Reporting: Current and Emerging Trends

1. Reporting: Current and Emerging Trends World Petroleum Congress Qatar December 2011

2. BSR’s Mission and Strategy Our mission: We work with business to create a just and sustainable world. Our strategy: We develop sustainable business strategies and solutions through consulting, research, and cross-sector collaboration with our global network of nearly 300 member companies. • Insights gained from our research and collaborative partnerships feed our consulting work. • Our real-world experience working closely with member companies informs our research. • Our cross-sector efforts build on our extensive network of members and stakeholders.

3. Guangzhou ≈12 Paris ≈15 Beijing ≈12 New York + Washington, D.C. ≈12 San Francisco ≈45 Hong Kong ≈8 Central + South America ≈2 7 50 ≈110 Countries Staff Offices

4. Why Report? Crystallize strategy Publishing a sustainability report in the public domain accelerates and focuses a sustainability strategy. Increase internal awareness and alignment Publishing a sustainability report raises the profile of sustainability strategy among employees. Engage with stakeholders A sustainability report can become the starting point for informed and productive stakeholder dialogue. Meet regulatory requirements Governments and stock exchanges worldwide are increasing sustainability disclosure requirements. Inspire improved performance Placing performance information in the public domain increases incentives to drive improvement. Conform to industry expectations Sustainability reports have moved from the exception to the expected; poor sustainability reports are conspicuous. Improve investor relations Provide investors with a clear description of how the company creates value, now and in the future, given the commercial, social and environmental context within which it operates.

5. Why Report? • Volume of sustainability reporting globally has grown markedly in the last two decades and moved from the exception to the expected. • Trend will continue, especially as sustainability reporting increasingly becomes a regulatory requirement. • Better to shape the future of sustainability reporting than to have that future shaped for you. Source: GRI http://www.globalreporting.org/NR/rdonlyres/954C01F1-9439-468F-B8C2-B85F67560FA1/0/GRIReportingStats.pdf Source: SAP http://fm.sap.com/data/UPLOAD/files/EIU_-_Sustainability_Performance_Management%5B1%5D.pdf

6. Overview of Reporting Process Apply “Materiality Principle” to understand key sustainability risks and opportunities for report. Materiality Understand strengths and weaknesses of existing company reports and identify ways to improve quality. Report Review Create reporting strategy that designs a path for improvement in report quality and impact over time. Report Strategy Establish a detailed content outline for the report that enables a smooth report writing phase. Content Outline Create report copy ready for the sign-off process, and refine report content after feedback. Report Writing Create Global Reporting Initiative (GRI) and Global Compact (GC) index for the company’s website GRI Index

7. Trends in Reporting • Integrated Reporting • Balancing Web and Print/Social Media • Reporting on Specific Issues/Operations • Providing Forward-Looking Information • Stakeholder Input/Verification • Changing Reporting Cycles • Regulatory Requirements

8. Issues of Particular Important to the Industry • Forward vision of the energy debate • Impact on public policy • Boundaries, especially with respect to JVs • Investments in renewable energy • Measuring the impact of community investments • Acknowledging operational and political complexities