Today I’m joined by Paul Broekhof, **Director of Education at the Global Reporting Initiative.

GRI is not only the global pioneer of sustainability reporting which is currently used by over 78% of the largest 250 global companies — it is also a co-constructor of the European Sustainability Reporting Standards, the ESRS.

Paul leads GRI’s global education and certification programmes, including the GRI-certified ESRS pathway that leads to the title “GRI Certified ESRS Sustainability Professional.”

Today we’ll talk about how ESRS learning is designed to stay robust despite regulatory change, and what that means for professionals deciding whether now is the right time to start.

Paul, welcome — it’s great to have you with us.

Simon Pitsillides: ESRS is still evolving. How has GRI designed its learning so it stays robust even when the regulation itself continues to change?

Paul Broekhof: Hi Simon, thank you for having me on your podcast.

We designed the certification program for reporting with the ESRS in 2024. Looking at what was ahead, looking at the challenges that so many companies would be facing once they were obligated to start reporting with the ESRS, we asked ourselves: how can we best support the thousands of reporters-to-be. Many of them would be new to sustainability reporting, so what should we focus on first? We decided that the best way to start would be to focus on the reporting process, rather than on the content and disclosures of the standards. By “reporting process”, I mean everything from scoping and stakeholder engagement through materiality analysis, data collection, assurance, and ultimately publishing.  After all, reporters spend some time reading the specific datapoints they need to report on and collecting data., but when producing a report for the first time, it is crucial to also understand all the steps involved in the reporting process — and this is where guidance from us can be especially helpful. Once that foundation was in place, we planned to create courses on specific standards, a bit like we have done for some of the GRI Standards. So the idea was always to make learners familiar with the reporting journey, the process, before diving into the details of the standards. This design choice has proven to be very robust, because, as you well know, in February 2025, the Omnibus proposal was published. It proposed a lot of changes to the CSRD and the ESRS, but these changes hardly touched upon the actual reporting process.

SP: GRI often describes ESRS learning as process-based rather than version-dependent. What does that actually mean in practice for professionals on the ground?

PB: Indeed, the ESRS training courses are based on the reporting process. That means that anyone who is or will be involved in reporting with the ESRS for their own company or for their clients will build a solid and practical foundation by taking our ESRS certification program. To give you two examples, the ESRS course on stakeholder engagement is relevant to the ESRS reporting process, regardless of which elements of the Omnibus proposal are accepted by the EU and its member countries. Even though different reporting standards may use slightly different definitions of stakeholders, the practice and principles of stakeholder engagement apply to all of them, not only to ESRS reporting but also to reporting with the GRI standards. It is a pretty generic skill to have.

A second example is the ESRS course on double materiality. It is one of the core concepts of the ESRS, and it basically means that when looking at sustainability matters, for example climate change, one should not only look at how climate change affects the company and its investors financially, let’s say the financial angle, but also at how the company itself affects climate change and what impacts it has on its stakeholders, which is the impact angle. That concept is still at the core of ESRS reporting and will be long after the dust around the proposed changes to the ESRS is settled, even if some technicalities do end up changing in the amended ESRS

So even if specific datapoints or thresholds change following the Omnibus proposal, having the skills to perform solid stakeholder engagement and materiality assessment doesn’t become obsolete – they’re transferable across reporting instruments and over time.

SP: What are the core skills and ways of thinking that ESRS learning is really trying to build, beyond just understanding the standards themselves?

PB: Well, as you know, GRI has played an important role in the creation of the ESRS. Much of what characterizes the GRI Standards has been adopted in the ESRS. Sustainability reporting is our core business, so to speak, so that is what we cover in our courses. As I mentioned earlier, the ESRS are based on double materiality. Our training course on double materiality will give the learners a solid and much-needed understanding of what double materiality is and how it applies not only to the ESRS but also to regions of the world where the IFRS Sustainability Standards, are being introduced. In today’s world, sustainability reporting is about impact and financial materiality and anyone involved in sustainability reporting should be aware of the different reporting tools for both.

Now, double materiality may be a core aspect of the ESRS, but we cover a lot more in the ESRS certification program. We tried to cover every aspect of the reporting process, and  that is how we came up with a program, of six courses. It starts with a quick introduction to the CSRD and the ESRS, then moving on to stakeholder engagement, double materiality assessment, and data collection. That last one, the data collection course is the one where we really dive into some of the reporting standards themselves, like E1, about climate change, S2, about workers in the value chain and G1 which is about Business Conduct.

But we also included a course on preparing for external assurance. The required level of external assurance was changed through the Omnibus proposal (now organizations need to prepare for limited assurance only), but the fact that external assurance must be done has not changed. Assurance is likely to be something new for first-time sustainability reporters, and this course prepares them for it.

The last course I want to mention is the digital reporting course, which covers another generic concept. Of course, the concept of digital sustainability reporting is not unique to the ESRS, but it is a recent development that many reporters still have to wrap their heads around. Many reporters are still unclear what terms like XBRL, or taxonomy mean. This course explains very clearly what digital reporting is and what it means for the reporting profession, what it looks like today and what we can expect in the future.

I want to emphasize that we have made all ESRS courses as practical as possible by including case studies and taking examples from real reporting practice. We followed the same approach as we do with all our training courses: focusing on the practice of sustainability reporting.

SP: When guidance evolves or updates are issued, how does GRI ensure continuity for learners already in certified ESRS pathways?

(note: we are already informing learners that they will be able to join a free FBRH led half day workshop which will be focused on any updates)

PB: Until December last year, the Omnibus proposal was still very much under discussion and it was still unclear what elements were going to be adopted. Of course, the proposal itself was important enough for course participants to be aware of, so we included a section on the Omnibus proposal in all our ESRS certification courses. We updated that section every time we learned that specific elements of the proposal had been agreed upon by the EU. Behind the scenes, the team that develops these courses is continuously tracking the Omnibus discussions to make sure that what ends up in the courses aligns with the reality of the CSRD and the ESRS as it develops.

By now, January 2026, the discussion of the Omnibus proposal has been completed and it is clear which of the proposed changes to CSRD are adopted. These changes will be reflected in the next update on the training courses, and all our students who bought a seat on the ESRS courses will be given access to the updated versions. But, because most of the proposed changes were about CSRD scope and the reporting timelines, and not about the reporting concepts or process, I am confident that the course updates that we will need to make will be quite limited.

BTW, I know that you run short, free workshops on updates to the ESRS for your own course participants. That is also is great way of keeping learners informed of what is going on.

SP: For professionals wondering whether now is the right time to start ESRS learning, what reassurance would you give them?

PB: That is a very good question. One outcome of the Omnibus proposal is that the reporting obligations for wave 2 and wave 3 companies have been delayed by two years. It would be a mistake to conclude that if your company is part of wave 2 or wave 3, you can sit back and relax for another two years. What we hear consistently from companies that have started to prepare for reporting under the CSRD, is that they underestimated the effort to have their staff trained and the controls in place that are needed for a proper reporting process. Consistently, their advice is to start early with preparations and go through the full reporting process well before the deadline. Use the two years you have been given to prepare, so that when you have to submit your first report, you can be confident that the process will run smoothly.

So, concretely, how should you prepare if you want to start today?

You know that the reporting standards themselves are still under revision, and are expected to be finalized somewhere mid 2026. So I would recommend that professionals start familiarising themselves with the reporting process and not go too deep into the standards yet. The next release of the ESRS will have far fewer datapoints than the initial release, so don’t dive into data-collection details today that may turn out to be irrelevant in the future.

So, focus on the reporting process first. A great way to start is by taking the ESRS certification courses available on the GRI Academy and through some of our certified training partners, like FBRH. That prepares you for the next step, which is to contact one or two peer organizations that have already started their reporting process or have completed the necessary preparations. They can give very practical advice on what your next steps should be. This is a great way to learn from the pitfalls encountered by others. That way, when the revised standards are finalized, you’re not starting from zero, instead, you’re ready to plug them into an established process.

Closing statement by Simon Pitsillides:

The key message here is simple: ESRS isn’t about waiting for certainty — it’s about building capability.
When learning is process-based it stays relevant, even as regulation evolves.

For professionals who want to move forward with confidence rather than hesitation, that’s the difference that matters.

And if you’d like to explore the GRI-certified ESRS pathway offered by FBRH in more detail, you can find more information at www.fbrh.co.uk/esrs.

Paul, thank you — this has been a genuinely valuable conversation.

The post An interview with Paul Broekhof on how ESRS learning stays robust despite regulatory change appeared first on SustainCase - Sustainability Magazine.

Cecilia Puppo: We are now more aware than ever of the environmental cost that a product or a service have, alongside the perception of financial costs. This has led to a favoured position for the organisations and companies that are able to be more sustainable and demonstrate that.

Life Cycle Assessment (LCA) is the best tool or lens available for understanding the impacts of a given product or service. It is not limited to the activities of a company but covers the entire life cycle. Although the extent of consideration boundaries can vary, LCA is intended to consider the entire life cycle; from cradle to grave in the case of a linear economy, or from cradle to cradle in a circular economy.

Each LCA is unique and tailor-made for one or more products/services. This is due to the first step in conducting an LCA: defining the scope and goal. It is an essential step that drives the rest of the study, as it sets the boundaries of what to include, what unit to consider, and what the aim of the study is. It’s then followed by the inventory analysis, impact assessment, and interpretation of the results. The study stages influence each other and are re-visited and re-evaluated until a conclusion is reached.

The clear vision provided by LCA makes the real difference for stakeholders to identify the hotspots that may have a negative impact to mitigate, as well as offer an opportunity to emphasise positive impacts. Thus, a truly more sustainable solution may be uncovered.

SP: Why do LCA and sustainability reporting go hand-in-hand?

Qoncert is a team of engineers with competence in environmental sustainability matters, circular economy, and certification

CP: We believe that a more informed decision is adherently a better decision. While Sustainability Reporting focuses on the umbrella below which all the corporate activities take place, product or service Life Cycle Assessment takes an individual activity and dissects it, revealing more details.

Informing and selecting material impacts are parts both of LCA and CSR. Life Cycle methodology aligns with the UN SDGs too. The time horizons considered are the same for both, starting from short-term all the way until the end of the service life. And most importantly, the information collection structure, once established, facilitates the process for the upcoming years and projects.

Furthermore, environmental declarations give credibility to reporting since it is usually externally verified.

SP: What are the benefits a company receives when it completes an LCA?

CP: There are several advantages to taking on a Life Cycle approach. It could be used as a supporting tool for sustainability reporting, as science-based accounting of impacts. Another benefit could be related to the management of impacts and due diligence as it gives insight on the hotspots of the most impactful sub-activities.

The level of details considered assists in:

• Environmental labels/claims and environmental product declarations (EPD)
• Conforming with market and legal regulations
• Eco-design of products
• Sustainable supply chain management
• Green buildings assessment

Some details about Qoncert

Qoncert is a team of engineers with competence in environmental sustainability matters, circular economy, and certification. Qoncert aims to assist companies in undertaking a green road map, to gain greater awareness of the origin of their environmental impacts and to implement strategies for their reduction or abatement.

You can find more about the Qoncert and its activities on the website or LinkedIn.

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.

The post An interview with Cecilia Puppo on Life Cycle Assessment appeared first on SustainCase - Sustainability Magazine.

Simon Pitsillides: What is the Global Compact?

Sara Krüger Falk: The UN Global Compact is an organisation within the UN system; businesses and governments working together with shared objectives on some of the challenges we are experiencing in the world. We are working together on ten principles that are within human rights, labour rights, the environment, climate and anti-corruption. It’s a Global Compact of “shared values and principles” so that we are working towards a common course, using the same language.

Country-specific networks such as the Denmark Global Compact are a translation of the principles in a local context: “Making global goals local business”. Business in Bangladesh or in Sudan is different from Denmark. Danish companies have a lot of sourcing from other parts of the world. We draw immensely on global resources and we also have large consumption and production levels here. So, of course, Danish businesses have other challenges than businesses in other parts of the world.

SP: So it’s really about defining those challenges on a local level.

Sara Krüger Falk: One of the broader objectives of our work in the network is to motivate and push companies to take action and make a change. We need change. And we need companies to do it. Actually, do it. And then the other focus area for us is to create community, to get more businesses active in the sustainability agenda, because we believe that’s the future of business. That’s the winners of the future, so we want to give them tools to get started, with the ten principles of the Global Compact as the basic structure framework.

SP: Only one in ten companies which know their impacts, which could potentially follow on to measure-manage-change.

Sara Krüger Falk: Exactly. I believe it will be a very important competitiveness factor for future businesses, but we also still see {very competitive} companies that are not doing it. So, we need a strong push for legislation to make sure that we don’t have irresponsible companies. And that we don’t make it profitable to be irresponsible. Because who is going to clean up after them?

SP: Exactly. So, what are the most significant issues for the near future?

Sara Krüger Falk: I think the picture is changing very rapidly. Five years ago I would not have said global virus outbreaks or a hunger crisis like the one we might be looking at after the invasion of Ukraine by Russia. I also think that our knowledge about biodiversity loss and impact on food systems has increased during the last year. And we have blind spots, things that we don’t know yet. We need to understand that we can experience drastic changes that might change our view on what is the greatest risk. Companies should be aware that there is no fixed “right thing to do”, because it might change in very short periods of time.

SP: Being flexible and having a good identification methodology in place?

Sara Krüger Falk: Being flexible, and agile.

SP: And responsive – identify change swiftly and respond to change swiftly.

Sara Krüger Falk: I think those are the companies that will win in the future, that are very aware of and able to identify the challenges.

For example with the war in Ukraine, we are going to have a crisis on food systems. But it’s going to be a crisis not only caused by that war. It’s also caused by climate change, it’s caused by a lot of different things. So, I think the solution to that is to work together and find new ways of food production, to limit food waste and work together, sectors and countries, to address these issues.

The same with the energy crisis that we are facing. We need to shift from fossil fuels, we knew that. The COVID crisis has really taught us to work in different ways and that we are very, very flexible and that it’s easy for us to change how we do things normally.

{People now working virtually, conferences shifting into hybrid} also affects, for example, the aviation sector.

SP: Things are changing rapidly and companies need to adapt to those changes. I would hate to be in the shoes of the airlines right now.

Sara Krüger Falk: Developments are faster than they have ever been. So, if you have very good, solid, business case, it might not be as good and solid in five years. You need to constantly rethink and rethink the business case for the future needs.

{The other issue is} the constant dynamics companies are faced with. I just talked to a company in food production and they were making a shift from palm oil to sunflower oil to reduce impacts on rainforests in the Amazon. But now with the war in Ukraine they couldn’t access all this sunflower oil from Russia. So, what’s the right thing to do? I think companies will face these dilemmas constantly.

We need to shift away from fossil fuels, we need to build windmill parks, but what are the negative impacts on biodiversity and what’s the right thing to do?

We have to expect companies to perform proper due diligence in these decisions. It’s not always going to be crystal clear what’s the right thing to do. It’s going to be difficult.

We need long-term perspective making company strategy. And the Sustainable Development Goals are this fantastic direction as a leading star or a lighthouse.

SP: The wild card are the people buying those products and services. It’s people on a personal and professional level, they are looking for products – it has been proven over and over again -, products and services which are sustainable.

Sara Krüger Falk: You are right in one sense that demand for sustainable products is increasing. But I still think that we have a challenge. Consumers want sustainable products but they are confused on what to buy and sometimes they say they want a sustainable product but still tend to choose the cheapest. So, there are a dilemma for businesses – you know the right thing to do but you also need to address the market. Maybe the demand for those products is not quite there yet. But we expect it to come.

SP: In the last couple of years there has been an increase in sustainability action which was driven primarily by regulation. What we do need mostly is having the regulators of the world putting down in very specific ways what companies should be doing. Do you agree with that? 

Sara Krüger Falk: I agree that it would be much easier to be a company if there was a common ground on what you had to deliver. Of course, we need a level playing field, so there shouldn’t be national legislation that is very different in Denmark than the UK or Latin America. That’s where the Global Compact comes in very handy, because it’s a common language, it’s a common framework and you can benchmark.

But, we can also see that some very large companies are also driving change in their supply chain, cutting agreements if their suppliers do not correspond to their requirements. It’s “hard law” – that’s legislation, but it’s also a Code of Conduct from one of your main suppliers. You have to do it if you want to keep that engagement open.

I can also see the financial sector is a very big driver for this. Large investors are being active, {diverting investments from companies} if they don’t have the proper ESG ratings.

It’s also very different if you are in the food sector, if you are in the fashion sector, if you are in construction. The demands and the standards that you use are different. It makes it complex for businesses sometimes to navigate it. I see companies using a lot of resources on living up to those separate requirements.

There would be a lot of good energy in working more together on common standards and a common way of addressing climate, human rights. I think that’s where the collaboration both with the UN Global Compact comes in, but we have a close collaboration also with GRI and other frameworks, so that we can align. I think that’s what companies need right now. Clarity and alignment.

SP: Absolutely. The UN Global Compact and GRI joined forces sometime ago to build a universal framework for corporate sustainability performance and disclosure. How are you seeing this work in practice among your members in Denmark?

Sara Krüger Falk: We don’t have that many Danish companies that are using the GRI Standards. I agree on having global standards. But we have mainly been working with the Global Compact and saying you can use whatever framework you want. I think the GRI Standards are really good {with human rights}, they have very good questions. So, it is a very good supplement to the Global Compact. We have the new COP requirements that are also totally aligned with GRI with sixty questions.

SP: Thank you. GRI and the European Financial Reporting Advisory Group Project Task Force announced that they will be collaborating to co-construct the EU sustainability reporting structures, commonly known as the CSRD. How will this impact companies in Denmark? Have you identified how many companies this will impact in Denmark? 

Sara Krüger Falk: Around 1,400. I am expecting that there will be some requirements and some demands that we haven’t experienced before, but I also think that Danish companies are used to reporting and used to having requirements. So, it will not be so hard for them to live up to those requirements. Of course, I don’t think that the SMEs that will be the suppliers in the supply chains of the companies that are affected by the new legislation are ready. That’s a very big job for us, to make them ready to be suppliers that can deliver information that their customers – the larger companies – will be needing (and the financial institutions as well).

SP: What developments are you hoping to see in the next one to three years to help advance the UN Global Compact goals?

Sara Krüger Falk: If you look at the UN Guiding Principles on Business and Human Rights you will understand that you also have the responsibility to open your eyes. Understand that if you are not actively trying to make a change or understand your supply chain, you might be supporting adverse human rights impacts in some ways. {We need to raise} awareness about the responsibility of all companies to also better understand their supply chain.

I can say that I have been working in the area of sustainability for many years. What I can see is that the awareness and the urge and the purpose in people I meet in all business sectors is very strong. So, I think there is a movement going on, there is a massive movement going on, and I feel it’s stronger and stronger from many different areas of society, which is great, because we need action desperately. We need to make changes all over consumers, governments, businesses, municipalities. Everyone has to work together and I think that if we manage to join forces, we can really make a change.

It’s always good to use a framework to also document what you do. So, it’s not only empty words but, really, action that you can track and document.

SP: It’s action which, once you have identified, is measure, manage and change. And then continue with that circle. 

Sara Krüger Falk: And then increase. Work more. Do more.

SP: Absolutely.

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.

The post An interview with Sara Krüger Falk, CEO of the UN Global Compact in Denmark appeared first on SustainCase - Sustainability Magazine.

Interview with Professor Venancio Tauringana

S.P.: Professor Tauringana, you have helped 105 Ugandan companies produce sustainability reports. This is a tremendous achievement given that before your involvement just two years ago, only 5 companies produced GRI Standards Sustainability Reports. Getting so many companies to report in a short while is a major achievement which also suggests that the GRI Standards are easy to implement. Do you agree?

V.T.: Thank you for your compliment. I agree that GRI Standards are easy to implement once you are trained. The difficulty is in ‘extracting’ information from the companies. Most company managers in Uganda I spoke to believe that reporting your negative economic, environmental and social impacts is not a good idea as it may lead to fines, especially by the Environment Agency.  This probably explains why many companies are not preparing sustainability reports or preparing them but keeping the information private.

S.P.: What are your plans after producing 105 sustainability reports in Uganda and regarding the COP26 in Glasgow?

V.T.: My plan now is to replicate my success in Uganda in the UK. Specifically, I want to use the UK’s hosting of COP26 in Glasgow in November 2021 as a front to encourage small and medium-sized enterprises (SMEs) to prepare sustainability reports. SMEs matter as they play a big part like that of multinational enterprises (MNEs) when it comes to sustainability. For example, it is estimated that in 2016 the annual turnover of SMEs amounted to £1.8 trillion that equates to 47% of private sector turnover in the UK. Therefore, how SMEs operate matters on a large scale. To my knowledge, many SMEs are reluctant to prepare sustainability reports.

S.P.: What would you advise individuals and organizations who produce a sustainability report based on the GRI standards?

V.T.: I would advise them to be proud of what they are doing as they are fighting global warming.  Also, I would also advise them that there is no such thing as a ‘perfect sustainability report’. They need to learn and keep on improving the quality of their sustainability reports. For example, one of the largest companies I helped prepare its first sustainability report in Uganda in 2019 has now approached me for advice on how their first sustainability report can be improved going forward.

S.P.: What are the main challenges you face in encouraging companies in Uganda to produce sustainability reports?

V.T.: The main challenge is that most companies are reluctant to report on their negative economic, environmental and social impacts. The other challenge is the lack of expertise to prepare sustainability reports that comply with GRI sustainability standards. To overcome lack of expertise, I offered training and then provided support for companies to prepare sustainability reports. In addition, there is also the issue of lack of awareness of the need or benefits of preparing sustainability reports.

S.P.: How will sustainability reporting help, in practical terms, companies in Uganda achieve business success? Also, how will sustainability reporting impact the Ugandan economy in general?

V.T.: Sustainability reporting will help Ugandan companies to identify their positive and negative economic, environmental and social impacts. This will enable the companies to manage their negative impacts that will likely improve their image and financial performance. More importantly, companies preparing sustainability reports will benefit from being more competitive. Their reports will be available on the GRI database, which means potential buyers of their products worldwide can easily contact them.

S.P.: What impact do you think you have achieved so far in Uganda with your work helping companies prepare sustainability reports.

V.T.: I think helping 105 companies to produce their first sustainability reports has had the greatest impact. I am grateful to the University of Southampton for giving me the time and financial resources to do this. Now that all the 105 sustainability reports have been uploaded on the Global Reporting Initiative (GRI) database, this has helped Uganda’s progress towards achieving SGD 12 target 6, which is about encouraging companies, particularly the large ones, to prepare sustainability reports. The indicator of success (12.6.1) in achieving SDG 12.6 is the number of organizations from each country preparing and uploading sustainability reports on the GRI database.  I have also raised awareness of the need to prepare sustainability reports through my media appearance on television stations such as Uganda Broadcasting Corporation, Smart24TV and NBS.

S.P.: What are the main benefits Ugandan companies have experienced?

V.T.: There are many benefits that the companies have experienced because of the adoption of sustainability reporting. For example, some companies used to report basic environmental information on their website, but they have now uploaded their sustainability report which includes information on the company’s social and economic performance. Many of these companies have reported receiving good feedback from their stakeholders. The companies have also benefited by implementing measures that delivered savings, wider social, economic, and environmental benefits, including poverty reduction. For example, one large company in the steel industry acknowledged that since the  preparation of its first sustainability report it has  (a) trained its employees about environmental sustainability to ensure that all employees know of the company’s drive to entrench sustainability in its  business processes/ practices (b) promoted gender equality in its  business by making sure there is gender parity among its senior management and has hired more women in senior positions and set goals for further improvement.

S.P.: What are the main benefits the Ugandan Economy and Society have experienced?

V.T.: I think the Ugandan economy has benefitted and will continue to benefit as the companies that have embraced sustainability reporting are becoming more competitive. This will likely boost export sales and grow the country’s gross national product (GDP). Society has benefitted because some large companies have now identified their negative environmental and social impact and trying to address them. Examples include a reduction in local pollution that will have positive outcomes for the local population’s health. Also, by improving gender equality, society and the companies themselves are benefitting as many studies have shown that the presence of women on boards of directors is associated with improved social and financial performance.

S.P.: A growing body of research (Oxford University, Harvard Business School, Mintel, UK’s Chartered Institute of Marketing, Morgan Stanley, Nielsen) suggests companies need to be part of the sustainable economy to survive. Can I have your comment on this?

V.T.: I agree that companies need to be part of a sustainable economy to survive. However, this is, for now, true in developed countries and for large companies exposed to public scrutiny. For smaller companies, they feel that the costs of being part of the sustainable economy outweigh the benefits. Therefore, there is a need for sensitizing all companies particularly SMEs of the benefits of being part of a sustainable economy.

S.P.: Millennials, the largest generation ever, are overwhelmingly pro-sustainability and are showing this with their every action personally and as decision-makers in businesses. Is this also the case in Uganda?

V.T.: No, most of the millennials in Uganda are not exposed to sustainable ways of living. Money being tight, their priority is about the cost of the product and whether it is produced in a sustainable way is secondary.

S.P.: What are, in your view, the most critical economic, social, and environmental sustainability challenges Uganda faces today?

V.T.:

• Lack of exposure to sustainable ways of living
• Corruption, which derails the implementation of laws and regulations aimed to promoting sustainability. For example, I am told that there are some people in Uganda were still selling polythene bags despite their ban.
• There is a significant lack of sensitisation of the community by key players
• Lack of resources to implement sustainable measures
• Sustainability seems not to be a priority for all influential stakeholders and is left to the responsible parastatals (for example, the National Environment Management Authority (NEMA) to run with. It should be everyone’s responsibility.

S.P.: Global warming is today the most important challenge to sustainable development. How can Ugandan companies help fight climate change?

V.T.:

• Production of sustainable products
• Encouraging recycling for most or all of their products
• Abiding by the regulation that supports sustainability
• Sensitizing the community through frequent community visits, social media, news and other press platforms

S.P.: What was the leading benefit you gained from attending the FBRH GRI Standards Certified and ISEP and CIM Recognized Courses in London in March 2018?

V.T.: The leading benefit was that the course clarified things for me. The explanation was so easy to follow that by the end of the two days, I already had a pro forma sustainability report I intended to use to prepare sustainability reports for companies. A secondary benefit of the course was that it gave me the confidence to prepare sustainability reports. Without attending such a course, what I have done with companies in Uganda would have remained a distant dream.

S.P.: What other courses do you think FBRH can offer to equip better people like you to contribute to the UN Sustainable Development Goal (SDG) 12 target 6 to encourage companies to adopt sustainable practices and reporting?

V.T.: There are so many courses you can offer associated with preparing sustainability reports which are as follows: (1) how companies can identify, measure and report on the greenhouse gas emissions, (2) Identifying material topics, (3) stakeholder engagement (4) developing and communicating management approaches (GRI 103), (5) Best reporting practices of all economic, environmental and social topics.

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.
 

The post An interview with Professor Venancio Tauringana appeared first on SustainCase - Sustainability Magazine.

Simon Pitsillides (SustainCase Editor):

Interview with Scatec Solar’s Julie Hamre

Scatec Solar is an integrated independent solar power producer, delivering affordable, rapidly deployable and sustainable clean energy worldwide.

A long- term player, Scatec Solar develops, builds, owns, operates and maintains solar power plants and has an installation track record of more than 1.6 GW. The company has a total of 1.9 GW in operation and under construction on four continents. With an established global presence and a significant project pipeline, the company is targeting a capacity of 4.5 GW in operation and under construction by end of 2021. 

The Governance Group recently rated Scatec Solar with A, placing the Company in the top category among companies excelling at ESG reporting on the Oslo Stock Exchange.Sim

S.P.: Scatec Solar is operating successfully all around the world. What are the challenges you are facing in your efforts to bring renewable energy to businesses and communities around the world?

J.H.: We are operating in several complex markets around the world and one challenge we often face is managing many projects in parallel across different countries. Over the last couple of years, we have more than tripled our installed capacity by constructing and grid connecting projects across four continents.

From a sustainability perspective, the challenges we often face relate to potential environmental and social impact in areas such as labour management, health and safety, land acquisition and resettlement, communities and biodiversity. Other challenges we could face in our projects relate to the risk of corruption, political instability and security.

Sustainability is an integrated part of our business and we are committed to operate our projects in line with strict risk management frameworks such as the IFC’s Environmental and Social Performance Standards and Equator Principles. We work with trusted partners like the IFC, Norfund, KLP and several larger development banks that all have high standards for projects and their associated impact.

The reporting on our sustainability performance and work is a central part of our business. Since we published our first sustainability report in 2014, we have worked strategically with our reporting in close dialogue with key stakeholders.

S.P.: Sustainability reporting does not only concern the environment. Economy and Society (people) are also very important. Please let us know how Scatec Solar is tackling these areas.

J.H.: Through the lens of materiality and GRI (Global Reporting Initiative), we report on several areas related to society (people) and economy. As a developer of solar power projects there is a potential for both environmental and social impacts. A wide range of reporting areas relating to society are material to our business. This includes for example labour and working conditions, diversity and equal opportunity, training and education, security and emergency preparedness, land acquisition and  resettlement and local communities.

We often operate in countries where the legal frameworks and governing structures do not necessarily protect the communities where we might have an impact. For this reason, it is critical for us to establish a good dialogue and relations with our project neighbours. We have a grievance mechanism in all our projects to ensure we make ourselves available to anyone who would like to raise an issue or give feedback to our projects. We report on the number of grievances and the percentage of unresolved grievances in each project on a regular basis.

Our reporting related to economy covers topics like anti-corruption, procurement practices and indirect economic impact. For example, the indirect economic impact on local communities is an important part of our sustainability work and reporting. We target about 70-80% local workers in every project during the construction phase, preferably from the surrounding communities. Reaching this target can be challenging in some projects, but it remains a key priority area both for our company and key stakeholders. We also undertake local needs assessments in the communities to understand their need for basic services and infrastructure. At the moment, we have more than 50 ongoing programmes across sectors like education, health, infrastructure and energy.

A final point I would like to make is the importance of reporting and transparency. We seek to report on material topics in an open and transparent manner by focusing on the key risks and challenges we are facing in our projects. This is not always an easy task, but an important responsibility to our stakeholders and to ensure a balanced sustainability report.

S.P.: Sustainability reports show the actions taken to minimise negative impacts and increase positive impacts. How do sustainability reports help to bring on-board key stakeholders that can hold a business back or stop it from reaching its objectives (investors, personnel, local communities, business partners, clients etc)? Can you share with us examples?

J.H.: ‘We see a great demand for sustainability reporting from a broad group of stakeholders – ranging from co-investors and partners, financing partners and shareholders, governments and local authorities and our employees. A few examples: Local governments and authorities are often concerned with local impacts and value creation, specifically job creation, local content and education and training. Financing partners and shareholders are increasingly concerned with strong ESG performance and ratings, and we experience a lot more interest in climate-related reporting including both direct and indirect CO2 emissions from our business activities, emissions reduction targets and how we identify and manage climate-related risk and opportunities.

We see a strong need to tailor our sustainability reporting across platforms to meet the specific needs of different stakeholder groups. For example, earlier this year we established a separate “ESG resources” section on our corporate website. This platform is specifically tailored towards investors, partners, analysts, and rating agencies, and is structured according to their information needs.

ESG rating agencies are also playing an increasingly larger role in the field of sustainability reporting. Strong ESG performance and ratings are now enabling more business opportunities and cheaper financing. We currently have three rating agencies actively following Scatec Solar with top ESG ratings. This, along with our recent A rating from the Governance Group opens up new opportunities for our business from investors, partners, lenders and other key stakeholders.

To give an example, earlier in 2020 we refinanced our revolving credit facility of USD 90 million with Nordea Bank as agent. The facility is linked to three sustainability KPIs, which means that we are offered a better margin if we fulfil the KPIs on an annual basis. This is a very positive development in the finance sector and something I am certain we will see much more of going forward.

S.P.: What is you your number one advise to companies undertaking sustainability reporting?

JH: My advice is to make sure your reporting journey is guided by close dialogue with key stakeholders – this is not only important for determining material topics and what to report on, but also to better understand their perspectives and maintain a close relationship for valuable feedback and input on your sustainability work.

And lastly, if you are in a position to bridge the gap between the reporting world and your business’ operations – that is a huge advantage. This could be done in many ways – getting hands on experience from a project, sit in on meetings with various business departments or establish working groups across disciplines. ∎

Useful links:

https://fbrh.co.uk/en/gri

Renewable Energy and How We Can Utilise It

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The post How Scatec Solar, a frontrunner in renewable energy, is conducting sustainability reporting appeared first on SustainCase - Sustainability Magazine.

Simon Pitsillides (SustainCase Editor):

Interview with SkyCool Systems’s George Keiser

Tell us a bit about the team behind SkyCool Systems.

George Keiser: SkyCool Systems was founded in 2016 by 3 co-founders: Eli Goldstein, CEO, Aaswath Raman, Chief Science Officer, and Shanhui Fan, a Stanford professor of electrical engineering and advisor to SkyCool. Since then, the team has grown to build and scale electricity-free cooling. SkyCool Systems is a team of dedicated engineers, scientists and business operators that are passionate about mitigating the effects of global warming and using the company’s technology to reduce rising temperatures around the world.

What is the problem/ challenge we are facing as humanity?

GK: The demand for cooling is on a rapid growth trend. On a global scale, air conditioning and refrigeration systems consume massive amounts of energy and discharge significant amounts of greenhouse gases to our planet. The International Energy Agency expects energy demand for space cooling to triple by 2050. If left unchecked, the electricity used to power cooling systems will overburden electrical grids and increase plant-warming emissions. We’re on a continuous feedback trajectory where, as the world gets hotter, demand for cooling increases, which then compounds the problem by amplifying the effects of climate forcings. We need new solutions to keep the world cool.

How did ancient people use outer space to make ice in desert conditions and at +5 ° C (above freezing conditions)?

GK: Radiative sky cooling occurs naturally because Earth’s atmosphere is partially transparent to infrared thermal radiation (the light wavelength associated with heat). As a result, sky-facing surfaces emit more energy as thermal radiation to the sky than they receive from it. Radiative sky cooling occurs at night as all objects emit thermal heat. Ancient Persians and Egyptians learned to use radiative night sky cooling to make ice in the desert. More information can be found here –https://www.realclearscience.com/blog/2018/07/09/how_people_created_ice_in_the_desert_2000_years_ago.html

How have you structured materials to take advantage of radiative cooling to transmit heat into space even during daytime?

GK: Prior to SkyCool’s work, the effect of radiative cooling was not observed during the day because the sun heats up all outdoor, sky-facing surfaces. SkyCool Systems has come up with a patented, daytime radiative cooling approach that employs multilayered films to reflect nearly all incident sunlight across the solar spectrum and also emit energy in the mid infrared frequency range between 8 and 13 micrometers. Using the films, SkyCool has developed panels that reject heat to the sky, and are capable of cooling fluid. The cooling effect from our panels is enabled by the optical film, which covers the top of the panels. The film reflects sunlight to prevent the panels from heating up during the day and also emits infrared heat to the cold sky, which cools the panels and the fluid running through the panels.

Who benefits from this? How can businesses utilise your solutions to save energy and reduce emissions?

GK: The cooling effect from our panels occurs all day and is very well aligned with the 24/7 operation of refrigeration and air conditioning systems in supermarkets, refrigerated warehouses, data centers, hospitals, convenience stores, office buildings, and restaurants with walk in freezers. Panels can be integrated with air conditioning and refrigeration systems, or even operate as a complete AC replacement.

Are your solutions readily available for businesses? (If not, what is the timeline?)

GK: Yes, we are currently working on deploying our technology in the commercial and industrial refrigeration market. We have completed pilot demonstrations with key partners to demonstrate efficiency as an add-on and are now working on scaling deployments.

Where can we see the solutions you provide?

GK: We’ve completed several commercial demonstrations with partners in California and are continuing to roll out our technology with key partners around the globe.

Which are the future possible applications of your solutions and what are the benefits?

GK: Besides the applications listed above, SkyCool panels could also be combined with radiant cooling in efficient buildings to completely replace an air conditioning unit. In addition, radiative cooling film can be applied directly to building materials such as roofing. This can be used to reduce heat loads of roofs, bus shelters/shaded structures, outdoor batteries and electronic boxes, and automobiles. For customers in the commercial and industrial cooling markets, we are helping save energy and reduce GHG emissions. Our panel system also provide capacity savings and demand savings.

What is the issue with photovoltaic panels at the moment and how can they be made more efficient?

GK: We do not currently do any work with photovoltaic panels.

What are your major challenges and how are you overcoming these?

GK: As we work to scale the business, we’re  working to educate customers on the technology and opportunity. We’ve encountered lack of awareness of energy efficiency opportunities and conservativeness towards adoption of new technologies. To overcome these, we are currently collecting data and creating case studies to document and communicate the value-add of our technology.

How do your solutions disrupt things?

GK: Our core innovation is a radiative cooling material that we’ve combined with a panel system to improve the efficiency of any vapor-compression based cooling system. We’re using this innovative technology to help our customers save money and prevent the emission of CO2 and other harmful greenhouse gases. Radiative cooling is one of a very small number of truly game changing technologies to emerge in the area of cooling. This is a space that will have major impacts on future electricity loads and contributions to atmospheric GHG levels.

More information at: https://www.skycoolsystems.com

Watch the talk on TED.com

What if we could use the cold darkness of outer space to cool buildings on earth? In this mind-blowing talk, physicist Aaswath Raman details the technology developed to harness “night-sky cooling” — a natural phenomenon where infrared light escapes earth and heads to space, carrying heat along with it — which dramatically reduces the energy used by our cooling systems (and the pollution they cause). Learn more about how this approach could lead us towards a future where we intelligently tap into the energy of the universe.

The post Using today the method ancient people used outer space to make ice in desert conditions. appeared first on SustainCase - Sustainability Magazine.

Two GRI Certified Courses are taking place from Mon 9 – Wed 11 March 2020, which are designed to prepare businesses to start addressing the Sustainable Development Goals, take all round sustainability action ASAP and prepare sustainability reports.

Can I have your comments on this please.

All steps that encourage increased awareness about these issues should be welcomed. Confederation of Icelandic Enterprise wants to be in the lead in this project, as is the case with so many other initiatives around the competitiveness of Icelandic business. A successful approach in this field is just one of the crucial factors regarding competitiveness for the years to come.

SustainCase: How do you think sustainability reporting will help, in practical terms, companies in Iceland achieve business success? Also, how do you think sustainability reporting will impact the economy of Iceland in general?

Sustainable use, waste reduction, better use of resources are critical drivers for success in business-operation in the coming years. Companies that acknowledge these issues and report on how they are doing in this field are more likely to show reliable performance in the future. Excellent performance and increased value-creation of companies are beneficial to all.

SustainCase: There is a growing body of research (Oxford University, Harvard Business School, Mintel, UK’s Chartered Institute of Marketing, Morgan Stanley, Nielsen) that suggests companies need to be part of the sustainable economy to survive. Can I have your comment on this?

The sustainable use of natural resources is one of the fundamental elements of the Icelandic economy. For decades, Iceland has been dedicated to a sustainable approach in both its fisheries and energy sectors. By doing so, Iceland has realized not only tremendous economic value for the companies involved but also long-term benefits for the Icelandic economy.

SustainCase: Millennials, the largest generation ever, are overwhelmingly pro-sustainability and are showing this with their every action on a personal level and as decision makers in businesses. Is this also the case in Iceland?

Yes! That is definitely the case here. Consequently, because of the millennial push, older generations are becoming more aware of the importance of changing how we live our lives in this regard—and they are taking action.

SustainCase: What are, in your view, the most important economic, social, and environmental sustainability challenges Iceland faces today?

In Iceland, we are very fortunate in regards to many of these factors. We benefit from very clean water and air, and we are rich in natural resources. Currently, our main challenge is to understand the scope of these challenges on a global scale and increase awareness for the necessary actions. We need to look beyond Iceland. We need to understand and become aware of what is going on globally.

SustainCase: Global warming is, today, the most important challenge to sustainable development. How do you think Icelandic companies can help fight climate change?

Icelandic society is based on the production of sustainable energy.  All of our electricity and heating is from renewable energy sources such as geothermal and hydroelectric. Iceland has participated in the EU´s climate strategy, including ETS since 2008. By doing so, we can hopefully share our experience in the field, and this could lead to fewer emissions across the EU. Additionally, many companies in Iceland are ambitiously striving to become carbon-neutral by minimising waste and by carbon offset through forestry and soil conservation.

Samtök Atvinnulífsins facilitates GRI Certified Sustainability Training in Iceland

Two GRI Certified Courses are taking place in March. A collaboration of Samtök Atvinnulífsins with London based FBRH Consultants and Navigo:

• 2-day FBRH GRI Standards and ISEP approved course (Mon 9 – Tue 10 March 2020)
  This course prepares all participants to project manage a first-class sustainability report and succeed in taking all round sustainability action ASAP.

• 1-day FBRH GRI Certified “Integrating the Sustainable Development Goals (SDGs) into your reporting process”
  Participants are taught the recommended methodology for choosing the right SDGs for action and how these can be addressed using the GRI Standards. It is important to note that the GRI Standards are the only sustainability framework that can address all the SDGs.

The post An interview with Confederation of Icelandic Enterprise on sustainability training appeared first on SustainCase - Sustainability Magazine.

The benefits of sustainability reporting with the GRI Standards is that stakeholders are consulted to determine the materiality of the report.  Therefore, the information provided in the report is targeted to their interest, emphasizing transparency.  The standards have also resulted in more focused CSR work within the company e.g. to identify improvements for action.

SustainCase: Isavia was the winner of last year’s award by Festa on sustainability reporting. In view of your sustainability reporting journey, is there any advice you can give to companies who are looking to take positive action on the environment, economy and society through sustainability actions and sustainability reporting?

Be focused and choose the materiality well based on the type of business the company is in.  It is very important to connect the work and emphasize in the report to the corporate strategy.  Sustainability actions and reporting should be looked at as a continuous improvement process – just by starting the journey companies are already taking positive actions.

SustainCase: There is a growing body of research (Oxford University, Harvard Business School, Mintel, UK’s Chartered Institute of Marketing, Morgan Stanley, Nielsen) that strongly suggests companies need to be part of the sustainable economy to survive. Can I have your comment on this?

There has been a growing demand from our stakeholders for social responsibility.  Customers require companies to be responsible and employees want to work for companies that are responsible.  This trend will only increase with new generations entering the workforce.

SustainCase: Millennials, the largest generation ever, are overwhelmingly pro-sustainability and are showing this with their every action on a personal level and as decision makers in businesses. Is this also the case in Iceland?

Yes, we see the same trend in Iceland.

SustainCase: What are, in your view, the most important economic, social, and environmental sustainability challenges Iceland faces today?

The most important challenge is the effect of climate change and the unforeseen consequences that will have on the life of people.

SustainCase: Global warming is, today, the most important challenge to sustainable development. How do you think Icelandic companies can help fight climate change?

The most important action Icelandic companies can do is reducing and then eliminate carbon emissions from their operation in any way they can and as fast as they can.

Samtök Atvinnulífsins facilitates GRI Certified Sustainability Training in Iceland

Two GRI Certified Courses are taking place in March. A collaboration of Samtök Atvinnulífsins with London based FBRH Consultants and Navigo:

• 2-day FBRH GRI Standards and ISEP approved course (Mon 9 – Tue 10 March 2020)
  This course prepares all participants to project manage a first-class sustainability report and succeed in taking all round sustainability action ASAP.

• 1-day FBRH GRI Certified “Integrating the Sustainable Development Goals (SDGs) into your reporting process”
  Participants are taught the recommended methodology for choosing the right SDGs for action and how these can be addressed using the GRI Standards. It is important to note that the GRI Standards are the only sustainability framework that can address all the SDGs.

The post Interview with Hrönn Ingólfsdóttir, Isavia appeared first on SustainCase - Sustainability Magazine.

Tim Mohin, GRI’s new Chief Executive

In December 2016 Tim Mohin, a well-known sustainability practitioner, advocate and author, was appointed as GRI’s new Chief Executive. Mr. Mohin has tremendous experience with global sustainability, from his years with leading companies and governments. The SustainCase Editor, Simon Pitsillides, interviewed Mr. Mohin on the key challenges facing sustainability today and the opportunities presented by his new role.

Simon Pitsillides: What are the challenges and opportunities presented by your new role as GRI’s Chief Executive?

Tim Mohin: I’ve seen, firsthand, how sustainability reporting can change the way a company does business and create positive impacts  Tweet This! for a company’s employees, customers and other stakeholders. I became GRI’s Chief Executive because I truly believe in the transformational power of transparency. I’m focused on figuring out ways to help organizations and their stakeholders get even more out of their investments in sustainability reporting. Thousands of companies all around the world produce sustainability reports, which is a positive development over the past 20 years. But we have not seen change at the scale we need, in order to achieve our end goal: sustainable development. We need companies to dig deeper and discover the additional actions needed to accelerate change. Helping with this process is our biggest challenge at GRI, but also a tremendous opportunity to play a role in creating a better world.

Pitsillides: How will GRI progress under your leadership in getting more SMEs to report in accordance with the GRI Standards?

The Global Reporting Initiative’s Headquarters in Amsterdam

Mohin: It is difficult to overstate the importance of SME-reporting. Around 90% of global economic activity is the result of small and medium enterprises, so we know we cannot achieve our goal of sustainable development without them. Many SMEs lack the resources to produce a full-blown annual sustainability report like large corporations. As a result, most SMEs have refrained from reporting and currently about 10% of the sustainability reports in the GRI Sustainability Disclosure Database are from SMEs. One of the main reasons for this low uptake is that management at most SMEs fails to see the business case for sustainability reporting. Instead, they see reporting as a compliance requirement, rather than a strategic business practice that can directly benefit their companies.

This is why in 2016, together with the Swiss State Secretariat for Economic Affairs, GRI launched the second phase of the program “Corporate Sustainability and Reporting for Competitive Business”. The program aims to help SMEs, based in six developing countries, across three continents (Colombia, Ghana, Indonesia, Peru, South Africa and Vietnam), use sustainability reporting to gain better access to global value chains. Through this program, GRI will develop and pilot a new adaptation of the GRI Standards tailored for SMEs. The goal is to assist them in efficiently using GRI Standards and disclosing their sector specific impacts. After the pilot phase of the program has been successfully conducted in the six aforementioned countries, the SME adaptation of GRI Standards can be made available for wider adoption.

Additionally, the new GRI Standards already give organizations the flexibility to choose to disclose information that is most relevant to them without producing an entire sustainability report. This innovation in reporting lowers the barrier for new reporters but still produces meaningful results. I hope this will spur on much more reporting amongst SMEs.

 

More and more providers of capital are asking tough questions of companies these days. Lending institutions and investors increasingly consider sustainability performance when evaluating companies.

 

 

Pitsillides: Can you provide information on how the EU Directive 2014/95/EU has impacted sustainability reporting and, more specifically, reporting in accordance to the GRI Standards?

Mohin: It is a bit premature to speak about the impact of the EU Directive on Non-financial reporting, as the transposition of the directive into national legislation is still happening. We do know that a large number of companies will start to report as a result of the directive. This will significantly increase transparency across Europe. This is a welcome change since it will give these companies and their stakeholders the information they need to inform decisions that can contribute to sustainable development.

Companies that are subject to the directive can use the GRI Standards to fulfill their reporting requirement. GRI’s Global Sustainability Standards Board developed GRI Standards based on input from a truly diverse set of stakeholders including labor groups, business associations, civil society organizations, and investors. As a result, any organization, in any sector of the economy, anywhere in the world, can use GRI Standards to increase transparency and communicate with all of their stakeholders.

 

Pitsillides: Why the transition from G4 Guidelines to GRI Standards? What does this transition mean, in terms of changes, for businesses and organizations?

Mohin: For organizations that have already adopted G4, the changes are minor. The GRI Standards are built on the G4 Guidelines, which have been restructured into a set of modular, interrelated reporting standards. The GRI Standards include all the concepts and disclosures from G4, in an improved structure and with clearer requirements. The content is organized in a more straightforward way, with less repetition. No new topics have been added to GRI Standards. Throughout the transition from G4 to GRI Standards, care has been taken to preserve the focus on materiality, and to minimize changes to the G4 disclosures and their methodologies.

 

A company’s high performance standards and reputation are intangibles that help to attract and motivate employees.

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Also read:

Laying the foundation for good communication with responsible CSR/ sustainability reporting

The Value of CSR Reporting

Corporate Social Responsibility (CSR) and the European Union: Directive 2014/95/EU

Research by well-recognized institutions is clearly proving that responsible companies can look to the future with optimism

The post An exclusive interview with Tim Mohin, GRI’s new Chief Executive appeared first on SustainCase - Sustainability Magazine.

Dr Saskia Juretzek – Senior Sustainability Manager, Allianz

1. A general comment on how climate change affects Allianz and the insurance industry in general.

Global warming threatens to radically change our climate and environment

Climate change, mainly caused by human-activity induced (anthropogenic) global warming, poses a major risk to the livelihoods of millions of people worldwide. It affects the wealth of societies and the value of companies since the frequency and severity of weather extremes – such as heat waves, droughts, floods, and potentially also storms – are expected to increase and sea-levels are rising. The first sectors affected will be coastal infrastructure, agriculture and water, but also energy – as avoidance of climate emissions will have to start there.

Climate change impacts the financial sector
The consequences of climate change are materially affecting insurers’ operations across all lines of business.
Insurers are exposed in two ways: through policies covering damage caused by natural disasters, e.g. storms and floods, and as large-scale institutional investors with e.g. significant stakes in companies affected by changing weather patterns, tightening regulations and shifting consumer behaviour. Furthermore, societies will call on the financial industry to lead the path to a clean and safe future.

2. Are there any data through the years showing how climate change is affecting payouts by Allianz and comparisons?

Climate change-related losses are still within the noise of natural variability; we do not yet see a higher frequency or severity of losses from climate change for 2016; however, we believe global warming will lead to increased insured losses caused by weather related events. Net losses from Nat Cat events (including non-weather) are volatile (they were at their lowest levels in 2015 since 2009)  were €400mn in 2014, compared to 2013 with€1,218 in a very active Nat Cat year. Assuming weather-related claims are at previous years’ levels, overall underwriting profitability are expected to remain stable due to a dynamic and improving pricing practices.

(As a general background: Weather-related natural catastrophe (Nat Cat) events: As a large insurer our exposure to climate change-related perils is mostly indirectly through the risks we accept for our insurance clients. Weather-related Nat Cat events such as storms or floods directly affect our clients’ assets, e.g. property, cars. In the case of a major Nat Cat event, the accumulated claims exceed the initial budget for Nat Cat and consequently impact the overall profitability of our property & casualty business.  In the last decade claims related to Nat Cat events have almost doubled, mostly due to strong exposure growth, also in hazardous regions (Source Munich Re, incl. non-weather), with particular commercial lines being more prone to storms and floods in the context of Nat Cat losses (40%; Source Allianz). As globalization has connected economies, we are also experiencing Nat Cat events not only causing major damage locally but setting off disruptive chain reactions in global supply chains.
The P&C segment is dominated by classical protection, where earned premiums cover the expected losses of the offered protections and associated administration costs. In case an unexpected event (e.g. windstorm) occurs, for that given year the underwriting profitability is lower than expected. Changes in profitability over time are measured based on loss and combined (including administration costs) ratios and their fluctuations. Our pre-diversified internal premium risk capital allocated to Nat Cat risk is dominated by our top 5 perils: Europe windstorm, U.S. hurricane, Germany hail, Australia hail and California earthquake (as of 12/2014). Changes in storm frequencies and intensities are likely to occur in the future, even though the magnitude and way of changes are poorly understood for all perils. Most likely the intensity and frequency of severe convective storms is to increase with the subsequent higher risk of hail and flood. E.g. our recent scientific study on extreme precipitation in Northern Italy shows that significant changes (in intensity) for flash flood precipitation events are only to be expected in the 2nd half of the 21st century, however results are subject to large uncertainties.)

3. Is there data that shows how stakeholders and the company have benefited from the actions taken to battle climate change?

Allianz is included in a variety of sustainability indices and received top ratings for its management of sustainability issues. In the CDP Investor rating, Allianz discloses its climate change performance and strategy. Other ratings such as MSCI, highlight Allianz’s leadership on climate change issues. These ratings allow investors to incorporate sustainability-related information into their investment decision-making.

In our asset management business (Allianz Global Investors and PIMCO), we offer a variety of SRI funds that are focused on climate change related issues. On top of that, the investment strategies of individual clients can be adjusted to fit the climate-conscious investor’s need.

For details about ESG Ratings please see page 74 of the Sustainability Report 2015. https://www.allianz.com/v_1462349129000/en/sustainability/media-2016/Allianz-Sustainability-Report-2015.pdf#page=74

More information on ESG in Third Party Asset Management: See page 44 of the Sustainability Report 2015. https://www.allianz.com/v_1462349129000/en/sustainability/media-2016/Allianz-Sustainability-Report-2015.pdf#page=44

As an investor of third-party assets, we received several awards e.g.: FERI Euro Rating Awards 2016; one of top 5 in category “SRI”, see: https://www.allianzglobalinvestors.de/web/main?page=/cms-out/ueber-uns/unsere-gruppe/auszeichnungen/awards.html

4. A comment by Allianz on the effort FBRH has undertaken to promote sustainability reporting with the creation of sustaincase.com.

SustainCase provides a good overview of how companies are approaching sustainability issues. This information supports amongst others the general public to better understand the role companies play in their local communities and in a global scene.

For more information please visit www.allianz.com/sustainability or read Allianz’s current Sustainability Report 2015

Note by Simon Pitsillides, SustainCase Editor:

Our main objective at SustainCase is to demonstrate how important it is for companies to deal with CSR/ sustainability issues by taking solid action: by identifying a company’s most important impacts on the environment and stakeholders and by measuring, managing and changing. This is CSR/ sustainability reporting done responsibly. Furthermore, with every year’s sustainability report, a company presents facts and confirms that a continuous cycle of improvement is in place with SMART targets being revisited. In the case study at this link we outline the actions taken by Allianz to battle climate change, one of the key material issues Allianz is dealing with. We thank Dr Saskia Juretzek, Senior Sustainability Manager at Allianz, for this interview which gives us further details of Allianz’s efforts.

The post An interview with Dr Saskia Juretzek, Senior Sustainability Manager: Allianz’s strategies and policies for reducing its environmental impact and combating climate change appeared first on SustainCase - Sustainability Magazine.