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Corporate Sustainability Reporting in Canada
How Do We Measure Up?

• Stephanie Meyer
• Stratos Inc.
• 5th Canadian Pollution Prevention Roundtable
• June 7, 2001

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A Preview

• What is corporate sustainability reporting?
• Sustainability reporting and pollution prevention
  (P2)
• Drivers for sustainability reporting
• International trends
• How does Canada measure up?
• Where do we go from here?

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What is sustainability reporting?

• Public reporting on environmental, social and
  economic performance
• Many companies use an incremental approach, often
  beginning with environmental reporting

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What is sustainability reporting?
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What is sustainability reporting?
Corporate sustainability reports provide
stakeholders with information necessary to make
informed decisions, including

• Management employees
• Customers
• Neighbours and Communities
• Lenders/insurers

• Investors
• NGOs
• Industry Associations
• Regulators

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What does this have to do with P2?
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What is driving sustainability reporting?

• 1. External demands for information by
• Shareholders
• Lenders (e.g. World Bank)
• Socially responsible investment funds
• Customers (esp. in Europe)

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What is driving sustainability reporting?

• 2. Competitive advantage
• Establish credentials when moving into new
  markets, identifying new partners
• Demonstrate leadership
• Meet emerging expectations (e.g. GRI Guidelines)

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What is driving sustainability reporting?

• 3. Internal purposes
• Increase awareness among staff
• Provide an historical record
• Attract retain employees
• Efficiency in responding to requests

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International trends in reporting

• and Percentage of firms reporting
• Approximately 2000 environmental/sustainability
  reports worldwide
• 35 (or 88 companies) in the Fortune Global 250
  published an environmental or EHS report in 1999
• 50 of the 100 largest firms listed in Fortune
  magazines Global 500 (G100) produce global
  environmental reports

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International trends in reporting

• Which sectors are reporting?
• Non-industrial sectors (banking, insurance,
  communications, trade retail) report far less
  than most industrial sectors
• Sectors producing the most reports include
  chemicals forestry, pulp paper utilities oil
  gas pharmaceuticals and automotive

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International trends in reporting

• Which countries are leading the charge?
• Netherlands, U.K., Germany, Sweden, Norway and
  Denmark
• Seeing increases in Japan and USA
• Why?
• Mandatory reporting requirements are in place in
  Denmark and The Netherlands
• Relatively high societal pressure for corporate
  disclosure in the U.K., Germany and The
  Netherlands

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How does Canada measure up?

• Canada has been excluded from most international
  surveys
• While Canada is home to a small number of leading
  reporters, the general sense is that we are
  lagging behind

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Canadian Benchmark Survey Objectives

• Identify and analyze current reporting practices
  and trends in Canada
• Benchmark Canadian practice against emerging
  international norms
• Assist companies to improve reporting practices
• Stimulate demand
• For additional companies to begin reporting and
• Expand use of reports for investment, and other
  purposes.

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Survey Methodology

• Examine the quality and comprehensiveness of
  Canadian reports
• Survey 35 - 40 corporate reports
• Score against approx. 50 reporting elements
• Rank reports overall and by sector
• Analyse trends and best practices
• Use the Survey report as a tool to leverage
  improvement

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Current Survey Sponsors
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Preliminary Snapshot Reporting by the TSE 300
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Beyond the TSE 300
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Preliminary Snapshot Which sectors are
reporting?

• Leading Sectors
• Utilities
• Mining minerals
• Chemicals chemical products

• No Reports Identified in
• Pharmaceuticals
• Other Services

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Where do we go from here?

• Benchmark Survey report will be publicly
  available in October 2001
• www.stratos-sts.com
• To encourage additional companies to report we
  will need to stimulate demand
• Potential role for a wide range of stakeholders

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Parting Thoughts

• Sustainability reports are not an end in
  themselves, but rather a means toward achieving,
  reporting on and demonstrating accountability for
  performance improvements.