Sustainability reporting John Maddocks - CIPFA

cipfa.org.uk Sustainability accounting and reporting can … … ‘enable the systematic identification and interlinking of the economic, social and environmental costs and benefits of organisational strategies and actions’ Source: Accounting for sustainability: Practical insights (2010)

cipfa.org.uk Voluntary reporting frameworks  Prince’s ‘Accounting for sustainability project (A4S)  ‘Connected Reporting Framework’ (CRF)  Embed sustainability into decision making  Global Reporting Initiative (GRI)  G3 reporting framework launched 2006  International Integrated Reporting Committee  launched in 2010, includes A4S and GRI  Aim - a globally accepted framework for integrated reporting

cipfa.org.uk FReM Sustainability reporting guidance  2010/11 dry run  2011/12 revised  Greening government commitments

cipfa.org.uk Greening government commitments – 2015 targets  Reduce greenhouse gas emissions by 25% from a 09/10 baseline  Reduce waste by 25% from a 2009/10 baseline  Reduce water consumption from a 2009/10 baseline  Ensure government buys more sustainable and efficient products and engages with its suppliers to understand and reduce the impacts of its supply chain Source

cipfa.org.uk FReM guidance Focus on environment  Small number of key environmental indicators: 1.Greenhouse gas emissions 2.Waste 3.Finite resources: water  Linked to financial information  Short narrative - performance and targets

cipfa.org.uk Two new areas to report on 1.Biodiversity action plans 2.Sustainable procurement  No financial information required on these two aspects

cipfa.org.uk Greenhouse gas emissions  Greenhouse gas protocol & Defra guidance  GHG emissions to be reported include:  Direct emissions from sources owned and controlled by the organisation (e.g. gas boilers)  Indirect emissions from energy supplied by third parties (e.g. electricity)  Emissions arising from official business travel directly paid for by the organisation

cipfa.org.uk Waste Minimum reporting requirements:  Absolute values for waste produced by the organisation (administrative and operational, not including construction)  Categories: Total waste Landfill Recycled Incinerated/energy from waste

cipfa.org.uk Water  Direct water use  Broken down by source:  Water from 3 rd party supplier  Abstracted water  Collected water

cipfa.org.uk Report format  Report format is not prescribed: ‘… develop format to fit their business …’  Minimum should include:  Overall strategy  Three indicators – GHG, waste, water  Two overviews – biodiversity, procurement  Brief commentaries on reported performance and future plans  supported by notes

cipfa.org.uk GREENHOUSE GAS EMISSIONS Graphical Analysis Non-Financial Indicators (tCO2e) Total Gross Emissions for Scopes 1 & Total Net Emissions for Scopes 1 & Gross emissions attributable to Scope 3 official business travel Financial Indicators (£k) CRC Gross Expenditure (2010 onwards) Expenditure on accredited offsets (eg GCOF). --- Expenditure on official business travel TARGETS AND COMMENTARY Dept Yellow has a target to reduce its carbon emissions by 30% (to xxx tonnes) by March 2012 from our levels which it is on track to achieve. A new target is currently being considered for the period beyond 2012 and this will be disclosed in the business plan due to be published in February [Central Government Departments could include performance against SoGE targets, and local Government could include performance against National Indictors]. DIRECT IMPACTS COMMENTARY The main direct impacts for Department Yellow are in its electricity and fuel consumption. Strategies have been prepared to reduce these direct impacts through efficiency programmes. OVERVIEW OF INDIRECT IMPACTS Dept Yellow is able to significantly influence the emissions of its supply chain through procurement specifications. An action plan is now in place to communicate to suppliers about future contracts and expectations with regards to emissions reductions. We also actively discuss our emissions policy with the public to encourage them to consider their own personal impact when making use of our services. Example of part of report

cipfa.org.uk CIPFA ‘Sustainability reporting’  Builds on A4S approach and HMT guidance  Considers inclusion of additional indicators for:  social  economic  governance  Focus where greatest value added  Small number of key indicators  Forward looking  Embedding

cipfa.org.uk HR example Our people Staff (FTE) at year endnnn Staff expenditure£££ Absenteeism (% of total work hours)%% Annual per capita expenditure on absenteeism£££ Staff turnover%% Recruitment and induction expenditure for year£££ Staff development (% undertaking certified learning) %% Annual per capita expenditure on certified learning £££

cipfa.org.uk First published 2007, reported on:  General sustainability  Waste  Transport  Resource use  Procurement  Buildings  Workplaces  Climate change  People Sustainability Report West Sussex County Council

cipfa.org.uk West Sussex – web - four examples ObjectiveAnnual metricTargetResults Increase the number of staff travelling to work by sustainable modes of transport Percentage of staff that use sustainable travel options to get to work 55%Achieved Reduce the amount of carbon dioxide from County Council buildings Reduction in carbon dioxide emissions 13,880 tonnes Slight slippage Reduce the amount of water consumed by County Council buildings Reduction in water used 10%On target Maintain an acceptable rate of employee turnover Total rate of employee turnover 8-12%On target

cipfa.org.uk Making it happen  Collaboration across teams  Identify scope of report  Material and strategically important metrics  Identify existing data and gaps  Implement systems and processes to extract data  Address issues of comparability, completeness and quality  Adopt a clear reporting style, comparing performance over a number of years  Link to decision making