Sustainability Reporting Trends “Game Changing
Developments” June 2012 Mike Wallace Director, Focal Point USA Global Reporting Initiative wallace@globalreporting.orgVenue, Date

What is the current situation?

Range of Terminology• CSR -
Corporate Social Responsibility• CC - Corporate Citizenship• SD - Sustainable Development• ES - Environmental Sustainability• BE - Business Ethics• CE - Corporate Ethics• CG - Corporate Governance• ESG - Environmental, Social & Governance• IR - Integrated reporting Non-Financial Reporting

What is GRI’s role?

GRI’s Vision & MissionVisionA sustainable
global economy where organizationsmanage their economic, environmental, social andgovernance performance and impacts responsiblyand report transparently.MissionTo make sustainability reporting standard practice byproviding guidance and support to organizations.

GRI: Global Network Organization *Business
Academia *Civil Society *Mediating institutions Governments *Labor *Financial markets

The GRI Guidelines Environmental •
EN 3 - Direct energy consumption by primary energy source Labor • LA 7 - Rates of injury, occupational diseases, lost days and absenteeism, and number of work related fatalities by region. Human Rights • HR 4 - Total number of incidents of discrimination and actions taken Product Responsibility • PR 6 - Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, ad sponsorship. Economic • EC 4 – Significant financial assistance received from government.

What are we seeing?

Corporate Sustainability:A Progress Report October
2011 • Reviewed 3400 companies representing the national leaders from 34 countries around the world, including the 250 largest global companies • Ninety-five percent of the 250 largest companies in the world (G250 companies) now report on their corporate responsibility (CR) activities, two-thirds of non-reporters are based in the US. • CR reporting has gained ground within the Top 100 companies in each of the 34 countries surveyed. • The total number of reporting N100 companies increased by 11 percentage points, to 64 percent in 2011. • Eighty percent of G250 and 69 percent of N100 companies are now aligning to GRI reporting standards.

Global Growth in Reporting 1

Country Level SpecificsUSA – 9th
place from 74% up to 83% in 3 years 2008 versus 2011 of N100 companies 1

US Reporting Trends (Absolute figures)
Sustainability Reports in the USA GRI G3 + G3.1 GRI reference Non-GRI sustainability reportUS GRI data partner 46% growth in absolute number of GRI reports (w/ 47 index) 2010 - 2011 23 And counting!! 273 187 141 119 71 2007 2008 2009 2010 2011

Data Integrity 100% 90% 80%
21 112 415 41 70% 170 60% 167 50% Not assured Externally assured 40% 30% 23 125 446 35 20% 87 10% 40 0% Africa Asia Europe Latin America Northern Oceania America* Data from the Sustainability Disclosure Database as of 12 April 2012

Growing International Trends “Integrated Reporting”
2011 2010 13% 21% Not integrated Integrated 87% 79%*Sustainability Disclosure Database data from 1 February 2012

American GRI reportersGRI Sector Leaders:

Who really cares?

Increasing Stakeholders and Demand Modern
Due Diligence

GRI Reporting by Sector (2010)
300 250 200 150 100 50 0*Sustainability Disclosure Database data from 1 February 2012

Shareholder Initiatives & Coalitions• Principles
for Responsible Investment (PRI) [2006] – Currently represents over $30 Trillion in investment capital – 1000+ signatories• Investor Network on Climate Risk (INCR) [2003] – Currently represents over $10 Trillion in investment capital – 100+ members• Carbon Disclosure Project (CDP) [2002] – Currently represents over $71 Trillion in investment capital – act on behalf of 550+ institutional investors• Institutional Investors Group on Climate Change (IIGCC) [2001] – Currently represents $6 Trillion in investment capital – 70 members• Interfaith Center on Corporate Responsibility (ICCR) [1972] – Currently represents over $100 Billion – 300 members

Signatories to the PRI (US)
1000+ international signatoriesPARTIAL LIST OF ASSET OWNERS (200):• AFL-CIO Reserve Fund / AFL-CIO Staff Retirement Plan• CalPERS / CalSTRS• Connecticut Retirement Plans and Trust Funds (CRPTF)• General Board of Pension and Health Benefits United Methodist Church• Illinois State Board of Investments• Los Angeles County Employees Retirement Association (LACERA)• Maryland State Retirement and Pension System• New York City Employees Retirement System / New York State Local Retirement S• SEIU Pension Plans Master Trust• State Universities Retirement System of Illinois• Teachers Retirement System of the City of New York• Universal Health Care Foundation of Connecticut

Signatories to the PRI (US)
1000+ international signatoriesPARTIAL LIST OF INVESTMENT MANAGERS:• BlackRock • Boston Trust• Calvert Investments • Capital Group International• CBRE Investors • Clear Bridge Advisors• Domini Social Investments • MFS Investment Management• JPMorgan Asset Management • Principal Global Investors• Kohlberg Kravis Roberts & Co, LLP • T. Rowe Price• Krull & Company • Tower Capital Asset• Northern Trust Global Investments Management LP• Prudential Real Estate Investors• Russell Investments• TD Asset Management Inc.• The Townsend Group• TIAA - CREF

Mainstream Involvement

How are they conducting due
diligence?

Sustainability PerformanceGRI Reporters Presence: •
95% of the Dow Jones Sustainability Index • 78% of the FTSE4Good • 70% of the Global 100 • 70% of the NASDAQ OMX CRD Sustainability Index

Market Evolution300,000+ data terminalsglobally5,000+ companies
andclimbingSustainability Aspects• Emissions• Energy Consumption• Human Rights• Policies• Board Make-UpBuilt around GRI

Bloomberg ESG Peer Comparison

Environmental Criteria (2010)Company Environmental Total
Energy Total GHG Emission Water Consumption Total Waste Names Disclosure Consumption (Th Tonnes) (Thousands of cubic (Thousands of metric Score (Mwh) meters) tons) 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 Apple --- 12.40 --- n/a --- 9542.00 --- n/a --- n/a CA, Inc. n/a n/a --- --- n/a n/a --- --- --- --- Dell 37.98 40.31 676.00 619.90 366.19 406.25 1596.00 1683.00 52.61 100.00 EMC --- 54.26 --- 932.51 --- 386.26 --- --- --- --- Fujitsu 55.04 55.04 6638.90 7713.89 273.00 428.00 23106.00 24569.00 32.44 29.71 HP --- 44.19 --- 4046.00 --- 1951.00 --- 7647.00 --- 124.48 Intel --- 46.51 --- 5110.00 --- n/a --- 30379.32 --- 44.48 IBM --- 41.09 --- 6323.06 --- n/a --- --- --- 87.33Microsoft 11.63 n/a --- --- --- --- --- --- --- ---Toshiba 53.49 56.59 15398.33 15856.11 3078.00 3435.00 52930.00 55800.00 2610.00 291.00

Performance Over TimeMSCI World &
GRI 2002 to 2012 S&P 500 & GRI 2001 to 2011

Global Developments & Trends• SROs
- Stock Exchanges• Regulatory Developments – National & State Regulation – Supply Chain Implications• Supply Chain Developments• Harmonization – Associations, Initiatives & Institutions

Stock Exchange ActivityMay 2010 January
2011

Regulatory Developments "More governments are
making sustainability reporting mandatory.“• 142 regulatory instruments addressingsustainability reporting exist in over 30countries• 65% are classified as mandatory, the restvoluntary• United States • WH CEQ - EO 13514 • USPS, US Army, GSA, etc…. • SEC • Dodd-Frank • CA Transparency on Trafficking & Slavery

Supply Chain Developments • Sept
2011 – GSA • Oct 2011 – MS • Jan 2012 - Apple

Supply Chain Developments Customer Training
Suppliers GRI Stakeholders

GRI Global Harmonization

• ABB Association Activity •
ITT• Accenture  Johnson & Johnson• Abbott  Johnson Control• Alcoa  Life Technologies Corp• American Electric Power  McKesson Corp.• AT&T  Merck• CB Richard Ellis Group Inc.  Motorola• CH2MHill Companies, Ltd.  NexTera (Formerly FPL)• Chevron  Office Depot• Chubb  Owens Corning• Citi  PepsiCo• Coca-Cola  Pfizer• Conoco Philips  Praxair• Cummins  Proctor & Gamble Co.• Darden  Ryder• Deloitte  Sara Lee• Dow Chemical  SAP USA• Duke Energy  SAS• DuPont  Southern Company• Eastman Kodak Co.  Siemens Corp• EMC  Target Corporation• Exxon Mobil  Tyco• Freeport McMoran  UAL Corporation• General Electric  Weyerhauser• General Motors  Whirlpool Corporation• HSBC  Williams• IBM  Xerox• International Paper

Association Activity

What’s on the horizon –
G4?

Six main work streamsTechnical standardization
by editing Task ForceRevision of parts of G3(G3.1) or new content by Working GroupsHarmonization by Secretariat and TACG4 online by SecretariatXBRL G4 Taxonomy for G4 by SecretariatUpdating sector guidance (supplements)

G4 - Stepping Stone Towards
Integrated Reporting Sustainability Reporting Sustainability Disclosure Mainstreaming G4 Integrated Reporting Other paths to mainstreaming

GRI – Due Process SC
+ WG TAC BoDBoD Public Public Comment Comment Period Period

View Forward G4 timeline -
Working Groups and 2nd PCP 2011 2012 2013MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN Text Revision / Editing Task Force We are here We are here! Working Working Governance Public Comment Working Groups Public Comment Bodies give Preparatory Stage Groups Groups Final Edit LAUNCH Period 1 Meet Period 2 Final Vote Formed Mee tMAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN 2011 2012 2013 G4 Working Groups • Supply Chain Disclosure • Governance & Remuneration • Disclosure on Management • Boundary Approach • Application Level

View ForwardG4 timeline - Working
Groups and 2nd PCP • Anti-corruption • Biodiversity • GHG • OH&S • June 20 to Sept. 20, 2012

G4 PCP 1 - Participants
Total 1834Constituency Regional BreakdownBreakdown AFRICA 3% OCEANIA 5% ASIA Business NORTHERN 17% 29% AMERICA 15% Mediating LATIN Institution Civil Society AMERICA 57% Organization 19% 9% EUROPE 41% Financial Markets & Information Labor Users 1% 4%

More involvement with GRI?In addition
to getting started with GRI reporting,you can:• Join the Organizational Stakeholder Program• Become a US Sector Leader• Participate in Working Groups• Participate in Governance Structures

Cipriani Wall Street, 55 Wall
Street, New York, NY October 2-3, 2012Event brought to you by: www.COMMITForum.com

Thank you Mike Wallace Director,
Focal Point USA Global Reporting Initiative wallace@globalreporting.org Twitter: M_A_Wallace Linked In: http://www.linkedin.com/in/mikewallaceVenue, Date