Linking Sustainability Data To ValueChair: Eszter Vitorino Füleky, Network Relations Manager, Global Reporting Initiative

Dr Maria Balabat, Senior Lecturer, University of New South WalesAnnabelle Bennett, Account Director, TrucostDr Lara Jefferson, Manager, Environment and Approvals, CrosslandsResources Limited co-presenting withKylie Ashenbrenner, Principal Consultant Strategic Projects at ERM

Australian School of Business

Linking Sustainability Data to ValueDr Maria Balatbat

Sustainability defined“…development which meets the needs of the present without

compromising the future generations to meet their own needs” (Brundtland Report, 1987)

“Corporate sustainability is a business approach to create long-term shareholder value by embracing opportunities and managing risks deriving from economic, environmental and social developments.” (Dow Jones Sustainability Indices)

Many companies get caught up with Triple Bottom Line Reporting. Although transparency is an important aspect of sustainability, embedding the concepts internally to add shareholder value is the most imporatant issue (The Mays Report, 2003).

Business Case for embedding and accounting sustainability and climate changes

Winning and retaining customers

• Competitive advantage, innovation and new products

• Attracting, motivating and retaining staff

• Managing risk and opportunity

• Driving operational efficiencies and cost reduction

• Maintaining licence to operate

• Accessing capital

• Reputation and brand

Source: adapted from the Prince's Accounting for Sustainability Project (2007)

Principles• – United Nations Global Compact

(UNGC)• – United Nations Principles for

Responsible Investment (UNPRI)

Accounting and disclosure frameworks

• – Corporate Responsibility Index (CRI)• – Global Reporting Initiative (GRI)• – Accounting for sustainability (A4S)• – International Integrated Reporting

Committee (IIRC)• – Carbon Disclosure Project (CDP)• – Good Business Register (GBR)

Sustainability ‘accounting’ and disclosure frameworks

Standards and regulations– Greenhouse Gas Protocol– National Greenhouse Energy

Reporting Scheme (NGERs)– ISO 26000 – Social

Responsibility– ISO 14001 – Environmental

management systems– ISO 14064 – Climate change– OHS 18001 – Occupational,

health and safety– AA1000 Series – Accountability

and assurance

Sustainability ‘accounting’ and disclosure frameworks

Current Research

Siew, Balatbat and Carmichael, 2012 “Influence of ESG Scores on Firm Performance: Australian Evidence”, Working Paper

- This research is partly funded by CPA Australia- Top 300 ASX listed firms in 11 industry sectors - Evaluated and Obtained ESG Scores of firms

using the database provided by CAER, Australian provider of EIRIS

- Use best of sector methodology to examine correlation between ESG scores and firm performance (financial, share market and analysts forrecasts)

Current initiatives in SRI• United Nations Principles for Responsible Investment

(UNPRI)

• Carbon Disclosure Project (CDP)

• ESG Research Australia

• Investor Group on Climate Change

• Responsible Investment Association Australasia

• Reporting schemes using data from sustainability reports and other engagement by specialised analysts (e.g. Bloomberg, Thomson Reuters, RiskMetrics)

Indices– Dow Jones Sustainability Indexes (DJSI)– KLD/FTSE4Good– MCSI ESG Indices