Responsible Electronics: Human Rights Symposium - presentations

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Presentations from the EICC's Responsible Electronics: Human Rights Symposium, March 19-20, 2014 in Brussels.

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Responsible Electronics: Human Rights Symposium - presentations

  1. 1. Photo courtesy of Edwards, Ltd. Sponsor: Exhibitors:
  2. 2. Program Highlights Wednesday 9:00 a.m. – 12:00 p.m. General sessions 12:00 p.m. – 1:30 p.m. Lunch 1:30 p.m. – 4:30 p.m. General sessions 4:30 p.m. – 5:30 p.m. Breakout sessions 5:30 p.m. – 7:30 p.m. Beers with VAP (EICC members only)
  3. 3. Program Highlights Thursday 7:30 a.m. – 9:00 a.m. Networking roundtables (includes light breakfast) 9:00 a.m. – 11:30 a.m. General sessions 11:30 a.m. – 1:00 p.m. EICC Ignite/lunch (EICC members only) 1:00 p.m. – 5:00 p.m. EICC Membership Meeting (EICC members only)
  4. 4. Happy 10 Years, EICC! •  It’s our 10th birthday! •  Participate in our “EICC memories” video sessions here in Brussels •  Watch for the video montage, including EICC memorabilia in at our September conference in San Francisco •  Have memories to share? Contact Julie Schindall
  5. 5. CHRISTINE BRISCOE Manager of Member Compliance Tools & Training BILLY GRAYSON Program Director MICHAEL ROHWER Program Director KATIE SULLIVAN CFSI Audit Program Coordinator ROB LEDERER Executive Director ALEJANDRA GARZA Member Services Manager JULIE SCHINDALL Director of Communications & Stakeholder Engagement STEVE MOLONEY Chief Financial Officer MEET THE TEAM
  6. 6. EICC New Strategic Direction
  7. 7. 0 10 20 30 40 50 60 70 80 90 100 2009 2010 2011 2012 2013 2014 # Didn't Renew 6 0 2 3 2 0 # New Members 5 16 9 14 8 8 Total 44 60 67 78 84 92 EICC Member Growth
  8. 8. Photo courtesy of Edwards, Ltd. Sponsor: Exhibitors:
  9. 9. NEW BOARD Tim Mohin, AMD (Chair) Kathleen Shaver, Cisco (Vice Chair) Deborah Albers, Dell" Tonie Hansen, nVidia Hamlin Metzger, Best Buy Bob Mitchell, Hewlett Packard Bruce Klafter, Flextronics (replacing Seb Nardecchia) " Judy Wente, Intel Corporation" Andy Cuthbert, Western Digital " Melinda Painter, Blackberry" Kevin Caffey, Qualcomm" John Gabriel, IBM Corporation (Immediate Past Chair)"
  10. 10. Status •  2012 – New governance strategy •  2013 – Implement governance strategy – Develop organizational strategy •  2014 – Mature professional staff model – Implement organizational strategy
  11. 11. •  Code review •  Stakeholder advisory committee •  Working hours task force •  Student labor task force •  UN Guiding Principles on Business and Human Rights •  Transparency Task Force •  CFSI In Play
  12. 12. On the horizon •  Meeting in China – last half of June in Shenzhen – Theme: Managing today’s workforce – evolving expectations – Educate and partner with government officials – Work with EICC members in the field •  Fall meeting in San Francisco – October
  13. 13. •  What we do is important: •  Our success makes the world better •  Our organization is unique •  There is HUGE potential for growth •  I am honored to lead this organization Last Words
  14. 14. Tim.Mohin@AMD.com
  15. 15. Photo courtesy of Edwards, Ltd. Sponsor: Exhibitors:
  16. 16. Business  and  Human  Rights   Protect,  Respect  and  Remedy     Responsible  Electronics  Human  Rights  Symposium   Brussels  19  March  2014   Ms.  Lene  Wendland   Adviser  on  Business  and  Human  Rights   Office  of  the  UN  High  Commissioner  for  Human  Rights    
  17. 17. Human rights and business: the links Emblematic cases demonstrating that companies can affect human rights negatively
  18. 18. Human rights and business – the challenge States fail legal duty to protect   “Permissive space” Abusive practices, corruption, complicity Multinational and national companies   International human rights law: not addressing responsibility of business   “Protection and accountability gap”  
  19. 19. UN  Response  2005-­‐2011   •  Human  Rights  Council  mandates   o  Iden%fy  and  clarify  standards  of  Corporate  Responsibility   o  Clarify  role  of  States   o  Provide  guidance  on  the  implementa%on  of  the  Protect,   Respect,  Remedy  Framework   22   2005 Deadlock SRSG appointed 2008 Breakthrough Protect, Respect, Remedy   2011 Culmination Guiding Principles endorsed by HRC   John  Ruggie   Special  Representa%ve  of  the  UN   Secretary-­‐General  (SRSG)  
  20. 20. Development  of  the  Guiding   Principles   •  Principled  pragma4sm:  “to   reduce  corporate-­‐related   human  rights  harm  to  the   maximum  extent  possible  in  the   shortest  possible  period  of   Mme”   •  Evidence-­‐based:  extensive   research,  47  mulMstakeholder   consultaMons  (by  2011),   including  extensive  involvement   of  business  
  21. 21. WHAT  to  Do  –  3  Pillar  Framework   24   •  Policies   •  RegulaMon   •  AdjudicaMon   State  Duty  to  Protect   •  Act  with  due  diligence  to  avoid  infringement   •  Address    adverse  impacts  on  human  rights   Corporate  Responsibility  to  Respect   •  EffecMve  access  for  vicMms   •  Judicial  and  non-­‐judicial   Access  to  Remedy  
  22. 22. HOW  to  Do  –  Guiding  Principles   25   •  Unanimously  endorsed  by  the  UN  HRC  (HRC  resoluMon  17/4)   –  strong  government  foundaMon   •  Endorsed  by  leading  business  organisaMons,  individual   companies,  trade  unions,  civil  society   •  AuthoritaMve  global  reference  point:  provide  overarching   standard  and  benchmarks  for  acMon  and  accountability   •  Structured  on  the  three  pillars   •  31  Principles  –  14  to  business  –  to  implement  the  Framework  
  23. 23. Key  features  of  the  GPs   26   •  All  States.   •  All  companies,  of  all  sizes,  in  every  sector,  in  any  country.   •  DisMnct,  but  complementary  responsibility  between  States   and  companies   •  No  new  legal  obligaMons  –  but  elaborate  on  implicaMons  of   exisMng  obligaMons  and  pracMces  for  States  and  business.   •  Do  no  preclude  internaMonal  or  naMonal  legal  developments   •  Contains  “smart  mix”  of  regulatory  and  voluntary  approaches   •  Human  rights  cannot  be  offset:  doing  good  in  one  aspect   cannot  compensate  human  rights  harms  elsewhere.  
  24. 24. Corporate  Responsibility  to  Respect   27   Respect:  Do  no  harm  and  address  impacts   Scope:  all  rights   Avoid  causing/contribuMng  +  prevent/miMgate   negaMve  impacts  by  business  relaMonships   Apply  to  all  companies   ImplicaMons:  Policies  and  processes  
  25. 25. How can business be involved in adverse human rights impacts? How can business be involved in abuses?
  26. 26. Be  ProacMve  –  ‘Know  &  Show’   29   Due  diligence  to  idenMfy,  prevent,   miMgate  and  account  for  how   impacts  are  addressed.  4  elements:   1.  Assessing  impacts   2.  IntegraMng  and  acMng  on   findings   3.  Tracking  responses   4.  CommunicaMng  on  impacts   •  Taking  all  necessary  and   reasonable  precauMons  to  prevent   harm     •  Should  cover  impacts  caused  or   contributed  to  through  acMviMes  or   relaMonships   •  Varies  according  to  size,  risks,  and   context   •   On-­‐going   StarMng  Point:  Policy  Commitment  
  27. 27. Convergence  in  global  frameworks  and  standards   UN  Framework  &  GPs  
  28. 28. •  ResoluMon  17/4   –  Discuss  trends  and  challenges  in  implementaMon   of  UNGPs.   –  Promote  dialogue  and  cooperaMon  on  business   and  human  rights.   •  Under  guidance  of  the  Working  Group.   •  Open  to  all  relevant  stakeholder  groups:  Including   States,  business,  civil  society,  affected  individuals   and  groups  and  other  relevant  stakeholders.   B&HR Forum
  29. 29. Photo courtesy of Edwards, Ltd. Sponsor: Exhibitors:
  30. 30. www.oeko.de Status & Trends of CSR in Europe Examples from the electronics industry Andreas Manhart Brussels, 19.03.2014
  31. 31. 34 www.oeko.de Our Profile Oeko-Institut is a leading European research and consultancy institute working for a sustainable future. Status & Trends of CSR in Europe│Manhart│EICC Brussels│19.03.2014 ●  A non-profit association founded in 1977 ●  Offices in Freiburg, Darmstadt and Berlin ●  Clients: European Union, national and state-level ministries, companies, foundations and non-governmental organizations
  32. 32. 35 www.oeko.de Staff numbers at a glance ●  staff 2012 reference value Status & Trends of CSR in Europe│Manhart│EICC Brussels│19.03.2014
  33. 33. 36 www.oeko.de Focuses of our research Energy and climate protection (e.g. energy scenarios, emissions trading, renewable energies, grid integration) Nuclear engineering and facility safety (assessment of nuclear power plants, concepts for repositories) Sustainable consumption (product rating and development: Eco-design Directive, LCAs, carbon footprints, product sustainability assessments (PROSA), EcoTopTen) Mobility (e.g. national transport data, e- mobility) Resource management and industry (e.g. rare earth elements, urban mining, IT recycling) Status & Trends of CSR in Europe│Manhart│EICC Brussels│19.03.2014
  34. 34. 37 www.oeko.de Focuses of our research Companies (advice and organizational development for sustainability in management, production, technology development) Law, policy and governance (draft laws, IMPACT CSR) Immission control and radiation protection (e.g. rare earth elements, urban mining, IT recycling) and technology assessment (e.g. implementation of REACH, RoHS, evaluation of nanotechnologies) Chemical management Sport and Cultural events (environmental concepts for major events…) Status & Trends of CSR in Europe│Manhart│EICC Brussels│19.03.2014
  35. 35. 38 www.oeko.de Definition of CSR Voluntary measures CSR Regulatory requirements The impact matters ! Status & Trends of CSR in Europe│Manhart│EICC Brussels│19.03.2014
  36. 36. 39 www.oeko.de Specific greenhouse-gas emission of the German electricity mix Some observations on the impact of voluntary CSR Many targets are not ambitious enough Status & Trends of CSR in Europe│Manhart│EICC Brussels│19.03.2014
  37. 37. 40 www.oeko.de Some observations on the impact of voluntary CSR The impacts have found to be limited Christoph Brunn Phone: +49-6151/8191-128 Email: c.brunn@oeko.de •  Voluntary CSR-activities have a measurable positive impact. But this impact is not sufficient to achieve policy goals related to sustainable development. •  This finding is supported by a comparable study by Accenture. Status & Trends of CSR in Europe│Manhart│EICC Brussels│19.03.2014
  38. 38. 41 www.oeko.de Some observations on the impact of voluntary CSR Backlashes in the last years: -  The Rana Plaza Collapse -  The Chinese suicide series These events massively eroded trust in voluntary CSR measures Status & Trends of CSR in Europe│Manhart│EICC Brussels│19.03.2014 Source: http://commons.wikimedia.org/wiki/File:Dhaka_Savar_Building_Collapse.jpg, CC-BY Rijans (http://www.flickr.com/people/40831205@N02)
  39. 39. 42 www.oeko.de Sustainability issues for the electronics industry Energy efficiency Hazardous substances Short life-times Env. impacts in production (non-OECD) Social impacts minerals Working conditions manufac- turing Crude Recycling (e.g. Ghana) Losses of critical metals RoHS REAHh WEEE Ecodesign Battery Directive (battery removability) + Univers. charging interfaces WEEE II WEEE II (reversed burden of prove) Forthcoming Green: Predominantly associated with environmental impacts Red: Predominantly associated with social impacts Impacts outside EU jurisdiction (supply-chain + reverse supply-chain issues) Impacts mostly within EU jurisdiction (mostly product related issues) Status & Trends of CSR in Europe│Manhart│EICC Brussels│19.03.2014
  40. 40. 43 www.oeko.de Regulatory responses Energy efficiency Hazardous substances Short life-times Env. impacts in production (non-OECD) Social impacts minerals Working conditions manufac- turing Crude Recycling (e.g. Ghana) Losses of critical metals RoHS REAHh WEEE Ecodesign Battery Directive (battery removability) + Univers. charging interfaces WEEE WEEE II (reversed burden of prove) Forthcoming Status & Trends of CSR in Europe│Manhart│EICC Brussels│19.03.2014
  41. 41. 44 www.oeko.de Trying to look into the future: Supply-chain related issues ●  The due diligence concept well reflects the public opinion that companies – while not being fully responsible for all activities of their suppliers – have the moral responsibility to have a close look and to improve hot spots. ●  Moral responsibilities are often turned into legal responsibilities (examples: EU Timber Regulation & planned Conflict Mineral Regulation) Recommendation ●  Consider this trend as a chance to get clarity on expectations! Status & Trends of CSR in Europe│Manhart│EICC Brussels│19.03.2014
  42. 42. 45 www.oeko.de Trying to look into the future: Product related issues ●  Political pressure to improve recycling and recyclability of products (e.g. driven by agendas on resource-efficiency) ●  Debate on “planned obsolescence” ●  The limited scope of regulatory approaches is mostly due to the absence of measurable, enforceable and effective requirements. ●  One exemption: The battery recycling issue. Status & Trends of CSR in Europe│Manhart│EICC Brussels│19.03.2014
  43. 43. 46 www.oeko.de The design of devices can be very important: Taking out the battery: Only few seconds available - Otherwise economically not possible ●  Recycling is getting more difficult. The battery recycling issue Status & Trends of CSR in Europe│Manhart│EICC Brussels│19.03.2014
  44. 44. 47 www.oeko.de The battery recycling issue Some background on Li-Ion batteries: ●  Li-Ion batteries contain ~ 13.8 % cobalt. ●  Cobalt is on the EU list of critical metals ●  25 % of the world’s cobalt production is used for rechargeable batteries of mobile electronic devices. ●  There is 1 smelter in the EU capable of recycling cobalt from Li- Ion batteries. Status & Trends of CSR in Europe│Manhart│EICC Brussels│19.03.2014
  45. 45. 48 www.oeko.de X The battery recycling issue Status & Trends of CSR in Europe│Manhart│EICC Brussels│19.03.2014
  46. 46. 49 www.oeko.de Trying to look into the future: Product related issues ●  […] Recommendations ●  Proactively address this battery issue ●  Proactively address the obsolescence debate (e.g. by offering very durable products → independent verification needed) ●  Continue your path on energy-efficiency & hazardous substances. Status & Trends of CSR in Europe│Manhart│EICC Brussels│19.03.2014
  47. 47. 50 www.oeko.de General recommendation: ●  Concerted positive activities and flagship products are needed ●  is amazingly successful. ●  Competition for the most sustainable product & producer. ●  Positive marketing needs to be based on independent criteria. Status & Trends of CSR in Europe│Manhart│EICC Brussels│19.03.2014
  48. 48. www.oeko.de Thank you for your attention! Andreas Manhart Öko-Institut e.V. Phone: +49 89 125900-77 E-Mail: a.manhart@oeko.de
  49. 49. Photo courtesy of Edwards, Ltd. Sponsor: Exhibitors:
  50. 50. Social Europe EICC – Responsible Electronics 2011 Communication on CSR By Sue Bird DG Employment, Social Affairs and Inclusion Brussels, 19 March 2014
  51. 51. Social Europe A New Departure in CSR •  Things have moved on since 2006 •  Response to the crisis •  New opportunities
  52. 52. Social Europe Why a New Communication on CSR? •  … In the interests of enterprises: •  - Competitiveness •  - Anticipation •  - Trust •  … and society: •  - Europe 2020 •  - Public services •  - Employment •  - Ethics
  53. 53. Social Europe Progress in CSR within the EU since 2006 •  Transnational company agreements from 79 (2006) to 140 (2011) •  EU enterprises in UN Global Compact from 600 (2006) to 1900 (2011) •  Business Social Compliance Initiative Membership from 69 (2007) to 700 (2011) •  European enterprises following Global Reporting Initiative from 270 (2006) to 850 (2011) •  Environmental Management and Audit Scheme (EMAS) registration from 3300 (2006) to 4600 (2011)
  54. 54. Social Europe …But more to be done •  Balanced multi-stakeholder approach •  Clarify what is expected of enterprises •  Promote market reward •  Self and co-regulation •  Transparency •  Human rights
  55. 55. Social Europe A New Definition of CSR •  The responsibility of enterprises for their impact on society •  Respect for legislation, collective agreements •  Maximise shared value •  Identify/prevent/mitigate adverse impacts •  New legislation not excluded
  56. 56. Social Europe CSR as Multi-dimensional •  Human rights •  Labour and employment (training, diversity, gender equality, health and wellbeing) •  Environment (biodiversity, climate change, resource efficiency, life cycle assessment, pollution prevention) •  Bribery and corruption •  Consumer interests and privacy •  Volunteering •  Tax governance
  57. 57. Social Europe Actions - Visibility •  Dialogue on employability, demographic change, active ageing, workplace challenges - Seminar on youth, entrepreneurship, volunteering and CSR •  Sectoral approaches •  CSR Europe - Enterprise 2020 •  Commission intentions: sectoral multi- stakeholder platforms, award scheme
  58. 58. Social Europe Actions - Trust •  Irresponsible behaviour/exaggeration •  Insufficient understanding by companies and consumers •  Commission intentions: Ø “Greenwashing" and stepping up enforcement of the Unfair Commercial Practices Directive Ø Debate on business in the 21st century, surveys of citizens trust
  59. 59. Social Europe Actions - Self and Co-Regulation •  Promoting responsibility through accountability •  Commission intention: code of good practice for commitments, performance indicators, monitoring and review
  60. 60. Social Europe Actions - Market Reward •  Consumption (information….) •  Public procurement •  Investment (invest for the longer-term) •  Commission intentions: Ø Review public procurement Directives – adoption foreseen March 2014 Ø Requirement to inform on responsible investment criteria used
  61. 61. Social Europe Actions - Company Disclosure •  Engagement with stakeholders/risk management/ accountability •  Member States, GRI, IIRC initiatives •  Legislative initiative from Commission April 2013
  62. 62. Social Europe Actions - Education, Training and Research •  Education establishments to integrate CSR, sustainable development, responsible citizenship into curricula •  Horizon 2020 - building the European Research Area •  Commission intention: financial support through education programmes and awareness-raising among educational professionals and companies
  63. 63. Social Europe Actions - National and Sub-national CSR Policies •  Commission intention: peer review mechanism with Member States •  Commission invitation: Member States to update their own plans
  64. 64. Social Europe Actions - Aligning European and Global CSR •  Internationally-recognised principles and guidelines (OECD Guidelines, ILO Tripartite Declaration, ISO 26000, UN Global Compact) Ø Commission intention: monitor commitments made by major European enterprises Ø Commission invitations: 1) large European companies to make a commitment to at least one standard, 2) European-based multinational enterprises to commit to ILO Declaration
  65. 65. Social Europe Actions - Aligning European and Global CSR (continued) • UN Guiding Principles on business and human rights Ø Commission intentions: 1) sectoral and SME guidance, 2) report on EU priorities in implementation of GP Ø Commission expectations/invitations: 1) all European enterprises to respect human rights, 2) Member States to develop national plans for implementation of GP Ø New: possible initiative on responsible sourcing of minerals originating in conflict-affected/high-risk areas. Public consultation undertaken
  66. 66. Social Europe Actions - Aligning European and Global CSR (continued) •  Relations with other countries and regions ─  Accession ─  Trade and other dialogues ─  Development policy Ø Commission intention: identify ways to promote responsible business in sustainable growth initiatives in third countries
  67. 67. Social Europe And finally… •  Commission report and review meeting mid-2014 •  Open invitation to business leaders to foster more responsibility - targets for 2015 and 2020
  68. 68. Social Europe Photo courtesy of Edwards, Ltd. Sponsor: Exhibitors:
  69. 69. EICC Conference 2014 Brussels, The State of CSR in Europe EICC Conference 2014 Brussels, The State of CSR in Europe
  70. 70. EICC Conference 2014 Brussels, The State of CSR in Europe ELEVATE  by  Numbers   300factory improvement engagements, Improving performance for management and conditions for workers 6,400factories using ELEVATE developed e-learning lessons 10,000+ attendees of ELEVATE seminar and webinar training 4,000+factories assessed annually across 25 countries 100,000+ workers impacted annually EICC Assessment Firm & Partners with the IDH on “Electronics Programme”
  71. 71. EICC Conference 2014 Brussels, The State of CSR in Europe You can’t force change….. …… but you can force bad behaviour. Philosophical Point We Are Constantly Aware of
  72. 72. EICC Conference 2014 Brussels, The State of CSR in Europe The Good and the Bad of CSR Some very GOOD Some very BAD Some very UGLY Everyone still searching for a “magic” solution There is no one single approach that works !
  73. 73. EICC Conference 2014 Brussels, The State of CSR in Europe •  Still compliance driven & does not look at root cause •  CSR teams still isolated from core business function •  CSR still perceived as a cost rather than a business function needing investment •  Complex & diverse supply chains What Are The Challenges?
  74. 74. EICC Conference 2014 Brussels, The State of CSR in Europe •  Immature management systems in supply chains •  Cheap labour prevents investment in better efficiencies •  Low cost labour contributes to the idea that workers are commodities and easily replaceable. What Are The Challenges?
  75. 75. EICC Conference 2014 Brussels, The State of CSR in Europe •  80% still spent on assessments •  20% projects / training / capacity building Why ? •  Don’t know what else to do •  Only concerned about due diligence •  Compliance still the main driver for change Common Approaches
  76. 76. EICC Conference 2014 Brussels, The State of CSR in Europe •  Segmented Approach •  Measuring Business & Social Performance •  Focus on ROI •  Investor & Stakeholder Involvement Trends We Are Seeing
  77. 77. Segmented Approach Don’t  Use  The  Same     Brush  
  78. 78. EICC Conference 2014 Brussels, The State of CSR in Europe Segmented Approach
  79. 79.   What  gets  measured   gets  managed   Measuring Business & Social Performance
  80. 80. EICC Conference 2014 Brussels, The State of CSR in Europe •  Don’t’ measure compliance results….. that’s the output •  Measure operational and business performance NOT just social For OT & wage gaps….. measure Productivity / Re-work / New starters Just monitoring working hours tells you little about root causes What Should Be Measured?
  81. 81.       You can influence through showing benefits Focus on ROI
  82. 82. EICC Conference 2014 Brussels, The State of CSR in Europe From Compliance Cost to ROI •  Non compliances issues viewed separately from the business. As such, it is seen only as a cost with the primary benefit being retaining the business. •  Our experience has shown that compliance problems tend to be indicators of wider business issues. •  Factory business has been built around cheap labour. •  The labour shortage and increase in labour costs are forcing factories to change their thinking and focusing on fewer but more productive workers.
  83. 83. EICC Conference 2014 Brussels, The State of CSR in Europe Money talks ! Investor & Stakeholder Involvement
  84. 84. EICC Conference 2014 Brussels, The State of CSR in Europe Realisation of the impact on share price due to social issues Unpaid legal wages in a supply chain can be enormous and impacts profits We are seeing investors taking CSR as a higher priority in valuing portfolios. This pushes it up the agenda Investor Involvement
  85. 85. EICC Conference 2014 Brussels, The State of CSR in Europe •  Analyse the business case…does it exist….if not be realistic on level of change •  Supply chain consolidation & increase leverage •  Take ownership of supply chain •  Measure & monitor the relevant business performance indicators •  Realistic and sustainable improvements •  Worker engagement Maintaining The Right Environment For Change
  86. 86. EICC Conference 2014 Brussels, The State of CSR in Europe Cecilia Berntsson Senior Manager, Projects +44 (0) 20 7993 5277 cberntsson@elevatelimited.com James McMichael Partner jmcmichael@elevatelimited.com Ian Spaulding Senior Partner ispaulding@elevatelimited.com Justin Bettey European Director +44 (0) 20 7993 5277 jbettey@elevatelimited.com
  87. 87. Social Europe Photo courtesy of Edwards, Ltd. Sponsor: Exhibitors:
  88. 88. WORKER MANAGEMENT COMMUNICATIONS PANEL
  89. 89. Worker – Management Communications Panel •  Doug Cahn, The Cahn Group, moderator •  Jenny Holdcroft, IndustriALL Global Union •  Cimarron Nix, Hewlett-Packard •  David Foust, Center for Labor Reflection and Action
  90. 90. Communication Theory
  91. 91. UN Guiding Principles on Business and Human Rights •  Legitimate •  Accessible •  Predictable •  Equitable •  Transparent •  Rights compatible •  A source of continuous learning •  Based on engagement and dialogue Effective Grievance Principles
  92. 92. Worker-management communications Jenny Holdcroft Policy Director IndustriALL Global Union
  93. 93. 96 •  Worker-management communication •  Worker representation •  Grievance mechanisms
  94. 94. 97 These rights are included in all three instruments that comprise the International Bill of Human Rights: •  The Universal Declaration of Human Rights (Article 23) •  The International Covenant on Civil and Political Rights (Article 22) •  The International Covenant on Economic, Social and Cultural Rights (Article 8) These are elaborated by the ILO in: •  ILO Convention No. 87 (Freedom of Association and Protection of the Right to Organise) •  ILO Convention No. 98 (Right to Organise and Collective Bargaining). These are included in the ILO Declaration on Fundamental Principles and Rights at Work, meaning that all ILO member states must respect, promote and realise them even if they have not ratified them How are these addressed through international human rights standards? Through the right of workers to form or join trade unions and bargain collectively
  95. 95. 98 Have the same status as all other human rights: eg to life, education, liberty, equality before the law, freedom of speech, etc. Where these rights are recognised, there’s no need for social auditing, grievance mechanisms and alternative worker-management communications systems: •  ‘Freedom of association is significant not just as a right to be respected, but also as an enabler of the process of human rights due diligence’ – Shift •  ‘Operational-level grievance mechanisms can be important complements to wider stakeholder engagement and collective bargaining processes, but cannot substitute for either. They should not be used to undermine the role of legitimate trade unions in addressing labour-related disputes, nor to preclude access to judicial or other non- judicial grievance mechanisms.’ - UNGPs •  ‘Trade union channels are a primary and preferable channel for grievance handling’ - Shift Why are these rights so important? The right of workers to form or join trade unions cannot be realised unless trade unions are permitted to exist and conduct their activities
  96. 96. 99 •  Interrogation or surveillance of workers about their support for trade unions •  Intimidation of workers •  Screening for trade union supporters during recruitment •  Creating, circulating or using “blacklists” of trade union supporters •  Dismissal of trade union supporters •  Discrimination against trade union supporters through demotions, less favourable assignments, less favourable conditions of work, reduction of wages, benefits, opportunities for training, transfers, and relocation •  Non-extension of employment contracts to trade union supporters on fixed term and temporary employment How are they undermined by companies?
  97. 97. 100 •  Interference in the decision process by which workers choose whether to be represented by a trade union •  Conducting anti-union campaigns and “union avoidance” activities, including by engaging professional consultants; •  Actively pursuing legal and administrative delays in the process by which trade unions obtain recognition; •  Isolating workers from trade union organisers/ representatives •  Surveillance of trade union activities •  Setting up alternatives to trade unions
  98. 98. 101 Adverse impacts prevalent in the electronics industry: •  failure of the state to perform its duty to protect the right •  active violation of the right by employers •  organisation of work that prevents the right from being realised Companies should establish a positive environment for workers to exercise their right to form or join a trade union and do nothing that would have the effect of discouraging workers from exercising this right Due Diligence and the right to form or join a trade union
  99. 99. 102 Companies must: •  consider how the right can be guaranteed to •  workers in Export Processing Zones •  workers with temporary fixed term contracts •  workers supplied by an agency or migrant workers •  provide facilities to enable collective bargaining to take place •  allow workers to meet with their representatives to decide their positions •  provide workers or their representatives with sufficient information to enable the workers to bargain on wages and conditions Companies must not refuse any genuine opportunity to bargain collectively Due Diligence and the right to collective bargaining
  100. 100. 103 •  undermine trade unions by negotiating directly with individual workers or by offering better terms to non-union members •  create any other structures outside of the collective bargaining relationship to deal with issues that should be dealt with by management and the trade union •  reach agreements with non-representative labour organisations in order to avoid genuine bargaining (protection contracts) •  seek to place limits on the subjects of bargaining that would restrict this right To ensure respect of the right to collectively bargain, companies should not:
  101. 101. 104 ILO Convention No. 135 (Workers’ Representatives) “(a) trade union representatives, namely representatives designated or elected by trade unions or by members of such unions; or (b) elected representatives, namely representatives who are freely elected by the workers of the undertaking in accordance with provisions of national laws or regulations or of collective agreements and whose functions do not include activities which are recognised as the exclusive prerogative of trade unions in the country concerned.” Workers’ representatives
  102. 102. 105 •  Freedom of Association protocol •  Right to Non Victimisation Guarantee •  Union access agreements Practical tools ‘Companies should establish a positive environment for workers to exercise their right to form or join a trade union and do nothing that would have the effect of discouraging workers from exercising this right’
  103. 103. 106 Agreement between buyers and local suppliers and global and local unions Covers: •  trade union recognition •  non-victimisation of trade union officers and members •  pledge by the employer not to intervene in union activities •  provision of access for union officials from outside the factory •  rights to facilities for a workplace trade union •  a duty for employers to engage in collective bargaining with the recognised trade union Freedom of Association protocol
  104. 104. 107Title (Name of company), recognises under international law, your right to join or form a union of your choice for the purposes of bargaining collectively over the wages and working conditions at this establishment. (Name of company) will not discriminate against you nor victimise you for exercising this right and will adopt a positive attitude towards any trade union organisers granted access for the purposes of talking about the benefits of trade union membership. (Name of company) also undertakes to permit the formation of an organising committee in the factory free of hindrance or interference or victimisation of the members of such a committee. Signed Signed On behalf of (company) On behalf of (trade union) Right to Non Victimisation Guarantee
  105. 105. 108 •  Establish conditions for access to the workplace for representatives of unions which have members, or workers aspiring to become members in the workplace •  Ensure that the factory’s efficient operation is not impaired by covering where, when and how the union will access the workers on site •  Include a mechanism for resolving disagreements about implementation of the agreement •  Where workers reside on the premises of the factory, company or industrial zone, make arrangements for onsite access Trade union access agreements
  106. 106. 109 ‘Open communication and direct engagement between workers and management are the most effective ways to resolve workplace and compensation issues’ -  Unsubstantiated -  Sends the message to workers that they should not join unions ‘The rights of workers to associate freely, to join or not join labor unions, seek representation, and join workers’ councils in accordance with local laws shall be respected’ -  Sends negative message on a positive right -  There is no human right to join a workers’ council -  The human right to freedom of association has precedence over local laws The ILO Conventions are not referenced The right to collective bargaining is not mentioned How does the EICC code need to change?
  107. 107. 110 ITUC-IndustriALL-UNI-CCC: The UN Guiding Principles on Business and Human Rights and the human rights of workers to form or join trade unions and to bargain collectively European Commission: ICT Sector Guide on Implementing The UN Guiding Principles on Business and Human Rights ILO sectoral meeting on temporary employment in the electronics sector, 9-11 December 2014 Resources
  108. 108. WORKER MANAGEMENT COMMUNICATION Cimarron Nix Labor, Health & Safety Program Manager Supply Chain Responsibility HP
  109. 109. CEREAL / CANIETI •  Initial dialogue between the Center for Reflection and Action on Labour Issues (CEREAL) and the National Chamber of the Electronics, Telecommunications and Information Technology Industry (CANIETI) began in 2005 facilitated by HP and CAFOD •  The partnership between CEREAL and CANIETI led to the establishment of an industry wide independent worker grievance mechanism with clearly defined escalation paths •  This grievance mechanism has contributed to a significant improvement in resolution of specific worker issues over the past several years Escalation Process 1.  Worker approaches CEREAL who will investigate worker’s grievance; 2.  CEREAL will engage factory management directly to try and work out a solution with the worker(s); 3.  If no solution is found, CEREAL will engage CANIETI to try and mediate a solution with the factory and worker(s); 4.  If still no resolution, CEREAL will escalate to brands with production in the facility 3rd Party Grievance Mechanism
  110. 110. China Worker Training •  HP introduced worker management communication training in China factories in 2008 –  Training on workers’ labor rights under Chinese law and how to improve communication and raise grievances about their working conditions –  Since 2008 we have trained over 26,000 workers and front line supervisors at 22 supplier sites •  Training is conducted by local NGO partners including Home of New Citizens and Labor Education Service Network (LESN) –  NGO partners also host independent worker hotlines for workers to raise grievances outside of factory systems Capacity Building
  111. 111. Brazil 100 Day Rapid Results Program •  Worker Engagement Program (WEP) launched in May 2013 by the Rapid Results Institute in partnership with Disney, SAI, The Cahn Institute and Labor Link •  Goal of the program was to: –  Listen to workers –  Improve health & safety in factories across São Paulo –  Establish systems to sustain improvements after program conclusion –  Form sustainable worker management social performance teams •  Project focused on one discrete issue in each factory and set a 100 day time frame for analysis and improvement Specific Topic Engagement “The workshop is very productive, and has added value both for employees and managers. The methodology is very dynamic and engaging which provides for great collaboration among the participants” “The program / project has been very good and has benefited us so much we decided to keep this group for a while and study new projects to be implemented in 100 days”
  112. 112. COMPARATIVE ANALYSIS OF THE CEREAL-CANIETI ESCALATION PROCESS FOR GRIEVANCES Center for Labour Reflection and Action (CEREAL) David Foust Rodríguez
  113. 113. Recap •  The dialogue with the electronics companies began in 2005 •  The example of the dialogue between CEREAL and CANIETI has been cited as an example of a non-judicial grievance mechanism. It is important to be aware of the nature of the dialogue and the broader context of his work to draw accurate conclusions from this experience
  114. 114. The UN Guiding Principles •  The effectiveness criteria for non- judicial grievance mechanisms listed in the UN Guiding Principles provide a helpful reference point for thinking about progress to date and identifying what needs to change •  What needs to change from the point of view of CEREAL?
  115. 115. Comparative analysis of the CEREAL-CANIETI escalation process for grievance
  116. 116. Comparative analysis of the CEREAL-CANIETI escalation process for grievance
  117. 117. Comparative analysis of the CEREAL-CANIETI escalation process for grievance
  118. 118. Thanks!
  119. 119. Questions
  120. 120. Resources •  Please see the post event websites for some materials related to this panel
  121. 121. Photo courtesy of Edwards, Ltd. Sponsor: Exhibitors:
  122. 122. SUSTAINABILITY AND IT-PRODUCTS – PROCUREMENT AND CERTIFICATION EICC Conference on Human Rights, Brussels March 19-20, 2014
  123. 123. TCO Development Owned by TCO, Swedish Confederation for Professional Employees, a non profit trade union organisation based in Stockholm, Sweden
  124. 124. From safety, ergonomic and green to sustainable IT
  125. 125. WHY DO PURCHASERS FOCUS ON SUSTAINABLE IT?
  126. 126. Risk of violation of human rights (2012)
  127. 127. A notebook production routes Source: sourcemap
  128. 128. Legislation in EU – reflects expectations from citizens and customers •  EU directive •  2004/18/EG and 2004/17/EG •  January 15, 2014 EU-parliament replaced 2004/18. •  Clarified acceptance to add social criteria and certifications into the procurement (articles 41, 15:2). •  Legislation for each EU-country •  Local legislation for federal states EU Country State
  129. 129. Legal possibilities and conditions for public procurement according to social standards – Germany (2013) German state Commitment to conduct PP according to ILO core labour standards Berlin Yes, for certain products specified through a circular by government Brandenburg Yes. can not buy products if manufacturing involves child labour Bremen Yes Hamburg Yes Lower-Saxony Yes, but no legislation yet North Rhine-Westphalia Yes Mecklenburg-Vorpommern Yes Rhineland-Palatinate Yes, can not buy products if manufacturing involves child labour Saarland Yes Saxony-Anhalt Yes Schleswig-Holstein Yes. Act about guaranteed wages and procurement (2013) Thuringia Yes Baden Württemberg No Bavaria No Hesse No Saxony No Source: Bremen/ Landmark- project
  130. 130. German example “For Bundesagentur für Arbeit it is important to be part in affecting the development of IT in general including smartphones in a sustainable direction. For us it is in line with our CSR policy to minimizing environmental impact and improving social conditions for employees in the production of smartphones. One way to realize this would be to use a certification for sustainable smartphones, like TCO Certified or equal, which includes both environmental and social criteria” Mr Berr, Responsible for IT procurement at Bundesagentur für Arbeit Estimated purchasing volume: 180.000 users
  131. 131. German example "For Rheinland-Pfalz it is important to be part in affecting the development of IT in general including smartphones in a sustainable direction. For us it is in line with our coalition agreement to minimizing environmental impact and improving social conditions for employees in the production of smartphones. One way to realize this would be to use a certification for sustainable smartphones, like TCO Certified or equal, which includes both environmental and social criteria” Mr Kexel, Responsible for IT hardware procurement at Rheinland-Pfalz Estimated purchasing volume: 30.000 users
  132. 132. Risk analysis of procurement - Possible violations of human rights in production •  SEMCo, Swedish government's expert body on environmental and sustainable procurement: - Electronic products had a high risk (report 2010) •  City of Malmö, third largest city in Sweden made a risk analysis from a human rights perspective of their purchased products (2011): - IT-products ranked 2nd highest (1st is food) •  Swedbank (private bank in Northern Europe), made a risk analysis of their purchased products (2012): - IT-products ranked 2nd highest (1st is giveaways)
  133. 133. WHY USE CERTIFICATIONS?
  134. 134. Why do purchasers use certifications? It is easy •  IT market is complex and develops quickly •  Many areas of competence needed •  Extremely difficult to follow up requirements (according to EU Law) Protect and build brand •  Media focus on IT → high risk •  Reliable third part certification
  135. 135. TCO Certified creates common rules between purchasers and brands
  136. 136. Why do brands use TCO Certified? 1.  Worldwide and complete 2.  Fast and reliable 3.  Trusted and quoted One certification to cover everything, everywhere - Make it simple!
  137. 137. THE SOCIAL CRITERIA IN TCO CERTIFIED
  138. 138. A credible way to communicate social responsibility - “Working with a third party verified program can provide brands with a credible way to communicate their social responsibility progress.” - “This is also a credible and transparent way to handle accidents and violations of human rights.” - “It is for credibility reasons that buyers choose 3rd party verified over self-declarations, which are also common among many brands.”
  139. 139. Structure and responsibility Socially responsible production •  ILO 8 core conventions, •  UN - Right of the child, •  National health & safety, minimum wage and social security law Validated through (6 steps) 1.  The agreement 2.  Code of conduct communicated in the supply chain 3.  Annual identification of tier 1 factories and their audit status 4.  Annual 3:rd party tier 1 factory audit 5.  Annual spot checks 6.  Contact person on senior management level for long term commitment
  140. 140. Be open about it – Violations occur, but we handle them in a responsible way TCO Certified requires: •  A time-limited corrective action plan improving the management system and opens up for actual improvements at the factory level •  Corrective action plans must be shared between brand and manufacturer to increase the understanding of how to implement the policies at the factory level •  A third party must assess the effectiveness of corrective action plans and share this information with the brand, manufacturer and TCO Development
  141. 141. Transparency Unique annual report on social responsibility in IT-industry First report to be launched before the summer 2014 Includes: •  Anonymous information from 17 IT-brands •  Compilation from social audits done 2012-2013 •  Compilation of used routines and management system •  Compilation of the effectiveness of corrective actions •  Statistics on non-conformances in the IT industry •  Examples of good initiatives and remaining challenges
  142. 142. Example from our report covering 17 IT-brands Health & safety Labor Laws Rights of the Child Freedom of Association Discrimination Forced Labor Number of audit criteria showing non-conformance, by category
  143. 143. Does TCO Certified create a change? ü  17 IT brands committed to work proactively ü  17 brands shared third party social audits ü  2 brands developed system for third party auditing ü  30% of IT brands revised their CoC ü  2 brands have included ILO core conventions in CoC ü  3 brands have improved communication of CoC ü  4 brands have improved handling/sharing of corrective actions ü  5 brands have identified union representatives at first tier ü  3 brands have improved work to counter union discrimination
  144. 144. Thank you for your attention! TCO Development, www.tcodevelopment.com www.tcodevelopment.de Interested in the report? Please contact us at: Niclas.rydell@tcodevelopment.com Anna.pramborg@tcodevelopment.com
  145. 145. Photo courtesy of Edwards, Ltd. Sponsor: Exhibitors:
  146. 146. The missing pieces of the jigsaw – key points 1. Public and public buyers are calling for a focus on issues in the electronics industry 2. Public sector often has policy, and combined leverage, but sometimes verification and continuous improvement are missing 3. Electronics Watch aims to combine transparency, CSO monitoring & reform
  147. 147. How Electronics Watch aims to support the work of the European public sector l  Eyes and ears of public sector on the ground – monitoring and verification l  Going 'beyond the audit' – factory improvement, building basis for continuous improvement l  Europe wide collaboration – common PQQs, contract provisions, monitoring, database
  148. 148. Electronics Watch - the eyes and ears on the ground EW Head Office EW Field Staff -  Full time, part time, or on a retainer basis EW Monitors and ‘Service Providers’ - Local labour groups, researchers, academics, civil society actors, including legal support centres, community centres catering to migrant workers, existing hotlines…
  149. 149. Monitoring and Reform - how Tools § EW Code of Conduct § Common contractual clauses § Conditions to be cascaded down to suppliers § Protocols, informed by best practices § Timelines § Factory-level improvement plans § Supporting workers to form self monitoring and improvement processes
  150. 150. What public sector organisations will ask for from ICT brands l  Transparency and disclosure l  Local CSO/monitor access to factories for worker training & monitoring l  Support for remediation in, e.g. worker representation, H&S, national law on hours, etc l  Ultimately buying practices reform – lead times and pricing, where they conflict with labour rights
  151. 151. Where we are in the project •  EC funding •  Advisory Group of 45 organisations •  Recruiting Trustees and staff •  Founding Members in 2014 •  Starting operations in 2015
  152. 152. Discussion points 1. Social audits: social audits have been seriously criticised in press, reports, academia. What plans do EICC members have to involve civil society, worker representation, instead or in addition? 2. Buying practice reform. CSR without reform in lead time and price requirements from brands. What plans do EICC members have to look at buying practices? What would you need to make this possible? 3. Monitoring and reforming further tiers. How do EICC members monitor further tiers, what requirements on transparency and worker conditions do you make on lower tier suppliers?
  153. 153. Questions?     Jim Cranshaw info@electronicswatch.org electronicswatch.org
  154. 154. Photo courtesy of Edwards, Ltd. Sponsor: Exhibitors:
  155. 155. EICC Human Rights Symposium Deborah Albers March 19, 2014
  156. 156. •  Dell - Internal Use - Confidential Sustainability at Dell: It is about creating long-term stakeholder value and opportunities by integrating economic, social and environmental responsibility into everything we do. 16 0
  157. 157. •  Dell - Internal Use - Confidential Executive Summary Customers, NGO’s and Government aligned Trends: •  Customers are increasingly focused on transparency in the supply chain •  NGO’s have increased visibility to key supply chain issues like working hours, working conditions and human rights •  Governments are engaging through mechanisms like UNGP Implications: •  Customers and Reputation are directly impacted Recommendation: •  Research: What are best in class companies doing? What do worker want? What do our customers want? Where do we need to be long-term? •  Reevaluate: What is the gap between now and long-term goals? •  Recreate: What are we going to do as a result of this shift? Result: 2020 Legacy of Good plan
  158. 158. •  Dell - Internal Use - Confidential Inquiries Addressed in 2013 50% increase in Supply Chain requests Y/Y Environmental Focus l  Environmental goals and progress l  Emissions l  Recycling l  Packaging l  Product Content General CSR Requests l  Policies & commitments l  Governance & mgt systems l  Supplier evaluations l  Certifications (eg ISO) and ecolabels (eg EPEAT)Supply Chain Focus l  Human rights l  Conflict minerals l  Supplier Practices •  52% •  18% •  30%
  159. 159. •  Dell - Internal Use - Confidential 16 3 Dell approach: Collaborate with Industry for Increased Influence & Long-Term Impact •  Shift focus from audits to capability building •  Address root causes, i.e. Management Systems •  Improve on-going monitoring •  Improve Worker management dialog •  Participation in multi-stakeholder working groups like IDH
  160. 160. Dell 2020 Legacy of good
  161. 161. •  Dell - Internal Use - Confidential Dell 2020 Legacy of Good Plan Our strategy for bringing sustainability and business objectives together to benefit customers while simultaneously leaving a legacy of social and environmental good. 16 5 Dell Legacy of Good 2020 plan: ell 2020 Legacy of Good PlanOur strategy for bringing sustainability and business objectives together to benefit customers while simultaneously leaving a legacy of social and environmental good. www.dell.com/2020 16 5
  162. 162. •  Dell - Internal Use - Confidential 16 6 1 Promise: Creating a Legacy of Good
  163. 163. •  Dell - Internal Use - Confidential By 2020, the good that will come from our technology will be 10x what it takes to create and use it. Building a legacy of good. Learn more at Dell.com/2020
  164. 164. •  Dell - Internal Use - Confidential 16 8 Confidential3/28/ Environment goals Reduce greenhouse gas emissions from our facility and logistics operations by 50% Reduce our water use in water-stressed regions by 20% Ensure 90% of waste generated in Dell- operated buildings is diverted from landfills Develop and maintain sustainability initiatives in 100% of Dell- operated buildings Demonstrate 100% transparency of key issues within our supply chain, working with suppliers to mitigate risks in those areas Ensure 100% of product packaging is sourced from sustainable materials Reduce the energy intensity of our product portfolio by 80% Use 50 million pounds of recycled-content plastic and other sustainable materials in our products Ensure 100% of Dell packaging is either recyclable or compostable Phase out environmentally sensitive materials as viable alternatives exist Recover 2 billion pounds of used electronics Identify and quantify the environmental benefits of Dell- developed solutions
  165. 165. •  Dell - Internal Use - Confidential Specific goal discussion: We expect our suppliers to perform at their best while adhering to our SER standards. Key issues ›  Environmental: carbon, water, waste, material usage ›  Social: worker health and safety, human rights/dignity ›  Shared suppliers facing “audit overload” – trying to harmonize around EICC Code of Conduct standards ›  Building requirements into future contracts Strategies ›  Publish 100% of aggregated audit results ›  Ensure 100% of Tier 1 suppliers publish a GRI-based sustainability report ›  Require all Tier 1 suppliers to produce a water risk mitigation plan Customer benefit ›  By increasing traceability and transparency throughout our supply chain, we make it easier for customers to feel confident they have the insight they need. 16 9 100% transparency of key issues within our supply chain
  166. 166. Photo courtesy of Edwards, Ltd. Sponsor: Exhibitors:
  167. 167. Going Beyond Tier 1: Driving Sustainability throughout the supply chain Copyright    ©  Sedex  2012.  All  Rights  Reserved.  No  part  of  this  document  may  be  reproduced  or  redistributed  in  any  form  without  wrinen  consent  from  Sedex.   171   Responsible Electronics Human Rights Symposium Brussels March 2014
  168. 168. v  Extensive global expertise in supply chain risk and database management v  Existing end-to-end process to report and manage on issues in global supply chains v  Largest collaborative supply chain risk management tool   Addressing Global Supply Chain Risk Sedex is an online tool for managing supply chain risk
  169. 169. 2013 •  Product origin •  Building safety •  Bribery •  Workers rights •  Conflict minerals
  170. 170. The scale of the challenge “At Diageo we talk about 70,000 suppliers and third parties, spread across over 100 countries of the world. When multiplied by the number of sub-suppliers in the supply chains, you get in to hundreds of thousands of people impacted by our global supply chain, so its vital to prioritise the key areas.” David Lawrence, Global Compliance & Ethics Programme Director, Diageo
  171. 171. Critical risks Extract  from  ‘Sedex  Transparency   Briefing’  November  2013   hnp://ow.ly/tOtGX    
  172. 172. Change? Compliance Regulation/legislation Consumer pressure CSR programs Investor pressure Traceability Ability to find stories Power of the media New technology
  173. 173. What needs to be done? •  Face direction of travel…..what's next? •  Collaboration (cross industry, global) •  Don’t re-invent the wheel •  Integrate into procurement •  Work with suppliers 100% full transparency of your supply chain will not happen over-night
  174. 174. What is Sedex? v  A not-for-profit membership organisation dedicated to driving improvements in ethical and responsible business practices in global supply chains v  A secure web-based platform for sharing and viewing information on four pillars: 1. Labour standards 2. Health and safety 3. Environment 4. Business ethics v  The largest collaborative platform for sharing ethical supply chain data v  Provides range of services that ensure your programmes are effective and efficient Customer  views  informaMon  for   mulMple  suppliers   Supplier  enters  informaMon  on  Sedex   and  shares  with  mulMple  customers  
  175. 175. A & AB Members includes…
  176. 176. Summary For more information on Sedex go to www.sedexglobal.com To learn more about Responsible Sourcing please also see our new ‘Insights’ page with films, webinars and reports www.sedexglobal.com/films Tom.Smith@sedexglobal.com +44 (0) 207 902 2327 @SedexTom
  177. 177. Photo courtesy of Edwards, Ltd. Sponsor: Exhibitors:
  178. 178. March 19, 2014 Going Beyond Tier 1: Driving Sustainability Throughout The Supply Chain Responsible Electronics Human Rights Symposium
  179. 179. Contents 1.  About BSR 2.  Driving Sustainability Throughout the Supply Chain: An Integrated Approach 3.  Supplier Engagement for Environmental Sustainability: EICC Supplier Carbon Performance Initiative 4.  Recommendations 183
  180. 180. 1. About BSR
  181. 181. 185 BSR’s Mission and Strategy Membership Network Consulting Services Cross-Sector CollaborationResearch •  Insights gained from our research and collaborative partnerships feed our consulting work. •  Our real-world experience working closely with member companies informs our research. •  Our cross-sector efforts build on our extensive network of members and stakeholders. Our mission: We work with business to create a just and sustainable world. Our strategy: We develop sustainable business strategies and solutions through consulting, research, and cross-sector collaboration with our global network of nearly 300 member companies.
  182. 182. BSR: A Leader in Sustainable Supply Chains 186 International Guidance and Standards Setting BSR brings deep expertise and experience in supply chain sustainability across industries and geographies. Following is an overview of many of the initiatives that we have been intrinsically involved in. Factory/Farm Assessment and Improvement Partner Industry Collaboration and Thought Leadership Strategy Implementation Partner Pharmaceutical Supply Chain Initiative Walmart Women in Factory Leadership Program Clean Cargo Working Group Supplier Carbon Performance Initiative
  183. 183. 2. Driving Sustainability Throughout the Supply Chain: An Integrated Approach
  184. 184. Sustainable Supply Chain Management 188 Accepted Best Practice Sustainable supply chain management is accepted practice among today’s leading companies and is expected by recognized global initiatives, financial indexes, and regulation. Supported internally by resources and policies Aligned to strategy, championed by board Measured and reported impacts Reporting •  GRI Reporting Guidelines •  Dow Jones Sustainability Index and other indexes Standards •  UN Global Compact •  UN Guiding Principles on Business & Human Rights Regulation •  OECD Guidelines for MNCs •  California Transparency in Supply Chain Act •  France’s Grenelle II External Expectations
  185. 185. An Integrated System 189 Proactive management of the supply chain, with processes and practices in place that enable purchasing decisions with a positive impact. Supplier leadership in sustainability, enabled through engagement and an understanding of sustainability from supplier and worker perspectives. Accountable collaboration with others who share your drive and ambition to accelerate change. Many of today’s challenges require a collective commitment. Sustainable supply chains depend on companies adopting and embedding an integrated system of internal, supplier-facing, and collaborative efforts across industries and geographies. Three pillars must work in tandem:
  186. 186. Fundamental elements of a good, holistic approach 190 Proactive Management Supplier Leadership Accountable Collaboration •  Integrated Strategy •  Robust Risk Management Tools •  Material issues mapped •  Sustainable procurement policy •  Senior management champions •  Sufficient resources allocated •  Supply chain mapped •  Clear Supplier sustainability expectations •  Well-designed supplier engagement program •  Regular communication with supply chain •  Appropriate investment in the supply chain •  Stakeholders mapped and engaged, globally and locally •  Collaborative initiatives with measurable impacts •  Honest external reporting In practice, companies with leading approaches to sustainability in their supply chains have these elements in place. BSR works with companies across industries to help them develop and improve this integrated system.
  187. 187. 1. Supply chain data gathering 2. Develop criteria for issue ranking 3. Internal & external interviews 4. Supply chain matrix Process and Scope: Analysis can be done by category, geography or product. Supply Chain Materiality 191 •  Gather data on direct and indirect supply chain •  Systems •  Audit results •  Desktop •  Identify key categories, geographies, suppliers •  Develop long list of material issues based on supply chain data •  Determine a set of criteria to rank issues •  Interview internal and external stakeholders, focusing on: •  Criteria ranking •  Expert knowledge: Category, geography, suppliers •  Identify priority issues for impact •  SC competency gaps identified Focus on what is important •  This process enables a company to move beyond broad-based supply chain sustainability risk assessment towards impact •  Identify the most material issues for specific supply chains •  Engage with stakeholders on where improvements can be made •  Invest and build more robust and transparent supply chains
  188. 188. 3. EICC Supplier Carbon Performance Initiative
  189. 189. Supplier Carbon Performance Initiative 193 Increase understanding Increase shared understanding about the most efficient investments to drive carbon reductions in the ICT supply chain. Improve collaboration Make collaboration among EICC companies and suppliers to reduce carbon easier and more effective. Reduce carbon Reduce climate impacts in the ICT supply chain through collaborative action. The purpose of EICC’s Supplier Carbon Performance Initiative is to make meaningful positive changes towards climate sustainability in the electronics supply chain. Objectives:
  190. 190. Supplier Carbon Performance Initiative A more collaborative environment for companies and stakeholders to share ideas and invest in opportunities. Demonstrably reduced carbon throughout the ICT supply chain by driving energy management investments by EICC suppliers Economically-efficient investment in climate opportunities 194 Impacts:
  191. 191. Supplier Carbon Performance Initiative 195 Project Phases:
  192. 192. 4. Recommendations
  193. 193. Recommendations 1.  Conduct a supply chain materiality exercise by key market to identify the most material issues in the full supply chain 2.  Implement an integrated system of internal, supplier-facing and collaborative efforts across industries and geographies
  194. 194. Thank you. Alice Valvodova ICT Manager BSR Email: avalvodova@bsr.org
  195. 195. Photo courtesy of Edwards, Ltd. Sponsor: Exhibitors:
  196. 196. UL and the UL logo are trademarks of UL LLC © 2014 Responsible Electronics: Human Rights Symposium Fire Safety and Social auditing March 19, 2014 Responsible Sourcing A SOLUTIONS PROVIDER TO SOCIAL COMPLIANCE CHALLENGES
  197. 197. Disclaimer goes here Since the Chicago World s Fair we have been on the leading edge of safety science 201
  198. 198. 4 Fire Safety Key Words Containment Detection Suppression Egress 202
  199. 199. Health & Safety - A continuum 1. Code of Conduct 2. Risk Mapping 3. Audit 4. Remediation 5. Capacity Building 6. Measurement and Evaluation 203
  200. 200. Health & Safety - A continuum 1. Code of conduct 2. Risk mapping 3. Audit 4. Remediation 5. Capacity Building 6. Measurement and evaluation 204
  201. 201. Example Question “All fire extinguishers are properly installed” “Fire extinguishers installed at min. ! 1.10m, to max. 1.30m” 205
  202. 202. Example Question “All fire extinguishers are properly " installed” “Fire extinguishers installed at min. ! 1.10m, to max. 1.30m” 206
  203. 203. Example Question “All fire extinguishers are properly " installed” “Fire extinguishers installed at min. ! 1.10m, to max. 1.30m” 207
  204. 204. 208
  205. 205. THANK YOU.
  206. 206. Photo courtesy of Edwards, Ltd. Sponsor: Exhibitors:
  207. 207. “Insert” then choose “Picture” – select your picture. Right click your picture and “Send to back”. The world’s leading sustainability consultancy EHS Future Trends EICC Conference Brussels, March 2014 The world’s leading sustainability consultancy
  208. 208. The world’s leading sustainability consultancy Trends q Integral approach to EHS Management q  Safety Transformation q  Product Sustainability and Compliance q Assessment of Non-technical Risks to ensure business continuity q  Climate Change Adaptation q  Resource Management 212
  209. 209. The world’s leading sustainability consultancy Individual Expectation Collective Expectation Individual Experience Collective Experience Integral approach to EHS Management Culture Mindset & Values Behaviors & Decisions (IT)Systems, Processes, Technologies 213
  210. 210. The world’s leading sustainability consultancy Safety Transformation 214 ü  Leaders adopting safety ü  Recognizing hazards ü  Employee ownership ü  Changing culture
  211. 211. The world’s leading sustainability consultancy Product Sustainability 215 ü  REACH / SVHC (safety of downstream users !) ü  Carbon footprinting of products ü  Product labeling ü  Green chemistry
  212. 212. The world’s leading sustainability consultancy Risk Assessment 216 Climate Change Adaptation ü  Climate Risk Assessments ü  Climate Adaptation Plans Resource Management ü  Water Risk Assessments ü  Water Conservation Plans ü  Energy Efficiency
  213. 213. The world’s leading sustainability consultancy VAP Study - Specific requirements members are looking for Environmental Air emissions monitoring Wastewater discharge compliance Health and Safety Fire and Life Safety Fire Risk Management - Explosive flammable material - Electricity Risk - HAVC Systems Emergency Response 217
  214. 214. The world’s leading sustainability consultancy VAP Study - Auditor Skills and Qualifications 218 •  80% of the respondents rated VAP auditor skills and qualifications as average. Respondents did not feel auditor skills and qualifications were sufficient to fully assess EHS compliance. 0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0% No Response Poorly qualified Adequately qualified Well Qualified 6.7% 6.7% 80.0% 6.7% Do VAP auditors have the skills and qualifications to assess EHS compliance?
  215. 215. Photo courtesy of Edwards, Ltd. Sponsor: Exhibitors:
  216. 216. Intel Confidential — Do Not Forward Intel Environmental, Social, and Governance Judy Wente Supply Chain ESG Director
  217. 217. Our Vision “In the coming decade, Intel will create and extend computing technology to connect and enrich the life of every person on Earth.” 221
  218. 218. 222 Intel at a Glance 25+ years of positive net income 105,000 employees 185 sites in 63 countries 4 million ft2 of manufacturing space Ireland Fab 24 Oregon D1C, D1D, D1X* Arizona Fab 12* ADC New Mexico Fab 11X Massachusetts Fab 17 Costa Rica Chengdu Vietnam Penang Kulim Dalian Fab 68 Israel Fab 28 Manufacturing Sites Worldwide Wafer Factory Assembly Test/Major Warehouse Distribution Amsterdam
  219. 219. 223 Products Electricity Metals Products Water Intel’s ESG Environmental Social Governance Responsibility
  220. 220. ESG = Value through Indirect Value to Customers, Supply Chain and Intel 224
  221. 221. Intel Integrated Value Framework 225 Supply Chain Impact RISK MANAGEMENT License to Operate and Governance OPERATIONS Cost Savings and Continuous Improvement BRAND Reputation and Goodwill REVENUE Growth and Innovation Key Services Areas: §  Anti-Corruption §  Contingent WF §  Forced Labor §  Safety Reduce, Reuse, Recycle Examples: § CPLG packaging & energy reductions § Hotel water programs Examples: § Gov’t procurement requirements § Business Awarded § User Experience §  Keep our promise §  Right to do Business
  222. 222. 226 Maturity Level: Understanding TRANSPARENCY Competitive Advantage: Lagging INSTINCTUALCOMPLIANCE VALUEAWARENESS ESG = Creating Indirect Supply Chain CSR Value
  223. 223. 227 Maturity Level: Acceptance TRANSPARENCY Competitive Advantage: Following INSTINCTUALAWARENESS VALUECOMPLIANCE ESG = Value Value to Customers, Supply Chain, and Intel
  224. 224. 228 Maturity Level: Commitment TRANSPARENCY Competitive Advantage: Following INSTINCTUALAWARENESS COMPLIANCE VALU E ESG = Value Value to Customers, Supply Chain, and Intel
  225. 225. 229 Maturity Level: Behavior TRANSPARENCY Competitive Advantage: Leading AWARENESS COMPLIANCE VALUE INSTINCTUAL ESG = Value Value to Customers, Supply Chain, and Intel
  226. 226. What We’ve Accomplished So Far: Intel’s Indirect ESG Evolution 230
  227. 227. What We’ve Accomplished So Far: Intel’s Indirect SC ESG Evolution 231 Ahead of the Curve •  Target by commodity areas of concern •  Types of ESG risk Piloted Audit ToolAssess Risk Approach •  Exclude all mfg.- dorm questions •  Top 40 SAQ
  228. 228. 232 Capability Building for the Future Adaptation and Assimilation •  Target audits: internal/external site management •  Root cause analysis and corrective actions – continuous improvement •  Pareto based on site CW population/ commodity •  Build knowledge: Ethics, Human Resource Management Systems, Safety, Working Hours •  Increase focus on site management for site support •  Prioritize by Geo – Geo manufacturing sites Where are we Focusing: Intel’s Indirect SC ESG Evolution
  229. 229. Gaps and Areas for Improvement 233 SAQ Ideal State Influence standards across Standardize Protocol •  Core set of risk types •  CW •  Size/service •  Prioritize with other mfg. audits in current process •  Efficiency gains removing Y/N in SAQ •  Combine documentation, proof of policy, training records and indicators of violations to date •  Ability to track/report both direct/indirect SAQ/Audits together •  Align code to Labor laws across geos •  Lock arms across industries/ geos for commonalties What opportunities exist : Intel’s Indirect SC ESG Evolution
  230. 230. 234 The above statements and any others in this document that refer to plans and expectations for the first quarter, the year and the future are forward-looking statements that involve a number of risks and uncertainties. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “may,” “will,” “should” and their variations identify forward- looking statements. Statements that refer to or are based on projections, uncertain events or assumptions also identify forward-looking statements. Many factors could affect Intel’s actual results, and variances from Intel’s current expectations regarding such factors could cause actual results to differ materially from those expressed in these forward-looking statements. Intel presently considers the following to be the important factors that could cause actual results to differ materially from the company’s expectations. Demand could be different from Intel's expectations due to factors including changes in business and economic conditions, including supply constraints and other disruptions affecting customers; customer acceptance of Intel’s and competitors’ products; changes in customer order patterns including order cancellations; and changes in the level of inventory at customers. Uncertainty in global economic and financial conditions poses a risk that consumers and businesses may defer purchases in response to negative financial events, which could negatively affect product demand and other related matters. Intel operates in intensely competitive industries that are characterized by a high percentage of costs that are fixed or difficult to reduce in the short term and product demand that is highly variable and difficult to forecast. Revenue and the gross margin percentage are affected by the timing of Intel product introductions and the demand for and market acceptance of Intel's products; actions taken by Intel's competitors, including product offerings and introductions, marketing programs and pricing pressures and Intel’s response to such actions; and Intel’s ability to respond quickly to technological developments and to incorporate new features into its products. Intel is in the process of transitioning to its next generation of products on 22nm process technology, and there could be execution and timing issues associated with these changes, including products defects and errata and lower than anticipated manufacturing yields. The gross margin percentage could vary significantly from expectations based on capacity utilization; variations in inventory valuation, including variations related to the timing of qualifying products for sale; changes in revenue levels; product mix and pricing; the timing and execution of the manufacturing ramp and associated costs; start-up costs; excess or obsolete inventory; changes in unit costs; defects or disruptions in the supply of materials or resources; product manufacturing quality/yields; and impairments of long-lived assets, including manufacturing, assembly/test and intangible assets. The majority of Intel’s non-marketable equity investment portfolio balance is concentrated in companies in the flash memory market segment, and declines in this market segment or changes in management’s plans with respect to Intel’s investments in this market segment could result in significant impairment charges, impacting restructuring charges as well as gains/losses on equity investments and interest and other. Intel's results could be affected by adverse economic, social, political and physical/infrastructure conditions in countries where Intel, its customers or its suppliers operate, including military conflict and other security risks, natural disasters, infrastructure disruptions, health concerns and fluctuations in currency exchange rates. Expenses, particularly certain marketing and compensation expenses, as well as restructuring and asset impairment charges, vary depending on the level of demand for Intel's products and the level of revenue and profits. Intel’s results could be affected by the timing of closing of acquisitions and divestitures. Intel's results could be affected by adverse effects associated with product defects and errata (deviations from published specifications), and by litigation or regulatory matters involving intellectual property, stockholder, consumer, antitrust and other issues, such as the litigation and regulatory matters described in Intel's SEC reports. An unfavorable ruling could include monetary damages or an injunction prohibiting us from manufacturing or selling one or more products, precluding particular business practices, impacting Intel’s ability to design its products, or requiring other remedies such as compulsory licensing of intellectual property. A detailed discussion of these and other factors that could affect Intel’s results is included in Intel’s SEC filings, including the annual report on Form 10-K for the fiscal year ended December 31, 2013. Risk Factors
  231. 231. Intel Confidential — Do Not Forward
  232. 232. Photo courtesy of Edwards, Ltd. Sponsor: Exhibitors:
  233. 233. COPYRIGHT © 2013 ALCATEL-LUCENT. ALL RIGHTS RESERVED. Pierre-Louis Frouein March 2014 ALCATEL-LUCENT INDIRECT SUPPLIERS SUSTAINABILITY MANAGEMENT
  234. 234. 239 COPYRIGHT © 2013 ALCATEL-LUCENT. ALL RIGHTS RESERVED. REQUIRE sustainability commitments ASSESS Supplier sustainability practices IMPROVE sustainability performance Contractual requirements based on our supplier code of conduct (EICC) and Environment, Health and Safety clauses Product or service-specific sustainability requirements integrated into specifications, requests for purchase… sustainability integrated as an element of supplier risk analysis and as a selection criteria Assess supplier sustainability management systems Audit sustainability practices to ensure they correspond to sayings Minimum level of expectation of assessed suppliers Require Improvement plans further to unsatisfactory sustainability ratings and audits Support and communicate through workshops and exchanges ALCATEL-LUCENT SUSTAINABLE PURCHASING APPROACH FOR ALL SUPPLIERS
  235. 235. 240 COPYRIGHT © 2013 ALCATEL-LUCENT. ALL RIGHTS RESERVED. Code of conduct (company level) Commodity-specific requirements OUR REQUIREMENTS EICC code of conduct Energy Star
  236. 236. 241 COPYRIGHT © 2013 ALCATEL-LUCENT. ALL RIGHTS RESERVED. INDIRECT SUPPLIERS RISK IDENTIFICATION Activity Relationship Environment Labor, health & safety Ethics Spend Level of Influence Visibility
  237. 237. 242 COPYRIGHT © 2013 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ONLINE ASSESSMENT METHODOLOGY: ECOVADIS PROCESS Analysis EcoVadis  analyzes    your   answers  and  audits  your   documents     Results Access  to  results  on  web   plaporm  in  the  form  of  a   Scorecard   Data collection Answer    CSR  quesMons  and   upload  required  documents   ! Online process customized to companies size, industry sector and countries of operation Platform Registration Register directly online ! Registration on the Monitoring platform is necessary to be assessed + ! Performed by Sustainable Development experts ! Access & share results online POLICIES 25% • Mission Statement • Endorsement of CSR initiatives ACTIONS 35% • Measure/Actions • Implementation coverage • Certificates/Labels RESULTS 40% • Reporting /KPI’s • 360°
  238. 238. 243 COPYRIGHT © 2013 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ASSESSMENT METHODOLOGY: CATEGORY-SPECIFIC ANALYSIS A specific evaluation model is generated according to the supplier: (1) INDUSTRY SECTOR: >100 predefined sectors available (2) SIZE: 3 predefined sizes (3) COUNTRY OF OPERATIONS: activation of issues according to country Tailored questionnaire and evaluation criteria
  239. 239. 244 COPYRIGHT © 2013 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ASSESSMENT METHODOLOGY CRITERIA Energy  consumpMon  &  GHG  (CO2)   Water       Biodiversity     Local  PolluMons     Materials,  Chemicals,  Waste       Product  Use     Product  End-­‐of-­‐Life   Customers  Health  &  Safety   Sustainable  ConsumpMon   Employees  Health  &  Safety   Working  CondiMons     Social  Dialog   Career  Management  &  Training         Child  &  Forced  Labor   DiscriminaMon       Fundamental  Human  Rights   CorrupMon  &  Bribery     AnMcompeMMve  pracMces   Responsible  MarkeMng     IV.  SUPPLY  CHAIN  Suppliers  Environmental  performance   Suppliers    Social  pracMces   I. ENVIRONMENT III. ETHICSII. SOCIAL Only criteria which are relevant to the supplier sector specific CSR challenges are taken into account
  240. 240. 245 COPYRIGHT © 2013 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ECOVADIS ASSESSMENT OUTCOME
  241. 241. 246 COPYRIGHT © 2013 ALCATEL-LUCENT. ALL RIGHTS RESERVED. " Dialogue" Stakeholder Involvement" Workshops" Seminars" Good practices examples" Trainings" IMPROVE: TOOLS TO SUPPORT SUPPLIER SUSTAINABILITY DEVELOPMENT Recommend weaknesses to address " Improvement Plans"
  242. 242. 247 COPYRIGHT © 2013 ALCATEL-LUCENT. ALL RIGHTS RESERVED. CONTACT INFORMATION ALCATEL-LUCENT SUSTAINABLE PURCHASING INTERNET PAGE: HTTP://WWW.ALCATEL-LUCENT.COM/CSR/HTM/EN/RESPONSIBLEPURCHASING.HTML CONTACT: PIERRE_LOUIS.FROUEIN@ALCATEL-LUCENT.COM
  243. 243. Photo courtesy of Edwards, Ltd. Sponsor: Exhibitors:
  244. 244. CSR/Third Party Risk Perspectives from a global real estate firm Responsible Electronics / EICC March 2014
  245. 245. Diverse services and locations deliver investment grade ratings: Moody’s: Baa2 (stable outlook) S&P: BBB- (stable outlook) 251 Who is JLL? A STRONG FOUNDATION FOR PARTNERSHIP 2013 revenue $4.0B S.F. under management 2.6B Employees 48,000+ Corporate offices 200+ LEED APs 1,250+ Six Sigma Green or Black Belts 220+ Americas •  8 countries •  86 owned offices EMEA •  32 countries •  76 owned offices Asia Pacific •  14 countries •  62 owned offices SUPPORTING THE GLOBAL REAL ESTATE LIFE CYCLE 500 Strategic Consultants Balancing long-term strategy with practical execution 3,670 Transaction Specialists Best portfolio results through local market expertise and action 460 Lease Administrators Portfolio transparency eliminates business risk 2,500 Project Managers Fast, flexible and on-time delivery 32,830 Facility & Property Mgmt. Staff Safe, reliable, expert and productive work environments 2008 & 2007 100 Fastest Growing Companies 2008, 2009 Americas Most Admired Companies Platinum 400 Best Big Companies 2006, 2007 and 2008 (U.S.) 2013, 2012, 2011, 2010, 2009 Global outsourcing 100 list Only real estate firm listed six years running
  246. 246. What do we do? •  Agency Leasing •  Capital Markets •  Construction •  Corporate Finance and Net Lease •  Corporate Solutions •  Energy and Sustainability •  Facility Management •  Government Investor Services •  Investment Management •  Investment Sales •  Lease Administration •  Project and Development Services •  Property Management •  Public Institutions •  Real Estate Investment Banking •  Special Asset Services •  Tenant Representation •  Transaction Advisory Services 252 One-stop source for a world of real estate services
  247. 247. What industries do we serve? •  Associations and Not-for-profits •  Banking •  Call Centers •  Clean Tech •  Data Centers •  Government •  Healthcare •  Higher Education •  Hotels •  Industrial and Logistics •  Law Firms •  Life Sciences •  Multifamily •  Port, Airport and Global Infrastructure •  Retail •  Retail/e-commerce Distribution •  Self Storage •  Supply Chain and Logistics 253 Expertise across all assets and industries
  248. 248. How is JLL Connected to the EICC? 254
  249. 249. Non EICC clients also drive our thinking 255
  250. 250. A few thoughts on CSR/third party risk •  Third party risk now a top corporate ERM risk and a primary concern of CRE executives •  Third party risk can be perceived very differently (reputational, regulatory & performance risk comprise a “risk mix”) •  Optimization of a corresponding “risk management mix” is the holy grail - Insurance programs, operational excellence, contract management / procurement - Risk tiering / avoiding a one size fits all approach - Accept that no single tool does it all •  Must be able to demonstrate holistic program and policy set 256
  251. 251. With regard to real estate partners… •  When risk tiering suppliers à Start with core risk attributes (spend, location, criticality of service, number of sites serviced, type of sites serviced, etc.) •  Match risk tier with appropriate set of compliance/oversight services à Intense audits make sense in some cases; not all •  Don’t reinvent the wheel à Leverage existing industry certifications, credentials, benchmarks to complement or replace self-defined standards •  Elevate CSR/risk in the procurement function à Value is a function of price, quality, & CSR/risk 257
  252. 252. Thank You Seth Weinert Senior Vice President & Director of Professional Standards, JLL +1 312 228 2695 seth.weinert@am.jll.com
  253. 253. Photo courtesy of Edwards, Ltd. Sponsor: Exhibitors:
  254. 254. UN Global Compact‘s Approach to Business and Human Rights EICC Responsible Electronics: Human Rights Symposium March 20, 2014
  255. 255. THE UN GLOBAL COMPACT Overview Launched on 26 July 2000 in New York with roughly 40 businesses UN Convention Against Corruption Rooted in universally accepted conventions: Universal Declaration of Human Rights ILO Declaration Rio Declaration More than 8,000 businesses participants in 145 countries World’s largest voluntary initiative
  256. 256. 262 The Global Compact clarified The Global Compact is... …a voluntary initiative to promote and advance responsible business. …a universal value framework to help business get organized. …a global network of like-minded businesses and other stakeholders. …a platform for innovation. …a regulatory body. …a substitute for regulation at the national or international level. …a UN seal of approval or label The Global Compact is not...
  257. 257. UN Global Compact’s Ten Principles
  258. 258. Guiding Principles on Business and Human Rights •  Endorsed by the UN Human Rights Council in June 2011 •  Provides a global standard for preventing and addressing the adverse impacts of human rights linked to business activity •  Consists of three pillars –  State Duty to Protect Human Rights –  Corporate Responsibility to Respect Human Rights –  Access to Remedy
  259. 259. Relationship between the Global Compact’s human rights principles and the Guiding Principles Relationship to the Guiding Principles
  260. 260. The UN Global Compact’s approach to Business and Human Rights •  Raise awareness of what human rights are, why they are relevant for business, and how business can respect and support human rights within their own operations and their sphere of influence •  Develop, refine and disseminate practical tools and guidance to assist business in respecting and supporting human rights and developing the business case for human rights •  Promote the implementation and uptake of the Guiding Principles on Business and Human Rights •  Explore areas of specificity (geographical, issue and sectoral) to increase understanding by business about human rights and how to respect and support human rights •  Collaborate with the UN Office of the High Commissioner for Human Rights and other UN agencies to ensure coherence on business and human rights within the UN system
  261. 261. •  Good Practice Notes –  Identifies general approaches that have been recognized by a number of companies and stakeholders as being good for business and human rights •  Case Studies series: Embedding Human Rights in Business Practice –  Explores how companies implement human rights, the challenges that companies face in addressing human rights and how they are endeavoring to address these challenges. •  Human rights and Business Learning Tool –  5 modules to help managers in companies understand the importance and relevance of human rights. Practical Tools and Guidance
  262. 262. Business & Human Rights Dilemmas Forum •  Interactive multi- stakeholder platform •  25 Different Dilemmas •  Training tools •  Forum •  Case Studies
  263. 263. Anti-Corruption   Environment Labour Standards Human Rights SupplyChainSustainability ‘Management of environmental, social and economic impacts, and encouragement of good governance practices, throughout the lifecycle of goods and services.’ Supply Chain Sustainability
  264. 264. UN Global Compact Supply Chain Sustainability Advisory Group UN Global Compact Advisory Group on Supply Chain Sustainability
  265. 265. v Practical Guide for Continuous Improvement •  Features numerous good corporate practices and other initiatives •  2011: Developed SME Quick Guide: Supply Chain Sustainability – A Practical Guide for Continuous Improvement for Small and Medium Enterprises v Human Rights •  Webinar Series •  Good Practice Note “A Principled Approach to Prioritizing and Responding to Human Rights Risks Throughout the Supply Chain - in collaboration with HRWG” (under review) v Issue Specific Activities •  Practical Guide on Product Traceability – By April 2014 •  Stand Together Against Corruption –A Practical Guide – Launched September 2013 Supply Chain Sustainability Tools and Resources
  266. 266. Thank you! Elena Bombis Legal & Policy Advisor Supply Chain Sustainability bombis@unglobalcompact.org www.unglobalcompact.org
  267. 267. Photo courtesy of Edwards, Ltd. Sponsor: Exhibitors:
  268. 268. SHAPING THE CORPORATE FOOTPRINT ON CHILDREN’S RIGHTS UN Guiding Principles and Children’s Rights Eija Hietavuo, CSR Manager UNICEF ©  2012  Brian  Sokol/UNICEF
  269. 269. 3/28/14275 The aim of UNICEF’s CSR strategy is to promote the corporate responsibility to respect and support children’s rights in the workplace, marketplace and community in conjunction with the government duty to protect and safeguard children’s rights.   Vision Corporate Social Responsibility (CSR) within UNICEF refers to efforts towards positively changing business behaviour and practices as they affect children in collaboration with a range of stakeholders, including companies, government, civil society, children and young people. Definition
  270. 270. UN  Guiding  Principles  on   Business  and  Human  Rights   Children’s  Rights  and   Business  Principles   ConvenMon  on  the   Rights  of  the  Child   General  Comment  on   Children’s  Rights  and   Business   GOVERNMENT   BUSINESS   Framework for UNICEF CSR engagement
  271. 271. Implementing the UNGP with a child rights lens Workplace  impacts   Child  labour,  EducaMon,   Freedom  of  associaMon     Marketplace  impacts   Privacy,  InformaMon,     Non-­‐discriminaMon   Community  impacts   ParMcipaMon,  Standard  of  living,   ProtecMon  from  violence   Environmental  impacts   Survival  and  development,   Health,  Leisure  and  recreaMon   The  Children’s  Rights  and  Business  Principles  place  the  content  of   the  CRC  in  a  business  context  in  the  workplace,  marketplace,   community  and  environment  within  the  UNGP  implementaMon   framework.     Business  impacts  on  children  across  these  contexts  touch  on   many  different  rights.    For  example:        
  272. 272. Implementing the UNGP with a child rights lens Consultancies   Academia   SRI   ESG  research   CSR  index  vendors   50  pilot  companies   Business    plaporms   Industry   associaMons     Work  in  progress:   Children’s  rights  in  stakeholder  consultaMons   Children's  rights  in  remedies  
  273. 273. UNICEF CSR work with the ICT sector •  Mobile  Operators   •  ISPs   •  Online  service  providers   •  Hardware  manufacturer   •  Component  manufacturers   Child  protecMon  online/offline   Young  workers   ICT  –  access  to  social  services  
  274. 274. Implementing the UNGP with a child rights lens TRAVEL  company  –  UNGP  implementaMon   Dilemma:  Industry  leadership  in  sustainability  and  human  rights   •  Human  rights  materiality  analysis  as  basis     •  Young  workers,  workplace  issues,  child  labour  and  child  sexual   exploitaMon,  community  impact     •  Country    and  issue  risk  analysis   •  High  risk  country    level  human  rights  impact  assessment   •  AcMon  plan   •  Sphere  of  influence  and  severity  of  impact   •  Capacity  building,    The  Code     •  Addressing  root  causes  behind  issues/incidents   •  Policy  revision   •  ReporMng  and  communicaMon  -­‐  transparency   •  Remedies  to  follow  

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