Integrating Sustainability Reporting With Financial Reporting
By jmorourke on Oct 06, 2011
With drivers such as climate change, increasing energy costs, limited natural resources, and increasing stakeholder demand for more detailed disclosures regarding environmental and social initiatives - an increasing number of organizations are engaged in sustainability reporting. In fact more than 2000 organizations have registered sustainability reports with the Global Reporting Initiative (GRI) through 2010, and more than 3000 organizations have submitted their information to the Carbon Disclosure Project (CDP).
Related to this, on September 12, 2011 the International Integrated Reporting Committee issued a discussion paper titled “Towards Integrated Reporting – Communicating Value in the 21st Century”. This discussion paper presents the rationale for Integrated Reporting, offering initial proposals for the development of an International Integrated Reporting Framework and outlining the next steps towards its creation and adoption. The idea is that Integrated Reporting will provide more comprehensive and meaningful information about all aspects of an organization’s performance and position, and will demonstrate the links between an organization’s financial performance and the social, environmental and economic context within which it operates. This initiative is backed by the FASB, IASC, GRI, and major accounting firms.
Also related to this, on August 24, 2011 Ernst & Young issued a report citing the expanding role CFOs should play in sustainability reporting. CFOs must now help communicate a robust sustainability story through the company’s investor relations, Ernst & Young says. “Work with your sustainability team to develop a sustainability story for your organization. If current trends continue, the CFO could be the one telling it,” the consultancy reports. The report argues that institutional investors are starting to view financial and non-financial performance as two sides of the same coin, while credit-rating agencies such as Moody’s and Standard & Poor’s now want to know about companies’ sustainability practices. There are the more than 100 ratings, rankings and indices focused specifically on sustainability. What’s more, shareholders are speaking out strongly on these issues.
So what is Oracle doing about this? The good news is that Oracle has been working with customers and partners to deliver solutions designed to help our customers collect, consolidate and report environmental and sustainability information to internal and external stakeholders. This week at OpenWorld 2011, Oracle announced a Sustainability Reporting Starter Kit for Oracle Hyperion Financial Management that provides customers and partners a jump-start towards delivering a corporate sustainability reporting application, using the same application that they use for financial reporting. This application, which is being made available to customers free of charge via My Oracle Support, will enable existing customers to leverage their investments in Hyperion Financial Management to create a more repeatable and auditable process for consolidating and reporting environmental, social and economic metrics for their annual or quarterly sustainability reporting.
Back in July of 2011, Oracle announced Oracle Environmental Accounting and Reporting (EA&R) for Oracle E-Business Suite and JD Edwards EnterpriseOne Financials. Oracle EA&R enables organizations to track their greenhouse gas (GHG) emissions and other environmental data for both voluntary and legislated emissions reporting schemes. The solution manages this function from within the existing ERP system and utilizes Oracle Business Intelligence to provide immediate insight into an organization’s environmental data to identify and manage CO2 and cost reduction opportunities—providing a rapid return on investment-. This is a great solution for existing Oracle E-Business Suite and JD Edwards EnterpriseOne customers who would like to extend the capabilities of their existing system to collect and report this information internally or externally.
And last year at OpenWorld 2010, Oracle announced Oracle Sustainability Sensor Data Management, which allows organizations to collect very granular energy usage information from sensors, meters and shop floor controllers that can be used to track, benchmark and manage energy usage across locations, buildings, and departments.
These announcements have been met with positive feedback from the market, and a number of customers are already leveraging them to better manage sustainability initiatives, reduce costs, meet regulatory requirements and improve stakeholder communications. One of these customers, Telenor ASA, was recognized with an Eco-Innovation Award at OpenWorld 2011 based on their usage of Oracle Hyperion Financial Management for integrated financial and sustainability reporting.
To download the Sustainability Reporting Starter Kit for Hyperion Financial Management: Logon to My Oracle Support , Select the Patches & Updates tab, Enter patch 13036326 and Search, Select and Download the patch. The downloaded file name will be p13036326_111130_WINNT.zip
For more information, check out the following resources:
Press Release - http://www.oracle.com/us/corporate/press/513393
Sustainability Reporting page on O.com – http://www.oracle.com/us/products/applications/green/risk-performance-management-304575.html#sustainabilityreporting