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Examples of Corporate Reporting Practices

Providing Context When Measuring Your Company’s Impact Against the Sustainable Development Goals

Integrating the SDGs into Corporate Reporting: A Practical Guide — developed by the United Nations Global Compact, GRI and partners — outlines how businesses can measure and disclose their contribution to and impact on the Sustainable Development Goals (SDGs) through a three-step approach and in alignment with recognized principles and reporting standards. The examples featured in this series help businesses and interested stakeholders identify select current corporate SDG reporting practices. The examples focus on one or a few elements of the broader corporate reporting process and steps outlined in the Practical Guide, which should be consulted for best practices on SDG reporting. The inclusion of company names in this series of examples is intended strictly for information and learning purposes and does not constitute an endorsement of the individual companies by the UN Global Compact or GRI.

This paper showcases how ACCIONA, Ayala and Safaricom disclose their contribution to the SDGs in the wider context of sustainability. For further information on managing this stage of the reporting process, please see steps 2.2 and 2.3 in the Practical Guide.

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Business Reporting on the SDGs

COMPANY: Ayala

COUNTRY: The Philippines

SECTOR: Conglomerate

Measuring Company Impact in Connection with Three National Megatrends in the Philippines

In Figure 1, Ayala displays its “Sustainability Blueprint” in which it outlines how different companies within its portfolio have an impact on the eleven Sustainable Development Goals (SDGs) that the firm has prioritized. These companies are given the title “Ayala’s SDG Champions.” The impact of the companies is measured based on the three megatrends that Ayala has identified to be characteristic to the Filipino context, namely marginalization, untapped potential and irresponsible growth. Each company’s specific impact is aligned with an SDG which the company provides greater context and metrics for in a table later in the report. A section of this table is displayed in Figure 2.

EXAMPLE 1

Disclosing Sustainability Indicators in Connection with the SDGs and the Three Megatrends

The report covers an overview of Ayala’s contribution to the SDGs, providing examples of how companies in its portfolio contribute to SDGs relevant to them. Each of these impacts is categorized into one of the three megatrends outlined in Figure 1, with the impact measured at the goal level (in opposition to linking the impact to the SDG targets).

Figure 2 displays a section of this overview for eleven of the SDGs, with four of them categorized under the megatrend “Responsible Growth and Innovation Journey.” The company then explains how its “SDG Champions” have an impact on Goals 7, 9, 12 and 13. Each impact is supported by relevant metrics in order to provide further context for readers. For example, the report discloses how one company — in order to advance Goal 13 on climate action — “shifted 32 of its malls and offices to renewable energy,” which resulted in “102,000 tons of carbon avoided.” The company repeats this process for the other two megatrends it has identified (page 18 of the report).

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YEAR OF REPORT: 2018

LINK TO REPORT

FIGURE 1: INFOGRAPHIC FROM AYALA’S REPORT DISCLOSING THE COMPANY’S “SUSTAINABILITY BLUEPRINT,” WHICH OUTLINES ITS IMPACT IN THE FILIPINO CONTEXT1

1Ayala, Disruption, Innovation and Strategy (2018), p. 18.

In Ayala, we keep a positive and proactive mindset and see that businesses must go beyond making profit. We ensure that our contributions are for the betterment of society and that we preserve the natural resources for future generations as we grow. This paradigm was reinforced with the launch of the UN SDGs which aligns well with our thinking.

Today, we acknowledge the three mega trends that pose large threats to filipinos while having the most relevance in the industries we are in: marginalization, untapped potential and irresponsible growth. To combat these mega trends, the Ayala Sustainability Blueprint outlines the three journeys to which we commit to take Filipinos to how we envision them by 2030. Each journey includes relevant UN SDGs with the companies from the group who will champion them.

To solidify our commitment to these journeys, each champion has a core target set that is aligned with the language of the SDGs with the same deadline of 2030. These core targets will be further supported by stretch targets of each business unit. The stretch targets of each business unit will also be released with their corresponding key performance objectives after a careful deliberation has been accomplished. With this Integrated Report, we strengthen our commitment. We proclaim our champions and their respective core targets as we continue to concretize their stretch targets and corresponding key performance objectives. All targets will be subjected to a review every two to three years to ensure relevance.

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FIGURE 2: TABLE FROM THE COMPANY’S REPORT DISCLOSING AN OVERVIEW OF ITS IMPACT TOWARDS ELEVEN PRIORITIZED SDGS2

AC Energy generated 601GWh of renewable energy from its wind and solar power plants, avoiding 342,071 tonnes of carbon

AC Energy generated a total of 6,841GWh of power through its operating companies

BPI distributed ₱170 billion worth of agribusiness loans to support agriculture and food security

IMI generated US$443 million in value-add by manufacturing 832 million units of products, supporting industries on automotive, connectivity, and emerging technology

IMI and Globe diverted 98 percent and 12 percent of water from landfill, respectively

Globe through Project 1 Phone hauled 288,243 kg of e-waste

Manila Water saved 3.9 million kWh of electricity through its various energy efficiency initiatives in 2018

Ayala group companies planted 4,719 seedlings through Project Kasibulan

Ayala Land maintained 560 hectares of carbon forest

Ayala Land shifted 32 of its malls and offices to renewable energy and avoided 102,000 tonnes of carbon

Manila Water mounted solar panels in three used water treatment facilities, generating 177,000 kWh of electricity and avoiding 126 tonnes of carbon

BPI disbursed ₱10.8 billion worth of loans for sustainable energy projects of SMEs and mid-to-large size businesses, avoiding 9.6 million tonnes of carbon

1:1.3 in male:female employee ratio in the Ayala group

40 percent of managers ranked from senior to executive in the Ayala group are female

Ayala group fosters equal opportunity and non-discrimination in the workplace

Manila water removed 9,102 tons of organic pollutants from used water

Northwind’s biodiversity study recorded 3 species of marine turtles within the Bangui Bay

North Luzon Renewables’ biodiversity study yielded 69 bird pieces wherein 33 are endemic, and 17 tree species, four of which are IUCN threatened species

Ayala Land protects 52 IUCN red-list species in El Nino Resorts and Lio Estate

Manila Water planted 40,000 seedlings in 100 hectares of land in LA Mesa Watershed and 500 seedlings in Nabaoy Watershed

Ayala continues to uphold good governance and respect human rights

Ayala fosters protecting the young and conducted a Children’s Rights workshop for managers across the group

Ayala garnered a higher than average score in the Global Child Forum’s Corporate Sector and Children’s Rights Benchmark

Ayala remains a member of the UN Global Compact Network Philippines

Responsible Growth and Innovation Journey Completing the SDGs

2Ayala, Disruption, Innovation and Strategy (2018), p. 17.

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COMPANY: Safaricom

COUNTRY: Kenya

SECTOR: Telecommunications

Safaricom Discloses Its Methodology To Measure Impact in Its National Context in Kenya

Safaricom devotes a section of its report to explaining how it identified the company’s most material socio-economic and environmental impacts to society. Figure 3 provides readers with an overview of this approach, covering how the company sought to understand and express “the value that the company creates for society.” The company states that by using this “True Value” methodology, it was able to confirm that its strategy for impact would be “the most appropriate in the specific Kenyan context.” The impacts the company proceeds to disclose in the report reflect this, as outlined by the example in Figure 4.

The report proceeds to disclose Safaricom’s impact according to specific social and environmental themes the company has

identified during its materiality assessment. Figure 4 discloses an impact which has been measured under the theme “Environmental Stewardship,” within the sub-theme of “E-waste Management.” The company states that the introduction of its reusable carrier bag “will have a significant impact on plastic waste reduction and more than seven million plastic bags are expected to have been removed from circulation by the end of this year,” providing specific indicators for readers to understand the context supporting the impact (plastic bag ban was introduced in Kenya in 2017). The company proceeds to link this impact with Goal 12 on responsible consumption and production.

EXAMPLE 2

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YEAR OF REPORT: 2018

LINK TO REPORT

12014, KPMG, A New Vision of Value. Available at: https://assets.kpmg.com/content/dam/kpmg/2014/10/a-new-vision-of-value-v1.pdf

FIGURE 3: SECTION FROM SAFARICOM’S REPORT DISCLOSING HOW THE COMPANY CONTEXTUALIZES ITS IMPACT IN THE KENYAN CONTEXT3

3Safaricom, Sustainable Business Report (2018), p. 25.

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4Safaricom, Sustainable Business Report (2018), p. 45.

FIGURE 4: SEGMENT FROM THE COMPANY’S REPORT LINKING ITS IMPACT ON WASTE MANAGEMENT TO GOAL 12 ON RESPONSIBLE CONSUMPTION AND PRODUCTION4

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EXAMPLE 3

COMPANY: ACCIONA

COUNTRY: Spain

SECTOR: Electric utilities

ACCIONA Discloses Its Contribution to SDGs It Identified as Priorities for the Company

The five SDGs ACCIONA evaluated it has the biggest impact on as a company include Goal 6 on clean water and sanitation; Goal 7 affordable and clean energy; Goal 9 on industry, innovation and infrastructure; Goal 11 on sustainable cities and communities; and Goal 13 on climate action. This evaluation was done by analyzing the indicators that — in correspondence with the company’s activities — have the greatest impact on the SDGs (in this case, the impact was linked to the SDG targets).

Disclosing Contributions to the SDGs in Connection with Regions

ACCIONA shows its contribution to the SDGs by dividing it into five regions. Each region’s needs in terms of the SDGs have been assessed based on the information contained in the SDG Index and Dashboards Report 20185 and they are categorized as follows: SDG achieved, challenges remain, significant challenges remain, and major challenges remain. These categories are assigned a color to visually disclose the status.

ACCIONA’s contribution is focused on regions in which there are still major or significant challenges in achieving the SDG. The company measures its impact towards the SDGs at different levels, including inputs, activities and impact. It links each impact disclosure to the relevant SDG. For example, in Figure 5, the company links its activity and impact of the “Construction of the North Shore Wastewater treatment plant (Canada)” to Goal 6 on clean water and sanitation. See Figure 6 for more examples.

⁵Sachs, J., Schmidt-Traub, G., Kroll, C., Lafortune, G., Fuller, G. (2018): SDG Index and Dashboards Report 2018. New York: Bertelsmann Stiftung and Sustainable Development Solutions Network (SDSN).

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YEAR OF REPORT: 2018

LINK TO REPORT

6ACCIONA, 2018 Sustainability Report (2018), p. 24.

FIGURE 5: TABLE FROM ACCIONA’S REPORT DISCLOSING THE COMPANY’S CONTRIBUTION ON FIVE OF THE SDGS IN THE NORTH AMERICAN REGION6

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FIGURE 6: TABLE FROM ACCIONA’S REPORT DISCLOSING THE COMPANY’S CONTRIBUTION ON FIVE OF THE SDGS IN FOUR REGIONS7

7ACCIONA, 2018 Sustainability Report (2018), p. 25.

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Disclaimer: This work has been funded by the Government of Sweden. Responsibility for the content lies entirely with the creator. The Government of Sweden does not necessarily share the expressed views and interpretations