VideoCeres heeded these solicitations and raised funds to create the GRI, which is based in Amsterdam and features a voluntary board of directors that includes several prominent corporate leaders. The GRI's sustainability reporting template ventures beyond environmental performance to include more than 140 social, economic, and environmental indicators, "realizing population, human rights, labor, and ecological impact are intertwined and interdependent," explains Massie. "Rather than produce multiple, sliver-sized reports on each topic, we wanted to integrate them all into one large report, what some people call 'triple bottom-line reporting.' "
Suncor did just that in its 2003 biannual report, listing its economic, social, and environmental commitments, then commenting on its progress and following up with the measures it plans to take to achieve its goals. For example, the report contains detailed information about environmental policy and performance, noting the company's work to reduce greenhouse gas emissions like carbon dioxide and methane, protect wildlife and landscapes, reclaim disturbed land, and adopt comprehensive approaches to water management. Ditto the sections on economic performance (drawn largely from its annual report) and social issues like community relations, employee relations, and employee health and safety.
Bang for the Buck
Another company that follows some GRI guidelines in publishing its sustainability report is FedEx Kinko's. Like Suncor's, FedEx Kinko's earlier reports focused on environmental issues, but since 2002 it has issued sustainability reports, including economic and social performance data.
"To have a sustainable economic model — in other words, a business — one must realize that it is tied to the ecological systems that provide natural resources, clean air, and potable water to operate that business," says Larry Rogero, director of environmental affairs for Office and Print Services at the Dallas-based company. "If people in regions of the world where you do not currently operate lack access to clean drinking water — and right now there are 2 billion people denied this fundamental right — or they lack a stable social fabric that includes law, order, and appropriate governance, then you will be closed out in terms of expanding your business into that market."
Rogero adds that sustainability reporting is "bottom-line financial stuff. Businesses will not be sustainable without a commitment to the environment and human rights," he argues.
Bristol-Myers Squibb's 2004 sustainability report (also written to GRI guidelines) lists goals it intends to reach by 2010, such as reducing water usage by 10 percent from its 2001 baseline year. In countries where water resources are severely stressed, the New York-based pharmaceutical company hopes to reduce usage by 20 percent from its 2001 baseline year. Bristol-Myers Squibb is further striving to reduce total greenhouse gas emissions by 10 percent from its 2001 baseline year, nonhazardous waste by 20 percent from its 2002 baseline year, and off-site hazardous waste disposal by 50 percent from its 2001 baseline year. These are but a few of the company's plans. The most recent review was conducted by ICF Consulting Services LLC, which does a full audit of the annual report.
Andrew R.J. Bonfield, senior vice president and CFO of Bristol-Myers Squibb, believes there is business value in sustainability. "Many of the benefits of our sustainability efforts can be calculated, such as cost savings related to energy and waste reduction, and the benefits of protecting the health and welfare of employees and preserving the environment," he says. "While there are other benefits that are more difficult to calculate, they are vitally important because they are core to our value as a company whose mission is to extend and enhance human life."
Savitz of PwC agrees that there is bang for the buck invested in sustainability development and reporting. "If you can drive down your occupational injuries, you will save a lot of money in terms of insurance and workers' compensation," he says. "If you are not measuring these on a systematic basis, you cannot reduce these costs. Same thing with measuring employee satisfaction [a GRI performance indicator]; turnover is a huge cost, since people are the heart of a service company. Nowadays, if you don't have a policy on human rights or child labor overseas, the black eye will affect your stock price and the price of capital."
Audit Questions
Sustainability reporting is in its infancy, hence several companies' admissions of imperfection. FedEx Kinko's, for example, stresses that its report is the most comprehensive review of its ecological footprint to date, but that it is "not a complete assessment." The company lists several portions of its business operations that it is currently unable to assess, but intends to do so in the future.
Pittsburgh-based Alcoa Inc. also produces a GRI-modeled sustainability report, but the company has yet to submit it to an external audit, though it stands by its internal verification processes. "Outside verification is expensive," says Kevin G. Lowery, a spokesman for the aluminum giant. "We've looked into the verification aspects and continue to explore it."
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