An Association of Australia’s senior Finance …

1 SUSTAINABILITY:A guide TO TRIPLEBOTTOM LINE REPORTINGAn Association of australia s senior Finance Executivesfrom the nation s business enterprisesSUSTAINABILITY: A guide TO TRIPLE BOTTOM LINE REPORTING ! " B s D p h rq DT7I (&$ ! $ TVTU6DI67 DGDU`) 6 BVD9@ UP USDQG@ 7 PUUPH GDI@ S@QPSUDIB Table of Contents FOREWORD .. 2 4 executive SUMMARY .. 5 1. 9 2. BACKGROUND AND CONTEXT .. 12 3. DETAILED GUIDANCE .. 17 4. FORMS OF 20 5. IMPLEMENTATION AND STRATEGY .. 23 6. VERIFICATION .. 33 APPENDICES A: USEFUL PUBLICATIONS A ND WEB SITES ..38 B: EXAMPLES OF LEAD ING PRACTICE RE PORTS BY INDUSTRY SECTOR.

2 44 C: EXAMPLES OF DIFFERENT TYPES OF MEMBERS OF THE WORKING PARTY .. 52 TVTU6DI67 DGDU`) 6 BVD9@ UP USDQG@ 7 PUUPH GDI@ S@QPSUDIB ! ForewordUur 7 v r 8 pvy s 6 hyvh ryp r ur v v vh v r s ur B s v qr ry v t &T hv hivyv ) 6 B vqr U v yr 7 Gv r Sr v t' Gvxr ur B s ur 7 v r 8 pvy v p v rq v t 6 hyvh, v s hv hiyr qr ry r v py qv t ur hv hiyr r s r pr pu h h r h q r r t 7 v r uh h v h yr yh v uv pr h vp yh y u tu v h htr r s ur sv h pvhy r v r hy h q pvhy qv r v s p h r hp v v vr q p h q r vpr 7 r v t sv h pvhy r v r hy h q pvhy r s h pr r h r vqv t h yvq s qh v s rh v t t r v ur r h rh @ hyy v h iyvp r v t qr h r ur p v p v r h q r s h pr hthv ur v yr i yv r U v yr i yv r r v t ur rs r vr v v u r s ur t rh r puhyyr tr p r y shpv t ur p h r rp 1 r h v v ur p v Uur 6 hyvh p v uh h y v v s ivt i v r 7vt i v r v rr h h qr hpurq s ur p v rys v r r rq h q t rrq 6 ur h r v r ur i hqr p v r rp ivt i v r qryv r h y r uh w w i h q sv Xr h r r rp rq r h uvtur r uvphy h qh q h q ury i vyq h

3 Ir r pvr s hyy D uv r v r hv hivyv s i v r r h v h q ur rs r sv h pvhy hv hivyv v p v vphyy qr r qr hv hv v t h q i vyqv t ur h q r rp s ur p v Uur iyvp v pr vphy h q v t s ivt i v r i ur rp t v r uh ivt i v r uh i h y s r hyr rq r yr u uh r y t r v v Uur r v ur rs r h v q s v s ivt i v r vqr yrhqr uv v h yvp v r TVTU6DI67 DGDU`) 6 BVD9@ UP USDQG@ 7 PUUPH GDI@ S@QPSUDIB " 6 h h v t v r p vph r ir r ur yr h q p vi v s i v r h q hxv t 6 hyvh ur ir yhpr yv r x yrh h q q i v r Uuv rh y p vph v t p vi v h t v t rp i hy qr h v t u r h r rr v t r v r hy h q pvhy p v r h q r vivyv vr Uur B s , t vqr vqr h pyrh hvtu s h q h q u r r yh h v s uv h vqy r y v t h rh H pu uh irr v r v yr i yv r r v t h q ur qry s p vph v t p h r sv h pvhy r v r hy h q pvhy r s h pr 6 t v t ir s p h vr h r hy qr ry v t h q r v t h hpur uh v urv v qv vq hy pv p h pr D uv r v r r v r rp v r ph shpr h hv s v s h v v u pyrh h v t v s urv hq v s ur v yr i yv r Uur B s , &T hv hivyv )

4 6 B vqr U v yr 7 Gv r Sr v t' vqr uh h v t v E u Tpu ir Q r vqr 7 v r 8 pvy s 6 hyvh TVTU6DI67 DGDU`) 6 BVD9@ UP USDQG@ 7 PUUPH GDI@ S@QPSUDIB # PrefaceUuv t vqr U v yr 7 Gv r Sr v t uh irr r h rq i h X xv t Qh p r rq i ur B s v u q hs v t h v h pr s @ ; ` t Uur B s v h h pvh v s r v hpp v t h q sv h pr r rp v r r r r v t ur hw p h vr h q t r r rq r r v r v 6 hyvh Uur r s ur t vqr v vqr r v r rp v r v u h uvtu yr ry qr h qv t s U v yr 7 Gv r r v r rsr rq h T hv hivyv T hv hiyr 9r ry r Sr v t D uv B vqr ur r U v yr 7 Gv r v rq qr r h s s p vph v s r v r hy pvhy h q rp vp v s h v hxru yqr D q r h r uh h s hy iyvpy h hvyhiyr U v yr 7 Gv r Sr v ur y rh s r v t pu v s h v hy u tu v q r vqr t vqh pr yrhqv t hp vpr v uv rth q U v yr 7 Gv r Sr v t ir yv xrq v u i v r h rt ur v r v uh ryr h pr D hy ir r r rq v h h uh v rh v ts y ur hxru yqr u v v hqq r rq Uur p pr uh i v r r u yq ir h htrq v h h uh hxr v hpp ur r v r hy pvhy h q rp vp v hp

5 Urv hxru yqr v tr r hyy hppr rq i i v r Uuv i xyr h r p u tu ur wh t h q vqr h rh rhq t vqr ur v s r v t uv r s v s h v h ryy h yv v t ur r vhy ir rsv h q v shyy Bh A yr 8uhv h s ur X xv t Qh TVTU6DI67 DGDU`) 6 BVD9@ UP USDQG@ 7 PUUPH GDI@ S@QPSUDIB $ ExecutiveSummaryBackground Uur r q h q t rh r h h r p h q hpp hivyv v iyvp r v t h q p vph v v rsyrp rq v h t r v h q r p rur v r qv py r s p h r r s h pr v py qr ur r v r hy pvhy h q rp vp qv r v s h r v , hp v v vr Sr v t v s h v h r r s ur r u rr ryr r v rsr rq h U7G r v t u tu uv iyvph v Uuv r q v irv t yh try q v r i hxru yqr u h r v p rh v ty qr h qv t v s h v ur h hpu h q r s h pr s p h vr v h htv t ur r v r hy h q pvhy p v v hp s urv hp v v vr h q i hv v t h i hqr r rp v r s urv rp vp v hp Uuv i xyr q r v r q r p vir u p h vr u yq h hpu ur iyvp r v t s rp vp r v r hy h q pvhy v s h v D hv vqr r v r rp v r v u h p pv r t vqr U7G r v t h q ssr v vtu v r s ur xr v r h q puhyyr tr v r r Alignment with business strategy U7G r v t uh yv yr ryr h pr ur r v t p h v hxru yqr vs v v hyvt rq ur p h.

6 R hyy i v r h rt 6 qrpv v r s yy U7G r v t u yq ir hxr yvtu y D uh r r v h htr r r q r r h q p v r h v h uh r hw r pr v yvph v h q h uhys urh rq h hpu v yvxry ir r uh hq v t v h hyy TVTU6DI67 DGDU`) 6 BVD9@ UP USDQG@ 7 PUUPH GDI@ S@QPSUDIB % Benefits in TBL reporting Uur i v r ph r s U7G r v t pr r v rq ryh v uv v u xr hxru yqr pu h r y rr p r v r h q uh ru yqr T rpvsvp p r pvhy hq h htr v py qr) 2@ uh pr r s r h v h q i h q0 2 Trp v t h D pvhy yvpr pr r h r,0 26 hp v h q r r v s uvtu phyvi r r y rr 0 2D rq hppr v r 0 2 Srq prq v x svyr0 2 Dqr vsvph v s r vhy p h v t 0 2D p rh rq p r s v h v 0 26yvt v t hxru yqr rrq v u h htr r s p 0 h q 28 rh v s h q ih v s hxru yqr qvhy t r Forms of reporting 6 ir s v h tv t s ur v py v s v v hy U7G ryh rq v s h v v uv h r v t u tu ur iyvph v s h s yy U7G r h r h hvyhiyr p h vr p vqr v t U7G r v t D pu v t h h vh r h u s h q p h vr h r yvxry hxr v hpp h qv r v s shp v py qv t)

7 Ur r hyy h rtvp iwrp v r 0 p r ph hpv r 0 v v v h v s hxru yqr r v r r 0 h q ur r v t hp v v vr v uv ur v q rp Relationship with financial reporting Uur v s h v p hv rq v uv h U7G r v s h qvssr r h r uh v py qrq v h sv h pvhy r C r r U7G r v t r hiyr r v r hy h q pvhy v x uh uh r ur ph hpv h r vhyy hssrp sv h pvhy r s h pr ir vqr vsvrq h q ur rs r hxr v p vqr h v ur r h v t sv h pvhy r TVTU6DI67 DGDU`) 6 BVD9@ UP USDQG@ 7 PUUPH GDI@ S@QPSUDIB & D yr r h v h q h rt 8 v vphy v r s p vqr h v v ur qr ry r h q v yr r h v s U7G r v t v py qr) pyrh qrsv v v s ur yr s U7G r v t v q v v t h rtvp i v r iwrp v r 0 r hiyv u r s ur r pr h q p r v r r 0 h h r r s h pvh rq yrthy v yvph v 0 h q qr h qv t ur v x v y rq v iyv uv t U7G v s h v Fr puhyyr tr h pvh rq v u v yr r h v v py qr)

8 26 h r r s ryr h v r h pvh rq v u U7G r v t0 2V qr h qv t hxru yqr r v r r 0 26yvt v t U7G r v t v u iwrp v r h q v x 0 h q 29r r v v t h q rh v t r s h pr v qvph The importance of metrics and performance indicators Uur r s h vh r r s h pr v qvph r r rq v h p v r h q rp t v hiyr h r ph qv vy h yh tr h s p yr v s h v v h ryr h h q rhqvy qr q s D v v h uh p h vr qr ry v qvph uh rsyrp urv h rtvp iwrp v r h q ur r v r r s xr hxru yqr t The role of the Chief Financial Officer (CFO) 6 h tr s v qv vq hy h q t v uv h p h vyy yh h yr v ur v yr r h v s U7G r v t Uur yr s ur 8AP vyy v py qr) r v t ur hpp hp s sv h pvhy h q rp vp qh h r rrv t ur sv h pvhy rssvpvr p s ur r v t pr h q r vr v t ur r h r h v x h pvh rq v u h r r v s h v v uv ur r D hqqv v ur 8AP h ir tv r ur yr i ur 7 h q s h v t ur hpp hp h q v rt v s ur sv h pvhy qh h p hv rq v uv ur r TVTU6DI67 DGDU`) 6 BVD9@ UP USDQG@ 7 PUUPH GDI@ S@QPSUDIB ' Verification D qr r qr r vsvph v s U7G r v irv t tu i h v p rh v t ir s p h vr vqr h h pr hi ur ryvhivyv h q v rt v s ur r v t pr h q r uh pr ur r , p rqvivyv TVTU6DI67 DGDU`)

9 6 BVD9@ UP USDQG@ 7 PUUPH GDI@ S@QPSUDIB ( Uur B s r hiyv urq h U v yr 7 Gv r X xv t Qh r h r h t vqr r v t r v r hy pvhy h q rp vp r s h pr Uuv s s r v t v rsr rq h U v yr 7 Gv r U7G r v t u tu uv iyvph v h q h yvr r v t v s h v v h r r s ur r u rr qv r v D vqr tr r hy t vqh pr ur v s ur s h q p r s pu r v t h q hqq r r r s ur rpvsvp v r h pvh rq v u ur qr ry r h q v yr r h v s U7G r v t Uur i v r p v uh v h r r r ih xrq h w r h q t rh r h h r p h q hpp hivyv v v r v t 1 uv v rsyrp rq v h t r v h q r p rur v r qv py r s p h r r s h pr v py qr r v r hy pvhy h q rp vp shp D qrrq h p h vr h r hy rhq p vph v t ur r h rp s p h r r s h pr urv hxru yqr Purpose Uuv i xyr v v r qrq r p vir u p h vr u yq h hpu iyvp r v t s rp vp r v r hy h q pvhy v s h v 0 q r v r r uh p h vr u yq ir p vph v t v u hxru yqr ur r h rp s p h r r s h pr Uur r s uv i xyr v vqr h r yh h t vqr s r v r rp v r uv xv t hi U7G r v t yv r ur p pr h q vqr h v h pr v ryh v r s ur xr v r h pvh rq v u U7G r v t v py qv t) 2 Xuh v U7G r v t4 2 Xuh h r ur r vhy ir rsv h q v shyy 4 2C p yq D r q4 TVTU6DI67 DGDU`)

10 6 BVD9@ UP USDQG@ 7 PUUPH GDI@ S@QPSUDIB Uuv t vqr rrx p u tu ur r i q s v s h v uv iwrp h q vqr pyh v s r v r rp v r v ryh v r s ur xr v r h pvh rq v u U7G r v t The Australian business perspective U7G r v t v h v t v p rh v t v r pr ur htr qh s h ir s hw 6 hyvh v q i qvr v py qv t ur 7 v r 8 pvy s 6 hyvh 786 ur 6 hyvh D v r s 8 h 9v rp Uur D v r s 8uh r rq 6pp h v 6 hyvh h q h h tr s ur sr v hy h q r r r h v r t A r h yr ur 786 uh ryrh rq hw q p r ryh v t hv hiyr qr ry r h q U7G r v t) h T h r r T h rtvr s T hv hiyr 9r ry r Hh ! h q Q iyvp @ v r hy Sr v t & 6 D r Qh r 9rpr ir ! T r U7G v s h v uh irr r rq s h ir s rh h q v v irv t rp t v rq i h vqr h qvr pr h h hw y p h vr v qr h v t urv p v r hv hiyr qr ry r Uuv i xyr rrx r yhv U7G r v t v ur i hqr p r s ur 6 hyvh i v r p v , h hpu hv hiyr qr ry r Alignment with business strategy U7G r v t uh yv yr ryr h pr v hxru yqr ur r v t p h vs v v qr ry rq v qr r qr y s ur p h , r hyy i v r h rt 6 p v vphy qrpv v uh rrq ir hqr rh y v ur pr v uh rrq ir r rq hxru yqr h p h , h rtvp htr qh vs ur r v t v v y irp r uh v s r rsr rq h &t rr h u' 1 v s h v uh v qv py rq i h p h rrxv t v r v v htr v u h i h v r v r v r ur qh h v r v r s h pr TVTU6DI67 DGDU`)