The scope of our survey

• Fourth annual review of CSR reports

• Second year in partnership with PricewaterhouseCoopers

• Looked at over 600 companies: – S&P/TSX Composite, S&P 500, Europe 350, Global 100 and

Australia S&P/ASX100

– Private companies and Crown corporations

– CSR indices in search for best practices

• We looked at print and HTML reports as well as websites

The scope of our survey

• We collected data on 423 companies for our Big Picture:– 222 Canadian

– 100 U.S.

– 101 Europe, Japan, Australia

The big picture

• No longer just nice to do; CSR has become a core business value

As at July 15, 2010

The big picture

• Canada and the United States

continue to lag

As at July 15, 2010

The scope of our survey

• Detailed survey of 75 reports / websites

• 13 employees from Craib and PricewaterhouseCoopers

• Over 100 content items and design features: – Structure and medium

– Design and production values

– Key elements of content

– Performance

– Website treatment

• Average time to review each report: 110 minutes

Benchmarking content and accessibility

Focus Credibility Context Performance Accessibility

• Covers• Materiality• Organizational profile

• Message to stakeholders• Governance & management systems• Stakeholder engagement• Assurance

• Reporting on the issues• Climate change• Case studies and testimonials• Visuals and design

• Objectives and targets• Understanding performance

• Websites• Integrated communication• New reporters

What did we find out?

• 8% first CSR report– Canadian: 24%

– U.S.: 0%

• What were they called?– Sustainability report: 36%

– Corporate responsibility report: 28%

– CSR report: 13%

• How long were they?– Canada: 42 pages

– U.S.: 54 pages

– Europe, Japan and Australia: 82 pages

Five significant trends: One

• CSR reports are tightly focused on what matters

Five significant trends: One

• What matters tends to be identified and tracked

Five significant trends: Two

• Climate change is the dominant issue and depth of information is becoming deeper

Five significant trends: Three

• CSR efforts are reaching further – upstream and downstream

Five significant trends: Four

• Companies are working harder to engage stakeholders– Micro sites: 48%

– Videos: 35%

– Social networks: 24%

– Interactive maps, diagrams or games: 23%

– Blogs: 15%

Five significant trends: Five

• Formal stakeholder engagement is part of the process– 88% identified major stakeholder groups

– 97% described specific stakeholder engagement methods

– 59% provided results of engagement

Covers:What did the best practice companies do?

Daimler AG 360º Magazine and Fact book

• They used their covers to sell

readership while conveying

their corporate culture, priorities

and accomplishments:– 69% had a cover theme or

message

– 8% used the back cover to support the front cover or deliver other significant messages

– 57% linked the CSR and AR through theme and design

Report scope – materiality:What did the best practice companies do?

Campbell Soup Company

• They identified the company’s

key issues, the materiality

process, key stakeholders and

the report’s parameters:– 85% explained the

report scope

– 83% used the GRI guidelines

– 37% discuss the materiality process

Organizational profile:What did the best practice companies do?

Exxon Mobil Corporation

• They provided an

organizational profile providing

context for their company’s

CSR strategy, initiatives

and performance:– 80% published a

corporate profile

– 79% described their CSR strategy, policy and/or vision

Messages to stakeholders:What did the best practice companies do?

Nike, Inc.

• They feature a candid and

strategic message intensely

focused on the company’s

CSR issues, priorities and

challenges:– 100% publish a letter

from the CEO

– 24% publish a second message

Governance and management systems:What did the best practice companies do?

ArcelorMittal

• They explained how the tenets

of corporate responsibility are

entrenched in the culture

policies, codes and principles:– 89% contained a dedicated

discussion of governance

– 79% explained CSR management systems

– 65% reported on risk management

Assurance:What did the best practice companies do?

Nexen Inc.

• They had their CSR reports

verified by sustainability

consultants, stakeholder panels

and/or accounting firms:– 20% of Canadian companies

provided an assurance report compared to 65% of non-North American companies

– 61% by accounting firms or CSR consultants

– 43% of assurance reports contained recommendations

Reporting on the issues:What did the best practice companies do?

Ford Motor Company

• They structure their report

around the issues that had –

or could have – the most

impact on operations: – 95% had a separate section

on environmental performance

– 80% provided information on their supply chain

– 97% provided information on community investment

Case studies and testimonials:What did the best practice companies do?

Enbridge Inc.

• They provided balanced

testimonials and case studies

from credible, relevant

stakeholders to emphasize

messages:– 47% provided testimonials

or commentary

Visuals and design:What did the best practice companies do?

Total S.A.

• They used photographs,

illustrations, graphs, diagrams

and maps to help convey

complex messages, capture

attention and pique curiosity.

Objectives and targets:What did the best practice companies do?

Wm Morrison Supermarkets PLC

• They identified the company’s

sustainability goals, their

importance and strategies in

place for achieving new targets:

– 65% published objectives in scorecards

– 27% of those objectives were quantified

– 88% set future targets

Understanding performance:What did the best practice companies do?

British Land PLC

• They explain CSR performance

with the same diligence used to

report financial and operating

performance:– 55% provided summary

performance tables or graphs

– 24% of Canadian companies identify which performance indicators are key compared to 44% of non-North American companies

– 69% provided a GRI index table

Websites:What did the best practice companies do?

Marks and Spencer Group PLC

• They took full advantage of

the internet’s capabilities by

including interactive features,

video and feedback tools:– 81% of all companies have

CSR information on their websites

– 50% draw attention to the information on the corporate home page

Websites:What did the best practice companies do?

Stora Enso OYJ R

Integrated communication:What did the best practice companies do?

• They acknowledge that CSR has a much wider audience than

an annual report, and that different stakeholders require different

amounts and kinds of information.

Integrated communication:What did the best practice companies do?

Full PDF report

Supplementary reports

SABMiller PLC SAM reporting portal

Sustainable development website

Integrated communication:What did the best practice companies do?

Intel Corporation

Full and summaryinteractive PDF reports

CR website

CSR blogHTML report

Taking that first step:Acknowledging new reporters

Agnico-Eagle Mines Limited

• 67% had scorecards;

100% of those scorecards set

future targets

• 83% used the term “sustainability”

• 67% used the GRI guidelines