in entering the labor market. The group provides employment projects including vocational training, social enterprise experience and career guidance and support. Different practical activities and training programs are held at each of the four centers in this association. The report covers all four operations and is 55 pages long, identifying 16 material Aspects and reporting against 23 G4 performance indicators and two others called "extra" as self-defined performance metrics.

Finally, number 16 in our first-time G4 reporters from Belgium is from an academic institution.

Ghent University: This is a first-time G4 report of 74 pages and it seems to be well done. It starts off with an assertion that I am not sure I entirely agree with but that's probably a good subject for debate.

No doubt that educational institutions have an important role to play and its good to see UGent taking a lead role. With 41,000 students in 2013, and around 9,000 employees, this institution has a broad reach. UGent reports against 48 performance indicators. The list of material issues and the materiality process is described in an external document which I did not attempt to read (language challenges again), but there does seem to have been evidence of process in determining what to report.

Whew! After all that, my knowledge of the Dutch language has certainly improved, and I have also had lots of fun checking out how so many Belgian companies can be energized into taking part in what I can only assume was a very rewarding process. Well done to Belgium and its first-time G4 reporting leadership.

Now we are off to another country... guess where  ....

 Check it out in an upcoming post :)

elaine cohen, CSR consultant, Sustainability Reporter, HR Professional, Ice Cream Addict. Author of Understanding G4: the Concise guide to Next Generation Sustainability Reporting  AND  Sustainability Reporting for SMEs: Competitive Advantage Through Transparency AND CSR for HR: A necessary partnership for advancing responsible business practices . Contact me via Twitter (@elainecohen)  or via my business website www.b-yond.biz   (Beyond Business Ltd, an inspired CSR consulting and Sustainability Reporting firm).  Check out our G4 Report Expert Analysis Service - for published G4 reports or pre-publication - write to Elaine at info@b-yond.biz to help make your G4 reporting  even better.

Stakeholder engagement is here to stay

Stakeholder 1: I love being a stakeholder. It's so engaging.
Stakeholder 2: Yes, I agree. I love to engage.
Stakeholder 1: So, who are you engaging with these days then?
Stakeholder 2: Well, anyone who asks, really. I'm not that fussy.
Stakeholder 1: Yes, me too. I am a pro-engagement stakeholder.
Stakeholder 3: Hi guys. How's the stakeholder engagement thing going these days? I am making a killing.
Stakeholder 1: What do you mean?
Stakeholder 3: Well, I am getting invited to offer my expert opinion for a range of companies and they pay me loads of money just to tell them what I think. That's what they call engagement these days. It doesn't matter if  I use their products or services. They just want me to reply to their questions.
Stakeholder 2: But how do you give an opinion if you don't use their products?
Stakeholder 3: That's easy. I just tell them what they want to hear.
Stakeholder 1:  How do you know that?
Stakeholder 3: It's what everyone says, you know, climate change is important, treating employees well is important, ethics and integrity is important, human rights are super-important. It's not rocket science, you know. I say the same things to every company.
Stakeholder 2: But why do they ask you? I have been around far longer than you and hardly anyone asks me.
Stakeholder 3: Well, maybe you told them the truth.
Stakeholder 1:  You also have to remember that all stakeholders were not created equal. Stakeholder 3 is a real thought-leader. He has written a book. He speaks at conferences. People think he knows about companies even if he doesn't. They think it's good to have his name in the Sustainability Report.
Stakeholder 3: (blushing) Yes, not all stakeholders are equal. I admit that I enjoy all the fuss and attention. My kids stopped listening to me a long time ago. Now at least, someone is asking what I think.
Stakeholder 2: Well, I don't agree with this. I think companies shouldn't pick and choose their stakeholders. They should engage with ALL stakeholders and not discriminate.
Stakeholder 1:  And how exactly do you propose that a company does that? Some companies have millions of stakeholders.
Stakeholder 2: SurveyMonkey.
Stakeholder 3: Oh dear. If everyone starts using SurveyMonkey, I'll need to go back to teaching at the university in order to make a living.
Stakeholder 1: Oh, I am sure it's not that bad. There will always companies be that prefer to have big names in lights.
Stakeholder 3:  (blushing again) Maybe you are right. I love the lights.
Stakeholder 2:  I am thinking of sectorizing myself. You know, adding Sector Expect Stakeholder to my resume. So that companies that want a sector expert will know to come to me.
Stakeholder 1: Which sector?
Stakeholder 2: All sectors. It doesn't really matter.
Stakeholder 3: That's a great plan.
Stakeholder 1: But what if there are companies that really want to know the truth? You know, really want an honest informed opinion about their material issues to inform their sustainability strategy?
Stakeholder 3: Hahahahahahhahaha now you really made me laugh.
Stakeholder 2: Hahahahahahahahaha, me too. Not in our lifetime, buddy.
Stakeholder 1: OK, OK, I was just kidding. Stakeholder engagement is here to stay. Just like we love it.

How real is stakeholder engagement? Who is actually a stakeholder? How do companies engage with stakeholders? Whats on the cards for stakeholder engagement? Is it here to stay? And if so, what does it look like?

More on this in what promises to be a kick-ass discussion live online, hosted by 2degrees on Tuesday December 9th (next week) at 15:00 GMT. Tune in to hear and engage.. yes, engage.... with Rowland Hill (Marks and Spencer Sustainability Reporting Manager), Rachel Depree, (Sky, Senior Engagement Manager), Peter Collins (RSA Insurance Group, Group Head of Corporate Responsibility) and Oliver Hurrey of 2degrees, and myself. Check it out here and register. No powerpoints. No scripts. No pressure. Just a genuine discussion and sharing of insights and opinions on what stakeholder engagement has become, what it should be and where it's going. Approximately. It should be fun. Especially if we all disagree :-)

elaine cohen, CSR consultant, Sustainability Reporter, HR Professional, Ice Cream Addict. Author of Understanding G4: the Concise guide to Next Generation Sustainability Reporting  AND  Sustainability Reporting for SMEs: Competitive Advantage Through Transparency AND CSR for HR: A necessary partnership for advancing responsible business practices . Contact me via Twitter (@elainecohen)  or via my business website www.b-yond.biz   (Beyond Business Ltd, an inspired CSR consulting and Sustainability Reporting firm).  Check out our G4 Report Expert Analysis Service - for published G4 reports or pre-publication - write to Elaine at info@b-yond.biz to help make your G4 reporting  even better. 

When your hobby is your full-time job

Fortunately for Dr Paul Toyne, his hobby is his full-time job. He joined Balfour Beatty's UK Construction executive leadership team as Sustainability Director in October 2013 as the Sustainability Director at Balfour Beatty Construction Services. More recently in November 2014, he was appointed to Group Head of Sustainability for Balfour Beatty plc.

Paul has a diverse background having worked as an environmental scientist, conservationist and ecologist. Outside of his role at Balfour Beatty, Paul is a London Sustainable Development Commissioner for the Mayor of London, chairing its Quality of Life work. He is also a Policy Commissioner for Birmingham University's Urban Futures Commission.

Balfour Beatty is an international infrastructure group that delivers services essential to the development, creation and care of infrastructure assets from finance and development, through project management to construction and maintenance in infrastructure aspects such as transportation, power and energy and water. Balfour Beatty employs 40,000 people worldwide.

Balfour Beatty’s UK and Ireland construction business describes itself as a leading integrator of complex, sophisticated and innovative projects that improve the UK’s and Ireland’s national infrastructure and an experienced provider of local and regional projects that help build lasting communities. Balfour Beatty offers capabilities in construction, civil engineering and mechanical and electrical engineering services. Balfour Beatty’s UK and Ireland construction business employs 9,000 people.

Balfour Beatty has a Sustainability Blueprint that defines the company's approach to sustainable development in relation to its wider company strategies and explains in detail the different areas of focus, measures and metrics. The model has three pillars, 6 business goals and 23 measures.

The company's online Sustainability Dashboard reports progress against the Blueprint.

Back to Paul. In the run-up to the fourth annual Smarter Sustainability Reporting Conference, that will take place in London on 24th February 2015, which I chair, I chatted with Paul Toyne.

ME: What's so great about Balfour Beatty?
PAUL: I love working at Balfour Beatty. There are many opportunities and we have seen sustainable development become embedded in the evolution of the businesses. We can look at our internal operations and drive performance improvements, especially in the area of improving the working environment for our staff and also the natural environment though reducing resource consumption etc. But what is most fascinating about Balfour Beatty is the extent to which the goods and services we provide support future sustainability outcomes in the countries and markets where we operate. This is a fascinating place to be as the decisions we make now will affect future sustainability outcomes for us and for future generations – as assets we build last 40 to 70 years or more.

ME: Say more about the role of infrastructure in post 2015 world
PAUL: We must organize and adjust to a world with nine billion people, considering their quality of life, recognizing resource constraints and changing climate conditions. Infrastructure companies have a really important role to play. When I look at what's material in terms of the impacts of a company such as Balfour Beatty, it has to be the delivery of goods and services and design components to deliver outcomes for today and for the future. It is a big challenge for our customers – both the clients that commission our services and their understanding of the complexities of sustainable development and also in terms of the expectations of end-users, the people who live and work in the cities and towns where our infrastructure services are provided. Whether it's the provision of affordable commercial property or housing market or networks of power that we supply to citizens, transportation in electric islands or safer travel, reduced congestion and delay etc, we are working together to drive out the negative consequences of our current lifestyles and help build improved quality of life for the future.

ME: How is Balfour Beatty gearing up for this? 

PAUL: A refreshing aspect to what Balfour Beatty had put in place before I joined was the sustainability framework strategy: The Sustainability Blueprint, placing sustainable development at the heart of the business. When I saw the blueprint, it seemed to me to be a pretty comprehensive approach. However, the proof of the pudding is in the eating, as they say. It might be a great strategy, but if doesn't have traction within the business or deliver tangible outcomes, then it makes no sense. I have always been of the view that driving outcomes has to be done through collaboration – sharing success with many people, including working within the extended supply chain. Solving key issues around sustainable development needs collaboration.

ME: How have you been supporting this? 

PAUL: I observed that, despite the great framework and strategy, embedding and integrating parts of the strategy hadn't worked with all parts of the company. Through the tough challenges of different, sometimes recessionary, economic cycles, business priorities can sometimes shift. However, even in these times, some of the main tenets of sustainable development, such as resource efficiency, are key to what a business should do to stay ahead. What I found in Balfour Beatty are some fantastic examples of integrating sustainability by default, but other parts of the business being unable to make the transformation. In our last staff survey, 90 percent of the employees surveyed came back and said we believe we work for a company that is responsible. Equal numbers said we are aware of the vision and what we are trying to achieve in sustainable development. This is a testament to the leadership and the deep-seated commitment and awareness in the company. My focus has been supporting different parts of the company translate this commitment and awareness into deliverable outcomes, where this was not happening consistently.

ME: And what about smarter sustainability reporting? 

PAUL: We have been starting to integrate our sustainable development reporting in to our annual accounts since 2013, although we have not yet quite reached the optimal target state. Integrated reporting is more than just inserting a section in the annual report. It should really articulate the way we have demonstrated our thought processes and considered the social and environmental impacts of our core business activities. It should show how this will affect our ability to be successful in the future. 75 percent of the renewable energy that Scotland now provides has been connected through the engineering capabilities of Balfour Beatty. This is a significant impact for sustainable development. Our integrated approach should capture the value of this for our business and also for society. We have done some initial socio-economic analysis of our operations as a start. This is internal, so far, to help our own understanding. Ultimately, we want to be able to answer questions like: What do you get when you buy Balfour Beatty? What is the real value add? Where is the evidence? My role is to drive this evidence-based approach while improving the positives and reducing the negatives. I think it's going to stay fascinating at Balfour Beatty.

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Thanks to Paul Toyne for these insights. He will be speaking at the Smarter Sustainability Reporting Conference (24 Feb 2015) in the subject of How to decide what is material for your business? I think you need to be there. Click here for details and registration. Email me for a discount code!

elaine cohen, CSR consultant, Sustainability Reporter, HR Professional, Ice Cream Addict. Author of Understanding G4: the Concise guide to Next Generation Sustainability Reporting  AND  Sustainability Reporting for SMEs: Competitive Advantage Through Transparency AND CSR for HR: A necessary partnership for advancing responsible business practices . Contact me via Twitter (@elainecohen)  or via my business website www.b-yond.biz   (Beyond Business Ltd, an inspired CSR consulting and Sustainability Reporting firm).  Check out our G4 Report Expert Analysis Service - for published G4 reports or pre-publication - write to Elaine at info@b-yond.biz to help make your G4 reporting  even better. 

4 reporting tips from Dr. Sustainability

Dr. Sustainability has made a short (3 minute) video all about sustainability reporting.

Dr. Sustainability, as you may know, is a regular guest expert on the CSR Reporting Blog. This time, she agreed to share some reporting tips and help a reporting geek (me) and Beyond Business (my company) spread our message about creating great Sustainability Reports. This is part of our preparation for our brand new Beyond Business website which is in the final stages of preparation. For the time being, I am happy to share our short, fun, reportingy geeky vid.

The video was created by Alexandre (Alex) Magnin and narrated by Juno Rinaldi. Alex is a skilled illustrator with a passion for sustainability. You can see more of his work and a range of fun-educational sustainability videos on the Sustainability Illustrated site.  

Check out our new vid:

elaine cohen, CSR consultant, Sustainability Reporter, HR Professional, Ice Cream Addict. Author of Understanding G4: the Concise guide to Next Generation Sustainability Reporting  AND  Sustainability Reporting for SMEs: Competitive Advantage Through Transparency AND CSR for HR: A necessary partnership for advancing responsible business practices . Contact me via Twitter (@elainecohen)  or via my business website www.b-yond.biz   (Beyond Business Ltd, an inspired CSR consulting and Sustainability Reporting firm).  Check out our G4 Report Expert Analysis Service - for published G4 reports or pre-publication - write to Elaine at info@b-yond.biz to help make your G4 reporting  even better. 

419,317 reasons to report on sustainability

At Sodexo, every employee counts, and the company aims to engage every employee in the organization's corporate responsibility efforts. Sodexo is a great example of where the reporting process has become an empowering element of corporate practice, rather than just a document to show to external stakeholders at the end of the annual cycle.

Sodexo is one of the largest companies in the world by employee headcount (the 18th largest private employer), with 419,317 people on board at the end of fiscal 2014, working across more than 33,200 sites. More than 95% of Sodexo employees are in daily contact with clients and serve 75 million consumers each day in 80 countries.  Sodexo provides "Quality of Life services" which includes diversified outsourcing services, benefits and reward services, and personal and home services, adding value to the work and well-being of people in a wide variety of organizations from offices to hospitals to universities and more. In this size and scale of organization, implementing a global strategy is complex and not without a range of unique challenges, especially when most of the sites your employees operate from belong to clients.

Sodexo's reporting reflects this size and scale. Headquartered in France, Sodexo publishes an annual integrated report (Registration Document) that conforms to the French Grenelle II disclosure requirements, and also includes just about everything everyone might want to know, and yet, remains accessible and interesting to read (all 372 pages... well, almost all). Aside from financials and Grenelle II, the Registration Document references GRI G4 guidelines, ISO 26000 standard and the UN Global Compact principles, bringing everything together in a single content index.

What makes this report fascinating, however, is the way sustainability is embedded as part of the core approach as well as a business discipline that is managed and led right from the tone at the top. With a business mission that is a social mission as well - to improve the Quality of Life of our employees and all those we serve - applicable both internally and externally, Sodexo's sustainable development journey is aligned in all respects. The opening statement from the company's founder and chairman, Pierre Bellon, is well worth a read - describing a life-philosophy as well as an approach to sustainable business growth that many would do well to learn from. His personal and business insights are quite inspiring - including ten important trends that are shaping the way business develops, and five important priorities for Sodexo.

Within the report, there are many (many!) short case studies and insights about how Sodexo's work is making a difference ... from supporting the IBM LEED certified Technology Center in Chile, to winning a workplace foodservices award in Scotland to providing Quality of Life services including health and safety programs for offshore drilling fleets to foodservices for the mining industry in Mozambique to supporting prisoner rehabilitation in UK prisons to supporting environmentally childcare facilities in France. The diversity of clients and nature of services provided is quite incredible. And while these are all core business services for Sodexo, they all fall under the umbrella of improving Quality of Life. That also makes them sustainability services.

Sodexo's CSR approach is brought together under its corporate responsibility roadmap: the Better Tomorrow Plan, which has its own dedicated section in the Registration Document a robust section on Sodexo's website. With many stories of how the Better Tomorrow Plan is put into practice around the world, the Registration Document details Sodexo's actions within its priorities to employees, promote nutrition, health and wellness, support local communities and protect the environment. The company also maintains and hosts a separate, independent website that presents thought leadership relating to Quality of Life.

A chat with Sodexo

In the run-up to the fourth annual Smarter Sustainability Conference in London on 24th February 2015, which I chair, I took the opportunity to talk to Neil Barrett,  Sodexo's Group Vice President Sustainable Development. 

ME: How do you get such a massive, sprawling and complex organization like Sodexo aligned behind a cohesive sustainability approach?

NEIL: "One of the key developments of the group has been the greater alignment on sustainable development actions. Some years ago, we created the Better Tomorrow Plan. It was eighteen months in the making. We undertook a huge engagement and dialogue program with stakeholder groups to make sure we understood the issues that were important to them. When we launched this roadmap in 2009, one of the things we did right, in retrospect, was to devote the first year to getting our people on board. Because of scale of breadth of our organization, we took a solid twelve months to engage people internally on why this was important, what our priorities are and the commitments we undertook. That was time well invested. It also allowed us to establish a baseline on our various commitments across 33,000 different sites where our people work. Because we are represented on client sites, the reporting challenge for us is heightened versus organizations that have operations within facilities they directly control or operate. As we provide our services on client sites, it took some time to understand what we should report on, what we can control and influence and how we should measure our performance for our own benefit and for the benefit of our clients."

ME: How do you manage to maintain consistency and discipline around reporting and performance management?

NEIL: "We have two kinds of indicators: Progress indicators and impact indicators. In the area of progress indicators, we have created a level of awareness around expected behaviors - what actions our employees can take on site to help improve our clients' sustainability performance. We have equipped our site managers with all they need to support sustainability processes at clients' sites and manage how we engage with the client. On the impact indicators side, we look to see how we measure the impact of our actions for our clients or consumers. Additionally, we established an effective governance structure right from the beginning. It has stood us fairly well over the past five years and we are able to report our progress in a consistent way. Every year we survey all our sites for information about their sustainable development activities and this is then consolidated at a regional and group level. We get a range of information about the environmental aspects of our activities and impacts on our clients. We put this system in place back in 2009. Actually it has stood us in very good stead for the introduction of the French Commercial Code Grenelle II Act in France in 2012. We already had everything in place to be able to report."

ME: Is all the effort collecting data worth it?

NEIL: "Each year we review our progress and what we have achieved, but it is not just about reporting. It's about engagement. Our reporting processes help our people understand the reasons they are taking action, what areas they should be focusing on and where they need to go if they need guidance. The data we collect helps us create site-based reports. Each site manager gets a report that is designed for sharing with the client, showing comparative performance and benchmarks with other sites. It shows how the site is performing or even under-performing. The site managers are able to provide clients with details that help engage the client in discussion with our site teams. This becomes an ongoing dialogue which ensures we all focus on achieving the right outcomes for all parties. This goes right back to the launch of the Better Tomorrow Plan and its governance. We have more than 100 Better Tomorrow Champions in the business who help facilitate these processes. You can imagine that they are very active at reporting time! For us, this is all about engagement, reporting, serving our clients better, empowering our people and making a positive contribution. Ultimately it supports improving Quality of Life. So, yes, it's worth it."

ME: What else has worked well?

NEIL: "One of the very pleasing outcomes this year has been that Sodexo was awarded Sector Leadership in the Dow Jones Sustainability Index for the 10th consecutive year. As standards and expectations have evolved we have been able to maintain our industry leadership position. Such external recognition validates our approach and efforts and also reinforces the fact that we are moving in the right direction. We were also awarded this year the sector leader and most-improved company in the CDP Forests Report. And many other recognitions. I have to say that this is also increasingly being viewed by clients as important. It's a ticket to play. Clients want to deal with companies that can demonstrate a commitment to sustainability and corporate responsibility and can assist them in their sustainability journey."

ME: How do you manage to report everything in one integrated document? You have so much going on….

NEIL: "It's been a challenge to pull everything together in the one document, but we have invested the time to consolidate everything into one report. We used to produce a number of different annual reports. Consolidating everything is much clearer both for us and for our audiences. The drive for simplification has helped. With a myriad of metrics, it helps give us a better sense of what we are doing and achieving. We have also tried to make it accessible – communicating in a way that people can understand. We are now in the process of doing a materiality refresh… some themes have moved around but, by and large, the issues and priorities mainly are just as valid today as they were some years ago. Some of our targets will be completed by 2015, and we are now looking towards setting new ones for the coming years to continue our progress."

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I am looking forward to meeting Neil at the 4th annual Smarter Sustainability Reporting Conference.

He'll be speaking on "Leading ways to measure corporate responsibility impacts". Judging by our conversation, he'll have a whole lot more to share. Don't miss it!

PS: I want to thank John Friedman, Sodexo's Corporate Responsibility Communications Director, who is also long-time social media buddy and prominent writer, blogger and commentator, for connecting me with Neil. Check out John's writings at the Huffington Post.

elaine cohen, CSR consultant, Sustainability Reporter, HR Professional, Ice Cream Addict. Author of Understanding G4: the Concise guide to Next Generation Sustainability Reporting  AND  Sustainability Reporting for SMEs: Competitive Advantage Through Transparency AND CSR for HR: A necessary partnership for advancing responsible business practices . Contact me via Twitter (@elainecohen)  or via my business website www.b-yond.biz   (Beyond Business Ltd, an inspired CSR consulting and Sustainability Reporting firm).  Check out our G4 Report Expert Analysis Service - for published G4 reports or pre-publication - write to Elaine at info@b-yond.biz to help make your G4 reporting  even better.