Reporting 
matters
Improving the effectiveness of reporting one year on 
WBCSD 2014 REPORT
In partnership with

IN THIS REPORT
This project is a joint collaboration  
between WBCSD and Radley Yeldar
  See page 52 for more information
Contents
2
Section
BACKGROUND & GENERAL FINDINGS
07 WHY DOES REPORTING MATTER? ONE YEAR ON 
10 WHAT MATTERS IN 2014 
12 WHAT WE FOUND IN 2014
3
Section
DETAILED FINDINGS
20 PRINCIPLES 
28 CONTENT CRITERIA 
39 EXPERIENCE CRITERIA 
43 REPORTING MATTERS TO FUTURE LEADERS
4
Section
APPENDIX
45 WHAT WE DID IN 2014 
46 LIST OF REPORTS REVIEWED 
49 GLOSSARY OF TERMS 
51 ACKNOWLEDGEMENTS 
52 ABOUT THE RESEARCH PARTNERS
1
Section
INTRODUCTION 
01 KEY MESSAGES 
 02 SHIFTING THE FOCUS TO LONG TERM  
04 WELCOME TO OUR SECOND REPORT

INTRODUCTION
1
Key messages
1
25% of companies improved their materiality disclosures, 
indicating a sharpened focus on strategic matters that will  
in turn help strengthen and communicate the business case. 
2
Reliability of data receives more attention. Our research 
shows an increase in the use of reasonable assurance, 
although external assurance, regardless of the level  
of validation, is not yet used to its full potential.
3
Companies have made better progress on experience than 
on content in 2014. In particular, connectivity across key 
aspects of reported content, such as materiality, targets  
and performance, has improved.
4
Stand-alone sustainability reports remain the dominant  
form of non-financial disclosure, with the Global Reporting 
Initiative (GRI) being the most widely used guidelines  
and its fourth generation (G4) version benefitting from 
rapid uptake.
5
The proportion of companies that are combining their 
financial and non-financial reporting into either annual 
reports or self-declared integrated reports remain  
constant at around 20% with half of them referring  
to the International Integrated Reporting Framework.
01
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

Shifting the focus to long term
Paul Polman, CEO Unilever and Chairman WBCSD, shares his vision  
and advice on how to build sustainability into business models.
Q. How can the effectiveness of corporate 
reporting be improved to better drive 
integrated thinking/performance 
management? 
More and more we see that companies which put 
sustainability at the heart of their models and who focus 
on long-term decision-making are performing better 
economically. A recent research summary by the University 
of Oxford Smith School, for example, showed that 
companies that implement sound sustainability practices 
deliver better operational performance, benefit from a 
lower cost of capital and see a positive influence in stock 
prices. Equally, there is clear evidence elsewhere that 
companies that are overly focused on the short term  
miss investment opportunities and reduce their  
long-term value creation.
So based on the economic arguments alone, managers 
should integrate sustainability into decision-making  
and reporting.
And that is what we are seeing. The WBSCD survey  
of reporting in 2013 showed that the majority of large 
companies now have environmental and social goals 
and they report progress externally. 75% of member 
companies now follow GRI reporting guidelines.  
And the majority get some form of external assurance  
for this reporting. 
Increasingly it is clear that traditional financial metrics 
are not enough to support this and integrated reporting 
is the vital link to drive better integrated thinking and 
performance management. It requires us to incorporate 
non-financial metrics as well as financial metrics leading 
to a better understanding of how the organization creates 
value. This in turn enables management to focus on the 
right key performance indicators to drive progress against 
long-term targets.
Q. Unilever has stopped quarterly profit 
reporting since 2011. How would you describe 
the impact of this decision on investor behavior? 
And on internal investment decisions?
Unilever stopped giving short-term financial guidance 
in 2009 and moved away from full P&L quarterly profit 
reporting as from 2011. The impact on investors’ behavior 
has been mixed. While the move has helped in our efforts 
to attract longer-term investors to our register and to 
reduce the opportunities for short-term investors to trade 
around our quarterly announcements, there are still too 
many investors who are mainly focused on the short term. 
However, we recognize that this is a journey and that to 
shift to a better balance between long and short term will 
take time.
Internally it has given us more freedom to run the business 
without needing to make arbitrary decisions around a  
90-day financial reporting cycle. This makes it easier to take 
the best investment decisions for the long term, whether 
it be investment in brand support, R&D or supply chain/IT 
capital expenditure.
We would encourage all other companies to reduce 
short-term guidance and to reduce the level of quarterly 
disclosure. This would help build momentum towards 
focusing investor engagement on the long term.
02
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

Q. Unilever is praised for its Sustainable Living 
Plan. What are your top three points of advice/
recommendations for building sustainability 
into the business model? 
I think that it starts with leadership. It is vital to have top 
leadership – from the CEO and the board – to embed the 
new ways of thinking across the business. Integrate it into 
the business – don’t have separate ownership – it needs  
to be part of the fabric and collectively led.
Then it is vital to understand where the key impacts and 
pressure-points are on your business model. My view is 
that businesses must look across their entire value chains 
to really understand their vulnerabilities and opportunities. 
Don’t just look at risk management – look at opportunities 
to drive growth and to increase profitability by re-thinking 
your approach to your markets. Ultimately, it is about 
bringing the outside in and encouraging everyone inside 
the organization to believe they have a role in helping  
to develop solutions to the challenges we face.
Thirdly you must set clear targets and metrics and start 
tracking and reporting against them. And that is where 
integrated reporting comes in.
Q. Pricing externalities is a much debated 
concept. What are your views on monetizing  
a company’s impacts on nature and society? 
I think that we are now starting to see companies take their 
impacts on nature and society seriously. This can be seen 
in the work done by bodies such as the Carbon Disclosure 
Project to increase transparency and create a platform from 
which to compare individual company performance.
Many companies now report their CO2 emissions. It is also 
encouraging to see that 29 major US companies are now 
using an internal price on carbon to support their internal 
decisions – and not just energy companies! This is a great 
example of where companies are starting to move beyond 
the traditional metrics to ensure that they take the right 
decisions for the long term.
In order to think across the complete value chain we need 
to bring together the financial data with the non-financial 
data and exercise judgement to make the right decisions. 
I think that monetization of externalities can be a helpful 
part of this process in the context of fully integrated 
thinking but it needs to be part of a much broader  
change in approach.
It is great to see such a large number of well-respected 
companies adopting integrated reporting and using it 
to get the right focus on the long term in their internal 
decisions and in their external communications. 
WBCSD has indeed been leading the agenda with many 
members publishing their own non-financial reports, or 
including sustainability indicators within their mainstream 
financial disclosures.
I am convinced that this will play a key role in enabling 
business to respond to the unprecedented challenges  
that we now face.
Paul Polman 
CEO Unilever, Chairman WBCSD
03
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

Q. What is the end goal of corporate reporting?
Accounting and reporting rules need to evolve into an 
effective system driving a new economic model that 
allows a sustainable and inclusive future. The end goal is 
concise corporate disclosure that brings together financial, 
environmental and social performance to reflect improved 
risk and performance management within companies,  
as well as to drive more accurate valuation of companies 
and improved allocation of capital market investments.  
We need to ensure that corporate reporting makes clear 
how a company is making its money, not just how much 
money it has made.
Q. Based on this year’s findings, what would 
you recommend as the top three priorities  
for WBCSD members over the next year? 
This year we have seen some great progress, with leading 
companies improving the quality of their materiality 
disclosures, reporting on dependencies and impacts 
related to a broader set of capital beyond finance and 
demonstrating a more mature approach to risk and 
opportunity management as a result. I would recommend 
focusing on these three priorities for the next year: 
  Turning reported data into useful information to improve 
decision-making by grounding it in management cycles 
and showing how it helps achieve business objectives;
  Strengthening corporate governance by establishing 
clear expectations and responsibilities at the executive 
and board level for non-financial reporting;
  Revisiting the business model to enable a better 
understanding and communication – internally and 
externally – of the connection between financial 
performance and societal value creation.
Q. Reliability has been introduced as a new 
criterion in the 2014 review. How could assurance 
help improve the effectiveness of reporting? 
No business can be managed without access to reliable, 
accurate and timely information to monitor its activities 
and ensure effective decision-making and efficient 
management. The absence of high-quality data has 
been a limiting factor in the transition towards integrated 
performance management. At the same time, third-
party assured data will increasingly be expected to 
provide evidence that corporate strategies are delivering 
sustainable outcomes. It is paramount that data be 
externally verified if it is to be used to support strategic 
decision-making, hence, the introduction of this new 
criterion in our 2014 methodology.
Q. This year, WBCSD launched the Redefining 
Value program. Can you explain how this will 
ultimately support the implementation of 
better reporting?
While WBCSD believes in transparent and proportionate 
disclosure on sustainability commitment, performance  
and strategy, it is at least equally important that we focus 
on internal decision-making to ensure that sustainability  
is managed on a day-to-day basis. WBCSD’s Redefining 
Value program aims to integrate natural and social capital 
measurement and valuation into corporate performance 
management so that, ultimately, changes in what 
companies report reflect a real movement towards 
more sustainable business.
Peter Bakker 
President and CEO, WBCSD
Welcome to our second report
Corporate reporting can be a transition accelerator towards “true value”. Reporting needs 
to transform so that it becomes an effective source of reliable data and information that 
can direct investment flows towards the scaling up of innovative business solutions.  
We hope you will find our 2014 findings and recommendations useful.
04
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

Q. How can the effectiveness of corporate 
reporting be improved to better drive 
integrated thinking?
All too often, reporting is created in isolation from  
the daily affairs of a business – presenting an artificial 
representation of the organization. Arguably, too few 
businesses are recognizable in their own reports, and  
too many reporters focus on manufacturing generic 
disclosures. By including real management information, 
offering stakeholders the chance to hear from decision-
makers and being transparent about genuine challenges, 
organizations open themselves up authentically. This, in 
turn, can drive insightful dialogue that leads to integrated 
thinking, and prompts sustainable change. 
Q. What are the biggest challenges you’re 
seeing clients experience with reporting?
Undeniably, converging content is an arduous process. 
There is no simple answer when it comes to deciding 
whether something sits in a stand-alone sustainability 
report, an integrated report, or online – but it is something 
that many organizations spend far too long debating each 
year. Clear signposting helps, as does having a clear view 
on the issues that matter most. This being the case, it is 
also interesting to us that materiality – which is not a new 
concept in sustainability reporting – is still proving to be  
a challenge to reporters. 
There are still too few confident articulations of issue 
prioritization, which ought to inform the level of 
management attention and spend, as well as the balance 
of reporting.
Q. Where do you see the biggest opportunities 
for WBCSD members to get more value from 
the reporting process?
Embedding reporting more effectively into both 
management and communications processes is clearly 
the way forward. It is much easier said than done – but 
the rewards are great and real. At its most effective, 
the reporting process is an opportunity to harvest best 
practice, to reflect on challenges, to encourage the 
organization to pause and plan for the year, and to 
energize people about the future. 
Ultimately, it’s your chance to reframe how the 
organization depends on and affects the society and  
the environment we live in – measuring the value of  
the diverse capitals we collectively consume and create.
Q. How do reporting and communications 
interact?
The best reporting feeds on the communications an 
organization produces during a given year, and equally 
offers the chance to share achievements with the rest of 
the world. Reporting can feel a little overwhelming unless 
backed by a well-defined role in society, people that are 
willing to stand up for change, and an opinion that is 
shared more widely through networks ranging from events 
to social media such as LinkedIn. This connected approach 
is crucial for scaling up and driving change.
Ben Richards 
Consulting Director, Radley Yeldar, London
05
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

IN THIS SECTION
07 WHY DOES REPORTING MATTER? ONE YEAR ON 
10 WHAT MATTERS IN 2014 
12 WHAT WE FOUND IN 2014
BACKGROUND & 
GENERAL FINDINGS
2
06
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

Non-financial 
information is becoming 
increasingly important 
for sound investment 
decision-making.
Why does  
reporting matter? 
One year on
The reporting world is evolving rapidly. WBCSD is engaging 
to bring a collective and progressive business voice to this space. 
Here is a short update on major developments in 2014 that  
take us one step closer to the ultimate goal: a greater number  
of sustainable companies being recognized and rewarded  
by financial markets and customers. 
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX
07
REPORTING MATTERS

to support publicly listed corporations in disclosing 
material factors in compliance with the United States 
Securities and Exchange Commission (SEC) requirements. 
Integrated reporting gathered momentum this year  
with version one of the International Integrated Reporting 
Framework launched in December 2013. Some corporate 
pioneers have already adopted this new approach 
to reporting and many others are closely following 
development – 10% of the reports we reviewed mention 
the International Framework. Evidence suggests that 
investors also want integrated reporting – more than 
90% of those responding to an Association of Chartered 
Certified Accountants (ACCA)-led survey of the investment 
community5 confirmed it would be valuable for companies 
to combine financial and non-financial elements in an 
integrated reporting format. 
Another noticeable development this year was the launch 
of a public consultation on the expansion of its Climate 
Change Reporting Framework by the Carbon Disclosure 
Standards Board (CDSB). The updated Framework will 
include information about environmental matters, with 
specific guidance on greenhouse gas (GHG) emissions, 
water and forest risk commodities, and how to disclose 
these in mainstream corporate reports. It is expected  
to be launched in February 2015.
Beyond reporting,  
information for decision-making 
Developing systems to integrate management of 
sustainability issues into everyday business decision-
making is a “must” for the transition towards better 
and more meaningful reporting. In addition, showing 
the value to the business of integrating non-financial 
information into decision-making will ultimately help 
drive integrated reporting. 
WBCSD believes that what gets measured gets managed. 
It has a strong track record in developing innovative 
business-led tools over the past 15 years with key partners, 
for instance: the GHG Protocol with the World Resources 
In the wake of the September United Nations 
(UN) Climate Summit, more than 350 global 
institutional investors representing some  
US$ 24 trillion in assets called on governments  
to take action that supports investment  
in clean energy and climate solutions.1
Others have pledged to raise US$ 200 billion by the  
end of 2015 to help poorer countries deal with the 
effects of global warming and cut reliance on fossil fuels.2 
Finally, others committed to make use of climate change 
information on a common basis in mainstream corporate 
reports out of a sense of fiduciary responsibility.3 
Clearly, non-financial information is becoming  
increasingly important for sound investment decision-
making – and a critical mass of investors agree. So, why  
are so few businesses able to confirm whether their 
disclosures beyond financial reports are even being 
considered by financial markets?
Our research provides the answer: corporate non-financial 
reporting is a widespread activity among large companies 
and the quality of disclosures is improving. However, while 
diversity in approaches to reporting is something to be 
celebrated, meaningful comparability is far from being 
achieved. The voluntary nature of corporate responsibility 
activities, the ever-widening range of stakeholders and  
the growing number of issues that companies are asked  
to address are among the factors that we believe might be 
preventing companies from realizing the value of reporting. 
Empowering sustainable companies  
– the crucial role of capital markets 
Two-thirds of global institutional investors say that they 
would be more likely to consider non-financial information 
when making investment decisions if common standards 
were used.4 In 2014, the Sustainability Accounting Standards 
Board (SASB) issued provisional standards for 27 industries 
in four sectors – healthcare, financials, technology and 
communications, and non-renewable resources – as part  
of its mission to develop sustainability accounting standards 
Why does reporting matter? 
One year on
1 2014 Global Investor Statement on Climate Change.  
“World’s leading institutional investors managing US$ 24 trillion  
call for carbon pricing, ambitious global climate deal”. Available at 
http://investorsonclimatechange.org. Accessed 29 September 2014.
2 Clark, P. Financial Times. “Climate summit ends with rebuke 
to leaders”. 24 September 2014. Available at http://www.
ft.com/intl/cms/s/0/e7fa7e04-433a-11e4-be3f-00144feabdc0.
html#axzz3EhqVIboL. Accessed 29 September 2014.
3 Climate Disclosures Standards Board. “Fiduciary duty & 
climate change disclosure”. Available at http://www.cdsb.net/
fiduciarystatement/statement. Accessed 29 September 2014.
4 Eccles, Robert G. and Jean Rogers. “The SEC and Capital Markets 
in the 21st Century: Evolving Accounting Infrastructure for Today’s 
World”, Brookings Series: The Initiative on 21st Century Capitalism 
18(18). September 2014.
 5 Association of Chartered Certified Accountants (ACCA). February 
2014. Understanding investors: the changing corporate perspective.
08
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

The Organization for Economic Co-operation and 
Development (OECD) held its second Global Forum 
on Responsible Business Conduct8 discussing several 
successes and challenges linked to the implementation 
of its government-backed guidelines for multinational 
enterprises. These include a network of national contact 
points providing an impartial platform for conciliation 
and mediation to resolve issues that arise relating to the 
implementation of the Guidelines. 
Finally, the Indian Ministry of Corporate Affairs also issued in 
2014 the final rules that apply to companies under the New 
Companies Act 2013, and in which section 135 introduces 
new corporate social responsibility (CSR) expenditure 
requirements. The Brazilian Stock Exchange (BM&F 
BOVESPA) “report or explain” program saw a sharp increase 
this year in the number of corporations adhering, with 71% 
of listed companies disclosing non-financial information, up 
from 45% the previous year. The Singapore Stock Exchange 
(SGX) recently announced that it will be making it mandatory 
for all listed companies to publish sustainability reports.
What’s next? 
More regulations can be expected as progressive 
businesses, governments and international standards-
setters acknowledge the role of corporate transparency 
in the transition to an inclusive and sustainable economy. 
And global investors with a medium- to long-term view are 
already looking for evidence that companies’ management 
of material issues such as resource scarcity, climate change 
and poverty is appropriate and robust. 
The dynamism of this sector is to be celebrated. However, a 
warning we have consistently heard from our members is the 
risk of fragmentation that could challenge and slow down 
progress. Although diversity is required to fit geographical 
and sectoral nuances, a coherent overarching framework 
including agreed definitions of key terms and concepts 
would be beneficial for all without undermining flexibility. 
This applies to both voluntary and regulatory developments. 
We hope to drive the agenda further with the findings and 
recommendations of this second edition of Reporting Matters.
Institute (WRI), the Guide to Corporate Ecosystem Valuation 
with the WRI, ERM, PwC and International Union for 
Conservation of Nature (IUCN), and the Measuring Impact 
Framework with the International Finance Corporation (IFC). 
At the same time, recognizing the challenge for companies 
in understanding and selecting from a very busy landscape 
of frameworks, WBCSD has developed several mapping 
resources, including Water4Biz (2012), Eco4Biz (2013)  
and the Measuring socio-economic impact guide (2013). 
WBCSD has been actively calling for the development  
of harmonized approaches to measuring and valuing 
interactions with nature and society that can serve business 
decision-making needs. An exciting development in 2014 
has been the Natural Capital Coalition’s appointing of 
WBCSD to a leadership role in the development of the 
Natural Capital Protocol, together with a consortium  
of partners. 
Governments are setting  
minimum standards 
Addressing the fragmentation across the non-financial 
reporting regulatory landscape represents an important 
step in removing some of the challenges to progress. 
The latest Carrots and Sticks report6 surveyed corporate 
reporting policy practices in 45 countries and identified 
134 “separate mandatory policies covering different 
aspects of [corporate responsibility] reporting and 
a further 53 voluntary policies”. Clearly regulatory 
momentum exists, but most efforts remain largely 
country specific and unilateral. 
In September 2014, the European Union started to 
create a common basis for non-financial reporting, with 
the Council and Parliament adopting the Directive on 
disclosure of non-financial and diversity information 
by certain large companies.7 This new legislation, once 
incorporated into national law, will require large listed 
companies in its 28 Member States to report on their 
environmental and social impacts, on a comply or explain 
basis, including respect for human rights, anti-corruption 
and bribery issues, and diversity of board of directors.
6 KPMG, United Nations Environment Programme, the Global 
Reporting Initiative, and the Centre for Corporate Governance 
in Africa. 2013. Carrots and Sticks: Sustainability reporting policies 
worldwide – today’s best practice, tomorrow’s trends.
7 The new rules will be incorporated into Directive 2013/34/EU on the 
annual financial statements and reports of certain types of undertakings.
8 Organization for Economic Co-operation and Development (OECD). 
second Global Forum on Responsible Business Conduct. See https://
mneguidelines.oecd.org/globalforumonresponsiblebusinessconduct/. 
Accessed 10 October 2014.
09
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

What matters in 2014
WBCSD’s vision is that by 2050 a business should be measured by  
its “true value” with profit and loss, performance and value creation  
redefined to consider longer-term environmental and social impacts.
redeﬁning value
CONTENT
Information that should 
guide what is included  
as content in the report
EXPERIENCE
Elements that improve  
the reader’s overall 
experience of the report
PRINCIPLES
Overarching concepts  
that should guide the 
application of the content 
criteria in the report
Completeness
Reliability
External 
environment
Governance
Accessibility
Information 
presentation
Balance
Content 
architecture
Conciseness
Line 
of sight
Strategy 
& drivers
Management 
approach
Materiality
Stakeholder 
engagement
Commitments 
& targets
Strategic 
partnerships  
& collaboration
Performance
Evidence  
of activities
10
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

Effective reporting 
can be a powerful 
tool to promote 
integrated performance 
management.
  Engaging with senior management and 
employees. The development process of a report 
provides an opportunity to take sustainability into the 
boardroom and connect teams across the organization 
through shared commitments. Breaking down 
silos also promotes more integrated decisions and 
performance management. 
  Understanding the dynamic external environment. 
Using insight about megatrends and other factors which 
could affect future performance can lead to changes in 
the business model – from improved risk management 
that could undermine the organization’s ability to deliver 
on strategy to the identification of new opportunities 
that could help innovation and the development of 
business in new markets. 
Experience matters 
While the principles and content criteria used in Reporting 
Matters are aligned with existing reporting principles and 
disclosure requirements, such as those contained in the 
GRI guidelines and the International Integrated Reporting 
Council (IIRC) Framework, there is one aspect we believe 
is fundamental but often overlooked – the reader’s 
experience. Despite substantial progress in making the 
content best practice, there is often little consideration 
of whether the information will be read and used by the 
intended stakeholders. But this is evolving. 
The experience criteria assess the content from an 
audience perspective and assume that reports will more 
than likely engage audiences if they are concise and 
to the point, are easy to navigate, are informative and 
have a clear line of sight (connectivity). Reports need to 
balance strong credible content with an experience that 
makes reading them engaging. Not all readers have the 
same expectations or time, therefore it is worth having 
a variety of options for them – from long printed and 
PDF reports, to shorter summaries and engaging online 
content. The printable PDF still remains the favored 
channel for reporters. Indeed, many jurisdictions require 
that printed copies of annual reports be available at the 
general assembly.
We believe that companies that are more 
sustainable should be recognized and rewarded, 
and therefore that they should be more 
successful. Effective reporting has a critical 
role to play in driving this change.
Last year, we defined the key ingredients of successful 
reporting – a mix of content and experience elements 
that determine not only what is reported, but how that 
information is communicated. 
We have updated our methodology in 2014 to introduce 
seven overarching principles that underpin the most 
effective reporting, alongside seven criteria that relate to 
content and four that relate to experience. Together we 
believe these criteria provide a useful framework to help 
companies derive value far beyond the report itself – by 
driving change internally so that reporting reflects true 
performance and impact. 
In addition, we have introduced a reliability principle 
reflecting the increasing strategic importance of quality 
data, and tweaked some aspects of our criteria to better 
take into account the characteristics of self-declared 
integrated reports. 
Driving integrated performance 
Effective reporting is more than communication 
to a range of key stakeholders. By describing why 
sustainability is relevant to the business and explaining 
how it supports value creation, effective reporting can 
be a powerful tool to stimulate internal changes that 
promote integrated decision-making and integrated 
performance management. For example:
  Undertaking a robust and transparent materiality 
assessment. Understanding that the organization 
is prioritizing the right things – those fundamental 
challenges and opportunities that, if addressed 
meaningfully, will support value creation – can drive 
commitment and focus organizational resources. 
  Streamlining information systems and strengthening 
internal controls. This will help quantify the results of 
sustainability actions and investments, as well as improve 
business decision-making by providing access to regular, 
accurate and reliable non-financial data, including key 
performance indicators (KPIs).
11
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

What we found in 2014
Report characteristics
Characteristics have been identified by looking at company 
reports reviewed in 2014 only – 162 reports in total.
53%
of reports are titled 
“sustainability report” 
2013: 57%
4.5
average months  
between year-end and  
the publication date  
2013: 6
86%
of reporters use  
the GRI guidelines 
2013: 75%
73%
of companies have their  
report externally assured 
2013: 64%
11%
of those who have external 
assurance are assured  
to a reasonable level 
2013: 3%
8%
of reports are self-declared  
integrated reports 
2013: 8%
93
Average 
page length 
2013: 98
25%
of reporters use  
the GRI G4 guidelines 
2013: N/A
12
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

Trends over time
Trends have been identified by looking at company reports reviewed  
in 2013 and 2014. Due to companies leaving or joining WBCSD  
or not reporting annually, this represents a sample of 146 reports.
5.8%
improvement  
in overall score
25%
of companies improved  
their materiality disclosures
7.7%
improvement in overall 
experience score
The biggest content-related 
improvement in terms of 
average score is materiality 
with an increase of
19% 
71%
of companies improved  
their overall score
The biggest experience-
related improvement in  
terms of average score is line  
of sight with an increase of
18%
5%
improvement in overall 
content score
13
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

What we found in 2014
By analyzing 162 reports ranging from stand-alone sustainability reports 
to self‑declared integrated reports and combined reports and aggregating 
data across a range of measurable topics, we have identified some 
interesting trends that show the state of reporting within WBCSD’s 
membership in comparison with the 2013 baseline report.
What is material?
Defining materiality, or what is important to a business,  
is crucial when focusing resources, strategy and reporting, 
and is critical for scaling up solutions. Most WBCSD 
members disclose the use of a materiality process (72%) 
and often publish a matrix within their report. Some 
companies infer the use of a process, but give no detail 
on how it was executed or the outcomes found. 
Our research shows that less than a quarter of WBCSD 
members focus their reporting on those issues considered 
material to their business despite disclosing a materiality 
assessment. Nevertheless, with 23% of reports focused on 
material issues only, our findings show a notable increase 
since last year (2013: 12%). This is further reflected in the 
number of WBCSD companies (one-quarter) that have 
improved their reporting of materiality since 2013 against 
our criteria requirements, suggesting that the quality  
of disclosure on the materiality process has improved.
How much is enough?
Stand-alone sustainability PDF reports vary significantly 
in length, with the average being 93 pages (2013: 98). 
The shortest report we reviewed was 8 pages, while 
the longest was 404 pages. This wide range of report 
lengths is perhaps reflective of the differing functions 
and expectations of non-financial reporting.
There is, however, no significant correlation between 
report length and sector, region or maturity of reporting, 
suggesting that conciseness is a universal challenge faced 
by companies. Reporting against guidelines such as the 
GRI has no significant impact on the size of the report.
Disclosure of a materiality process
 
A
B
A Disclosed Process
B
Non-disclosed Process
72%
28%
 
Of 162 companies
2014
2013
11-20 21-30 31-40 41-50 51-60
61-70 71-80 81-90 91-100 101-110 111-120 121-130 131-140 141-150 >151
6
7
3
1
4
12
16
16
11
11
11
17
15
12
9
9
9
12
10
7
3
2
2
8
11
4
9
3
18
31
Number of pages
 
14
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

How are the GRI guidelines being used?
Our research shows that 86% of the reports reviewed 
follow the GRI reporting guidelines, with 25% of 
companies using the latest version of the guidelines  
(GRI G4) and 61% of companies reporting against  
the GRI G3.1 guidelines. 
From a sectoral perspective, chemicals and cement are 
the most frequent users of the GRI guidelines with all 
reports (11 companies) from the cement sector using 
the guidelines. The cement sector is also the biggest 
user of the GRI G4 guidelines, with nearly half of cement 
companies using them. The consumer goods and the 
mining and metals sectors are close behind the cement 
sector in the use of the GRI G4 guidelines. 
We have found that companies using the GRI guidelines 
perform better overall against our criteria. Our analysis 
shows a relationship between the use of the GRI guidelines 
and the materiality score illustrated by the fact that 
companies that do not use the GRI guidelines never score 
above average on this criterion.
What is the status of integrated reporting?
Most WBCSD members (78%) produce a stand-
alone sustainability report – that is the fullest source of 
sustainability information separate from any other report, 
such as an annual report.
We have found that 22 companies (14%) disclose 
environmental, social and governance matters in their 
annual reports – also known as combined reports. Thirteen 
companies (8%) issue a report they define as “integrated”, 
although this is not necessarily what it is called. A small 
number of companies produce a supplementary integrated 
or combined report in addition to a sustainability report. 
Whether it is called an annual or combined report, or 
defined as an integrated report, we see only one of these 
types of reports in the top 10 reporters, with four in the 
top quartile. Despite this, our analysis shows that self-
declared integrated reports on average score higher than 
both stand-alone sustainability reports and combined 
reports against our principles and content criteria.
2014
2013
G4
G3.1
No GRI 
application 
level 
Comprehensive Core
A+
A
B+
B
C+
C
55
17
12
36
54
7
6
20
27
11
17
2
2
4
3
64
GRI application levels/in accordance options
 
Report distribution
A
B
C
A Self-declared integrated reports*
B
Combined reports
8%
14%
C Sustainability reports
78%
*Self-declared integrated reports include those that are titled “integrated report” and those that 
refer to the  Framework developed by the IIRC.
15
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

What we found in 2014
What are they calling it?
Since the early 1990s, the titles of sustainability reports 
have evolved to reflect the increasing sophistication of 
companies’ approaches to non-financial reporting. In our 
research, the majority of reports are titled “sustainability” 
with “annual report”, “corporate responsibility” and 
“CSR” making up the rest. European businesses use 
the term “sustainability” or “sustainable development” 
most frequently in their titles (44%), followed by North 
American businesses (21%). Interestingly, CSR is used 
more by Asian-based businesses than those in other 
regions, with 67% of all CSR reports coming from  
Asia this year. 
As we outlined above, a reasonably small number of 
companies use the title “integrated report”. However, the 
majority of companies that are combining their financial 
and non-financial reporting do so under the term 
“annual report”.
How quickly are reports being published?
The vast majority of WBCSD members produce an annual 
sustainability report (or equivalent). Of these, we have 
noted that 55.6% specify a report publication date.  
Based on this, the average time period between year-end 
and the publication date is 4.5 months (2013: 6 months). 
Of the companies that disclose their publication date, the 
fastest to report are those producing an integrated report, 
taking an average of only 2.8 months.
2014
2013
Sustainability
report
Annual
report
CSR
report
Other
CR
report
Integrated
report
86
100
23
26
21
18
16
14
9
10
7
7
Title of report
 
2014
2013
One to three
months
Four to six
months
Seven to nine
months
Ten to twelve
months
Not known
33
12
3
3
15
72
66
42
42
49
Time between reporting period and publication
 
16
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

Who is validating performance?
Our research has found that more than 80% of 
reports reviewed have some form of assurance on 
their sustainability disclosures through external 
assurance or internal audit assurance.
We have found that 8% of companies do not engage 
external assurance providers but use their internal audit 
function for assurance purposes, although this proportion 
has dropped since last year. Almost 20% of WBCSD 
member companies do not seek any external assurance.
Our research on assurance has demonstrated a significant 
relationship between the use of external assurance and 
the materiality and overall scores. This explains why the 
increase in the use of external assurance with regard to 
last year (2013: 64%) coincides with an increase in both 
the overall and materiality scores.
The dominant form of external assurance is to a limited 
level, with only about 11% of companies seeking 
reasonable assurance (recognized as the most extensive 
form) on their entire report. However, the proportion 
of companies using reasonable assurance has increased 
since last year, suggesting a growing preference for this 
level of validation. 
About 14% of reports used a combination of reasonable 
and limited assurance, and a very small percentage (4%) 
confirmed they had the report assured but did not disclose 
any details about the level of assurance.
2014
2013
Limited
assurance only
Unknown
Limited and
reasonable assurance
Reasonable
assurance only
11
3
14
19
71
78
4
0
Levels of external assurance (%)
 
Assurance
A
B
C
A External assurance
B
Internal audit assurance
C No assurance
73%
8%
19%
17
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

This section delves deeper into key findings for each of the principles, 
content and experience criteria, with examples from our sample 
and recommended actions to improve the effectiveness of reporting. 
For each criteria, we indicate the status trend.
CONTENT CRITERIA
Information that should guide what  
is included as content in the report
EXPERIENCE CRITERIA
Elements that improve the reader’s  
overall experience of the report
PRINCIPLES
Overarching concepts that should 
guide the application of the content 
criteria in the report
Completeness
Governance  
& accountability
Commitments 
& targets
Accessibility
SEE PAGE 20 FOR  
MORE INFORMATION
SEE PAGE 28 FOR  
MORE INFORMATION
SEE PAGE 39 FOR  
MORE INFORMATION
SEE PAGE 21 FOR  
MORE INFORMATION
SEE PAGE 30 FOR  
MORE INFORMATION
SEE PAGE 40 FOR  
MORE INFORMATION
SEE PAGE 22 FOR  
MORE INFORMATION
SEE PAGE 32 FOR  
MORE INFORMATION
SEE PAGE 41 FOR  
MORE INFORMATION
Materiality
Strategy 
& drivers
Content 
architecture
Stakeholder 
engagement
Line of sight
DETAILED FINDINGS
3
18
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

Reliability
External 
environment
Performance
Information 
presentation
SEE PAGE 25 FOR  
MORE INFORMATION
SEE PAGE 24 FOR  
MORE INFORMATION
SEE PAGE 36 FOR  
MORE INFORMATION
SEE PAGE 34 FOR  
MORE INFORMATION
SEE PAGE 42 FOR  
MORE INFORMATION
SEE PAGE 26 FOR  
MORE INFORMATION
SEE PAGE 37 FOR  
MORE INFORMATION
SEE PAGE 27 FOR  
MORE INFORMATION
SEE PAGE 38 FOR  
MORE INFORMATION
Balance
Strategic partnerships  
& collaboration
Conciseness
Management 
approach
Evidence  
of activities
IN THIS SECTION
20 PRINCIPLES 
28 CONTENT CRITERIA 
39 EXPERIENCE CRITERIA 
43 REPORTING MATTERS TO FUTURE LEADERS
19
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

In practice
Ford Motor Company
Includes a very clear and comprehensive representation of the 
company’s value chain. The company has identified all the direct 
and indirect impacts that occur at different stages of the production 
process, along with the impacts that occur in upstream and 
downstream processes. 
For each value chain component, the report also identifies key 
stakeholders most affected by these impacts.
Pirelli & Co
Clearly states the reporting boundaries in the “Note on 
methodology” of the report.
Offers a very comprehensive and detailed value chain. It clearly 
identifies every stage of the value chain and indicates the material 
importance (high, medium, low) along with the actors driving  
these impacts (suppliers, customers, waste-recovery actors). 
Provides a carbon and water footprint for every value chain stage. 
Every stage of the value chain is accompanied by a narrative on  
the company’s strategy responding to the environmental impacts 
identified earlier.
AkzoNobel
The reporting scope and organizational boundaries are clear  
and accessible. 
Presents value chain stages in an infographic and discusses 
all components. 
The infographic also includes inputs, business activities and outputs 
(for all segment areas), so that the reader can see where the company 
creates value along the value chain.
One year on
  Stayed the same
Key findings
  The most effective reporters are those that 
clearly state their reporting boundaries, 
provide an explanation of how these were 
set, and clarify whether joint ventures or 
subsidiaries are included or excluded.
  They also include a discussion of 
sustainability impacts that relate to 
value chain activities when material. 
  While the majority of companies discuss 
some impacts beyond direct operations, 
many do not provide a comprehensive 
description of the value chain without 
providing an explanation as to why.
Key recommendations
  Clearly state report scope and boundaries  
so that there is absolute clarity over what  
is in and out of scope. 
  Adopt a value chain approach to reflect a 
wider picture of material impacts. Often the 
biggest risks and opportunities occur outside 
of a company’s direct control. 
  Include a clear description or graphical 
representation of the company’s value chain.
Completeness
Completeness describes the report’s scope and boundaries, and reporting of 
performance and targets for material issues within those scope and boundaries. 
It requires an understanding of the company’s value chain, and in particular 
material impacts that go beyond the company’s direct operations.
PRINCIPLES
20
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

In practice
International Paper 
Clearly defines key stakeholders and their significance to the company.
Provides numerous examples of where legitimate stakeholder 
needs and interests have been addressed. For example, the 
development of the Supply Chain Sustainability Strategy involves 
internal and external stakeholders, and employment plans are 
based on employee feedback. 
Uses stakeholder quotes from employees to provide additional 
insight. Some of these are critical or suggest improvements for 
the company. 
Toshiba Corporation 
Gives a clear explanation of its stakeholder selection process,  
plus a concise overview of engagement activities during the year. 
Details the relationship with each stakeholder group and their 
significance to the company; in addition, the report describes  
the company’s responsibilities to each group. 
Demonstrates response to survey results and acknowledges areas  
for improvement based on stakeholder opinions, which are also 
considered in the materiality process. 
Mondi 
Acknowledges key concerns of each stakeholder group and lists these 
openly along with how they are engaged with.
Uses the transparent Socio-Economic Assessment Toolbox (SEAT),  
an externally facilitated platform for stakeholders to voice their 
concerns, views and expectations. The SEAT process helps Mondi 
update its understanding of the socio-economic context of the 
locations where it operates and enhance channels of communication 
with all stakeholders.
 Stakeholder opinions are used within the report, including a comment 
from an external party raising criticisms and areas for improvement. 
SEAT reports are supervised by an independent third-party.
One year on
  Stayed the same
Key findings
  The most effective reporters detail 
engagement channels beyond simple 
business-as-usual mechanisms. This may 
include stakeholder panels, employee 
representation boards or community 
committees. 
  While most reporters identify major 
stakeholder groups, few explain the basis  
for selection or provide information on  
the outcomes of engagement and how  
this has influenced, if at all, their strategy 
and activities. 
Key recommendations
  Provide information on the approach to 
stakeholder engagement including channels 
used, key topics of engagement, and 
outcomes from these engagement activities. 
  Explain why the organization engages with 
specific major stakeholder groups. This will 
help demonstrate why stakeholders are 
important and what the organization and 
the stakeholders gain from open dialogue. 
  Discuss whether the issues offered by 
stakeholders have informed any changes 
to strategy or management approach.
Stakeholder engagement
Stakeholder engagement is an open dialogue process with those people or  
groups influenced or impacted by a company’s activities, now and in the future.  
Strategic and planned engagements can provide valuable insights that can inform the 
selection and design of sustainability investments, and together help businesses assess 
the impact of these investments. Engagement can take various forms, such as surveys, 
forums and other stakeholder dialogues beyond a business-as-usual mechanism.
PRINCIPLES
21
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

In practice
Novartis
Includes a dedicated supplementary document outlining the process 
and output of the materiality analysis.
The materiality matrix is comprehensive and sophisticated, providing 
detailed insight on the relative importance of issues and where 
internal expectations of materiality differ from external expectations. 
This is supported by a detailed discussion of each material issue, 
including insights raised by stakeholder interviews. 
Infosys
Offers details on the significance of each material issue to the future 
of the company and indicates where material impacts go beyond  
the company’s operating boundaries.
It is particularly strong on the geographical relevance of each issue. 
This information is presented in an easy to read infographic that 
openly illustrates the level to which these issues are currently reported 
and the baseline year for targets.
The materiality evaluation and prioritization have been externally 
verified and assured, with an additional “Materiality Matters” check 
from GRI.
ACCIONA
Presents the materiality process as a separate output for each of its 
main business lines. This allows any specific divisional differences  
to be identified, adding to the rigor and value of the analysis. 
The process also discloses prioritization of issues, internal assessment 
and validation of material aspects by the Sustainability Committees 
of the business lines, and external consultations with opinion leaders 
and sustainability experts. 
The application of the principle of materiality is externally verified in 
accordance with the AA1000 AccountAbility Principles Standard (APS).
Materiality
A materiality process is used to identify and prioritize the most significant 
environmental, social and economic risks and opportunities – from the 
perspective of the company and its key stakeholders. It is an essential 
component of any report, and if used comprehensively it can help  
focus a company’s strategic approach to sustainability and reporting.  
It can also guide investment and resource allocation decisions.
PRINCIPLES
One year on
  Improved
Key findings
  The most effective reporters provide 
a clear description of their materiality 
process, including stakeholder involvement, 
outcomes and to whom these are presented 
within the company. 
  They also present industry-specific issues, 
and provide geographical and operational 
context on material issues, for instance 
regional water scarcity. 
  However, the majority do not disclose 
more sophisticated parameters used for 
prioritization, for example magnitude of the 
impact and likelihood of the impact occurring. 
Key recommendations
  Implement a transparent, inclusive and 
robust materiality process involving critical 
and representative external and internal 
stakeholders. Clearly define the process, 
disclose the outcomes and explain how this 
has influenced strategy and decision-making. 
  Structure the report around the outcomes 
of the materiality analysis, or at least clearly 
direct readers to where they can find more 
detail on each of the material issues. 
  Describe how material issues have been 
prioritized and how they relate to broader 
enterprise risk management. 
  Where possible, consider external assurance 
or validation for both the process and the 
outcomes of the materiality analysis to 
reinforce the report’s credibility.
22
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

In focus:
Material items  
and integrated risk 
management at Eskom
Eskom’s integrated report focuses on 
qualitative and quantitative items that 
are material to Eskom’s operations and 
strategic objectives. The board and 
executive management have defined 
what is “material” through extensive 
consultation within Eskom and with 
Eskom’s stakeholders, while taking 
into consideration Eskom’s strategic 
objectives, risk assessments, and the 
way in which its value chain operates. 
 
Material items are those that are both of high 
concern to stakeholders and have a significant 
impact on the business. Among the many things 
Eskom analyzed to determine its material items, the 
company concentrated on the key risks identified by 
its integrated risk management process. Once the list 
was determined, it was analyzed in terms of strategic 
objectives and the integrated reporting steering 
committee considered its accuracy and completeness. 
As part of Eskom’s governance process, the executive 
management, social ethics and sustainability, and 
audit and risk board-level committees also reviewed it.
Eskom’s stakeholder relationships are managed in 
terms of a governance process aligned with the King III 
code of corporate governance. This process includes a 
stakeholder management data tool and the bi-annual 
submission of an integrated stakeholder relations 
issues and engagement report to the executive 
management committee and board. 
More than 120 engagements with stakeholder were 
held in fiscal 2014 at a national level, excluding the 
many engagements that happened at operational and 
provincial levels. Engagements focused on sharing key 
information, improving existing and new relationships, 
and creating partnerships to ensure support in 
addressing challenges that are affecting customers.
Stakeholder materiality matrix
The issues identified through the stakeholder 
engagement process were aggregated and 
summarized into a stakeholder materiality matrix. 
Stakeholder concerns ranked as “high” or “medium” 
impact have the potential to significantly affect the 
company’s achievement of its strategic objectives.  
The material items have been numbered to allow 
for cross-referencing with the key focus areas and 
associated risks table which can be found on the  
Eskom website at http://integratedreport.eskom.
co.za/esk-risks.php
Risks relating to material items 
Eskom considers two risk profiles:
1. The enterprise risk profile is a top-down view  
of risks facing the organization, including: external 
factors and enterprise events that are strategic 
challenges; the company’s ability to develop and 
execute strategy, achieve strategic objectives, and 
build and protect value; those that occur across 
multiple divisions; a single business risk that is 
material enough to impact the objectives as a whole.
2. The business risk profile is a bottom-up view of risks 
facing the divisions, including: risks that will have 
significant consequences should they materialize, but 
that may not be consistently listed on the risk register 
because of the perceived adequacy of the controls 
or due to their perceived low likelihood; business 
continuity management risks; disaster risks.
In line with Eskom’s integrated risk management 
methodology, inherent risks are continuously reviewed 
with a particular focus on the effectiveness of controls. 
Risk identification is based on recognizing what could 
go wrong and disrupt the achievement of current 
objectives, and whether there is adequate mitigation 
in place to address such an eventuality. The key focus 
areas of the stakeholder materiality matrix are:
I.	
Focus on safety
II.	
Improve operations
III.	
Being customer centric
IV.	
Build strong skills
V.	
Security of supply
VI.	
Delivering capacity expansion
VII.	 Labor
VIII.	 Reduce environmental footprint in existing fleet
IX.	
Implementing coal haulage and the road-to-rail 
migration plan
X.	
IPP-contracted energy
XI.	
Independent System Market Operator
XII.	 Maximize socio-economic contribution  
and procurement equity
XIII.	 Employment equity
XIV.	 Ensure financial sustainability
Eskom has devised a heat map that indicates the relative 
likelihood and impact of selected risks noted in the 
materiality matrix. For a risk to be classified as a priority 
one risk, both the likelihood and impact should be high.
Eskom’s integrated risk management process,  
through the defining of material items, the stakeholder 
materiality matrix, and the identification of risks relating 
to the material items, allows the company to provide 
greater security for its employees, customers and  
other stakeholders.
Stakeholder materiality
Low
High
Impact
Low
Likelihood
High
XIV
VI
V
I
II
VIII
XI
XII
XIII
III
IX
X
IV
VII
Heat map of risks linked to material items
23
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

External environment
The external environment refers to the company’s forward-looking narrative on 
the operating environment that could influence its strategy and performance. 
It can include societal, environmental and regulatory risks and opportunities. 
Anticipating and responding to the external environment can drive resilience, 
improve competitiveness and set the direction for a long-term sustainability vision.
One year on
  Improved
Key findings
  The most effective reports discuss the 
external environment and demonstrate 
an understanding of how these might 
impact their business by creating risks or 
market opportunities that would otherwise 
go unnoticed. 
  Some reporters do not provide an in-depth 
and forward-looking analysis of their 
external environment and instead focus  
their forward-looking narrative exclusively 
on targets. 
  While companies are generally strong on 
their awareness of megatrends and changing 
marketplace conditions, they often provide 
little insight into how regulation could 
impact strategy and performance.
Key recommendations
  Carry out a wide and thorough analysis  
of the external environment and link  
these insights to the enterprise risk 
management process. 
  Describe the external environment in the 
context of the business model and strategy, 
including plans to take advantage of new 
opportunities and other business benefits, 
such as cost savings and risk mitigation. 
  Use external environment analysis to inform 
the company’s long-term vision for the 
integration of sustainability into the business 
model and strategy.
PRINCIPLES
In practice
CLP Holdings
Acknowledges diverse challenges affecting its business operations 
and provides an insightful discussion on the impacts of climate 
change and appropriate management plans to address these  
risks appropriately. 
Additionally, the report takes into account shifting market trends  
and discusses the business implications of reduced demand as  
a result of increased energy efficiency. 
Includes a thorough discussion on regulations that the company 
complies with, as well as engagement around future regulation. 
Honda Motor Co. 
Provides a detailed overview of current external risks and describes 
global trends (biodiversity, resource scarcity, and global warming) 
including how they will impact performance and strategy. 
Discusses shifting market trends through Honda’s Environmental 
Performance Standards (HEPS) to respond to and take advantage  
of opportunities for business expansion. 
Shows awareness of the regulatory environment and demonstrates 
opportunities and risks arising from tightening regulations. 
Sasol
Offers a succinct discussion of why natural resource competition 
requires greater efficiency within the organization and the 
commercial opportunities from technological innovation. 
Provides insightful discussion on the external environment in many 
different respects, demonstrating detailed awareness of the financial 
and political situation in operating countries and the impacts of 
geopolitical uncertainties on product prices. 
Includes a thorough discussion of regulations, notably of the 
challenge of taxing carbon in South Africa.
24
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

Reliability
Evidence of independent third-party assurance of key sustainability data and  
disclosures increases the credibility and reliability of the report to the reader.  
The disciplines and controls needed for assurance also contribute to the overall value that 
non-financial reporting provides to both the company and its stakeholders. These can 
lead to improvements in corporate integrated performance by providing confidence to 
senior management that non-financial data can be used in the decision-making process.
One year on
  Not applicable
Key findings
  The most effective reporters disclose an 
assurance statement that details the name 
of the assurance provider, its independence 
and describes in sufficient detail and  
non-technical language, the objective 
and scope of the assurance process, the 
engagement boundaries, and the applied 
standards or regulations. 
  In addition, they disclose the key findings 
and recommendations for improvement  
if found. 
  Most reporters use external sources of 
assurance with the use of internal audit 
decreasing from last year. However, the level 
of assurance is more likely to be limited rather 
than reasonable with the definitions of what 
these terms mean not always consistent.
Key recommendations
  Describe the assurance process fully and  
in clear language. Consider its effectiveness 
by combining both internal and external 
assurance process with providers working  
in collaboration. 
  If external assurance is not used, explain 
why. If it is, then develop the role and  
scope of the external assurance provider,  
its independence, engagement boundaries, 
and the key findings of their report.
  If technical language is required, then the 
assurance provider should define what is 
meant by terms that could be misunderstood.
PRINCIPLES
In practice
Royal Philips 
Provides reasonable external assurance of its sustainability statements 
together with social and environmental performance disclosed in  
its annual report.
The assurance statement provides an integrated opinion as to  
the information on sustainability in the rest of the annual report.
The GRI content index is used to more specifically indicate the 
information and data assured under the independent assurance 
engagement.
CEMEX
Provides limited assurance for the KPIs relating to the material issues 
identified in the report.
The assurance statement provides a detailed description of the KPIs 
assured and indicates the procedures or guidelines employed to 
calculate the relevant indicators. 
The assurance statement also provides explanations on the basis, 
objective and scope of the verification before conclusions.
Eskom Holdings
Provides external assurance on selected sustainability information  
in the integrated report.
Reasonable assurance is provided on key performance indicators that 
relate to material issues. The indicators that were reasonably assured 
are classified by themes and clearly listed in the assurance statement. 
Key performance indicators are also presented in tables featured in 
the appendices and assurance is marked with an abbreviation to 
help differentiate the indicators that were assured from those that 
were not.
25
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

Balance
A balanced report is transparent about risks, successes, failures, challenges  
and opportunities that a company faces now and in the future. The report 
should reflect positive as well as negative performance over the reporting  
period to enable a complete and unbiased assessment by the reader.
One year on
  Improved
Key findings
  The most effective reporters disclose 
sustainability risks that pose a threat to the 
company, its profitability and its reputation.
  Credible reports provide balanced disclosure 
on performance. 
  Some reporters do not disclose information 
on the challenges they have encountered 
or how they have responded to major 
stakeholders’ concerns, instead focusing 
exclusively on positive stories and 
performance.
Key recommendations
  Ensure a balanced report by providing 
details on missed targets and areas of poor 
performance, including the context and  
any corrective measures taken. 
  Demonstrate engagement with stakeholders 
to respond to concern or criticism on the 
response to material issues.
  Disclose the nature and amount of fines paid 
and any non-compliance incidents, including 
what caused them and what actions are 
being taken to prevent them in the future,  
as well as any settled or ongoing litigation. 
For the latter, involve legal and finance to 
ensure consistency with other corporate 
reporting disclosures.
PRINCIPLES
In practice
Empresas Publicas de Medellin 
Discloses failed targets through color coding that indicates  
the incomplete goals alongside short narratives on poor areas  
of performance.
A full page is dedicated to fines and penalties for regulatory 
non-compliance are presented on charts according to the cause 
or to the entity imposing the penalty.
Provides details on the lawsuits filed against Empresas Publicas de 
Medellin in relation to claims from suppliers and contractors’ employees.
Stora Enso
Addresses major stakeholder concerns and responds to negative 
media coverage.
Describes the nature of the complaints received during the reporting 
year, and includes interactive links that lead to the company’s 
responses which are located within and outside of the report. 
On top of disclosing environmental fines and incidents, the report 
includes discussion of risks and challenges experienced during 
the year. 
Metsä Group
Details legal cases, claims and subsequent actions, including the 
people involved, dates, the nature of the accusations, and the 
consequences of the proceedings.
Includes in-depth disclosure of environmental incidents displayed 
in a table indicating the business area, the unit, incidents and 
corrective actions.
Responds to negative mainstream and social media coverage.
26
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

Conciseness
Conciseness implies focusing on the most relevant information  
and messages, and prioritizing quality over quantity. It is one of  
the most challenging criteria to get right. If a report can be drafted  
in a concise manner, it can avoid unnecessary disclosure and improve  
coherence while reducing information overload for readers.
One year on
  Improved
Key findings
  The most effective reports are meaningful 
and relevant to the reader while being 
succinct and focused. 
  Few reporters offer a summary document 
and those who do often make it too long  
or focus only on activities without providing 
information on strategy or performance. 
  Often, despite their length, reports do  
not provide sufficient information on 
material issues and other critical aspects  
of effective reporting.
Key recommendations
  Understand the audience’s information 
requirements and ensure reports meet  
their needs. 
  Focus reporting on material issues and 
avoid unnecessary disclosures on less 
important issues. 
  Provide a summary document so that time-
poor audiences can get a concise overview  
of key performance and highlights.
  Agree on word limits for key sections and 
ensure report contributors are properly 
briefed so that they understand how much 
detail is needed.
PRINCIPLES
In practice
Unilever
A concise report focused on performance against the Sustainable 
Living Plan.
Avoids over-disclosure as well as those not directly related to the 
company’s goals, performance and activities. It refers readers to 
online content for more detailed discussions on the company’s 
focus areas.
Written in a clear and accessible language, using short sentences  
and bullet points and avoiding technical jargon.
Anglo American
Content is informed by the material process and material issues  
are clearly signposted for readers. 
A clear summary document offers key points under each overarching 
topic and gives a good overview of company activities. 
The report is not overly fragmented. Where information exists  
in other sources, this is clearly signposted from the main report. 
AB Carbon Black (part of Aditya Birla Group)
All material issues are addressed appropriately and within  
reasonable length.
Good effort is made to communicate complicated issues  
in simple terms. 
Aditya Birla presents a strong example of a company that has 
succeeded with the conciseness criteria, producing a concise report 
focused on the identified material issues and structuring the report 
narrative around these.
27
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

Governance & accountability
Governance and accountability focus on how a company defines  
its management responsibility and oversight for sustainability activities  
and performance. Sustainability governance should be an integral part  
of the overall corporate governance structure to support further integration  
of sustainability challenges and opportunities into business decision-making.
One year on
  Improved
Key findings
  The most effective reporters demonstrate 
how the company has integrated 
sustainability governance into its overall 
corporate governance structure, such as 
through board level committees. Evidence 
of this structure is provided beyond the 
corporate function and typically includes 
regional and local governance. 
  Additionally, the most effective reporters 
include specific details on the governance 
activities of the board committee, including 
the specific sustainability responsibilities  
of committee members, and the frequency 
of sustainability committee meetings. 
  Few reporters provide details on how the 
board or senior executives are remunerated 
or incentivized upon achievement of 
sustainability goals or targets. Insight into 
key decisions, actions and outcomes from 
these meetings is rarely included in reports.
Key recommendations
  Describe how sustainability governance 
is structured and how this is embedded 
in the overall governance structure of 
the organization. Ensure there is a clear 
description of any board committee that 
has sustainability oversight. 
  Provide further details on committee 
meetings related to sustainability and 
explain local or regional sustainability 
governance and how it feeds into the 
overall governance structure.
  Use internal audits to improve the rigor  
of reported data. This will help to improve  
its reliability.
CONTENT CRITERIA
In practice
DSM 
Provides a detailed description of the sustainability governance 
framework, including responsibilities and functions of various boards 
and sub-committees.
Describes how sustainability is addressed through internal regional 
sustainability networks in a number of emerging economies.
Provides transparent and comprehensive information on how 
board-level incentives are linked to sustainability targets, including 
the employee engagement index, safety performance, GHG 
emissions reductions, and energy-efficiency improvements. 
ABB
Includes a diagram illustrating how sustainability governance  
is organized at corporate and regional levels. This is followed by  
a compelling narrative on corporate-level sustainability groups  
and committees.
Provides insight into regional and local sustainability through  
a detailed account of the Global Sustainability Network, which 
comprises country and regional specialists supported by local 
sustainability officers and health and safety advisors.
Arcelor Mittal
Provides detail on the composition and mission of a newly created 
Corporate Responsibility Council, and explains the reorganization  
of the management structure to achieve a deeper understanding  
of regional issues at corporate level.
Includes detail on the incentives the Board receives and which are 
dependent on the company’s fatality and LTIFR record, referencing 
the annual report for more information. 
Offers more insight through additional narrative on the 
implementation of corporate responsibility at regional and local levels.
28
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

It consists of nine areas with measurable targets to 
monitor progress: innovation, environment, society, 
people, value chain, good governance, stakeholder 
engagement, dissemination and leadership, and 
accountability.
At ACCIONA, sustainability actions are a top-down, 
hands-on concern, supported from the highest 
governance level. Since 2009 the Sustainability 
Committee – comprising four non-executive directors 
– has been on the company’s Board of Directors 
and exclusively dedicated to sustainability. It guides 
ACCIONA’s corporate policies, objectives, and 
programs with regard to sustainability and monitors 
implementation and progress. In 2013, among other 
tasks, the Sustainability Committee: verified advances 
in the development of initiatives and the degree of 
compliance of the targets set for the previous year 
within the Sustainability Master Plan; set targets for 
2013; and approved the company’s Policy Book and  
the annual Sustainability Report. 
ACCIONA’s Sustainability Management unit is 
responsible for coordinating and putting into practice 
the initiatives and commitments of the Sustainability 
Master Plan, working in close collaboration with a 
number of areas of the company. To bring sustainability 
closer to the businesses, in 2012 sustainability 
committees were created in ACCIONA’s main 
divisions – Energy, Infrastructure, Water and Services. 
These committees, together with the Sustainability 
Management unit, lead the implementation of the 
sustainability strategy in each business line through 
specific actions and performance targets. 
Being a global company with presence on five 
continents, ACCIONA also has sustainability 
representatives outside of Spain, including in Australia, 
Brazil, Chile and Mexico. This organization helps 
ACCIONA better understand the social, environmental 
and human rights context in the different international 
markets, and therefore to implement relevant 
initiatives that are appropriate to the local context.
Furthermore, sustainability is considered in the 
company’s risk management system. Whether or not 
an action will have a negative impact on sustainability 
and development is among the criteria used by 
ACCIONA management to assess the different risk 
scenarios within risk mapping. 
To maintain transparency and accountability, 
shareholders are informed of sustainability topics 
relevant to the company at the General Shareholders’ 
Meeting. Since 2012, the contents of the annual 
Sustainability Report have been submitted for the 
review and approval of the shareholders at their 
yearly meeting. Through their vote, the shareholders 
express their opinion of the how the company is doing 
on social, environmental and corporate governance 
activities and performance as disclosed in the report. 
ACCIONA has also taken a step further in its 
commitment to transparency by producing a separate 
Integrated Report which connects the information 
provided in the Sustainability Report, the Financial 
Statements, and the Annual Report. In 2014, for 
the second year running, ACCIONA published its 
Integrated Report 2013, applying the guidelines 
of the International Integrated Reporting Council 
Framework. Following the principles set out in the 
<IR> Framework, the Integrated Report describes 
the company and its prospects using transparent, 
comprehensive and relevant information, addressing 
the internal and external elements that enable 
ACCIONA to create and distribute value in the short, 
medium and long term. 
The Integrated Report aims to enable stakeholder 
examination of key aspects of ACCIONA’s business, 
moving from a global overview down to the details  
of each unit, discussing the future trends, challenges 
and risks it faces, and the new strategy implemented to 
achieve growth that, together with its sustainable value 
creation model, is essential for the company’s future.
In focus:
Using governance to 
embed sustainability into 
ACCIONA’s business model
ACCIONA’s Sustainability Master Plan 
2015 outlines its strategic approach  
to sustainability.
 
INTEGRATED
REPORT
2013
29
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

Strategy & drivers
A strategic approach to sustainability is clearly-articulated and addresses  
material environmental, social and governance risks and opportunities.  
It should link to the overall vision and mission of the company and  
support the delivery of sustainable outcomes.
One year on
  Improved
Key findings
  The most effective reporters describe how 
their business model depends and impacts 
on resources beyond financial capital, for 
instance natural and social capital. They also 
demonstrate of understanding of how these 
translate into risks and opportunities specific 
to their business. 
  Visually or through the narrative, they also 
articulate how these risks and opportunities 
have been integrated into the corporate 
business strategy or, at least, describe the 
management responses put in place to 
address these issues in a strategic way.
  However, many reporters still do not make 
connections between sustainability and 
financial performance – either quantitatively 
or qualitatively – and fail to demonstrate 
how sustainability supports business 
objectives in the medium to long term.
Key recommendations
  Identify the key sustainability outcomes  
the business wants to achieve and link  
these to the core business strategy.  
Describe how the business strategy and 
business model have been adapted to 
support these outcomes. 
  Avoid limiting the sustainability outcomes to 
downside risk management, but aim to show 
how the strategy drives commercial value as 
well as sustainable outcomes, for example 
through innovation. 
  Articulate a clear business case that is specific 
to the business and external environment, 
and also reference key drivers such as cost 
savings, alongside the expected benefits.
CONTENT CRITERIA
In practice
Siemens
Thoroughly describes three strategic directions, each broken down 
into three focus areas. The report also explains sector strategies. 
Articulates a long-term vision which is linked to the company’s 
overarching strategy. Also uses megatrends to inform strategy  
and links these to opportunities. 
Shows how the service business will provide profitable growth in the 
long term and explains how intensifying customer focus will enable 
the company to respond quickly to changing market requirements. 
Novozymes
Sustainability is fully embedded in the company’s vision and across  
all three strategic principles that underlie Novozymes’ business  
model and drive long-term growth. Additionally, the interview  
with the Novozymes executive vice president for research and 
development demonstrates how core operations and the business 
model will generate value over time. 
Various examples provide strong evidence that sustainability  
is integrated in all company functions ranging from corporate 
processes to operational and process functions.
AkzoNobel
Elaborates a clear sustainability strategy with four main components 
fully embedded in the corporate business strategy and translated  
into focused business area strategies. 
The corporate strategy is being translated into three specific 
divisional strategies, all of which include the key elements of 
the sustainability strategy.
The report is also very strong on its value creation messaging, 
making a solid business case for sustainability by showing the 
monetary value of efficiency programs for GHG emissions,  
energy and waste reduction.
30
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

Top management buy-in
Integrating sustainability starts at the top and is 
implemented at the grassroots level in a company. 
An understanding from top management of the 
link between sustainability and successful business 
is crucial, since this is where the necessary strategic 
decisions are made and the relevant policies and 
structures are created. 
At SCA, top management buy-in is not a problem. 
The company’s origins as a forest products company 
have given it a deep connection with and sense of 
responsibility for the environment; as early as the 
1950s, SCA had already established an extensive 
social program for its employees. The insight of 
sustainability’s impact on business success led 
to the decision to include a senior vice president 
for sustainability in the top management team in 
2010. Even though SCA was already advanced in 
the sustainability field, this organizational change 
emphasized even more the importance of value 
creation for people and nature and boosted the 
sustainability focus.
Strategy, target setting  
and operationalization 
Strategy, target setting and follow-up are central to 
integrating sustainability throughout the company. 
At SCA, sustainability is integrated into the business 
strategy process. The sustainability strategy is not 
separate – it is part of the business strategy.
Developing a strategy and targets requires the 
integration of stakeholders’ views in the process to 
ensure focus on relevant issues. SCA conducted its 
first stakeholder analysis in 2008 and has continued 
to run similar analyses regularly. Management also 
needs to consider which business drivers will affect 
the company and stakeholders, such as an aging and 
growing population, a growing middle class, changing 
customer and consumer behavior, and climate change.
SCA has set up a number of group targets – financial, 
people and nature – that are all equally important.  
The targets are operationalized and included into the 
business units’ business plans; the business units are 
asked to report back on target fulfillment. This setup 
places the sustainability aspect high up on the 
business agenda.
SCA’s energy-efficiency program, ESAVE, designed 
to reduce consumption and carbon emissions, 
is an excellent example of how the CO2 target is 
implemented throughout the company. ESAVE takes 
a small-scale approach, yet generates a significant 
effect. For example, a typical ESAVE project could 
involve reducing electricity consumption by improving 
or replacing pumps, compressors, fans or lighting. 
Between 2010 and 2013, 1,000 projects were 
implemented, resulting in a 3.1% reduction in energy 
used per tonne of product produced.
Bringing non-financial data into  
the overall reporting cycle 
What is measured gets done; therefore the reporting 
of non-financial data and setting up key performance 
indicators (KPIs) is crucial to the integration process. 
SCA has dedicated one person to developing and 
integrating non-financial reporting into financial 
reporting, an effort which has increased the quality 
of the data considerably. 
Engage all employees as  
sustainability ambassadors
As Europe’s largest private forest owner, forests 
are very valuable to SCA, both as a source of raw 
materials and as carbon sinks. Its 2.6 million hectares 
of forestland largely absorb the carbon emissions from 
its own production. When it comes to sustainability 
implementation, the operational decision-makers 
make all the difference. And they need to understand 
why a sustainable approach is beneficial and 
meaningful to them, preferably in terms of return  
on investment and efficiencies. 
In 2011, SCA conducted an internal survey which 
showed that 40% of its sales and marketing people 
had experienced situations where the company’s 
sustainability approach had been a decisive factor in 
contract negotiations. Customers want to do business 
with a financially stable company that treats its 
employees fairly. Thus employees need to be provided 
with the appropriate means for telling the sustainability 
story, such as presentations and brochures. 
SCA’s 44,000 employees are an invaluable asset 
as sustainability ambassadors. Via the intranet, TV 
monitors and magazines, staff share best practice 
examples of sustainability efforts, thereby inspiring 
others and making people proud to work for a 
sustainable company.
In focus:
The noble art of  
integration at SCA
Sustainability is integrated into 
basically every company’s business. 
But what does this mean? And how 
can long-term sustainable business 
thinking be truly integrated into  
an organization?
 
SCA participates with an all-female team  
in the Volvo Ocean Race 2014-2015
31
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

Commitments & targets 
Commitments and targets are specific and measurable performance goals  
or management actions that a company aims to achieve over a given period, 
ideally for each material issue. They are critical to delivering a company’s strategy 
and enable annual reporting on progress. They are increasingly combined  
with more aspirational, long-term objectives and stretch targets.
CONTENT CRITERIA
In practice
Unilever
Displays past, present and future targets along with the company’s 
strategic objectives in a single and comprehensive table that clearly 
indicates the level of achievement according to four performance 
metrics; achieved by target date, “on-plan for target date”, “off-plan 
for target date” and percent achieved by target date. 
The targets listed are measurable and have clear timelines associated 
with delivery.
Classifies targets against different focus areas as indicated through 
color coding. This helps with the user experience because relevant 
content can be easily found.
Heineken
Identifies four key areas against which 2020 targets have been set.
Focuses on the 2015 milestones accompanied by progress made 
against each milestone in 2013.
The level of achievement is indicated through color coding which  
is supported by the results in numbers or narrative.
Holcim
Includes a summary of progress against targets at the beginning of 
the report. Based on its Sustainable Development Ambition 2030, 
the company has set long-term aspirations and intermediate targets 
to provide a clear pathway for it to achieve its ambitions and to 
address focus areas.
Targets are displayed throughout the report and consistently have  
a clear timeline for delivery.
One year on
  Improved
Key findings
  The most effective reporters set ambitious 
overarching aspirational objectives for  
each material issue, which are supported  
by specific and measurable targets. 
  They also use short- or medium-term 
intermediary targets to support the 
achievement of longer-term goals.  
Some companies, however, only have a 
short-term focus, typically one to two years, 
and use ambiguous and unspecific language 
when setting targets.
  Some companies do not report against their 
targets and there is often limited discussion 
on how targets will be reached.
Key recommendations
  Ensure every material issue has a measurable 
target, ideally addressing those direct 
impacts within the operations of the 
business as well as the impacts of customers 
and suppliers in the wider value chain,  
where material. 
  Set medium- and long-term targets  
alongside those for the short term so 
that readers can see a clear path towards 
improved performance. 
  Report on progress and the level of 
achievement against past targets, regardless 
of poor performance. This will help deliver  
a more balanced report.
32
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

The process
Stakeholder views and perspectives of the future 
had to be considered for these targets to be seen as 
legitimate by the company’s internal and external 
stakeholders. Additionally, the targets had to be broad 
enough to involve various departments within the 
company and had to benefit both the company and 
society, following Fibria’s concept of lucro admirado 
(admired profits). This concept recognizes that 
generating returns for its shareholders is an essential 
business role, but that these returns must be seen by 
society as legitimate, conserving the environment  
and improving quality of life.
Therefore, it was determined that the best process 
would have to be both inclusive and systemic.  
The process involved not only the company’s 
leadership, Board and Sustainability Committee, but 
also all areas within the company. Buy-in at all levels, 
as opposed to the defining of long-term targets from 
the top down, was considered an essential part of 
ensuring that the targets were also systemic, creating  
a sense of shared responsibility.
Stakeholders’ views were brought into the process 
through the inclusion of numerous tools, such as 
the company’s Materiality Matrix, the Enterprise 
Risk Management (ERM) project, and maps of the 
company’s key impacts on communities.
A set of 90 variables that directly or indirectly affect  
the company’s forest management, pulp production 
and sales were identified. These variables were 
grouped into six key macro-themes that directly 
influence the company’s performance: market  
and shareholder return; eco-efficiency; forest 
management model; stakeholder relationships;  
social acceptance and legitimacy; personnel 
management and corporate culture.
Results and outreach
This process resulted in the establishment of six 
targets with a 14-year horizon, corresponding to 
approximately two eucalyptus harvest cycles, ending 
in 2025. The six systemic, long-term targets each 
cascade into short- and medium-term targets, and 
involve numerous KPIs, some GRI indicators, and 
other indicators that are sector specific. Fibria makes 
all indicators available in its annual report, presenting 
how far the company has gone to reach the targets 
and where the challenges lie.
Fibria has been part of the IIRC Pilot Programme; 
with the objective of adapting its report to the IIRC 
framework, the company created an infographic 
format of its 2013 report (see below). This format 
accounts for the status of performance in relation to 
each of its long-term targets, as well as connecting 
each target to a specific element of the company’s 
business model. It is clear from the infographic, for 
instance, that most long-term targets are related  
to the company’s forest operations. With this tool, 
Fibria’s stakeholders have a more accessible and user-
friendly way of understanding how the company seeks 
to generate value in the long term and the initiatives 
and strategy used to reduce impacts, mitigate risks 
and make the most of opportunities.
Future challenges
These targets, like societal demands and the business 
itself, are not static and may evolve or take on new 
commitments depending on market, business or 
societal requirements. Moreover, further work must 
be done to more thoroughly incorporate these targets 
into the company’s management systems.
Download Fibria’s long-term targets matrix.
   
Savings 
of R$8.5 
million
1- To facilitate understanding of the connection between our ﬁnancial and non-ﬁnancial performance, we present 
Fibria’s business model, that follows the  the International Integrated Reporting Council’s (IIRC) framework.
2- Data from 31 December 2013.
3- Data from this infographic does not include 50% of Veracel, except for the Financial Management indicators.
Infographic: Gerson Mora/Maná e.d.i.
Waste, emissions
and eﬀ luents
421,561
420,647
423,293
2011
2012
2013
Workers
Employees
1,554
Outsourced
2,505
Logistics
Foreign market
58% Highway 
92% Long 
distance 
maritime
11% Cabotage
31% Rail
Technology 
and Innovation 
Research and 
development of 
technology and 
innovation applied to the 
development of pulp and 
biorefinery processes 
and products
The weight of 
a small car
1 t
Communities
400+
20,000+
volunteers in our
Odor Perception
Networks
people visited our Environmental 
Education Nuclei
is equivalent to 
a soccer field
1 hectare
Production 
Process
The logs of wood
are peeled, chopped
and cooked. This process 
extracts the pulp.
This pulp is bleached and 
processed into
pulp sheets, cut
and assembled
into bundles.
1m3
The size of a 
small water 
tank
Turn to see more information
39%
Clients
Distribuition of sales
per region - 2013
Client 
satisfaction 
index
85%
Europe
Asia
24%
Latin
America
9%
North 
America
28%
Logistics
To produce
one metric 
tonne
3.9
m3 of
water
consumed
52.9
kg of waste dispoed
in landfill
3.46
m3 of wood
0.58
MWh of 
energy 
consumed
Fibria is the first link in a 
long value chain of value 
that starts in the forests and 
goes to global consumers 
of various types of paper 
used in education, health 
and hygiene. Throughout 
the value chain, we interact 
with many partners: - 
communities, suppliers, 
governments, NGOs, 
among others – generating 
and sharing value on a 
sustainable basis.
OUR BUSINESS: FROM 
THE FOREST TO
THE CONSUMER
Mission
Develop the
business of 
renewable forests
as a sustainable 
source of life
Vision
Consolidate the planted 
forests as a producer of 
economic value. Generate 
healthy profits, in tandem 
with environmental 
conservation, social 
inclusion and improved 
quality of life.
MATERIAL ISSUES 
Certification, voluntary commitments
of the sector and regulations 
Local development and impacts
on communities 
Expansion of business
Value creation through innovation
Financial management
Water Use 
Social and environmental
management of the supply chain 
Forest management:
biodiversity, land use
Relations with the government 
Transparency and engagement
with stakeholders
LONG TERM TARGETS
Reduce by one third the
amount of land required for
pulp production
Double the absorption of
carbon from the atmosphere
Conduct the environmental 
restoration of 40 thousand 
hectares of the company’s own 
land, between 2012 and 2025
Help the community to make 
70% of the income-generating 
projects supported by the 
company self-sustaining
Reduce by 91% the
amount of solid industrial 
waste sent to landfills
Achieve an 80% approval 
rating in local communities
2025
Target
2013
2011
Baseline
Below the 
baseline
Turn to see more information
EXPANSION
OF BUSINESS
In 2013, Fibria intensified its 
attention on opportunities 
that could maximize the 
value of the forest, such as 
the use of eucalyptus wood 
for biofuel production, and 
devoted to the planning of 
the expansion of the pulp mill 
in Três Lagoas (MS), always 
taking into consideration a 
disciplined growth.
GOVERNMENT 
RELATIONS
Fibria contributes to the
development of public
policies through various
entities representing
the forest and pulp
and paper sectors.
The company is not
tied to political parties,
but contributes
financially to
election campaigns.
FINANCIAL 
MANAGEMENT
Market value
in R$ milion
2011
2012
2013
6.5
12.5
15.3
Net debt / EBITDA 
in US$ 
2011
2012
2013
Net sales
in R$ milion
2011
2012
2013
5,854
6,174
6,917
Net profit
in R$ milion
2011
0
2012
2013
-868
-698
-698
Ebitda*
in R$ milion
2011
2012
2013
1,981
2,253
2,796
* Earnings Before Interest, 
Taxes, Depreciation and 
Amortization
Data includes 
50% of Veracel
4.2
3.3
2.6
Market
(free float)
Treasury
BNDESPar
Shareholder 
structure
30.38%
40.20%
Votorantim 
Industrial
29.42%
0.06%
R$67 million in 
energy sold
The color of each circle 
represents an aspect
Resources
Activities
Results
Groundwater
Root  
Soil
Trunk
Canopy
Leaf
Solar 
energy
Water
Water
CO2
O2
Eucalyptus 
Eucalyptus, as all 
trees, consumes 
water and carbon 
dioxide and through 
photosynthesis 
produces biomass, 
water and returns 
oxygen to the 
atmosphere and 
stores carbon in its 
trunk. Eucalyptus 
is a very eﬀ icient 
species and 
produces more 
wood with fewer 
environmental 
resources.
Certification
739,679
781,660
Land certified 
by FSC®
Land certified
by Cerflor/PEFC
 846.282
Total land
in hectares
Risks
Incorrect disposal of solid
waste and packaging 
Contamination of
water bodies 
Fires 
Oil and chemical spills
Change in fauna and flora 
Isolation of communities 
Generation of dust and noise 
Road traﬀ ic accidents 
Price appreciation
of the land
Technology 
and Innovation
Developing sustainable
technologies involving genetic 
improvement and forest management, 
and the generation and selection of 
superior clones in productivity and 
adaptability, biological pest control,
soil conservation and nutrition of the 
eucalyptus. Fibria’s leadership in
forest technology is the result
of over 35 years of studies
and research.
municipalities 
where the 
company is 
present
242
Seedlings 
produced 
in own and 
community 
nurseries
1 year
2 years
3 years
4 years
5 years
6 years
7 years
Forest 
management
Ensures the supply
of eucalyptus wood to the
Industrial Units, within the
parameters of productivity, quality,
cost and sustainability 
Planning of wood supply 
Environmental permits and monitoring 
Environmental restoration
and protection 
Planting and maintenance 
Harvest
EUCALYPTUS
NATIVE TREES
For 
productive 
purposes
For 
environmental 
conservation
Carbon 
sequestration 
by trees, 
representing
18.5 mil tCO2eq
Biodiversity 
and Ecosystem 
services
Proper forest management allows
for the existence of several species
in the company’s areas: 
The forest contributes to 
water balance 
17 watersheds 
monitored
1.943 plants
652 birds
34%
of the land 
is used for 
environmental 
conservation
WATER BODIES
Fibria maintains an open dialogue with 
communities with the objective of
reducing the impacts of its
operations, and also conducts
environmental and social
sustainability projects in
these regions
5,000+ families involved in
income-generating projects
R$31.6 million invested
in social projects in 2013
Communities 
Combined production of 
wood and food products
Land
Planted
504,862
Fibria 
Total
846,282
Conservation
288,786
Partners 
(Rural 
producers)
108,053
Infrastructure
52,635
In hectares
FOREST 
PROCESS
Food products 
and honey are 
produced by 
communities
in the PDRT and
Colmeias programs
Product
Wood
16,042,043 m3
Subproducts
Soil 
correctives
Liquid 
biomass
Wood 
products
Product
Pulp
4.7 million t
Workers
Employees
2,015
Outsourced
10,586
Equipment
Pesticides
Fertilizers
Inputs
Water capture points
76,946,152
68,029,260
2012
2013
Eucalyptus seedlings
1,754,291
Water captured (m3)
439
To produce
1m3
of wood
4.7
eucalyptus 
trees
0.004
hectares
of plantations
0.13
kg of 
chemicals/
defensives
WATER 
CYCLE
Other entries
(humidity in wood,
water in chemical
inputs, rain etc.),
according to the Water 
Footprint Network 
methodology
Disposal 
of eﬀ luent  
(conveyance of 
treated water to 
receptive bodies
of water) 
Entry
Exit
Water capturea
(intake of water 
from bodies of 
water)
Use
Recirculation
Pulp
Evaporation
Inputs
Chemicals
Capture, treatment and 
recirculation of water
(in tonnes)
Risks
Generation of
solid waste, risk of soil 
contamination 
Disposal of efluents, risks of 
contamination of rivers and sea, 
Gas emissions and risk of air 
contamination and odor 
Water consumption 
Noise generation
Mill-Port
Logístic
Ecoeﬀ iciency
Solid waste =
opportunities
Eﬀ luents =
compliance and maximum reuse
Atmospheric Emissions =
compliance and reduction
Energy
Pulp production in Fibria
is powered by an energy matrix
which uses 90% renewable
natural resources
(liquid and solid biomass)
Energy consumed in MWh/adt
2012
2013
target
2013
0.584
0.582
0.587
INDUSTRIAL 
PROCESS
Maximum 
depth 2m
2013
Target
Humidity makes up only 10% 
of the pulp and the remaining 
90% is equivalent to fiber.
Use in industrial production:
76% of water captured 
recirculates 4.1 times
before being returned to the
receiving water body
REPORT 2013
A steadfast course
Forest
Pulp
Wood
Pulp mill
Port
Oﬀ ice
Distribution centre
Key
Certifications
Unit 
name
HOW TO READ THE GRAPHIC
FOREST PROCESS
INDUSTRY PROCESS
Wood 
produced
Pulp 
produced
Average 
distance from 
the forest to 
the mill (km)
thousand 
m3
thousand t
people
people
people
300
200
100
people
in ha
m3/adt**
in ha
%
Employees
Employees
Outsourced
workers
Outsourced
workers
Planted 
area*
Captured 
water
Conservation 
area*
Reused 
waste
**adt = air dried 
tonne of pulp
Stakeholder
Tools and 
engagement 
processes1
Main
material 
topics
Employees
Suppliers
Clients
investors and
Shareholders
Government/ 
public authority
NGOs
Unions
Neighbouring 
communities
Forest partners
(rural producers) 
Sectoral 
organizations
Code of Conduct,
publication (Vital 
newspaper, 
Informese, 
EcoCiente), online 
channels (Fibria 
Net, eletronic 
newsletters), 
Meet the CEO, 
organizational
climate survey
Code of Conduct, 
participation in 
the CDP Supply 
Chain, local supplier 
development 
programmes, (Prodfor 
and PQFAvançado),
questionnaires, 
Na Estrada com 
Segurança publication 
(for truck drivers)
Commercial 
and technical 
assistence 
contact with 
international 
oﬀ ices, 
development of 
joint technology, 
satisfaction 
research
Quarterly releases, 
investor website, 
direct contact with 
IR team, Fibria Day, 
Investor
Tours
Contribution 
to public policy 
development through 
representations in 
sectoral organizations 
and joint development 
projects (e.g. 
Development Plan of 
the Whale Coast)
Participation in fora 
and associations 
(e.g. Brazilian 
Forest Dialogue, 
TFD and WBCSD, 
New Generation 
Plantations)
Engagement, 
Operational Dialogue, 
Face-to-Face Agenda, 
Community Meetings, 
social and development 
projects, Constructive 
Dialogues, publications, 
programmes and 
Environmental 
Education Nuclei, Fale 
com a Fibria
Forest Savings 
Program
Involvement in 
Councils and 
Committees 
(e.g. 
BRACELPA, 
ABRAF, ABAF)
STAKEHOLDER ENGAGEMENT
1- The Ombudsman, the newsletter Fibria News, the corporate website and the Sustainability Report are meant for all stakeholders in Brazil and abroad
Regular contact, 
meetings for 
negotiations and 
Results Participation 
Programme
STRATEGY
VALUE CHAIN
STAKEHOLDERS
Immediate
Short-term
Medium-term
Long-term
Operational 
excellence
Organic 
growth 
Biotechnology
Bioindustry
Asset light
Consolidation
Formation of 
the forest base
Logistics
Operational 
stability 
(continuous)
Forest of the 
Future project
Expansion Portocel 
(possibility)
Molecular 
markers
Genetically modified 
organisms
Forest base for expansion 
(optionality)
Três Lagoas II 
(possibility)
Opportunities for consolidation in 
the sector (possibility) 
Biofuels
Continual 
improvement
Growth
Initiatives along 
the value chain
Financial discipline
FIBRIA’S STRATEGY
Fibria relies on the 
following guidelines
to achieve its goals:
Strategic initiatives
Solid governance
Sustainability 
Transparency
Retaining talent 
Professional development
Innovation 
Career and Succession
Organizational climate
In 2011, on the 
recommendation 
of the Sustainability 
Committee, linked to 
the Board of Directors, 
Fibria strengthened 
its commitment to this 
issue by introducing 
a set of Long Term 
Targets that signal the 
company’s path toward 
2025. Six systemic 
targets that, if achieved, 
will generate benefits 
for the company and for 
society.
LONG TERM 
TARGETS
Double the absorption of
carbon from the atmosphere
Achieve an 80% approval rating
in local communities
Help the community to make 70% of
the income-generating projects
supported by the company self-sustaining
Reduce by 91% the amount of solid 
industrial waste sent to landfills
Conduct the environmental restoration 
of 40 thousand hectares of the company’s 
own land, between 2012 and 2025
Reduce by one third the amount
of land required for pulp production
Benefits
Target
Initiatives to achieve target
Increasing forest areas (both 
planted and native areas) and 
restoring degraded land with 
native species. With the sale of the 
land in Capão do Leão, in 2012, 
Fibria is currently below the 2011 
baseline, but have maintained a 
positive carbon balance in 2013, 
with net sequestration of 5,2 
million tCO2eq.
Increasing the approval rating 
in local communities through 
the improved relationships with 
local communities, supporting 
local development projects and 
including the community within 
the company’s value chain, such 
as the PDRT and the Beehives 
program.
The company can achieve 
this target by expanding the 
PDRT model of agricultural 
production, promoting technical 
and management training and 
attracting the support of partners.
Reduce by 91% the amount of solid 
industrial waste sent to landfills
The target will be achieved though 
the recovery of waste producing 
forest inputs and optimization of 
the energy matrix by replacing fossil 
fuel with waste. In 2013, 53,146 tons 
of waste were reused or recycled 
resulting in savings of R$8.5 million 
in the purchase of soil correctives.
Planting of native plant species 
and stimulating the natural 
regeneration of native species.
In 2013, 5.213 hectares were 
restored.
Through traditional genetic 
improvement of eucalyptus, 
improvement in forest 
management and increase in 
industrial productivity.
Três 
Lagoas
Jacareí
Aracruz
Portocel
Caravelas
Belmonte
Veracel
Posto da Mata
Conceição da Barra
Portocel
Located 4.3km from the 
Aracruz Unit, the specialized 
terminal of Portocel has 51% 
participation from Fibria and
is responsible for 
approximately 70% of the 
pulp exported from Brazil.
Capão 
do Leão
Vale do 
Paraíba
Capão 
Bonito
MS
BRAZIL
SP
MG
ES
BA
RJ
RS
Veracel
Joint operation (50%) 
with Stora Enso that 
produces 1.1 million t 
of pulp per year.
FSC®, CERFLOR/
PEFC, ISO9001,
ISO14001
Três 
Lagoas
4,383
1,272
532
394
1490
881
186,581
28.7
99,628
23.2
FSC®, CERFLOR/
PEFC, ISO9001,
ISO14001
Aracruz
7,941
2,345
332
609
2711
1116
183,491
33,8
126,189
84.2
International 
structure
38
employees in oﬀ ices in the US, 
Austria and China
Certifications: ISO9001,
Chain of Custody (FSC®), 
Chain of Custody
(CERFLOR/PEFC)
FSC®, CERFLOR/
PEFC, ISO9001,
ISO14001
Jacareí
3,719
1,080
571
551
2005
 84,972
24.9
62,968
70.2
508
São Paulo
Santos
VALUE CHAIN
Seedlings in 
nurseries
Logistics
Logistics
Soil correctives 
produced
from waste
Excess renewable 
and clean
energy sold
53% 
tissue 
paper
Pulp
90 to 120 days
5 to 7 years
Forest process
Research
Industrial process
Commercialization
Trees
Wood
Biomass
Other forest products
Agricultural production (communities)
Customers’ customers
Toilet paper 
Paper towel 
Tissue paper
Napkins
Cardboard 
Photographic paper 
Paper reel 
Paper invoice 
Writing paper 
Paper for notebooks 
A4 paper 
Paper for books
FIBRIA AND SUPPLIERS OF 
INPUTS AND SERVICES
CUSTOMERS IN 
45 COUNTRIES
FINAL 
CONSUMER
30%
printing and 
writing paper
17% 
specialty 
paper
Examples 
of types of 
paper
Pulp mill
Paper mill
Value creation for 
society (2013)
In 2013, there were no payments of dividends or payments 
on interest on company capital to shareholders.
The graph shows the 
value created for various 
stakeholders, taking 
into consideration the 
company’s Statement 
of Value Added 
and investments in 
communities.
10.4%
Employees
77.7%
Suppliers
4,676.4
11.3%
Government
0.6%
Investment in 
communities
in R$ million
Investments in 
Ensyn (2012)
Sale of 207,000 ha
to Parkia (2013)
-  Reduced concentration of land ownership 
-  More land available for other uses -  Increased 
competitiveness and greater shareholder return
-  Reduction of atmospheric concentrations of 
greenhouse gases
-  Enrichment of flora and fauna, including
endangered species -  Expansion of environmental 
services -  Carbon sequestration and improved water
quality and better availability, among others
-  Reduction in the impacts and risks of industrial 
landfills -  Increased eco-eﬀ iciency in the company’s 
production processes -  Reduced cost of waste disposal 
and input substitution
-  Harmonious coexistence with neighboring 
communities -  Favorable environment for local 
development
-   Social inclusion of local communities, to reduce their 
socioe-conomic vulnerability -   Widespread participation of 
the community in its own development process -   Enhancing 
the technical and managerial skills of community members
Capão 
do Leão
19
37
Fibria’s own
land were
sold in 2012, but 
Fibria maintains 
contracts with 
forest partners 
representing a 
total area of 14,725 
hectares.
Clients
North 
America
Asia
Latin
America
Europe
39%
9%
24%
28%
Distribuition of sales
per region - 2013
*Includes non-
certified areas
2013
Baseline 
(2011)
2025
Target
2013
Baseline 
(2011)
2025
Target
2013
Baseline 
(2011)
2025
Target
2025
Target
2013
Baseline 
(2011)
2025
Target
2013
2025
Target
Baseline 
(2011)
2013
Target
2013
Target
2013
Target
2013
Target
2013
Target
2013
Target
Points of sales
Baseline 
(2011)
2013
The full Report is available at: http://www.fibria.com.br/relatorio2013/
REPORT 2013
A steadfast course
In focus:
Fibria’s long-term targets
Seeking to further integrate 
sustainability into the company’s 
corporate strategy, Fibria, the Brazil-
based global leader in the pulp market, 
established long-term targets for 2025. 
In 2011, on the recommendation of 
its Sustainability Committee, which 
is linked to the Board of Directors 
and coordinated by the company’s 
Chairman, Fibria began evaluating 
how to best establish a set of 
long‑term targets that would help 
guide the company into the future. 
 
From the forest to the consumer
Strategy
33
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

Management approach
Management approach describes the systems, controls and processes in place 
across the organization to manage and monitor material issues. It can include the 
deployment of frameworks, guidelines, tools, internationally recognized management 
systems and certifications, as well as stakeholder engagement activities focused  
on facilitating implementation by employees, suppliers and customers.
One year on
  Improved
Key findings
  The most effective reporters describe 
in appropriate detail the systems and 
processes to manage material issues and how 
engagement with employers, suppliers and 
customers supports implementation. 
  While some companies explain their 
management approach, there is often 
limited information provided on the tools, 
systems, processes and frameworks that 
guide implementation.
  The same applies to information on systems, 
processes and controls over reporting and 
disclosure. Very few companies describe 
their internal reporting and data collection 
processes and frequency.
Key recommendations
  Describe the tools, systems, controls, 
processes and frameworks that guide 
strategy implementation. An exhaustive 
list is not necessary, but the aim should be 
to provide a fair and balanced overview of 
the management approach. 
  Show how sustainability is embedded 
in corporate and operational functions 
beyond the sustainability team, and how 
sustainability is coherently managed 
between corporate and site levels. 
  Provide information on data collection 
processes and internal controls; 
communicate this information internally to 
improve the confidence of other functions 
and departments in the quality of non-
financial data.
CONTENT CRITERIA
In practice
Kering 
Pioneered and implements a group environmental profit and loss 
(EP&L) account across all of its 23 brands and discusses how this will 
inspire greater understanding and decision-making for management. 
Uses external and internal certification on issues such as environmental 
management, energy-efficient buildings and organic textiles. The 
group also uses an internal Smart Sourcing program and created a 
Materials Innovation Lab (MIL) to support the needs of different brands.
Emphasizes responsible supply chain management, including, support 
for suppliers all the way to raw materials on EP&L and environmental 
footprint reduction, and best practice sharing with a focus on 
developing innovative solutions to sector and industry challenges. 
Pepsico
Includes a narrative on internal systems for environmental health and 
safety and external certifications such as LEED or the WBCSD Global 
Water Tool. 
Focuses on increasing supplier capacity through education on how  
to improve sustainability. 
Through the inclusion of sustainability as an objective for innovation, 
expenditure and strategic planning, it is embedded in company 
process and operation.
SCA
Explains how employee training and development assist the 
implementation of a more sustainable system and how the company 
delivers training on corruption, ethical practice and safety.
Demonstrates how the company engages with consumers on 
hygiene issues and offers training on issues such as childcare, 
midwifery and incontinence to a range of product users and that 
is adapted to their geographical context. 
Details the data collection processes used for both social and 
environmental data and indicates the frequency at which the data 
is collected and reported internally. 
34
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

Sustainable development has been an integral part of 
the Lafarge culture for over thirty years. As an industrial 
company producing construction materials, primarily 
cement, aggregates, and ready-mix concrete, the 
company can have a large environmental and social 
footprint in the communities in which it operates.
In 2012 Lafarge launched the Sustainability Ambitions 
2020 program, which consists of 34 objectives set 
at the group level and covering a broad range of 
environmental, social and societal issues. Within 
Sustainability Ambitions 2020, country units are 
responsible for implementing actions that contribute 
to achieving the group’s objectives, while monitoring 
of group progress is done by the corporate 
sustainability team. However, some of the objectives 
set at the Group level may not be directly applicable  
in every country. Thus the company created the 
Lafarge Sustainability Compass to help managers  
in 62 countries prioritize objectives and determine 
the local sustainable development strategies to drive 
value creation in their countries for both Lafarge and 
its stakeholders:
1. Assessing performance
The selected impact areas, framed in terms of how 
stakeholders look at societal and environmental 
issues, are:
 Environmental issues: biodiversity, water, clean 
environment, waste and materials, climate change 
and energy;
 Socio-economic issues: basic needs, health and safety, 
human capital, employment, ethics and governance.
Sixty key performance indicators (KPIs) help assess 
performance in each of the impact areas, with some 
KPIs being used to inform more than one impact area. 
By weighting the 1 to 5 ranking of the performance 
based on its importance to the impact area, an overall 
assessment emerges. The performance level of each 
of these KPIs is then used to get an assessment of the 
balance of sustainable development performance 
against risk management, operational efficiency  
and innovation.
2. Identifying key issues at country level
The next phase of the methodology is to customize 
the importance of performance in each area to the 
local context, taking into account the views of nine 
different stakeholder groups considered in Lafarge’s 
value chain:
 Commercial stakeholders and business partners: 
investors, suppliers, workforce, clients and 
end‑users;
 Stakeholders affecting the license to operate: local 
communities, governments, non-governmental 
organizations and the media.
An assessment of the importance of each area as 
perceived by the local business and the importance/
potential impact that each of the stakeholder groups 
has on the local business is the last part of the input.
3. Developing country-specific action plans
The first thing Lafarge advises country units to do is to 
check if they have any areas of poor performance as 
this represents a risk that can undermine an otherwise 
excellent program. Next they need to look at areas of 
importance to their stakeholders and their business 
that have just average performance: these represent 
areas of untapped broad value creation. In order to 
choose the appropriate lever to improve performance 
for a selected impact area, country units are provided 
with an estimate of the cost of marginal improvement 
on each KPI and its overall effect on the system. On 
this basis, country management teams draw up their 
action plans, which are then fully integrated into the 
Group’s existing management cycle. 
The Sustainability Compass helps further integrate 
sustainability at Lafarge by providing value to the 
reporting process, turning this data into useful 
information to inform decision-making. It outlines 
the business case for sustainable development in 
a practical manner: sustainability strategies will be 
implemented not to deliver on a Group commitment 
but because Lafarge understands the value that they 
bring to the business and stakeholders locally.
Download full case study.
In focus:
The Lafarge Sustainability 
Compass: Developing 
an integrated sustainable 
development strategy
Lafarge has developed the 
Sustainability Compass, a new  
strategic methodology to allow 
country management teams to tailor 
their sustainability strategy to fit their 
specific local context. Through this 
methodology, sustainability is 
considered a catalyst to achieve  
its business objectives.
 
35
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

Performance
Measuring and monitoring performance is critical to demonstrating progress. 
Specific and measurable key performance indicators (KPIs) should be reported  
for all material issues and distinguished from other indicators. KPIs help to increase 
comparability with competitors over time and provide accountability so that 
performance trends can be monitored and corrective actions taken when required.
One year on
  Stayed the same
Key findings
  The most effective reports have KPIs in place 
for all material issues, clearly distinguishing 
them from other non-material indicators. 
Data is usually presented over at least  
a two-year time scale and a description of  
the performance trend is given for context. 
  Some reporters do not provide KPIs for 
all material issues, which can either be 
explained by the absence of a materiality 
process or the large quantity of material 
issues defined which makes it difficult to 
provide a comprehensive set of KPIs. 
  Some companies disclose data at a corporate 
level only, which can hide significant regional 
and segmental variations. This is particularly 
important in some cases to determine  
real progress. 
  Few measure the outcomes of management 
interventions or the effectiveness of 
management processes, for instance the 
outcomes of audits.
Key recommendations
  Ensure the development of at least one KPI 
per material issue and track progress over 
time. If the sector has developed a standard 
set of KPIs, these should be used to allow for 
performance comparability. 
  Clearly distinguish material KPIs from 
other indicators and consider ways to make 
these more outcome focused. Align KPIs as 
much as possible with financial statements 
by using the same material reporting 
segments, which can be geographical  
and/or product specific. 
  Whenever possible, contextualize material 
KPIs by relating them to ecological limits, 
planetary boundaries, social concerns  
or geographies.
CONTENT CRITERIA
In practice
Anglo American
Material issues have been condensed into four themes against  
which a KPI has been developed. KPIs are presented after the  
strategy along with results and targets to monitor progress  
and deliver on the strategy. 
Includes a description of each KPI to explain how performance  
is measured and provides a narrative on performance trends.
Syngenta
Each material issue has a KPI; the report additionally presents 
non-financial KPIs along with financial KPIs at the beginning  
of the report. 
Presents performance data at a more granular level for some material 
issues such as water use which is reported according to the usage 
type (such as cooling, irrigation) and origin (including surface, 
underground, drinking and recovered rain water). 
DSM
KPIs have been set for all measurable material issues. 
Consistently provides a narrative on performance trends by 
explaining the variations in performance as well as the projects 
planned to improve performance. 
Presents data at a more granular level so that the reader gains  
more insight into performance on specific lines of products and 
geographic differences on issues such as water management.
36
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

Evidence of activities
Evidence of activities involves reporting on sustainability activities such as 
strategic programs and initiatives that occur during the reporting year or progress 
on existing sustainability activities. It helps link the management approach  
to actions and performance and can substantiate statements and claims.
One year on
  Improved
Key findings
  The most effective reports focus on 
strategic sustainability activities that 
address material issues during the reporting 
year and demonstrate the organization’s 
management approach in action. 
  While some reports include relevant 
and compelling case studies that bring 
sustainability activities to life and illustrate 
actions and outcomes, the majority do not 
use case studies to their full potential and 
rely on anecdotes.
Key recommendations
  Illustrate sustainability activities through 
relevant and compelling case studies 
focusing on material issues, linked to a  
wider strategic program or management 
action and focused on outcomes. Use the 
report or cross-reference to an online case 
study library. 
  Provide appropriate background on 
the development of strategic programs 
and initiatives over time but focus on 
achievements, progress and challenges 
during the reporting year.
CONTENT CRITERIA
In practice
AB Carbon Black (part of Aditya Birla Group)
Includes a strong narrative on sustainability activities and initiatives, 
often with a useful historical context. 
Addresses material aspects through case studies that have a strong 
emphasis on outcomes driving sustainability within and outside 
the company.
Case studies illustrate projects carried out in various locations and 
provide insight into cost-saving projects and benefits derived from 
specific collaborations with different types of stakeholders.
Nestlé 
Provides ample evidence of the company’s commitment to address 
key challenges in relation to the creating shared value agenda, 
including nutrition, rural development, responsible sourcing and 
water management. 
Posts additional case studies online where a searchable database can 
be used to select case studies according to the topic, the country and 
the type (e.g. film or story). The website also includes an interactive 
map indicating the number of case studies in different regions as  
well as the title and the exact location so that the reader can find  
out more by clicking on the map. 
Schneider Electric
Provides a strong narrative describing the many sustainability-related 
initiatives undertaken by the company during the year, often placed 
in a historical context. 
Many examples of sustainability-related activities and programs are 
provided throughout the report which demonstrates the company’s 
commitment to tackling material issues. 
Case studies demonstrate responses to material issues and are 
featured throughout the report.
37
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

Strategic partnerships  
& collaboration
Appropriate and strategic partnerships and collaborations can help accelerate action 
and scale up solutions by combining expertise, resources and networks across 
key stakeholders who share a common goal. They should focus on addressing a 
company’s material issues and support the implementation of a sustainability strategy.
One year on
  Improved
Key findings
  The most effective reporters highlight 
strategic partnerships and collaborations 
that address material issues and help to 
implement the company’s sustainability 
strategy. 
  The most engaging reports provide details 
on the expected benefits of partnerships and 
collaborations for the business as well as for 
relevant stakeholders. 
  Companies do not always consistently focus 
on establishing partnerships that are aligned 
with their sustainability strategy. Companies 
are strongest at forming cross-industry 
partnerships, with governments and NGOs 
also appearing as common partners for 
strategic collaboration. The partnerships 
built with communities, however, remain 
largely philanthropic and are often therefore 
the least strategic. 
Key recommendations
  Focus on strategic partnerships and 
collaborations that address material issues. 
This will help ensure that partnerships are 
connected to business activities.
  Explain the strategic objectives in 
establishing partnerships and collaborations 
with specific stakeholders and demonstrate 
how these relationships create synergy and 
create value for the business. This can be 
done by setting and monitoring indicators 
at the outset to evaluate outcomes, cost 
impacts and benefits.
In practice
The Dow Chemical Company
There is a strong partnership-oriented focus to the report, which 
demonstrates how the company engages with the Nature Conservancy 
to integrate environmental thinking into decision-making.
Material issues in relation to energy, climate change and protection  
of the environment are effectively addressed through active 
participation in multistakeholder platforms that engage relevant 
stakeholders and through cross-industry collaborations to combine 
skills and accelerate progress. 
Community success is ensured by the creation of community 
development projects along with the implementation of education 
and prevention programs that are tailored to country-specific criteria 
and needs. 
The Coca-Cola Company
Shows examples of how the company is advancing solutions by 
partnering across the golden triangle of business, government and 
civil society.
Explains how Coca-Cola is collaborating with local organizations to 
deliver training on the group’s workplace standards. 
Describes how Coca-Cola is engaging in cross-industry partnerships 
to promote well-being, balanced diets and physical activity. 
Gives insight into the company’s intergovernmental partnerships, 
notably its work on promoting the World Health Organization 
(WHO) Global Strategy and its collaboration with UN Women. 
JP Morgan
Demonstrates a strong partnership orientation and provides evidence 
of collaborative initiatives with a material and strategic focus. 
Evidences collaborations with various organizations, including NGOs 
and communities on issues ranging from unemployment to housing 
and urban development. 
Explains strategic foundation partnerships, notably with the Gates 
Foundation to create the Global Health Investment Fund, an 
investment vehicle for the promotion of health in developing countries. 
38
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX
CONTENT CRITERIA

Accessibility
Accessibility refers to the ease of finding the fullest source of reported information 
from the home page of the corporate website and to the availability of information 
in multiple reporting formats suitable for different readers’ needs. Accessibility  
is an important experience aspect as it is the first contact with the reader.
One year on
  Improved
Key findings
  The most effective reporters direct readers 
to their reports from the homepage of the 
corporate website and provide multiple 
formats that suit different stakeholder 
needs, including summary reports, data 
centers and downloadable spreadsheets, 
moving image case studies, interviews, and 
online HTML reports for casual browsing. 
  Many reports do not use the GRI Index to  
its full potential, with readers often directed 
to broad sections within a report rather than 
specific pages.
Key recommendations
  Promote the report on the homepage or 
at least prominently display a link in the 
relevant sections of the website.
  Always have a PDF report available for 
download. Alternative formats should  
be used where there is audience demand. 
Consider asking which formats stakeholders 
prefer as part of a stakeholder engagement 
process.
  For those reports that self-declare GRI 
application levels or use in accordance 
options, include a GRI index within or 
alongside the report so that those who 
want to access detailed information can 
find it easily. 
In practice
Ford Motor Company
Offers a microsite that is easy to use thanks to section and footer 
navigation. The online report contains additional information  
and data that is available to download in full or as separate  
sections and a PDF document is available and signposted  
on the microsite homepage.
Performance data is available in charts and tables, and includes  
notes to data as well as related links.
Uses a clear and easily accessible GRI index that includes interactive 
links to various sections of the report and regulatory documents.
Daimler AG
Easily navigated online or available as two downloads: with or 
without in-depth content. The GRI content can be downloaded  
in a separate PDF, while data is also available as tables, charts and 
graphs online. 
There is a function to personalize the pages displayed within the 
report according to individual interests, while the report is also made 
more engaging with the use of moving images.
BP
Signposted on the company’s website under the “Downloads” 
section at the bottom and can also be found in two clicks under 
the sustainability section of the website. 
Offers an online and PDF version of the report, accompanied by a 
summary document. Health, safety and environment performance 
data is available through an interactive charting tool that filters and 
analyzes information according to user need. The charting tool 
provides some 60 charts that all offer different formats and the 
option to export graphs. 
Uses a GRI index which can be found online with interactive links, 
including to disclosures required under the oil and gas sector 
supplement. 
39
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX
EXPERIENCE CRITERIA

Content architecture
Content architecture refers to the layout, structure and ease of navigating 
through a report from the reader’s perspective. These features improve 
understanding of the content and bring coherence to a report.
One year on
  Improved
Key findings
  The most effective reports use a consistent 
layout throughout, which helps readers find 
the information they need quickly and easily. 
They also use devices to promote navigation 
around the report. These reports service both 
deep-dive and skim readers equally well. 
  Some reporters do not adopt a consistent 
information hierarchy, which means that 
information is not organized and is difficult 
to locate, read and understand.
  Many reports do not use a content index 
to its full potential and do not incorporate 
interactive functionality into their PDF reports.
Key recommendations
  Consider different readers’ needs, especially 
those who will engage with the content in 
detail and those more likely to skim read,  
or who only want the big picture. Ideally  
the content should work on both levels. 
  Use a consistent layout for similar sections, 
including headings and subheadings,  
so there is a clear content hierarchy.  
Also use introductory paragraphs to deliver 
key messages. This will help enhance the 
reader’s experience and will improve their 
engagement with the content and help them 
determine what they want to focus on. 
  Create a comprehensive content index to 
promote full visibility of the report and its 
content and use interactive functionality  
to help readers move between sections  
and find content outside of the report.
EXPERIENCE CRITERIA
In practice
BMW Group
An interactive detailed content index is included at the beginning  
of the report. Each new section displays the relevant content index 
and subsections on the left side of the PDF, which also contains four 
different icons to move between chapters or come back to the 
cover page.
Different sections of the report have a clear and consistent structure. 
Each new page divider is followed by an illustration accompanied  
by a brief narrative. The report presents KPIs alongside progress 
made in 2013 and forecasts and objectives for 2014. Each section 
starts with a subsection dealing with the management approach.
Nissan Motor Company
Uses an interactive content index displayed at the top of the PDF 
document. The interactive index highlights the relevant section 
when the reader moves to a new section, which makes for a good 
user experience. 
New sections consistently start with introductory paragraphs and 
highlighted priorities including page numbers and interactive links 
within the report. 
Each section provides a thematic scorecard alongside key figures  
and cross-references to GRI indicators. 
Titan Cement
Follows a consistent structure throughout and demonstrates clear 
hierarchy of information through engaging sub-headings and 
introductory paragraphs. 
This is enhanced by case studies disseminated throughout the report 
and following a consistent structure. For each case study, key facts 
and related material issues are listed and the context is explained 
before dealing with responses. 
Content architecture is supported by a navigation index displayed  
on the left side of the PDF document and highlighting the relevant 
section so that the reader knows where they are at all times.
40
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

Line of sight
Clear line of sight – how key aspects of reported content are connected  
– involves understanding how important strategic elements such as  
material issues, targets or actions, KPIs and performance intersect or overlap. 
Drawing these connections enhances the reader’s understanding about  
how key strategic aspects are inter-related.
One year on
  Improved
Key findings
  The most effective reports show the 
connectivity of their strategic approach 
through an overarching strategy section, 
which often shows the connections 
graphically. Furthermore, they use cross-
references to show how these elements 
relate to each other. 
  Most companies, however, report in siloed, 
isolated sections and use limited cross-
referencing, making the content seem 
fragmented.
Key recommendations
  Explain (either graphically or through 
narrative) how the material issues relate to 
big picture goals (where these exist) and in 
turn how these are underpinned by targets 
and KPIs. Use this to summarize the strategic 
approach and to direct readers to more 
detailed content elsewhere in the report. 
  Consider other areas where line of sight 
connections can be reinforced, for example 
by showing links between megatrends and 
material issues, risk and opportunities, or 
how the corporate strategy, vision or mission 
relates to the sustainability strategy.
  Ensure connections are made across related 
issues and content by cross-referencing 
and by using linking devices such as color 
coding and icons. This will enhance cohesion 
between different sections.
EXPERIENCE CRITERIA
In practice
Holcim
Structure is clear and logical, following material issues. 
Highlights and connects related material issues with interesting 
graphics, thereby reinforcing line of sight. 
Uses cross-references to external sources without undermining  
the flow of the narrative. 
Novartis 
Unfolds in a logical manner with the content being graphically  
linked to material issues through color coding. 
The materiality matrix featured at the beginning of the report  
gives a comprehensive overview of the activities, goals and  
indicators featured. The rest of the report narrative focuses  
on these material aspects. 
Uses cross-referencing consistently without fragmenting the narrative. 
Procter & Gamble
Unfolds in a clear and logical manner, focusing on environmental 
sustainability and social responsibility, which contributes to a strong 
sense of cohesion between key chapters. 
This is further reinforced by graphical linking devices and 
cross-referencing throughout the report. 
Structured around environmental and social goals and performance, 
which are outlined at the beginning of the report. This helps not  
only with user experience but also enhances line of sight.
41
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

In practice
SC Johnson
Uses color coding and a variety of icons in all chapters. Icons are 
consistently displayed on page dividers to indicate performance  
on corresponding topics and on top of pages to enhance navigation 
throughout the report. 
The design is supported by colorful highlights, charts and appropriate 
photography to reinforce messaging and engage readers. 
Syngenta
Both the PDF report and the online version have a clean layout 
complemented by visually powerful photography and icons 
corresponding to the six commitments under The Good Growth Plan. 
These are supported by key messages embedded in subheadings. 
Uses a variety of illustrations, graphics and infographics to 
communicate information in a compelling way and uses graphic 
dividers to introduce new sections. 
Sime Darby Berhad 
Uses a variety of design features, such as icons, infographics  
and illustrations, to communicate information in a compelling way  
and reinforce messages throughout the narrative. 
Photography offers an overview of the different sectors in which  
the company operates. 
Color coding helps with navigation between the different sections  
of the report.
Information presentation
Information presentation involves the use of design to convey simplicity and 
improve understanding. It can include infographics to simplify complex content, 
typographic styles to emphasize key messaging, as well as photography and 
illustrations to support written content. Getting the balance right on information 
presentation can improve the reader’s understanding of content.
One year on
  Improved
Key findings
  The design of the most effective reports 
serves more than a technical purpose.  
They make use of typography and font size 
to support key messages, and improve user 
navigation by color coding key sections. 
  Charts and visuals are sometimes so complex 
that they defeat their initial purpose, 
leading to confusion rather than improving 
understanding.
  Some reports tend to pack too much 
information onto a single page in an effort 
to demonstrate comprehensiveness and 
reduce page count.
Key recommendations
  Incorporate clear and compelling 
information presentation throughout the 
report to improve understanding of complex 
issues and communicate core messages in  
a visually appealing way. 
  Use infographic elements to simplify content 
and appropriate photography throughout  
to reinforce key messages. 
  Where the brand allows, introduce color 
coding and use graphic dividers with high-
impact photography. This will help readers 
navigate the report. 
  Avoid including too much information on 
one page and make good use of white spaces 
to reduce information overload.
EXPERIENCE CRITERIA
42
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

Reporting matters to Future Leaders
Building on the findings of Reporting Matters, the 2014 WBCSD Future  
Leaders Program (FLP) has focused on developing extra resources  
companies could use to improve the effectiveness of reporting. 
Working this year under the theme “Bridging the Capitals”, 
the FLP explored several topics of relevance to corporate 
reporting. More specifically these future leaders have 
developed practical solutions addressing some of the  
key findings of this second edition: 
1.	25% of companies improved the quality of their 
materiality disclosures in 2014. However, a majority still 
do not disclose the process or grapple with the challenge 
of implementing one. The FLP has thus produced Journey 
to Materiality, which is designed to guide companies 
through the process of identifying material issues and 
help them overcome the challenges along the way. 
2.	Although still challenging, a growing number of reports 
attempt to disclose the connections between sustainability 
and financial performance through illustrations showing 
dependencies and impacts on sets of capital beyond 
finance, or more sophisticated narratives explaining how 
megatrends have informed strategy setting. To further 
build on these encouraging results, the Future Leaders 
have prepared a “conversation starter” to engage with 
finance: Sustainability, A new competence for financial 
leaders: 6 reasons why they should care. 
3.	The FLP’s Unravelling the Business Value Landscape is an 
in-depth look at the different definitions and perceptions 
of the term “business value”. The aim is to provide 
recommendations and key principles that should be taken 
into account when using the term, including in corporate 
reports, and to supplement this with case studies.
4.	More than 20% of the reports reviewed are either  
a self-declared integrated or combined report, with  
10% referring to the International Integrated Reporting 
Framework. Capitalizing on this growing trend, the FLP 
researched existing examples and produced Integrated 
Reporting in South Africa: from Concept to Practice,  
a project designed to offer practical insights into the 
process companies have used to initiate integrated 
reporting and achieve sustainable management.
5.	Integrated Performance Management is the last issue 
which received full attention from the Future Leaders. 
In collaboration with Accenture, they analyzed 
current practice inside a selection of WBCSD member 
companies to come up with a definition and a series  
of recommendation to facilitate implementation.
A more detailed look at these solutions can be found  
on the Future Leaders page of the WBCSD website.
Outlook
WBCSD aims to help its members and the wider  
corporate community realize the value of reporting by 
showcasing how progressive companies are using the 
reporting process to drive change inside their business. 
WBCSD believes that without credible tools to integrate 
natural and social capital measurement and valuation 
into performance management, reporting will remain 
a disconnected exercise carried out on the side of the 
business. While actively engaging with organizations in  
the corporate reporting space, in parallel WBCSD will focus 
its efforts on providing business with the tools it needs to 
integrate environmental and social value into investment 
decision and product development.
Future Leaders Program 2014
Enabling tomorrow’s sustainability business leaders
 
 
 
 
Unravelling the
Business Value
 Landscape
Create Value
Reduce costs
Win and 
retain talent 
Meet investor 
demands for 
sustainable 
stewardship 
6 reasons why 
you should 
care
Collect and 
control company 
data efficiently 
Future Leaders Program 2014
Enabling tomorrow’s sustainability business leaders
Sustainability 
 
A new competence 
for ﬁnancial leaders
Best ally to 
mitigate risk 
Journey to
Materiality
A guide to achieve corporate goals by applying materiality to 
environmental, social and governance issues
Future Leaders Program 2014
Enabling tomorrow’s sustainability business leaders
Integrated Reporting
 
in South Africa:
From Concept to Practice
 
Future Leaders Program 2014
Enabling tomorrow’s sustainability business leaders
Download WBCSD’s Future Leaders publications.
43
REPORTING MATTERS
INTRODUCTION
BACKGROUND
DETAILED FINDINGS
APPENDIX

APPENDIX
4
IN THIS SECTION
45 WHAT WE DID IN 2014 
46 LIST OF REPORTS REVIEWED 
49 GLOSSARY OF TERMS 
51 ACKNOWLEDGEMENTS 
52 ABOUT THE RESEARCH PARTNERS
44
REPORTING MATTERS
BACKGROUND
DETAILED FINDINGS
APPENDIX
INTRODUCTION

What we did in 2014
Reporting Matters 2014 is the outcome of the second review of 
WBCSD members’ sustainability reports covering 162 companies 
from more than 20 sectors and 35 countries. We hope it will benefit 
both WBCSD members as well as the wider corporate community. 
Here is a summary of how we conducted this year’s research.
1
3
5
2
4
6
Reporting Matters 2013
Research
Analysis
Engagement
Launch
Methodology review
Since the launch of the first edition of Reporting Matters in November 2013, we have engaged 
with WBCSD member companies, providing them with individual and confidential feedback 
on their respective reports and conducting more than 50 briefings through either one-to-one 
meetings or calls.
We reached out to WBCSD members, asking them for their fullest source of sustainability 
information. In total, 162 sustainability, combined or self-declared integrated reports  
were systematically reviewed against the defined principles and criteria. The reviews were  
then subjected to a quality review process to ensure completeness, objectivity, fairness  
and consistency.
The review of all reports took 12 weeks to complete by a team of three analysts,  
after which a thorough analysis was undertaken to identify trends and commonalities.  
We also identified companies that best represented the principles, content or  
experience criteria.
We hope this review will engage members to re-evaluate their reporting practices.  
Beyond our members, we also hope the findings will not only be relevant to report 
preparers but will also provide some useful insights to those reading reports as well as to 
standard setters and regulatory bodies working across the evolving reporting landscape.
The launch of the second edition of Reporting Matters is designed to provide an overview  
of reporting trends within WBCSD’s membership and highlight key developments.  
Our recommendations aim to help companies reap the benefits of investing in an effective 
reporting process and showcase examples of good practice.
WBCSD established a sounding board composed of 20 member companies to collect 
feedback on the methodology used. This resulted in the re-categorization of our assessment 
criteria into seven principles, seven content criteria and four experience criteria in an effort 
to align with major reporting guidelines and frameworks. We introduced a new reliability 
criterion reflecting the strategic importance of data quality for effective reporting.
45
REPORTING MATTERS
BACKGROUND
DETAILED FINDINGS
APPENDIX
INTRODUCTION

List of reports reviewed
Company
HQ location country
WBCSD sector
3M
USA
Consumer goods
ABB Ltd
Switzerland
Engineering
Abril Group
Brazil
Media
Accenture
Ireland
Services
ACCIONA S.A.
Spain
Construction
Acer Group
Taiwan
IT & telecoms
Aditya Birla Group (AB Carbon Black)*
India
Mining & metals
AGC Group
Japan
Construction
AkzoNobel N.V.
The Netherlands
Chemicals
Alcoa
USA
Mining & metals
Anglo American plc
UK
Mining & metals
April Group*
Indonesia
Forest & paper products
Arcadis*
The Netherlands
Engineering
ArcelorMittal S.A.
Luxembourg
Mining & metals
Bank of America
USA
Banking & finance
Baosteel Group Corporation
China
Mining & metals
BASF SE
Germany
Chemicals
Bayer A.G.
Germany
Chemicals
BG Group plc
UK
Oil & gas
BMW Group
Germany
Road vehicles
Borealis AG
Austria
Chemicals
BP plc
UK
Oil & gas
Bridgestone Corporation
Japan
Tires
Brisa Auto-Estradas de Portugal, S.A.
Portugal
Road vehicles
BT*
UK
IT & telecoms
Canon Inc.
Japan
IT & telecoms
CEMEX
Mexico
Cement
CH2M HILL
USA
Engineering
Chevron Corporation
USA
Oil & gas
China Ocean Shipping (Group) Company
China
Maritime
Chunghwa Telecom Co., Ltd
Taiwan
IT & telecoms
CLP Holdings Limited
Hong Kong
Utilities & power
Continental AG
Germany
Tires
CRH plc
Ireland
Cement
Daimler AG
Germany
Road vehicles
Deloitte Touche Tohmatsu
USA
Services
DENSO Corporation
Japan
Road vehicles
Deutsche Bahn AG
Germany
Logistics
Deutsche Bank AG
Germany
Banking & finance
Deutsche Post DHL
Germany
Logistics
DNV
Norway
Services
DSM N.V.
Netherlands
Chemicals
DuPont
USA
Chemicals
E.ON SE
Germany
Utilities & power
Eastman Chemical Company
USA
Chemicals
Eaton Corporation
USA
Engineering
EDF Group
France
Utilities & power
EDP – Energias de Portugal, S.A.
Portugal
Utilities & power
Empresas CMPC S.A.
Chile
Forest & paper products
Empresas Publicas Medellin
Colombia
Utilities & power
Eni S.p.A
Italy
Oil & gas
Environmental Resources Management Group
UK
Services
Ernst & Young LLP
UK
Services
Eskom Holdings Limited
South Africa
Utilities & power
* Companies not included in 2013 research.
46
REPORTING MATTERS
BACKGROUND
DETAILED FINDINGS
APPENDIX
INTRODUCTION

Company
HQ location country
WBCSD sector
Evonik Industries AG
Germany
Chemicals
F. Hoffmann-La Roche AG
Switzerland
Healthcare
Fibria Celulose S.A.
Brazil
Forest & paper products
Firmenich*
Switzerland
Chemicals
FLUOR Corp.
USA
Engineering
Ford Motor Company
USA
Road vehicles
Fujitsu*
Japan
IT & telecoms
GDF Suez
France
Utilities & power
Greif, Inc.
USA
Forest & paper products
Grupo Argos
Colombia
Cement
GS Caltex Corporation
South Korea
Oil & gas
Hankook Tire Co., Ltd
South Korea
Tires
Harley-Davidson, Inc.
USA
Road vehicles
Heineken*
The Netherlands
Food & beverages 
Henkel AG & Co. KGaA
Germany
Consumer goods
Hitachi Ltd
Japan
Engineering
Holcim Ltd
Switzerland
Cement
Honda Motor Co., Ltd
Japan
Road vehicles
Infosys Limited
India
IT & telecoms
InterCement*
Brazil
Cement
International Paper Company
USA
Forest & paper products
Italcementi Group
Italy
Cement
ITC Limited
India
Consumer goods
Jain Irrigation Services* 
India
Engineering
JP Morgan* 
USA
Banking & finance
KBC Group* 
Belgium
Banking & finance
Kering
France
Consumer goods
Kimberly-Clark Corporation
USA
Consumer goods
Komatsu Ltd
Japan
Engineering
KONE Oyj
Finland
Engineering
KPMG
The Netherlands
Services
Lafarge S.A.
France
Cement
L’Oréal
France
Consumer goods
Masisa
Chile
Construction
Metsä Group
Finland
Forest & paper products
Metso Corporation
Finland
Forest & paper products
Michelin
France
Tires
Mitsubishi Chemical Holdings Corporation (MCHC)
Japan
Chemicals
Mitsubishi Corporation
Japan
Trading
Mondi
South Africa
Forest & paper products
MWV
USA
Forest & paper products
Natura Cosméticos S.A.
Brazil
Consumer goods
Nestlé S.A.
Switzerland
Consumer goods
Nissan Motor Co., Ltd
Japan
Road vehicles
Norsk Hydro ASA
Norway
Mining & metals
Novartis
Switzerland
Healthcare
Novozymes A/S
Denmark
Chemicals
Osaka Gas Co., Ltd
Japan
Utilities & power
PepsiCo*
USA
Food & beverages 
Petrobras – Petroleo Brasiliero S.A.
Brazil
Oil & gas
Pirelli & Co
Italy
Tires
Portucel Soporcel Group
Portugal
Forest & paper products
PricewaterhouseCoopers
UK
Services
Procter & Gamble
USA
Consumer goods
47
REPORTING MATTERS
BACKGROUND
DETAILED FINDINGS
APPENDIX
INTRODUCTION

Company
HQ location country
WBCSD sector
PTT Public Company Limited
Thailand
Oil & gas
PublicPowerCorporation
Greece
Utilities & power
Reliance Industries Limited
India
Oil & gas
Royal Dutch Shell plc
The Netherlands
Oil & gas
Royal Philips N.V.
The Netherlands
Consumer goods
RWE*
Germany
Utilities & power
S.C. Johnson & Son, Inc.
USA
Consumer goods
SABIC – Saudi Basic Industries Corp.
Saudi Arabia
Chemicals
SABMiller plc
UK
Food & Beverages 
Samsung Electronics Co.
South Korea
Consumer goods
Sasol Limited
South Africa
Oil & gas
SCA
Sweden
Forest & paper products
Schneider Electric
France
Utilities & power
SGS S.A.
Switzerland
Services
Siam Cement Group (SCG)
Thailand
Cement
Siemens AG
Germany
Engineering
Sika Group*
Switzerland
Chemicals
Sime Darby Berhad
Malaysia
Food & beverages 
Skanska AB
Sweden
Construction
SNCF*
France
Transport
SOLVAY S.A.
Belgium
Chemicals
Sompo Japan Insurance Inc.
Japan
Banking & finance
Sonae SGPS, S.A.
Portugal
Retail
Statkraft AS
Norway
Utilities & power
Statoil
Norway
Oil & gas
Stora Enso Oyj
Finland
Forest & paper products
Suez Environnement
France
Water services
Sumitomo Chemical Company, Ltd
Japan
Chemicals
Sumitomo Rubber Industries, Ltd
Japan
Tires
Suncor Energy Inc.
Canada
Oil & gas
Suzano Papel e Celulose S.A.
Brazil
Forest & paper products
Sweco Sweden AB
Sweden
Engineering
Syngenta International AG
Switzerland
Chemicals
Taiheiyo Cement Corporation
Japan
Cement
The Coca-Cola Company
USA
Food & beverages 
The Dow Chemical Company
USA
Chemicals
The Goodyear Tire & Rubber Company
USA
Tires
Titan Cement Company S.A.
Greece
Cement
TNT Express
The Netherlands
Logistics
Toshiba Corporation
Japan
Engineering
Total*
France
Oil & gas
Toyo Tire & Rubber Co., Ltd
Japan
Tires
Toyota Motor Corporation
Japan
Road vehicles
Unilever
The Netherlands
Consumer goods
United Technologies Corporation
USA
Engineering
UPM-Kymmene Corporation
Finland
Forest & paper products
UPS
USA
Logistics
Vale
Brazil
Mining & metals
Vedanta Resources plc
UK
Mining & metals
Veolia Environnement
France
Water services
Volkswagen AG
Germany
Road vehicles
Votorantim Group
Brazil
Cement
Weyerhaeuser Company
USA
Forest & paper products
Yokohama Rubber
Japan
Tires
* Companies not included in 2013 research.
48
REPORTING MATTERS
BACKGROUND
DETAILED FINDINGS
APPENDIX
INTRODUCTION

Financial capital
Financial capital is the pool of funds that is 1) available to an 
organization for use in the production of goods or the provision  
of services, and 2) obtained through financing, such as debt,  
equity or grants, or generated through operations or investments.
Global Reporting Initiative (GRI) Guidelines
GRI G3: The G3 Guidelines are made up of two parts. Part 1 – 
Reporting Principles and Guidance features guidance on how to 
report. Part 2 – Standard Disclosures features guidance on what 
should be reported, in the form of disclosures on management 
approach and performance indicators. 
Application levels indicate the extent to which the G3 Guidelines  
or G3.1 Guidelines have been applied in non-financial reporting. 
They communicate which parts of the Framework have been 
addressed and which set of disclosures used. Application levels  
aim to reflect the degree of transparency against the GRI Guidelines 
in reporting.
GRI G4 is the most up-to-date version of the GRI Guidelines, 
launched in April 2013. The main differences with the G3.1 version 
include: a greater focus on materiality and supply chain impacts;  
the replacement of application levels (ABC) by two “in accordance” 
levels (“core” and “comprehensive”); the introduction of new 
standard disclosures on governance; and the requirement to  
describe the process used to define the boundary of impact for  
each material issue. 
In accordance options: 
 Core: For each identified material aspect, the organization should 
disclose the Generic Disclosure on Management Approach (DMA) 
and at least one indicator.
 Comprehensive: For each identified material aspect, the 
organization should disclose the Generic DMA and all indicators 
related to the material Aspect. 
Governance
Internal governance is the existence of robust government 
arrangements, including a clear organizational structure, well-
defined lines of responsibility, effective risk management processes, 
control mechanisms and remuneration policies.
External governance is where external stakeholders play an important 
role in ensuring proper corporate governance processes in a business 
organization. Some of the key external corporate governance 
controls include government regulations, media exposure, market 
competition, takeover activities, public release and assessment of 
financial statements.
Assurance
Assurance usually describes the methods and processes employed 
by an assurance provider to evaluate an organization’s public 
disclosures about its performance as well as underlying systems, 
data and processes against suitable criteria and standards in order 
to increase the credibility of public disclosure. Assurance includes 
the communication of the results of the assurance process in an 
assurance statement.
Reasonable assurance is a concept relating to accumulating the 
evidence necessary for the practitioner to conclude in relation to  
the subject matter information taken as a whole. To be in a position 
to express a conclusion in the positive form required in a reasonable 
assurance engagement, it is necessary for the practitioner to obtain 
sufficient appropriate evidence as part of an iterative, systematic 
engagement process.
Limited assurance is the nature, timing and extent of procedures 
for gathering sufficient appropriate evidence in a limited assurance 
engagement are deliberately limited relative to a reasonable 
assurance engagement.
External assurance is assurance performed by a person from  
an organization independent of the company.
Case study
A case study in the context of a sustainability report is a narrative 
description (which may be supported by quantified evidence) of 
an aspect of the sustainability strategy in action to allow the reader 
to understand the impacts and effects of the strategy. Case studies 
should be balanced and add value to the reader’s understanding  
of the businesses strategy.
Combined report
A combined report is a report that merges the contents of a 
sustainability report (i.e. environmental and social disclosure) with 
traditional annual report (i.e. financial disclosure); sustainability 
information is generally only included in a designated chapter  
of the combined report. 
Disclosure
Over-disclosure is an extensive amount of information on the  
material issues identified and/or irrelevant information that is not 
related to the company’s material issues.
Under-disclosure is a significant lack of information on the material 
issues identified. 
Enterprise risk management (ERM)
ERM is the consideration of risk from the overall organizational 
perspective. With ERM, all types of uncertainty are considered 
from all parts of the organization. The objective of consolidating 
information on risks is to allow consistent decision-making across all 
risk categories. Regulators are increasingly expecting organizations 
to take an integrated approach to governance, risk and compliance. 
Glossary of terms
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Scope and boundaries
Scope is defined as the range of sustainability topics addressed  
in a report. 
Boundary is defined as the range of entities (e.g. subsidiaries, joint 
ventures, sub-contracted operations, etc.) whose performance is 
represented by the report. In setting the boundary for its report, 
an organization must consider the range of entities over which it 
exercises control (often referred to as the organizational boundary 
and usually linked to definitions used in financial reporting) and over 
which it exercises influence (often called the operational boundary).
Scope levels
Scope 1 refers to all direct GHG emissions.
Scope 2 refers to indirect GHG emissions from consumption  
of purchased electricity, heat or steam.
Scope 3 refers to other indirect emissions, such as the extraction 
and production of purchased materials and fuels, transport-related 
activities in vehicles not owned or controlled by the reporting entity, 
electricity-related activities (e.g. transmission and distribution losses) 
not covered in Scope 2, outsourced activities, waste disposal, etc.
Social capital
Social capital refers to the institutions and relationships within and 
between communities, groups of stakeholders and other networks, 
and the ability to share information to enhance individual and 
collective well-being.
Stretch targets
A stretch target is one that the organization cannot achieve simply by 
working a little harder or a little smarter. To achieve a stretch target, 
people have to invent new strategies, new incentives – entirely new 
ways of achieving their purpose. 
Sustainable value chain approach
A sustainable value chain approach is the methodology employed by 
a business to describe how it has scoped, documented and assessed 
the impact of its value chain on its sustainability performance. It 
enables both business and society to better understand and address 
the environmental and social challenges associated with the life cycle 
of products and services.
Value chain
The term value chain is used to describe the upstream and 
downstream life cycle of a product, process or service, including 
material sourcing, production, consumption and disposal/ 
recycling processes. 
Upstream activities include operations that relate to the initial stages 
of producing a good or service, i.e. material sourcing, material 
processing, supplier activities. 
Downstream activities include operations that relate to processing 
the materials into a finished product and delivering it to the end user, 
i.e. transportation, distribution and consumption.
Human capital
Human capital is people’s competencies, capabilities and experience, 
and their motivations to innovate.
Impacts
Direct impacts result from business activities that are owned  
or controlled by the company.
Indirect impacts are impacts on the environment and society from 
upstream and downstream activities that are not a direct result  
of the company’s project or operations; sometimes referred to  
as second or third level impacts.
Integrated report
An integrated report is a concise communication about how an 
organization’s strategy, governance, performance and prospects, in 
the context of its external environment, leads to the creation of value 
in the short, medium and long term. An integrated report should be 
prepared in accordance with the International Integrated Reporting 
Council’s Framework.
Internal auditing
Internal auditing is an independent, objective assurance and 
consulting activity designed to add value and improve an 
organization’s operations. It helps an organization accomplish its 
objective by bringing a systematic, disciplined approach to evaluate 
and improve the effectiveness of risk management, control and 
governance processes. 
Manufactured capital
Manufactured capital is manufactured physical objects (as distinct 
from natural physical objects) that are available to an organization  
for use in the production of goods or the provision of services  
(e.g. buildings, equipment, infrastructure).
Material key performance indicator (KPI) 
A material key performance indicator is a quantifiable indicator  
that a company uses to measure and compare its performance  
on the identified material issues in terms of meeting specific targets  
and goals. 
Natural capital
Natural capital is all renewable and non-renewable environmental 
resources and processes that provide goods or services that support 
the past, current or future prosperity of an organization. It includes: 
 Air, water, land, minerals and forests;
 Biodiversity and ecosystem health.
Non-financial information
Non-financial information is information incorporating a wide range 
of issues existing beyond the traditional variables that are considered 
as part of investment decision-making processes. Non-financial ESG 
(environmental, social and governance) factors can be quantitative or 
qualitative and include sustainable, ethical and corporate governance 
issues such as managing the company’s carbon footprint and 
ensuring there are systems in place to ensure accountability. 
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Advisory Group Members
ARCADIS, BASF SE, CEMEX, CLP Holdings Limited,  
Deloitte Touche Tohmatsu, DSM N.V., Ernst & Young (LLP), 
Eskom Holdings Limited, F. Hoffman-La Roche AG, Fibria 
Celulose S.A., KPMG, Lafarge S.A., Nestlé S.A., Novozymes 
A/S, PwC, SCA, SOLVAY S.A., Sompo Japan Insurance Inc., 
Syngenta International AG, UPS.
We would like in addition to express our sincere thanks 
to those member companies that provided feedback on 
our methodology, contributed case studies and factually 
verified the best practices we selected.
For more information, contact: 
Anne-Leonore Boffi
Program manager, Redefining Value 
WBCSD 
boffi@wbcsd.org 
Anais Blasco
Associate, Redefining Value  
WBCSD 
blasco@wbcsd.org 
Jonny McCaig
Lead consultant 
Radley Yeldar 
j.mccaig@ry.com
Disclaimer
This publication is released in the name of the WBCSD. It does not 
however necessarily mean that every member company agrees with 
every word. 
This publication has been prepared for general guidance on matters  
of interest only, and does not constitute professional advice. You should 
not act upon the information contained in this publication without 
obtaining specific professional advice. No representation or warranty 
(express or implied) is given as to the accuracy or completeness of 
the information contained in this publication, and, to the extent 
permitted by law, the WBCSD, its members, employees and agents 
do not accept or assume any liability, responsibility or duty of care for 
any consequences of you or anyone else acting, or refraining to act, 
in reliance on the information contained in this publication or for any 
decision based on it.
Acknowledgements
This publication is a joint initiative between the WBCSD and Radley Yeldar.
WBCSD team
Anne-Leonore Boffi and Anaïs Blasco, Co-authors
Hannah Pitts and Sora Utzinger, Research analysts
Rodney Irwin, Managing Director, Redefining Value
Radley Yeldar team
Jonny McCaig, Lead consultant
Kira Bailey, Program manager
Kim Probets, Lead designer
Richard Sutherby, Technical support
Ben Richards, Consulting director
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About the research partners
About the World Business Council for 
Sustainable Development (WBCSD)
The World Business Council for Sustainable  
Development (WBCSD), a CEO-led organization of some 
200 forward-thinking global companies, is committed 
to galvanizing the global business community to 
create a sustainable future for business, society and the 
environment. Together with its members, the council 
applies its respected thought leadership and effective 
advocacy to generate constructive solutions and take 
shared action. Leveraging its strong relationships with 
stakeholders as the leading advocate for business, the 
council helps drive debate and policy change in favor  
of sustainable development solutions.
The WBCSD provides a forum for its member companies 
– who represent all business sectors, all continents and a 
combined revenue of more than US$ 8.5 trillion, 19 million 
employees – to share best practices on sustainable 
development issues and to develop innovative tools that 
change the status quo. The council also benefits from  
a network of 70 national and regional business councils 
and partner organizations, a majority of which are based  
in developing countries.
www.wbcsd.org
About Radley Yeldar 
We’re a creative communications business, helping  
you tell your story simply, in one clear voice, by  
whatever means works best.
How do we do this? Well, we bring together our  
specialists to help you talk with people inside and  
outside your organization. We ask the right questions.  
We offer unexpected insights. We deliver the right  
practical solutions. In this way, we help our clients  
keep valuable conversations going with all sorts  
of people, from customers to shareholders to staff.
The relationships that develop as a result tend to be 
meaningful and enduring. That’s because we believe  
in delivering authenticity and clarity. You won’t ever  
hear us, for instance, spouting jargon or consultancy 
mumbo-jumbo.
We’ve been working this way since we started in 1986. 
And we’ve grown every single year since then.
www.ry.com
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Copyright © WBCSD, November 2014.
Printed on paper containing fiber certified 100% to  
FSC© labeled paper according to the mixed credit system.  
ISO 14001 certified mill.
ISBN: 978-2-940521-12-8

World Business Council for  
Sustainable Development  
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