The 2nd Annual North American Conference on Corporate Responsibility Communication and Reporting

1
The 2nd Annual North American Conference on
Corporate Responsibility Communication and
Reporting

• Capturing the triple bottom line in an effective
  sustainability report

Presented on June 15, 2006 by Joanne
Westwood Manager, Accountability Programs
2
Presentation overview

• History of sustainability reporting at Vancity
• Deciding what to report
• Our Statement of Values and Commitments
• Reporting standards
• Stakeholder engagement
• Preparing our report
• Communicating our report
• Why we report

3

• History of sustainability reporting at Vancity

4

• Began to include social and environmental
  information in Annual Reports
• Adopted AA1000 framework
• Piloted the 2002 GRI Sustainability Reporting
  Guidelines
• Reported in accordance with the 2002 GRI
  Sustainability Reporting Guidelines
• Expanded report to include Citizens Bank of
  Canada
• Integrated annual and sustainability report?

5

• We currently produce a report once every two
  years. Our next report the Vancity Groups
  2004-05 Accountability Report will be released
  July/August 2006.

6

• Deciding what to report

7

• To help us decide what to report, we are guided
  by
• Our Statement of Values and Commitments
• Reporting standards
• Stakeholder input

8
Statement of Values and Commitments

• In 2000, we engaged with stakeholders to obtain
  their views on our core values and purpose
• Through this process, employees, members and
  community emerged as our key stakeholders
• The resulting Statement of Values and Commitments
  includes concrete commitments and lists the ways
  that we will live these commitments

9

• The Statement provides a meaningful framework for
  our report and stakeholder engagement
• The performance sections of our report measure
  how well we are living our commitments
• Outstanding service
• Great place to work
• Responsible financial managers
• Leading by example

10

• The final commitment is We will be accountable
  for living up to our commitments by
• Making continuous and measurable progress in
  meeting our commitments
• Involving our members, staff and communities in
  measuring our performance and reporting the
  findings in a public, externally verified report

11
Reporting standards GRI

• Report content is in accordance with the Global
  Reporting Initiatives 2002 Sustainability
  Reporting Guidelines
• Includes financial services sector supplements
  for social and environmental indicators
• We must report on each indicator, or include a
  reason for the indicators omission

12
Reporting standards AA1000

• Reporting process is guided by the AA1000
  framework for social, environmental, and ethical
  accounting, auditing and reporting.
• Stakeholder model, overarching principle of
  inclusivity
• External verification process is guided by AA1000
  Assurance Standard.
• Completeness
• Responsiveness
• Materiality

13

• Completeness
• Do we effectively identify and understand our
  social, ethical and environmental impacts?
• Materiality
• Is the information in our report sufficient to
  enable stakeholders to make informed judgments,
  decisions and actions?
• Defining what is material remains a key challenge
  for us
• Responsiveness
• Do we respond adequately in our report to
  stakeholder concerns and provide adequate
  indicators of associated changes in performance

14
Stakeholder input
15
Stakeholder input

• We engage with stakeholders to help us
• Identify key issues relevant to our stakeholders
• Identify and develop performance measures
• Measure and understand our performance
• Improve our performance and set targets and
  action plans
• Improve our reports (content and design)

16
Stakeholder input an example

• In spring 2006, we held two consultations with
  stakeholders (Toronto and Vancouver)
• The purpose was to obtain feedback that would
• Provide readers of the report with an additional
  level of assurance as to the reports
  completeness, materiality and responsiveness
• Help us improve the current report, as well as
  future reports

17
Stakeholder input an example

• 27 stakeholders consulted included
• Local community leaders
• Subject matter experts
• Members and employees
• A report summarizing their feedback was written
  by the external moderator
• A two-page summary was circulated to
  participating stakeholders for sign-off

18
Stakeholder input an example

• This feedback, along with Vancitys response, was
  included in the final version of the report

19
Stakeholder input an example

• Suggestions for improvement were incorporated
  into report prior to its publication, where
  possible
• This process was cited as one of the reasons we
  received a 2005 Ceres-ACCA award for our most
  recent Accountability Report, and why we were
  ranked 1 in Stratos ranking of Canadian
  sustainability reports

20

• Preparing our report

21

• Identify performance measures and issues
• In consultation with business units and other
  stakeholders
• Performance measures approved by the Board of
  Directors
• Collect data
• Increasingly a decentralized approach
• Write report
• Management write the report
• Our communications group edits the report

22

• Report content is externally verified
• External verification conducted in key phases
• Extensive review and approval process
• Executive take ownership for a particular
  performance section, including future targets and
  action plans
• Stakeholder input incorporated
• Social Audit Committee (comprised of Board and
  Executive) review the report
• Vancitys and Citizens Banks Board of Directors
  approve the report

23

• Once the report is complete
• Progress made against targets and action plans
  are tracked quarterly
• Two-year cycle allows us to incorporate any new
  targets or action plans into the annual business
  planning process

24

• Communicating our report

25

• We know that
• Members find our report dense and a little
  overwhelming
• Employees are unlikely to read the entire report
  in one sitting, but say its great as a reference
  tool
• Local community leaders and sustainability
  reporting / corporate responsibility experts
  generally have high praise for the report
• We dont view our report as a communications
  tool, but as a way to demonstrate accountability
  to our stakeholders
• We want our members to know that we produce a
  report, why we report, and what it means to them

26

• Well produce a summary brochure which will be
  mailed to all members
• The brochure will
• Highlight our performance both success and
  challenges
• Tell members why we report and what it means to
  them
• Be tailored to both Vancity and Citizens Bank
  members
• In addition, well include articles in member
  newsletters and on our website

27

• For employees, well post tailored communications
  on both Vancitys and Citizens Bank intranets
• Well make presentation to employees
• Well also have some activities to build
  awareness and understanding

28

• Why we report

29

• First and foremost, its an internal management
  tool that drives continuous performance
• It helps us manage risk
• By engaging with our members, employees and
  communities, we strengthen our relationships with
  them and are better positioned to understand, and
  respond to, their needs and expectations

30

• By demonstrating accountability, its a way to
  enhance our reputation and differentiate
  ourselves from our competitors
• This leads to improved members and employee
  recruitment and retention
• Survey results tell us
• 85 of Vancitys members told us they feel we use
  our resources and expertise to benefit the
  community and the environment
• Even more members trust us to make socially and
  environmentally responsible business decisions

31

• 91 of our employees say that what Vancity does
  for the community and environment makes them feel
  good about working at Vancity
• Members who believe this are more likely to be
  satisfied overall with service at our credit
  union or Bank
• In addition, a 2005 Ipsos Reid survey showed our
  favourable reputation rating at 92 percent
  making us first among the BC-based organizations
  named in the research

32
Thank you! Any questions?

• Joanne Westwood, Manager, Accountability Programs
• Joanne_Westwood_at_Vancity.com
• [phone]