Corporate Responsibility Exchange Paul Rennison London Stock Exchange

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Corporate Responsibility Exchange Paul Rennison – London Stock Exchange

Corporate Responsibility Exchange Paul Rennison – London Stock Exchange

PROBLEM TO SOLVE § Started with research into the problem of “questionnaire fatigue” for

PROBLEM TO SOLVE § Started with research into the problem of “questionnaire fatigue” for companies § Companies on average receiving 7 questionnaires relating to CG, CSR etc pa § Average of 7 man days per month spent responding this stakeholder group § Realised there are information asymmetries that impact on the needs of institutions as well § Briefly: some of the research findings

Proportion of Repetition in Questionnaires • Questionnaires are found by the majority to be

Proportion of Repetition in Questionnaires • Questionnaires are found by the majority to be highly repetitive – over three-quarters of respondents believe over 50% of the average questionnaire is a repetition of information previously given

APPROACH § Developed a normalised set of questions which map across to the key

APPROACH § Developed a normalised set of questions which map across to the key codes, guidelines and questionnaires currently in use: CC, NAPF, ABI, , BITC, EIRi. S, SAM, GRI, CDP § The core normalised question set needs to be supplemented by “balancing” questions from the agencies § Not seeking to set the CR agenda, just helping companies to report against it § Consultative and consensual: Steering Group comprising key stakeholders among companies, institutions and research agencies

THE QUESTION SETS § Schema will deliver a supra-questionnaire that captures 70 – 80

THE QUESTION SETS § Schema will deliver a supra-questionnaire that captures 70 – 80 % of data requested by all § Schema also allows for non-core questions to be asked according to the code or agency involved § Schema also allows specific proprietary questions to be targeted to companies or sectors § We have a process and architecture that allows flexibility to co-opt new questions for emerging issues (e. g. obesity, OFR) and will be included via a ratification process

CRE Data Architecture

CRE Data Architecture

CRE SCHEMA § Defines both quantitative and qualitative non-financial data e. g. “CO 2

CRE SCHEMA § Defines both quantitative and qualitative non-financial data e. g. “CO 2 emissions (tonnes)” vs. “Human Rights policy and declaration” § Allows definitions of alternative taxonomies for categorising the same CSR data e. g. “Strategy, management and operations” or “Social, environmental, economic” § Defines common data types found within the CSR domain e. g. “Gas Emissions”, “Energy Consumption”, “Policy Document” § Time period and applicability data for apportioning and defining the relevance of data e. g. “carbon emissions in Europe”, “child labour excluding sub-Saharan Africa”.

CRE SCHEMA § Allows definition of questionnaire sets, which provide a mechanism for manual

CRE SCHEMA § Allows definition of questionnaire sets, which provide a mechanism for manual but efficient capture of the data this data does typically exist in a structured form in enterprise systems so must be recaptured § Standardised definitions of third-party requirements and ratings and their interrelationships and redundancies e. g. “this data fulfils the requirements of both Global Reporting Initiative EN 12 and Carbon Disclosure Project Q 4” § Reporting definitions and vocabularies Supports the definition of reports (exceptions and aggregations) that can be used during research and comparative analysis

Migration to a XBRL based standard § CRE schema was designed initially as the

Migration to a XBRL based standard § CRE schema was designed initially as the enabler for a proprietary software application § However this underlying platform and data schema are open to all § It takes concepts and tenets of XBRL to ease future migration § The London Stock Exchange are engaged with the XBRL Consortia to evolve the CRE schema into an open set of XBRL taxonomies and extensions § Software tools will be made available to the corporate responsibility community to allow definition of new CSR data requirements and questionnaires