While most
of us are still busy finishing up our annual reports, invitations are already
starting to roll in for benchmarks like the Carbon Disclosure Project (CDP) and
the Dow Jones Sustainability Index (DJSI). With a well-deserved break within
reach after the long days and short weekends that accompany the reporting
months, suddenly the benchmarking season starts and you need to start running
again.
But it doesn’t
have to be like this. To help you, here are our 5 tips for a more relaxed
benchmark season.
Tip 1: Start now
We regularly
see companies starting too late with their benchmarks. This puts a lot of
pressure on the organisation. At the very last moment the hunt for crucial
information begins and you are depending on colleagues that don’t have
benchmarking at the top on their priority list. Favours are asked and given,
frustration builds, and the information obtained is often of a low quality.
Just before the deadline, the sustainability officer is processing all the input,
editing the questionnaires, and trying to add as much information as possible. Once
again facing long days and short weekends.
So why not
do it differently? Think of announcing the opening of benchmarking season early
in the year. Organize a working session with key people in the organization
during which you celebrate last year’s success and look ahead. Emphasise the
value of involved colleagues’ contributions and provide insight into their
role. Set up a detailed planning schedule and communicate continuously on
deadlines and input. Doing so makes sure everyone can prepare themselves for their
involvement in the project.
Tip 2: Involve higher management and the board
To obtain a
high score, you need to depend on the specialists in risk management, carbon
management and health & safety matters, to name just a few. Although the entire
company benefits from a higher rating or score, most colleagues probably won’t
be too eager to participate. They will need a little nudge in the right
direction and it surely helps if a senior decision maker creates a sense of
urgency. Additionally, in many cases the board is keen on a high positioning in
the ratings and benchmarks, but doesn’t get involved enough. Make sure to focus
on senior management involvement and creating that sense of urgency. It gives
an almost direct improvement on the scores and makes the lives of
sustainability officers a little easier.
Tip 3: Integrate and combine
We know
that larger corporations have to deal with many different ratings and
benchmarks. Just think of CDP, DJSI, FTSE4GOOD, Oekom, Vigeo, Sustainalytics. You
may feel as if you keep asking your colleagues for the same information over
and over, for different purposes. And that’s exactly the case!
Luckily, the
overlap between the different rating schemes is increasing. For instance, your CDP questionnaire can be
uploaded to DJSI and different benchmarks are tying their questions to the GRI G4
indicators.
It may be a useful exercise to make a complete overview
of all the information you’re going to need and how it relates to G4. You can then
arrange that the requested data and content for the annual report can also be
used for benchmark purposes. You’ll only need to ask for information once
instead of multiple times, you’ll be more efficient, and you’ll also keep your
colleagues happy!
Tip 4: Establish a data trail
Most of the
time the information you need to provide to the rating schemes is about 80% to
90% the same as the year before. Policies, procedures, key risks and important
programs probably don’t change on a yearly basis. It’s therefore worthwhile
establishing a data trail of the information you have provided to the different
rating schemes. Simply secure basic details such as which department provided
what information and how data was gathered and consolidated. This allows you to
quickly gather base information for the benchmark or rating you are complying with
and to build from there.
Tip 5: Don’t be the judge!
Too many times we see companies not
sending in useful information to rating agencies because they doubt if it is
good enough. Yet for most of the rating schemes it is not very clear how the criteria
are to be interpreted, so making such a
call is dangerous. It’s better to work within a broader interpretation of
certain requirements, send in information you think is relevant and let the
rating agency judge. This allows for more specific feedback from the rating
agency on the information provided and you’ll know where to improve and how.
Conclusion
While the
administrative burden of complying with benchmarks and ratings is still
considerable, we believe that with some changes the life of your sustainability
officer can be made easier. Getting the right people involved, working
according to predefined procedures, and the ability to provide valuable
information are important prerequisites. After all, it would be a missed
opportunity if your company’s sustainability performance was not reflected and
recognized fully in the important benchmarks and ratings.
Nick de Ruiter is a
partner at Sustainalize. He is a specialist in CSR strategy setting,
benchmarking and performance monitoring.
Wouter van ‘t Hoff is a
consultant at Sustainalize. He specializes in a variety of areas including sustainability
benchmarks and ratings such as CDP, DJSI, and the Dutch Transparency Benchmark.
