1. Employee Presentation 3-00 - p 1

2. Employee Presentation 3-00 - p 2

3. Employee Presentation 3-00 - p 3

4. Employee Presentation 3-00 - p 4

5. Employee Presentation 3-00 - p 5 Overview  What is driving change?  How are organisations responding?  Challenges/Way Forward

6. Employee Presentation 3-00 - p 6 n Private Sector: l Port of Tauranga; l Sanfords l Meridian l Watercare l Transpower l Urgent Couriers l Metrowater l Tasman/Norske Skog n Public Sector l Antartica l Office of Auditor General l Department of Conservation l Housing l Transit l Ministry for the Environment l EECA, l ERMA l Hort Research

7. Employee Presentation 3-00 - p 7 “Value” shift - more than financial gain “Licence to operate” Greater threats and opportunities Environmental and social burdens / degradation Organisational Performance Globalisation Technology Power / Expectations of consumer / civil society Focus on Risk Management ReputationOperational Looking for win/win activities and Partnerships (innovation, diversity) Pace of change/communications RESPONSE DRIVERS

8. Employee Presentation 3-00 - p 8 Book Value Reputation Market Perceptions Market value (Shareprice x No shares)

9. Employee Presentation 3-00 - p 9

10. Employee Presentation 3-00 - p 10 What opportunities do we have for improving our environmental and social performance and contributing positively to our financial bottom line?

11. Employee Presentation 3-00 - p 11 Process  Demystifying the concept  Planning how to make it happen  Making it happen  Reporting

12. Employee Presentation 3-00 - p 12 SDR Misconceptions n About optimising all dimensions of performance and reporting n Similar to existing frameworks et Balanced Scorecard n Terminology traps

13. Employee Presentation 3-00 - p 13 Demystifying the Concept Making a difference by  Improving social and environmental performance  Through Effective partnerships/transparency Realising win/win opportunities Integrated long-term decision making

14. Employee Presentation 3-00 - p 14 Planning how to make it happen Key Performance Areas: Scope/Priorities  Policy  Explicit Objectives  KPIs

15. Employee Presentation 3-00 - p 15 Making it happen  Leadership/informed “buy-in”  Procedures/Behaviours/Value set//Codes of Conduct  Measurement/Benchmarking  Continual improvement

16. Employee Presentation 3-00 - p 16 Reporting  Stakeholders  GRI  AA1000  Verification

17. Employee Presentation 3-00 - p 17 Challenges  Transparency risks/trust  Uncertainty in win/win scenarios long-term v short-term economic gain  “Common ground” for partnerships/effort required  Bolt-on vs integrated

18. Employee Presentation 3-00 - p 18 Ways Forward  Private / Public partnership - incentivising social/environmental responsibility  Full Cost Accounting  Education  Procurement  Promotion  Open Debate/discussion  Learning by sharing e.g. NZBCSD  Effective/understandable communications