La Integración de ESG: La Transformación del COP de "Obligación" a "Oportunidad"

Agenda

■ The UN Global Compact v What it means for KPMG v Value from Reporting: The KPMG Communication on Progress v Looking Forward ■ A Future Perspective on Reporting: From Obligation to Opportunity v KPMG 2011 Survey on CR Reporting v Integrated Reporting = Better Business Reporting § Getting Started

© 2011 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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“I would argue that the UNGC has never been more important than it is now.”

Michael Andrew Chairman KPMG International

KPMG & the UN Global Compact

KPMG & the UN Global Compact

Why We Joined…

“The Global Compact’s ten

principles resonate highly with the KPMG

Values, which define our member firms’ culture and our commitment to the highest standards of personal and professional conduct. Participation in the Global Compact is a way of demonstrating

our commitment to advancing the business agenda as an

active corporate citizen. It is an opportunity

to explain how the professionalism,

experience and values of KPMG member firms can contribute

to a wider

movement for more responsible, legal and ethical behavior in the market place.”

© 2011 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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KPMG Core Values

We lead by example

We work together

We respect the individual

We seek the facts and provide insight

We are open and honest in our communication

We are committed to our communities

Above all, we act with integrity © 2011 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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KPMG & the UN Global Compact

Benefits

• Usable Framework • Monitoring & Management Mechanism • Communication Tool

Challenges

• Systems Development and Integration • Measurement Processes • Data Quality

© 2011 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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Gaining Value from Reporting

KPMG 2011 CoP Objectives • Identify policies, systems and commitments related to the principles and broader UN goals • Demonstrate connectivity of issues with core business strategies • Report on progress since prior year, sharing specific examples and case studies • Leverage for further stakeholder engagement • Commit publicly to future actions KPMG’s 2011 Communication on Progress

© 2011 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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Gaining Value from Reporting

Chairman’s Letter

KPMG’s 2011 Communication on Progress

Reader’s Guide

KPMG Leadership

Engagement with UNGC

Implementing the Ten Principles

Broader UN Goals

Looking Forward

© 2011 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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Implementing the Principles

Principle

Commitment

Policies & Systems

Sphere of Influence: Working with Clients

Human Rights

Develop Global Policy

• Corporate Values • Codes of Conduct

Helping clients define policies on human rights issues

Labor Standards

‘Respect the Individual’

• Global People, Performance and Culture Team

Working with clients to set up approaches to responsible supply chain and monitoring

Environment

Measure and reduce environmental impacts, support innovation

• Global Green Initiative

Assisting clients with integrating sustainability into company objectives and evaluating sustainability performance

AntiCorruption

‘Act with Integrity’

• Anti-bribery policy • Ethics & Compliance program

Financial Audit and KPMG Forensic Services

© 2011 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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A Closer Look: KPMG’s Global Green Initiative KPMG Global Green Initiative Reducing our Impacts

Community and Marketplace

1. 15% reduction in Emissions per

FTE by 2015 2. Global measurement of water,

waste and paper

1. A leading provider of Climate

Change and Sustainability client services

1. Raising awareness of climate

change amongst our people 2. Encouraging commitment to

2. Partnering with and supporting

3. Replace high-emission energy

environmental NGOs

sources with lower-emission alternatives

3. Contributing via industry

Key Focus Areas

Awareness and Engagement

initiatives and thought leadership on sustainability

Sustainable IT

improve environmental performance amongst our people, suppliers and clients 3. Reporting on our environmental

performance

Building Efficiency

Sustainable Procurement

© 2011 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Responsible Travel

Carbon Offsets

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KPMG’s GHG Emissions Data Collection Process

Initiate

Data Collection

Report

• Secure Global Board Support • Determine Boundaries • Identify Sources of GHG Emissions • Map Process Owners

• Develop Guidance • Create Tools • Complete data conversion to common metrics

• Perform Quality Checks • Institute Audit Processes • Finalize Consolidation

© 2011 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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Looking Forward: KPMG joins UNGC Lead Program

© 2011 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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“We account for our income and expenditure, and our financial assets and liabilities with great precision, but our greatest asset, the natural capital on which everyone depends, is not accounted for at all!�

-- HRH The Prince of Wales December 2010

The Future of Corporate Reporting: From Obligation to Opportunity

Investors are seeking more than the financial reports

The percentage of market value represented by physical and financial assets versus intangible factors, some of which are explained within financial statements, but many of which are not.

Source: Discussion Paper, IIRC, September 2011 © 2011 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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KPMG Research on Corporate Responsibility Reporting

Key Findings 1. Corporate responsibility reporting has become the de facto law for business

2. CR reporting enhances financial value 3. Combined reporting leads to integrated reporting

4. Raising the bar on data integrity is necessary

KPMG’s 2011 Survey on Corporate Responsibility Reporting

5. Leading companies make the most of assurance

© 2011 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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KPMG 2011 Survey on Corporate Responsibility Reporting

Corporate responsibility reporting has become the de facto law for business 95% of the Global 250

Source: KPMG International Survey of Corporate Responsibility Reporting 2011 © 2011 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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KPMG 2011 Survey on Corporate Responsibility Reporting

Quality of Communication

Spain

§ Multiple channels § Use of GRI guidelines § Integrated reporting Level of Process Maturity § Restatements § Information systems and processes § Assurance, both level and scope

© 2011 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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KPMG 2011 Survey on Corporate Responsibility Reporting

Benefits realized from Corporate Responsibility Program

Cost Savings Increased revenues/position in current market Market position in new markets

Market value/stock price

Other 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Source: KPMG International Survey of Corporate Responsibility Reporting 2011 © 2011 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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KPMG 2011 Survey on Corporate Responsibility Reporting

The benefits of reporting….

ReputaJon or brand (e.g. strengthened consumer Ethical consideraJons Employee moJvaJon InnovaJon (e.g. new product/service) and learning Risk management or risk reducJon Access to capital or increased shareholder value Economic consideraJons Strengthened supplier relaJonships Market posiJon (market share) improvement Improved relaJonships with governmental authoriJes Cost savings 0% Source: KPMG International Survey of Corporate Responsibility Reporting 2011

10%

G250

© 2011 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

20%

30%

40%

50%

60%

70%

80%

90%

100%

N100

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KPMG 2011 Survey on Corporate Responsibility Reporting

Data quality continues to be a significant issue….

Restatements due to updated calculation methodology Update of scope Restatements due to error or omission Update of definitions applied 0%

10%

20%

30%

40%

50%

60%

N100 Companies Source: KPMG International Survey of Corporate Responsibility Reporting 2011 © 2011 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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Corporate Reporting Today....

Financial Statements

Governance & Remuneration

Management Commentary

Sustainability Reporting

Increasingly Cluttered

Reporting content

Business value

strategic issues forecasts / plans

strategic growth development plans

A Reporting Mismatch

past performance

© 2011 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

business as usual

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What is Integrated Reporting?

INTEGRATED REPORTING brings together material information about an organization’s strategy, governance, performance and prospects in a way that reflects the commercial, social and environmental context within which it operates. It provides a clear and concise representation of how an organization demonstrates stewardship and how it creates and sustains value. An Integrated Report should be an organization’s primary reporting vehicle.

--- The International Integrated Reporting Committee (IIRC) Select IIRC Members (Senior Executives)

Who initiated the IIRC?

Chairman: Mervyn King

The IIRC < IR >

© 2011 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

KPMG

ACCA

FASB

HSBC

IASB

ICAEW

IFAC

IOSCO

Microsoft

Nestle

UN PRI

WWF 21

Addressing clutter through integration

Source: Discussion Paper, IIRC, September 2011 © 2011 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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Integrated Reporting: Guiding Principles

Strategic focus Insight into the strategic objectives, dependencies, and ability to create value Connectivity of information Links components of the business model to external factors, resources, and relationships Future orientation Management’s expectations and other information to help assess prospects and uncertainties Responsiveness & stakeholder inclusiveness Relationships with key stakeholders and how their needs are taken into account and responded to Conciseness, reliability, materiality Concise, reliable information material to the ability to create/sustain value in the short, medium & long term © 2011 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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The Integrated Reporting Framework Future outlook Opportunities, challenges, uncertainties in achieving objectives – and the implications for strategy and performance

Operating context, risks & opportunities The circumstances in which it operates including key dependencies on resources and relationships

Overview & business model What the organisation does and how it creates and sustains value in the short, medium, and long term

Performance Measured against strategic objectives and related strategies

Strategic objectives Where is the organisation going and how will it get there

Source: IIRC Discussion Paper

© 2011 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Governance & remuneration The structure and how it supports strategic objectives 24

The Integrated Reporting Framework: How is it Different?

Thinking

Disconnected , Isolated

Integrated

Stewardship

Financial capital

All forms of capital

Focus

Past, financial

Past and future, connected, strategic

Timeframe

Short term

Short, medium and long term

Trust

Narrow disclosures

Greater transparency

Adaptive

Rule bound

Responsive to individual circumstances

Concise

Long and complex

Concise and material

Technology enabled

Paper based

Technology enabled

© 2011 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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â&#x20AC;&#x153;For us integrated reporting has not been a skin-deep, box ticking exercise. It has really helped us manage our business better. With a new Executive Committee at the helm, we were in the process of refocusing our business and building our brand. So we were able to overhaul how we look at ourselves, manage our business, engage with our stakeholders and tell our story, all at the same time.â&#x20AC;?

--- Vodacom Integrated Report 2011

Getting Started

Questions to Ask

• Who has ownership of the issues around the UNGC Ten Principles and other Corporate Responsibility items?

• Do current reporting practices reflect the way in which we operate the business?

• Have we identified our key stakeholders and how do we engage them to identify material issues?

• How do such issues impact value (positive or negative) and how do they relate to the strategy?

• Do we have systems, processes, and internal controls for non-financial information streams, in line with financial data?

• Institute adjustment to corporate governance mechanisms, as appropriate, such as expansion of reporting reviewed by the Disclosure Committee.

• What data collection and reporting systems do we have in place today or are planning for tomorrow that could be relevant to this process?

© 2011 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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Getting Started: Better Business Reporting

Just Beginning

• Assign executive ownership • Initiate stakeholder engagement process • Identify material issues and owners

Moderate

• Evaluate your current reporting processes • Root your reporting in strategy/performance • Utilize internal audit

Advanced

• Automate reporting processes • Integrate external and internal reporting processes • Consider assurance on all reported data

© 2011 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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Brad Sparks Director, Global Citizenship KPMG International bradsparks@kpmg.com +1.213.955.8653

© 2011 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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