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Reporting on Sustainability

Tonna Okoye September 17,2010

Definition of Sustainability and Sustainability talks History of Sustainability talks and the Triple Bottom Line(TBL) The Global Reporting Initiatives(GRI) and Sustainability reporting The 3 Legged stool of corporate sustainability Why should we care about Sustainability? Case examples of companies· sustainability strategy Guaranty Trust Bank and its sustainability policy Quotes

Professor Emeritus. 1987 The possibility that human and other forms of life on earth will flourish forever -.African Delegate to Johannesburg (Rio+10) .forever -. MIT Enough .Brundtland Commission.for all .John Ehrenfeld.Definition of Sustainability Meeting the needs of the present generation without compromising the ability of future generations to meet their own needs -.

creatures naturally always seek for ways of conserving their life so as to live long Quote: ´When Life is at stake. all other values shrinkµ-Shakespeare. won·t live for long.Sustainability Talks  The talk on Sustainability stems from the natural fact that living creatures primarily value their life and that of their offspring consequently. in Richard III . Therefore. the issue of Sustainability should be treated with the utmost importance that it deserves Proof: Creatures who don·t value their own life.

Rescuers pulled out the baby alive from under the mother·s body. she covered her baby with her own body and died from the exposure.Sustainability Talks A STORY ON MAN·S VALUE OF THE LIFE OF ITS OFFSPRING A Japanese mother during the nuclear bomb attack in Hiroshima in1945 valued the life of her offspring more than her own. and today he is a Canadian citizen living in Ottawa. .

Annan ´The starting point for a better world is the belief that it is possible." .Ross Perot ´Treat the Earth well. It was loaned to you by your children´.Sustainability Talks QUOTES ON SUSTAINABILITY ³We thrive and survive on planet earth as a single human family." -General Kofi A. The activist is the man who cleans up the river." Norman Cousins The activist is not the man who says the river is dirty. And one of our main responsibilities is to leave to successor generations a sustainable future. It was not given to you by your parents.Kenyan Proverb .

Sweden 1983:UN established World Commission on Environment and Development 1987:Brundtland Commission Report -Identified 3 components which are the goals of sustainability: (Environmental protection.In which over 178 governments adopted a plan of action for sustainable development in the 21st century 2002:Third UN conference on Environment and Development.The History of Sustainability Talk 1970: First Earth Day celebration was staged² April 22nd 1972: First UN conference on the Human Environment was held in Stockholm. Economic growth and Social equity) 1992: Rio Earth Summit . South Africa . was held in Johannesburg.

The Triple Bottom Line(TBL) The TBL was coined by John Elkington of ´SustainAbilityµ (UK) for Shell Corporation in 1995 The TBL is a concept that advocates that corporate organizations should organize their operation in such a manner that that it -protects the ENVROMNENT -grows the ECONOMY -encourages SOCIAL EQUITY The Triple Bottom Line is also known as the ´the three pillars of Sustainabilityµ or the ´People . by saving the PLANET from destruction and by making PROFIT . In practical terms it advocates that an organization supports Sustainability by benefiting its PEOPLE.Planet and Profit ´ concept.

consensus-seeking approach It was endorsed by 341 organizations in 31 countries However.The Global Reporting Initiatives(GRI) and Sustainability reporting The GRI is an institution that was formed with the support of the United Nations Environment Programme (UNEP)in 1997 The GRI guidelines refers to a globally applicable guideline for sustainability reporting issued by GRI Presently there is no accounting standards that relate to Sustainability reporting The GRI guidelines remains the world's most used and trusted framework because it was created through a multi-stakeholder. its usage is voluntary .

1 Statement from the CEO on Key events.4 Nature of ownership and legal form.5 Awards received in the reporting period 3.2 Description of key impacts. achievements.2 Primary brands. 2. 2.1 Name of the organization. 2. products or services.The Global Reporting Initiatives(GRI) and Sustainability reporting STRUCTURE OF A SUSTAINABILITY REPORT AS SUGGESTED BY GRI 1. Organizational Profile 2. 2. Strategy and Analysis 1. . risks. and failures during the reporting period and also on Future Outlook on the organization·s main challenges and targets 1.3 Operational structure of the organization. and opportunities 2. Stakeholder Engagement List of stakeholder groups engaged by the organization.

and services on biodiversity Emissions of ozone-depleting substances and waste management Total number and volume of significant spillage Total environmental protection expenditures and investments 4.3 Social Performance Indicators Total number and rate of employee turnover Percentage of employees covered by collective bargaining agreements Rates of injury. and absenteeism. age group . Development of infrastructure provided primarily for public benefit 4. lost days. capital providers. and number of work related fatalities Diversity and Equal Opportunity such as breakdown of employees according to gender. products.The Global Reporting Initiatives(GRI) and Sustainability reporting 4.1 Economic Performance Indicators Economic value generated and distributed to the employees.2 Environmental Performance Indicators Energy and resource consumption and savings Impacts of activities. occupational diseases. community(donations) and the retained earnings Significant financial assistance received from government. Management Approach and Performance Indicators 4.

Jobs.Planet Ecosystem-efficiencies Ecosystem-effectiveness Equity .People Employees Community / Culture World . Taxes Products Services Environment .The 3 Legged stool of corporate sustainability Corporate Sustainability = Environmental Protection + Economic growth + Equity(social equity) ´Triple Bottom Line (TBL) = 3Es = 3Psµ Economy .Profits Growth.

will take their revenge. for in exploiting their presence we are diminishing our future." .we have borrowed it from our children. in the end.Why should we care about Sustainability? Though Sustainability is an ethical issue that provides a VOLUNTARY clear guide to the way humans should act.Marya Mannes "We have not inherited the world from our forefathers . the following quotes point out the need for us to have Sustainability at the centre of our mind ³The earth we abuse and the living things we kill will." ² Kenyan Proverb .

Creating new revenue opportunities -When a customer is choosing between your products and services versus your competitors' your sustainability story can tip the balance«««  Increasing innovation ² It drives Innovation for resource and energy efficient products. ²It helps in wasting less and making responsible decisions about how to operate Risk mitigation. -The sustainability lens presents a new way of looking at forecasts and risks -Wise investors look for companies with responsible business practices that reduces risks. services and process Enhancing employee development and retention .Why should we care about Sustainability? SUSTAINABILITY CAN HELP IN: Cost cutting.Helps in avoiding the costs associated with finding and training new employees(It·s no secret that the current generation of employees desire employer that shares their values) .

Why should we care about Sustainability? SUSTAINABILITY IS NOT A FAD OR AN EXERGERATION BECAUSE: The Climate and Energy Crisis is permanent. Banks and Economists factor climate change and energy crisis in risks and rates decisions Mainstream media is on board-regular ² With regular in-depth coverage Politicians are reacting Cleaning technology is changing the game .Not going away forever Mainstream Investors.

K buy green (Globescan and McKinsey Study. but only 10% actually did ‡ 2008: 33% of consumers in U.S and U.S and U. 2008) ‡ Though this risk is not yet a key risk in Africa .Why should we care about Sustainability? Risk of Losing Awakened Consumers ‡ Until 2006: 70-80% of consumers in U.K said that they were switching to ´greenµ companies.

com survey. Nov 07) 83% of employees in G7 countries say company·s positive CSR reputation increases their loyalty (GlobeScan 2006) .Why should we care about Sustainability? Employee Risks 40% of MBA grads rated CSR as a an ´extremelyµ or ´veryµ important company reputation measure when job hunting (Hill & Knowlton Jan 08) 92% of students and entry-level hires seek an environmentally friendly company (MonsterTRAK.

Cost of climate change mitigation: Would be 1% of annual global GDP by 2050 if we act now.Why should we care about Sustainability? Warnings from World Economists In the Stern Review Report of Oct 2006. Nicholas Stern Quantified the following warnings on Climate Change : 1.5-20% if we act later Benefits of $2. But. . Former World Bank Chief Economist.5T if we act now . global depression if we do nothing 2. But.

Why should we care about Sustainability? Global Recognition of the need to produce Sustainability reports Sustainability Reports per Country 19 .

which ensures public awareness of Nike·s business practices  Transparency 101 also monitors its factories in each country to make sure its practices follow Nike·s code of conduct  Nike is phasing out the use of PVC and other harmful chemicals in its products through work with William McDonough  Created the ´Reuse a Shoeµ.bsdglobal. examples of companies· sustainability strategy Nike  Created a ´Transparency 101µ Program.asp?id=81 20 . a program that recycles shoes  Uses organic cotton in some of their clothing  Has certified its Oregon buildings in an effort to decrease energy use Source: The BSD Global website.

geocities. charging $10 for 8 hours of service  Truck owners also save as much as 40% on fuel costs Source: Green Gazelles website h Http://www.  This Represents 2.Case examples of companies· sustainability strategy IdleAire Technology Corp.htm .3 million long-haul trucks in US waste 4. of diesel annually when drivers leave engines idling when resting. gals.6 % of all imported oil  Idle Aire created a technology that allows trucks to heat and cool their cabs without idling their engines. thereby reducing the amount of fuel used and emissions released  Idle Aire installs individual heat and air units above parking spaces at truck stops.

Guaranty Trust Bank and its Sustainability Policy We have an Environmental and Social Management System(ESMS) which serves as our Sustainability policy document However. And other Sustainability issues . there is currently a draft amended ESMS policy document recommending that an environmental and social due diligence be carried out on credit requests against performance standards of reputable International Finance Institution(IFC) The Performance Standards will look at -The social and environmental impact of customers· operation -Labour and working condition of a given customer-organization -Resource efficiency and pollution prevention activities of a given customer-organization.

pledges to ensure that its lending activities comply with best international performance standards and applicable national environmental and social regulations.Guaranty Trust Bank and its Sustainability Policy These performance standards will help the Bank and its customers avoid adverse impacts of its operation on workers. through this policy. and the environment The Bank remains committed to the goals of environmental and social sustainability The bank. . communities.

(Forum for the Future Annual Report 2000). Francis of Assisi ´Sustainability is a dynamic process which enables all people to realize their potential. then what is possible.´.´ . .Mark Twain ´Start by doing what is necessary. in ways which simultaneously protect and enhance the Earth's life support systems." . and to improve their quality of life. and suddenly you are doing the impossible.St.QUOTES "A person with a new idea is a crank until the idea succeeds.