The Evolution of Corporate Reporting for Integrated Performance

The UN Global Compact-Accenture CEO study on Sustainability 2013 shows that CEO’s recognize the sustainability challenge, but grapple with measuring and valuing their activities Complication However CEO´s find sustainability difficult to implement and quantify: 38% believe they can accurately quantify the value of their sustainability efforts. 37% see the lack of a link to business value as a barrier to accelerating progress. Situation Sustainability is perceived to be very important by CEO´s: 93% believe that sustainability will be important to the future success of their business. 80% view sustainability as a route to competitive advantage in their industry.

The KPMG study reviewed corporate reports issued between 2012 and 2013 by the 10 largest global companies in each of 10 industry sectors. 100 companies (and their associated corporate foundations) invested approximately, 2.5 percent of their pre-tax profits in programs to tackle social and environmental challenges. 80% reported none or limited quantified metrics for the impact of the programs they fund. 68% reported no detailed investment strategy. Source : ts/ArticlesPublications/sustainable- insight/Pages/unlocking-value-social- investment.aspx

Formation of Risk Metrics Group through spun off from J.P. Morgan EIRIS Research Domini Social Index Launch of Carbon Disclosure Project (CDP) Calvert Social Index United Nations Environnent Programme Finance Initiative (UNEP FI) KLD Research Innovest Strategic Value Advisors Sustainable Asset Management (SAM) Launch of Dow Jones Sustainability Index (DJSI) Formation of oekom research AG through spun- off from ökom GmbH Formation of Global Reporting Initiative (GRI) Launch of the Dow Jones STOXX Sustainability Index Launch of FTSE4 Good Index Series Source: RobecoSAM 4 The evolution (a short history)

Vigeo Research First Chinese Sustainability Index S&P EGX ESG Index (Egypt) MSCI acquired RiskMetrics Group, Inc. JSE SRI Index Bovespa Corporate Sustainability Index S&P ESG India NASDAQ OMX - GES Sustainability Index Launch of the Dow Jones Sustainability Index North America Launch of UNPRI Launch of the Ethibel Sustainability Index Launch ASPI Goldman Sachs Sustain Focus List Launch of Dow Jones Sustainability Index Asia Pacific, and Korea Thomson Reuters acquired ASSET4 Bloomberg launched ESG Data Service RiskMetrics acquired KLD Research and Innovest Merger of Jantzi Research with Sustainalytics Foundation of Glass, Lewis & Co. Launch of S&P/Hawkamah ESG Pan Arab Index Mexican Stock Exchange Sustainability Index Acquisition of Responsible Research by Sustainalytics Inclusion of ESG ratings in asset manager search process by Mercer Launch of BSE- Greenex, India's first green index Source: RobecoSAM 5

SASB issues first set of standards for healthcare sector issued GRI issues G4 Guidelines IIRC issues first Framework And the story continued in 2013 ……

Complex landscape 7 DisclosureMeasurement Valuation Rating & Investment

Future evolution – Convergence, alignment ….. 8