Tommy Borglund and Miriam Thunborg, KW Sustainability Services

2. Agenda
• A transparency revolution
• Findings in the KWD Webranking
• Trends and Best Practice
• Challenges and opportunities
• Going forward

3. Corporate responsibility towards
stakeholders
Company

4. All companies communicate
CSR/Sustainability
• 97 % of the 150 largest listed European companies have a
CSR section on their website
• 80 % of the 150 largest European companies have a
Sustainability report
Source: KWD Webranking 2011

5. This is confirmed by the KPMG study on
CR reporting
100
• 95 % of the largest 250 global
90 95
companies have CR reporting
80 83
• It is a dramatic increase over the 70
years 60 64 64
Percent
50 53
• All (!) of the 100 largest UK
40 45
companies have CR reporting 41
30 35
20 28
21
10 18
12
0
1993 1996 1999 2002 2005 2008 2011
N100 G250
Source: KPMG International Survey of Corporate Responsibility Reporting 2011

6. It is a transparency revolution
97%
of the largest 150 European
>85%
of the largest 750 European
companies have a CSR section
95%
of the largest 250 global
companies have a CSR section on their corporate website companies have CR reporting
on their corporate website
80% 100%
of the largest 150
of the 100 largest
companies in UK have
European companies a sustainability report
have sustainability
report, 35% have a
digital report
Source: KWD Webranking 2011, KPMG International Survey of Corporate Responsibility Reporting 2011

7. CSR more important in
KWD Webranking 2011
From To
4%
in the KWD Webranking 2010
8%
in the KWD Webranking 2011
20
Number of data points
15 17 18
16 15
10 13
10 11
5 7 8
2 2 4
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

8. Financial markets demand for CSR
– Top 5
1 Environmental targets and achievements
2 Sustainability/CR report
3 Supply chain standards
4 Social data
5 CR initiatives and memberships

9. CSR criteria in KWD Webranking 2011
1 Strategy
2 Code of conduct
3 Supply chain standards
4 CR initiatives and memberships
5 Environmental targets and achievements
6 Certified environmental management systems
7 Social data
8 Social targets and achievements
9 Community involvement and charity
10 Sustainability/CR report
11 Reporting standards
12 Sustainability index
13 CR contacts

10. …and the top companies in Europe
Coca Cola Hellenic Enel
Snam Rete Gas L’Oréal RWE Repsol

11. Spanish and Italian companies improve most
Rank Country Score Finish companies still in the lead as
1 (1) Finland 66% most transparent in Europe
2 (8) Spain 59%
3 (3) Sweden 58% Almost all countries get a higher score
4 (7) Italy 54% compared to last year
5 (2) Denmark 52%
5 (4) UK 52%
5 (5) Netherlands 52%
8 (6) Germany 50%
9 (10) France 44%
10 (9) Switzerland 39%
11 (11) Belgium 37%
12 (13) Turkey 18%
13 (12) Russia 17%
14 (-) Poland 13%
Source: KWD Webranking 2011

12. Top 10 companies in Italy and Spain
Rank Italien companies Score Rank Spanish companies Score
1 Enel 100% 1 Repsol 100%
1 Snam Rete Gas 100% 2 Acciona 84%
3 Fiat 97% 3 Ferrovial 78%
4 Eni 91% 3 Red Eléctrica de España 78%
4 Telecom Italia 91% 5 BBVA 72%
6 Saipem 88% 6 ACS 69%
7 Intesa Sanpaolo 84% 6 Telefónica 69%
7 Terna 84% 8 Iberdrola 66%
7 UniCredit Group 84% 9 Banco de Sabadell 63%
Banca Monte Dei Paschi 9 Gas Natural 63%
10 Siena 78% 9 Mapfre 63%
Source: KWD Webranking 2011

13. Community involvement and charity most
common information…
92%
of 150 largest European companies
65%
of 750 largest European companies
Source: KWD Webranking 2011

14. …as well as having a Code of conduct
86%
of 150 largest European companies
69%
of 750 largest European companies
Source: KWD Webranking 2011

15. A majority have a Sustainability Report
80%
of 150 largest European companies,
35% have digital report
51%
of 750 largest European companies,
14% have digital report
Source: KWD Webranking 2011

16. But: Few have contacts (!)
48%
of 150 largest European companies
34%
of 750 largest European companies
Source: KWD Webranking 2011

17. Why?

18. Responsible investments increase rapidly
Company Specialized funds PRI signatories
Nordic Large Cap < 1% 30%
Nordic Large Cap Renewable 6% 50%
Nordic Mid Cap 1% 45%
1,000 879 6,000
5,000
800 5,000
683
537 4,000
600
437 3,000 2,665
354 375 388
400 280 313 2,000
159 1,033
200 1,000 336
0 0
1999 2001 2003 2004 2005 2006 2007 20082009 2010 2002 2005 2007 2009
Source: Vigeo 2010, Eurosif 2010, KW IR 2011

19. Many act in the name of sustainability
950
> $30 trillion
20%

20. Against a background of scandals, protests
and volatility
950
> $30 trillion
20%

21. Who and what?

22. One size fits no one!
Traditional “The many”
Customer
media
Digital
Consumer
media
Company
NGOs Society
Experts Investors Employees
Suppliers

23. Experts; e.g. investors and NGOs
Digital sustainability report

24. The many; e.g. consumers and employees
Campaign site on CSR

25. Public Experts Consumer organizations
NGOs Consumers
Media Politicians
Competitors Customers customers
Bloggers Government i.e. retail
Traditional
Customer Customers other
media Customers
Regulatory stakeholders
Local community Digital
authorities Consumer
media Suppliers
Scientists
Industry organization
Company
NGOs Society
Employees Financial institutions
Investors Employees
Unions Owners
Suppliers
Future employees
Investors
Student organizations Owners stakeholders
Industry analysts

26. 85% of the European and North American companies on the Dow
Jones Sustainability Index are using social media, but only 42% to
communicate CSR.
800 250
millions millions
120 40
millions millions

27. 2 perspectives:
Challenge and opportunity

28. 1)

32. 2)

35. Going forward

36. A trend that seems to last into 2012
Which part of the website do you plan to improve next year?
Risk and debt related information 6%
Other 9%
Contact information 12%
Corporate Governance section 17%
Online annual report 23%
Social media connection* 27%
Career section 28%
About Us section 29%
Press room 32%
CSR section 37%
Investor Relations sector 43%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

37. One concept for all

38. Strategic concept and a business plan

39. Selecting channels;
report, website, social media…

41. APPENDIX

42. Sectors; top and bottom 10
Rank Top 10 sectors Score Rank Bottom 10 sectors Score
1 (1) Gas, water & multiutilities 67% 17 (19) Media 44%
2 (10) Pharmaceuticals & biotechnology 60% 20 (24) Oil equipment & services 41%
Basic industries (Mining, metals,
3 (2) Automobiles & parts 59% 20 (21) 41%
paper & pulp)
4 (3) Industrial engineering 58% 20 (9) Food producers 41%
5 (14) Technology equipment & defence 57% 20 (23) Household & luxury goods 41%
6 (5) Beverages & Tobacco 56% 24 (15) Insurance 38%
7 (8) Chemicals 55% 25 (27) Local banks 31%
8 (11) Retail 52% 25 (25) Software & computer services 31%
9 (7) Large international banks 51% 27 (26) Healthcare equipment & services 27%
9 (4) Oil & gas producers 51% 28 (28) Holding companies 22%
Source: KWD Webranking 2011

43. Decide on message and target group, and
1 Listen!
2 Learn!
3 Test!
4 Plan!
5 Implement!
6 Engage!
7 Evaluate!

44. GRI becomes the standard for reporting
60%
of 150 largest European companies
32%
of 750 largest European companies
Source: KWD Webranking 2011

45. CR reporting has gained ground within the Top
100 companies in each country
 100% of the 100 largest companies in UK report on Sustainability
120
100
100
99
98
97
93
91
91
88
88
80
85
83
82
79
78
74
74
72
70
69
68
60
66
63
63
62
60
59
59
52
40
45
44
20
26
24
17
0
0
Brazil
Kingdom
Netherlands
Hungary
Portugal
Canada
Sweden
Nigeria
France
Italy
Denmark
Spain
Finland
Mexico
Japan
South Africa
United States
United
Källa: KPMG International Survey of Corporate Responsibility Reporting 2011

46. Top 10 Companies in Germany
Rank Company Score
1 RWE 100%
2 BASF 97%
3 Deutsche Post DHL 91%
3 Henkel 91%
3 Volkswagen 91%
6 Merck Kgaa 88%
7 Bayer 84%
7 BMW 84%
7 Man 84%
10 Daimler
Source: KWD Webranking 2011
81%

47. Top 10 Companies in Italy and Spain
Rank Company Score Rank Company Score
1 Enel 100% 1 Repsol 100%
1 Snam Rete Gas 100% 2 Acciona 84%
3 Fiat 97% 3 Ferrovial 78%
4 Eni 91% 3 Red Eléctrica de España 78%
4 Telecom Italia 91% 5 BBVA 72%
6 Saipem 88% 6 ACS 69%
7 Intesa Sanpaolo 84% 6 Telefónica 69%
7 Terna 84% 8 Iberdrola 66%
7 UniCredit Group 84% 9 Banco de Sabadell 63%
Banca Monte Dei Paschi 9 Gas Natural 63%
10 Siena 78% 9 Mapfre 63%
Source: KWD Webranking 2011

48. Top 10 Companies in Netherlands
Rank Company Score
1 DSM 88%
1 KPN 88%
3 Arcelormittal 81%
3 Heineken NV 81%
3 Royal Dutch Shell 81%
6 Akzo Nobel 78%
7 Ahold 69%
7 ASML 69%
7 Unilever 69%
10 Philips Electronics
Source: KWD Webranking 2011
63%

49. Top 10 Companies in Spain
Rank Company Score
1 Repsol 100%
2 Acciona 84%
3 Ferrovial 78%
3 Red Eléctrica de España 78%
5 BBVA 72%
6 ACS 69%
6 Telefónica 69%
8 Iberdrola 66%
9 Banco de Sabadell 63%
9 Gas Natural 63%
9Source: KWD Webranking 2011
Mapfre 63%

50. Top 10 companies in Sweden
Rank Company Score
1 ABB 91%
1 Electrolux 91%
1 SKF 91%
4 AstraZeneca 81%
5 Atlas Copco 78%
5 SCA 78%
5 SSAB 78%
5 Swedbank 78%
5 TeliaSonera 78%
10Source: KWD Webranking 2011
Ericsson 75%

51. Top 10 Companies in UK
Rank Company Score
1 Xstrata 97%
2 ARM Holdings 91%
2 BP 91%
2 British American Tobacco 91%
2 Centrica 91%
6 Anglo American 84%
6 BG Group 84%
6 BT Group 84%
6Source: KWD Webranking 2011
Tullow Oil 84%