Presentation by Ms.Sumana Sarkar of E&Y at the Orientation Session on Sustainability Reporting on 9th May 2013 at Bombay Chamber

1. Sustainability Reporting
Assurance
Sharing of experience by Ernst & Young-
Bombay Chamber Orientation Programme
9th
May 2013

2. Contents
► Sustainability Reporting Landscape in India
► What does Sustainability Assurance Entail?
► Value Derived from External Assurance
► Key Issues in Sustainability Reporting
► EY Recommendations for Sustainability Assurance
► About Ernst & Young Sustainability Services

3. Sustainability AssurancePage 3
Sustainability Reporting Landscape in India
• Positive trend in number of Indian reporters and those seeking external assurance
• Global Reporting Initiative (GRI) is the most widely followed framework for sustainability reporting
Sustainability Reports in India
Reporters across diverse
industrial sectors:
• Energy
• Construction
• Technology
• Telecom
• FMCG
• Automobiles
• Services sector
Current reporters are
mostly large enterprises
Forthcoming
Developments:
GRI G4 Guidelines,
Integrated Reporting
Source: Global Reporting Initiative (GRI) Reporting Database (http://database.globalreporting.org/)

4. Sustainability AssurancePage 4
What does Sustainability Assurance Entail?
Typical assurance criteria:
•Assurance Standard - ISAE 3000 (Limited Assurance), AA 1000 AS 2008
•Reporting Guidelines – GRI G3.1 Framework
•Stakeholder Engagement Standard – AccountAbility AA1000
Assurance Criteria
Typical Assurance Process
Organizational
Sustainability
Review
Stakeholder
Dialogue Review
Review of Data
Processes
Challenging the
Report
Assurance
Statement and
Management
Report
Site-wise
Observations
Assurance Outcomes
Management Letter
(to the Management)
Assurance Statement
(appears in Sustainability Report)

5. Sustainability AssurancePage 5
Appearing in the Company’s Sustainability Report
An Assurance Statement
Detailing findings, associated risks, recommendations, action points,
management comments
Management Letter
Sufficient appropriate evidence to obtain enough comfort for our conclusions for
the limited assurance engagement
Appropriate evidence
ISAE 3000, EN/HR/LA/PR/SO GRI G3.1 reporting guidelines, AA1000
Assurance Standard, Company’s own protocol
Suitable Criteria
Data & information; systems & processes relating to the public Sustainability
Report
Subject Matter
Assurance provider (EY); the intended user (the readers of the Sustainability
Report); separate party responsible for the information disclosure (the
Company)
A three-party relationship
ExplanationComponents
“Limited Assurance” based on the “International Standard on Assurance Engagements” (ISAE) 3000 – Assurance
Standard Other than Audits or Reviews of Historical Financial Information.
Limited Assurance - ISAE 3000

6. Sustainability AssurancePage 6
AA1000 Principles Key Criteria
Foundation Principle of
Inclusivity
► Commitment to be accountable to all stakeholders;
► Process in place for stakeholder participation;
►Necessary competencies and resources to operate stakeholder participation;
►Involvement of stakeholders in developing an accountable and strategic response to
sustainability.
Principles of Materiality ► Process in place for materiality determination;
►Necessary competencies and resources to apply the materiality determination process;
►Comprehensive and balanced understanding and prioritization of the organization’s
material sustainability issues.
Principle of
Responsiveness
► Process in place for developing appropriate responses;
►Necessary competencies and resources to achieve the commitments;
► Comprehensive and balanced response to material issues;
►Timely response that addresses the needs, concerns and expectations of stakeholders.
Types of AA1000 AS Engagement:
• Type 1 – AccountAbility Principles
•Type 2 – AccountAbility Principles and
Performance Information
AccountAbility AA1000 Assurance Standard
Levels of AA1000 AS Assurance:
• High Assurance
• Moderate Assurance

7. Sustainability AssurancePage 7
Value Derived from External Assurance
On the Reporting
Process
Reporting organizations are
provided with:
•Insight from leading clients with
best practices
•Independent view and
recommendations on materiality
processes used for selecting
issues in the report
•Observations on how report
content can be expanded to meet
wider stakeholder requirements
•Guidance on achieving G3.1 A+
application level from GRI
On Business Processes
Observations will support:
•Your approach to influencing
contractors
•Approach to communicating
climate change commitments to
forums such as CDP
Credibility with Stakeholders
Assurance process presents clear and
transparent findings and conclusions:
•Specific observations that provide depth
to conclusions
•Independent assessment of progress
made against previous commitments
On the Report
•Provides confidence that public
disclosures will stand up to
external scrutiny
•Provides conclusions on balance
and materiality of the report, and
its value to stakeholders
On Sustainability Data
Highlight areas for improvement in
data processes. Examples:
•Consistency in applying
boundaries over safety/fatality
reporting from contractors
•Scrutiny over greenhouse gas
data
•Achievement of climate change
reduction performance
GRI Recognition
•Externally assured report receives
‘+’ sign in the GRI Application
Level

8. Sustainability AssurancePage 8
Key Issues in Sustainability Reporting
Assurance
Completeness of the Sustainability Report
(Organizational boundary – JVs, subsidiaries, overseas ops)
Accuracy of Non-Financial Information (Data
systems and verification protocols are evolving)
Comparability of Sustainability Performance
(Comparison across companies and
sectors still a challenge)
‘Balance’ of Sustainability Reports (May be perceived as PR
exercise – need to strengthen integrity)
Applicability and Usability of Reporting Guidance
(Need to adapt reporting framework to India and SMEs)
GRI Report Quality
Principles:
► Balance
► Comparability
► Accuracy
► Timeliness
► Clarity
► Reliability
GRI Report Content
Principles:
► Materiality
► Inclusiveness
► Context
► Completeness
GRI Report Quality
Principles:
► Balance
► Comparability
► Accuracy
► Timeliness
► Clarity
► Reliability
GRI Report Content
Principles:
► Materiality
► Inclusiveness
► Context
► Completeness

9. Sustainability AssurancePage 9
“What kind of principles are used to assure
non-numerical information, such as a
Company’s stakeholder engagement, or
community initiatives?”
“What does the term Limited Assurance
mean?”
“What kind of variance in data is
acceptable in an assurance?”
“How is Assurance different from an
Audit?”
Commonly Asked Questions
Any
others??

10. Sustainability AssurancePage 10
GRI Guidance on seeking External Assurance
Six Key Qualities for External Assurance of Sustainability Reports:
► should be conducted by external groups or individuals, who are demonstrably
competent in the subject matter and assurance practices;
► assurance providers should publish an independent and impartial conclusion
on the report;
► assurance should be systematic, documented, evidence-based, and characterized
by defined procedures;
► assess whether the report provides a reasonable and balanced presentation of
performance; consider the veracity of report data and overall selection of content;
► assess the extent to which the reporter has applied the GRI Reporting Framework
and Principles;
► should result in an opinion or set of conclusions that is publicly available in
written form, and a statement from the assurance provider on its relationship to the
report preparer

11. Sustainability AssurancePage 11
EY pointers for Sustainability
Reporters/Auditees
Third-party assurance is critical for establishing
credibility of non-financial reporting
Use the assurance process as a process
improvement tool, rather than just a data
verification exercise
Understand and correctly apply the Report
Content and Quality Principles of GRI
Internal and external stakeholder views are
equally important in identifying issues most
material to the organization’s sustainability

12. Sustainability AssurancePage 12
12
About Ernst & Young

13. Sustainability AssurancePage 13
Who we are and what we stand for
156,000 people | 750 offices | 140 countries | 1 unwavering commitment
Who we are
People who demonstrate integrity, respect and
teaming.
People with energy, enthusiasm, and the
courage to lead.
People who build relationships based on doing
the right thing.
Ernst & Young – A global leader
Ernst & Young is a global leader in assurance,
tax, transaction and advisory services.
Worldwide, our 141,000 people are united by
our shared values and an unwavering
commitment to quality.
In India*
► >6600 people
► 198 partners
► 10 locations
► Industry expertise – Focused industry
What we
stand for
At Ernst & Young,
we’re committed
to helping our
people, our
clients and our
wider communities
achieve their
potential.
It’s how we make
a difference.

14. Page 14 Sustainability Assurance
EY Sustainability Advisory and Assurance
Services
Assuranc
e
Advisory
Sustainability
Strategy and Gap
Analysis
Sustainability Audit:
Independent
Review of
effectiveness of
Sustainability
Internal
Controls +
remediation
Sustainability Reporting
Roadmap
Answers questions:
should we report?
What is the Business
Case for reporting in
our case ? What are
our peers doing ?
Sustainability
Reporting Assurance:
External
assurance on
Sustainability
Reports
Sustainability
Management Systems:
Design and
implementation
of processes,
Management
Systems,
Organizations,
Sustainability
Strategy:
Diagnosis,
benchmarking
and roadmap
for
sustainability
. It includes
gap analysis
vis a vis best
in class
companies in
Sustainability Reporting Advisory
Identification of
sustainability
performance indicators,
Identify hurdles and
opportunities in
environmental and social
performance
Stakeholder value
enhancement Brand
value enhancement
Sustainability Risks and Opportunity
Assessment:
Risk mapping, Risk
prioritization, Identification
of Opportunities arising
from Sustainability
considerations
Social Responsibility – Program
Management
Independent Review of
effectiveness of
Sustainability Internal
Controls + remediation
Our approach to sustainability is not only reporting the data. We look at sustainability comprehensively
and offer an array of services to clients through directed solutions which facilitate answer the questions
of the companies and stakeholders.

15. Sumana Sarkar
Manager
Climate Change &
Sustainability
Services
Ernst & Young Pvt.
Ltd.
Contact
Mobile no : +91-
9833694364
Sumana.sarkar@in.ey.co
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