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<Insert Picture Here> Empower Green Enterprise Reporting Why—and how—business is widening its focus to consider the needs of all stakeholders Ravi Tirumalai Marketing Director – Oracle Asia Pacific [email protected] April 20, 2010

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<Insert Picture Here>

Empower Green Enterprise ReportingWhy—and how—business is widening its focus to consider the needs of all stakeholders

Ravi TirumalaiMarketing Director – Oracle Asia [email protected] 20, 2010

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The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions.The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

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Confusing Terminology

GreenCorporate

Social

Responsibility

Sustainability

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A Debated Subject … The Capitalist View

Milton Friedman

“the social responsibility of

corporations is to maximize profits.”

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A Debated Subject … The Environmentalist View

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But Sustainability Is About Your Business Model

Michael Porter

“Don’t pit business against society, they are interdependent”

“Typically the more closely tied a social

issue is to a company’s business, the greater

the opportunity to leverage the firm’s

resources—and benefit society”

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Sustainability Strategies

Product and Service Design- meet customer needs

Sales and Marketing- sustainable attributes

Blue Ocean Strategies- defining a new market

Building Brand Value- being seen as a sustainability leader

Building The Upside

Improve resource productivity - efficiency

Cut environmental costs and regulatory burden – expense reduction

Value-chain leverage- upstream and downstream

Risk management- lobby for stricter regulations

Managing The Downside

Based on “Green to Gold”, Daniel Esty and Andrew Winston

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Various Indices Focus on Sustainability

• Standard & Poors Corporate Governance Scores

• FTSE4GOOD

• Dow Jones Sustainability Indices

• Ethibel Sustainability Indices

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Functional View of SustainabilityIntelligent Management of Carbon, Energy and Other Natural Resources

Risk & Performance Management

Data Collection & Contextualization

IT Infrastructure

Supply Chain & Operations Management

Sustainability Business

Intelligence

Sustainability Management

Environmental Compliance & Risk Management

Environmental Compliance & Risk Management

Sustainability ReportingSustainability Reporting

Natural Resource Planning and Budgeting

Natural Resource Planning and Budgeting

Carbon Cap & Trade, Offset Management

Carbon Cap & Trade, Offset Management

Digital Content Management

Digital Content Management

Workload ManagementWorkload Management

Application ConsolidationApplication Consolidation

Software-as- a-ServiceSoftware-as- a-Service

Server & Storage Virtualization

Server & Storage Virtualization

Design for the EnvironmentDesign for the Environment

Sustainable ProcurementSustainable Procurement

Supply Chain PlanningSupply Chain Planning

Green ManufacturingGreen Manufacturing

Environmental Health and Safety

Environmental Health and Safety

Intelligent Asset Management

Intelligent Asset Management

TransportationTransportation Reverse LogisticsReverse Logistics DematerializationDematerialization Smart Utility

GridsSmart Utility Grids

ERP & SCM IntegrationERP & SCM Integration

Emissions CalculationsEmissions Calculations

Meters, Building & Energy Systems Integration

Meters, Building & Energy Systems Integration

Shop Floor Control and MES

Shop Floor Control and MES

Data AggregationData Aggregation

Operational AnalyticsOperational Analytics

Enterprise AnalyticsEnterprise Analytics

Policy MgmtPolicy Mgmt

Controls MgmtControls Mgmt

Data Verification

Data Verification

Copyright ©2009, Oracle. All rights reserved. Oracle Confidential

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The Big Sustainability Picture for Oracle

MiddlewareDatabaseHardware

Virtualization

Applications – SCM, HR, Financials, GRC, Agile etc.

BI & EPM

Server Consolidation and Energy Savings

– “Green IT”

Social Compliance, Reduce, Reuse, Recycle, “Green

Supply Chain”, etc.

Sustainability Reporting, Planning and Management

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<Insert Picture Here>Sustainability andEnterprise Performance Management

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Source: PricewaterhouseCoopers

Increasing Demand for Non-Financial Information

New metrics for valuation

Board-level focus on reputation, social responsibility and sustainability

Publishing of key non-financial information along side financial data

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Increasing Popularity of CSR Reporting• More than 2000 companies publish some kind of Sustainability Report*• 80% of G250 produce sustainability reports in 2008 survey vs. 50% in

2005 and more than 75% use GRI framework for sustainability reporting**

* Business for Social Responsibility** KPMG Global Sustainability Survey, October 2008

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GRI Reporting

Profit

People Planet

Direct Economic ImpactCustomers, Suppliers, Employees, Providers of capital, Public

sector

Environmental•Materials•Energy•Water•Biodiversity•Emissions, effluents, and waste

•Suppliers•Products and services

•Compliance•Transport

Social•Labor Practices and Decent Work

•Human Rights•Society•Product Responsibility

www.globalreporting.org

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The Benefits are Becoming Clearer

• Avoidance of Penalties or Lawsuits• Improved Reputation With Stakeholders

• Investors

• Credit agencies

• Customers

• Employees

• Attract Capital from “Green” Investors• Enhanced Brand Value• Improved Business Performance

• Operational Efficiency & Cost Savings

• Risk Assessment and Management

• = Long-term, Sustainable Financial Value

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The Tools Approach Falls Short

• Spreadsheets

• Text Documents

• Email

• Desktop Publishing

• Point Solutions

• Missing:

Workflow Approvals Validations Audit Trails Data transmission Repeatable Process

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Regulatory Developments Driving Sustainability Closerto Mandatory Financial Reporting

Voluntary SustainabilityReporting

Mandatory Financial

Statements

ShareholdersShareholders StakeholdersStakeholders

Accounting standards (New requirements for

Sustainability Reporting)

Voluntary Reporting Guidelines (GRI)

Corporate ReportingCorporate Reporting

EU: Financial Accounting directives require disclosure about environmental and HR issues in the annual statement.

EU Emissions trading starts 2005. Links to IAS 20 and 37.

U.S: Sarbanes-Oxley brings new requirements for listed companies regarding risk management and reporting

NRE in France requires listed companies to include social and environmental data in their board of directors’ review.

Companies Act in the UK will require social and environmental disclosure.

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Sustainability Data Comes from Financial, Operational and Other Systems

Riskmanagement

Environmentalperformance

Economic Performance

Social Performance

StakeholderEngagement

F&CPolicies

monitoringERP

Energy, Facility mgmt

HRCRM, SCM

SourcingProcess control

Corp Sust.

Report

Financial Metrics

Operational Metrics

Corp

Functions

Divisions

Operations

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Oracle’s Hyperion Financial Management

Our “Green” Solution

NON-FINANCIAL

2Future Application for Sustainability Reporting

+

Economic

Social

Environment

Capture

Report

Store

FINANCIAL

P&LCashFlow

Balancesheet

ROCE

EBITA

P/E

etc.

Reporting & Analysis Tools Report/Model/ Analyze/Benchmark

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• Sustainability Chart of GRI-based Indicators

• Conversion Factors and Calculation Rules

• Target setting and Scenarios

• Full Audit trail, Process Management and Security

• Modules for Stakeholder Dialogue and Policy

Management

• Report Templates and Dashboards

Key Elements of the Solution

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Sustainability Scorecard

UnderstandEnv.legislationand guidelines

UnderstandEnv.legislationand guidelines

UnderstandCustomer Use

Patterns

UnderstandCustomer Use

Patterns

Understandcurrent env.

footprint

Understandcurrent env.

footprint

Est. product tracking

capabilities

Est. product tracking

capabilities

Design for

Remanufacture

Design for

Remanufacture

Comply withEnvironmental

Policy

Comply withEnvironmental

Policy

Ease ProductUpgrade/Renewal

Ease ProductUpgrade/Renewal

Maintain Cust.Intimacy over

time

Maintain Cust.Intimacy over

time

MinimizeTCO / Disposal

MinimizeTCO / Disposal

Ease Product Return at EOL

Ease Product Return at EOL

Recover RawMaterials

Recover RawMaterials

Increase SalesIncrease Sales

IncreaseProfits

IncreaseProfitsLower COGSLower COGS

EnsureOpen Markets

EnsureOpen Markets

MinimizeEnvironmental

Impact

MinimizeEnvironmental

Impact

MinimizeCarbon Credit

Needs

MinimizeCarbon Credit

Needs

SustainableEnterprise

SustainableEnterprise

Get CustomersTo Return Products

Get CustomersTo Return Products

Learn

ing

Pro

cess

Cust

om

er

Fin

an

cial /

Bott

om

Lin

e

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Carbon Planning

`

Cost

Turn offLights at night

Switch to moreEfficient Light

globes

Fitting SolarPanel for power

generation

Decreasing level of

C02 emission

Each block represents an abatement projectX-axis defines expected C02 saving

Y-axis defines expected cost of projectCost saving projects should be executed first

(i.e. left of Curve)

Projects of abatement are modelled intoa marginal cost of abatement curve

E-prise Carbon Planning

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Oracle’s Enterprise Performance Management System

EPM WORKSPACE

OLTP & ODSSystems

Data WarehouseData Mart

SAP, Oracle, Siebel,PeopleSoft, Custom

ExcelXML

BusinessProcess

OLAP

Fusion Middleware

Business Intelligence Foundation

BI Applications

Web AlertsOffice MobileDesktop Search

PERFORMANCE MANAGEMENT APPLICATIONS

StrategyManagement

BusinessPlanning

ProfitabilityManagement

FinancialReporting &Compliance

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<Insert Picture Here>Customer Examples

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IndustryStora Enso is an integrated paper, packaging and forest product company producing publication and fine papers, packaging boards, and wood products areas in which the Group is a global market leader.

OverviewIn 2007, Net Revenue of € 13,3 Billion with 39,000 employees in 40 countries

Stora Enso Streamlines Sustainability Reporting

Stora Enso wanted to unify Financial and Non Financial reporting:

• Sustainability Reporting is critical e.g.

climate change, rising energy costs, acceptability of fibre, etc.

• Enhanced reporting and analysis for internal use

• Link financial and sustainability performance analysis

• Ability to monitor data quality globally for 150 operating sites

• Same reporting process and schedule for the whole annual reporting package

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Key Takeaways

• Sustainability Reporting is mandatory in many countries, voluntary in the US – for now

• Many business benefits• Avoidance of Penalties or Lawsuits• Improved Reputation With Stakeholders• Attract Capital from “Green” Investors• Operational Efficiency & Cost Savings• Improved Business Performance

• Oracle’s EPM/BI tools can streamline the reporting process – extend to planning and management

• Leverage the experience of Oracle and partners

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<Insert Picture Here>Sustainability and Oracle

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• First software company to participate in the U.S. EPA Climate Leaders Program

• Member of the U.S. EPA Green Power Partnership Program

• Member of the Climate Savers Initiative

• Participate in Demand Response Programs

• 14 European and South African operations are certified to the ISO 14001 environmental standard

• Best Workplace for Commuters Award Winner

• Conservation and recycling programs ranging from water, paper, waste, etc.

Oracle: Industry Leader in Environmental Issues

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Oracle’s Commitment - Learn More

www.oracle.com/commitment

• Oracle’s Corporate Citizenship Report

• Oracle’s 2007 Corporate Citizenship Summary Report

• Oracle’s 2007 Oracle and the Environment Summary

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Questions?

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