Sustainability Reporting Sponsorship Brief

Conference Sponsorship Brief EventTitle:Smart Food andBeverages Code: CC450

Sustainability and Environmental Reporting – CC489 Producer:

Alicia Boyd May 2-3 2007 Melbourne

Background and Purpose for Producing this Conference Sustainability – What is it? Sustainability is a philosophy that seeks to provide the best possible outcomes for human and natural environments, now and into the future. In a business context, sustainability involves bridging the gap between economic activity and environmental/social outcomes. It facilitates the creation of profit generating organizations that aren’t ethically questionable. Exactly what this entails is widely contested. “Sustainability” is variably used to refer to environmental performance on it’s own, or the whole parcel of HR, risk and compliance considerations. It is often applied interchangeably with “corporate social responsibility” (CSR). The main difference between these two terms is that “sustainability” involves ensuring the ongoing success of your organisation. A good definition is offered by Australian Business Limited (ABL). To be sustainable, a business must: -Develop a strong ethical framework -Make a long-term investment into intangible drivers of growth (like people – ensuring their safety, health, happiness, or public image – encouraging a positive public perception) -Establish partnerships for business growth, innovation and improvement. It is important to understand that price is not the only element that builds business and the economy. Corporations don’t exist in an environmental vacuum and they don’t run themselves. They rely on people to use their services, buy their products, or invest in their operations. Organisations are also sensitive to the costly risks of competition, litigation and non-compliance. What are the benefits of reporting about sustainability? Sustainability reporting is of considerable interest around the world and is becoming one of the basic criteria for judging the social responsibility of organisations. Business leaders are starting to realise that comprehensive reporting helps support company strategy and shows commitment to sustainable development. According to the “State of Sustainability Reporting in Australia 2005”, a report generated by the Australian Department of the Environment and Heritage, the main benefits of sustainability reporting were quoted as: “reputation enhancement” and “ability to benchmark performance”. From the research that I carried out, reported benefits included:

-Providing a central document for collating data, which allows for gaps in this data to be readily identified and galvanizes efforts on sustainability. -Ensuring time effective use of internal resources for sustainability performance. -Facilitating robust risk management/assessment -balancing social, environmental and economic factors -Acting as a central point for external engagement -Reinforcing public perception of your commitment to sustainability -Increasing your brand presence/profile -Building trust -Improving transparency - laying all of the facts on the table – and it’s harder to be critical of the facts -Demonstrating leadership and good custodianship -Building company pride, as focusing on sustainability is the right thing to do -Driving progress through continuous improvement -Adding rigor to your sustainability performance – providing discipline -Giving you a chance to stop and reflect on your performance-Helps keep your business focused -Allowing comparison of sustainability performance across an organisation The vision of the Global Reporting Initiative (GRI) is to promote reporting that builds transparency, accountablility and sustainable development of organizations. This is really the angle that I have tried to take with this event. Who do you need to report to? Increasingly, publicly listed companies are required to respond to sustainability information requests from a range of stakeholders, including fund managers, specialist research houses, researchers, nongovernment organizations, regulators, investors, consumers and local communities. Most importantly, they need to consider their internal stakeholders – staff. Internal communications - Reporting makes it easier for companies to communicate the results of the their environmental work internally. It encourages internal benchmarking and performance of each business unit in the areas of environment, ethics and social responsibility. External communications - Reporting saves time and communication for consumers, investors, banks and other interested parties. Reporting simplifies the tendering process for companies at the same time complying with reporting requirements of authorities. By openly and transparently showing your performance profile your company is demonstrating that you do more than just sustainable development. What are the international standards? The International Standards Organisation (ISO) establishes a range of “International Standards for a Sustainable World.” ISO14001 is a standard for establishing an environmental management system (EMS). ISO19000 series offer guidelines for dealing with issues of social responsibility. Both of these guidelines are intended to ensure consistency in corporate sustainability strategies. An EMS provides the tools and processes that can enhance an organisation's ability to improve its environmental performance, prevent pollution and meet and move beyond compliance requirements. EMS provide organisations with a structured process for meeting environmental goals by identifying and reducing a broad range of environmental impacts from their operations. Until recently, environmental management systems have been used extensively in private industry, but are now being adopted by a growing number of local governments. Improving the environmental performance of corporations is one way of limiting environmental damage. Environmental systems (EMS) such as ISO 14001 provide a framework for organisations that wish to effectively manage their environmental affairs to a level of accreditation. To generate sustainability reports, establishing an EMS is a good solid basis to start from. Other systems like environment, health and safety (EHS), occupational health, safety and environment (OHS&E) and equal opportunity policies (EEO) can also provide frameworks for reporting.

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The Global Reporting Initiative (GRI) was created in 1997 as a joint effort of the Coalition for Environmentally Responsible Economies (CERES) (a US-based organisation that arose after the Exxon Valdez oil spill) and the United Nations Environment Programme (UNEP). The original focus was on environmental reporting; this was expanded in 1998 to cover social and economic issues. It issued an initial version of its Sustainability Reporting Guidelines in 1999 and revised them in 2002 (GRI 2002). GRI is now an independent organisation, based in Amsterdam. GRI intends to issue revised guidelines in 2006. It works closely with the United Nations Environment Programme (UNEP) and UN Secretary-General Kofi Annan’s Global Compact. The GRI describes itself as a multi-stakeholder process and independent institution whose mission is to develop and disseminate globally applicable Sustainability Reporting Guidelines. Its Guidelines are for voluntary use by organisations for reporting on the economic, environmental, and social dimensions of their activities, products, and services. Reports prepared “in accordance” with GRI Guidelines must meet five criteria: • • • • •

Inclusion of a GRI Content Index, which allows readers to cross-reference reports to the Guidelines; Reporting on all the numbered elements in the Vision, Profile and Governance sections of Part C of the Guidelines; Responding to each core indicator in the Performance Indicators section with either the Requested performance information or an explanation for its omission (in the GRI Index); Ensuring that the report is consistent with the reporting principles in Part B of the guidelines; and including the following statement signed by the board or CEO: ‘This report is prepared in accordance with the 2002 GRI Guidelines. It represents a balanced and reasonable presentation of our organisation’s economic, environmental and social performance’.

Benefits of International Certification ISO - The benefits of having ISO 14001 and 19000 certification are mainly realised by large organisations, as Small to Medium Enterprises (SMEs) have a smaller turnover and thus a correspondingly small return on the costs of certification. Although a fully certified ISO EMS may not be suitable for smaller organisations, it does provide guidelines that assist organisations to consider all the relevant issues, and thus gain the most benefit from their EMS, even without certification. SMEs can therefore use ISO 14001 as a model for designing their own EMS. However, larger organisations may find certification more valuable when considering the potential trade and market advantages of an internationally recognised and certified EMS. This was a significant factor for companies seeking certification under the ISO 9000 quality assurance standards, and is likely to be a factor in decisions regarding ISO 14001 certification. GRI – Provides easy to understand reporting frameworks tailored to specific industries – finance, mining, manufacturing, etc… It helps organizations explore the value of their company, with a flexible approach that assists organizations in establishing a reporting system that works for them. It also enables assurance of the quality and comprehensiveness of a corporation’s sustainability report. Government compliance requirements There are few government compliance requirements, and they vary from industry to industry, and across parameters such as the level of energy used by an organisation. They need to disclose environmental and safety incidents, and demonstrate an equal opportunity policy and an occupational health and safety policy. Compliance requirements stem from the following: Green Performance Rating, EPA, Greenhouse Challenge, Greening Australia, National Pollution Inventory, etc. Where do we stand in Australia and New Zealand in terms of world best practice? The GRI is generally regarded as the benchmark for sustainability report structure throughout the world, yet it has so far only achieved a limited take-up amongst Australian-owned companies.

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Only about 20 per cent of the sustainability reports produced by Australian owned companies are produced in accordance with or with reference to the GRI, compared with 40 per cent internationally. Overall in Australia, including both foreign- and Australian-owned companies, about 50 per cent of reports are produced in accordance with or with reference to the GRI, a higher rate than is achieved internationally, but this level is attained only because of the particularly high rate of use by international companies operating in Australia. The proportion of companies producing sustainability reports in Australia is still very low, and is considerably lower than among large companies overseas. Foreign-owned companies operating in Australia (both proprietary and public non-listed companies) have a considerably higher rate of production of sustainability reports than Australian companies.

II. CONFERENCE RATIONALE (WHY NOW?) New reporting standards The G3 Guidelines will be released on October 5, 2006 in Amsterdam at a major international conference. Major elements in the G3 include a stronger focus on reporting principles, the support of protocols for every indicator, a new architecture to disclose management approach, and greater emphasis on clarity and materiality. These new G3 innovations respond to the growing sophistication of the sustainability reporting field, stemming from the accumulated intellectual capital and diverse experiences of nearly a decade of sustainability reporting by diverse sectors, worldwide. G3 innovations, such as principles and protocols will help create technically sound, more comparable reports: issues where sustainability reporting has perceived by some to have historically struggled. The G3 Guidelines build on the globally acclaimed 2002 Guidelines ("G2"), which up to 1000 organisations worldwide used to report on their sustainability performance and have resulted in the GRI being largely attributed as the global de facto standard-setter for sustainability reporting. Why is sustainability on the agenda? A range of pressing environmental and social issues are encouraging a stronger focus on corporate sustainability. Human induced climate change may be the biggest challenge that business will face in the next 40 years – organizations must reduce their energy use and carbon emissions – particularly in their vehicle fleets. Australia is currently facing the worst drought that we have seen in over 100 years. Corporations must be conscious of their water usage. Industrial relations changes are undermining employee confidence, and public image. This event is a repeat from CC447 Sustainability and Environmental Reporting. This conference rated extremely well and had approximately 46 delegates. The key to a successful event will be researching with the market to establish the development over the last twelve months. The goal of the conference is to examine EMS and other initiatives allowing the collection of environmental data, compliance with GRI guidelines, ISO14001 accreditation – all supplying the right data and environmental excellence to create benchmarking reports. Goal of the conference Understanding the goals of sustainability reporting, planning and implementing your report to achieve these objectives and using your finished product to improve the sustainability of your organisation.

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TARGET INDUSTRIES: Sector/Companies: All industries across Australia and New Zealand, including: Aerospace, Agriculture, Automotive, Chemicals, Construction/Infrastructure Development, Consumer Products, Energy, Oil and Gas, Food Processing, Healthcare, Industrial Manufacturing and Process, Mining and Exploration, Pharmaceuticals and Biotech, Real Estate, Retail & Distribution, Research Institutions/Education, Semiconductor, Transportation, Utilities. Job Titles TIER ONE The portion of the audience the conference was developed for Directors, Managers, Coordinators, Leaders and Advisors responsible for: Environmental Health & Safety (EHS) Occupational Health, Safety & Environment (OHS&E) Environment Sustainability Environment and Compliance Environmental Services Corporate Social Responsibility Corporate Citizenship Sustainable Development Corporate Affairs Operations TIER TWO Secondary and peripheral audience that may benefit or be interested in attending (ex. OEM, vendors, etc.) Consultants Provide tools for assessing sustainability to organizations that are starting out with an environmental management system (EMS), or in sustainability reporting more specifically. Our delegate target market are their core sales market. Strong potential for a speaking session. External Auditors Assess completed sustainability reports according to how accurate they are, and how well they meet the desired sustainability objectives. Provide services to organizations that report – all of our delegate market (potentially). Good speakers for a session on auditing/reliability of data. IT and Infrastructure Providers Provide IT and infrastructure tools for recording/managing sustainability data. Mostly IT solution providers. Service people involved in sustainability and environmental reporting – very good delegate relevance (although not all delegates use software to manage their sustainability reporting). Could present a session on data capture. Conference Format & Approach

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The format for the conference will follow the traditional business model with best practice case study presentations from some of Australia’s leaders in sustainability reporting. It will include international keynote presentations and workshops. Conference Focus and Potential Topics Day 1 will look at preliminary issues relating to sustainability reporting – big picture stuff and will feature topics such as: • • • • • • • • • •

Defining sustainability – breaking through the broad range of interpretations, and establishing a clear policy, and operating systems like Environmental Management Systems (EMS), Occupational Health, Safety and Environment (OHS&E), EHS, etc... Determining which sustainable outcomes your organisation wants/needs to achieve – what are the big issues? Why should you carry out sustainability reporting – rather than simply focusing on sustainability performance? What benefit can your organisation get out of it recording this information? How do you get started? Do you go on your own, do you use a consultancy, do you develop an NGO or government partnership? Which stakeholders are you trying to engage and what info do they want or need for you to report? What do investors look for? What are your compliance requirements? What about international standards – ISO14001, GRI, Industry based standards? Looking at the GRI G3 Guidelines Developing a specialized programme to suit your business structure

Day 2 will follow on from your initial considerations, looking at how you put together your report, and how you can use it to your best advantage once you’ve finished. • • • •

• • • • •

How do you gather data? What metrics do you use? -What is easy to assess? Low hanging fruit -What is harder? Interpretative and narrative data Ensuring the reliability of data – internally – identifying reporting parameters and collection protocols Is external auditing a good additional safeguard? Engaging all business units within an organisation on sustainability – maximizing performance and quality of reporting through employee buy-in. -Ensuring take-up by upper management -Building understanding and support throughout an organisation Presenting data to maximize value – the balance between transparency and readability Factoring in the sustainability performance of key suppliers Developing initiatives to minimize cost and resource constraints Benchmarking your performance against other organizations Using reporting to promote continuous improvement year by year

Key Sponsorship Selling Points Geographic Region

% of Market

New South Wales Victoria Queensland South Australia Tasmania Western Australia

15% 35% 15%

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5% 10%

20%

Competitive Events The most relevant events are highlighted in bold. EBA Business & Sustainability Summit October 23 2006 Sydney www.environmentbusiness.com.au Environmental Management & Systems 4-5 December 2006 Sydney www.iir.com.au/conferences/confdetail.html?detail=I0369.html&cat_code=resources&conf_co de=I0369 Corporate Sustainability in Utilities 24 October 2006 Melbourne www.informa.com.au/sustainability Third Annual Australia and New Zealand Climate Change August 30 – 31, 2007 Brisbane www.climateandbusiness.com Minerals Council of Australia Sustainable Development Conference October 23 – 27 2006 Perth http://www.minerals.org.au/__data/assets/pdf_file/13973/Program28Sept06.pdf Relevant marcus evans lists Past marcus evans events (conferences, training courses, summits) that have taken place over the past 12 years on the same issue and/or aimed at the same target market. CC474 Sustainable Facilities Management Produced by Ruth Chalmers CC454 Clean Production – Approximately 25 delegates/15k sponsorship Produced by Jon Cohen CC447 Sustainability and Environmental Reporting – Approximately 46 delegates Produced by Jon Cohen Relevant Publications and Associations Publications Title/Publisher Australia WME – Waste Management and Environment http://www.wme.com.au/ EMN – Environmental Management News http://www.environmentalmanagementnews.net/

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Eco Investor Australia  Great potential media partner http://www.ecoinvestor.com.au/ Ethical Investor http://www.ethicalinvestor.com.au/ Green Pages – New, launched on October 10th http://www.greenpagesaustralia.com.au Worldwide Corporate Register www.corporateregister.com The world’s largest directory of corporate non-financial reports The International Corporate Sustainability Reporting Site http://www.enviroreporting.com/ SustainAbility – One of the world’s leading consultants, they have a lot of info www.sustainability.com Carbon Finance www.carbon-financeonline.com Sustainability Reporter www.sirisdata.com Environmental Finance www.environmental-finance.com The Global 100 – Most Sustainable Organisations http://www.global100.org/ Dow Jones Sustainability Index http://www.sustainability-indexes.com/ Australian Government Sites Federal: Department of the Environment and Heritage www.deh.gov.au Environmental Protection Agency www.epa.gov.au Sustainability Reporting Library – A list of 400 sustainability reports from Australian organisations http://www.deh.gov.au/settlements/industry/corporate/reporting/reports/index.html State: VIC Department of Sustainability and the Environment (DSE) Victoria www.dse.vic.gov.au Sustainability Victoria

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www.sustainability.vic.gov.au Environmental Protection Agency http://www.epa.vic.gov.au/ NSW Department of Environment and Conservation (DEC) NSW www.dec.nsw.gov.au Department of Energy, Utilities and Sustainability (DEUS) NSW http://www.deus.nsw.gov.au/ Environmental Protection Agency www.epa.nsw.gov.au Industry Associations Worldwide: Global Reporting Initiative http://www.globalreporting.org/Home International Institute for Sustainable Development www.iisd.org International Organization for Sustainable Development www.iosd.org World Business Council for Sustainable Development http://www.wbcsd.org United Nations Division for Sustainable Development www.un.org/esa/sustdev The Earth Charter Initiative www.earthcharter.org International Accounting Body UK - Sustainability Reporting Global Awards www.accaglobal.com Australia: Australian National Sustainability Network www.sustainabilitynetwork.org.au Ethical Investment Association (EIA) – Sustainability reporting industry association http://www.eia.org.au/ Australian SAM Sustainability Index http://www.aussi.net.au/ Business Council of Australia http://www.industry.gov.au/content/itrinternet/cmscontent.cfm?objectid=36D93D3A-65BF-4956B66BEC060380DBC3&indexPages=/content/sitemap.cfm?objectid=688E5014-AC1D-E9BBA487B64A9B74D1E7

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Environment Business Australia http://www.environmentbusiness.com.au/ Australian Industry Greenhouse Network http://www.aign.net.au/ SIRIS – Sustainable Investment Research Institute. They endorsed last year, and should endorse again. http://www.siris.com.au/ Total Environment Centre – Green Capital Programme. They were really friendly and have good exposure. http://www.tec.org.au/dev/greencapital/index.php Australian Business Limited – Strong focus on sustainability, and a good ally for credibility http://www.australianbusiness.com.au/ Sustainability Victoria – They have strong partnerships with Victorian business www.sustainability.vic.gov.au SPONSORSHIP LEADS Attached – one page brief and sponsorship hand-over and relevant articles

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