Lindéngruppen: a shared transparency journey

Last month, I was honored to be invited to join the next stage in the transparency journey of a wonderful, privately-owned group of companies in Sweden. The parent company is Lindéngruppen, and it describes itself as "a second-generation family business focusing on sustainable long-term development of industrial companies". In 2016, Lindéngruppen’s wholly-owned companies had a combined turnover of approximately SEK 7.4 billion, and more than 3,200 employees in 27 countries. Lindéngruppen, based in Höganäs, Sweden was founded by Ulf G. Lindén in the mid-eighties and is now led by the Chairperson of the Board, his daughter,  Jenny Lindén Urnes.  

Lindéngruppen owns and runs four companies:

Beckers is a global industrial coatings company specializing in coil coatings and industrial coatings for metal. Beckers also provides finishes for consumer electronics and lifestyle appliances. 

Colart supplies the world’s most popular art material brands. Colart’s mission is to provide sustainable, creative tools and services to release pure expression.

Höganäs  is the world’s leading producer of metal powder and the main driver of the development of metal powder applications. 

Moorbrook Textiles produces woven-textile products from luxury fibers. 

These four businesses are primarily B2B, and do not have all that much in common in terms of the nature of their business, beyond their ownership and shared values as members of the Lindéngruppen family. But that is clearly enough to sustain responsible practice, as all four companies are guided by the enlightened, passionate and visionary leadership of the group's Chair, Jenny Lindén Urnes, whom I was privileged to meet at the first Lindéngruppen Sustainability Reporting Conference for the companies in the group last month. Her commitment to growing positive-impact businesses shines clearly as an inspiration for all.

At the one-day event, where company CEOs, sustainability, EHS and HR professionals came together as a group of more than 30 people, I shared my thoughts and insights about Sustainability Reporting, with a focus on the benefits for privately owned and smaller sized enterprises, and engaged in discussion with the business leaders. During the day, teams works on future scenarios and considered the challenges and opportunities that sustainable practice might bring. And all of this took place at Färgfabriken in Stockholm, Beckers' old paint factory built in 1889 and later converted into a cultural institution, supported by Lindéngruppen, now serving as a platform for contemporary cultural expressions, with an emphasis on art, architecture and urban planning, using approaches that help explore and understand the complexities of our constantly changing world. What a superbly fitting venue for a day of free thinking and collaboration.

The Lindéngruppen companies started their sustainability journeys well before this first shared experience, however. Each company has been applying sustainability principles and transparent practice in its own way with its own particular relevance and focus.

Beckers has been publicly reporting on sustainability since 2012 and its most recent Sustainability Report for 2016 is GRI compliant report with a focus on 8 core material topics underpinned by a sustainability vision.

In this report, Beckers shares the progress made in the development of Beckers Sustainability Index, a tool to help customers understand and make more informed choices based on data about the sustainability profiles of Beckers coating products. Last year, Beckers converted the index into an IOS/android app allowing customers to easily contrast the sustainability performance of different coating systems. This is an example of Beckers integrating sustainability in its core business through the products it sells, beyond managing the direct impacts of its production and other activities. It's about the impact of the business on society, not just about operating responsibly.

Colart's Sustainability Report for 2016-2017 reflects the color and creativity that are the essence of this company. Aligning with the UN SDGs, Colart identifies 12 goals that are most relevant for its business impacts and contribution to society. Using a seven-step "GET WISER" approach to sustainability strategy, Colart has been embedding awareness and understanding across all levels of the business, and engaging in creative platforms to promote the use of art for positive impact, such as “Hospital Rooms”, a UK-based mental health charity that commissions artists to create inventive environments and artworks for mental health units and holds art workshops for mental health service users. Aligning positive social impact with core business expertise helps make this partnership a success. 

Höganäs has just started its reporting journey with an initial internal report for 2016 that has not been published as the company prepares for external reporting for 2017. Nonetheless, having had the benefit of a sneak preview, I can say that the 2016 Höganäs internal report is a strong GRI-based report, reinforcing the sustainable contribution of metal powders that help reduce resource consumption and make manufacturing processes more efficient. There is much scope here, as metal powders from Höganäs are used in component manufacture, electrical applications and filters, surface coating, welding and brazing, water purification, cleaning of industrial wastewater, soil remediation and more. With more than 700 patents on metal powder processes and products, Höganäs invests in building its expertise and creating sustainable solutions for customers. With five central thrusts in its sustainability strategy to climb "Mount Sustainability", Höganäs is advancing climate neutral operations and sustainable offerings for customers while managing direct workplace impacts and engaging in communities. Höganäs is a partner in developing and advancing Swedish Sustainable Steel Vision for 2050 with other sector players in Sweden, playing a role in shaping a more sustainable future for the industry.  

Moorbrook Textiles, owners of the Alex Begg brand, is applying sustainability practices in its operations as part of its brand approach. This includes working to eliminate hazardous chemicals from all fabric production processes, ensuring aminal welfare in the animal fiber supply chain for wool and angora and developing traceability processes for sourced fibers. I understand that Moorbrook is also building a sustainability reporting capability and aligning its reporting processes with GRI Standards. So far, this work is internal and has not yet been published. Clearly behind the Lindéngruppen vision, however, Moorbrook has a positive sustainability story to tell and I look forward to hearing more.   

Lindéngruppen is an example of privately-owned, SME-scale, B2B businesses that are engaging with sustainability as essential supply chain partners for their customers and positive presences in their communities. It's inspiring to experience the passion that each company demonstrates in finding its own relevance and establishing its unique space along the sustainability spectrum. Led by a clear-headed, team-spirited and pragmatic Group Chief Sustainability Officer, Jenny Johansson, all companies in the group have the support they need to find their sustainability voice. And each is doing so at a pace that is manageable and enables maximum learning for each company along the journey. 

Lindéngruppen is proof that enlightened leadership and a practical approach is good for people, good for business and good for all of us, no matter the size or nature of the business. I wish all the Lindéngruppen team continued success and look forward to more Sustainability Reports of their progress.  

elaine cohen, CSR Consultant, Sustainability Reporter, former HR Professional, Trust Across America 2017 Lifetime Achievement Award honoree, Ice Cream Addict, Author of three totally groundbreaking books on sustainability (see About Me page). 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). Need help writing your first / next Sustainability Report? Contact elaine: info@b-yond.biz 

Elaine will be chairing  the edie Conference on Smarter Sustainability Reporting  in London on 27th February 2018

In the hot seat at GRI with Tim Mohin

After nine months at the helm of GRI, Tim Mohin is still, yes, still, enjoying his job and making waves in sustainability circles. An eternal optimist endowed with just about enough realism and an unshakeable vision of a future of sustainable development powered by corporate accountability and transparency, Tim has a lot to say. GRI is also 20 years old young, and though Tim Mohin has been leading it for a much shorter time, his experience as a practitioner and sustainability leader gives him the long perspective. 

What prompted me to pound Tim with a barrage of tough questions was an interview with Bob Eccles published in Forbes a couple of months back.  Tim is quoted as saying: "There is a narrative that has been running for a while now that portrays sustainability reporting organizations as in conflict with each other. The reality is that nothing could be further from the truth. I believe there is an increasing amount of harmonization in this space, whether it be GRI, or the UN Global Compact, SASB or the IIRC. Not only do we have longstanding partnerships with those organizations and others, but we are in fact all just after the same thing, which is sustainable development." 

I beg to differ. I do not see harmonization between any of these organizations and there are new frameworks and reporting approaches popping up all the time, whether in relation to specific sectors, regulation, stock exchange listings or other independent initiatives. Investment analysts use their own proprietary methodologies that are not based wholly on one framework or another. Longstanding partnerships with organizations in this space may look nice on paper, but in practice, they have yielded very little in terms of simplifying the way companies report. I am sure it sounds nice to talk of harmonization and partnership, but the reality is that it is not yet yielding tangible benefits. The proliferation of Linkage Documents that enable some sort of correlation between GRI Standards and other frameworks further clutters the landscape. 

One case in point is GRI's close collaboration with the UN Global Compact. Both organizations have been in dialogue forever and have signed more MOUs than Nobel has given out prizes. And yet, signatories to the UN Global Compact are still required to prepare a Communication on Progress in line with UNGC requirements at Advanced, Active or Learner level. In fact, the UNGC is very proud of its flagship reporting framework - as noted on its website. 

There is a 31 page document making the connection between GRI G4 Guidelines and the UNCG COP(s). This states clearly that reporters using GRI must still include content relating to UNGC core elements, even if those have not been deemed material for the organization and therefore not required by GRI Standards. Frankly, just reading this linkage document made me crave for paracetamol-flavored ice cream. If there were a true spirit of harmonization, I would expect the UNGC to declare the demise of the COP and require all large company signatories to deliver GRI-based in accordance reports and all SMEs to deliver reports covering a subset of GRI indicators. The perpetuation of different frameworks compounded by the need to understand the link between them is about as useful as an iPhone at a mindfulness retreat. There are many examples where unnecessary duplication of requirements adds nothing to sustainable development. It adds only bureaucracy, budget and salaries for people charged with promoting different frameworks. 

I asked Tim to explain his thinking about the positive extent of harmonization. 

"I am coming from twenty years of practitioner experience. I can say that a fractured landscape has created confusion and burden for corporations and we have to pay attention to that. We have to look at how to dig a layer deeper and appreciate that there are different tools for different uses. It is not a reason for companies to become confused. There is real harmonization work going on. When I say harmonization, I am talking about when standard-setters are asking the same question in annoyingly different ways. Right now, we have an aspiration to work with SASB to align such questions. There are over two thousand different disclosure standards out there. Currently we are in Phase One, mapping the overlap and looking at where we can align and simplify. This is work we are trying to get funded. I am certainly seeing a change in collaborative spirit at SASB. When I first got this job, I went on a listening tour. When I got to SASB, it felt like we were competitors. I took the opportunity to appeal to a shared aspiration which is our end-goal to improve how information is used to advance sustainable development. That's the reason I took this job."

And the new thinking on the Sustainable Development Goals? 

"My view is that work in industry sectors and work on the Sustainable Development Goals can merge together. When you look at a sector and what's material for that sector, and then overlay the SDGs, you can see there is a good degree of correlation. I am very keen to merge those streams of work."   

What about the work GRI is undertaking to advance reporting by SMEs? 

"I took a trip through Asia this summer and one of the things I noted was the explosion in stock market listing requirements. Many of the listed companies in that region are SMEs, and they are starting to come to us for help. This is a major driver of the expansion of SME reporting. We have been working with one of our major funders in a program to drive sustainability reporting through the supply chain. When large companies use their buying power, you can bring a lot of SMEs into the fold, so it's a program to bring buyer and supplier together. First, they define the material issues they really want from the SME. A digital tool has been developed to help them use the GRI Standards so that it is more simple, straightforward and requires fewer resources. We are conducting training in developing countries (Colombia, Ghana, Indonesia, Peru, South Africa and Vietnam) where we have funding and there are more to come. The pilot program has a two-year time-frame before we can roll it out globally. We are excited about this and it clearly shows the difference that GRI brings - we are trying to affect the entire global economy by harnessing the forces of capitalism in the service of sustainable development." 

How would you summarize your thinking after nine months at GRI?

"I have never been happier. This is certainly one of the highlights of my career. It's a fantastic cause and a fantastic organization. My only frustration is that there are so many ideas and possibilities, more than we can act upon at any given time. I have had to prioritize and manage expectations and focus but it's working out quite well. Running a not-for-profit is like running a business - we now have nearly 100 people around the world." 

And the focus is? 

"We have four key areas that we are prioritizing at present and we have reorganized our structure to meet the needs. (1) improving the quality of sustainability reporting (2) providing preliminary reporting guidance on sustainability topics that are new to the corporate reporting field (3) increasing reporting among small and medium-sized enterprises (4) promoting harmonization in the corporate reporting landscape. We are actively working in all these areas."

Do think there is still an issue connecting reporting practice to actual sustainable development?

"There is more work to do in this area. We have gotten some funding recently to work with the investor community to define what is investor grade reporting and how GRI can make that happen. It's a big hill we have to climb."

And the next GRI Global Conference?

"Ah yes, we'll be making an announcement on that soon. Watch this space!"

So, lots of things bubbling at GRI, including the tarmac on the Road to Harmonization. Tim Mohin is very consistent and clear in his purpose and intentions - to advance sustainable development and improve the value of reporting as a tool to help us all do that. In the meantime, defragging and optimizing the reporting framework hard drives continues to be somewhat of an elusive goal.

And if all that is not enough for you, you can check out the recent GRI Podcast with Tim Mohin and hear him talk about GRI's 20th anniversary and other things reporting - including more on the subject of harmonization. 






elaine cohen, CSR Consultant, Sustainability Reporter, former HR Professional, Trust Across America 2017 Lifetime Achievement Award honoree, Ice Cream Addict, Author of three totally groundbreaking books on sustainability (see About Me page). 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). Need help writing your first / next Sustainability Report? Contact elaine: info@b-yond.biz 

Elaine will be chairing  the edie Conference on Smarter Sustainability Reporting  in London on 27th February 2018

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.

7 short CSR reports - the better and the less better

I was asked by @jenniferwoofter on Twitter if  I can recommend any short reports - under or around 20 pages - that are effective in communicating sustainability. I always have a problem remembering where I found good reporting practice. I ought to develop a system. (Note to self: that to-do list just keeps getting longer). So, in order to respond to Jennifer, and refresh my thinking, I did a little research using the GRI Global Reporting Sustainability Database. It's very hard to find reports that are under or around 20 pages (excluding executive summaries of longer reports) (and, of course, I only look at reports in English (or sort-of English)). It's almost impossible to find short reports in Asia or Latin America and most of Europe. Shorter reports tend to be from U.S. companies. Also, short reporting does not correlate absolutely to company size. It's not just SMEs and local companies that keep reports compact. My list below includes some large global companies with tens of thousands of employees.

Here's what I came up with - the better and less better. I will say that even the less better reports are evidence of some level of commitment and action and while my, as usual, fairly direct criticisms reflect my honest professional opinion in the hope of helping reporters get better value from reporting, I continue to commend and be grateful to companies who report. Reporting is always a challenge and always an achievement. Even short reports can be powerful. Some more than others.

The better

Datwyler Cabling Solutions AG 2013 Sustainability Report, Switzerland

GRI Application Level C, GRI checked, 12 pages excluding GRI Index

Datwyler Cabling Solutions is a supplier of system solutions and services for electrical and ICT infrastructures in public and commercial buildings and in data centers and networks.This is a report for a medium-sized business (less than 1,000 people) that really does the job. It's short, no frills, no stories and no case studies, but it covers the ground and credibly represents a sustainable approach with just about enough data to make it meaningful. Don't look for more sophisticated reporting content, such as a materiality matrix or impact assessments, but for the size of the organization, the report is a simple, concise and clear communication of the organization, its values and its approach in practice. As short reports go, I like this one. 

Sanoma CSR Report 2013, Finland
GRI Application Level C report, 22 pages including GRI index.

Sanoma is a media and learning company based in Finland with operations in several countries and almost 11,000 employees. Sanoma is publicly listed in Finland. This report is delightfully colorful - as we might expect from a media company - and the social mission is clear. "We help people access and understand the world" and the passion "actively shaping the world around us" is well projected. The report is structured with people first (how many reports put people last?), then responsible business activities, then community, then environment. It's an interesting read, although a bit too general in places. The attractive design helps the flow. One thing that is missing, though, despite a tick of the box in the GRI Content Index, is a statement from the leadership. No CEO or General Manager. Maybe this is because Sanoma is just one big team, but without a leadership statement, this report lacks a bit of punch for me. However, it's a good report certainly one of the better shorter ones.

Downer 2013 Corporate Responsibility Report, Australia
GRI Application Level B+, 21 pages, excluding GRI Content index but including Assurance Statement.

Downer is a mining, infrastructure and rail company, listed on the Australian Stock Exchange. Downer employs more than 20,000 people and operates primarily in Australia and New Zealand. This report packs a punch for its 21 pages. It's compactly designed and I love the photography of what appear to be real people that work at Downer and not stock photos of anonymous citizens of the world. The CEO statement is short and to the point and actually evidences some element of strategic thinking. Disappointingly, although Downer attests to following a materiality process, material issues are not listed explicitly, but are said to be the basis for the report content. Data is nicely presented and a few short case studies add to the credibility and interest in this report. Some stakeholder voices are included (internal). The report is well-written and easy to read. This is probably one of the best short reports I have come across.


The less better

A&E 2013-2014 Sustainability Report, USA

Non GRI report, 16 pages

A&E is a provider of threads and yarns for the global fashion industry. It employs more than 10,000 people, a fairly large organization, something you wouldn't guess from the format of this report. This is a home-made report in word format that is rather difficult to read due to the awkward formatting, errors and inconsistent language style. The CEO statement is rather platitudy and weak, although the company does provide evidence in a short 16 pages of sustainable practice. A&E presents Ten Threads of Sustainability and shows a long history of data on environmental impact reduction. However, while the delivery of a report is always a good thing, and far better than not reporting, this report lacks balance, structure and relevance. I am sure that a stronger investment in the reporting process and output would deliver greater value for A&E.

Williams-Sonoma Inc. Corporate Responsibility Report 2013, USA 
Non-GRI report, 22 pages

This is a approach and story-based report that projects a strong commitment and a community orientation for this specialty home-products retailer and e-commerce company, with brands including Pottery Barn and west elm and around 600 retail stores. Williams-Sonoma employs around 28,000 people of whom 7,800 are full time. However, it is almost completely devoid of data. Just to find how many people the company employs, I had to search for the most recent Form 10-K. There are a few numbers around sustainable sourcing of wood and expenditure with artisan workers, but not much else. Despite "forging new relationships to advance our energy goals", we are not treated to a peek at what these energy goals are, not any data about energy consumption, or any other aspect of this company's supply chain. In this case, this short report is too short. It's a nice sustainability-oriented brochure but doesn't pass the litmus-test for a CR Report. 

The Carlyle Group Corporate Citizenship Report 2014, USA
Not GRI Report, 18 pages

The Carlyle Group is an American-based global asset management firm, specializing in private equity, based in Washington D.C employing around 1,700 people. In 2013, Carlyle appointed a first Chief Sustainability Officer. This report is about how Carlyle practices responsible investment and through its investment policies, drives increased awareness and advancement of sustainability practices, as well as helping change practices at portfolio companies. Indeed, there are some very positive initiatives in place.  There is  a section on environmental initiatives in portfolio companies, and a couple of pages on community involvement and work culture. Nice stories and snapshots of responsible investment, but not enough quantified sustainability impacts. A sustainability report that presents almost no data is always rather a disappointment. Disclosing approaches, policies and individual initiatives is always better than no disclosure at all, but credibility increases when we read reports that actually describe performance rather than treat us to story snapshots.

Thermo Fisher Scientific 2013 Corporate Responsibility Report, USA
GRI-based report, undeclared level, 12 pages including GRI Content Index

Thermo Fisher Scientific is an American multinational, biotechnology product development company with 50,000 employees in 50 countries and revenues of $17 billion. The report is organized around the three sustainability priorities of the company - business sustainability (process improvement and efficiencies), employee engagement and philanthropic giving. As such, it's what I call a "shopping-list" report - what we did, where we went, how much we donated. All this is very fine, and although a GRI Content Index is included, there are very few performance indicators of substance. For a company this size and of such breadth, with such an important role to play in the world, we might expect a little more depth to the CR approach and disclosure. The report is pleasant, representing early CSR thinking but lacking the maturity of today's sustainability orientation.  

Writing short reports is not a substitute for acting short on sustainability. Where there is little action of substance, a short report will not fill the gap and show the company up as a sustainability leader just because there are some nice stories and policies. On the other hand, short reports can reflect extensive performance almost as well as long reports, if done well. Interestingly, I realize that the reports I found to be more credible and useful were GRI-based. I hadn't specifically tried to demonstrate that GRI reports are better, but perhaps there is something about working to a framework that helps structure the content and flow of a sustainability report. 

Thanks to Jennifer Woofter for asking me about short reports. I love reports of any length  and this was an interesting analysis. You can guess what I am going to do now.... mmm, maybe banana pecan flavor....

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.  

Reporting awards CRRA '12: call for entries

This is the time of the year that I love in Sustainability Reporting. It's the start of the CorporateRegister.com Reporting Awards, CRRA '12, now entering its fifth cycle. The CRRA have earned a global reputation as credible and authoritative awards for sustainability reporting drawing thousands of voters on a broad range of globally published Sustainability Reports. What could be more exciting that voting for great Sustainability Reports? Ha-ha. Whatever your answer, CRRA is an exciting event, culminating in a grand award ceremony for the best of the best,  drawing attention to some of the most impressive work around in Sustainability Reporting, showcasing not only the big and bold reporting efforts of leading multi-nationals but also the lesser known reports of SME's and first time reporters. I am particularly excited about CRRA '12 because this is the first year that I actually have been able to submit my own company's Sustainability Report. If you believe, as I do, that Transparency is the Key to Sustainability , then you will welcome the CRRA '12 as a platform which advances transparency and inspires companies to (better) reporting.

This year, the Call for Entries for reports published between 1 October 2010 and 30 September 2011 is open until October 7th 2011 and there are a limited number of slots in each category, so those wanting to assure a place in the line-up should act quickly. The numbers of report entries are limited so that voters are not overwhelmed with thousands of reports  - after all - reading and voting for reports is not the ONLY thing we will be doing until the voting closes, right ? Oh, voting closes in January 2012 and results will be announced at the Gala Ceremony in March 2012. Here is the link for submission of your report.

All reporters entering the Awards get feedback about the voting and comments on their report after the results are published. This is quite detailed showing the distribution of votes, which categories of stakeholder viewed the report and all the comments received. Take a look at a sample feedback report here. And if you have not published a report, don't worry, because CRRA is the only reporting awards event (I think) that actually offers prizes for voters and not just entrants :)

As in previous years, there are nine categories:

Best Overall Report: Voters are encouraged to consider CorporateRegister.com's 5 C framework : Content, Communication, Credibility, Commitment, Comparability.

Best 1st time report: For a company’s first non-financial report. The first is always the toughest. 

Best SME report: The CRRA definition of SME (small and medium enterprise) is fewer than 250 employees and annual turnover of less than EUR50m.

Best integrated report: For the report that most successfully integrates the financial and non-financial disclosures - emphasis being on integration rather than juxtaposition.

Best Carbon Disclosure: For the best disclosure of the carbon emissions, implications for climate change, and the mitigation measures.   

Creativity in Communications: CRRA say that this award is "for a report which is a real pleasure to read, because the authors have given thought to both the content and the reader, delivering a document which is engaging and informative and not boring and unimaginative." A sustainability report which is a real pleasure to read is NOT an oxymoron. Ha-ha. 

Relevance and Materiality: This award is for the report which cuts to the chase and tells us about the material issues (ie those specific to the company performance and sector, the risks and opportunities), clearly and succinctly. A short report which gives us the relevant information should win over a blockbuster of several hundred pages.

Openness and Honesty: This award is for the report which comes clean, tells both the good and the bad news, and which convinces us that this is a balanced picture.

Credibility through Assurance: This award is a joint award for the reporting company and the external assurance body and is awarded for the assurance statement which adds the most credibility to the overall report.

However, there is one welcome addition to this year's' entry requirements. Reporters are asked to submit Key Report Highlights, to help readers get to the key differentiating points that make the report vote-worthy.

I have been pestering CorporateRegister.com for years now to include a reporting award for the report which has the most mentions of ice-cream but somehow this suggestion has not been popular. I can understand that. Ten categories would be rather stretching. 

And if you want to see last year's entrants and winners, click here.

And if you want to see what I said about last year's entrants and winners, click here.

So, if you have published a Sustainability Report, worked on a Sustainability Report, assured a Sustainability Report or know a Sustainability Report which you think should have a chance of global recognition, now's the time to make sure it gets in the CRRA 12 line-up.

elaine cohen, CSR consultant, Sustainability Reporter, HR Professional, Ice Cream Addict. Author of CSR for HR: A necessary partnership for advancing responsible business practices   Contact me via www.twitter.com/elainecohen  on Twitter or via my business website www.b-yond.biz/en  (BeyondBusiness, an inspired CSR consulting and Sustainability Reporting firm)

The most special CSR Report of all.....

Which report is the most special report of all ? Your own report, of course. So it is with great pleasure that for the first time in the history of this blog, and all manwomankind,I am able to write a post about our own CSR Report. Yes, it's the Beyond Business Sustainability Report 2010, entitled "

" How a little consulting firm makes a big impact".  

Please download the report from our website here: http://bit.ly/gOzRCr, and of course, give us your feedback!

 Report highlights:

• covers Beyond Business's Sustainability performance 2009-2010 (the first two years of our new, merged business)
• conforms with GRI Application Level A, checked by the GRI
• includes a materiality matrix
• confirms Beyond Business as a carbon neutral company
• the first sustainability report from a consulting firm in Israel
• includes case studies from several clients and partners
• tells the story of how it is possible, with the limited resources of a small consulting firm, to make a big impact through operating responsibly, serving a wide range of clients in advancing their sustainability, and working tirelessly to create awareness for sustainable change.  

Whilst our report may not have the scale of Pepsico, Starbucks, Intel, Vodafone or Microsoft, or the multimedia appeal of Manchester City Football Club, Burts Bees or Virgin Media, or even the interactivity of SAP, the frequency of Timberland,  the integration of Novo Nordisk, the creativity of WPP, the brevity of GoLite (ha-ha), the controversy of Monsanto, the charm of Impahla or the tradition of BT, Body Shop, Shell or GE, it does present an example of a small business who believes transparency should be an essential part of any business's DNA. We believe that SME's should report, because it both serves their business interest and also because it ensures that, as essential links in the supply chain of larger businesses, they are playing their part.  Even a small business such as ours learnt something in the process of reporting, not least of which was setting sustainability targets for ourselves for the coming years. Whilst we have a built-in advantage versus other SME's in that we can write our own report, as this is our expertise, the investment for producing such a report for a small business is not so devastating as to make it prohibitive. As a strategic businesss investment, we believe it's an essential tool.

As far as Beyond Business is concerned, a further reason for reporting is the need to practice what we preach. When we talk to clients, encouraging them to be more transparent, we will now feel much better knowing that we have personally undertaken this voluntary reporting approach ourselves.Walking the talk is just as important in consulting as it is in any other business. Sustainability consultants who provide sustainability services should produce their own reports. Some great reports which I am aware of by local sustainability consulting firms are:

• FrameworkCR 
• Sustainability Services South Africa
• Article13  (Communication on Progress) 
• Banarra

I mean, why would a company, who is interested in developing its own transparency, work with a consulting firm who is not transparent to help it become more transparent?

Anyway, I digress.

I do hope you will take a look at our first report and tell us what you think. Thanks in advance. 

And now... you know what sustsinability reporting dessert looks like, don't you?

Hint: Rhymes with Funky Punky.

Second hint: It's really tasty.

Final hint: I don't think it really contains monkeys.  

elaine cohen, CSR consultant, Sustainabilty Reporter, HR Professional, Ice Cream Addict. Author of CSR for HR: A necessary partnership for advancing responsible business practices  Contact me via www.twitter.com/elainecohen  on Twitter or via my business website www.b-yond.biz/en  (BeyondBusiness, an inspired CSR consulting and Sustainability Reporting firm)