reaching out to make a difference - black sun plc · pdf file“our common future”...

STAKEHOLDER COMMUNICATIONS

Reaching out to make a differenceSUSTAINABILITY COMMUNICATIONS

Black Sun plc Communications with purposeWe believe that in today’s fast moving and highly uncertain world, successful businesses are those able to deliver long-term value to the people around them – their stakeholders.When stakeholders are heard, engaged and inspired, business are understood, trusted and supported. They are more valued by their stakeholders and perform better.We are a stakeholder communications company. We deliver inspiring communications that reach, engage and influence.Our purpose is to create businesses that are more valued in the eyes of their stakeholders.

4 Business as part of the solution

6 Your sustainability journey

8 Value of sustainability communications

10 What we do

15 Why Black Sun?

16 Examples of our work

20 Our key experts

‘Reaching out’We passionately believe that by creating effective sustainability communications we will contribute to your success by providing you with new insights, supporting your competitive advantages, building advocacy with your stakeholders, engaging and inspiring them for the better.

© Black Sun Plc 2016 www.blacksunplc.com 1

The annual reporting of non-financial information will enhance the visibility

of SGX-listed companies among investors who seek sustainable

investment and want to review a company’s environmental, social

and governance effortsLoh Boon Chye, CEO of SGX

© Black Sun Plc 2016 www.blacksunplc.com2 3

Business as part of the solution

SGX Sustainability Reporting Guide: Key takeaways

Q: What is annual reporting? A: Companies can disclose non-financial information on an annual

basis (at the same time as or later than the annual financial report) in a format they consider most appropriate: within the annual/integrated report, as a standalone sustainability report or both. An internationally recognised framework should be selected for reporting.

Q: What is non-financial information? A: Companies should disclose information on environmental,

social and governance (ESG or sustainability) factors (risk and opportunities) that are important to their stakeholders and affect their performance and prospects, as well as ESG targets, policies, practices and performance. A Board statement on integrating sustainability into strategy should also be provided.

It has been almost 30 years since the United Nations proposed the concept of sustainable development or sustainability. The world has changed dramatically since that time, and we are confronting even more problems, such as involuntary migration, fiscal scandals and climate change.

When it comes to business, companies are often seen as part of the problem rather than part of the solution. In order to gain societal acceptance, some companies choose to, or in some cases have to, run community investment projects in addition to their core business. However, contributing just because it is ‘the right thing to do’ is not a long-term solution. In order to drive change and gain advantage, companies need to understand how sustainability can help them create value for shareholders and wider stakeholders.

More and more companies are publishing sustainability reports mostly due to growing stakeholder expectations, peer pressure and cascading use of voluntary guidelines. Key financial stakeholders, like investors and equity analysts are building sustainability factors into their analysis and investment decisions.

The growing regulatory burden and stakeholder pressure in relation to managing and reporting on environmental, social and governance (ESG) issues have become vital concerns for senior managers. While a reactive sustainability strategy can help companies gain social acceptance, a proactive strategy can help them create additional value for shareholders and other stakeholders.

Q: What is enhanced visibility among investors? A: Investors will get additional quantitative and qualitative

information to better understand how business is currently conducted and the sustainability of a business in the long term, so that they can make better assessments and decisions in relation to securities.

Q: Who are investors seeking sustainable investment? A: All investors seek sustainable and predictable return on

investment. Socially responsible investors integrate ESG factors into their decision-making processes not only to generate return, but also to solve ethical, socio-economic and environmental problems.

Q: What are ESG efforts? A: Companies should take into account ESG factors in strategic

planning, integrate ESG considerations in business processes and engage with stakeholders to improve performance in the long term. Philanthropy or charitable activities are not considered to be ESG efforts.

2000UN Millennium Declaration

2001Millennium Development Goals

2012“The Future We Want”

1997Kyoto Protocol

2015Sustainable Development Goals

1992Agenda 21

2016The Paris Agreement

1987“Our Common Future”

International sustainability initiatives

2013The International <IR> FrameworkFirst guidelines

2013Sustainability Accounting Standards BoardFirst standard

2016SGX Sustainability Reporting GuideFirst standard

1976The OECD Guidelines for Multinational Enterprises

1999GRI Sustainability Reporting Guidelines

2000UN Global Compact

2002Equator Principles

2005Principles for Responsible Investment (PRI)

2010Carbon Disclosure Project (CDP)

2010ISO26000 Guidance on Social Responsibility

Corporate sustainability frameworks

Customers and employees prefer to deal with sustainable companies if they have a choice. Non-governmental organisations, regulators and standard setters are piling on the pressure, too.

Sustainability reporting has been evolving into a standard business practice in Singapore too. Now listed companies will have one more trigger to report on sustainability – they will have to report on sustainability at least once a year as per the requirements of the Singapore Stock Exchange (‘SGX’). The requirement is supposed to encourage companies better manage what they report on and provide information for investors to integrate ESG information into their analysis and investment decisions.

Some companies may be puzzled with the SGX initiative. We believe that the challenge is not just to comply with the requirements, but to choose the strategic corporate reporting approach that would help companies address both the needs of investors and needs of other stakeholders particularly interested in ESG issues, as well as respond to other forces driving reporting.


The journey often starts with a reporting exercise, often driven by compliance or obligatory considerations. It takes time before management identifies efficiency opportunities in what gets measured. Positive examples help to scale up to new solutions and move towards the sustainability leadership stage. It is important to understand where you are in the journey and how you can use communications to move forward.

Where are you in your sustainability journey?

Your sustainability journey

Meeting mandatory requirements

Reporting on community projects

Reporting on sustainability

performance

Reporting on sustainability strategy linked to

performance

Driving behaviour change and innovation with multi-

channel sustainability communications

Reducing compliance

risks

Investing in communities

Adopting best practice to improve

reputation

Implementing projects to save

costsInforming

customers and employees on sustainability

Increasing resilience of supply chain

Integrating sustainability into

core strategyImplementing new business modelsLinking brand to

sustainabilityCompliance

Licence to operate

Domino effect

Efficiency

Leadership

Communications

Management

Key driver

Rome wasn’t built in a day. Progress towards sustainability depends on many internal and external factors. Communications do not only help you summarise what you did, but can also trigger change in how you do business.


How can sustainability communications help you succeed?

Building trust

Providing new insights

Engaging and inspiring

Gaining competitive advantage

Sustainability communications can help you to mitigate reputational risks, which can trigger or support dialogue with different stakeholders

Companies can leverage sustainability communications to improve their employer brand, ensure customer loyalty and drive behaviour change within their communities

Reputation and evidence of being a sustainable company can help attract investment, negotiate contracts, launch new projects or enter new markets

By collecting and reviewing sustainability information on a regular basis, management can improve processes and get new strategic insights, while investors and other stakeholders can use it to make better informed decisions in relation to the business

More than

40%70%

More than

59%

62%

66%

of firms that publish sustainability reports say they improve firm reputation2

of CEOs believe in the 21st century business success will be redefined by more than financial profit3

of investors consider sustainability reports essential or important when making investment decisions1

of millennials want the company they work for to make a positive impact and half choose purpose over salary proving the old adage that “money is not everything”4

of global consumers say they are willing to pay more for sustainable brands 5

$21 trillion The size of the global sustainable investment market is over $21 trillion6

42% of companies say they are going to make their supply chains more sustainable7

1 Boston College Center for Corporate Citizenship and EY survey, 2013

2 Tomorrow’s Investment Rules 2.0, EY, 2014

3 Global Investor Survey , PwC, 2016

4 Global Tolerance, 2015

5 Nielsen, 2015

6 Global Supply Chain Survey , PwC, 2013

7 Global Sustainable Investment Review 2014, GSIA

We believe that stakeholders should not only read your sustainability story, but also see, feel and even touch it. This is not about doing something completely different, but rather about effectively utilising sustainability information to move from reporting to value-adding communications.

The journey often starts with a reporting exercise, often driven by compliance or obligatory considerations. It takes time before management identifies efficiency opportunities in what gets measured. Positive examples help to scale up to new solutions and move towards the sustainability leadership stage. It is important to understand where you are in the journey and how you can use communications to move forward.

Value of sustainability communications

Decision-making

Data capturing

Stakeholders (unidentified)

EmployeesCustomers

GovernmentsSuppliersPartners

CommunitiesNGOs

Efforts

Outcomes and impacts

Companies make significant investments into sustainability data capturing, collection, consolidation, assurance, design and production. However, not every company can clearly articulate the value it gets from its sustainability reporting efforts. Meeting regulatory requirements and adhering to best practice are usually the main reasons to produce a sustainability report.

There is little doubt that sustainability reporting helps management and investors build a picture of an organisation not visible in traditional financial reports. But do they reach, inform and inspire customers, employees, communities and other stakeholders when they are constantly bombarded with information?

Distribution

Sign off

Production

DesignAssuranceCopywriting

Data consolidation

Data collection

Annual and sustainability

reports

Presentations

Websites

Social media

Whitepapers

Banners and posters

Corporate accessories

Packaging

Conference stands

Videos


What does it mean from a practical point of view?

Our solutionsYour challenges Your challenges Our solutions

Development of sustainability brand and visual identity

Define the ‘big sustainability idea’

Collect sustainability information

Defining content requirements for sustainability reports, websites and social media

Develop a sustainability communications strategy

Review and development of sustainability communications strategies

Ensure internal buy-in and build capacity

Assistance in defining and promoting sustainability units’ value within companies

Research on stakeholders, their interests, expectations and drivers

Understand stakeholders, impacts and material issues

Assist in defining sustainability impacts and material issues

Understand what good looks like and what’s required

Research on sustainability governance, performance and communications best practice

Advise on application of sustainability guidelines and requirements

We discover We create

Sustainability spans all elements of Black Sun’s proposition – from understanding your stakeholders’ needs and expectations to bringing your sustainability communications to life. We help you build a business which is more valued in the eyes of your stakeholders.

Black Sun can work with you to develop and implement a successful sustainability communications strategy that reflects your business objectives, sustainability impacts and risks, and stakeholders’ needs and expectations.

From helping to you choose the right tone of voice, and advising you on the level of detail, through to determining the most appropriate channels, we can help to make your sustainability communications work for all of your stakeholders from highly technical SRI analysts to customers and employees.

Your challenges Our solutions

Design and production of print and digital sustainability communications

Present sustainability information though different channels

Reach out to stakeholders

Planning of campaigns to drive behaviour change on sustainability topics

Facilitation of stakeholder engagement events

Development of sustainability infographics

We evaluateYour challenges Our solutions

Benchmarking of sustainability communications materials against peers, ‘best practice’ and requirements

Learn lessons and improve

We deliver

How we do itWe discover

your objectives, the needs and expectations of your stakeholders, and how you create

value for them

We create effective communications solutions, by

applying our expert knowledge to develop content and a distinctive visual identity that

brings your story to life

We deliver inspiring communications through print and

digital channels that reach, engage and influence your stakeholders

We evaluatethe effectiveness of these communications,

to enhance future communications

What we doWe help organisations define,

articulate and communicate how they create value for stakeholders.

How we make a differenceWe create more valued

organisations in the eyes of stakeholders.

The outcomeis an organisation that is more

valued by its stakeholders.


Don’t be afraid of new areasElon Musk, Entrepreneur,

CEO of SpaceX and Tesla Motors

If you aren’t making a difference in other people’s lives, you shouldn’t be

in business – it’s that simpleRichard Branson,

Entrepreneur, Founder of Virgin Group


We are uniquely positioned to provide an integrated suite of sustainability communications solutions leveraging our creative, strategic and subject matter expertise.

Black Sun has more than 20 years’ experience in providing unrivalled integrated communications expertise to support listed and private organisations across different sectors and geographies.

Why Black Sun?

Our teams comprise of sustainability experts, strategic communication consultants, designers, programmers and production specialists. This means that we look at your sustainability story from different angles, understand your strategy, industry trends and think in practical terms to meet your objectives.

While understanding cross-cutting sustainability trends and communications best practice, we know how to engage specific stakeholders on sustainability. Our employee and investor communications consultants can help you use sustainability to improve employer brand or support your investment case.

We have significant experience and use our world-class publishing platform to apply creative ideas in printed and digital communications. This means we can maximise the value of your sustainability information by effectively communicating it through different channels.

We have partnerships with leading communications organisations, such as the International Integrated Reporting Council, Investor Relations Society and Communication Director Magazine. This means we have access to industry and best practice and can help you connect with sustainability leaders to share knowledge.

As well as having significant experience in working with clients in the UK and Singapore, we have a good track record with clients from emerging markets, such as China, Jordan and Russia. This means we understand sustainability challenges in different economic and cultural contexts and can better adapt our solutions to your needs.

Integrated thinking

Integrated delivery

Strong network

Multi-stakeholder focus

International footprint

30 global clients95% retention rate over the last 3 years

Financially secureIndependently owned and managed

80 expertsFull time project managers, consultants and specialists

Well investedin world class technology

Proven experiencein stakeholder communications

Secure hostingFor 20 corporate clients


Examples of our work

26

Digital privacy and cybersecurityBy creating new markets, new products and a better understanding of consumers, the digital world offers enormous potential. However, many organizations underestimate the associated risks and precautions, particularly in relation to digital privacy and cybersecurity. Eighty-eight percent of respondents to our Global Information Security Survey 2015 do not believe their information security fully meets the organization’s needs. From a customer’s perspective, the digitalization of data means a greater amount of private information at risk. Therefore, for organizations to move to a safer and more sustainable place in the digital world, it is necessary to apply a cyber-risk lens to everything they do.

Understanding the challenges for cybersecurity

Key drivers: materiality top issuesOur clients

This is particularly true as cybercrime grows in both prominence and sophistication, alarming regulators and corporate boards across our markets. The rise in costs of dealing with cybercrime, the certainty of attacks and public implications of those breaches means boards of FS organizations are now incorporating security in their risk appetite models.

As regulators have become more engaged, the banking industry continues to face new regulatory demands, with the insurers next in line to face regulatory scrutiny. In light of this growing regulatory involvement, coupled with the rising costs of defending against attacks, cybercrime has become a board-level issue, often overseen by the CRO.

However, where the traditional “brick-wall” approach to protection may once have been sufficient, today it is no longer suitable, particularly when private company data is stored in multiple places and by third parties. Forty-two percent of respondents to our Global Information Security Survey 2015 say that knowing all their assets is a key information security challenge. The starting point for organizations is situational awareness, understanding what their organization looks like to cyber attackers and determining what the attackers are targeting. Companies can use this information to prioritize what matters most, improving controls to protect and respond to attacks where appropriate, and insuring against others.

59% see criminal syndicates as the most

likely source of an attack today, compared

with 53% in 2014

57% say that lack of skilled resources is

challenging information security’s contribution

and value to the organization

44% see phishing as the top threat today,

compared with 39% in 2014

59%2015

53%2014

57%2015

53%2014

44%2015

39%2014

88%of respondents do not believe their information security fully meets the organization’s needs

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Our journey towards sustainabilityEMEIA Financial Services Sustainability Report 2015

9Our clients

We advise our clients on sustainable business models with full consideration of, and contribution to, wider society and the environment.

Our clients

Our clientsFocusing on Financial Services 10Key drivers: materiality top issues 14

Regulatory compliance 15ESG and climate change risk 17Culture, ethics and integrity 19Trust and transparency 21 Governance and risk 23Digital innovation and disruptive technology 25

Embedding sustainability in core services 28

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How to ensure consistency in messaging and designWe worked with De Beers, the world's leading diamond company, to develop their sustainability communications under the banner ‘Building forever’. We helped them develop consistency of messaging and design across their print and online channels. We developed a new sustainability section of their website explaining their approach, key issues and performance, incorporating interactive features, and a dedicated news section with case studies, video and a blog to bring their sustainability to life.

How to communicate complex information in a clear and simple wayIn our first year of working with EY EMEIA Financial Services Sustainability Team, we helped them deliver a strategic step change in the way they discussed sustainability to meet the needs of their different stakeholder groups, providing both their industry thought leadership as well as performance overview. Infographics were used to communicate complex information in a clear and simple way and EY’s new materiality process was used to structure the report. We optimised the online version, bringing the sustainability content to life for their diverse stakeholder group.

We have worked with leading organisations in the UK and overseas to help them better communicate with stakeholders on sustainability. Some examples of our work are provided below.


Examples of our work

How to promote purposeOlam International is a leading agri-business operating from seed to shelf in 70 countries, supplying food and industrial raw materials to over 16,200 customers worldwide. We worked with Olam on their annual report underpinning the theme of ‘Growing responsibly’. It is more than a strapline, it is Olam’s purpose, and an integral part of their business model that is based on their commitment to do business in an ethical, socially responsible and environmentally sustainable manner. With this project, we have laid the foundations to move towards integrated reporting next year.

How to build something meaningfulWe have worked with DBS, a Singaporean multinational bank on their online annual report which communicates their positioning ‘Live more, Bank less’. The report has a modern, responsive design with innovative navigation. We helped DBS communicate how they create sustainable value for their stakeholders with an in-depth look at their business model and how they manage resources for the long-term. This is their fourth report following the IIRC’s reporting principles. DBS were the first company in South East Asia to adopt it in 2012.


Our key experts

Uantchern Loh CEO, Asia PacificPrior to joining Black Sun, Uantchern was the founding Chief Executive of the Singapore Accountancy Commission, a statutory body under the Ministry of Finance tasked to develop and lead initiatives in transforming Singapore into the leading global accountancy hub. While at the SAC, Uantchern spearheaded programmes for the development of Chartered Accountants of Singapore, CFOs, Internal Audit Leadership, and Chartered Valuers & Appraisers of Singapore. He also championed the adoption of integrated reporting principles.

Always having a passion for teaching, Uantchern is an Adjunct Associate Professor with the NUS Business School where he teaches enterprise risk management and social media risk sentiments. As an advocate of accountancy education, Uantchern serves on the Business Services Academic Advisory Committee of the Institute of Technical Education, the Industry Advisory Committee (Bachelor of Accountancy) of the Singapore Institute of Technology, and the Bachelor of Accountancy Programme Advisory Committee of SIM University.

Uantchern was the President of the Institute of Internal Auditors in Singapore from 2009 to 2012 and is currently a Governor of its Board. He also volunteers on the management committee of the Securities Investors Association (Singapore) as its Vice President and as a District Councillor of the Central Singapore CDC.

We are a group of 80 people from 18 different nationalities, operating from London and Singapore, and united by our passion to help businesses better connect with their stakeholders.

Alex AnnaevLead Sustainability ConsultantResponsible for developing and promoting innovative sustainability communications solutions, as well as shaping Black Sun’s internal sustainability agenda. Alex has over 8 years of experience in sustainability advisory and assurance as a project manager and consultant at EY and Deloitte. He has also interned for banks and not-for-profit organisations in Russia, India, Estonia and Turkey.

Alex’s clients include government agencies, international financial institutions, banks, as well as companies in the metals & mining, energy and telecommunications industries across different countries.

Sallie PilotDirector of Research and StrategyResponsible for setting the overall strategic direction for client work as well as the integrity of all of Black Sun’s research and analysis of the marketplace.

A Black Sun Board member with 15 years of company experience, Sallie has extensive FTSE 100/250 and international consultancy experience with a unique understanding of corporate reporting.

She is a member of Investor Relations Society (IRS) Policy Committee.

Anne KirkebyLead Corporate Reporting ConsultantResponsible for research development and providing guidance on best practice reporting, emerging trends and regulatory changes, as well as on-going corporate reporting opportunities.

Anne has over 10 years’ experience as a buy-side investment analyst focusing on analysing and advising corporates on Environmental, Social and Governance (ESG) best practice. With specialised skills in strategy, communication and reporting, Anne has engaged with numerous FTSE 350 and FTSE All-World companies on best practice and disclosure.

© Black Sun Plc 201620

STAKEHOLDER COMMUNICATIONS

Get in touchOur team of specialists is here to guide your organisation through the opportunities and pitfalls on the way to developing and implementing an effective sustainability communications strategy.

Let us hear about your sustainability journey and we will share our perspective based on the latest trends and insights we have identified.

Please contact:Uantchern Loh CEO, Asia Pacific Tel: +65-6808-6526 Email: [email protected]

www.blacksunplc.com

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reaching out to make a difference - black sun plc · pdf file“our common future”...

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