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THE UN GLOBAL COMPACT

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Title: THE UN GLOBAL COMPACT


1
THE UN GLOBAL COMPACT
  • FROM PRINCIPLE TO PRACTICE
  • Session E6 The GC Toolkit
  • Environmental Principles

2
The GC Toolkit - Environmental Principles
Introduction and Overview
  • Different types of Environmental Sustainability
    Tools
  • Environmental Management Tools
  • Environmental Assessment Tools
  • Environmental Monitoring and Auditing Tools
  • Environmental Reporting and Communication Tools
  • Note the next few slides provide some examples
    of specific tools for each of these broad general
    types. Each of these types of tools is then
    linked to the UNGC Performance Model introduced
    in the previous Module.
  • A comprehensive Framework for Action is provided
    in Appendix 1 of the Manuals, showing the
    inter-relationship between the various tools, the
    GC principles, the training modules and the
    Performance Model.

3
The GC Toolkit - Environmental Principles
Introduction and Overview
  • Different types of Environmental Sustainability
    Tools
  • Environmental Management Tools
  • Environmental Assessment Tools
  • Environmental Monitoring and Auditing Tools
  • Environmental Reporting and Communication Tools
  • Environmental Management Tools
  • Environmental Management Systems e.g. ISO 14001
    or EMAS
  • Environmental Management Strategies
  • Cleaner Production, Sustainable Consumption and
    Eco-efficiency
  • Life-cycle management
  • Design for the Environment/ Eco-design
  • Product stewardship
  • Product-services systems
  • Industrial ecology
  • UNEP APELL 

4
From Principle to Practice Relating
environmental management tools to the GC
Performance Model
GC TOOLS Environmental Management Strategies
(e.g. Cleaner Production, Life Cycle Management,
Design for Environment)
GC TOOLS Environmental Management System (E.g.
ISO14000)
Environmental Management System
Environmental Management System
Internal Communication (as part of an EMS)
Environmental Management Tools (E.g. Life-Cycle
Management)
Environmental Management Tools (E.g. Product
Stewardship, Product-Services Systems)
5
The GC Toolkit - Environmental Principles
Introduction and Overview
  • Different types of Environmental Sustainability
    Tools
  • Environmental Management Tools
  • Environmental Assessment Tools
  • Environmental Monitoring and Auditing Tools
  • Environmental Reporting and Communication Tools
  • Environmental Assessment Tools
  • Environmental Impact Assessment
  • Environmental Risk Assessment
  • Cleaner Production Opportunity Assessment
  • Environmental Technology Assessment
  • Life-Cycle Assessment
  • Total Cost Assessment

6
From Principle to Practice Relating
environmental assessment tools to the GC
Performance Model
GC TOOLS Environmental Assessment Tools (E.g.
Risk Assessment, CPOA, LCA, TCA)
GC TOOLS
Environmental Assessment Tools (E.g. Risk
Assessment, EnTA)
Environmental Assessment Tools (e.g. Supply Chain
Assessment, Life-Cycle Assessment)
Environmental Risk Assessment
7
The GC Toolkit - Environmental Principles
Introduction and Overview
  • Different types of Environmental Sustainability
    Tools
  • Environmental Assessment Tools
  • Environmental Management Tools
  • Environmental Monitoring and Auditing Tools
  • Environmental Reporting and Communication Tools
  • Monitoring and Auditing Tools
  • Environmental Performance Indicators
  • Environmental Auditing
  • Pollution and Waste Audits
  • Supply chain audits and assessments

8
From Principle to Practice Relating monitoring
and auditing tools to the GC Performance Model
GC TOOLS Environmental Auditing Monitoring Tools
GC TOOLS
Environmental Monitoring Tools (e.g. KPIs)
Environmental Monitoring Auditing Tools
Environmental Auditing Monitoring Tools (e.g.
Supply Chain Audits)
9
The GC Toolkit - Environmental Principles
Introduction and Overview
  • Different types of Environmental Sustainability
    Tools
  • Environmental Assessment Tools
  • Environmental Management Tools
  • Environmental Monitoring and Auditing Tools
  • Environmental Reporting and Communication Tools
  • Reporting and Communication Tools
  • Corporate Environmental / Sustainability Reports
  • Stakeholder engagement activities  
  • Developing partnerships for progress
  • Environmental labelling programmes
  • Ecological footprints

10
From Principle to Practice Relating reporting
and communication tools to the GC Performance
Model
GC TOOLS Communication Tools (e.g. Stakeholder
engagement)
GC TOOLS Communication Tools (E.g. Stakeholder
engagement)
Communication Tools (E.g. Stakeholder engagement)
Communication Tools (e.g. Eco-labelling)
Environmental Reporting Communication
Tools (E.g. Sustainability Reporting)
11

UN Global Compact Performance Model
Vision
  • Coporate environmental and social responsibility
    (CESR) / corporate citizenship

CESR entry point values-based
CESR entry point values-based
Leadership
  • Operational technical e.g. cleaner production,
    eco-efficiency, ISO14001 EMS

Stakeholder dialogue
Resources
Policies Strategy
Empowerment
  • Sustainable consumption
  • Entering the business elements of the operations
    of the corporation in terms of enablers and
    results
  • And super-imposed
  • Mapping out corporate environmental and social
    responsibility (CESR), and Sustainable
    Consumption Production (SCP), as called for in
    the Johannesburg Plan of Implementation (WSSD
    PoI, 2002)
  • overlapping areas and different entry points

Processes Innovation
Impact onvaluechain
Impact onemployees
Impacton society
Reporting
12
The GC Toolkit - Environmental Principles
Environmental Management Tools
  • Environmental Management Systems
  • An EMS is the part of the overall management
    system that includes organizational structure,
    planning activities, responsibilities, practices,
    procedures, processes and resources for
    developing, implementing, achieving, reviewing
    and maintaining the environmental policy. Key
    examples include ISO 14001 and EMAS.
  • EMS are used to
  • Help companies to identify and prioritise their
    key environmental impacts in a structured and
    systematic manner
  • Provide a framework for setting clear objectives
    and targets for managing these impacts
  • Ensure that structured processes and procedures
    are in place for measuring and monitoring
    performance
  • The type of EMS depends on the nature, size and
    complexity of the companys activities, products
    and services

13
The GC Toolkit - Environmental Principles
Environmental Management Tools
ISO 14001 Environmental Management System
Plan
Continual Improvement
Act
Do
Check
14
The GC Toolkit - Environmental Principles
Environmental Management Tools
ISO 14001 Environmental Management System
  • Plan
  • Identify aspects and impacts, hazards and risks
  • Document legislation and other requirements
  • Set objectives and measurable targets
  • Policy and management programme

Continual Improvement
Act
Do
Check
15
The GC Toolkit - Environmental Principles
Environmental Management Tools
ISO 14001 Environmental Management System
  • Do
  • Structure and responsibility
  • Training, awareness and competence
  • Communication
  • EMS documentation
  • Document control
  • Operational control
  • Emergency preparedness response

Plan
Continual Improvement
Act
Check
16
The GC Toolkit - Environmental Principles
Environmental Management Tools
ISO 14001 Environmental Management System
Plan
Continual Improvement
Act
Do
  • Check
  • Monitoring, measuring and auditing performance
  • Maintaining records
  • Schedule, plan and conduct system audits
  • Non-conformance and corrective action

17
The GC Toolkit - Environmental Principles
Environmental Management Tools
ISO 14001 Environmental Management System
Plan
  • Act
  • Implement corrective actions
  • Track improvement
  • Management review

Continual Improvement
Do
Check
18
The GC Toolkit - Environmental Principles
Environmental Management Tools
Implementing a CP Management Programme
19
The GC Toolkit - Environmental Principles
Environmental Management Tools
  • Cradle-to-Cradle Design Environmentally
    Intelligent
  • New paradigm modeling human industry on
    natures processes in terms of which
  • WASTE FOOD
  • Materials are viewed as nutrients circulating in
    healthy, safe metabolisms
  • 1) Nature's biological metabolism should be
    protected and enriched
  • all waste food for biological system
    (biodegradable)
  • 2) Technical metabolism enhanced through
    circulation of mineral and synthetic materials
  • All waste food for another industrial system
  • Cradle-to-Cradle by William McDonough Michael
    Bragnaurt
  • http//www.mbdc.com

20
The GC Toolkit - Environmental Principles
Environmental Management Tools
  • Cradle-to-Cradle Design Benefits
  • Design for life-time customers products leased
    again again to customer base
  • Risk management risks to environmental and
    human health are reduced by eliminating the
    concept of waste selecting materials that are
    safe to both human and natural systems
  • Cost reduction dramatically reduce legal
    material costs
  • Product differentiation products that offer
    customers excellence by all measurements
  • Cradle-to-Cradle designs have positive effects
    extending beyond the client company to its
    suppliers, customers, communities, and the
    natural world
  • William McDonough

21
The GC Toolkit - Environmental Principles
Environmental Management Tools
  • Industrial ecology 
  • Industrial ecology encompasses a variety of
    related areas of research and practice,
    including
  • Material and energy flow studies ("industrial
    metabolism") 
  • Dematerialization and decarbonization 
  • Technological change and the environment 
  • Life-cycle planning, design and assessment 
  • Design for the environment ("eco-design")
  • Extended producer responsibility ("product
    stewardship") 
  • Eco-industrial parks ("industrial symbiosis") 
  • Product-oriented environmental policy
  • Eco-efficiency 

22
The GC Toolkit - Environmental Principles
Environmental Assessment Tools
  • Environmental Impact Assessments
    (EIAs)
  • Aim to
  • Predict environmental impacts at an early stage
    in project planning and design
  • Find ways and means to reduce adverse impacts
  • Shape projects to suit the local environment
  • Present the predictions and options to
    decision-makers
  • Benefits
  • Reduced cost and time of project implementation
    and design
  • Avoided treatment/clean-up costs
  • Avoided impacts of laws and regulations.

23
The GC Toolkit - Environmental Principles
Environmental Assessment Tools
  • Environmental Risk Assessment
  • A process which helps answer the following
  • What can go wrong? (risk perception)
  • What is the likelihood and severity of any
    adverse occurrence? (risk assessment)
  • What can be done to manage any significant
    adverse occurrence and who should be involved?
    (risk management and risk communication).
  • Formula Lots of simple and complicated
    formulas
  • Example (simple) Possibility 1-3 X Consequence
    1-3

24
The GC Toolkit - Environmental Principles
Environmental Assessment Tools
  • Life-Cycle Assessment (LCA)
  • A systematic approach to measuring resource
    consumption and environmental releases throughout
    a products life cycle, from extraction through
    to disposal, with the aim of aiding
    decision-making when comparing the relative
    environmental merits of two or more product or
    service categories
  • Key stages in LCAs
  • Identify and quantify environmental loads
  • Assess and evaluate the potential environmental
    impacts of these loads
  • Assess options for reducing environmental impacts

25
The GC Toolkit - Environmental Principles
Environmental Assessment Tools
  • Life-Cycle Assessment

26
The GC Toolkit - Environmental Principles
Environmental Assessment Tools
  • Total Cost Assessment
  • Developed in 1991 by the Tellus Institute as a
    tool for integrating business and environmental
    objectives, TCA seeks to capture costs and
    savings that are generally ignored by traditional
    approaches.
  • It goes beyond traditional accounting by
    examining changes in direct, indirect, contingent
    and less-quantifiable costs and savings over the
    longer term
  • The 5 major TCA Principles
  • Accounting for costs rather than outlays
  • Accounting for hidden costs
  • Accounting for overhead and indirect costs to
    individual services
  • Accounting for past and future costs
  • Accounting for costs according to activities or
    paths

27
The GC Toolkit - Environmental Principles
Environmental Monitoring and Auditing Tools
  • Environmental Auditing
  • A systematic, documented verification process of
    objectively obtaining and evaluating audit
    evidence to determine whether specified
    environmental activities, events, conditions,
    management systems, or information about these
    matters, confirm with audit criteria, and
    communicating the results of this process.
  • Environmental audits may assess compliance
    against with e.g.
  • Environmental laws and standards
  • A companys environmental management system (e.g
    ISO 14001)
  • A companys environmental/sustainability report

28
The GC Toolkit - Environmental Principles
Reporting and Communications Tools
  • Corporate Environmental / Sustainability
    Reporting
  • Increasing community, regulatory and financial
    pressure on companies to report on their
    environmental performance
  • Such reporting should respond to the interests of
    key stakeholders and should report on issues that
    are material to core business
  • The process of reporting should feed into
    development of company strategy, and provide a
    stimulus for continuous commitment and
    improvement
  • The report should provide evidence that the
    company understands its key environmental impacts
    and should demonstrate its commitment to
    addressing these in an effective manner
  • Provision should be included for external
    verification / assurance

29
The GC Toolkit - Environmental Principles
Reporting and Communications Tools
  • The GRI Sustainability Reporting Guidelines
  • GRI launched in 1997, by CERES and UNEP
  • I was a board member Dec. 1997-Jan. 2001
  • ITT Flygt was one of 21 pilot testers of the
    first version of the GRIs Guidelines (March
    1999)
  • I'm a member of the Stakeholder Council, since
    March 2002.
  • Also a member of three working groups (Talent
    Management, Communication and Research
    Education)

30
What is GRI?
  • GRI is
  • A multi-stakeholder process and an independent
    institute
  • Mission
  • To develop and disseminate globally applicable
    sustainability reporting guidelines

31
GRI Reporting Framework
32
G 3 - Table of Contents
  • Preface
  • Introduction
  • Overview of Sustainability Reporting
  • Part 1
  • Defining Report Content, Quality and Boundary
  • Part 2
  • Standard Disclosures
  • Strategy and Profile
  • Economic
  • Environmental
  • Social
  • General Reporting Notes

33
Number of indicators?
  • Performance Core Additional Total
  • Economy 7 2 9
  • Environment 17 13 30
  • Social 25 15 40
  • Sum 49 30 79

34
Use the web!
  • www.globalreporting.org
  • All participation and active
  • engagement in the GRI work is
  • through Internet

35
Principles for content and quality
  • Principles for defining
  • the CONTENT
  • Materiality
  • Stakeholder inclusiveness
  • Sustainability context
  • Completeness
  • Principles for defining
  • the QUALITY
  • Balance
  • Comparability
  • Accuracy
  • Timeliness
  • Clarity
  • Reliability

36
Part 2. Standard DisclosuresStrategy and Profile
  • 1. Strategy and analysis 2
  • 2. Organizational profile 10
  • 3. Report parameters 13
  • 4. Governance, commitments and engagement 7
  • 5. Management Approach and Performance Indicators
  • Economic (EC) 9
  • Environmental (EN) 30
  • Social (LA, HR, SO, PR) 40
  • Labour practices and decent work (LA 14)
  • Human rights (HR 9) Society (SO 8)
    Product responsibility (PR 9)

37
Standard disclosuresStrategy and Profile
  • 1. Strategy and analysis
  • 1.1 Statement from CEO on strategic relevance of
    sustainability
  • 1.2 Description of key impacts, risks and
    opportunities
  • 2. Organizational profile
  • 2.1 Name of the organization
  • 2.2 Primary brands, products, services
  • 2.3 Operational structure of the organization
  • 2.4 Location of headquarters
  • 2.5 Number and names of countries of operations
  • 2.6 Nature of ownership and legal form

38
Standard disclosuresStrategy and Profile forts.
  • 2.7 Markets served
  • 2.8 Scale of reporting organization
  • 2.9 Significant changes during reporting period
  • 2.10 Awards received
  • 3. Report parameters
  • Report profile
  • 3.1 Reporting period
  • 3.2 Date of most recent report
  • 3.3 Reporting cycle
  • 3.4 Contact for questions

39
Standard disclosuresProfile forts.
  • Report scope and boundary
  • 3.5 Process for defining report content
  • 3.6 Boundary of the report
  • 3.7 Specific limitations on report scope or
    boundary
  • 3.8 Basis for reporting joint ventures etc
  • 3.9 Data measurement techniques, assumptions,
    estimations etc.
  • 3.10 Explanation of effect of any re-statements
  • 3.11 Significant changes in scope, boundary etc
  • GRI content index
  • 3.12 GRI content index
  • Assurance
  • 3.13 Policy and practices regarding external
    assurance

40
Standard disclosuresStrategy and Profile forts.
  • 4. Governance, commitments and engagement
  • Governance
  • 4.1 Governance structure, including board
    committees etc.
  • 4.2 Separate CEO and board chairperson
  • 4.3 Independence of board members
  • 4.4 Mechanisms for shareholder and employee
    feedback
  • 4.5 Link between board/management compensation
    and performance
  • 4.6 Process for avoiding conflicts of interest
  • 4.7 Process for determining board qualifications
    (sustainability issues)
  • 4.8 Mission, values, codes of conduct

41
Standard disclosuresStrategy and Profile forts.
  • 4.9 Procedures for board overseeing performance
    and compliance
  • 4.10 Process for evaluating board performance
  • Commitments to external initiatives
  • 4.11 Application of precautionary principle
  • 4.12 External charters or principles endorsed
  • 4.13 Memberships in (industry or other)
    associations
  • Stakeholder engagement
  • 4.14 List of stakeholder groups engaged by
    organization
  • 4.15 Basis for identification and selection of
    stakeholders to engage
  • 4.16 Approaches to stakeholder engagement
  • 4.17 Topics and concerns raised through
    stakeholder engagement

42
Standard disclosuresStrategy and Profile forts.
5. Management approach and performance indicators
  • This part includes reporting of management
    policies and indicators/measurements for each
    sustainability dimension
  • Economic
  • Environmental
  • Social (Labour, Human Rights, Society, Product
    Responsibility)
  • For each dimension
  • Disclosure on Management Approach
  • Core Indicators
  • Additional Indicators

43
Economic performance indicators
Core
Additional
  • Economic (729)
  • Economic Performance (40)
  • Market Presence (21)
  • Indirect Economic Impact (11)

44
Environmentalperformance indicators
  • Environmental (171330)
  • Materials (20)
  • Energy (23)
  • Water (12)
  • Biodiversity (23)
  • Emissions, Effluents and Waste (73)
  • Products and Services (20)
  • Compliance (10)
  • Transport (01)
  • Overall (01)

45
Social performance indicators
  • Labour Practices and Decent Work (9514)
  • Employment (21)
  • Labour/Management Relations (20)
  • Occupational Health and Safety (22)
  • Training and Education (12)
  • Diversity and Opportunity (20)

46
Social performance indicators
  • Human Rights (639)
  • Investment and procurement practices (21)
  • Non-Discrimination (10)
  • Freedom of Association and collective bargaining
    Child Labour (10)
  • Child labour (10)
  • Forced and Compulsory Labour (10)
  • Security Practices (01)
  • Indigenous Rights (01)

47
Social performance indicators
  • Society (628)
  • Community (10)
  • Corruption (30)
  • Public Policy (11)
  • Anti-Corruption Behaviour (01)
  • Compliance (10)

48
Social performance indicators
  • Product Responsibility (369)
  • Customer Health and Safety (11)
  • Products and Services Labelling (12)
  • Marketing Communication (02)
  • Customer Privacy (01)
  • Compliance (10)

49
GRIs Guidelines are incremental
Structure and criteria
Externally assurance gives a

Outside GRI
According to GRI


B
A
C
50
GRIs three Application Levels
51
GRI recommends the use of external assurance for
sustainability reports in addition to any
internal resourcesSource Sustainability
Reporting Guidelines (GRI G3 October 2006)
52
Standards used for assurance of sustainability
reports
IFAC Code of Ethics for Professional Accountants
International Framework for Assurance Engagements
Audits and reviews of historical financial
information
Assurance Engagements other than Audits or
Reviews of Historical Information
ISAE 3000 International Standard on Assurance
Engagements
ISA 100 International Standards on Auditing
ISA 2000 International Standards on Review
Engagements
National Sustainability Assurance
Standards Sweden, Germany, Netherlands, France
Annual Audit
Non-Financial Reports
53
The GC Toolkit - Environmental Principles
Reporting and Communications Tools
  • Environmental Labelling Programmes 
  • e.g. Eco-Labels
  • Why Label?
  • Allows consumers to make informed decisions about
    what they are buying
  • Shows commitment to reduced environmental impact
  • Third party verification gives credibility

54
The GC Toolkit - Environmental Principles
Reporting and Communications Tools
  • Types of environmental labels
  • TYPE I Voluntary label verified by independent
    body, awarded to products fulfilling criteria
    corresponding to the best environmental
    performance within each particular product group.
  • TYPE II Self-declared labels used by
    manufacturers to indicate the environmental
    aspects of a product or service. The label may
    take the form of statements, symbols or graphics
    on product or packaging labels, product
    literature, advertising or similar.
  • TYPE III Label licensed by independent
    organisations, serving as a report card and
    providing information on the possible
    environmental impact of a product, leaving it to
    the consumer to decide which product is best.
    Also known as an Environmental Product
    Declaration.

55
The GC Toolkit - Environmental Principles
Reporting and Communications Tools
Environmental Labelling Programmes 
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