What's your perspective on reporting?

What's your perspective on:

• The current state of sustainability reporting?
• The number of material issues that a company should report on?
• The quality of assurance processes?
• The credibility of sustainability reporting?
• The way reporting has evolved over the past few years?
• Voluntary versus mandatory reporting?
• Global versus local reporting?
• Whether the GRI is a good reporting framework?
• Whether G4 will make things better or worse?
• Integrated reporting?
• The target audience for sustainability reports?
• The frequency of reporting and ESG disclosure?
• Who should provide sustainability report assurance services?
• And more...

Have you got perspectives on all of the above? Because, if you haven't, the new global CR Perspectives survey brought to you by CorporateRegister.com will help you develop some. And not only that, after presentation of the survey at a big-splash event on 29th April in London, at which time the results of CRRA '13 will be announced, you will be able to  get a free copy of the entire survey results. And by that time, if you haven't developed some perspectives of your own, you can borrow someone else's!

CR Perspectives is a global survey about my favorite subject: sustainability reporting. And it's happening just at the right time, as sustainability reporting is in a state of flux and promises to be even more flux-ish during 2013. The survey is structured around three recurring themes of  the CorporateRegister.com approach: Content, Communications, Credibility.

The planned launch of the new generation GRI Framework "G4" in May has raised some heated debate, based on the exposure draft which was published last summer. There are those who say it's going to frighten off reporters. "Unfortunately, in our estimation, if the G4 Guidelines were implemented as currently drafted, undue complexity and reporting burden would be the order of the day." That's a quote from Aleksandra Dobkowski-Joy, a voice which counts in the world of sustainability. On the other hand, Dwayne Baraka, of the influential BITC in the UK, says, "I think that on balance the changes are a step in the right direction."   And summary discussions from G4 workshops in Australia gave the following perspective: "The overall impression was that the proposed changes to the reporting framework were ambitious, optimistic and a leadership challenge for organisations. It was also perceived that the changes represented considerable barriers for smaller organisations ...." With just two months to go until all is revealed, what's your perspective?

Integrated Reporting is also chugging along and is a concept which splits the reporting world.  You can provide your input to the IIRC Consultation Draft until mid July this year and take a look at some examples of how companies are approaching Integrated Reporting.  There are some who say it's all a big puff of hot air and it will make very little difference to the way we evaluate and respond to corporations. See this comment from Lorraine Smith of SustainAbility: "If the desired effect of reporting is to enable change, then, it would seem the jury is still out as to whether integrated reporting will accelerate change or merely rephrase the degree to which change has (or hasn’t) taken place." On the other hand, there are those who say integrated is the only way to go. Read this, from the Global Accounting Alliance. "When authentically implemented, integrated reporting offers measurable bottom line returns and ‘future-proofs’ companies."  Ahemmm. Please wait till I pick myself up from the floor. What's your perspective?

I believe the jury is still out on whether assurance has helped assure stakeholders of reporting credibility. First, the uptake of assurance is still low, and the quality of assurance varies. Many of the false claims in sustainability reports are actually found in reports that have been assured by an independent third party. Is it time to abandon assurance in favor of a new system? At UPS, they love assurance. But that's mainly for its internal benefits. Joss Tantram goes even further, saying: "I have tended to believe that a report without an independent assurance statement is not worth the paper that it is printed on." Ahemmmm. Picking myself up from the floor once again. Does assurance assure? I am not so convinced. What's your perspective?

Then there is the whole debate about single one-document reports (either printed or downloadable as a PDF) versus web-based reports which get updated more frequently than once a year. Should companies move to quarterly reporting a la Timberland? Or is more frequent reporting "inherently unsustainable" .. a "hamster wheel which never stops spinning"... at the prominent CSR commentator Mallen Baker argues. Well, I have a perspective on that. Hint. If sustainability is a long term thing, why would I get all excited about quarterly reporting? What's your perspective?

What is the best framework for Sustainability Reporting? ISO26000, although not a reporting framework, and not a certification standard, is now being adapted to provide structure for sustainability reports. BT indexes its Better Future Reporting against the ISO26000 framework. The UN Global Compact has been ramping up its Communication on Progress frameworks over the past few years, providing differentiation and proprietary criteria for reporting against the UNGC Leadership Blueprint.  While there are attempts at alignment, there are substantial differences in approach. What framework really offers best value for stakeholders? Or do we need to go back to the drawing board and, with the benefit of hindsight, start all over again? What's your perspective?

Anyway, that's just a taster. I am very interested to see everyone's perspectives, so I welcome this survey, which I have already completed, adding my perspective, and I hope there will be a massive response so that we get a collective perspective which may help influence how reporting continues to evolve.

Help create a balanced perspective. Add YOUR perspective! Complete the survey here.

elaine cohen, CSR consultant, winning (CRRA'12) Sustainability Reporter, HR Professional, Ice Cream Addict. Author of Sustainability Reporting for SMEs: Competitive Advantage Through Transparency AND CSR for HR: A necessary partnership for advancing responsible business practices Contact me via www.twitter.com/elainecohen   or via my business website www.b-yond.biz  (Beyond Business Ltd, an inspired CSR consulting and Sustainability Reporting firm)

A fabulous first SME report

This week, Ingenious Britain, the UK campaign for small businesses,  published my "Five top tips for growing a more profitable business through sustainability reporting". The headlines are:

1. Dedicate time to addressing the challenge
2. Define what stakeholders expect from you
3. Measure your impacts
4. Develop an action plan
5. Publish and communicate your sustainability report

If you want to see the detail behind the headlines, read the full article here. If you want even more detail (but not too much!), then you might consider investing in my book, Sustainability Reporting for SMEs: Competitive Advantage Through Transparency.

Of course, it all sounds nice on paper, but the practice requires discipline and just a little thought and effort (but not too much!). Here's an example of a great SME reporter which unfortunately I couldn't profile in my book, due to space constraints.

MHPM (MHPM PROJECT MANAGERS INC) is a Canadian SME,  formed in 1989 as its founder, Franklin Holtforster led the construction industry by recognizing the need for independent representation of the owners interest during the design and construction of buildings.  Today, MHPM is a business with 312 employees distributed in 22 offices across Canada, from Pacific to Atlantic coasts, with annual revenues of around $40-50M Canadian dollars.

 

MHPM provides a range of services including Project Management for all aspects of building and infrastructure projects, Advisory Services to help maximize the investment value, efficiency and quality of real property assets, Sustainability Services to help ensure portfolios, buildings and infrastructure are worth more, cost less to operate and are better to work in, and Construction Services for project design, budget development, tendering and procurement of trade contractors, site supervision and project implementation.

At the end of 2012, MHPM published a first Sustainability Report. Congrats!

The report itself is two pages which are information-packed. The first page (pictured above) is an infographic with key sustainability performance for two years, 2010 and 2011, and the second page provides explanations and future targets. There is also an introduction by the CEO, Franklin Holtforster. It's simple, it tells a story of a small business which takes sustainability seriously, and it shows improving performance. It does not have the pyrotechnic-multimedia-bells-and-whistles of big company reporting (though infographic representation is considered state-of -the-art these days!) but it gets the message across. A fantastic example for SMEs everywhere.

Ralf Nielsen, B.Sc., M.E.Des., PMP, LEED Green Associate, the Director of Sustainability Services at MHPM shared their Sustainability Reporting journey with me.

 

Why did you decide to publish a Sustainability Report?

"It was part of a corporate commitment made to our employees and stakeholders in 2009. We are committed to creating a sustainable built environment through advocating for sustainable design with our clients. Creating and publishing a sustainability report allows us to establish a baseline on sustainability performance for the company and communicate this to our clients and employees. It was a natural progression beyond getting our technical staff to gain their LEED AP accreditation and the establishment of Sustainability Services alongside our core business of Project Management. We see communications as a dynamic, on-going element of the relationships we have with our clients and employees.

 

We are using our first report as a vehicle for stakeholder engagement. We are getting input into what they believe is material to MHPM and our industry. This will then shape our efforts on sustainability as well as what we report upon in the future. Unfortunately many believe reporting is an annual thing, when in reality, it should be integrated into the on-going dialogue with our stakeholders and within various levels of our organization but particularly those who have responsibility for employee and client relationships."

 

What have been the key (tangible) benefits/outcomes of reporting for your company? and for you personally?

"It is still early days – our first report was published in the fall of 2012. Reporting in and of itself has limited benefits. Yes, getting the message out is important, but how we actually deliver our work and services, as an advisory and project management company in building design and construction is key. That being said, we have gained insights from employees that will prove valuable to both our internal operations and service delivery. We believe the report has been able to “tell our company” story around sustainability for the first time to all employees in a concise, easy to understand and meaningful manner. We believe this will benefit the company through enhanced employee engagement, recruitment and retention and strengthen our relationship with leading clients."

 

How has reporting empowered the people in your organization?

"Again, it is early days, but we believe that employees are proud to point their key contacts, be it clients, colleagues, personal networks, etc. to the report and say that “I’m a part of a company that is committed.” More individuals across the company are signing up to our internal Green Team initiative that will focus on business operations and employee engagement."

 

What have the key challenges been, especially as a small business?

"Finding the time! It took quite a bit of time to select the right indicators (from GRI) that are relevant to the company and then to begin to collect the data, determine if we can disclose the information (because we are privately held) and then putting it into succinct form for our readers. We struggled to find a balance between writing a lengthy report using volunteer hours vs. a report that was succinct, to the point, but was lean on narrative and qualitative information. We chose the latter, primarily because, as an SME, all hands are focused on sales and delivering to our clients and we can build depth and content in the years to come."

 

What resources did you expend on reporting?

"We allocated a part time student for 1 day a week for four months for our initial data collection. During this phase we had an internal team of 2-3 people work on structuring the report, selecting a graphic designer, writing, conducting analysis, etc. We engaged internal business functions across the company only on an as needed basis. Final sign-off was by the corporate management team and Vice Presidents. All in, it took over a year and a half to compile and publish our first report, using volunteer time from various levels of MHPM. We estimate approximately 400 hours of time across the whole team was required from start to publication launch. We anticipate significant efficiency will be gained in our second report because the reporting tools, networks and framework have been established.

 

We can also point to this first effort to be an investment that can pay off if one of our professional staff is retained for an additional year, or if an additional client is gained by the company, or if an employee spots business process efficiencies, or if it enables one of our staff to convince a client that a high performance sustainable facility is a sound investment."

 

Your top tip for SME Reporters?

"Determine your materiality early and then select your indicators. This will help guide everything else. But don’t deliberate too long as you can get caught in reflecting internally with little progress. Drawing a line in the sand and get on with the report – that is key. The first report won’t be perfect, but you can build upon it, use it in dialogue, communications, conversation and use the feedback to shape the journey and your efforts.

 

Finally, I would say that sustainability reporting is only a means to tell stories. What are meaningful stories to stakeholders, particularly for clients and employees, comes down to the aspects that are material to them. For service oriented businesses such as ourselves, we need to demonstrate how we contribute and advocate for a more sustainable built environment. We are learning what this really means to our business practices, services and processes. It will be a journey and one that will be informed as much by what is material as by the markets and industry we work in."

*******

 

Fabulous insights and good advice from Ralf and a testimony to both the challenges and immense value that reporting brings, yes, even for SMEs. I would like to thank Ralf, and MHPM, for sharing their inspiring story and wish them good luck on the ongoing journey. I am sure reporting will get easier with successive reports and will demonstrate its value in many ways.

 

Do let me know if you have a good SME reporting story - SME's don't often get good exposure - and the CSR Reporting Blog will be very happy to help spread the message.

 

Also, if there are SMEs out there who need some assistance with getting their reporting off the ground - thinking, planning, information gathering, deciding on indicators to measure, writing  or any kind of support -  from one SME to another, Beyond Business Ltd will be happy to offer our services ... at prices SMEs can afford!

elaine cohen, CSR consultant, winning (CRRA'12) Sustainability Reporter, HR Professional, Ice Cream Addict. Author of Sustainability Reporting for SMEs: Competitive Advantage Through Transparency AND CSR for HR: A necessary partnership for advancing responsible business practices Contact me via www.twitter.com/elainecohen or via my business website www.b-yond.biz (Beyond Business Ltd, an inspired CSR consulting and Sustainability Reporting firm)

Behind the Report Behind the Brands

The new Oxfam Report Behind the Brands is a must-read. It's only just been released and respected commentators such as Marc Gunther and Jo Confino of the Guardian have already published their insights with spectacular headlines such as "big food is failing the poor" and "multinational companies are failing on CSR goals".  Well, we sort of knew that before the Oxfam report, but Behind the Brands pulls everything together quite spectacularly, highlighting the issues and challenges that large food companies face and/or create, brand by brand, punch by punch. The report is Oxfam's move to get the world's ten largest Food and Beverage companies to sit up and shape up, and work harder to create a more equitable food system and a more sustainable future.

The Oxfam narrative reads a little like a sustainable business horror story. There's not much that's new, but  it's combined in a very effective round-up of the issues that have been on the sustainability agenda in the F&B sector for some time now.   "For more than 100 years, the world's most powerful food and beverage companies have relied on cheap land and labor to produce inexpensive products and huge profits. But these profits have often come at the cost of the environment and local communities around the world, and have contributed to a food system in crisis." With lack of supply chain transparency, (almost) unrestricted greenhouse gas emissions, water scarcity, food waste, exploitation of small-scale farmers, the impact of agriculture on climate change, obesity, diabetes and other effects of sugary, processed food  forming a long list of negative impacts of this sector, we would all be forgiven for going the route of  Neil Boorman in the "Bonfire of the Brands".

Oxfam has little good to say about the food and bev giants, which makes me wonder if this report would not be just a little more persuasive if it were just a little more balanced. Sure, we all know the nasty, negative, effects of big business. That's why the sustainability movement has become what it is. But if we go down the track of painting all business with a big black brush, we may be at risk of overlooking the many positive benefits of economic development and quality of life which these companies have also been responsible for creating. Transparency, accountability, responsibility should not be trade-offs, I agree, but in acknowledging what's not been done, perhaps there should be room for acknowledging what has been done.

By now, you will all have seen that Unilever, Nestle and Coca Cola make it to the top of the list, with highest-scoring Nestle attaining a 54% result, while General Mills, Kellogg's and Associated British Foods trail the pack with scores below 25%. Kudos to Oxfam for making their methodology transparent - you can download the base data of the research to see exactly how points were assigned and scores developed. This is very interesting.

But here's the thing. The Oxfam Behind the Brand ranking is an assessment of policy statements. It's not an assessment of practice:

"Oxfam's Behind the Brands scorecard assesses, scores and ranks food and beverage companies on their corporate policies and commitments aimed at taking responsibility for the social and environmental injustices that lie within their agricultural operations. Only publicly disclosed policies are considered for the scorecard. ...... Oxfam acknowledges that policies are just a first step toward promoting socially and environmentally acceptable practices, and many companies do not actually enforce such policies within their supply chains."

In the question, for example, of  'Does the company explicitly recognize forced labor as an issue?', every company gets full marks.  In the question  'Has the company declared to seek to improve the role of rural women in their supply chain?', only Nestle, Coca Cola and Mondelez get full marks, because they have a policy declaration (and not because they have actually done anything).

I checked out the reference supplied in the Behind the Brand data file as Nestle's response to this question about rural women, and the link goes to a page on the Nestle website on rural development, in which there is one mention of women in one paragraph: 'Long term, we seek to increase the training and support we provide to farmers. In general, such input – focused mainly on the efficient use and conservation of water, land conservation, access to clean water for farming communities, improving the status of women in rural communities and improving education – leads to greater yields of higher-quality and more varied crops for Nestlé, and increased income and higher standards of living for our suppliers'.      Better than nothing, I suppose, but women seem somewhat buried in a range of other priorities.

I guess my point is that I have learned to value action over declaration. In many ways, making a declaration is easy. Backing up that declaration with a set of strategies, policies, plans, goals, targets, metrics, and transparent reporting is not so easy. Standing by your policy declarations in times of conflicting priorities is even more not so easy. We are still in an age where companies are not held to account for the way they have implemented all their policy declarations. Even if all companies have the same policy, where does that leave our sustainable future? In the same place as it is now. Even if they all get 100% scores according to the  Behind the Brands methodology, our global sustainability score may not be any different. This is how Oxfam puts it: "According to the scorecard rankings, Nestlé and Unilever are currently performing better than the other companies, having developed and published more policies aimed at tackling social and environmental risks within their supply chains." Performing better ... having published more policies? Excuse me. Are we on the same planet?   

The question is to what extent we can expect this focus on policy development to be a real precursor to practice development? I'm a reasonable person (mostly, when I have had my daily dose of ice-cream). I tend to agree. So I applaud Oxfam for their massive investment in this research and for highlighting how companies are speaking about sustainable development. Certainly, now, if we want to, we can go and check if the big F&Bs are walking the talk or just publishing it on their websites and in their Sustainability Reports.

But, in reading the Behind the Brands report, let's be clear about what it actually is. An assessment of policy. Not of practice. Not of impacts. Not of sustainability. Not something which would cause me to change my choice of brand or join Neil in putting my Pepsi Max on a bonfire. Perhaps Oxfam might consider a next report that ranks the actual practices of F&B companies against their stated policies and assesses the impacts they create. They could call it "Because of the Brands".

elaine cohen, CSR consultant, winning (CRRA'12) Sustainability Reporter, HR Professional, Ice Cream Addict. Author of CSR for HR: A necessary partnership for advancing responsible business practices  and Sustainability Reporting for SMEs: Competitive Advantage through Transparency. Contact me via www.twitter.com/elainecohen on Twitter or via my business website www.b-yond.biz  (Beyond Business Ltd, an inspired CSR consulting and Sustainability Reporting firm)

Four sustainability reporting trends

The Carbon Disclosure Project (CDP) has become much more than a carbon disclosure project, now combining climate, water and forest footprints into one holistic natural capital platform, the world's largest and most comprehensive natural capital disclosure system. The 2012 Forest Footprint Annual Review was recently published, the product of the 2012 merger between the FFD (Forest Footprint Disclosure Project) and the CDP.

 

Nigel Topping is the Chief Innovation Officer of the CSP and he will be speaking at the Smarter Sustainability Conference on Tuesday 5th February in London on the "Impact of natural capital accounting on sustainability reporting - experiences learnt from climate change reporting". Nigel architected CDP's ambitious innovation program, including extending into Supply Chain, Water and Cities and is responsible for CDP's technical roadmap, IT systems, major partnerships with Accenture, SAP, Microsoft and Bloomberg, is a board member/advisor to CDSB, SASB, CBSB and sits on the external sustainability panels of SAP and P&G.

 

What does the Chief Innovation Officer of the CDP actually do? According to Nigel, "Innovation is the hard work of implementing ideas...not the cool work of coming up with ideas. We don't have a problem with ideas - we always have far more ideas that we have the capacity to implement at any given time. What's no less important is the ability to implement successfully those ideas we want to progress." Nigel has had an interesting background. He started off in Manchester, UK, in manufacturing and was running his first factory in his early 20s. He then spent time in Greenland and Patagonia on expeditions, seeing at first hand the evidence of climate change. Joining the CDP around six years ago, he was driven by a real passion to use the power and creativity of business to address huge global challenges. He has put this passion to good use at the CDP, driving several important programs over the past few years.

 

One of the things that will make Sustainability Reporting smarter, according to Nigel, is "not having 75 different standards". Convergence is definitely the name of the game, and "we are seeing three forces at play: the extension of the scope of climate change to become a more holistic approach to sustainability - more things are becoming more material; a deepening of understanding that is sector specific - you can't easily compare a utility company with a general retailer; and the emergence of technologies which help classify and process data in a way which will enable it to be used by investors and others (xbrl taxonomy)." Nigel has encouraged partnerships with the CDP to get everyone on board, and the CDP has been engaged in extensive training to help companies work towards clear standards, increase their capability to collect data  and promote assurance of data.

 

I asked Nigel about the issue of data quality and whether this is of concern, especially given recent issues raised about false claims in Sustainability Reports. Can the CDP be such a great holistic platform without being confident that the data that is disclosed is accurate? Nigel said: "Quality of data is a global issue. There is a reciprocal journey between the provision of data and the use of data. The more people use the data, the more issues are found and get fixed. We have been of the view that it important to get everybody on the train, which is why we have invested significantly in training and educating. We have tried to push assurance, and last year, the assurance level among the global 500 increased by some 40%. We have encouraged this through the CDP by offering higher points for assurance. There are many debates and issues about assurance, not everyone applies assurance to the same standard etc. But the experience is that getting on the train and starting to disclose inevitably supports improvements in the data quality over time."

 

Nigel summarizes with four key influences which will contribute to the evolution of sustainability reporting.

• Convergence - of standards and approaches.
• Holistic reporting - it's all interconnected.
• Sector specificity - ensuring that disclosures are aligned with sector expectations and impacts
• Reporting formats - which need to be tailored to different audiences including investors.

 

Disagree? Agree? Want to know more? Come and hear Nigel and have the opportunity to engage with him in London on 5th February at the second annual Smarter Sustainability Reporting Conference.

 

 

elaine cohen, CSR consultant, winning (CRRA'12) 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  (Beyond Business Ltd, an inspired CSR consulting and Sustainability Reporting firm)

See you in London for two exciting thngs ?

I will be in London this coming Tuesday, 5th February at 76 Portland Place doing two very exciting things.

The first is chairing the Smarter Sustainability Reporting Conference, which I blogged about here (reasons not to come :)), and here (with Alexandra Palt of L'Oreal) and here (with Carolyn Panzer of Diageo).

Loads of people (a lot more than last year, probably due to the rave reviews:) ) have confirmed their participation to hear and engage with the latest line-up of worthy  speakers including:

• Michael Beutler, Sustainability Operations Director at PPR
• Carolyn Panzer, Sustainability and Responsibility Director, Diageo
• Alberto Andreu Pinillos, Global Managing Director of Public Affairs, Telefónica
• Alexandra Palt, Director, Corporate Social Responsibility and Sustainability, L'Oréal
• Dr Steve Waygood, Chief Responsible Investment Officer, Aviva Investors
• Nigel Topping, Chief Innovation Officer, Carbon Disclosure Project
• James Farrar, Vice President Sustainability, SAP
• Katie Buchanan, Head of Sustainability & Reporting, Virgin Media
• Barry Clavin, Ethical Policies and Sustainability Reporting Manager, The Co-operative Group

If you haven't booked your place..... you have a few more minutes left (email me for discount).  I would love to see you there. It's gonna be fun.. and provocative ... and interesting ... and informative... and really really worthwhile. My promise.

The second thing is launching my new book. Yeah! It's called Sustainability Reporting for SMEs: Competitive Advantage through Transparency and I believe it's the first book specifically targeted at reporting for SMEs.

This is what we are saying about it:

"Develop the transparency habit and enhance the bottom line… Elaine Cohen points you to the actions and tools that will make the biggest difference to the sustainability impacts of your company, and a process for reporting that adds value which is much greater than the printed or online report itself. This book will help SMEs develop 'the transparency habit' so that they both make more money and contribute more proactively to the sustainability of our society and economy. It is vital reading for SME owners and managers, entrepreneurs, business and sustainability students and teachers, and consultants. Sustainability managers in larger organisations will find this book helpful in assisting their organisations manage their supply chains which undoubtedly include several SMEs."

 

As you can see, this is part of the DoShorts series of books which is a fascinating collection of short sharp shots on focused sustainability subjects, meant to be read in 90 minutes - concise ebooks for busy professionals. When the DoShort team approached me to write this book, I was delighted to be prodded in the direction of doing something I had been thinking of for quite a while. More about reporting, and SMEs and books later... in the meantime, you can see this book for the very first time in print at the Smarter Sustainability Reporting Conference next week.

 

As I said, two exciting things!

elaine cohen, CSR consultant, winning (CRRA'12) 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  (Beyond Business Ltd, an inspired CSR consulting and Sustainability Reporting firm)

Just how hard is it to disclose Carbon Emissions? Ten Examples.

As we go into the home straights with the CRRA '13 voting period nearly over (did you vote? if note, you can do so here!), it's time to take a look at the shortlist in the Best Carbon Disclosure category.

As with the other categories, there are 10 shortlisted reports.

Reports in the Best Carbon Disclosure Category

Alcatel-Lucent: Corporate Responsibility Report 2011
Banco Bradesco SA: Sustainability Report 2011
British Sky Broadcasting Group plc: Bigger Picture Report 2012
Coca-Cola Enterprises Inc : Corporate Responsibility & Sustainability Report 2011/2012
Gas Natural SDG SA: Carbon Footprint Report 2011
Hess Corporation: 2011 Corporate Sustainability Report
Hydro Québec: Sustainability Report 2011
Hyundai Engineering & Construction Co: Sustainability Report 2012. We Build Tomorrow
Royal Dutch Shell plc: Sustainability Report 2011
Xstrata plc: Sustainability Report 2011. Creating shared value

The category description for Best Carbon Disclosure is simple: "Which report gives the best disclosure of the organisation’s carbon emissions, the implications for climate change, and the mitigation measures taken? Check for policy, quantified data, targets."

Carbon emissions disclosure is a rather broad topic. As you all know, the GHG Protocol divides Carbon Emissions into three Scopes: 1 (emissions we generate), 2 (emissions we buy that someone else has generated), and 3 (emissions generated by someone else while working on our behalf).

 

My acid-test is how easy it was for me to find the answer to three simple questions:
What are the absolute Scope 1, Scope 2 and Scope 3 emissions for this company in 2011?
Has this company generated more or fewer absolute carbon emissions during the past 5 years?
Does this company have a target to reduce carbon emissions during the next 2-5 years?

Interested?  Let's see what we found:

XSTRATA: ease of getting to the data: 5

• Reports all three Scopes and overall total.
• Generated more emissions over three years in all three scopes. Scope 3 is due to customers combusting more coal. Scope 1 and 2 increases are not explained.
• I could not find a specific emissions related target 2012 and beyond.

ROYAL DUTCH SHELL: ease of getting to the data: 6

• Reports on Scope 1 and Scope 2  and makes a comment about Scope 3 "we estimate that the CO2 emissions from the use of our products were around 570 million tonnes in 2011." (For perspective, Shells Scope 1 and 2 emissions were 75 million tonnes)
• Generated fewer Scope 1 emissions versus 2010 but more than 2009; Scope 2 emissions remained the same as 2010 but more than 2009.
• I was not able to locate a specific target for improving carbon emissions performance.

HYUNDAI ENGINEERING: ease of getting to the data: 8

• Reports on Scope 1, 2 and 3 with three year data.
• Total carbon emissions reduced in 2011 versus 2010 and 2009
• Hyundai Engineering has quantified targets through to 2020 and a Green Management roadmap which shows how to get there.

HYDRO QUEBEC: ease of getting to the data: 7

• Reports on Scope 1 and 2 with four year data.
• Total emissions increased versus prior year.
• I was not able to locate a specific target for improving carbon emissions performance.

HESS CORPORATION: ease of getting to the data: 4

• Reports on Scope 1 and Scope 2 emissions with three year data and a one year estimate for 2011 for Scope 3 product use emissions. "We estimate our 2011 Scope 3 emissions from product sales at 35.7 million tonnes of CO2e in 2011, of which approximately 45 percent was related to product use in mobile sources and 55 percent to product use in stationary sources."(For reference, Hess's total emissions in 2011 were 5.1 million tonnes CO2e). In addition, Hess mentions a further 230,000 tonnes of emissions due to third party trucking and logistics and a further 22,700 tonnes for employee travel. It wasn't that easy to understand all of this without really really concentrating.... 
• Absolute GHG 2011 emissions were higher than in 2010 or 2009.
• Hess has a GHG intensity (not absolute) target reduction of 20% by 2013 using 2008 as  a baseline.

GAS NATURAL: ease of getting to the data: 4
This is actually a standalone carbon footprint report so you might expect it would be pretty focused, although the volume of data actually did not make it easier to locate specific numbers.

• Reports Scope 1, 2 and 3 for three years, absolute emissions
• 2011 absolute emissions were higher than 2010 
• There is a Scope 1 and 2 target for 2014 carbon emissions reduction

COCA COLA ENTERPRISES: ease of getting to the data 6

• Reports Scope 1,2 and 3 for 5 years
• Absolute emissions reduced each year.
• Coca cola has a target covering 13 years: "Our new target is to halve the carbon emissions involved in making a liter of product between 2007 and 2020 by driving efficiencies in our facilities and investing in renewable energy."

BRITISH SKY BROADCASTING GROUP: ease of getting to the data 6
I had to use the GRI Index on the British Sky website to get to the Carbon Emissions data, as the direct navigation route wasn't all that clear. Once there, I found nicely presented data. Here is the page link to the online report section - this data is not included in the PDF summary report.

• Reports Scope 1, 2 and 3 for  four years
• Absolute gross emissions reduced each year versus prior two years
• Target: 25% reduction in gross CO2e emissions (tonnes/£m turnover) by 2020 versus a 2008/09 baseline

BANCO BRADESCO: ease of getting to the data 0
No data was included in the printed download report, and I had to use the GRI Index which directed me to the Banco Bradesco Banco de Planeta website for this. On the English website version, there is an interactive data chart that displays data in graphs. After trying to play around with this for a while, to actually get a view as to whether the carbon performance is improving or otherwise. Also the data charts only include 2010, when the reporting period is noted as calendar year 2011. Therefore, not only was this a major effort to get to the data, I found there is actually no data. I didn't bother then looking for targets.  

ALCATEL LUCENT: ease of getting to the data: 9

• Reports detailed Scope 1, 2 and 3 data for one year, with a visual overview since 2008 of total emissions
• Absolute emissions have reduced versus prior year.
• Sets a detailed emissions reduction target and pathway to achieve it

Note: One thing I didn't check was whether the above companies reported date for 100% of global operations, or only partial operations. Obviously, I also did not make an assessment of the carbon management performance of the reporting companies, just the way they reported.

What can we learn from all of this ?

Carbon emission data is mostly not easy to find:

My non-scientific ease-of-getting-to-the-data measure (scale 0-10, where 10 is best) shows that the range is between 0 and 9, with most companies coming out somewhere in the  middle. Even though companies use the GRI Framework, and nine of the ten reports above do so (including six at A+ level), it is still not easy to go directly to the data and understand how the company performance is actually trending in a consistent and easy way. While the GRI Index is useful as a fallback, I don't want to have to work through a Sustainability Report indicator by indicator. I want to find the right section in the content index and navigate directly to the page. In this sense, the Alcatel-Lucent hyperlinked PDF report was the easiest and most gratifying in terms of looking for carbon emission data and finding everything I wanted quickly and efficiently. Companies need to get better at presenting data in reports in a way which makes them easy to navigate. Readers do not have patience. This is the age of instant. If I don't find the data in an instant, I am off. Banco Bradesco take note.

Scope 3 is catching on:

In these ten examples, most companies addressed Scope 3 emissions in some form, even if they have only been able to estimate data at this stage. This is a good development, as we know that for most companies, this is the significantly bigger area of opportunity and impact. The new G4 guidelines, if launched as proposed, require Scope 3 reporting. Anyone who's not considered that yet would be advised to start doing so.

 

Target setting is patchy:

Only four of these ten companies actually specified an absolute emissions reduction target. A few more companies specified intensity targets. However, I always say that the planet doesn't care about intensity. Companies should commit themselves to a specific absolute emissions  reduction target. Making a public commitment is key to managing performance accordingly.

 

 

Finally, voting for CRRA'13 ends soon (officially at end January) so please vote and give the companies that do it best a little encouragement! Vote here! 

elaine cohen, CSR consultant, winning (CRRA'12) 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  (Beyond Business Ltd, an inspired CSR consulting and Sustainability Reporting firm)

Humor in Crisis: Tesco on the Grill

While researching this article for CSRwire's Talkback blog, on the story about 29% of horse DNA found in frozen "100% beef" burgers sold by Tesco (and some other retailers), I was looking through the Tesco Facebook page, which has now turned into probably the biggest respository on the internet of horse jokes. Despite the sad failure of Tesco to deliver on it's promise of quality, safety and integrity, this page is (sadly) very amusing. As a therapeutic respite from the daily grind, I thought you might be interested to see some of the jokes that are flying around (unedited, except for punctuation here and there, plus my links to references that not all may be familiar with). The creativity and humor in adversity is quite something to see. And I only managed to scan about 1,500 of the thousands of  recent comments on the page. Apologies in advance if this offends horse-lovers. I couldn't help smiling even though I love horses and really, it's not funny at all......

Patrick Sharkey: Tesco is giving away treble points for petrol and burgers in a promotion called "only fuels and horses"
Emily Stewart Can I have a horse to go, please?
Michael Ryan: An awful dose of the trots
Luka Cusick Knight Your horse burgers are bad... You should try quarter pandas
Serge Warner: Have Tesco considered stocking Red Rum and Raisin ice cream?
Rach Best: Tesco, your burgers gave us the gallops
Simon Tucker : I was in the Tesco cafe ordering my food and the waitress asked if I wanted anything on my burger, So I had a fiver each way.
David Turmon Griffiths: Gotta say beefburgers dont make very good horses d'oevers
Michael Sharp: Is this a case of Tesco failing to "meat" their obligations?
Tim Stone: A horse! A horse! my kingdom for a horse! Sorry King Richard, the best we can do is saddle you up to a Tesco burger
Jordan Duguid I just feel sorry for the guy that ate a burger and is now in hospital! Don't worry doctors say he's in a STABLE condition
John Fitzsimmons: (Scottish accent) It's neighhh big deal
Tim Stone: I just loaded up my car with Tesco burgers. It has more horsepower now!
Hoffmeister Bear: I heard there may be a problem with Cadburys products - I've heard about something called a Horse Wispa.....
Jodie Young what will I do with this 200 burgers I've been saddled with
Adam Glover: stop Horseing around
Brian Jermaine Mbofana: So does this validate the saying 'am so hungry I can eat a horse' lol
Clare Frances Tesco i thank you this is better than tv for now
Trevor J Coonan the horse has already (been) bolted
Craig-Emily Coldwell White After having one of your burgers earlier my throat is starting to feel a bit hoarse lol
Andrew Ross Don't mean to brag but I'm hung like a Tesco Burger!
Julie Dickson When your labels read "May Contain Nuts" were you talking about pony nuts?
Aiden Pants I've tried Sainsbury's and Tesco burgers and I have to say Tesco wins by a nose.
Tim Stone tesco horseburgers... may contain traces of jockey
Tim Stone i wonder whats in their hot dogs
Maria HD Went to the freezer to check my burgers... and they're off!
Kevan Toner New offer: If you lead a horse to tesco you get a free drink..
Kevan Toner A mate just gave me a present, I unwrapped it and it was a pack of Tesco burgers. Well, you should never look a gift horse in the mouth so I'm not complaining...
Stevie Bee They're just flogging a dead horse here
Ashley Cleaver This apology is not neighly enough, the whole story has made me very saddle.
James Carrigan hay hay, whats all this then,
Nick Spinks Those burgers are a stable diet
Al McKenzie What's in the horseradish sauce then?
Joe Donnellan never mind, the sales are still stable...
Paul Rawson This is nothing compared to donkey meat in the sausages and this is straight from the horse's mouth...
Richard Philip Belcher If you just repackaged them in my little pony brand burger boxes no one would complain... or would they?

Tim Stone removing the burgers from the shelf is like locking the stable door after the horse has bolted

Joshua William Smyth What's the beef

Karen Patten Maybe they were meant for the galloping gourmet

Pia Long What did a Tesco butcher say when it found My Little Pony in the line for slaughter? Every little helps!

lin Skitt I do their new Black Beauty range of Burgers I've read the book I've seen the film now eat the cast.
Anak Rantau You are what you eat. You're all horses now! Haha
Lee Hobbs Tesco Burgers are low in salt but high in Shergar.

Jamie Hynam Traces of zebras found in Tesco barcodes

James Zutaten Tesco value burgers are a clear outsider but they win by a nose
Mike Acton That explains why I always felt like going out for a gallop round the block , after eating burgers for tea....
Gerard Grimalt Has anyone tested the veggie burgers for Uniquorn yet?
Kayleigh Nuray To eat or not eat a Tesco burger? That is equestrian
Rob Carver Tesco own brand = show winning quality
Tim Stone hmmm sea horse in the fish fingers?
Ian Hatfield shame on you tesco, i've just seen a three legged horse
Rob Carver You need to jump some hurdles to get over this embarrassment

Gillian Cookson Nedelcu This '"Ascot" to stop!

Tim Stone ok ok ok no more burger jokes... time to 'rein' it in
Rusty Oxide Modern Nursery Rymes #1.
Horsey horsey dont you stop
Or you'll end up in a Tesco shop
Your tail goes swish, the wheels go round
Giddy up horsey your a quarter pound...

Tim Stone now i know what the acronym tesco means... tesco's equestrian select choice offal, every little helps

Brian Smith Good thing about the horse jokes its stopped all that sick stuff about jimmy saddle. Its gone on furlong enough

David Debbie Pass Neigh lad , it's got me eating carrots now

Steven Ratcliffe They're still on sale in my NEIGHbourhood...

Nicky Nobbs Going to take you a while to get over this hurdle...

Andy Churchill I wonder if the addition of horse meat will help me run quicker?

 

Even Tesco was involved in the horse-jokes fiasco when their pre-scheduled Twitter account tweeted "It's sleepy time so we're off to hit the hay! Talk about from the frying pan into the fire..... sounds like not only Tesco's horseburgers but also Tesco people have been well and truly barbecued... guess this will add a little (equine) flavor to their next Sustainability Report.....

elaine cohen, CSR consultant, winning (CRRA'12) 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  (Beyond Business Ltd, an inspired CSR consulting and Sustainability Reporting firm)