1. Corporate ESG / Sustainability Reporting Does It Matter? Who Cares? Presented by Louis D Coppola, M.B.A, Senior Vice President Governance & Accountability Institute, Inc. Tel 646.430.8230 x14 Email lcoppola@ga-institute.com Web www.ga-institute.com NIRI NY Baruch College, New York, New York – March 27, 2012

2. Questions Posted in Research Effort  Does corporate sustainability and responsibility reporting according to GRI Framework matter to capital market players?  Do capital market players assign a premium to corporate issuers that measure, manage and publicly report on ESG performance?  Does GRI reporting influence credible third parties ranking and/or rating corporate performance in leading compilations? Short Answers… Yes, Yes & Yes

3. US Companies Looked At  Fortune 500 ® Companies  Largest in Revenues in USA Stock Performance  Selection by Third Parties for Rankings & Ratings  S&P500 ® Index Companies  Stock Performance Only To Determine:  Was there measurable outperformance if large-cap companies reported on their ESG KPIs according to the GRI Framework  Fortune 500 Companies examined  S&P 500 Companies Examined  Measured against Equal Weighted Index of S&P 500 Index for Years 2006-2010

4. Four Year Performance of S&P 500 GRI Reporters & Fortune 500 GRI Reporters VS S&P 500 Equal Weighted Index (S&P 500 EWI) Indexes 1 Year Return 2 Year Return 3 Year Return 4 Year Return TOTAL Return YTD Return S&P 500 GRI Reporters18.46%71.29%4.19%14.66%19.85%4.52% Fortune 500 GRI Reporters17.60%82.11%7.13%15.54%20.72%3.42% S&P 500 EWI Reporters19.81%71.64%1.28%1.34%6.66%4.06%

5. Given Indicated Outperformance, Are Fortune 500 Companies That Are GRI Corporate Reporters More Likely to be Included in Leading Indexes?  NASDAQ OMX CRD Global Sustainability Index ® (QCRD)  Yes  Dow Jones Sustainability Index World ®  Yes  Dow Jones Sustainability Index North America ®  No

6. NASDAQ OMX CRD Global Sustainability Index ® (QCRD)

7. Dow Jones Sustainability Index World ®

8. Dow Jones Sustainability Index North America ®

9. Question: What Impact Does Sustainability & CR Reporting have on Selection for Third Party Reputational Lists? Question: Is there a correlation for corporate GRI reporters and selection for popular and credible reputational lists and rankings? We looked at two leading lists with companies ranked. Answers:  Yes for Newsweek Greenest Companies in America ® Ranking Top 100 and 500  Yes for CRO 100 Best Corporate Citizens ®

10. Newsweek Greenest Companies in America ® Ranking Top 100 and 500

11. CRO 100 Best Corporate Citizens vs. GRI

12. Question: Does Sustainability & CR Reporting have an impact on Sustainability Ratings?  Yes for CRD’s Sustainable Performance Value ® (SPV) – Smart View 360 ® Platform  Yes for Carbon Disclosure Project Score (CDP)

13. CRD’s Sustainable Performance Value ® (SPV) – Smart View 360 ® Platform 82% of Non Reporting Companies Scored Below 50 64% of Reporting Companies Scored Above 50

14. Carbon Disclosure Project Score (CDP)

15. Sector Differences to Consider

16. Conclusions  Corporate Sustainability and Responsibility reporting according to the GRI Principles seems to make a difference to investors – reporting companies are outperforming S&P Index peers in share price performance.  Reporting matters to compilers of leading reporting list and reputational rankings, and for corporate ratings on ESG performance.  GRI is the standard for ESG/Sustainability reporting – Investors Want Consistency and Comparability.  GRI has become a global standard for Corporate Responsibility and Sustainability Reporting – becoming a widely-accepted mechanism to providing Consistency over the past four years.  US Companies are measuring and managing ESG performance and reporting to GRI Principles in increasing numbers – but the percentages by sectors is still low compared to other countries and regions.

17. Updated Report Coming This Year  Analyzing the S&P 500 ® Companies in the same way using 2011 reporting data.  Adding additional corporate rankings and ratings by third parties.  Updated Report will be available July 1 st. News:  G&A Institute is now the USA, UK, and Ireland Data Partner for GRI – gathering and analyzing corporate reporting results to GRI for dissemination worldwide.  Providing much more quantitative and qualitative information for the corporate comparisons going forward.

18. Coming Soon: US Focal Point / Big 4 / G&A Trends in External Assurance  External Assurance improves the quality of reporting and the trust shareholders/stakeholders can place in the data  Roughly 15% of US GRI Reporters have their reports externally assured  Worldwide around 50% are assured

19. Pressing Issues for External Assurance  Confusion in terminology  Who is most qualified to do such reviews?  What are the differences in the levels and scope of reviews?

20. About G&A Institute Governance & Accountability Institute, Inc. (www.GA-Institute.com) Navigating the way to sustainability... G&A serves as Sustainability Headquarters™ for leaders in the corporate, investor and social sectors, providing value-added services focused on ESG/Sustainability issues, including research, monitoring and strategic counsel and advisory services. SustainabilityHQ TM (www.SustainabilityHQ.com) Our knowledge. Your opportunity. A subscription-based, Web-accessed platform managed by G&A Institute; SHQ provides key third party organization profiles and tracks the actions of ESG/Sustainability capital market players and investors, and “influencers shaping corporate reputations and valuations. Accountability-Central TM (www.Accountability-Central.com) For leaders in the era of responsibility & accountability. A publicly-available Web-based information platform for news, updates, opinion & commentary and research resources focused on Sustainability, ESG, Corporate Responsibility issues and topics.