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ASSE PDC 2011 CSR for the Safety Professional
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ASSE PDC 2011 CSR for the Safety Professional



Presentation deck from American Society of Safety Engineering 100th Anniversary conference.

Presentation deck from American Society of Safety Engineering 100th Anniversary conference.

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  • MH
  • MH
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  • MH
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  • MH – wrap up and transition: point being the integration of financial, environmental and governance (re: safety) SHE value is added … (MH to expand upon this point)
  • FF
  • Integrating sustainability deep into our governance structures and management accountability; Establishing incentives to reward sustainability performance through compensation plans; Incorporating stakeholder feedback into strategic planning and decision-making; Reporting strategies and results through our public disclosures; Building a diverse workforce and leveraging their ideas and innovation; Requiring operations and supply chains to systematically meet ESG performance goals; and Developing and implementing sustainable products and solutions that accelerate clean, profitable economic growth.
  • FF
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  • 2-5 discussion 7-10 min max
  • JB – Labor practices category: SHE is one element greatest opportunity in adding value is understanding risk assessment opportunities
  • JB – identify where SHE is involved: contribute to the inventory, reporting and accounting systems: opportunities come externally KTC example – battle succumbs to acceptance through proven initiative (card-to-card) engineers did card to card; EHS did risk assessment and contribution to work practice (safeguarding and human factors engineering) and efficiency; result: decrease in shipping costs, decrease in work steps, less frustration on clamshell; increase in safety, increase in EHS acceptance in the organization, and able to take credit in reporting (external acceptance)
  • JB – explain CDP and purpose: EHS inserting into the process for opportunity; otherwise, this ends up with PR / Marketing – Legal and CFO See if your company is participating; process is expanding into water usage and recycling including electronics
  • JB / FF – 1: Annual Reports – requirement for publically listed companies; however, CSR is resulting in annual report-like disclosure from all types of organizations: EHS plays a role in assisting the organization in capturing credit for CSR effort 2: Social Media – if not observing social media from a monitoring standpoint, here is an opportunity to listen in on the conversation (window): also presents opportunity to identify insertion points for EHS to be of value to the organization 3: Shareholder Communication – have to be prepared to disclose what you are doing in the CSR area: expected requirement; affects materiality 4: Investor Research Reports – EHS is becoming increasingly visible as the organization becomes more transparent; EHS is becoming a tool in investment strategy (JB Were / Goldman Sachs): financial and EHS performance go hand in hand and have a stake in organizatonal outcome
  • JB
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  • FF / JB – interaction with key groups to show value in ESG of the organization: if we don’t have you in the center, someone else is going to be there
  • Case Study   You are the SH&E manager at XYZ company which is celebrating their recent marketing win – a contract to supply your product to Wal-Mart.  This is a big win as the team has been wooing Wal-Mart for over a year with multiple visits to Bentonville, AR by the executive team.   The conversations happening during this sales process have been focused on how much new volume and revenue are projected from this contract.  No one on the sales team has put much focus on the operating conditions of working with Wal-Mart. As the SH&E manager you have not been in the sales process except for putting new dates and updating the Business Continuity Plan and safety programs especially around hazardous material use and handling.   You’ve not been to Bentonville or have you had any contact with the Wal-Mart safety or sustainability team.  This will be happening soon once the celebration moves to so how will we work with this new customer. You have not in the past been asked to gather information on greenhouse gases or other metrics related to sustainability. Now, Walmart is asking your company to complete the sustainability index. Your company knows your value to the organization, but isn’t sure SH&E is the appropriate point: this is your opportunity to step up.
  • Please break into groups of about five, but no more than 7. Pick a category on the sustainability index; Address these questions on the slide.
  • FF
  • FF
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  • FF / JB

ASSE PDC 2011 CSR for the Safety Professional ASSE PDC 2011 CSR for the Safety Professional Presentation Transcript

  • Session 504 © JB, FF, MH CSR 2011 An Interactive Session
    • James Boretti, CSP
      • President
      • 27 Years
    • Fay Feeney, ARM, CSP
      • Principal
      • Vice-Chair, ASSE Foundation
    • Mark D. Hansen, PE, CSP, CPEA, CPE
      • Director of Portfolio Environmental & Risk Management
    © JB, FF, MH CSR 2011
    • Learn the elements of CSR that SH&E can manage
      • For your organization
    • Be able to show your value as a contributor as the “new” economy materializes
    • Walk away with confidence that you can add value
      • From application
    © JB, FF, MH CSR 2011
    • … There are subtle differences between …
    • … Corporate Social Responsibility …
    • … Sustainability and …
    • … Environmental, Social and Governance …
    © JB, FF, MH CSR 2011
    • … is also called corporate conscience , corporate citizenship , social performance , or sustainable responsible business
    • form of corporate self-regulation
    • integrated into business model.
    • Aligns with “License to Operate”
    © JB, FF, MH CSR 2011
  • © JB, FF, MH CSR 2011
    • Public Transparency
    • Hiring practices
    • Helping communities
    • Do No Harm
    • Climate Change
    • Legal
    • Ethics
    • Environmental, Safety & Health
    • Human Resources
    • Ethics
    • Risk Management
    • Brand Differentiation
    • License to Operate
    Social Accounting, Auditing, and Reporting Governance Compliance
    • Capacity to endure
    • In ecology , describes how biological systems
    • remain diverse and productive over time.
    • For humans
      • Potential for long-term maintenance of well being
        • Environmental, economic, and social dimensions.
    • Interfaces with economics
      • Social and ecological consequences of economic activity.
      • Involves ecological economics where social, cultural, health-related and monetary/financial aspects are integrated.
    © JB, FF, MH CSR 2011
  • © JB, FF, MH CSR 2011
    • New regulations
    • Reputation damage
    • Continued access to natural resources
    • Climate change
    • Ability to hire & retain talent
    • Labor related controversies
    • Product related complaints
    • Human rights
    • Reputation damage & legal costs
    • Shareholder controversies
    • Supply Chain risk
    • Customer loyalty
  • © JB, FF, MH CSR 2011 Human Resources VBM EHS FIRST Finance Operations Continuous Improvement Government Relations Marketing Procurement R&D … … Climate Change Human Rights Economic Diversification Water Corruption Governance Biodiversity Outsourcing Low Cost Country Supply … Evolution from good to best practice … Necessary for business continuity … Requirements for embedding sustainability …
    • Developing People
    • Recruitment and retention strategies
    • Leadership and individual development
    • Training
    • Competencies based on sustainability
    • Annual objectives
    • Compensation
    • Evolving Business Systems & Valuation Approach
    • 5 year plan,
    • Annual plan
    • Capital Allocation
    • Quarterly Business Performance Review
    • Intangible value determined and included in business decisions
    • Enhancing Stakeholder Capabilities
    • Company-wide guidance
    • Indigenous Policy
    • Human Rights aspects integrated in current practices
    “… it’s not about managing issues. Rather it’s about being equipped to succeed in a more complex setting …” Developing People Evolving Business Systems Enhancing Stakeholder Capabilities
    • … is a non-profit, American network of investors, environmental organizations and other public interest groups working with companies and investors to address sustainability challenges
    • Founded in 1989, its core mission is integrating sustainability into capital markets.
    • Immense investment opportunities from low carbon technologies — a potential $5 trillion global market by 2030.
    • * Mercer http://ceres.groundwire.org/incr
    © JB, FF, MH CSR 2011
    • Integrating deep into our governance and accountability
    • Establishing incentives to reward sustainability performance
    • Incorporating stakeholder feedback into strategic planning and decision-making
    • Reporting strategies and results through our public disclosures Building a diverse workforce and leveraging their innovation
    • Requiring operations / supply chains to meet ESG goals
    • Developing and implementing sustainable products / solutions that accelerate clean, profitable economic growth
    © JB, FF, MH CSR 2011
    • Collaborate with:
      • other businesses, investors and stakeholder groups, including policymakers, civil society organizations and consumers
    • … to move together towards a sustainable economy
    • Leverage our position as industry leaders and key market influencers to accelerate adoption of sustainability approaches and solutions across networks, including :
      • employees, customers, supply chains, media and marketing
    • Make specific commitments to integrate sustainability into strategies and actions
    © JB, FF, MH CSR 2011 © JB, FF, MH CSR 2011
    • Global Reporting Initiative
      • Environmental Performance
      • Social Performance
      • Governance Performance
    • Foundational framework for all reporting mechanisms
    © JB, FF, MH CSR 2011
    • Establishing basic sustainability disclosure requirements brings clear benefits
      • Business, investors and society at large:
    • Measuring to identify opportunities
      • Improve operations and avoid risks to the long-term value of the organization
    • Manage impacts helps preserve and increase value
    • Investors and analysts gain vital insight into performance, and optimal investment potential
    • Transparency increases trust
      • Stakeholders and civil society can respond to comparable and standardized information
    • Mitigate negative impacts
    © JB, FF, MH CSR 2011
    • G3 Reporting
      • Reporting Principles and Guidance
        • Principles to define report content : materiality, stakeholder inclusiveness, sustainability context, and completeness.
        • Principles to define report quality : balance, comparability, accuracy, timeliness, reliability, and clarity.
        • Guidance on how to set the report boundary
      •   Standard Disclosures
        • Strategy and Profile
        • Management Approach
        • Performance Indicators
    © JB, FF, MH CSR 2011
    • California Public Employees' Retirement System is implementing ESG commitments into its investment strategies
      • Leverage companies as a stockholder
      • 2 dozen Fortune 500 companies and growing
      • Investing $1.5B in private equity clean technology
    • Collaborating with CalSTRS (the state Teacher’s version)
    © JB, FF, MH CSR 2011 © JB, FF, MH CSR 2011
    • Turn to the person next to you and each take a minute to share:
      • What company do you think ranks highest in delivering value to either:
        • Your organization’s Business to Consumer (B2C)
        • Your organization’s Business to Business (B2B)
      • Why?
    © JB, FF, MH CSR 2011
    • GRI & Safety Metrics
    © JB, FF, MH CSR 2011
    • GHG Reporting
      • Four Goals of GHG Reporting
        • GHG Management
        • Public Reporting
        • GHG Markets
        • Regulatory / Government Reporting
      • Ensuring benefits outweigh costs by two objectives:
        • Time and cost GHG accounting and reporting systems, and,
        • GHG inventory compatible with requirements and standards which may be developed internationally in the future
    © JB, FF, MH CSR 2011
    • Carbon Disclosure Project (CDP)
      • Performance measures:
        • Risks and opportunities that climate change presents to the business
        • Emissions accounting (GHG Protocol)
        • Strategy to reduce emissions / minimize risk and capitalize on opportunity
        • Corporate governance regarding climate change
      • Supply Chain and Public Procurement also measured:
        • GHG emissions split by business category
        • Engagement with its suppliers
        • GHG emissions over the lifecycle of goods or services
    © JB, FF, MH CSR 2011
    • Stakeholder Reporting
      • Annual reports
      • Social media
      • Shareholder communication
        • Sarbanes-Oxley
        • Dodd-Frank
      • Investor research reports
    © JB, FF, MH CSR 2011
    • A fair return or equivalent in goods, services, or money for something exchanged
    • Monetary worth of something
      • i.e., market price
    • Relative worth, utility, or importance
      • i.e., had nothing of value to say
    • Numerical quantity assigned or determined by calculation or measurement
      • i.e., incidence rate
    • A principle or quality; intrinsically valuable or desirable
      • i.e., the value of safety
    © JB, FF, MH CSR 2011
    • Defined
      • Relationship between the consumer's expectations of quality to amount paid
      • Includes the service AND individual
    • Value to the organization means
      • What is the “return”
    © JB, FF, MH CSR 2011
    • Business and Strategy
      • Plans and reacts strategically
      • Transforms data / insights into practical solutions
      • Develop methods that integrate safety performance into business productivity
      • Aligns the group’s project plans with overall business strategy
      • Understands financial related terms and information
      • Evaluates proposed investments against their projected payoff
    © JB, FF, MH CSR 2011
    • Technical Expertise
      • Assess the probability and severity of losses and accidents that may result from hazards
      • Implement techniques and strategies to evaluate hazard control and program effectiveness
      • Provide advice in planning, design, development, fabrication, testing and packaging of products or services regarding safety requirements / principles
    © JB, FF, MH CSR 2011
  • © JB, FF, MH CSR 2011
    • SH&E Manager
      • Recent marketing win to supply Wal-Mart
      • Over a year
    • Conversations focused on sales process
      • New volume and revenue
      • No one focused on the operating conditions
    • You have not been in the sales process
      • No contact with Wal-Mart
      • Will be happening soon: gather information on greenhouse gases or other metrics related to sustainability
    © JB, FF, MH CSR 2011
    • What are you going to do next?
    • Who do you need to talk with?
    • What kind of information would you need to gather?
    © JB, FF, MH CSR 2011
  • ASSE SH&E & SHRM Human Resources CSR/Sustainability Network © JB, FF, MH CSR 2011
  • http://www.globalreporting.org/Home © JB, FF, MH CSR 2011
  • http://www.investor.jnj.com/governance/boardconduct.cfm © JB, FF, MH CSR 2011
    • Elements of CSR that SH&E can manage
    • “ New” economy materializing
    • Sustainability structure
    • Key Takeaway:
      • SH&E value opportunities within CSR structures and initiatives
    © JB, FF, MH CSR 2011