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Sustainability Accounting Standards Board Industry-Based Standards to Guide Disclosure and Action on Material Sustainability Issues July 17, 2015 Marisa Mackey Associate Director Confidential Draft © SASB 2012 Sustainability Accounting Standards Board The Sustainability Accounting Standards Board is an independent US-based 501(c)3 non-profit engaged in the development of sustainability accounting standards for use by publicly-listed corporations in disclosing material sustainability issues in standard filings for the benefit of investors and the public. SASB is accredited to establish sustainability accounting standards by the American National Standards Institute (ANSI). SASB is not affiliated with FASB, GASB, IASB or any other accounting standards boards. 2 7/17/2015 © 2013 SASB™ Standards Development Corporate Piloting Program Education and Certification Research Publications and Licensing CONFIDENTIAL & PROPRIETARY Board of Directors Robert G. Eccles, PhD* Harvard Business School Steven Gunders Retired – Deloitte LLP Daniel Hanson, CFA Jarislowsky Fraser John Katovich** Katovich & Kassan Law Group, former Pacific Stock Exchange Erika Karp UBS Suz MacCormac*** Morrison & Foerster LLP Steve Lydenberg, CFA Domini Social Investments LLC & Initiative for Responsible Investing, Harvard University Catherine Odelbo Morningstar Aulana L. Peters Retired – Gibson Dunn & Crutcher LLP, former SEC Commissioner Jean Rogers, PhD^ Sustainability Accounting Standards Board Anne Sheehan**** CalSTRS Ed Waitzer Stikeman Elliott LLP, former Ontario Securities Commission *Chairman, ** Treasurer, ***Secretary, ****Vice-Chair, ^Ex-Officio 3 7/17/2015 © 2013 SASB™ CONFIDENTIAL & PROPRIETARY Investors Advisory Council Barbara Boigegrain Valerie Brow n Verity Chegar Audrey Choi Eileen Cohen Sam Di Piazza Michelle Edkins General Board of Pension & Health Benefits, United Methodist Church Alliance Bernstein Allianz Global Investors Morgan Stanley JP Morgan Citi Blackrock John Fullerton David Gottf ried David Hazan Melissa Epperly Matt Hennessy R. Paul Herman Bruce Kahn Capital Institute Regenerative Ventures New Albion Partners LLC The Anchorage Group Trem ont Equity Advisors HIP Investor Deutsche Bank Adam Kanzer Stephen Kibsey Peter S. Knight Rob McGarrah Andy Matteis Chris McKnett Margaret Moore Dom ini Social Investm ent La Caisse Generation Investm ent AFL-CIO Pyram is Global Advisors State Street Global Advisors Goldm an Sachs Janet Pegg Diana Propper Curtis Ravenel Cheryl Smith Byron Walker Jill Watz Martin Whittaker UBS Expansion Capital Bloom berg LP Trillium UBS – Retired Vulcan Sonen Capital Hampton Bridw ell Todd Camp Marcus Chung John Edelman Bob Ew ing Andrea Fernandez Jessica Fox BrandLogic The Hershey Com pany The Children’s Place Edelm an Weyerhaeuser Arup EPRI Beth Holzman Jef f Hynds Dr. Rodney Irw in Cecily Joseph Erica Isaacson Margaret Kohn Elizabeth Lascelle The Tim berland Co. Ingersoll Rand World Business Council Sustainable Developm ent Sym antec Edelm an Merck & Co. Johnson & Johnson Tom Murcott Angela Nahikian Jeanne Chi Yun Ng Ronald Nielsen Laura Nishikaw a Tom Schneberger PJ Simmons Gale International Steelcase CLP Pow er Cliffs NR MSCI FMC Corporate EcoForum Dante Tedaldi Fern Thomas Matteo Tonello Christina Vernon Conrad Walters David Westman SAIC Christies – Form er The Conference Board Carolinas Healthcare System UPS ConEdison Bill Baue Aaron Bernstein Helen Brand Mark Campanale Todd Cort Stephen Davis Ira Feldman Independent Harvard Law School ACCA Halloran Philanthropies Tw o Tom orrow s Yale University Greentrack Jennif er Francis Ralf Frank Gil Friend Dan Geiger Bahar Gidw ani Ted Grant James Haw ley Duke University DVFA Natural Logic USGBC CSRHub AccountAbility St. Mary’s College Toby Heaps Bob Herz Eric Hespenheide John Hodges Rachel Jackson Kirsty Jenkinson Keith Johnson Corporate Knights FASB – Form er Deloitte BSR ACCA WRI Reinhart Boerner Van Deuren Edw ard Kamonjoh Namrita Kapur Holly Kauf man Cary Kroskinsy Mike Krzus Rob Lake Brendan LeBlanc ISS Environm ental Defense Fund Environm ent & Enterprise Strategies Netw ork for Sustainable Financial Markets Grant Thornton – Retired UNPRI Ernst & Young Glen Low Rob Ludke Jo Mackness Joel Makow er Lenny Mendonca Anthony Miller Andrea Mof f at BluSkye Hill & Know lton Strategies Haas School of Business Green Biz Group McKinsey & Co. UNCTAD CERES Charlie Moore Marcy Murninghan Michael Muyot Michael Nicholus Kathy Nieland Matt Orsagh Jeremy Osborne CECP The Murninghan Post CRD Analytics Accenture Pw C CFA Institute Ernst & Young Dan Pingaro Karl Pf alzgraf Janet Ranganathan Kathee Rebernak Mark Serw inow ski Jef f rey Smith Kate Starr Sailors for the Sea BPA Associates WRI Fram ew ork LLC MetaVu Crow ell & Moring LLP Heron Foundation Mike Starr Ralph Taylor Peter Templeton Stephen Viederman Steve Walker Michael Wall Allen White SEC-Form er Metanoia Fund GBCI Jessie Sm ith Noyes Foundation- Retired World 50 NRDC Tellus and GISR John Wilson Public Interest/Intermediaries Corporations & Trade Associations TIAA-CREF 4 Cindy Williams7/17/2015 University of Illinois Alan Willis © 2013 SASB™ Andrew Alan Willis & Associates CONFIDENTIAL &Lisa PROPRIETARY Winston Woll Eco-Strategies US SIF Advisors on this list serve as individuals; the organizations listed alongside SASB Advisors are for affiliation purposes only. No past or current organizational endorsement of SASB is hereby The most stable markets in the world… Founded in the US in 1973, The Financial Accounting Standards Board takes responsibility for establishing Generally Accepted Accounting Principles, or GAAP, on behalf of the SEC. The SEC mandates certain content and disclosures in SEC filings, such as audited financial statements and Management’s Discussion and Analysis (MD&A). These filings, and the standards that underlie them, play a fundamental role in making our markets the most efficient, liquid, and resilient in the world. A primary goal of United States securities laws is to promote honest and efficient markets and informed investment decisions through full and fair disclosure of material issues. 5 7/17/2015 © 2012 SASB™ CONFIDENTIAL & PROPRIETARY A changing world Corporate growth and success are no longer constrained solely by the availability of financial capital. Global resource constraints and management of environmental and social issues are integral to the long term success and sustainable value creation of companies. Inadequate pricing of externalities present a skewed view of performance for resource intensive companies. Growth The world population is increasingly urban Global population by type of area and by region: 1950-2050 Source: UN Population Division, World Population Prospects: The 2008 Revision, 2008 The world could be running out of some resources Global supply forecasts according to the implied ultimate recoverable resources of conventional oil, date of peak production and the postpeak aggregate decline rate Governments are less able to regulate the complex interactions, dependencies, and impacts of companies on society. Source: World Bank, Global Economic Prospects, 2007 Reporting to investors and the public must reflect a balanced view of risks and opportunities across all forms of capital a company employs. 6 7/17/2015 © 2012 SASB™ CONFIDENTIAL & PROPRIETARY Changing valuations Components of S&P 500 Market Value 100% 80% 60% 40% 20% 0% 1975 1985 Intangible Assets 7 7/17/2015 © 2012 SASB™ 1995 2005 Tangible Assests CONFIDENTIAL & PROPRIETARY 2010 Source: Ocean Tomo Intangibles ESG data are quantifiable, just in different terms 8 7/17/2015 © 2012 SASB™ CONFIDENTIAL & PROPRIETARY SASB Complements other established frameworks and initiatives Global IIRC SEC Principles for Integrated Reporting GRI Global issues, voluntary guidelines Protecting Investors FASB SASB provides guidance on the materiality of sustainability issues for mandatory disclosure to investors 9 7/17/2015 SASB covers sector specific issues for all industries GISR SASB Financial Accounting Standards US Based SASB provides minimum content requirements for integrated reporting Sustainability Accounting Standards SASB develops language for standardized disclosure of material, nonfinancial impacts © 2012 SASB™ Ratings System Industry KPIs SASB establishes industry KPIs for use by ratings agencies and analysts CONFIDENTIAL & PROPRIETARY Materiality Matters SEC materiality Rule 12b-2 Rule 12b-20 Rule 10b-5 Rule 210.1-02 (Regulation S-X) Rule 210.4-01 (a) (Regulation S-X) Rule 210.4-02 (Regulation S-X) Item 101, 103, and 303 (Regulation S-K) Staff Accounting Bulletin No. 99 The Supreme Court’s Definition “Material information” is defined as presenting a substantial likelihood that the disclosure of the omitted fact would have been viewed by the reasonable investor as having significantly altered the “total mix” of information made available. (TSC Indus. V. Northway, Inc., 426 U.S. 438 (1976) and Basic v. Levinson, 485 U.S. 224 (1988)) SASB adheres to the materiality of information requiring disclosure as defined by U.S. regulation, SEC rulings, and judicial review, effectively bridging the gap between financial reporting and sustainability reporting. An integrated view of materiality is essential for integrated reporting. 10 7/17/2015 © 2012 SASB™ CONFIDENTIAL & PROPRIETARY SEC, FASB and SASB US GAAP Integrated Reporting SASB Materiality Map and KPIs SASB completes the picture on corporate performance 11 7/17/2015 © 2012 SASB™ CONFIDENTIAL & PROPRIETARY Supporting Investors in Decision Making Sustainable Industry Classification System Materiality Map Key Performance Indicators SICS Sector Allocation 12 7/17/2015 Portfolio Risk © 2013 SASB™ CONFIDENTIAL & PROPRIETARY Benchmarking Performance Creating a race to the top Comparable information in a public eye will encourage companies to compete on key dimensions of sustainability, and investors to drive capital to the most sustainable outcomes. SASB KPIs 13 7/17/2015 © 2012 SASB™ CONFIDENTIAL & PROPRIETARY Supply and Demand Clear value propositions for companies and investors. Investors Companies Cost Effective Relevant and Actionable Levels the Playing Field Minimizes Questionnaire Fatigue Integrated Reporting 14 7/17/2015 © 2012 SASB™ Fiduciary Duty Floats All the Boats Ease of Access Free of Charge Allows Benchmarking Supports all types of Investment Strategies CONFIDENTIAL & PROPRIETARY 10 Sectors in 10 Quarters 15 7/17/2015 Time Frame Sector # of Industries Q4, 2012 Health Care Services 6 Q1, 2013 Financials 7 Q2, 2013 Technology & Communication 5 Q3, 2013 Non-Renewable Resources 11 Q4, 2013 Transportation 9 Q1, 2014 Services 10 Q2, 2014 Resource Transformation 5 Q3, 2014 Consumption 17 Q4, 2014 Renewable Resources & Alt. Energy 8 Q1, 2015 Infrastructure 10 © 2013 SASB™ CONFIDENTIAL & PROPRIETARY Industry Working Groups 2 Q1 SASB Implementation Schedule J F 1 2 0 1 Q2 M A M 3 4 5 2 2 Q3 Q4 Q1 J J A S O N D J F 6 7 8 9 10 11 12 1 2 0 1 Q2 M A M 3 4 5 3 2 Q3 Q4 Q1 J J A S O N D J F 6 7 8 9 10 11 12 1 2 0 1 Q2 M A M 3 4 5 A S O N D J F 6 7 8 9 10 11 12 1 2 (# of Industries within sector) SICS Sector (7) Financials 3 (11) Non-renewable Resources 4 (10) Technology & Communications 5 (17) Consumption 6 (2) Renewable Resources 7 (13) Transport 8 (12) Services 9 (9) Resource Transformation 10 (18) Infrastructure Legend Grey Salmon Ongoing Preparation & Recruitment Phase Green 3 Month Intensive Development Phase 1 Month SASB Preparation Phase Yellow 6 Month Refinement Phase MM or KPI Published 16 7/17/2015 © 2012 SASB™ Q1 J Recruit and Liaise Industry Working Groups 2 Q4 J Master Materiality Map (All Sectors) (5) Health Care 2 Q3 Preperation 1 4 CONFIDENTIAL & PROPRIETARY 0 1 J J A S O N D 6 7 8 9 10 11 12 Q2 M A M 3 4 5 5 Q3 Q4 SASB’s rigorous, ANSI compliant standards setting process Launch of IWG Forum Prior Work • Recruit IWGs • Liaise with Industry Groups Standards Council Process Review IWG Forum Disbanded Industry Research Review Material Issues KPI Harvesting Prepare Strawmen IWG Review Prepare Draft for Public Comment 30 Day Comment SASB SASB SASB SASB IWG Forum SASB Public 4-Month Preparation Phase Prepare final draft of KPIs for Standards Council 30 Days SASB Standards Council Review of draft standards after comment 2-Month Intensive Development Phase Finalization of KPIs for all industries in a sector and release preparation 30 Days SASB Stds. Council 3-Month Refinement Phase (Continued) 17 7/17/2015 © 2012 SASB™ CONFIDENTIAL & PROPRIETARY Response to Comments 30 Days SASB 3-Month Refinement KPIs Release of Sector KPIs for Public use and Industry pilot Health Care Preliminary Results Biotechnology Medical Equipment & Supplies Pharmaceuticals Health Care Delivery Distributors & PBMs Managed Care Materiality Environmental Pharmaceutical water contamination Resource efficiency Disease migration Genetically modified organisms Social Access-to-Medicines Drug safety & side effects Safety of clinical trial participants Affordability & fair pricing Ethical marketing Orphan drugs Employee H&S Environmental Drug contamination of water Operational eco-efficiency Social Access-to-medicines Affordability & fair pricing Drug safety & side effects Ethical marketing Local economic impacts Transparency & safety of clinical trials Employee H&S Environmental Green product design Product lifecycle management Operational eco-efficiency Social Ethical marketing Product safety Employee H&S Governance Corruption & bribery Governance Corruption & bribery Anti-Competitive Behavior Governance Corruption & bribery Environmental Operational Eco-efficiency Green Design & Construction Environmental Factors in Healing Social Quality of Care Access for Low Income & Uninsured Patients Price Transparency Fraud Unnecessary Procedures Patient Abuse Patient data privacy Recruitment & Retention Cost & Utilization of Health Care Health Education & Incentives for Healthy Living Employee H&S Environmental Reliability & efficiency in logistics Product Lifecycle Management Social Product safety Conflicts of Interest Employee H&S Governance Anti-competitive Behavior Fraud Environmental Environmental Factors in Healing Social Proper Alignment of Risks & Benefits Electronic Records & Privacy of Patient Data Health education & incentives for healthy lifestyles Transparent Pricing Transparent Billing Customer satisfaction, complaints Cost & utilization of healthcare Employee H&S Governance Political Contributions Top 5 companies Amgen Inc. Gilead Sciences Biogen Idec Corp Celgene Corp Vertex Pharmaceuticals 18 7/17/2015 Pfizer Merck & Co Abbot Laboratories Johnson & Johnson Eli Lilly & Co Johnson & Johnson Medtronic Inc. Thermo Fisher Scientific Abbot Laboratories Stryker Corp. © 2013 SASB™ HCA Holdings Community Health Systems Tenet Healthcare Universal Health Srvs Davita Inc. CONFIDENTIAL & PROPRIETARY McKesson Corp. Cardinal Health Inc. AmerisourceBergen CVS Caremaker Corp. Express Scripts Holding United Health Group WellPoint Inc. Humana Inc. Aetna Inc. Cigna Corp. From Material ESG Issues to Suggested KPIs Pharmaceuticals Material Issues Suggested KPIs Ranking in the Access to Medicines Index Access to Medicines Initiatives to promote access to health care products in priority countries as defined by Access to Medicines Number of products listed by the FDA in the Adverse Event Reporting Drug Safety and Side System (AERS) in the past five years Effects Number of fatalities due to side-effects Number and value ($) of products recalled in the past five years Lost revenue due to slowed or terminated clinical trials Disclose information about the result of all of its clinical trials conducted in ATM Index Countries regardless of the outcome & whether the trial Safety of Clinical Trial was conducted in-house or through a third-party. Participants Discuss any breach of international codes or lawsuits related to its clinical trial practices in the (ATM) Index Countries during the last five years. Affordability and Fair Reverse payments to manufacturing companies, to delay the production Pricing of biosimilars or generics. Warning letters or amount ($) of settlements regarding false claim allegations. Ethical Marketing Adoption and enforcement of code of ethics governing interactions with healthcare professionals. Revenue from orphan drugs Orphan Drugs Discussion of ongoing efforts to address orphan diseases Percentage of wastewater treated for drug compounds produced by company Amount of product recovered through take-back programs Pharmaceutical Water Product stewardship initiatives to promote reuse or adequate disposal Contamination at the end of the lifecycle. Efforts to understand metabolites and potential for environmental migration of drugs into waterways and ecosystems (SASB) Research relating to treatments and vaccines for malaria, dengue fever, Disease Migration and other associated diseases … 19 7/17/2015 © 2013 SASB™ CONFIDENTIAL & PROPRIETARY Health Care Industry Working Groups The Research Team produces industry briefs for each industry in the sector, addressing material issues, evidence of links to valuation, and KPIs currently in use. These serve as background material for consideration in the Industry Working Groups. 20 7/17/2015 © 2013 SASB™ CONFIDENTIAL & PROPRIETARY SASB’s rigorous, ANSI compliant standards setting process Launch of IWG Forum Prior Work • Recruit IWGs • Liaise with Industry Groups Standards Council Process Review IWG Forum Disbanded Industry Research Review Material Issues KPI Harvesting Prepare Strawmen IWG Review Prepare Draft for Public Comment 30 Day Comment SASB SASB SASB SASB IWG Forum SASB Public 4-Month Preparation Phase Prepare final draft of KPIs for Standards Council 30 Days SASB Standards Council Review of draft standards after comment 2-Month Intensive Development Phase Finalization of KPIs for all industries in a sector and release preparation 30 Days SASB Stds. Council 3-Month Refinement Phase (Continued) 21 7/17/2015 © 2012 SASB™ CONFIDENTIAL & PROPRIETARY Response to Comments 30 Days SASB 3-Month Refinement KPIs Release of Sector KPIs for Public use and Industry pilot Industry Working Group Participants Health Care Selected Companies Johnson and Johnson Baxter Aetna Ingersoll Rand Becton, Dickinson and Company Biogen Idec Davita HCA Holdings, Inc Novo Nordisk CBRE Group Pfizer Encision, Inc Atlas Copco Mettler-Toledo Merck Financials Selected Investors Alliance Bernstein Trillium Asset Management Domini Social Investments Pax World Investments Harrington Investments UAW Retiree Medical Benefits Trust Calvert Investments Boston Common Asset Management Henderson Global Investors Core Capital Management UBS Securities Breckinridge Capital Advisors Stifel Nicolaus Health Care participants represent companies with more than $800B market cap and investors with more than $952B in AUM 22 7/17/2015 © 2013 SASB™ Selected Companies ANZ Banking Group Aegon Group TD Bank Group The Hartford Group Royal Bank of Canada Comerica Wells Fargo Bank HSBC Private Bank DNB ING Visa Morgan Stanley Bank of America Citigroup MetLife Bank Selected Investors Macquarie Group Independent Capital Management AG Standard Life Investments Aviva Investors Breckinridge Capital Advisors Oddo Securities Calvert Investments DB Advisors Hermes Fund Manager Pax World Investments Domini Social Investments Trillium Asset Management First Affirmative Financial Network Financials participants represent companies with more than $1.3T market cap and investors with more than $5T in AUM CONFIDENTIAL & PROPRIETARY Building Consensus on KPIs Suggested KPIs Relevant. Useful. Cost-effective. Comparable. Auditable. Discuss co-pay structures, deductibles, and premiums encouraging preventative care and wellness All members 90% 90% 90% 70% 70% Corporation 100% 100% 100% 33% 67% Market Participant 100% 100% 100% 100% 100% Others 67% 67% 67% 67% 33% Percentage of enrollees engaged in wellness programs All members 90% 70% 60% 60% 70% Corporation 100% 100% 67% 33% 67% Market Participant 100% 75% 75% 75% 100% Others 67% 33% 33% 67% 33% Corporations and investors agree on the usefulness and cost-effectiveness of the Health Care KPIs 23 7/17/2015 © 2013 SASB™ CONFIDENTIAL & PROPRIETARY SASB’s rigorous, ANSI compliant standards setting process Launch of IWG Forum Prior Work • Recruit IWGs • Liaise with Industry Groups Standards Council Process Review IWG Forum Disbanded Industry Research Review Material Issues KPI Harvesting Prepare Strawmen IWG Review Prepare Draft for Public Comment 30 Day Comment SASB SASB SASB SASB IWG Forum SASB Public 4-Month Preparation Phase Prepare final draft of KPIs for Standards Council 30 Days SASB Standards Council Review of draft standards after comment 2-Month Intensive Development Phase Finalization of KPIs for all industries in a sector and release preparation 30 Days SASB Stds. Council 3-Month Refinement Phase (Continued) 24 7/17/2015 © 2012 SASB™ CONFIDENTIAL & PROPRIETARY Response to Comments 30 Days SASB 3-Month Refinement KPIs Release of Sector KPIs for Public use and Industry pilot Standards Council James Coburn CERES Christine Ervin CE Co. - Former USGBC Patricia Farrar Rivas Veris Wealth Partners Jeffrey Hales* INSEAD Shana Harbour - Observer US EPA Tom Kiely McKinsey Gayle Koch Axlor Stephen Linaweaver BluSkye Andrew Park – Observer Bloomberg Jameela Pedicini CalPERS Greg Rogers Guida Slavich Flores Elizabeth Seeger KKR George Serafeim Harvard Business School Katherine Schipper Duke University Jeremy Shapiro Morgan Stanley Nigel Topping Carbon Disclosure Project Jean Rogers (ex-officio) Sustainability Accounting Standards Board 25 *Chairman 7/17/2015 © 2013 SASB™ CONFIDENTIAL & PROPRIETARY Structure SASB is a nonprofit private sector organization complementing the work of FASB and supporting the work of the SEC. The structure of the organization reflects the major program area associated with standards development. Future program areas will support development of a comprehensive non-financial accounting system, including data mining and quantitative methods for use of ESG data in investment decisions, and development of robust auditing and assurance methods for non-financial data. Quantitative Modeling* Auditing and Assurance* * Future program areas to be developed with partner organizations 26 7/17/2015 © 2012 SASB™ CONFIDENTIAL & PROPRIETARY SASB Impact Harnessing market forces to address global sustainability challenges Governments directing funding and policies toward the most pressing issues in particular industries Investors directing capital toward sustainable industries Leveraging corporate resources to proactively reduce impact and throughput Full cost accounting, ultimately leading to sustainable value creation Acknowledgement of underlying environmental & human capital essential to sustaining value creation Delineating a roadmap to focus and leverage action on key issues Clarity around key issues and priorities Converging and leveraging philanthropic and corporate efforts Sustainable capitalism model for mature and emerging economies All investing becomes impact investing 27 7/17/2015 © 2012 SASB™ CONFIDENTIAL & PROPRIETARY SASB and Climate Change Corporate reporting on key indicators associated with climate change is inconsistent and inadequate SASB addresses climate change by: Identifying industries where climate change is material so that portfolios can be assessed in terms of risks and assets allocated accordingly. Identifying industries where there are material innovation opportunities associated with climate change mitigation Surfacing industry practices that may protect financial capital in the near term but contribute to a systemic erosion of value by externalizing impacts Surfacing performance data that enables investors to benchmark companies’ performance in regards to climate change 29 7/17/2015 © 2012 SASB™ CONFIDENTIAL & PROPRIETARY SICS and GHG Using CDP’s Scope 1, 2 and 3 definitions, Bloomberg data, and SASB’s SICS, SASB has taken a first look at how GHG emissions break out across SASB’s SICS sectors. 30 7/17/2015 © 2012 SASB™ CONFIDENTIAL & PROPRIETARY Climate Change Disclosure After SEC Guidance The SEC has issued guidance on climate change disclosure, but the guidance vague and the resulting reporting is insufficient 31 7/17/2015 © 2013 SASB™ PROPRIETARY CONFIDENTIAL & The Need for Industry-Specific Standards for Climate Change Disclosure Different industries need different metrics in order to make the disclosure useful: Airlines should disclose fuel practices (conservation and alternative fuels) Utilities should discuss moving to a renewable energy portfolio Real estate should discuss the demand for and availability of green buildings and the vulnerability of assets in coastal locations Insurance should disclose the vulnerability of insured assets and the impact of increased catastrophic storm events 32 7/17/2015 © 2013 SASB™ PROPRIETARY CONFIDENTIAL &