Environmental Management II KTH, Chemical Engineering and Technology Industrial Ecology April 18, 2008
Sustainability Management Magnus Enell
Öhrlings PricewaterhouseCoopers and International Institute for Industrial Environmental Economics
Who is Magnus Enell? Today, since September 2003-
• Senior Advisor, Öhrlings PricewaterhouseCoopers Oct. 2007Æ • Adjunct Professor at IIIEE. Autumn 2004Æ • Executive Director, WWF, Trade Center for Sustainable Energy Solutions. August 2007Æ • (Enell Sustainable Business AB. August 2003Æ)
Yesterday 1995-2003
(ITT Industries/IRR Flygt) • Corporate Manager for Sustainable Development • Environmental Manager
Before yesterday 60 Analys- och ratingföretag
2008-02: USD 10 trillion = 62 000 000 000 000 kr (kurs 6,20) http://www.unpri.org/signatories/
The evaluation model Management review
Policies & Strategies
Review & Continuos Improvement
Targets Implementation
Follow-up
Communication Internal/external
Planning
Indicators & Monitoring
UR I O TAS M IN D IN X U A ST VE B S R IV TO ÄR R DE N S AS GE EB SA TIN AB GE SK LO AN Y G DI A M A AU BR SW TO O E D N LI IS O R V H DE M A A TC H SS TE A B LI A S FÖ AT S O HB R L N A EN S ER IN C O A G SS S PC PA AN O RB DV A IK ER N K I C EN S SO N S KF EL EC A TR B B O L TR HO UX L A E L ME ST LE N RA B O ZE RG NE CA S S CA CA N V IA O S K LV AN O SK ST A N O O RA K I EN A SO
SE C
The Swedish stock market, A-list
31 companies
40
30
Medel: 22,6
20
10
0
CK ET
BE L B
C
RE
IO
BU EQ U
TR
SA
S
IT AR Y AV E AG TV E L G 4 R O (o U T I bs - P l is ET ta O E N n) AT O EL R BE EK RG T BE A M A IJ N E & BE R V HE IN XA G S C GO N RI BO N CA A RD W O M -D AT HA A LD SA EX SE RD C US O FI T NN O VE G OL U S DE NN N EB (o O bs - li HÖ sta G n) AN Ä ÅN HU S L G P A FVU I ND NN DS E X TA EF Ö D R E N EN IN G EN JM
TI
NO
The rest of the A list
23 companies
40
30
20
Medel: 11,4
10
0
Results 2008 Companies on the OMX-list 67 companies
Uppf öljning och ständig f örbättring Extern kommunikation Indikatorer och mätning
Elitserien
Division 1
Mål Policy och strategier
40 35 30 25 20
Medelvärde 19,1
15 10 5 0
Branches ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾
Banks Building and Construction Real Estate Finance Mining, Steel and Forest It and Telecom Chemistry and Pharmaceuticals Retail Medical Technology Oil and gas Manufacturing Services
Differences between branches? n
Medelvärde
Min och max
Banks Building and Construction Real Estate Finance Retail Mining and Steel Pulp and Paper Oil and gas IT and Telecom Chemistry/Pharma Medical Technology Manufacturing Services
5 3 7 7 3 4 3 2 7 2 3 17 3
16 27 12 4 9 30 37 8 11 27 13 27 15
3 - 21 24 - 29 0 - 23 0 - 7 22 - 37 22 - 40 34 - 40 0 - 15 4 - 24 17 - 36 3 - 18 12 - 38 4 - 35
Mean value
65
19
0 - 40
Best in class? Top league 9 Mining, Steel, Pulp and Paper
2nd league 9 Retail, Manufacturing, Building and Cosntruction, Cemistry and Pharma
4th leauge 9 Banks, Services, Medical Technology, Real Estate, IT and Telecom
The very bottom 9 Oil and gas, Finance
A new way of looking at things and problems!
Rationalism
Naturalism
Humanism
Communication and Reporting
What is important? The Company What do they want and how can we influence them?
Communication and dialogue The Stakeholders
What do they do and how can we influence them?
Global Reporting Initiative (GRI)
Why do I talk about GRI? GRI was started autumn 1997 (by CERES) I was board member Dec. 1997-Jan. 2001 ITT Flygt was one of 21 pilot testers of the first version of the GRI’s Guidelines (March 1999) I'm a member of the Stakeholder Council, since March 2002. Also a member of two working groups (Communication and G3)
Why sustainability reporting? Strengthen the linkages between environmental, social and economical aspects. Simplify for report readers to compare Today, environment is stronger connected to the financial market than before. (example - environmental, social and ethical funds) Improve and another part of marketing! Avoid legislation! Voluntary initiatives better! Continue to be proactive! Etc.
The GRI Guidelines
G 3 - Table of Contents Preface Introduction 9 Overview of Sustainability Reporting
Part 1 9 Defining Report Content, Quality and Boundary
Part 2 9 Standard Disclosures • Strategy and Profile • Economic • Environmental • Social
General Reporting Notes
Number of indicators? Performance Economy Environment Social Sum
Core Additional Totalt 7 2 9 17 13 30 25 15 40 49 30 79
Incremental The structure and criteria is now ready
+ +
+ C
B
A
External verification gives the +
Use the web!
www.globalreporting.org All participation and active engagement in the GRI work is through Internet
”Connected thinking” between Global Compact & GRI >3 000 companies (35 Swedish) have signed the Global Compact The companies shall report their improvements with a Communication on Progress (COP) Global Compact is the commitment and GRI is the reporting format
CONCLUSIONS
Why do more than necessary? Generate profit for the owner(s) Decrease expenses saves money! Employees positive response productivity up Attractive employer first choice Risk handling avoid problems and media Important part of marketing often free Brand name administer & improve image Ethics/morals as important for companies as for the society in general Social equals and human rights, mobbing, salaries…. Social responsibility as important for companies as for single people
Company’s main purpose Generate value for the owner(s) ¾Traditional production and sales • Which means traditional business economy
¾New types of products and functions ¾New customer segments ¾New sales argument • E.g. sustainable products and services
¾Positive economic steering tools
Environmental and CSR work – a success factor? Advantages with a successful work can be expressed in; 1. Increased attractivety on the market 2. Decreased costs and increased effectiveness 3. Better control of the own work
1. Increase attractivety on the market ….. New customers Satisfied customers comes back Increased trustability gives new possibilities in marketing Increased attractivity on the stock market, by banks, investors, insurance companies, etc.
2. Decreased costs and increased effectiveness… A more effective usage of energy and materials Decreased risks Easier to attract competent personnel on the market Improved motivation and satisfaction by the personnel
3. Better control of the own work….. Improved contacts with authorities Easier to follow laws, regulations, licences etc. Improved possibilities to fulfil future laws, regulations, licences, etc.
THANK YOU!