5 questions to enhance your next sustainability report

By Barb Brown and Sarah Corrigan

What do corporate responsibility practitioners do during July and August?  Vacation? We hope, for a couple of weeks, anyway.

But for many, summer is also the ideal time of year to step back and evaluate current and best practices for environmental, social and governance (ESG) disclosures. If your organization is considering reporting non-financial information next year, the summer months are prime time to begin planning.

Given major marketplace shifts within corporate reporting, evaluating your approach to reporting is particularly important this year. Organizations currently face transparency demands from multiple angles, including increasing requests for information from customers and investors, and the growing need to incorporate ESG principles into supplier management.

To read the full article please visit our monthly column Shift Happens on GreenBiz.com.

Top 3 reasons to take your sustainability report online in 2015

By: Jennifer Griffith, Senior Design Consultant

Increased transparency and external reporting are essential for companies. Yet, getting stakeholders to read a company sustainability report and derive value from it is one of the biggest obstacles for corporate responsibility reporting. When done right, online reporting helps to overcome this challenge. Online CR reports are more accessible, engaging and measurable than stand-alone print reports.

1. Report Accessibility

Offering your sustainability report online and supplementing it with additional formats for a variety of readers is the best way for stakeholders to have maximum accessibility to it and thus, greater opportunity to read it. A stand-alone print report limits its accessibility by virtue of its medium; the report is only available to the number of people less than or equal to the printed quantity, and only those who can physically get their hands on it.

In addition to offering your report online, several other supporting formats expand readership.

To read the full article, please visit GreenBiz.com.

Greening the government’s supply chain: federal procurement poised to drive sustainability reporting

October 14, 2014 | By Darrell Delamaide

As the federal government extends sustainability reporting to its supply chain, it needs to adopt more standardized frameworks for reporting than those now in place

The US federal government is poised to extend its sustainability reporting to its supply chain, giving further impetus to a best practice already encouraged by competition in the marketplace. Large government procurers, including the General Services Administration (GSA) and the Department of Defense, are inserting questions and requirements about sustainability into contracts with their largest vendors as they renew them.

‘We just renewed contracts with our two biggest packaging vendors,’ says Jed Ela, sustainability co-ordinator at GSA’s Federal Acquisition Service, which buys products and services not only for GSA’s own needs but also for those of many other federal agencies. ‘They had the ability to report carbon footprint at the customer level.’

To read the full article, please visit Corporate Secretary Magazine online.

BrownFlynn through the Eyes of a High School Senior

To start, I want to thank BrownFlynn for such a great opportunity to take a step outside of the classrooms and school hallways. I also want to point out that this is my first time being in any type of office setting, so some observations may appear more obvious to some. Before coming to BrownFlynn, my limited knowledge of the firm included their three practice areas: consulting, communications, and training. However, at that time, I didn’t really understand what those areas actually entailed. That being said, these are the things that I learned and the things that stood out to me most in my time here:

• Communication: This is an important tool for success in any area of life. I think everyone at BrownFlynn is either very aware of this or, most likely, they are all great by nature. From my limited amount of experience coordinating events at my school, I know how difficult it can be to rely on others. At BrownFlynn, they have to do this all the time, and yet they always seem to keep calm and collected. Everyone knows how to work efficiently and everything is coordinated to maintain a streamlined, smooth working environment.
• Work Ethic: Whether they’re working on a report, planning a layout, meeting with clients, or doing any of the other countless things that seem to be happening at BrownFlynn, everyone is always focused and giving their best effort. This is just what I picked up from being able to listen in on conversations about upcoming events and tasks, so I can only imagine how much they actually put into action.
• Atmosphere: Although the BrownFlynn team is always busy at work, they still make coming to work an enjoyable experience. They are always willing to help and support each other. Everyone’s ability to keep themselves and their clients so organized with meetings and deadlines is very impressive.

Though a large part of BrownFlynn’s work is with helping companies manage their sustainability efforts, they also practice sustainability in their own office. They have blue recycling bins at every desk and have worked to reduce their waste. They even make their own sustainability reports available to the public. Implementing these philosophies in their office really demonstrated to me how passionate BrownFlynn is about their policies.

A few of the specific things I participated in while here: I was able to attend a fun networking luncheon, a webinar hosted by BrownFlynn about GRI and SASB, numerous phone conferences, and I had the opportunity to help with some preliminary edits. These are all things that I have never experienced and I know will give me good footing when I begin my own jobs in the future.

By Mia Mastroianni, High School Senior, Laurel School

Sustainability reporting evolving as a management tool

By: Darrell Delamaide

An improved reporting process is helping companies identify gaps in their sustainability practices, which, when closed, can lead to big savings

The latest guidelines from the Global Reporting Initiative (GRI), issued less than a year ago, are turning sustainability reporting into more of a management tool and less of a marketing exercise.

The new version, called G4, introduces a whole set of guidelines on governance and places the emphasis on prioritizing which actions of the organization have a truly significant impact on the environment and society.
The focus is more on ‘how’ the report is produced, rather than on ‘what’ it finally says. In other words, it is designed to engage the organization from the C-suite on down in managing the impact rather than putting out a checklist of indicators.

This was the message in a training session with high-level government officials (including several procurement officers) conducted in Washington on April 23 and 24 by BrownFlynn, a sustainability consulting firm and the first US-certified GRI training partner. This training was conducted in partnership with the World Business Council for Sustainable Development at WBCSD’s US offices.

To read the full article in Corporate Secretary magazine please click here.

The long journey to sustainable procurement

By Mike Wallace

Bad news: Survey fatigue — already at significant levels — doesn’t seem to be improving. In fact, it could get much worse before it gets better. Good news: It could make our businesses more sustainable.

Anyone and everyone who examines his own sustainability performance, or footprint, quickly realizes that suppliers make up a big part of that footprint. This, in turn, leads the organization to realize that some sort of action on the supply chain is needed. This generally takes the shape of supplier codes of conduct, questionnaires, scorecards, surveys and/or supplier audit programs. Because everyone is in someone’s supply chain, we create a “circular loop” for ourselves. While complaining about survey fatigue, many companies turn around and subject suppliers to the very thing they complain about.

Tip of the transparent iceberg

It’s one thing for large-multinational corporations to do this, but when large public institutions start to explore sustainable procurement, we get a glimpse of the ripple effect. Federal, state and local governments, state universities and non-profit healthcare providers are assessing their own sustainability performance, which will lead them to assess their suppliers.

Whether you’re large, small, public or private, you are in someone’s supply chain and you inevitably will get that sustainability question. Are you ready to answer it?

Read more in our GreenBiz Shift Happens column here!

Transparency Is A Virtue

The European Parliament’s adoption of the directive for disclosure of non-financial information and diversity information marks the most recent example of how governments are valuing corporate transparency. Deputy Chief Executive of the Global Reporting Initiative, Teresa Fogelberg, said:

“This agreement demonstrates the EU’s strong commitment to corporate transparency and sustainability – supporting smart, sustainable and inclusive growth, and paving the way for a sustainable global economy.”

In addition, the Environmental Protection Agency (EPA) recently released a new version of the Report on Environment (the Report), outlining indicators that help the EPA monitor trends in the condition of the United States’ air, water, land, human exposure and health, ecological systems and sustainability. It is interesting to note that the EPA added sustainability as a new theme in 2014, responding to growing international concerns.  The sustainability theme only has one indicator as of now, but the EPA plans to develop this theme by collaborating with a variety of stakeholders and considering three important aspects of sustainability- intensity of energy use, water use and materials use.

Source: EPA Website

The new version of the Report provides new features: a conceptual framework to show how indicators relate to EPA concerns, interactive graphing, statistical information, trends related to where you live, and information about what you can do to help. All of these tools and the Report itself demonstrate how the EPA values disclosure of sustainability information in order to manage environmental and human health concerns and to inform the public. The EPA invites public commentary on the new version of the Report until April 27, 2014.

What do these government initiatives for transparency mean for your company and its sustainability efforts?

1. In general, government expectations for transparency will likely advance the sustainability reporting spectrum; newcomers will join the sustainability reporting bandwagon and advanced reporters will disclose more sustainability data and management approaches. Stakeholder engagement will likely incorporate government agencies and representatives as more regulations enforce transparency.
2. In the United States, proactive involvement with the EPA through public commentary on the Report on Environment and other initiatives may become a source of competitive advantage. Companies can collaborate with government agencies to determine the trajectory of government sustainability initiatives going forward.
3. For current sustainability reporters following the Global Reporting Initiative (GRI) framework, the Report on Environment may help inform materiality assessments, including:

• Prioritizing material topics, considering United States trends in environmental and human health issues.
• Measuring influence on stakeholders: Companies may want to interview more stakeholders affiliated with the government.
• Determing significance to companies: The role of government will become more significant to companies both in terms of risk and compliance to regulations and in terms of opportunities for government collaboration.

BrownFlynn is glad to see the international government support for and progression of sustainability reporting.  Join several United States government agencies at our next GRI-Certified G4 Training Course: GRI Sustainability Reporting Process April 23-24, 2014 at the World Business Council for Sustainable Development in Washington, D.C.

 

By Brittany VanderBeek, Analyst

 

U.S. shareholders break a record in environmental and social resolutions in 2014!

This week’s 2014 Proxy Review Webinar reinforced the leadership role shareholders are playing in influencing companies to address their environmental, social and governance (ESG) impacts.

According to Heidi Welsh, Executive Director of the Sustainable Investment Institute, U.S. shareholders are breaking records in the number of social and environmental proposals filed in 2014 (417 as of February 14!).  The most active proposal filers in 2014 have been SRI groups (31%), pension funds (24%) and religious groups (17%).  The issues addressed include political activity, environment (climate change and energy), sustainability and diversity.  The increase in discussion of political activity relates to a changing context, as shareholders are interested in companies’ political spending and lobbying and whether or not these activities align with their stated corporate responsibility objectives.  Where companies devote their time and money in political activity can leave a lasting mark; as Timothy Smith, Director of ESG Management at Walden Asset Management, said, “the power of the purse in influencing elections and public policy is real.”

One interesting trend is that shareholders now have a systemic view of corporate responsibility topics. Andrew Behar, the CEO of As You Sow, discussed the interconnectedness of environmental and social issues and how shareholders no longer view these issues in isolation.  For example, Behar described how corporate political spending relates to energy policy, which relates to climate change, which relates to water and agriculture, which relate to human rights.  In addition, shareholder requests for sustainability reporting disclosures are expanding in focus, from purely environmental efforts to more social topics and supply chain issues.  These findings mirror those highlighted in the State of Green Business 2014, as companies are “integrating social issues into their sustainability programs” and seeing “how improving lives makes good business sense.”

What are the key takeaways for companies?

• Environmental and social issues are of growing interest to shareholders, increasing pressure on companies to demonstrate management of these issues.
• Shareholder engagement is an invaluable tool for risk management; often, shareholders raise environmental and social topics early, which helps companies consider what topics they should address now and in the future.
• Shareholders are looking for transparency and accountability, particularly related to political activity.  Companies will need to evaluate how their current reporting practices meet the needs of shareholders.  Many will turn to the Global Reporting Initiative G4 Sustainability Reporting Guidelines for help in determining what topics to prioritize. This is accomplished through materiality assessments which provide an outline for companies to organize and prioritize their corporate responsibility objectives, performance, governance and management approach.

I look forward to seeing how shareholder environmental and social resolutions evolve, how companies respond, and what corporate responsibility best practices emerge throughout the rest of the year.  How will your company address shareholder concerns and engage with shareholders in 2014?

By Brittany VanderBeek, Analyst

Mike Wallace (former Director of GRI’s North American operations) joins BrownFlynn as Managing Director!

This week, BrownFlynn announced the addition of Mike Wallace, former director of theGlobal Reporting Initiative’s (GRI’s) North American operations, to its leadership team.  In his new role, Mike serves as Managing Director of BrownFlynn with responsibility for expanding the Firm’s market presence and brand in North America, developing strategic partnerships, providing innovative corporate responsibility and sustainability solutions to clients, and helping shape the strategic direction of the Firm. Mike will be based in Los Angeles, CA, expanding BrownFlynn’s geographic reach and opening up new business opportunities for the Firm.

“We’re delighted to have Mike on board and are excited to capitalize on the market growth potential afforded by his joining our leadership team,” said Barb Brown, principal and co-founder of BrownFlynn. “The demand on corporations and other organizations to better measure, manage and disclose sustainability information and initiatives is rapidly expanding across North America—and globally. We believe BrownFlynn is well positioned to respond to this demand through our highly skilled and experienced team and diverse corporate responsibility and sustainability services,” she added.

Mike is an internationally recognized expert and leader in the sustainability field with 20 years’ experience advising corporations, non-profits and government agencies on the development, implementation and continuous improvement of sustainability strategies and initiatives. For the past four years, he led the successful re-entry and funding of GRI into the North American market after spending one year at GRI’s headquarters in Amsterdam. BrownFlynn has known and collaborated with Mike during his tenure at GRI through the Firm’s role as GRI’s first U.S.-certified training organization and organizational stakeholder.

In commenting on his new career decision, Mike said, “I am honored to join BrownFlynn and am looking forward to significant growth—both personally and as a Firm–in the coming years. After exploring many options, I chose BrownFlynn as the ideal company and the one most closely aligned with my values and professional goals. The Firm’s reputable and consistent market engagement made them a fantastic choice for me in all corners of the sustainability field.”

Looking to the future, BrownFlynn believes sustainability will become further institutionalized and accelerated as non-financial disclosure becomes increasingly written into national laws, stock exchange rules and procurement policies. “Such changes will open new doors for BrownFlynn, enabling us to develop new business and continue our growth trajectory. We are eager to seize the opportunities ahead,” said Margie Flynn, the Firm’s principal and co-founder.

About Mike Wallace

As Managing Director, Mike Wallace is responsible for expanding BrownFlynn’s market penetration across North America, developing new and existing strategic partnerships, providing innovative corporate responsibility and sustainability solutions to clients, and helping shape the strategic direction of the Firm. Having helped establish and then direct GRI’s North American operations from 2010 to 2014, Mike was instrumental in driving sustainability reporting across the North American economy.

Mike’s 20 years of international experience in the sustainability field provides BrownFlynn clients and business partners with a global view of the sustainability field. Having given expert testimony to the European Commission, US SEC, EPA and GSA, and having presented on the topic of sustainability and reporting at hundreds of events, Mike’s expertise in the field is highly regarded and valued by a range of colleagues and organizations in the field.

Mike enjoys traveling, cycling, skiing and relaxing at home with his wife Clair. He has traveled as far south as Tasmania, Australia; as far North as the Isles of Lewis and Harris, Scotland; as remote as the Galapagos Islands; as low as Death Valley; and as high as the Himalayas. He looks forward to continuing his exploration of the world, moving into more academic and research related work, and eventually hopes to write a book or two.

5 reasons CR professionals need a value chain map

By Cora Lee Mooney, Director of Learning & Senior Consultant

Value chain mapping is a process that identifies the main activities associated with a company’s service or product line and is often used in corporate strategy in order to identify performance improvement opportunities. Corporate responsibility (CR) professionals are beginning to use value chain mapping in the development of sustainability strategy and materiality assessments.

Obtaining a clear picture of the fundamental inputs and outputs of your business provides valuable information for sustainability program development, as well as CSR reporting. CR professionals are developing sustainability-specific value chain maps in order to systematically assess the company’s impacts throughout product sourcing, transport, development, use and disposal.

To read the full blog post on GreenBiz.com please click here!