All about CSR


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Workshop presentation - Opening Meeting (Speakers: Gwenaëlle Terras - Eric May)

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All about CSR

  1. 1. CITIZEN ACT Opening Meeting Workshop: All about CSR! 2nd February 2011 Gwenaëlle Terras
  2. 2. CITIZEN ACT QUIZZ I : How much money is allocated to the market linked to the environment in the world? Definition : The market linked to the environment include all goods and services linked with this sector : renewable energies, improvement energetic housing conditions efficiency, recycling and management of wastes 1/ 590 billions of dollars 2/ 35 billions of dollars 3/  1370 billions of dollars Answer 3 : 1370 billions of dollars. .
  3. 3. CITIZEN ACT QUIZZ II : How much will this sum represent in 2020  : 1/ It will remain the same 2/ It will double 3/ It will decrease Answer 2 : It will double The market linked to environment may double by 2020 and reach a sum of 2740 billions of dollars. It will generate millions of jobs according to the report of UNEP (United Nations Environmental Programme).
  4. 4. CITIZEN ACT QUIZZ III : What are the Equator Principles ? 1/ Crossing the Equator line 2/ A law implemented in Equator 3/ 10 principles established by financial institutions to evaluate and manage environmental and social issues linked to the financing of project Answer 3 : 10 principles established by financial institutions to evaluate and manage environmental and social issues linked to the financing of project
  5. 5. CITIZEN ACT QUIZZ IV: What is the average percentage of disable people in a country? 1/ 10% 2/ 15% 3/ 8% Answer 1 : 10%
  6. 6. CITIZEN ACT QUIZZ V: How much money is allocated to Socially Responsible Investing in the world in 2010? 1/ 2,8 billion euros 2/ 15,6 billion euros 3/ 39,2 billion euros Answer : 15,6 billion euros allocated against 7,4 billion euros in 2008
  7. 7. Table of contents1. A day in my life of CSR expert2. Definition3. CSR and business4. CSR and banking industry5. What are the Equator principles6. Société Générale and CSR7. Examples of implemented actions8. Case study
  8. 8. About me… A day in my life of CSR Expert!
  9. 9. DefinitionCorporate Responsibility is a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis SOCIAL Equitable ECONOMIC SUSTAINABLE Liveable Viable ENVIRONMENTAL "Sustainable development is development that meets the needs of the presentwithout compromising the ability of future generations to meet their own needs." (Brundtland report, « Our common Future »)
  10. 10. CSR and banking industryWhat are the specific challenges facing the bank? Maintaining consumer confidence, ensuring the sound functioning of financial and economic systems, contributing towards lasting economic and social development Transparency of the activity Clear, accessible, exhaustive information: rates, clauses, etc. Transparency Better understanding of the banking sector and its activities (e.g. tax havens, etc.) Use of funds: what exactly do banks do with their customers money? Standards with Bâle II and Bâle III The human capital factor: HRM and CSR Ethics and CSR: the aftermath of the financial crisis Clients’ Clients’ management management Tailored, ‘personalized’ advice Fair treatment Ensuring the delicate balance that ensures a win-win situation for both bank and customer: is the bank acting in my best interests? Access to and exclusion from banking services Over-indebtedness versus over-cautiousness… Responsibility Responsibility in the investments and financing activities Does the bank offer "green" and/or charity products (that have a positive impact on society) and does it contribute towards the creation of a "green" economy? Does the bank finance (and invest in) activities, projects or businesses that have a negative impact (dirty money, cluster bombs, etc.)?
  11. 11. Société Générale and CSR5 core priorities1. a quality approach focused on the customer and a constant concern for their satisfaction;2. a robust system of corporate governance, which is continually being adapted to the requirements of society;3. increasingly robust internal control processes and risk management;4. a comprehensive compliance policy and the application of ethical values, helping to ensure our long-term performance;5. a culture of innovation and a collective innovation programme designed to encourage employees to contribute to the Group’s development.
  12. 12. Société Générale and CSRHow does Société Générale implement CSR:1. Equator Principles’ implementation (GLFI/EME)2. Sustainable banking (Green Finance/ fair trade financing / E&S criterias…)3. Carbon market (ORBEO)4. SRI5. Supportive products and solidarity-based products6. Facilitate the access to banking services (BDDF)7. Support to the creation of a company8. Micro-finance9. A responsible management: our HR policy
  13. 13. Société Générale and CSR • Signature of the Global Compact in 2003 A joint commitment by a group of companies, UN institutions and civil society focused around universal principles : human rights, labour standards, environment • OECD guidelines for enterprises Voluntary principles and standards for responsible business practices: publication of information, anti-corruption measures, taxation, social relationships, consumer protection… • Signatory of the statement by financial institutions on the environment and sustainable development (UNEP-FI) (2001) Unique international partnership between the United Nations Programme for the Environment and the private banking sector. • Signatory of the Carbon Disclosure Project (CDP) since 2006 A Rockefeller Philanthropy Advisors initiative supported by the United Nations Programme for the Environment.
  14. 14. Société Générale and CSR • Adoption of Equator Principles in 2007 Principles relating to project finance based on the policies and directives of the World Bank and IFC (International Finance Corporation). • Diversity Charter in France Signed in November 2004 alongside 40 major enterprises March 2007: Société Générale received the Professional Equality Label • SGAM Paris signatory of Principles for Responsible Investment (PRI) in 2006 Integration of environmental, social and corporate governance issues in the investment decision-making process • Founding member of the Wolfsberg group in 2000 Global anti-money laundering guidelines • Participation in market working groups (Orse, EpE, Medef, Afep…)
  15. 15. What are the Equator Principles?•Equator Principles are : “a financial industry benchmark for determining, assessingand managing social & environmental risk in project financing”• Launched in 2003 by ten international banks, EPs have now become a globalstandard for project finance•EPs provide a framework for the environmental and social evaluation of projects:compliance with IFC social & environmental policies and quantitative environmentalguidelines (outside High Income OECD countries)• A voluntary agreement, but “Equator has teeth”: Adopters agree that they “will notprovide loans directly to projects where the borrower will not or is unable to comply withour environmental and social policies and procedures”.• November 2010, EP has been adopted by around 70 banks
  16. 16. What are the EPs requirements ? (1/3)  Project financing (non recourse) with project costs > 10MUSD  Project financings covering new, expansion or upgrade of existing Scope projects which significantly change the nature or degree of existing impact  Screen the level of social & environmental risk associated with all applicable project financings and assign a risk category:  Category A – Projects with potential significant adverse social or environmental impacts that are diverse, irreversible or unprecedented How ?  Category B – Projects with potential limited adverse social or environmental impacts that are few in number, generally site- specific, largely reversible and readily addressed through mitigation measures  Category C – Projects with minimal or no social or environmental impacts
  17. 17. What are the EPs requirements ? (2/3)  For projects in high-income OECD Countries: Comply with assessment processes, requirements and standards of local regulationsHow ?  For projects in non-OECD, and those in OECD but not high- income countries:and • In addition to compliance with local regulations (or as requiredWhere ? by local regulations), complete a Environmental and Social Impact Assessment (ESIA) • ESIA has to reflect IFC Performance Standards and IFC Environmental Health and Safety Guidelines (IE review and gap analysis) • Measures to be implemented to ensure compliance will be structured in an Environmental and Social Action Plan (ESAP) • The ESAP will be covenanted to the loan documentation
  18. 18. What are the EPs requirements ? (3/3) • Environment & Social issues covered by the standards : -Community: Health, Safety, Resettlement, Indigenous people, Cultural property… -Environment: Ecology, Biodiversity and Natural habitats, EfficientWhat ? use of natural resources, Hydrology, Air, Water, Soil pollution… -Labour: Occupational Health & Safety, Child labour, Forced labour… • Consultation / Disclosure -At the project level: consultation of local communities ; for the most sensitive projects, establishment of a grievance mechanism -For each EPFI, reporting requirement: report publicly the EP implementation process and the number of projects reviewed at least annually • Independent review and monitoring for the most sensitive projects
  19. 19. Implemented action
  20. 20. Case study : LNG Project in Middle East
  21. 21. Case study : LNG Project in Middle East
  22. 22. Case study : LNG Project in Middle East
  23. 23. Case study : LNG Project in Middle East  Caractéristiques : •LNG pipeline of 320 km – 1m diameter •LNG Plant 7mt/year •Harbour •12 000 workers for construction; 1100 for operation Documentation E&S : •ESIA •ESMP + Contractor Control Management Plan •Lender’s Independent Review Follow up: •Quaterly monitoring during construction •Annualy during operation
  24. 24. Case study : LNG Project in Middle East  Construction impacts: •On terrestrial environment •On marine environment •On local population and cultural heritage Exploitation : •Air & noise emission •Wastewater effluents & Waste •Emergency Response Plan
  25. 25. Case study : LNG Project in Middle East- Coral reef transplantation  Marine ecosystem: coral reefs and a diverse fish population. Main potential construction impacts: potential increase in seawater turbidity
  26. 26. Case study : LNG Project in Middle East- Coral reef transplantation Mitigation measures: - Use of Silt Curtains - Corals transplantation to preserve corals in areas where construction impact cannot be avoided. Monitoring Process: •Daily site monitoring by marine contractors (water quality, qualitative coral conditions, etc). •Regular water quality sampling •In depth bi-monthly missions to check coral health and diversity against internationally accepted statistical criteria. •Regular monitoring missions by the Local Authorities Monitoring Team Results: overall, survival of corals one year after transplantation was 91%.
  27. 27. Contact Gwénaëlle TERRAS Société Générale Corporate Investment Banking GLFI/EME/ENV +33 (0)1 58 98 52 63