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

First Report Trust Factor: Arby's

This is one for the First Report Trust Factor Series. It's all about sandwiches in the U.S. For an overview of the ten Trust Factors, see this post. 

Arby's 2016 Corporate Responsibility Report

Food and Beverage - U.S. - Not GRI- 44 pages

Arby’s is a nationally franchised sandwich restaurant brand, with more than 3,300 restaurants, founded in 1964. Headquartered in Atlanta, GA, Arby's has company-owned and franchise restaurants across the United States. Arby's employs 60,000+ people. 

The CEO Statement: 

Sometimes, in a first report, you just have to understand that any progress is progress and that companies have a right to be proud of any achievement. Arby's CEO confirms he is proud of what Arby's has achieved, one of the blurby statements I love to hate, but that's not what affects the Trust Factor most in this opener. What I am missing is a little depth. The CEO talks about employee giving, community projects and a water-saving irrigation program. These are good. But I'd like to have seen some reference to the impact of Arby's core business - how the business is changing peoples lives, not just through charity and eco-efficiency.  TF= 

Material focus: 

Arby's has identified four material (though not called material) areas of focus under a branded proprietary CSR program called PurposeFULL®. This includes: YouthFULL® - empowering youth,  SkillFULL® -  a winning culture, ResourceFULL® - good stewards of the environment and FlavorFULL® - adopting the highest standards in the food industry. This is evidence of thought about the approach to CSR at Arby's and these headlines frame the report. It's not quite a list of material impacts but it comes close.  TF+

Adherence to GRI: 

Nope. Not GRI. No indicators, no numbers, no Index. TF-

Transparency maturity: 

This report could be so much more impactful (and credible) if it contained some data. About the only place in this report where there are a few numbers is in the environmental section and these are mostly expressed in relative improvements rather than absolute performance data and impacts. In future reports, Arby's should find a way to disclose key performance metrics across the range of material topics in Arby's CSR program. TF-

Challenges: 

Barely a hint of challenges or obstacles to overcome in this report. The only reference to any sort of challenge that I found was the fact that customers are confused about which elements of packaging to recycle at franchised outlets. TF-

Examples of practice: 

Arby's doesn't present "case studies" in a structured sense, but the report describes examples of activities in the reporting year. While there is evidence of a range of positive actions, the report lacks solid data that tells us these initiatives are making a difference. For  example, in 2015, Arby’s joined forces with Bellevue University in Nebraska to develop a custom learning program exclusively for Arby’s team members. Participants can earn a certificate of completion that is worth 36 college credits. But we are not told how many employees joined the program nor how they progressed. On the other hand, in another example relating to the environment, Arby's shares results of an irrigation project: "In 2015, through a six month pilot that spanned 85 restaurants, we saved 7.4 million gallons of water." TF+

Stakeholder voices: 

The report contains quotations from several senior Arby's execs and franchisees. The quotes add credibility, especially those from franchisees that give a flavor of how Arby's is helping them achieve economic growth and business development. The report also includes a perspective from the U.S. Department of Energy in relation to Arby's participation in its Better Buildings Challenge in 2015 - Arby's surpassed the BBC goal by improving energy performance 24% from a 2011 baseline. TF+

Contact person: 

No contact person and no generic email dump box. TF- 

Clarity of presentation:  

This is an easy read. Too easy. It's all narrative and photos, no numbers or charts or diagrams. TF= 

Design friendliness:  

It's a plain PDF, no hyperlinks, no fancy graphics. Well-laid out narrative and imagery. This images are real - not stock anonymous.  TF+

Trust Factor conclusion: 4xTF+   4xTF-  2xTF=

Overall, this report is a positive start and reflects a consciousness at Arby's of different aspects of contribution to society and communities. The basics are there: supporting employees, supporting communities, maintaining high standards of food preparation, stewarding the environment. The environmental section is a little more detailed and contains results of a range of eco-efficiency and resource improvement projects.

The word "proud" appears 12 times in this short report. For a first disclosure, there are some elements of this report that this company can be proud of - twelve times over. However, the  report disappoints in its lack of depth and lack of transparency.  Arby's is proud of its accomplishments and that's a good thing. On the other hand, such a large organization, employing more than 60,000 people, with an important impact on our relationship to food and on the food supply chain, we would hope that, in the future, this pride would translate into greater transparency with a focus on outcomes not actions. Otherwise, it looks like the main purpose of this PurposeFULL® report is PR-FULL®. If Arby's is serious about CSR, there needs to be another couple of FULLS: TransparentFULL® and AccountableFULL® in future reports. Perhaps even a little DataFULL®.

Arby's seems to have this in hand: "Throughout 2016 and into next year, we will develop a roadmap that will more robustly steer our PurposeFULL path forward including a strategy for each of our pillars, short and long-term goals as well as opportunities for deeper collaboration and impact."

This is a positive statement and hopeFULLy, we will see the fruits of these efforts reflected in the next report.  

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).  Need help writing your first / next Sustainability Report? Contact elaine: info@b-yond.biz  

First Reports -Ten Trust Factors

It's almost Q4 and you know what that means. It's almost the start of the reporting season.

YAY! 

In the final quarter of the year, many companies are starting to plan their next report, or even their first report. There is a certain seasonality to reporting, by and large: Q4 planning, Q1 preparing, Q2 publishing, Q3 recovering. Of course, not every company is on that cycle.. but about now is usually the calm before the storm.

As we anticipate the next reporting season, we can expect a flurry of fabulous new first-time Sustainability Reports that will be published in 2017. It's not that I am especially optimistic about the impact of the EU Directive that will require 6,000 companies who do not currently report to start thinking about what they will write in their Sustainability Reports for 2017. Each year brings a flurry of new reports, with or without the Directive. And that means that each year, more companies have thought just a little more about the impact they have on our lives and are taking the first steps to be held to account.

Let's face it. Reporting is a little bit of a risky business. Take for instance, Dollar Tree Inc., a Fortune 500 American chain of discount variety stores that sells items for $1 or less in 13,600 stores around the country. Dollar Tree just published its 2016 Sustainability Report . Full marks for effort but this 14-pager 7-minute read is a list of environmental and social practices with barely any meaningful performance data. Not surprising then, perhaps, that there has been some backlash.

In a press release published in PR Newswire,  angry activists representing the Campaign for Healthier Solutions  berate the company for not addressing their concerns relating to chemical toxicity in the company's products after laboratory testing has found "potentially dangerous levels of lead, phthalates, and other toxic chemicals" in Dollar Tree's products. Comparing the current report to prior reports, these stakeholders find that there is almost no difference. So, although the folks at Dollar Tree have taken some steps along the transparency journey, they still have to find the path of accountability. Reporting is risky. Arguably, the fact that Dollar Tree has made efforts to publish a Sustainability Report has added fuel to the frustration of stakeholders. But, in fact, the Campaign for Healthier Solutions is doing Dollar Tree a favor. It's creating pressure that will ultimately lead to a safer planet, a safer society and a stronger business. If Dollar Tree embraces its critics, and takes responsible action, next year's headline may well be: "Dollar Tree's Sustainability Report reflects significant progress."  Reporting, whatever your motivation, even if it's just to tick a box, sooner or later becomes part of a greater whole relating to a company's role in society. Sooner or later, Dollar Tree will change. And it will benefit from that change.

So, even with some risk, reporting adds value and first-time reports hold a special significance for reporters, report users and me. I love first-timers. There is something about the special efforts necessary to deliver a first-time report and starting to flex those transparency muscles. I believe this starts to transform the internal conversation in any company, and eventually transforms the external dialogue too (as it has done at Dollar Tree Inc.). So many first-time decisions challenge any company that's reporting for the first time that it's a bit like navigating a minefield. And almost as risky.

As you all know by now, I generally tend to be a little critical when looking at reports so here's my upfront disclaimer. Every first report is a commendable venture into accountability and transparency and the start of what is hopefully a meaningful reporting journey for any company and its stakeholders. As a reporting consultant for hundreds of years now working with many companies, I can testify to the fact that no report is easy and every first report double-proves it. Before we go any further, I say: CONGRATS to ALL first-time reporters ever - you all deserve a triple scoop. Good luck to all those first-timers planning to break through the transparency barrier in 2017. (Remember, help is at hand - you don't need to go it alone :-)).

In looking at any report, including first-timers, it's important to consider that the overarching purpose of any Sustainability Report is to build trust. If it doesn't do that, heck, you're wasting your time. I've been taking a look at first-timers - it's always fun - to see how this is working. There are probably a thousand ways in which reports build trust, but, in order to help me apply a consistent approach when looking at first-timers from around the world, I  selected ten basic aspects of a first-time Sustainability Report that, for me, help build trust. These aspects do not carry equal weighting and they are far from scientific. These elements contribute to building any report's TF (Trust Factor) in my personal and subjective view. In sharing my thoughts, as always, my goal is to encourage reporting, in the hope that first timers will become second and third timers. My intention is not to be overly critical, but in some cases, forgive me if I can't help myself!

Here are the ten TF (Trust Factor) elements I  consider in my series of first-timer report reviews:

• The CEO Statement: Must be meaningful, relevant and authentic, not just some generic any-company rhetoric about "how proud we are of what we have achieved but there is more to be done". 
• Material focus: Must state the most important sustainability impacts and provide relevant disclosures. Oh, and that doesn't mean a list of material topics somewhere at the beginning of  the report, and no further reference to materiality. It means using materiality to frame the content of the report.
• Adherence to GRI: Yes, a GRI compliant report gains a point in my book. While there are many fantastic and genuinely impressive non-GRI reports, using GRI implies for me a predisposition to align with the most widely-used global reporting framework that relies on general stakeholder expectations of rigor in reporting content and quality. 
• Transparency maturity: This means  providing a critical mass of relevant sustainability performance data, not just declarations of approach and positions. No numbers, no good.
• Challenges: No company has no challenges. Authentic reports discuss challenges. 
• Examples of practice: Yes, I believe case studies build trust. They also help make the report more interesting and reduce yawn-time. 
• Stakeholder voices: I think reports that contain direct opinions from stakeholders tend to show that the reporting company has good relationships, a collaborative culture and appreciates stakeholder involvement. Including stakeholder voices - and faces - bring a report to life. 
• Contact person: I like reports that provide a person to contact, not an anonymous email dump-box. If you are proud of your report, put your name on it.
• Clarity of presentation: We have to be able to understand data and charts quickly and read the narrative with ease. Too much technobabble drives me crazy. If I have to pore over a chart for more than 35 seconds to understand what it's telling me, it's a bad chart, no matter how creative the designers have been. 
• Design and format friendliness: While design is not necessarily a trust-builder, good, clean, compatible design makes reading easier and shows the reporting company considers not only how to get the message across but how to get it through. Easy navigability is a plus. (I don't read eBook reports, so first-timer non-downloadable eBooks don't get my time.)  I don't like online-only which ties me to the speed and reliability of my internet connection wherever I am in order to navigate. I love PDFs. When I download a PDF, I can read it quickly wherever and whenever I want, search, highlight and make notes. Online formats undoubtedly offer interactivity advantages, but for me, they slow me down.

In upcoming posts over the next few weeks, in the run-up to Q4, I will review first reports that were published over the past couple of years against my TF (Trust Factor) framework. Watch out for posts with a First -Time Trust Factor title.

Let me know if you have recently published a first report.
Or even better - let me know if you'd like some help in preparing your first report. I would totally love that.

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).  Need help writing your first / next Sustainability Report? Contact elaine: info@b-yond.biz  

The TOP TEN Sustainability Reports of 2014

Another year-end, another excruciating task picking out my Top Ten Sustainability Reports for 2014. It's excruciating because narrowing my selection down to ten is probably the hardest thing I do on the CSR Reporting Blog each year. I am always tempted to go to 15, or 20, or 25... but then I think that tradition has its advantages and I have been picking Top Tens now for several years... 2010, 2011, 2012 and 2013. These are always the most popular posts of the year and get thousands and thousands of views. So why change a winning formula? Nevertheless, this year was particularly tough. There really are some great reports out there. 

My selection is always based on reports that cross my radar throughout the year, not a scientific or strict methodical evaluation of the report quality. Some of them have already featured in different blog posts. I try to select a cross-section of companies, sectors and countries, rather than selecting the big names in reporting that generally pick up reporting awards around the world. However, as I have done for the past few years, I use the AIM MODEL as I consider the reports that I find worthy of mention. Each report adds value in its own way, and each report is evidence of progress. Therefore, in mentioning a mere ten reports of the thousands that were published in 2014, I continue to do reporting somewhat of an injustice. On the other hand, highlighting these ten reports and their unique elements may provide insights and inspiration for new reporters, or potentially better reporters. In any event, this is always a post I find both challenging and fun all at the same time. 

Here is a quick reminder of my AIM MODEL: 

Authenticity: I look for whether the company has reported in an honest way, using stakeholder voices to supplement performance data. Authenticity for me includes balance, accuracy and completeness. I look for targets and progress against stated targets.  

Materiality: I look for whether the company has clearly defined the most important issues for the company and its stakeholders and described the way in which those issues have been identified and prioritized. Reporting materiality should also include a certain amount of contextual information which can assist us in understanding the issues and why they are material.  

Impacts: I look for whether the company identified impacts rather than just presenting a shopping list of activities. This means discussing the outcomes of what was achieved. The outcomes are the achievements (impacts), not the activities. This is by far the most difficult thing for companies to address and very few do it well.

And, in alpha order by company name, my Top Ten pick for 2014 includes larger and smaller companies, companies reporting for the first time, companies using the GRI framework at G3 or G4, and companies not using any framework, from all corners of the world and from a range of business sectors.  

1. ArcelorMittal Corporate Responsibility Report 2013
2. DS Smith Sustainability Report 2014
3. Globant Sustainability Report 2013
4. Impahla Integrated Annual Report 2014
5. Kathmandu Sustainability Report 2014
6. Olam Corporate Responsibility and Sustainability Report 2014
7. Simple Green Sustainability Report 2014
8. Telekom Austria Sustainability Report 2013/2014
9. Tiffany & Co. Corporate Responsibility Report 2013
10. Wipro Sustainability Report 2013-2013 

And now for the detail: 

ArcelorMittal Corporate Responsibility Report 2013

GRI G3.1, Application Level B+, 7th report

There's something about the consistency and intelligence of ArcelorMittal's reporting that makes it a reporting winner for me this year. ArcelorMittal's global sustainability report is no design extravaganza and you won't find any spectacular graphic elements or sweet photos of kids holding up the world on steel girders. But you will find a carefully crafted, well-written and balanced account of the company's impacts across its value chain, supported by clearly presented performance against targets and future plans, with considered material focus. A selection of short case studies supplement the narrative.

One of the things that has always impressed me about this company is its commitment, not only to global reporting, but also to local engagement. This year, the company published 15 local reports in different markets, each a report in its own right and not a copy-paste translation of the global report (although there is a shared overall strategy framework).

In fact, ArcelorMittal is deepening its local stakeholder engagement efforts, with a plan for engagement at "each and every" ArcelorMittal site. There is a compact stakeholder overview in the global report. 

The global report follows a familiar structure framed around ArcelorMittal's strategy covering: investing in people, making steel more sustainable, enriching communities and transparent governance. In each section, progress is noted and relevant context is provided in each area. This aligns with the material focus of ArcelorMittal.

The material issues were developed in a process involving internal and external stakeholders. The top six issues are all direct impacts of ArcelorMittal's operations.

I wonder if the broader issues relating to the contribution of steel to society and the way steel consumption over time is changing may be equally important. This is addressed by ArcelorMittal in its reporting - I wonder if the materiality process employed was broad enough to include the full value chain impacts of steel-making as well as a focus on the operational impacts of the company. Something for ArcelorMittal to consider in future. However, this does not detract from the fact that this report is well done and fits the aspirational AIM model very well. 

For web-users, ArcelorMittal offers an online interactive infographic this year which is fun to explore.

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DS Smith Sustainability Report 2014

Not GRI, 44 pages, 1st report

This is DS Smith's first report and it is swimming against the tide a little (in a way that I find encouraging!). The company says: "We have previously included a section on corporate responsibility within our Annual Report, which was aimed primarily at the financial community, but as our company continues to grow, we now want to broaden our reporting and reach a wider audience." Well, now, it's broadened. I have never noticed any of DS Smith's annual reports but I have noticed this Sustainability Report, and now, you have too!

DS Smith employs more than 21,500 people worldwide, in over 250 facilities across four continents, supplying four main products and services: packaging solutions, containerboard papers for the packaging industry, recycling operations and supply of flexible packaging and dispensing products.

There are several things I like about DH Smith's first report:

First, although it is not a GRI-base report, DH Smith has followed a materiality assessment process, defined material issues and clearly linked the report content to what's material.

The company explains its targets in different sustainability performance areas and links them to corporate values in an innovative presentation.

DS Smith's report includes case studies demonstrating performance and a statement of outcome. This is unlike many case studies in most of the reports that I read that simply describe a nice activity without telling us what kind of a difference it made.

DH Smith's report also includes external stakeholder voices and insights throughout the report, demonstrating a level of engagement in practice and an outward focus on stakeholders.

All in all, a very readable, interesting and AIM-worthy first report.

Globant Sustainability Report 2013

GRI G4 core, 49 pages, 3rd report

Reports from Latin America are generally quite colorful and this one from Globant in Argentina is characterized by bright design that makes reading this report fun. Sustainability is serious but it's also optimistic, energizing, aspirational and more. So many Sustainability Reports are soooooooooooooo serious, sooooooooooooooo tedious and sooooooooooooooooooooo straight-laced that it's no surprise that people moan and groan about how boring they are. Fun reports reflect a fun state-of-mind and it's catching. Globant's report combines this with good transparency and narrative in this G4 core report. 

Globant's business is about developing innovative software solutions for global audiences, headquartered in Argentina with offices around the world, employing more than 3,200 peopple. WPP, the large communication service group, acquired 20% of Globant at the end of 2012. 

Globant's material issues, although appearing right at the end of the report, are clearly (and colorfully) stated. Globant reports on 16 material Aspects and 21 performance indicators, demonstrating considered selection and focus of disclosure.

Each report section follows a similar structure : approach, management and performance narrative, supported by performance indicators and case studies as relevant. Globant provides data for three years, which is good practice. 

Although this report does not contain any external stakeholder voices, much of the narrative is outward looking, referring to impacts on stakeholders and impacts in markets and communities, with stakeholder engagement key players and headlines of their input. In future, it might be nice to see some (colorful) commentary from Globant's stakeholders. In the meantime, a respectable, credible and fun AIM-type report from Buenos Aires. 

Impahla Integrated Annual Report 2014

GRI G4 referenced, 68 pages, 7th report 

By now, if you are a regular CSR Reporting Blog follower, you are probably thinking that I take a commission or something from Impahla, as the Impahla report has featured in my top ten in all but one year, and that was probably only because in 2011, I decided not to pick the same companies as 2010. However, Impahla's reporting is so consistently outstanding that it's not right to discount them because they already reached the top. No, I don't get a commission, kickback or reward of any sort from Impahla. I just think the company is great, with inspiring leadership and totally triple-ice-cream-worthy reporting. Even before we look at the content of this report of this SME company with around 400 employees, just look at the way employees are honored in this report (there are three pages, I show just one of them below):

Of course, not every global company with hundreds of thousands of employees can included a thumbnail of every single employee .... but more than the pictures themselves, this tribute to employees is a rare demonstration of the true appreciation this privately-owned, forward-thinking award-winning sports apparel company has for every individual. Including all employees in Impahla's annual report has become something of a signature style for this company. That's part of the reason that Impahla is special. The other part is the founder-leader, William Hughes, a modest Kenyan-born businessman whose visionary insight and trust-based actions have shaped Impahla into a successful and sustainable business. William writes in his introduction to this 2014 report that it is written as much "for ourselves" as for external stakeholders, which I believe would be a good approach for many companies to adopt. 

The report is neatly put together, smacks of professionalism and attention to detail, and  is a true celebration of employees throughout the narrative. Material issues are described over a couple of pages, and page references guide you to the detailed disclosures.

Results are shared with no holes barred - both the good and the challenging. 

A case study here or there adds a little color.

If there is one suggestion I might make to Impahla for future reporting, it would be to give some external stakeholders a voice. Impahla is a business rooted in the local community, a dedicated supplier to the great PUMA, a significant local employer .... while Impahla tells its story extremely well, the affirmation of external voices would help amplify and reinforce the credibility of Impahla's reporting. However, in my view, Impahla's reporting has been consistently AIMful over several years and I believe, will continue to be so.  

Kathmandu Sustainability Report 2014

GRI G4 core,  63 pages, 3rd report

They say you should never judge a book by its cover. I say you should never judge a Sustainability Report by its photos. But some reports have photos that are just too great to pass over without comment. So it is with Kathmandu. Kathmandu is a leading retailer of outdoor clothing and equipment with 146 stores in Australia and New Zealand and 4 in the UK. The company employs just over 2,000 people. This is Kathmandu's third report. Here are some of the photos.

Although I would have like to have seen a slightly more direct link between material issues and performance indicators reported, Kathmandu works well with the GRI G4 framework in a focused 32 page report, covering its stated material issues.

An overarching issue for any apparel manufacturer is always supply chain management. Kathmandu deals with this well, with full description of the company's approach and strong relationship with a key supplier, while admitting that, at the other end of the spectrum,"we acknowledge that we have suppliers who are not achieving high standards and we are striving to increase awareness and assist them to build capacity." The challenges are by no means simple and Kathmandu transparently related an incidence of child labor in a new proposed factory as a young girl aged 15 had falsified her age and an older relative had provided verification. Kathmandu details its approach to instances of this nature - things, I suspect, that plague every manufacture using outsourced operations. Kathmandu's report also provides short case studies and outcomes of environmental activities in a way that is easy for us to understand.

As short, focused, materially relevant reports go, Kathmandu is definitely on the AIM scale. 

Olam Corporate Responsibility and Sustainability Report 2014

GRI G3.1, Application Level C, 58 pages, 7th report

Olam International is a leading agri-business operating from seed to shelf in 65 countries, supplying food and industrial raw materials to over 13,800 customers worldwide with a team of 23,000 employees. Key raw materials supplied include cocoa, coffee, cashew, rice and cotton. Olam apparently means "transcending boundaries" - though I am not sure in which language - and this theme comes through in Olam's reporting. Taking a landscape view of the overall value chain is a good place to start. 

Olam's 2014 report is a simple GRI G3 Application Level C affair. Or so it seems. In reality, it's an exceptionally cleverly written and designed, compact account of how Olam is making a difference in 7 key sustainability focus areas, presented as case studies in the report and exemplifying Olam's holistic sustainability approach.  

In each section, we are provoded with relevant context, Olam's actions, connections to other parts of the value chain and outcomes.

The narrative is short but the message gets through. Definitely Olam has AIMed for an impressive report, demonstrating equally impressive performance.

Simple Green Sustainability Report 2014

GRI G4 core, 55 pages, 1st report

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. I reviewed Simple Green's inaugural 2014 report on my recent post about U.S. first-time G4 reporters.

Simple Green does a nice job of reporting for the first time and using the G4 framework, two achievements rolled into one. As the name of the brand, so the report. It's simple, and it's green. The report takes a value chain approach and uses material issues to drive the reporting content.

The company covers its key sustainability risks in a transparent way over several pages of the report.

External stakeholder voices are represented also throughout the report. 

A very greenly AIMified report.

Telekom Austria Sustainability Report 2013/2014

GRI G4 comprehensive,  92 pages, 12th report

Telekom Austria is the largest telecommunications company in Austria serving many countries in central and eastern Europe with products and services including voice telephony, broadband internet, multimedia services, data and IT solutions. The total group has more than 16,000 employees serving around 23 million customers. I reviewed Telekom Austria's Sustainability Report earlier this year in a post on the CSR Reporting Blog. As I mentioned in that post, Telekom Austria has a history of consistently fascinating and creative reports that reflect an authentic consideration of sustainability issues that are embedded in the way the company does business. As a G4 comprehensive report, this 2013 edition covers a lot of ground in its 92 pages. Materiality drives this report: 

An interesting thing about Telekom Austrian's report, as I wrote earlier this year, is the use of external insights to raise critical reporting questions and perspectives. This is a report that you read to help you think about issues, not just learn about the performance of a specific company. 

Telekom Austria also presents performance in a clear way, showing both continuity and intent.

Overall, AIMworthy performance and reporting from Telekom Austria. 

Tiffany & Co. Corporate Responsibility Report 2013

GRI G4 core, 55 pages, 4th report

I blogged about Tiffany and Co's 2012 Report during 2014, and this one is even more sparkling than the last. Not only because of all the spectacular diamonds.

Tiffany's report is as elegant in narrative style as it is in design. The story of diamonds is well told, with responsible mining, as you might have guessed, being the number one issue that is addressed comprehensively in this report. Tiffany has adopted a leadership approach in its own operations and in the sector over many years. 

What I like about Tiffany's reporting is the detail provided regarding sourcing of different raw materials, many of which have been controversial at some point and/or remain so today. Tiffany explains its sourcing, auditing and traceability processes, and its corporate position for each. 

A full set of focus areas is included in the report - following a materiality assessment - although it is not clear to what extent specific engagement with stakeholders shaped this approach, or whether it was the result of internal analysis of trends, issues and analysis.

Tiffany's 2013 report is, I believe, an AIM-driven report.

Wipro Sustainability Report 2013-2013 

Not GRI (GRI referenced), 6th report, online with 106 page download

Wipro Limited is a global leader in providing IT Services, Outsourced R&D, Infrastructure Services, Business Process Services and Business Consulting. Wipro has a workforce of over 140,000 employees and serves over 950 clients across 57 countries. 

Wipro's 2012-2013 Sustainability Report is not just a report, it's an entire education. Telling the story of the migration patterns of butterflies on journeys which includes Wipro's biodiversity-friendly designed campus in Bangalore, Wipro likens the path of sustainability to their butterfllies' journey - transformation, tenacity and endurance. "The sustainability journey is similar and progress happens in small and often invisible steps. We think that every such step, every movement forward is important . Eventually the actions and thoughts of the many will add up to a critical gestalt, a point of significant inflection. The butterfly’s journey symbolizes a spirit of commitment to its future generations in the face of severe odds. It is to this spirit that our sustainability report this year is dedicated." That's probably the most inspiring sustainability report opener that I have seen this year, or even ever. It's a fabulous story, not plucked only out of Wipro's imagination, but an example of a sort of miraclulous and uplifting event that touched the hearts of the Wipro folks. It's really nice. You should read the butterflies' story. 

But that's not all. Wipro's sustainability report is also a reading list. It seeks not only to inform but to educate, commemorate and inspire.

With excerpts from classics that represent the landmarks of the sustainability movement, beautifully designed, this report is an entire Environmental Sustainability Education Program.

But don't get distracted by Wipro's creativity and respect for the great sustainability thinkers of our time. Wipro apparently has some sustainability thinkers of its own. The report is well constructed, referencing, not conforming, to GRI, but nonetheless, applying a material core. Not one, but two. Wipro splits its materiality analysis into two - actually, this is an interesting approach - and present smaterial issues for both econo-environmental and social aspects.

Wipro's report contains an overview of business and sustainability megaforces that provides important context and perspective. This is under the theme of the Sustainability Mobius.

I am not sure if I should be embarrassed to admit that I had no idea what a mobius is. How many people know that?  Anyway, now I know that it's something that usually looks like this:

And I also know why it's relevant: "..... complex, interrelated issues and our fragmented and siloed societal structures have largely been incapable of responding to these with a greater sense of urgency. The lines are blurring between all the stakeholders, their interests and business – with no clear start and end points much like the mobius strip."

Wipro presents achievements in the reporting year and objectives for the future - mainly qualitative but some quantitative targets. It's all very clear and very orderly and very meticulously done. If there were to be one suggestion I would make to Wipro for future reporting, it would be to raise the bar a little beyond operational activities in favor of greater emphasis on external impacts and contribution through core business accounting for the transformational change the company drives in society at different levels. Even so, this report has AIMed for much more than a report, and it's an absolutely deserving member of the 2014 Top Ten club.  

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I hope you enjoyed this overview and that you have met some reports that you hadn't seen before. I hope these reports bring inspiration for other reporters. Using these reporting ideas is never quite as simple as copy-pasting, because every company has a unique message, style and tone. However, some of the Top Ten reports may help you look at things in a different way as you undertake your first, or next, reporting cycle in 2015. Good luck!

NB: As usual, to be fair, I did not include reports that I have worked on or from other clients or affiliate or parent companies. If I were to do that, I wouldn't have room for any other reports ha-ha. But it also shows you how magnanimous we are on the CSR Reporting Blog :)) Gotta give 'n take a little in life, right? For reports I have worked on in 2014, see the Beyond Business (new improved) website.

Happy Reporting in 2015, everyone! 
Here's to the next Top Ten.

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). Need help writing YOUR Top Ten Report in 2015? Contact Elaine: info@b-yond.biz