Performance Measurement and Sustainability

Facilitator: Paul RouseSpeakers: Lily Chen, Caroline Bridges, Ramona

Zharfpeykan

Performance Measurement

• Why sustainability?• What would we measure?• How would we measure?

Sustainability-related Quantitative Research - Lily Chen (A&F)• CSR – why firms invest in CSR

activities?• Create better media image (JBF)• Demanded by certain types of

institutional investors: Pension funds, Charities etc. (JBE)

• Demanded by institutional investors from areas with strong norms (under review of MS)

• CSR – current research• CSR and CEO personal agenda• CSR disclosure in IPOs

• Integrated Reporting (IR)• Economic consequences:

integrated reporting is positively associated with capital markets benefits, i.e., firm value, expected future cash flows, cost of capital, stock liquidity

• IR – current research• Investment efficiency• IR assurance• Management myopia

Research Symposium on Sustainability Cluster: Performance Measurement and Sustainability

Integrated ReportingNew form of corporate reporting to integrate both financial and non-financial information.

Caroline Bridges PhD Student

Monday, 11 July 2016

Integrated reporting (IR)

5

Current research (PhD)What is IR? and who benefits?Relevant to NZ businesses that are cautiously considering adopting IR (and there are some).Findings?There are internal benefits to the firm Accountants are considered important to the process and integral to its implementation.

Future research?1. How do businesses adopt IR internally?2. How can credibility be improved with assurance? 3. Who can provide assurance of

Integrating sustainability into performance measurement system

Ramona Zharfpeykan

Research Symposium on Sustainability 2015

SUSTAINABILITY

Sustainable development tries to meet present needs

without endangering future ones

Corporate sustainability

(Relevant business strategy)

REPORTING RATE COMPARISONS OF ALL COUNTRIES ACCORDING

TO KPMG SURVEY 2013

Survey firms

Find a composite sustainability indicators

according to practitioners’opinion

Find whether sustainability areas can be

fitted into the PM according to practitioners’

opinion

Using GRI guideline

Use the sustainability reports of firms

Find a composite sustainability indicators that are more commonly

used in that industry

Evaluate their sustainability performance

Using DEA

Using GRI guidelineAreas of

differences

PARALLEL STUDY

Composite indicators

World

benchmark

Individual

reports

Sustainable

Performance

measurement

Survey

WHY GRI?

World benchmark

10.90%

32.75%

21.39%

12.08% 12.42%10.47%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

average

average of general indicators for 5 years

economic

environment

Labor total

Human rights total

Society total

product total

Trends of general indicators in world benchmark

0%

200%

400%

600%

800%

1000%

1200%

2010 2011 2012 2013 2014

general indicators

economic

environmental

labor practices and decent work

human rights

society

product responsibility