The health care industry is estimated to encompass close to 20% of the US GDP. Health care providers have a significant presence in their communities and are often a communities largest employer. Their role and s

1. Sustainability Reporting Trends
Global Reporting Initiative
Sustainability R
S t i bilit Reporting Trends
ti T d
in Health Care
April 2011
Mike Wallace
Director, Focal Point USA
Global Reporting Initiative
wallace@globalreporting.org
+1 212 339 0356

2. What are we talking
g
about & who really
cares?
© GRI 2011

3. What are the issues?
CSR - Corporate Social Responsibility
SD - Sustainable Development
ES - Environmental Sustainability
y
BE - Business Ethics
CE - Corporate Ethics
p
CG - Corporate Governance
ESG - Environmental, Social & Governance
IR - Integrated reporting
What is your “Footprint”?
Footprint ?
© GRI 2011

4. Increasing Stakeholders and
Demand
Modern
Due
Diligence
© GRI 2011

5. How do YOU define it?
UN B
Brundtland C
dtl d Commission (1987)
i i
Development that meets the needs of the present without
compromising the ability of future g
p g y generations to meet their
own needs.
How are companies re-defining it?
re defining
CSR & Sustainability are approaches to business operation
and innovation that build employee engagement, improve
environmental performance, create positive social
impacts, enable operational efficiency, reduce cost,
foster innovation, strengthen relationships with
customers and consumers and ultimately… create
business advantage.
Dave Stangis – VP CSR/Sustainability
Campbell’s Soup
© GRI 2011

6. What is GRI?
© GRI 2011

7. Global Reporting Initiative
• Non-profit, originated in
United States in 1997
• Reputable, respected,
credible multi-stakeholder
development approach
• Pursing li bl
P i reliable, consistent &
i t t
comparable sustainability
reporting
p g
• www.globalreporting.org
© GRI 2011

8. GRI’s Vision & Mission
GRI’s Vision
A sustainably global economy where
organizations manage their economic,
environmental, social and governance
performance and impacts responsibly and
report transparently.
GRI’s Mission
To make sustainability reporting standard
practice by providing guidance and support
to organizations.
© GRI 2011

9. What are reporting guidelines?
Environmental
E i t l
EN 3 - Direct energy consumption by primary
energy source
Labor
LA 7 - Rates of injury, occupational diseases, lost
days and absenteeism, and number of work related
fatalities by region.
Human Rights
HR 4 - Total number of incidents of discrimination
and actions taken
Product R
P d t Responsibility
ibilit
• PR 6 - Programs for adherence to laws, standards,
and voluntary codes related to marketing
communications, including advertising, promotion,
, g g, p ,
ad sponsorship.
Economic
• EC 4 – Significant financial assistance received
from government.
f
© GRI 2011

10. Is
I anybody actually
b d t ll
doing this?
- External View
- Internal View
© GRI 2011

11. Fortune 250 Survey
October 2008
• 80% of Global Fortune 250 companies now release CR data
• Doubled since 2005 - up from 37%
p
• Increasingly driven by economic concerns
• 74% of top 100 US companies published corporate responsibility (CR)
information in 2008 either as part of their annual financial report or as a
separate document
• Reasons cited:
• 70% cited ethical considerations as primary driver for CR disclosures
• 50% cited economic concerns as the leading reason
• GRI is used by:
• 77% of G250
• 69% of N100 in 22 countries
© GRI 2011

12. Standardized Reporting October 2008
© GRI 2011

13. GRI Reporting Trends
2000 Year # of Growth
reports rate
1818
1800
US Reporters in 1999 1999 11
2000 44 300%
1600 •Bristol-Myers Squibb
Bristol Myers 1491 2001 122 177%
1400 •GM 2002
2003
139
166
14%
20%
1200
•P&G 2004 274 65%
1116
•Sunoco
S 2005
2006
373
516
36%
38%
1000
2007 709 37%
800 2008 1116 58%
709
2009 1491 34%
600 516 2010 1818 22%
373
400
274
• 586 first-
200 139 166
11
44
122
time reporters
0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
in 2010.
G2 G3
© GRI 2011

14. GRI Reports by Region 2010*
Oceania Africa
4% 3%
Northern
America
14%
Europe
p
45%
Latin America
14%
Asia
20%
© GRI 2011

15. GRI Reports by Sector
300
2010*
250
200
150
100
50
0
© GRI 2011

16. Who are some of
these reporters?
th t ?
© GRI 2011

17. GRI Reporters
(North American Sample)
© GRI 2011

18. US Business Roundtable
GRI Reporters April 2009
ABB ITT
Accenture Johnson & Johnson
Abbott Johnson Control
Alcoa Life Technologies Corp
American Electric Power McKesson Corp.
AT&T Merck
CB Richard Ellis Group Inc. Motorola
CH2MHill Companies, Ltd. NexTera (Formerly FPL)
Chevron Office Depot
Chubb Owens Corning
Citi PepsiCo
Coca-Cola Pfizer
Conoco Philips Praxair
Cummins Proctor & Gamble Co.
Darden Ryder
April 2010
Deloitte Sara Lee
Dow Chemical SAP USA
Duke Energy SAS
DuPont Southern Company
Eastman Kodak Co. Siemens Corp
EMC Target Corporation
Exxon Mobil Tyco
Freeport McMoran UAL Corporation
General Electric Weyerhauser
General Motors Whirlpool Corporation
HSBC Williams
IBM Xerox
International Paper
© GRI 2011

19. What about Healthcare?
© GRI 2011

20. CHW - Social Responsibility Report
Social
Responsibility
Report
© GRI 2011

21. Sustainability Journey
CHW Highlights :
• 1996: “Endorsed Ceres
Principles and committed to
annual public reporting”
• 2003: CHW started using
GRI/G3 Guidelines
• 2010: “An Enduring Mission”
t e a e of their ast epo t
the name o t e last report
© GRI 2011

22. Topics Covered:
Issues Covered:
• E i
Environmental Indicators
t l I di t
• Economic Indicators
• Social Indicators
• Labor Practices and Decent
Work
• Human Rights
g
• Product Responsibility
© GRI 2011

23. What about Healthcare’s
Supply Chain?
© GRI 2011

24. Who supplies healthcare?
Example of North America GRI Reporters
© GRI 2011

25. Healthcare Supply Chain Disclosure
Issues Covered:
• Strategy and analysis
• Organizational profile
O i ti l fil
• Report Parameters
• Governance, Commitments &
Engagement
g g
• Management Approach and
Performance Indicators:
o Economic disclosure
o Environmental disclosure
E i l di l
o Labor practices and decent work
o Human rights
o Society
o Product R
P d t Responsibility
ibilit
Product Responsibilit
Prod ct Responsibility
© GRI 2011

26. Product Responsibility: GE
PR1 Life cycle stages in which health and safety Our products & services Partial
impacts of products… Environment
PR2 Total number of incidents of non- Our products & services Partial
compliance with regulations… Environment
PR3 Type of product and service information Product Issues are disclosed on a case-by-case basis in the
required b procedures…
i d by d various sections of th Citi
i ti f the Citizenship R
hi Report. D t th complexity
t Due to the l it
of the business and ongoing litigation related to its range of
products and services, GE does not formally report this indicator.
PR4 Total number of incidents of non- GE does not report on this metric.
compliance with regulations and…
PR5 Practices related to customer satisfaction… GE does not release customer satisfaction data for proprietary
and competitive reasons. More on customers can be found in
the Our Customers section.
PR6 Programs for adherence to laws, standards Operational Excellence Partial
and voluntary codes related to marketing
marketing… Our Products & Services
PR7 Total number of incidents of non- GE does not report on this metric
compliance…
PR8 Total number of substantiated complaints GE does not report on this metric
regarding breaches of customer p
g g privacy…
y
PR9 Monetary value of significant fines for non- Any significant legal actions and material regulatory Full
compliance with laws and regulations… fine/settlements are disclosed in our public filings.
There were no significant fines for non-compliance with laws and
regulations concerning the provision and use of GE products
and services during 2009
© GRI 2011

27. Healthcare Supply Chain Disclosure
© GRI 2011

28. Healthcare Supply Chain Disclosure
Product Responsibility
© GRI 2011

29. Healthcare Supply Chain Disclosure
Issues Covered:
• Economic
• Environmental
• Labor Practices and
Decent Work
• Human Rights
• Society
• Product Responsibility
© GRI 2011

30. Product Responsibility: Baxter
PR1 Life cycle stages in which health and safety Product Sustainability Review
impacts of products…
PR2 Total number of incidents of non- Safety
compliance with regulations
regulations…
PR3 Type of product and service information Clinical Trials
required by procedures… Product Use
PR4 Total number of incidents of non-
compliance with regulations and voluntary
codes…
PR5 Practices related to customer satisfaction…
PR6 Programs for adherence to laws, standards Product Use
and voluntary codes related to marketing
marketing…
PR7 Total number of incidents of non- Product Use
compliance…
PR8 Total number of substantiated complaints
regarding breaches of customer p acy
ega d g b eac es o custo e privacy…
PR9 Monetary value of significant fines for non- Safety
compliance with laws and regulations… Product Use
© GRI 2011

31. Healthcare Supply Chain Disclosure
Product safety
Product sustainability
© GRI 2011

32. Healthcare Supply Chain Disclosure
Issues Co e ed
ssues Covered:
• Economic Disclosure
• Environmental Disclosure
• Social Disclosure
• Labor Practices and Decent
Work
• Human Rights
• Society
• Product Responsibility
© GRI 2011

33. Product Responsibility: Clorox
PR1 Life
Lif cycle stages in which health and safety
l t i hi h h lth d f t Pg 2 2
24-25
impacts of products… www.cloroxcsr.com/products-safety
PR2 Total number of incidents of non- N/R
compliance with regulations…
li ith l ti
PR3 Type of product and service information Pg 25
required by procedures… Corporate Responsibility Report 2010
PR4 Total number of incidents of non- N/R
compliance with regulations and voluntary
codes…
PR5 Practices related to customer satisfaction… Pg 19-20
Corporate Responsibility Report 2010
PR6 Programs for adherence to laws, standards Pg 20
and voluntary codes related to marketing… Corporate Responsibility Report 2010
PR7 Total number of incidents of non- N/R
compliance…
p
PR8 Total number of substantiated complaints N/R
regarding breaches of customer privacy…
PR9 Monetary value of significant fines for non- N/R
compliance with laws and regulations…
© GRI 2011

34. Why does this matter
y
to you?
© GRI 2011

35. As a buyer, what do you
expect?
When you buy a house, a car, a
product or service . . .
What about the companies in
your own pension plan?
What information do you
deserve?
Is
I it useful & comparable?
f l bl ?
© GRI 2011

36. Shareholder Initiatives &
Coalitions
Principles for Responsible Investment (PRI) [2006]
Currently represents over $22 Trillion in investment capital
800+ signatories
Investor Network on Climate Risk (INCR) [2003]
Currently represents over $9 Trillion in investment capital
90+ members
Carbon Disclosure Project (CDP) [2002]
Currently represents over $71 Trillion in investment capital
act on behalf of 551 institutional investors
Institutional Investors Group on Climate Change (IIGCC) [2001]
Currently represents $6 Trillion in investment capital
70 members
Interfaith Center on Corporate Responsibility (ICCR) [1972]
Currently represents over $100 Billion
300 members
© GRI 2011

37. GRI Reporters - Database
http://www.globalreporting.org/GRIReports/GRIReportsList/
© GRI 2011

38. ESG Analysis of Medical Sector
*
Johnson & X X X X 6.67
Johnson
AstraZeneca X X X 5.93
Becton Dickinson X X 6.90
Baxter X X X 6.78
6 78
Merck & Co. X --- ---
GalaxoSmithKline X X --- ---
Sanofi-Aventis X --- ---
Abbott X X X 6.68
Pfizer X --- ---
Novartis X X X 6.61
Roche X X X 6.19
Allergan X --- ---
Medtronic X X X 6.52
Based on 2010 data
© GRI 2011

39. Structure of the Health Care Industry
Health Care Providers
Medical Equipment
Medical S
M di l Supplies
li
Biotechnology
gy
Pharmaceuticals
© GRI 2011

40. ESG at Goldman Sachs
Pharma, Biotecs, Generics
, ,
Corporate Social Overall 2010
Company Environment
Governance Leadership Employees Stakeholders ESG Score
Johnson & Johnson 27 8 17 19 16 87
AstraZeneca 23 9 15 23 15 85
Merck & Co. 27 5 17 24 11 84
GalaxoSmithKline 24 8 14 22 13 81
Sanofi-Aventis
S fi A ti 22 7 15 18 17 79
Abbott 27 7 12 20 10 76
Pfizer 27 6 13 14 7 67
Novartis
N ti 24 8 15 20 11 78
Roche 20 8 13 19 18 78
Eli Lilly 27 7 12 17 8 71
Allergan 20 5 11 15 17 68
Watson
21 2 6 11 4 44
Phrmaceutical
Maximum Score 30 10 20 30 20 110
© GRI 2011

41. Medical Technology
Corporate Social Overall 2010
Company Environment
Governance Leadership Employees Stakeholders ESG Score
Baxter 26 7 14 21 8 76
Medtronic 23 4 8 21 18 74
Becton Dickinson 24 7 6 17 4 58
Boston Scientific 23 3 6 20 4 56
Hospiria 22 5 8 10 10 55
St. Jude Medical 24 2 8 14 4 52
Stryker 21 2 9 14 4 50
Covidien 23 2 6 14 4 49
Edwards
19 2 5 12 4 42
Lifesciences
Maximum score 30 10 20 30 20 110
© GRI 2011

42. What is the latest
game changer?
© GRI 2011

43. Market Evolution
300,000+ subscribers
globally
3,500+ companies and
climbing
ESG Aspects
•Emissions
•Energy Consumption
•Human Rights
•Policies
•Board Make Up
Board Make-Up
Built around GRI
© GRI 2011

44. Bloomberg Company Review
EATON Corp.
• 70,000+ employees
• $11 Billion in sales in 2009
• Doing business in over 150 countries
Bloomberg Call Notes:
“ . . . to make our (Bloomberg)
content relevant to the
marketplace, we needed to
display the information exactly in
the format provided by GRI
(Global Reporting Initiative), as
this has become the market
standard.”
© GRI 2011

45. Bloomberg Survey
“With over 300,000 users, the
Bloomberg Professional service
provides a great opportunity and
platform for you to share information
with current and potential investors
ith t d t ti l i t
concerning your Sustainability or
Corporate Social Responsibility
program.
program ”
“Our survey is based on the
guiding principles of the GRI
framework.”
© GRI 2011

46. Sustainability Performance
© GRI 2011

47. Environmental Performance
© GRI 2011

48. Sustainability Performance
© GRI 2011

49. How can GRI support
your efforts?
© GRI 2011

50. GRI Publications
GRI Guidelines & Template:
GRI Learning Publications:
Research and Development Publications…
p
© GRI 2011

51. GRI Publications
• GRI’s research & development publication series
• Linkage documents
© GRI 2011

52. Sector Supplements
Available: Under Development: Pilot Version:
Electric Utilities Airport Operators Automotive
Financial Construction & Logistics and
Services
S i Real Estate Transportation
Food Event Organizers
Processing Public Agency
Mining & Metals Media Telecommunications
NGO Oil & Gas Apparel and
Footwear
© GRI 2011

53. G3 Content Index
New & Improved
© GRI 2011

54. Certified Training Partners
Over 60 certified training partners globally
Over 5000 people trained
North America Partners
www.brownflynn.com http://isosgroup.com/ www.leadcanada.net
© GRI 2011

55. GRI Certified Software & Tools
Program
PE International May 2010
SAP Jun 2010
S2D2 Jun 2010
Microsoft Sep 2010
EnviroCIP Dec 2010
Enablon Dec 2010
CSRware Jan 2011
CA Inc May 2011
© GRI 2011

56. Organizational Stakeholders
© GRI 2011

57. GRI Regional Representation
Brazil, Australia, India, China & US
2009
2010
2009
2007 2009
© GRI 2011

58. Pro Saude - Brazil
Carlos Rodrigo Henriques
r.henriques@prosaude.org.br
© GRI 2011

59. Latest Developments
Supply Chain
S l Ch i
Financial Markets Private Equity & Exchanges
Markets,
Integrated Reporting
Government Uptake
G4 Development
p
© GRI 2011

60. Supply Chain Ripple
Customer
Training
Suppliers
GRI
Stakeholders
© GRI 2011

61. Mainstream Uptake (May 14, 2010)
© GRI 2011

62. Mainstream Uptake (Jan 31, 2011)
© GRI 2011

63. International Integrated
Reporting Committee (IIRC)
© GRI 2011

64. Declared Integrated Reporters
© GRI 2011

65. What are governments doing?
Acting as:
• Regulators
• Reporters
• Customers
• Shareholders
© GRI 2011

66. Global Regulatory Review
"More governments are
making sustainability
reporting mandatory.“
• 142 regulatory i t
l t instruments
t
addressing sustainability
reporting exist in the 30
p g
countries
• 65 percent of the standards
are classified as mandatory, the
rest are considered voluntary
© GRI 2011

67. GRI Reporters - Public Sector
A Coruña Port Authority - Spain UNEP Division of Technology,Industry Nomura Research Institute Japan
Abu Dhabi Chamber of Commerce & and Economics (DTIE) – France Office National des Forest - France
Industry - United Arab Emirates Eduvic - Spain Penrith City Council – New Zealand
Alsterdorf assitenz umland - Germany Ejército de Chile Queensland Environmental Protection
Architectural Services Department - Electrical and Mechanical Services Agency – Australia
China Department,
Department Government of Hong Kong Redland City Council - New Zealand
ASM Bressanone - Italy - China Redland Shire Council - New Zealand
aT - Republic of Korea EMC (Environmental Management Seoul Metro - Republic of Korea
Auckland City Council - New Zealand Corporation) – Republic of Korea Serviguide - Spain
Bilprovningen - Sweden Emvisesa - Spain Sociedade Galega do Medio Ambiente
BSCI - Belgium
SC egu Environment Agency Abu Dhabi
o e t ge cy bu ab (SOG
(SOGAMA) - Spain
) Spa
Canada Post - Canada (EAD) - United Arab Emirates Société de transport de Montréal -
City of Amsterdam – The Netherlands FaHCSIA - Australia Canada
City of Melbourne - Australia Fondaction - Canada SOSFO – Republic of Korea
City of Waidhofen an der Ybbs - Gold Coast City Council - Australia System State of the Environment of
Germany Hokkaido - Japan Minas Gerais - Brazil
City West Water - Australia Ihobe - Spain TEP - Italy
Confederació de Cooperatives de Inypsa - Spain The World Bank - USA
Catalunya - Spain KCSC – Republic of Korea US Army- USA
Context Group – United Kingdom KED (Hellenic Public Real Estate US Postal Service
CSIRO - Australia Corporation) - Greece Vägverket - Sweden
Department of Corrections – New Korea Tourism Organization – Waitakere City Council - New Zealand
Zealand Republic of Korea
Department of the Environment and Lebensministerium Oesterreich - Austria
Heritage (DEH) - Australia Linklaters – United Kingdom
Department of Sustainability and Ministry Economic Affairs – The
Environment (DSE) - Australia
( ) Netherlands
* Between 2001 and 2009
© GRI 2011

68. Recent Observations
Various US and European organizations, including
V i dE i ti i l di
Health Care Without Harm, have stated that the existing
G
GRI “product responsibility” standard needs more
p p y
specifics on disclosure of companies' safer materials
policies such as:
• Whether a company has a restricted substances list
• Whether a company has list of substances of
concern targeted for phase out
phase-out
• Programs and metrics for achievement of those
goals
The upcoming process of seeking stakeholder input on
G4 standards will be an opportunity for healthcare
institutions, NGOs and others to weigh in on whether
such additional guidelines are needed
© GRI 2011

69. Global Reporting Initiative
Thank you
Mike Wallace
Director, Focal Point USA
Global Reporting Initiative
wallace@globalreporting.org
wallace@globalreporting org
+1 212 339 0356