1 From Tactical to Strategic How Australian businesses create value from sustainability Global Reporting Initiative Focal Point Australia Disclaimer CPA Australia KPMG Australia Global Reporting Initiative The views and opinions expressed herein 2014 KPMG, an Australian partnership and a Neither the GRI Board of Directors, the Stichting are those of the author and do not necessarily member firm of the KPMG network of independent Global Reporting Initiative or its project partners represent the views and opinions of CPA Australia Ltd.
2 Member firms affiliated with KPMG International can assume responsibility for any consequences Cooperative ( KPMG International ), a Swiss entity. or damages resulting, directly or indirectly, from All rights reserved. the use of this publication. The findings and views expressed herein do not necessarily represent the The KPMG name, logo and cutting through views, decisions or the stated policy of GRI or its complexity are registered trademarks or trademarks project partners, nor does citing of trade names or of KPMG International.
3 Commercial processes constitute endorsement. Liability limited by a scheme approved under Professional Standards Legislation. The views and opinions expressed herein are those of the author and do not necessarily represent the views and opinions of KPMG, an Australian partnership and a member firm of the KPMG. network of independent member firms affiliated with KPMG International. Copyright CPA Australia , KPMG Australia , Global Reporting Initiative Focal Point Australia , 2014. Contents 02. Project Partners 03. Foreword 04. Executive Summary 15.
4 Introduction 21. Driving value from the sustainability context 65. Enablers for driving value 69. Conclusion 72. Bibliography 74. Glossary 76. Contributors Project Partners CPA Australia KPMG Australia GRI Australia CPA Australia is one of the world's largest accounting KPMG is one of the world's leading professional services The Global Reporting Initiative (GRI), a Collaborating bodies with a membership of more than 150,000 networks. It comprises over 155,000 people in member Centre of the United Nations Environment finance, accounting and business professionals in firms in 155 countries.
5 Programme (UNEP), produces a comprehensive 121 countries across the globe. Sustainability Reporting Framework that is In Australia , KPMG has over 5,000 people, including widely used around the world, to enable greater Our core services to Members include education, over 400 partners, with offices around the country. Our organisational transparency. The Framework, training, technical support and advocacy. Employees position is built on the professionalism of our people, the including the Reporting Guidelines, sets out the and Members work together with local and international quality of the Audit, Tax, and Advisory services we offer Principles and Indicators organisations can use to bodies to represent the views and concerns of the and the contribution we make to the wellbeing of the report their economic, environmental, and social profession to governments, regulators,industries, communities in which we live and operate.
6 Performance. GRI is committed to continuously academia and the general public. Our clients turn to us because we get the job done improving and increasing the use of the Guidelines, through our dedication to quality and our collaborative which are freely available to the public. approach. Our people aim to succeed by delivering GRI Focal Point Australia works to advance GRI's industry focused services that create genuine, mission across Australia . sustainable value for our clients. But behind all of this lies our people's shared commitment to KPMG's values and distinctive culture.
7 We attract people who are intellectually curious, demonstrate professional diligence and integrity and who empathise with their colleagues, clients and fellow citizens. 2. Foreword CPA Australia is proud of its support The impacts of megaforces on Governments and stock exchanges are and longstanding relationship with the organisations have been written about demanding corporate accountability Global Reporting Initiative (GRI). Our by many including my own firm for and transparency on sustainability risks. two organisations have a shared view on some time now.
8 They address long term In response, more Australian companies the transformational power of business Global shifts that challenge businesses than ever before are being accountable and the pivotal role played by decision- and governments' ability to prosper and for their sustainability impacts and relevant information. function under changed conditions. But identifying value creation opportunities how are businesses reflecting these through these challenges. But do Our business environment is changing. We now operate changes in strategies and risk management?
9 How are companies really understand the scale of these issues in a more complex, uncertain and interconnected world they internalising these scenarios? and their potential impacts? Is the information packed than we have at any time in the past and this trend will within their market disclosures really informing strategy continue. Momentum for the internalisation of sustainability costs and the considerations of the Board? Are they really and benefits is growing, and the disconnect between Unless our information metrics and systems continue leveraging the value creation opportunities that exist, corporate value and societal value creation is dissolving.
10 To evolve and adapt as our environment changes, transforming their business for the sustainable economy? Corporates that understand these merging dynamics, are businesses and their decision-makers will continue to those who consider sustainability as core to corporate From Tactical to Strategic: How Australian businesses miss competitive opportunities and fail to effectively strategy and see megaforces beyond the tactical and can create value from sustainability explores some of these manage their risks. It is therefore vital that both business identify the value creation story for their organisation.