Reporting Requirement - Stakeholder Forum

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Reporting Requirement - Stakeholder Forum

Percentage of 100

largest companies

reporting on CSR

Look at:

Sth Africa, Brazil,

Nigeria, Mexico,

China, Sth Korea,

Singapore, Chile,

India


Sustainability reporting

Regulatory landscape today

• 9 countries and 1

region: regulation on

sustainability

reporting

• 8 countries state

owned company

reporting requirement

Copenaghen, 16 Feb 2012


Examples of National Legislation

and Policies

Country

CHINA

INDIA

JAPAN

USA

Legislation / Policy

Instrument

Environmental

Disclosure Act,

2007

Voluntary

Guidelines on CSR,

2009

Guidelines on

Environmental

Reporting , 2007

SEC Requirements

-Environment

-Extractive Sector

(Dodd-Frank Act)

Requirement

Companies to

disclose

environmental

information

Companies

encouraged to

publicly report on

CSR

Companies to

report on

environmental

performance

Listed companies

to disclose environ.

& climate-change

related

information, plus

mine safety,

conflict minerals

Copenaghen, 16 Feb 2012


Examples of National Legislation

and Policies

Country Legislation Scope – Reporting

Requirement

FRANCE

NRE, 2001 & Code de

Commerce, 2011

(Grenelle II)

Listed companies and

companies of a

certain size – to

report on info

specified in a decree

DENMARK

SPAIN

Danish Financial

Statements Act, 2008

Sustainable Economy

Law, 2011

Companies of a

certain size - to

report or explain

Public enterprises and

listed companies of a

certain size – to

report

NORWAY

New Proposed

Norwegian

Accounting

Legislation

UK Companies Act, 2006 ,

2010 - reinstatement

OFR

Companies of a

certain size – to

report on CSR

Listed companies – to

report on env&social

matters

Copenaghen, 16 Feb 2012


State-Owned Companies

Country Name Year

Sweden

Guidelines for External

Reporting by SOCs

2007

China Guidelines on CSR 2008

The

Netherlands

Decision, MoF 2010

Spain Sustainable Economy Law 2011

Norway New mandatory reporting 2011

Finland Government Resolution 2011

Brazil de-facto reporters 2012

India New mandatory reporting 2012

Copenaghen, 16 Feb 2012


Stock Exchanges & CSR Disclosure:

8 countries

COUNTRY BODY INITIATIVE

BRAZIL

AUSTRALIA

CHINA

INDIA

MALAYSIA

BM&FBOVESPA Since 2012, BM&FBOVESPA recommends

that listed companies provide information

on whether they publish a regular

sustainability report, or explain why if

they do not.

Australian

Securities

Exchange (ASX)

Shenzen Stock

Exchange

Securities and

Exchange

Board of India

(SEBI)

Since 2010 companies listed on ASX must

disclose if they have developed a code of

conduct on environmental risks and

controls

Since 2006 listed companies are

encouraged to establish a social

responsibility mechanism & regularly

prepare social responsibility reports

In 2011 SEBI mandated listed companies

to submit Business Responsibility Reports

describing measures taken along key

principles enunciated in the 2011

"National Voluntary Guidelines on Social,

Environmental and Economic

Responsibilities of Business”

Bursa Malaysia Since 2008 companies and their

subsidiaries are required to disclose CSR

activities or practices undertaken


Stock Exchanges & CSR Disclosure

COUNTRY BODY INITIATIVE

PAKISTAN

Pakistan

Security

Exchange

Commission:

Companies

Since 2009 a General Order requires

all public companies to annually

provide descriptive & monetary

disclosures of CSR activities

undertaken

SINGAPORE Singapore

Exchange

In 2011 Singapore Exchange

adopted a Policy Statement & Guide

to Sustainability Reporting which

describes sustainability reporting &

sets out broad principles to guide

listed companies in formulating

their sustainability reporting

frameworks

SOUTH

AFRICA

Johannesbur

g Stock

Exchange

Since 2010 over 450 companies

listed are required to produce an

integrated report.


Stock Exchanges & CSR Disclosure


Danish Financial Statements Act –

Legal requirements for reporting

What?

Since 1 January 2009 large Danish businesses

must report on:

1. The business's social responsibility policies;

2. How the business translates its social

responsibility policies into action;

3. The business's evaluation of what has been

achieved through social responsibility initiatives,

and any expectations it has regarding future

initiatives.

→If the business has not formulated any social

responsibility policies, this information must be

disclosed in the management’s review.

Copenaghen, 16 Feb 2012


Positive impact of DK report or

explain law

2 impact assessment STUDIES

– 90% of large Danish business comply

– more companies report on results, and on topics

(e.g. environment and climate, human rights,

labor).

– Very few explain report they do no CSR

– The company boards get engaged

Mindset of business seems to change. This was

main reason why the legal requirement was

introduced.

Copenaghen, 16 Feb 2012


Is there a proof of impact of

regulation?

• Denmark: 2 nd assessment study : 24

/11/2011

– More reports and better reports!

• Harvard – London School of Economics

– Regulation leads to better reports and

better management

• KPMG study : 3 risers are Denmark,

South Africa and France: all regulators

– More reports, board involvement

Copenaghen, 16 Feb 2012


Corporate Sustainability

Reporting Coalition

Led by Aviva Investors, the coalition -

convened for Rio+20– calls on United

Nations member states to commit to

develop a global policy framework that

requires listed and large private companies

to integrate sustainability information

throughout their annual report and

accounts – or explain why if they do not do

so.

Aviva plc

Aviva Investors

Association of Chartered Certified

Accountants

BT Pension Scheme Management

Limited

CA Cheuvreux

Carbon Disclosure Project

Calvert Investment

Ceres

Church of Sweden

Climate Change Capital

Colonial First State Global Asset

Management

CorporateRegister.com Limited

Cyrte Investments

Delta Lloyd Asset

Management

EIRIS

Environment Agency Active

Pension Fund

Ethos Foundation

FRR Fonds de réserve pour les

Retraites

FTSE

Generation Investment

Management

Global Reporting Initiative

Hermes

Illac Ltd

MN-Services

Numaï Partners

PaxWorld Management LLC

Rabobank Pensionfund

Sparinvest Group

Stakeholder Forum

The Co-operative Asset

Management

Traidcraft

Trillium Asset

Management, LLC

Triodos Investment

Management B.V.

UN Global Compact

University of St Andrews

Endowment Fund

Via Gutenberg

Vigeo

VIP eV

WWF-UK

Copenaghen, 16 Feb 2012


Green Economy Coalition (GEC)

A multi-stakeholder coalition whose

vision is ‘A resilient economy that

provides a better quality of life for all

within the ecological limits of the

planet’. The coalition’s mission is to

accelerate the transition to a new green

economy.

www.greeneconomycoalition.org

Copenaghen, 16 Feb 2012

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