Triple Bottom-line Reporting Presentation to the Resource Management Law Association June 2002 By Gerard Willis

Scope  TBL and the Resource Management Act  TBL and the Local Government Bill 2001 (Restricted largely to environmental matters)

Triple Bottomline Reporting The term “TBL” is used loosely Strictly speaking, TBL is simply an approach to reporting – but TBL philosophy is much more It’s a management tool (not just reporting and not just marketing!) TBL is an approach to decision-making and is usually associated with use of an Environmental Management System. TBL Decisio n Action

TBL and the RMA - what is the relationship? Do changing values and the corporate response spell an end for the need for regulatory codes like the RMA?

The relationship The RMA is limited as a change agent. It influences a relatively small number of the decisions that affect sustainability TBL goes where the RMA cannot go. It can influence dozens of day to day management decisions thus… While the RMA is important for a sustainable future it will not get us there by itself TBL is an essential complementary tool

Building blocks of sustainability (History of environmental action) Philanthropy Public services NGOs &Civil society Regulation Corporate Ethic &TBL Sustainabilit y

Can the relationship be symbiotic? Can firm’s RMA monitoring requirements be integrated with TBL reporting? Can TBL provide a means of raising the profile of RMA compliance amongst senior management? Can management responses (EMSs, Codes of practice etc) be integrated with RMA planning instruments?

TBL and the RMA – Key hypothesis Should those organisations engaged in TBL get some “concession” through the RMA process? If so, why? - and how?

Why might you give a concession? Because TBL is effective self regulation and RMA is unnecessary (or not necessary to the same extent)? As an incentive to get more organisations involved in TBL?

Are any of these reasons valid? How comparable are TBL actions to RMA requirements? Is it equitable (or efficient) to provide a concession that is unrelated to the benefit derived?

TBL in the LG Bill Does not require TBL but must, every 3 years, report on progress in achieving community outcomes (including social, economic environmental and cultural outcomes) (Clause 74) Annual Plan required to report actual performance against expected service performance for each “group of activities” (Focus on outputs although individual activities and community outcomes must be identified) (Clause 78 and Schedule 8 Part 3) Local Government Bill

Defining Community outcomes 6 Yearly process Community outcome report LTCCP 3 Yearly process Annual Plan Annual Report Annual process

Process Issues for Local Authorities What is the relationship between the annual report and the 3 year report on community outcomes? How does TBL reporting link to section 35 of the RMA? How to get buy-in across the organisation? How to get buy-in (and information) from external organisations? What does TBL mean for CCOs To what extent should external NGOs and others review and audit the TBL?

Policy Issues for Local Authorities Can’t look at reporting in isolation from planning – what are the implications for planning documents? How do local authorities deal with conflicts (not every action is a “win win” solution) What is the relationship between RMA Plans and the LTCCP?

TBL and Local Government – work in progress Pilot programme involving 8 local authorities About to report to MfE Led by Audit NZ which has developed a 7 step plan Also a working group of the Institute of Chartered Accountants of NZ