Sustainability Management

Environmental Management II KTH, Chemical Engineering and Technology Industrial Ecology April 18, 2008 Sustainability Management Magnus Enell Öhrlin...
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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!